Materiality

The Group has identified five material issues from among a large number of social issues. In identifying these issues, we selected social issues believed to be of high importance in the environment surrounding the Group, and identified material issues from two viewpoints: Solving social issues through business development leveraging our strengths, and strengthening our management foundation to support sustainable growth. We set targets for resolving material issues, and align our activities accordingly.

Materiality Relevant SDGs	Major initiatives	Targets
Pursuing the challenge of zero fatal traffic accidents —Safety and security for everyone—	Provision of lamp systems which meet customer and society’s needs to everyone	■ADB1 ratio (percentage of automotive headlamps) FY2025: 18% FY2028: 27% ■Ratio of net sales from non-Japanese automotive manufacturers2 FY2028: 8%
Realizing Safe, healthy lives —Providing the value of light—	Provision of unique devices, modules, and apps with a focus on invisible light	■Ratio of net sales of invisible light products*3 FY2025: 15%
Creating new value in harmony with the environment	Initiatives on climate change	■CO₂ emissions FY2030: 50% reduction in our own business activities (compared to FY2019) FY2050: Achieve carbon neutrality
Promotion of environmental conservation activities	■Amount of waste, etc. generated FY2024: Reduce the amount of plastic waste generated and increase the recycling rate (compared to FY2019) ■Amount of water consumption (water risk) Number of high-risk production sites Zero sites
Individual welfare and growth	Improvement of employee engagement	■Engagement score FY2025: Improve by 30% compared to FY2023 level
	Human resources development	■Investment into education per person FY2025: Improve by 50% compared to FY2022 level
Initiatives on employees’ health and safety	■Health management assessment (deviation) FY2025: Deviation 60 ■Number of serious industrial accidents Zero cases
Promotion of diversity	■Ratio of female managers FY2026: 4.0%
Building a solid business foundation	Strengthening governance functions	■Effectiveness of the Board of Directors Conducted a survey to evaluate the effectiveness of the Board of Directors once a year ■Allow the Governance Committee to appropriately exert its function
Thorough compliance	■Percentage of employees who have taken compliance education, percentage of employees who have signed the compliance declaration Compliance education, declaration 100% ■Appropriate and continued operation of whistleblowing system on a global scale
Responding to various risks	■Preventive action, post-incident measures and recurrence preventive measures for risks surrounding the entire Group ■Enhance information security on a global scale

Materiality
Relevant SDGs

Major initiatives

Targets

Pursuing the challenge of zero fatal traffic accidents
—Safety and security for everyone—

Provision of lamp systems which meet customer and society’s needs to everyone

■ADB*1 ratio (percentage of automotive headlamps)

FY2025: 18%
FY2028: 27%

■Ratio of net sales from non-Japanese automotive manufacturers*2

FY2028: 8%

Realizing Safe, healthy lives
—Providing the value of light—

Provision of unique devices, modules, and apps with a focus on invisible light

■Ratio of net sales of invisible light products*3

FY2025: 15%

Creating new value in harmony with the environment

Initiatives on climate change

■CO₂ emissions

FY2030: 50% reduction in our own business activities (compared to FY2019)
FY2050: Achieve carbon neutrality

Promotion of environmental conservation activities

■Amount of waste, etc. generated

FY2024: Reduce the amount of plastic waste generated and increase the recycling rate (compared to FY2019)

■Amount of water consumption (water risk)

Number of high-risk production sites Zero sites

Individual welfare and growth

Improvement of employee engagement

■Engagement score

FY2025: Improve by 30% compared to FY2023 level

Human resources development

■Investment into education per person

FY2025: Improve by 50% compared to FY2022 level

Initiatives on employees’ health and safety

■Health management assessment (deviation)

FY2025: Deviation 60

■Number of serious industrial accidents

Zero cases

Promotion of diversity

■Ratio of female managers

FY2026: 4.0%

Building a solid business foundation

Strengthening governance functions

■Effectiveness of the Board of Directors

Conducted a survey to evaluate the effectiveness of the Board of Directors once a year

■Allow the Governance Committee to appropriately exert its function

Thorough compliance

■Percentage of employees who have taken compliance education, percentage of employees who have signed the compliance declaration

Compliance education, declaration 100%

■Appropriate and continued operation of whistleblowing system on a global scale

Responding to various risks

■Preventive action, post-incident measures and recurrence preventive measures for risks surrounding the entire Group

■Enhance information security on a global scale

Adaptive Driving Beam
Ratio of net sales to the total net sales of Automotive Equipment Business
Ratio of net sales to the total net sales to external customers of Electronic Components Business and Applied Electronic Products Business (Includes net sales of accessories and devices which were reclassified as part of our Automotive Equipment Business in FY2023)

To Sustainability at Stanley Electric

Product List

Materiality