Materiality and 2030 Targets

The TS TECH Group’s Materiality

The TS TECH Group has established sustainability targets for 2030 with indices indicating the vision the Group aims to achieve for itself by that year. We will address key material issues (materiality) in a priority manner to help build a sustainable world. Under our 15th Medium-Term Management Plan (fiscal 2024–2026), we will execute our management policy of “realizing ESG management,” moving forward boldly to achieve our targets.

Policy for Identifying Materiality

  • Issues that are material to the vision statement under the TS TECH Philosophy: “A company dedicated to realizing people’s potential” and “A company sincerely appreciated by all”
  • Issues that are highly material to the United Nations Sustainable Development Goals (SDGs)
  • Issues that are material to contribute to a sustainable world

Procedure for Identifying Material issues

Based on international standards and guidelines such as the GRI Standards and the core subjects of ISO 26000, we studied identification methods.
Identification and organization of issues
We identified the risks and opportunities based on the Group’s business environment and ultimately identified and organized the relevant issues.
Prioritizing of issues
Issues were evaluated and prioritized in terms of their importance to stakeholders and their importance to the TS TECH Group.
Consultations with outside experts
We exchanged opinions with outside experts on the issues identified to verify their scope and validity.
Selection of materiality
Out of 24 items, eight material issues were selected to be addressed by the TS TECH Group.
Approval by management
Following approval by the Executive Committee, the eight material issues were submitted to the Board of Directors for discussion and approved.

Identified materiality

With the goal of achieving ESG management, we organized the identified material issues into three categories: society, environment, and corporate foundation.

*chart can be scrolled left and right.

Category Related SDGs Material issues Vision
Providing attractive, innovative new products and technologies that exceed society's expectations
  • We will create new value that exceeds the expectations of customers and help to build safe, secure, and prosperous societies by providing attractive, high-quality automobile interiors.
Reducing impact by practicing environmentally friendly manufacturing to build a sustainable world
  • Aiming for a decarbonized society, we will work to contribute to reducing our environmental impact by pursuing energy-savings and effective use of resources, starting with product design and continuing throughout every stage of the product life cycle.
  • We will strive to ensure that all of our employees have a high level of environmental awareness, while working to protect the environment and conserve ecosystems based on the concept of "giving greenery back to the earth."
Respecting diversity and developing structures to maximize individual abilities
  • We will respect the human rights of all stakeholders and offer rewarding working environments in which each and every employee makes the most of their diverse talents.
  • We will engage in diversity-positive, highly transparent management to fulfill our corporate social responsibility (CSR), achieve sustainable business growth, and enhance corporate value.

KPIs and 2030 Targets

We have set KPIs for specific material issues and established specific targets for 2030 for each indicator. To achieve these targets, we will aggressively pursue measures and manage progress under the sustainability promotion system that was updated in fiscal 2022.

*chart can be scrolled left and right.

Category Materiality Materiality KPIs 14th Medium-Term Management Plan results 15th Medium-Term Management Plan targets 2030 targets Main measures
Society Developing attractive, innovative technologies Innovative technology development expenses as a percentage of R&D expenses vs. FY2021
vs. FY2021
vs. FY2021
  • Proactively investing in original technologies, including biosensing and environmental technologies
Improving product quality Seat supplier
IQS rating*1
8.8P 7.0P 2.0P
(stable high levels)
  • Enhancing product quality with higher-precision verification tools
  • Constructing a framework enabling ongoing cultivation of quality human resources worldwide
Environment Responding to climate change CO emissions reduction rate*2 vs. FY2020
vs. FY2020
vs. FY2020
  • Improving development and manufacturing efficiency
  • Developing and promoting products that use plant-based raw materials, etc.
  • Analyzing and responding to risks and opportunities based on the recommendations of the TCFD
  • Conducting energy management based on ISO 14001/ ISO 50001
  • Installing energy-saving and renewable-energy equipment
Recycling and effectively using resources Waste reduction rate*3 vs. FY2020
vs. FY2020
vs. FY2020
Water intake reduction rate and environmental impact from wastewater*4 vs. FY2020
vs. FY2020
vs. FY2020 “0”
environmental impact
Harmoniously co-existing with nature Establishment of the TS TECH Fund
(matching gift program)
Program survey
Study of plans
Establishing a TS TECH Group donation program Establishing a TS TECH Group donation program
  • Researching and establishing a matching gift program
Respecting human rights Engagement rating*5 C BB AAA
  • Analyzing survey findings individually by department and identifying priority issues
  • Enhancing the evaluation system and communication opportunities
Supplier Sustainability Guidelines compliance rate*6 97%
(Subject: 126 domestic suppliers)
(Subject: Domestic and international suppliers)
(Subject: Domestic and international suppliers)
  • Preparing to expand surveys to verify circumstances of compliance to locations outside Japan
Reforming work styles to make the most of diversity Percentage of management positions held by diverse human resources*7 32.5% 33.3% 35%
  • Supporting career development with rank-specific training
  • Helping personnel balance their work and personal lives
    (childbirth, childcare, nursing care)
Strengthening governance Corporate Governance Code compliance rate 100% 100% 100%
  • Pursuing ongoing efforts to prevent corruption
  • Rating awarded in the Initial Quality Study (IQS) conducted by J.D. Power Japan, Inc. The study looks at new car buyers and their experiences with any problems and calculates the number of problems indicated per 100 vehicles. The lower the number, the higher the quality.
  • CO₂ emissions reduction rate (Scope 1 and 2) resulting from the Group’s business activities
  • Rate of reduction of waste (excluding residue, sludge, etc.) resulting from the Group’s manufacturing activities
  • Reduction rate in water intake (amount used) at the Group’s production facilities and environmental impact of wastewater resulting from manufacturing activities
  • The engagement targets look at the company’s employees using Link and Motivation Inc.’s Motivation Cloud. The target “AAA” rating is the highest of the 11 ratings.
  • Rate of compliance with the Supplier Sustainability Guidelines among the Group’s suppliers (including overseas suppliers)
  • Percentage of women, mid-career hires, non-Japanese citizens, older employees, and persons with disabilities in management positions