Materialities and the Sustainability Action Plan

The Mid-Term Management Plan is an initiative to achieve our Grand Design with a goal of 2027 and to continue sustainable growth thereafter. In order to contribute to a sustainable future through our business, we reviewed our materiality in the third Mid-Term Management Plan (MTP3), which began in fiscal 2024, and made the four strategies themselves materiality for the entire Advantest Group.

One of the materialities is "Enhance Sustainability". To promote this, we have set up the Sustainability Policy and formulated the Sustainability Action Plan 2024-2026 as the overall picture of our med-term sustainability initiatives and their respective medium-term targets from 2024 onwards in line with this policy.

In developing a new medium-term sustainability action plan, we have completely reorganised the themes to be addressed to be linked to the Grand Design and the third Med-Term Management Plan (MTP3), from the perspective of increasing the value provided to stakeholders, and have set new medium-term targets for each of these themes. New medium-term targets have been set for each of these themes. In conjunction with this, the name of the plan was changed to better reflect the content and scope of future initiatives.

The Sustainability Reort describes the new Sustainability Action Plan 2024-2026 and reports on the results of our sustainability initiatives to date, based on the ESG Action Plan 2021-2023.

For the details of our materialities, please refer to Integrated Annual Report 2023.

We formulated the 'Sustainability Basic Policy' based on the 'Sustainability Basic Policy,' one of our Corporate Philosophy and Policies, and 'Strengthening Sustainability Initiatives,' one of our Materiality (four strategies). Based on this, we formulated the 'Sustainability Action Plan' within the Priority Measures (Corporate).

Sustainability Action Plan 2024-2026

Can be swiped left or right.
Stakeholders Priority Themes Target Executive in charge *1 KPIs KPI Target (FY2026)
Shareholders and capital market Mid-/long-term and sustainable enhancement of corporate value Aiming further sales growth, improved profitability, and more efficient use of capital CFO In accordance with MTP3 Management Indicator In accordance with MTP3 Management Indicator
Enhancement of sustainability information disclosure Timely and appropriate disclosure of financial and non-financial information CFO ESG evaluation by rating agencies Maintaining and improving evaluations by major ESG evaluation by rating agencies
Employees Respect for diversity Promoting gender diversity CHO Ratio of female managers *2 11%
CHO Ratio of female employees among candidates (Level6) for executive and managerial positions *3 16%
Employee Engagement Fostering and instilling an attractive corporate culture CHO Turnover rate Below semiconductor industry average
CHO Gallup Survey Scores *4 3.8
CHO INTEGRITY Award nominations/year *5 400
Investment in human capital Promoting health and wellbeing management and work-life balance CHO Japan: White 500 Certified (Japan)
Global: To be decided during FY2024 *6
Japan: Certified as White 500
Promoting human capital development based on the Advantest Development Framework CHO Education and training expenses 0.8 (Billions of yen)
Customers Providing superior solutions Provision of new products and integrated solutions that solve customer issues CTO Market position Maintaining 'No.1 position in the focus markets'
Customer satisfaction and trust Provision of more value added and comprehensive customer support quickly and accurately CCRO Market position Maintaining 'No.1 position in the focus markets'
Climate change countermeasures and reduction of environmental impact Improving the environmental performance of our products CTO Development of “power optimized products” To be decided during FY2024
CCRO Promotion of products with excellent environmental performance To be decided during FY2024
CSO Enhanced Product Life Cycle Assessment Expansion of the life cycle assessment management scope and data refinement
Suppliers Respect for human rights and fair deals in the supply chain  Responsible Mineral Procurement CSCO Supplier response rate to conflict minerals survey 99%
Penetrating Sustainability in the Supply Chain CSCO Due diligence implementation rate for designated business partners *7 100%
CSCO Number of designated business partners *7 50 suppliers s (Designated business partners 42 suppliers in FY2023) *7
Greenhouse Gas Emission Reduction (Scope 3) Supply chain decarbonization CSCO Percentage of main business partners that have introduced renewable energy sources *8 60%
Partners Creation of innovation and contribution to local communities and global society Implementation of activities related to innovation and social good CSO The number of strategic partnerships Maintain the same level as FY2023
CCO The number of employees' activities contributing to local communities (both inside and outside of work) 180 (FY2024-FY2026 Cumulative Total)
Global Environment Greenhouse gas emission reductions (Scope 1+2) Reducing GHG emissions from Scope 1+2 CSO GHG emissions reduction rate 65% (vs. FY2018)
Raising renewable energy usage CSO Renewable energy coverage rate 80%
Reducing energy consumption by shortening the production period of major products CSCO Reduction of production period by reviewing production processes Reducing production period by 20% (vs. FY2020)
Contribution to the Circular Economy Improvement of recycling rate through promotion of 3Rs (Reduce, Reuse and Recycle) CSO Waste recycling rate (Japan and overseas) Japan:90% or more
Other regions: 73% or more
Maintaining company-wide water consumption at FY2016 levels CSO Water resource usage Less than 288,000m3/year
Conservation of biodiversity and natural capital Preservation of biodiversity, promotion of nature conservation activities (protection of endangered species in biotopes, tree planting, beach cleanups, etc.) CSO Total number of participants in social contribution activities related to natural capital 600
(FY2024-FY2026 Cumulative Total)
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Priority Themes Target Executive in charge *1 KPIs KPI Target (FY2026)
Governance Promoting ethical management and business Compliance with international/industry standards CSO Compliance with business codes of conduct and management system standards Maintain and recertify ISO certification and pass RBA audit
Implementation of Global Compliance Education Program (GCEP) *e-learning for all employees CCO e-learning participation rate 100%
Fair and Transparent Workplace CCO Aiming to obtain third-party certification for whistleblowing system Obtaining third-party certification for whistleblowing system
Maintaining and improving occupational health and safety CHO Incidence of serious occupational accidents which result in absence from work (LTIR: Lost Time Incident Rate) 0%
Fostering internal understanding of sustainability CSO Implementation of measures for different levels of the organization to promote understanding of sustainability Implementation of the measures for different levels
Continued enhancement of Corporate Governance structure Enhancement of board structure and governance to increase effectiveness of corporate governance COO Ensuring the effectiveness of the Board of Directors Enhancement of disclosure of effectiveness evaluation results
COO The board composition that satisfies the skill set required in line with management strategy and the business environment, and also ensures diversity Periodic review by the Board of Directors and review and revision as necessary
Enhancing risk management Strengthening internal control CCO Risk clarification and response based on twice-yearly risk reviews Implementation of risk review twice-yearly
  • *1
    List of Executive in charge is described in the Securities Report under "Item4 Status of the Company 4. Corporate Governance (2) Directors 1) List of Directors,"
  • *2
    The non-consolidated Female manager ratio and Differences in Wages between Male and Female Workers are described in “ Item 1. Company Overview 5. Status of Employee.”
  • *3
    Advantest's qualification system is a 10-level system which is globally standardized, with Level 6 being the highest level of qualification for general employees."
  • *4
    A group-wide survey is conducted every three years.
  • *5
    This award system honors employees who embody INTEGRITY through nominations from other employees.
  • *6
    As the White 500 is a certification system in Japan, the Company and its subsidiaries in Japan are subject to certification.
  • *7
    Tier 1 suppliers, which represent the top 85% of suppliers in terms of transaction value, and Tier 2 suppliers, which are the main suppliers of the Tier 1 suppliers, are subject to due diligence. These suppliers are defined as designated business partners.
  • *8
    The top 85% of suppliers by transaction value are defined as main business partners.