Materialities and the ESG 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 second Mid-Term Management Plan (MTP2), which began in fiscal 2021, and made the five strategies themselves materiality for the entire Advantest Group.
One of Advantest’s materialities is the "further enhancement of ESG initiatives." In an effort to drive this materiality, we have set out the ESG Initiatives Basic Policy and formulated ESG Action Plan 2021-2023 based on these policies. Subsequently, we have updated our ESG Action Plan to incorporate the Enhancement of Initiatives for Human Rights Issues based on discussions at the ESG Global Review Meeting.
In the Sustainability Data Book, we report on our sustainability initiatives based on ESG Action Plan 2021-2023.
For the details of our materialities, please refer to Integrated Annual Report 2023.
ESG Action Plan 2021-2023
| ESG | Key Issue | Person in Charge*1 | Objective | KPI | Target Value | |||
|---|---|---|---|---|---|---|---|---|
| 2021 | 2022 | 2023 | 2030 | |||||
| E (Environment)     
|
Climate Change (Scope 1 + 2) |
CSO | Reduce GHG emissions from business activities by 60% by 2030 (vs. FY2018) | GHG emissions reduction amount/rate | 35% | 38% | 40% | 60% |
| Raise renewable energy usage to 70% by 2030, Group-wide | Coverage rate by renewable energy | 50% | 53% | 55% | 70% | |||
| CPO | Reduce production times 30% through production process reviews (vs. FY2020) | Production time reduction rate for target models (vs. FY2020) | 15% | 25% | 30% | TBD*2 | ||
| Value Chain (Scope 3) |
CPO | Promote the use of renewable energy by suppliers and contractors | Number of suppliers who use renewable energy | 10 | 20 | 40 | TBD*3 | |
| CTO | Reduce CO2-equivalent emissions (basic unit) per test by 50% by 2030 | Reduction rate in basic units (vs. FY2018) | Set basic unit calculation definition | → | 20% | 50% | ||
| Green Products | CTO | Develop products that are free from polluting substances | Total elimination of PFAS in coolant | New methodology in development plan | Announce release plan | Total elimination of PFAS in next-generation models | ||
| Resource Recycling | CHO | Improve in-house recycling rate by promoting the 3Rs | Waste recycling rate (Japan/overseas) | JPN:90% Other regions:73% or more |
→ | → | JPN:90% Other regions:73% or more |
|
| Maintain Group-wide water usage at FY2016 levels | Water resource usage | 288,000m3/year | → | → | 288,000m3/year | |||
| Biodiversity | CSO | Promote nature conservation activities (protection of endangered species in biotope, tree planting, beach clean-up, etc.) |
Planning and implementation rate of nature conservation activities | 10 activities planned, 80% implemented | 14 activities planned, 80% implemented | 18 activities planned, 80% implemented | 20 activities planned, 80% implemented | |
| S (Social)  
|
ESG management at Supply Chain | CPO | Share and solve/mitigate ESG issues (risk management, human rights/occupational safety, environment, fair trade, compliance, etc.) | Due diligence implementation rate for major suppliers | 90% | 95% | 100% | 100% |
| Diversity, protection, and respect for human rights | CHO | Fair treatment in gender | Female manager ratio | 9.0% | 10.0% | 10.5% | 17.0% | |
| Edification and practice of human rights | Participation rate of educational training | 100% | → | → | 100% | |||
| Work-life balance | Return-to-work rate after maternity leave (JPN) | 100% | 100% | 100% | 100% | |||
| Exercise rate of childcare leave by males (JPN) | 12% | 20% | 25% | 50% | ||||
| CPO | Conflict minerals elimination | Percentage of suppliers confirmed to be free of conflict minerals*4 | 100% | 100% | 100% | 100% | ||
| Customer satisfaction, employee engagement | CCRO | Raise customer satisfaction under New Normal circumstances | Ranking of TechInsights customer satisfaction survey | 1st | → | → | 1st | |
| CHO | Edification and improvement of attractive corporate culture | Score of Gallup survey | 3.5 | → No target value since the survey has not been conducted |
3.8 | 4.1 | ||
| Investing in human resources | CHO | Maintaining and enhancing occupational safety and health | Occupational accident rate (frequency rate) | 0 | → | → | 0 | |
| Promotion of health management | To be selected in White 500 (JPN) | Selected | → | → | Selected | |||
| Employee capacity building | Education and training expenses (100MY) | - | 5.0 | 6.0 | 10.0 | |||
| G (Governance)  
|
Board effectiveness | Group CEO | Provide outside directors with updates on business and management issues | 3 times/year | 3 times/year | → | → | 3 times/year |
| Intensify discussion through Off-site meetings by board members | 2 times/year | 2 times/year | → | → | 2 times/year | |||
| Succession planning | Policy/process making, planning, updates | Discussion by the Nomination and Compensation Committee and report to the Board of Directors | → | → | Discussion by the Nomination and Compensation Committee and report to the Board of Directors | |||
| Diversity of board members | Outside directors must include female representation (>40%) | Outside directors must include at least 1 female representation (>40%) | → | → | Goal continuation | |||
| Add ESG performance assessment to compensation | Start from FY2021 | Introduction of executive compensation system linked to ESG indicators | → | → | Goal continuation | |||
| Corporate culture and Code of Conduct, compliance, risk management | CHO | Work Shop/training for all employees (The Advantest Way, Law, Regulations, Information securities, etc.) | Participation rate for e-learning (100%) | 100% | → | → | 100% | |
| CCO | Strengthening Internal Control | Regularly discuss internal control issues | Regular discussion | → | → | Goal continuation | ||
| Promotion & support of ESG management (Sustainable Management Working Group) |
CSO | Support & Report group-wide Policy, Strategy, Plan and implementation | Report to Executive Management Committee and BoD (once a year) | 2 times/year | → | → | Goal continuation | |
| Timely and appropriate disclosure (Integrated Annual Report, Sustainability Databook) | Issuance every year | Publication of Integrated Annual Report, Sustainability Data Book, etc. | → | → | Goal continuation | |||