Connectors - IRISO Electronics co.,ltd.

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MATERIALITY

Materiality

 

We ensure “our company will continue to grow through surpassing social and customer expectations by empowering connections,” as well as “committing to sustainable society, environment and quality through making our employees and stakeholders excited.

What We Envision

In April 2023, we aimed to communicate the essence of the company’s management philosophy more clearly and weave it into work in reality, and defined our purpose (the company’s reason for being in society) as “together, surpassing expectations by empowering connections to enrich society and delight people,” as well as our dream (the company’s contribution to society) as “to create a future world friendly to people and environment where a wide array of features and functions are easily connected” through offering a wide array of our connection solutions.

We envision that, as a result of making a strong commitment to the purpose and dream for 10 years or around, by 2035, “our company will sustain business growth through surpassing social and customer expectations by empowering connections,” as well as by “committing to sustainable society, environment and quality through making our employees and stakeholders excited.

Materiality Identification Process

To identify the company’s sustainable development goals (materiality) that will affect whether we can realize “what we envision,” we analyzed future industry megatrends and considered a wide range of social issues. We analyzed the importance of each goal to stakeholders, as well as the significance and impact (both opportunities and risks) of each issue on our company’s sustainable growth by using a scoring system. After we made full discussions, also with external experts, we have identified five materiality goals.

Materiality

Five materiality goals for the company to realize “what we envision” and achieve sustainable growth:

1. Addressing social issues and growing the company’s business
2. Unlocking the power of manufacturing to support value creation
3. Working towards secure, safe and livable society that supports people and the environment
4. Developing diverse talent management
5. Improving the management foundation

Materiality
(What We Envision)		 Major KPI FY2023 FY2030 Opportunity Risk
1. Addressing social issues
and growing our business

(A company that aims to be
ranked among the world’s
top 10 connector
companies by creating
values through providing
connector solutions to
social issues)

・Ratio of net sales from
products that support
automation and
electrification for future
mobility innovation

・Ratio of net sales from
new products

 ・35％

・23%

 ・40％

・30%

 Growing demands for
connectors used in electronic
components as a result of an
increasing number of circuit
boards, helped by advanced
automation and electrification
in the future mobility market		 Decreased competitiveness due
to delays in product
development that meet market
needs
2. Unlocking the power of
manufacturing to support
value creation

（A company that, as one of
the top 10 leaders in its
industry, consistently
showcases its ability to
produce high-quality
products)

 Improving cost of sales ratio
by 7%		 69% 62％

・Improving profitability
through productivity increase
・Earning customers’ and
social trusts

 Risks of accidents, lawsuits due
to product defects, recalls, and
damage to brand value
3. Working towards secure,
safe and livable society that
supports people and the
environment

(A company that actively
supports the achievement
of a sustainable society)

 ・Free CO2 emissions from
electricity（2025)​

・Reducing SCOPE1-3GHG
emissions by 20%（2030,
VS.2021）

・Improving electricity
intensity by 30%（2030, VS.
2021）

 ・34kt

・274kt

・1.08MWh
/M yen

・Net 0

・167kt

・0.95MWh
/M yen

 ・Contribution to a
decarbonized society and
circular economy

・Raising more funding from
ESG (Environmental, Social,
and Governance) investors

 ・Business stagnation due to
intensified climate change and　
disasters

・Increased costs　to meet
more stringent legal
requirements
4. Developing diverse talent
management

(A company that fosters an
inclusive work environment
where employees from
diverse backgrounds can
feel a sense of fulfillment in
their work)

 ・Diversity (foreigners,
females and mid-career
hires) ratio of management
employees
・Employee engagement score		 ・84％

・48pt

 ・90％

・53pt

 ・Hiring diverse and talented
human resources

・Generating further innovation
through diversity

 ・Failure to retain diverse and
skilled talent

・Innovation stagnation
5. Improving management
foundation

(A company that has a
robust and reliable
management structure,
making it suitable to be
recognized as one of the
world’s top 10 companies in
its industry)

 ・ROE

・ROIC

 ・7.8％

・7.3％

 ・10% and more

・10% and more

 ・Improving trust in society and
boosting company value
・Generating further innovation
through diversity		 ・Fall in social trust and a
decrease in business value

・Business growth slowdown
and increased risks of business
continuity

Organizational Structure

The company’s sustainability initiatives are oversighted and handled mainly by the Management Strategy Meeting,　which consists of executive officers, led by the Director and General Manager of the Administration Division, as well as the Sustainability Promotion Office, under the direction of the board of directors.