TDK CSR REPORT 2009
English version

TDK CSR REPORT 2009
English version

TDK CSR REPORT 2009
English version

TDK Corporation

1-13-1 Nihonbashi, Chuo-ku, Tokyo 103- 8272
TEL: +81-3-5201-7102

http://www.tdk.co.jp/

Editor ial Polic yThis report was created with the aim of promoting understanding of the TDK Group's CSR (Corporate
Social Responsibility) activities among its stakeholders.

TDK
CSR REPORT
2009

Contents
03 Top Message
05 Corporate Philosophy and TDK Code of Ethics

Characteristics of FY 2009 Report
This document features special reports on the
topics “Vision,” “Courage,” and “Trust” which arealso key concepts of TDK’s Corporate Principle.
“Vision” introduces technology sustaining TDK
products fit to contribute to tomorrow’s society.
“Courage” puts the spotlight on developers who
explore new territory and overcome formidable

06 CSR of TDK Group07 A History of TDKʼs CSR Activities

obstacles.
“Trust” features a report on a new type of
event, namely a dialog with stakeholders on the
topic “A Company That Earns Your Trust.” Experts
from outside the company offer valuable advice on
the CSR approach of TDK.

Highlights
09 Highlights 1 “Vision” TDK Products with Future
VisionReport For mat
The report is available as a brochure and as a collection of web site pages, inslightly different format to match the requirements of the respective media.
Brochure: Digest version of the report, containing mostly highlights of CSR
activities.
Web site: More complete coverage comprising detailed information and data.

CSR Report (Brochure)

CSR Report (Web Site)

13 Highlights 2 “Courage” Courageous Spirit ofCraftsmanship

CSR Philosophy• Top Message• Corporate Philosophy and TDK Code of
Ethics• CSR of TDK Group• A History of TDK’s CSR Activities• Economic Performance Report• Corporate Governance

15 Highlights 3 “Trust” A Company That Earns Your
Trust (Stakeholder Dialog)

Social Responsibility• Customer Relations (Quality Assurance)• Supplier Relations• Employee Relations (Employment andHuman Resources)• Employee Relations (Safety and Health)• Shareholders and Investor Relations• Corporate Communications• Local Community Relations• Sponsor Activities

Corporate Report
17 Economic Performance Report
19 Corporate Governance

Environmental Responsibility• Environmental Policy and Environmental Vision• Targets and Results• Environmental Management System• Environmental Risk Management• Outline of Environmental Load
• Preventing Global Warming (Manufacturing)• Preventing Global Warming (Distribution)• Managing Waste• Promoting the Creation of EnvironmentConscious Products

http://www.tdk.co.jp/csr_e/index.htm

Guidelines Used
GRI Sustainability Reporting Guidelines 2006

Social Report
21 Customer Relations
23 Supplier Relations

CSR Highlights• TDK Products with Future Vision• Courageous Spirit of Craftsmanship• A Company That Earns Your Trust

25 Employee Relations (Employment and Human
Resources)

CSR Data• A History of TDK’s Environmental Activities• Facilities with ISO14001 and OHSAS18001
Certification• Environmental Performance Data
• Cost of Environmental Protection• Environmental Performance Data by Site

27 Employee Relations (Safety and Health)
28 Shareholders and Investor Relations
Corporate Information

Period Covered
Fiscal Year 2009 (April 1, 2008 – March 31, 2009)＊Some activities outside of this period are also covered.

Organizations Covered
TDK Group*＊TDK Group: TDK Corporation and 135 consolidated subsidiaries in Japan and overseas

Major Organizational Change
During Covered Period
Since October 2008, the EPCOS Group has become aconsolidated subsidiary, but its activities are notcovered in this report.

01

T DK C SR REPORT 20 09

Corporate Name

Scope of Data
Economic performance section: TDK Group
Social activities section:
Scope as indicated for each report.
Environmental section:
All sites for which Environmental Management
System is configured.

Cover Page Design
The woven band of flowers symbolizes the intricate
link between people, society, and the environment.
It also expresses how various electronic components
from TDK play a vital role and are linked in the set
product.

TDK Corporation

Corporate Headquarters
1-13-1, Nihonbashi, Chuo-ku, Tokyo,103-8272
Date of Establishment December 7, 1935
Paid-in Capital

29 Local Community Relations

32,641,976,312 yen(As of March 31, 2009)

Number of employees (Consolidated)
66,429 (As of the end of March, 2009)
Net Sales (Consolidated)
727,400 million yen(Fiscal year ended March 31, 2009)
Net Loss (Consolidated)
63,160 million yen(Fiscal year ended March 31, 2009)E n v i ro n m e n t a l R e p o r t
31 Enviromental Policy and Environmental Vision
33 Targets and Results
35 Environmental Management System
Environmental Risk Management
Outline of Environmental Load

37 Preventing Global Warming (Manufacturing
and Distribution)
39 Managing Waste
40 Promoting the Creation of EnvironmentConscious Products

T DK C SR REPORT 20 09

02

To p M e s s a g e

To p M e s s a g e

Dare to dream—Dare to be different.
In a spirit of courageous craftsmanship,
TDK creates products of true value.

03

T DK C SR REPORT 20 09T

he history of TDK begins with ferrite, amagnetic material that we adapted toindustrial use for the first time in theworld. Rather than imitating others, we aim tocreate new things, and do so already from theinitial stage, starting with the raw material. At
the other end of the process, our concern
extends to the way the set products are used insociety. We like to explore and forge our own
solutions with creative thinking. This spirit ofinquiry has driven our company from the very
beginning, and it still defines TDK today.
A field that we have been engaged incontinuously is magnetics, with ferrite as thecore element. Hearing comments such as “Whenthinking magnetics—think TDK” therefore
comes as no surprise. We have earned thisreputation through involvement with a wide
range of products, and I strongly intend tocontinue this policy. Some examples include
cassette and video tapes, recording heads forhard disk drives, and more recently MRAM
(Magnetic Random Access Memory) whichfeatures low power consumption and highoperation speed and is considered a promisingnext-generation memory technology.
We believe that the technical expertise
gained by TDK over the years has the potential
to make a significant contribution in solving
various problems which society is facing today.
A case in point is the creation of technology to
reduce power conversion losses occurring
during the transmission of electrical energy.
Also, by making electronic components smaller
and lighter while retaining high performance,
we can help reduce the environmental load ofsociety in general. Through forward-looking
thinking and the quest for innovative solutions,
we can anticipate the needs of our customers

which in turn respond to the needs of society.
This opens up a range of new and exciting
possibilities.
We encourage our entire staff of about
60,000 people to tackle difficult challenges headon, to become part of the creative process,without being afraid of the occasional failure.
The quest for new products of true value begins
with asking questions, looking at existing
phenomena and situations in a new light. In
doing so, we should not isolate ourselves but
always reach out and be communicative. Gaining
experience through interaction and moving
forward is invaluable. But the most important
aspect is the power to dream. I see it as my own
responsibility to instill an imaginative outlook in
all members of our organization.
A development that is attracting a high levelof interest recently is magnetoelectronics. It isalso called “spintronics” because it involves
groundbreaking research into ways to utilize thespin of electrons. TDK is in a position to use its
expertise in the field of magnetics to foster thetransition “from electronics to spintronics.” It is
our dream to help build a bridge into a new
dimension of scientific achievement.
TDK is progressing steadily with an eye on
future visions. Some aspects of our current
efforts are described in this report. I hope thatyou will find it interesting reading, and heartily
welcome your comments and suggestions.

P r e s i d e n t & C EOTDK Corporation
Ta ke hi r o K a mi g a m a

T DK C SR REPORT 20 09

04

CSR of
TDK Group

CSR of TDK GroupTo ensure that TDK continues to earn the trust of society,
all the employees in their daily activities are implementing the corporate philosophy
and ethics as expressed in the Corporate Motto.

C SR of TDK Gr o u p

Corporate Philosophy and TDK Code of Ethics

For the TDK Group, CSR efforts take shape through theimplementation of our Corporate Motto and the
pursuit of the corporate ethics. This means that all thestaff members bases their daily activities on theguidelines laid down in the Corporate EthicalPhilosophy and the Corporate Standards of BusinessConduct. The Corporate Motto and Corporate Principle
are short representations of these ideas.
Ever since its founding, the TDK Group has been
focusing on creating truly valuable products throughinnovation and technological drive. This was madepossible by a complex interplay of all our stakeholders,
namely our customers and suppliers, the local
communities of the areas where we operate, ourshareholders and investors, and of course all our
employees. We intend to further strengthen the ties
between all of these interrelated groups, making surethat clear and open channels of communication exist. By
asking what is expected of us and what kind of value
we can deliver, we will be able to contribute to society
through our products and our sense of craftsmanship.

Corporate Philosophy
Corporate Motto

Contribute to culture and indus tr y through creativit y
Corporate Principle

Employee attributes “ Vision ”“ Courage ”“ Trust ”
Vision Always take a new step forward with a vision in mind. Creation and construction are notborn without vision.

Courage Always perform with courage. Performing power is born by confronting contradiction andovercoming it.

T DK ʼ s St a ke h o l d e r s

Shareholders/
Investors
Established in April 2002; revised in May 2005

Suppliers

Corporate Ethical Philosophy
TDK Members shall strive to fully implement the following
concept while recognizing its importance for TDK and otherparties.
●TDK Group and TDK Members shall observe the laws,
regulations, and standards of society applicable to TDK
and conduct business in a fair and sound manner.
●TDK Group shall contribute to society by providing
excellent products and services.
●TDK Group shall respect each member’s personality andCustomers

TDK

individuality and ensure a safe and comfortable work
environment.
●TDK Group shall maintain a strong and amicable
relationship with its customers, suppliers, employees,
shareholders and other stakeholders.
● TDK Group shall constantly seek to be a good corporate
citizen by contributing to society and the community.
● TDK Group shall contribute to protecting the global
environment and to building a secure and comfortablesociety.

Local
Communities

CSR activities at TDK are conducted under the guidanceof the Business Ethics & CSR Committee and its
subordinate organization of the CSR Task Force.

Business Ethics & CSR Committee
The Business Ethics & CSR Committee reports directly to
the Board of Directors. The committee is comprised of
the Administration Group General Manager andFunction Managers from the Management Review &Support Department, Finance & Accounting
Department, Human Resources Department, General
Affairs Department, Legal Department, and Corporate
Communications Department. The mission of thecommittee is to promote awareness of the TDK Code of
Ethics. This is achieved by implementing training
programs and carrying out many other activities aimed
at the staff of TDK Group companies all over the world.
It identifies problem points and attempts to find solidand lasting solutions.

C SR Ta s k F o r c e

Trust Always try to build trust. Trust is born from a spirit of honesty and service.
TDK Code of Ethics

CSR Promotion StructureThis workgroup operates under the umbrella of theBusiness Ethics & CSR Committee. Experts from therespective fields work together to deal with various CSR
topics, namely “Governance/Compliance” “Human
Rights/Employees”“Environment”“Social Contributions”“Customers/CS”“Quality Assurance”“Suppliers” and “RiskManagement”. In response to issues identified by theBusiness Ethics & CSR Committee as relevant to CSR in
the electronic component business, the Task Forcecarries out investigations and implements a broad scopeof CSR related activities.

Employees

CSR Promotion Struc ture
Corporate Standards of Business Conduct
In the process of conducting TDK business, TDK Members
shall actively increase their awareness of the following
concepts.

Business Activities● Respect for each employee’s personality and individuality● Respect for privacy● Respect for human rights● Observance of legal requirements for working conditions● Maintenance of a safe, healthy and comfortable work
environment

Board of Directors

CSR Task Force
Governance/Compliance ............. Legal Department

Business Ethics & CSR Committee

Human Rights/Employees ... Human Resources Department

Americas

EuropeJapan & Asia

Environment ................ Safety & Environment OfficeSocial Contributions .... Corporate Communications Department

Help LineTDK Group and Society● Compliance with applicable laws and regulations● Disclosure of information● Protection of the global environment● Contribution to society and the community

Help Line

Help Line

Subsidiary

Subsidiary

Subsidiary

Subsidiary

Subsidiary

Ethics Council

Ethics Council

Ethics Council

Ethics Council

Ethics Council

CounselorCounselorCounselorCounselorCounselor

Consultor● Supply of excellent products and services and maintenanceof safety● Maintenance of sound and good relationship withcustomers, suppliers and other business partners● Maintenance and promotion of fair and free competition● Protection of intellectual property rights● No conflict of interest● Protection of confidentiality● No use of business opportunities of the TDK Group for
personal benefit● Fair dealing● Protection and proper use of TDK Groupʼs assets

TDK Group and Employees

Risk Management ... Management Review & Support Department
Products ................... Quality Assurance Department
Customers/CS ............... Sales & Marketing Divisions
Suppliers ........ Procurement & Logistics Department
Crisis Management ....... General Affairs Department*As for the details of TDK Code of Ethics, please refer the following URL. http://www.tdk.co.jp/teaaa01/aaa06000.htm

05

T DK C SR REPORT 20 09

T DK C SR REPORT 20 09

06

CSR of TDK GroupA Histor y of TDK ʼ s CSR Ac tivities
Ever since its founding, TDK has contributed to society by making products of value.
This section presents a short overview of how TDK as a company has responded to theneeds and expectations of society.

2002
2002

1993
1935

Company founded

1999

Green Procurement starts

Corporate Motto andCorporate Principle
established07

Environment Protection〉〉Activities (from 1993 onwards)

TDK Environmental Voluntary Plan established1967

Mikumagawa Plant obtains ISO 14001 certification forEnvironmental Management System
Regular release of Environmental
Report begins

2004

Company-wide system obtains OHSAS 18001 (Occupational Health and Safety
Assessment Series) certification

2005
2006

CSR Task Force established

2007
2009

Zero emissions achieved for all manufacturing sites

TDKʼs CSR activities defined as implementing the corporate motto and pursuing ofcorporate ethics
TDK decides on “EICC+JEITA”as the core of site
based CSR activities
TDK CSR Self Evaluation established anddistributed

Mass production technology forelectronic components compatible
with lead-free solder developed
TDK Environmental
Action 2010 established
TDKʼs Environmental
Report 1999

Things That Change and Things That Remain

What Can We Do for the Future Now?

TDK as a company was formed for the purpose ofindustrializing ferrite, a revolutionary magnetic
material with unique properties that had been
invented in Japan. During the seventy years since then,we have based our activities on a spirit ofcraftsmanship, which means creating a product fromscratch, beginning with a thorough understanding of
the source material. This has enabled us to turn out
creative and valuable products that contribute to theadvancement of the “electronics society” of today.
The TDK Group will continue to develop and offer
innovative and meaningful products. On the other
hand, the environment in which we find ourselves isconstantly evolving and changing. As the scope of ourbusiness activities expands, we obtain more
opportunities to contribute to society, but we must also
be aware of the possible dangers and pitfalls. The
responsibility that industry has to society as a whole isgetting ever more complex and important.

At the Earth Summit in 1992, the fact that environmental problems were an issue of global concern was
fully realized for the first time. In response, TDK
formulated an Environmental Voluntary Plan whichbecame the basis for our activities aimed at protecting
the environment.
In 1997, TDK’s Mikumagawa Plant obtained ISO
14001 certification. Moving further along this path, aunified Environmental Management System became
operative for all Japanese domestic sites in 2005. This
ensures that our environmental protection activities areplaced within a consistent and comprehensive
framework.
In 2002, restrictions on the use of harmful
substances started to gain traction, and TDK establishedmass production technology for electronic components
fully compatible with lead-free solder. In the same year,
realizing the need to have an action plan forsustainable development and establishing a recyclingoriented society, TDK devised the “TDK Environmental
Action 2010.” This plan formulates concrete action
items as well as medium and long term goals matched

T DK C SR REPORT 20 09

Business Ethics Committee formed(renamed Business Ethics & CSR Committee in 2005)
TDK Code of Ethics established

1993
1997

2002

Activities〉〉CSR(from 2002 onwards)

TDK Corporate Standards ofBusiness Conduct Handbook
Japanese/English

to the characteristics of TDK as a company. It clearly
outlines what sites, divisions, and staff departments
have to do in order to further intensify ourenvironment-oriented efforts. Currently, a new longt e r m p l a n w i t h a g l o b a l o u t l o o k c a l l e d “T D K
Environmental Action 2015” has been released. It shows
how the entire TDK Group will work towards fully
sustainable development and the realization of a nowaste, recycling-oriented society.
Note: As for TDKʼs Environmental activities, please refer the following URL.
http://www.tdk.co.jp/csr_e/csr05100.htm

E v o l v i n g C SR A c t i v i t i e s
The responsibilities of industry towards society, and the
expectations and demands placed by society on
businesses are ever evolving and expanding. Beyond
measures to protect the environment, other increasingly
important requirements include transparency ofmanagement, concern for human rights and equal
opportunity, and meaningful communication between
all parties that are stakeholders of the company.
In the electrics and electronics sector, the Electronic
Industry Citizenship Coalition (EICC) was formed in the
U.S. Inspired by this development, the Japan Electronics

and Information Technology Industries Association(JEITA) published a Supply-Chain CSR Deployment
Guidebook in 2006. As these developments in theindustry show, CSR concerns not only the members of asingle company or group, it also extends to suppliers
and the entire manufacturing and marketing chain. A
common understanding of this vital fact is emerging
now. The TDK Group is both a supplier and a consumerof raw materials, and our CSR activities are to be basedon a comprehensive policy.

Future Outlook for the TDK Group
With an eye on the near future, TDK will further consolidate
its CSR activities with the aim of enhancing the quality ofmanagement. The capability for CSR self-evaluation at thevarious sites of the group will be strengthened, which will
inspire staff members at the respective sites to take theinitiative and turn policy into action.
The spirit of craftsmanship that has characterized
the TDK Group since the beginning will continue to be
relevant. At the same time, we need to adapt to thechanging needs of society, enabling us to contribute tosociety in a meaningful and productive way through the
products we make.

T DK C SR REPORT 20 09

08

Hig hlig ht s ̶ “ V i s i o n ” “ C o u r a g e ” “ Tr u s t ”

T

D K P r o d u c t s w i t h F u t u r e Vi s i o n
The TDK Group is constantly developing new products that derive theirstrength from our original technology and know-how.
Because our output is mostly electronic components, the end-user
rarely encounters our products directly, but they are at the core ofwhat makes many set products function. By extension, the set products
embody our vision for the future.
A few examples are shown below, highlighting sophisticatedtechnology for effective use of energy and for a new generation ofenvironment-conscious products.

AC-DC, DC-DC Power
Modules for High-Voltage
DC Current Power Feeding
Applications
Designed for HEMS (HomeEnergy Management
Systems) to efficiently
supply electrical energy
inside the home.

Two-Way AC/DC
Converter for PHEVs*
Used for converting AC fromthe commercial power network
into DC for PHEVs, and also forsupplying energy to the homein DC form.
＊PHEV: Plug-in Hybrid Electric
VehicleHigh-Capacity Lithium
Ion Battery
Ideal for storing energy
produced by solar power
and wind power generatorsand supplied from outside
the home.

09

Highlights 01

T DK C SR REPORT 20 09

DC Electrification
Eco Home
Normally, electrical power is supplied toresidential homes in the form of AC(alternating current) by power companies orother providers. However, because manyelectrical appliances actually run on DC(direct current), AC adapters are needed toconvert the alternating current into direct
current. In the DC electrification eco homeon the other hand, power is distributed as
direct current. Power obtained from naturalenergy sources is stored in lithium-ion
batteries, eliminating the need for theconversion stage with its inherent losses.
Consequently, energy can be used more
efficiently, which helps to reduce CO 2
emissions.

Soft Magnetic Metal
Material for Generatorsand Motors
Utilized in generators andmotors in wind power
installations that turn windenergy into electricalenergy.

DC-DC Converter
Used in PCUs (Power Control Units)of hybrid electric vehicles to turnthe high voltage from the batteries
into the lower voltage required todrive the electronic equipment of
the automobile. Featuring highconversion efficiency as well ascompact dimensions and low
weight, these TDK products
contribute to better fuel economy.

Dye-SensitizedSolar Cells
Used in solar power
generation that turn solar
energy into electricalenergy, for greatly reduced
CO2 emission levels.

Battery Current Sensor
Designed for detecting input andoutput current levels in battery
systems, so that overcharging andexcessive discharging can bereliably prevented. This protection
contributes to longer battery life.
Accurate detection of remaining
battery capacity is anotherimportant aspect for precise system
control, which contributes tobetter fuel economy.

Hybrid Electric Vehicle
Automobile that uses both anelectric motor and a combustion
engine to achieve much better
fuel economy than a conventional
automobile. Exhaust gas iscleaner, with significantly lower
CO2 emissions. This type of vehicle
is currently attracting a lot of
attention because of its overalllower environmental load.

High-Performance Neodymium
Magnet NEOREC 53 Series
Proprietary TDK technology has
made it possible to build magnets
with drastically improved
magnetism. These are used in theelectric motors of hybrid electricvehicles, providing assistive power
to the engine and enabling therecycling of energy. The magnets
have excellent heat resistancecharacteristics, which prevent a
drop in motor output power at hightemperatures, thereby contributing
to better fuel economy.

T DK C SR REPORT 20 09

10

Highlights 01

T D K P r o d u c t s w i t h Fu tu re V i s io n
T h e Te c h n o l o g y B e h i n d T D K ’s
Environment-Conscious Products
TDK creates its range of environment-conscious products
by fully utilizing its core technologies. There include

The Eco Love Logo and TDK
Products

materials technology at the source, process technology todevelop and optimize the characteristics of materials andapply them in products, as well as evaluation andsimulation technology to sustain and accelerate ourdevelopment and design activities.
Some examples of how technology is applied areshown below.

1.2 ㎜

2.0 ㎜

2008

Raw
1
material =
200
usage

0.4 ㎜ 0.2 ㎜
0.2 ㎜

1.2 ㎜

Electrical=power
used forsinteringS i z e 2012

TDK ʼ s Environment- Conscious Produc ts Line -up
SUPER
ECO LOVE
products

Changes in environment- conscious design of chip components
1990

The Eco Love symbol is meant to indicate that a
product is based on love for our global environment. Its
design expresses our stance, awareness, and concern
for environmental issues.
The logo is used widely, both for company-internal
communications related to our drive for creating

environment-conscious products and in promotional
material aimed at third parties. It serves to identify
environment-conscious products that have special
merits, and is found in catalogs, on our web site, and inother locations.
We intend to further increase the ratio of “EcoLove” and “Super Eco Love” products in our overall
output in future. Together with our customers, wewant to help protect the earth and achieve sustainable
progress.

CO 2 emissions
from sintering

1100
S i z e 0402

99％

Approx.

reduction

Taping

Packaging material usage: 80％ reduction
Transport related CO 2 emissions: 80％ reduction
Storage space requirements: 80％ reduction

ECO LOVE
products

More compact packaging format

1990

2008
Sn plating

Sn-Pb plating

Precious metal：Pd

11

Base metal：Ni

Lead-based
dielectric material

Complete elimination of harmful substances

Precious metal(Pd) material

Reduction in use of precious metals
Reduction in energy used for sintering

Pb glass terminal
electrode

Complete elimination of harmful substances

Sn-Pb terminal
electrode

Complete elimination of harmful substances

T DK C SR REPORT 20 09

Response to lead-free soldering

Non-lead-based dielectricmaterial
Base metal (Ni) material
Non-Pb-glass
terminal electrodeSn terminal electrodeT DK C SR REPORT 20 09

12

02

Hig hlig ht s ̶ “ V i s i o n ” “ C o u r a g e ” “ Tr u s t ”

CHighlights 02

ourageous Spirit of CraftsmanshipPe r s eve ran ce T hrou gh Trial an dErro r I s th e Key

A key aspect of TDK’s approach to making products is “courage.”
The courage to challenge a difficult task without fear of failure,in order to meet the needs of society and create something new.
As a case in point, let us introduce the members of the development
team who received the “CHO (Super)” MONODZUKURI Innovative
Components Awards in 2008 for their work on a noise filter for
high-speed signals.

Development of Miniature Noise
Fil t e r U s i n g T h i n - Fil m Te c h n o l o g yWith the rapid shift of TV and other electronic devices
towards digital formats and higher performance, therequirements placed on components used in such
equipment also are undergoing a drastic change. The
common mode filters produced by TDK are a case in point.
Noise filters used in the input and output circuitry of TV
sets, computers, and many other devices serve to remove
noise generated during the transmission of audio, video
and other data. They are indispensable elements for
ensuring high data quality. In recent years, the highperformance HDMI interface enabling reliable transmissionof large amounts of data at high speed has become
widespread, bringing with it the need for noise filtering
capable of handling very high signal speeds.
To meet these needs, TDK released the TCM2010H
miniature noise filter array for high-speed signal lines in2007. “As a matter of fact, there were already filters on the

Know-how and technology
concentrated in a miniature
package: TCM2010H measuring
a mere 2.0 x 1.0 x 0.8 mm

market for use with high-speed signal lines, both from
TDK and from other manufacturers.” says one of thedevelopers, Tomokazu Ito who works at the TDK
Shonai. “However, they all were coil types which
require quite a bit of space. The TCM2010H wasdrastically different, because it is a thin-film type smallsized product capable of handling high signal speeds.
This was made possible by applying our technology forforming films with micrometer-level precision.”
The small dimensions of course enhance the usefulnessof the product and its application scope, but that is not all.
They also mean that fewer raw materials and less energy
are consumed during the manufacturing process, and that
the Print-circuit board and the final dimensions of the
product in which it is used can also be smaller, thereby
reducing the environmental load.
The engineers working on this project were aiming
not only to create a product to fit an immediate need but
also one that takes the wider context of the environment
into consideration. This kind of attitude formed thebackground of the development of the TCM2010H.

TDK has a proud and successful history of technologicalbreakthroughs, for example in the field of thin-film
magnetic heads for recording media applications. Why not
apply the thin-film technology and know-how gained inthis process to the field of electronic components as well?
That was one of the ideas that inspired Mr. Ito and hiscolleagues to develop a thin-film type noise filter.
But of course, it was not a matter of simply using
the same technology as for magnetic heads. Developing
the filter required first building various prototypes
based on design specifications, and then evaluating andanalyzing their actual performance. Where are theproblems, why are the targeted results not achieved?
The team identifies possible causes, and a new,improved prototype is built. This process must be
repeated not once or twice but numerous times.
The common view at the time held that it would be
virtually impossible to adapt thin-film type noise filters tohigh-speed signal transmission applications. And of course,
no manual or primer existed to which one could turn whentrying to find out why the prototypes didn’t deliver thedesired functions and performance. The only way for thedevelopment team to forge ahead was to keep on
brainstorming, discussing the various aspects over andover, and persevering with the test runs. “The fact that
we were expected to produce results within a fairly shorttime frame considerably added to the pressure that we
felt. After all, our research, even if on an important topic, is
not an end in itself, it only has meaning if it leads to a
usable product within a reasonable period of time”
remarks Mr. Ito as he looks back on this difficult time.
Because the team was in novel territory, of course nobody
expected them to succeed right away, but at times they did
not even see a possible avenue for progress, and were left
wondering where the light at the end of the tunnel might
be coming from. It certainly was a trying time. Remarkably, however, nobody ever suggested to give up. The
spirit of craftsmanship and of challenging a difficult
task in the face of adversity is very strong in the entire
TDK organization, and it naturally applies to theresearch and development staff working at theforefront of new product development as well.

Some of the team members who worked towards a common goal

13

T DK C SR REPORT 20 09”The cooperation among departments is what makes
TDK special” says Mr. Ito.

After overcoming innumerable failures, the noise
filter TCM2010H finally became a reality in June 2007,
featuring a footprint that was about one half that of aconventional coil-type product. About one year had
elapsed since the first prototype was built, and theefforts of the R&D team had now resulted in a
breakthrough success.

Collaboration and Cooperation
Lead to SuccessIn the year following its introduction, the TCM2010H
series, which successfully combined small dimensions
with high performance, attracted considerable interest
and received a lot of praise for the advanced technology
it represents. The Nikkan Kogyo Shimbun awarded it the“CHO (Super)” MONODZUKURI Innovative Components
Awards in the electric and electronic component
category. “Of course, gaining recognition from a wider
audience is a great joy and it provides the motivation for
our work. But when hearing of the prize, even stronger
was the feeling of gratitude to all the staff members in
the various departments who had taken part in thedevelopment” reminisces Takeshi Okumura who worked
with Mr. Ito on the project.
As indicated by this comment, the TCM2010H
indeed was not solely the brainchild of the designers
around Mr. Ito. The cooperation of many people invarious sections of the organization, such as theevaluation and manufacturing department, employees
from the magnetic heads department who worked onthin-film head development, and many others was vital
during the process. “All of these people worked towards
the same goal and shared the same concerns. That iswhat made the development possible. And we werekeenly aware of their efforts, so we felt even more that
we couldn’t just fail or give up. The success of theTCM2010H demonstrates how important it is tostrengthen the collaboration between different
departments in our company when developing new
products, something that not necessarily was a given in
the past” says Mr. Ito.
Both Mr. Ito and Mr. Okumura agree: “Our firstthoughts after the TCM2010H was released went along thelines of ‘What comes next?’ and ‘How can we create
something that’s even better?’” The courageous spirit ofmany people working together sustains the TDK traditionof creating products in a craftsmanlike manner. This is thedrive that is alive today and is carrying us into the future.

T DK C SR REPORT 20 09

14

Hig hlig ht s ̶ “ V i s i o n ” “ C o u r a g e ” “ Tr u s t ”

A03

Company Th a t E a r n s Yo u r Tr u s t
Opinions of Outside Exper ts

What is expected of a company to gain the trust of society?
We invited some key figures from outside the company
to discuss the responsibilities that a business has with regard
to its place in society, and to get pointers on the directionin which TDK should be going.
The question of what a company should do to fulfill the
expectations of society and earn its trust is at the heartof the CSR concept. This was the main topic of the
discussion. Three outside CSR experts with different
backgrounds provided valuable advice and insights,
based on their respective experiences and viewpoints.
Ms. One Akiyama, president of Integrex Inc., an
independent research company specializing in integritybased socially responsible investment (SRI) talked aboutchanges in value concepts expected from the industry
and which role CSR should play in the activities of abusiness. Mr. Toshihiko Fujii who works at the Ministryof Economy, Trade and Industry and has extensive
experience in negotiations with European government

P articipants
f or TDK

15

Highlights 03

institutions and industry representatives stressed that
CSR should be seen not as theoretical principle or an
externally imposed obligation but as a means of risk
management and a business strategy. Finally, Mr.
Masaaki Kogure who previously headed the corporate
secretarial office at Daiei gave his views on what abusiness needs to survive, based on his extensive
experience.
In response, participants from TDK voiced opinionss u c h a s “C S R a l r e a d y s e e m s t o b e o n e o f t h epreconditions when dealing with customers.” “CSR
should be rooted in the particular tradition and cultureof a company.” and “Delivering products of highquality will be the key to CSR as implemented by TDK.”

Seiji Enami, Director and Executive Vice President
Junji Yoneyama, C orporate Officer and General Manager, Human
Resources Department
Osamu Yotsui, G eneral Manager, Management Review & Support
Department
Takahiro Kokai, M anager, Planning Section, Strategic Sales Division,
Electronic Components Sales & Marketing Group
Tetsushi Shimonishi, P lanning Section, Strategic Sales Division,
Electronic Components Sales & Marketing GroupKoji Inukai, General Manager, Quality Assurance Department
Yoshitaka Mochizuki, M anager, Quality Planning Section, Quality
Planning Group, Quality Assurance Department

T DK C SR REPORT 20 09

Kimio Watanabe, Manager, Planning Group, Procurement & Logistics
Department
Akihiko Ayabe, Senior Manager, Personnel Group, Human Resources
Department
Kenichiro Fujisaki, Leader, Legal Group, Legal Department
Hirofumi Inoue, Sub Leader, Legal Group, Legal Department
Toshinobu Shiokawa, General Manager, Safety & Environment Office
Hiroshi Kobayashi, Global Warming Countermeasure Section, Safety &Environment Office
Tatsuhiko Atsumi, General Manager, Corporate Communications
Department
Kazuyuki Kawamoto, Manager, CSR Task Force, Corporate
Communications Department

Toshihiko Fujii

One Akiyama

Masaaki Kogure

President
Integrex Inc.

Ph.D., Sociology
Senior Researcher,
Institute of Prosocial Research

Director, Multilateral Trade System Department,
Ministry of Economy, Trade and Industry
Consulting Fellow,
Research Institute of Economy, Trade and Industry

Since last year, there has been asignificant change in the value
perception of businesses worldwide.
Emphasis is clearly shifting from shortterm profits to creating long-termvalue. The main focus no longer issimply the profit margin but theprocess of creating value. And thisprocess is what CSR is all about.
All members of a company, theentire staff, need to understand thecompany principles and what thecompany is aiming for. Therefore it isimportant to think about what CSR
means for any particular company. It
must be an expression of thecharacteristics of the company. Bysharing the same values and working
for the same goals, the various
departments of a company no longer
will operate in isolation, concerned
only with what’s best for them. Rather,
they will be working towards what's
best for the entire enterprise andwhat’s best for society. This is what CSR
activities should be all about.

I often point out that CSR could betaken to stand for “Rely,” “Satisfy,”
and “Consistency.” Without thesethree elements, there will be notrust, and without trust from thepublic and society, a business cannot
continue to exist.
In the case of a business-tobusiness company such as TDK, thenatural tendency may be to focus on
the immediate customer, but it isimportant to keep the fact in mind
that at the end of the chain there is
the end user.
Another important element for
the healthy development of acompany is to create a company
climate where staff can speak theirminds freely and where they candevelop and realize their potential
fully. Creating such a culture within
the company is the most important
CSR activity in my experience.

The concept of CSR originated indemands made by society, that is tosay it was externally imposed on theindustry. However, there are cases
worldwide where, in meeting theseexternal demands, the technologicaland organizational changes made by acompany led to their developing newmarkets and becoming morecompetitive. Engaging in CSR can beseen as a powerful strategic move on
the part of a company. CSR is not
merely a matter of attitude, rather it
implies that a company actively looks
forward and tries to identify andpredict issues that will become
important to society at large. This in
itself is an important management
aspect. In this sense, it must be
handled in a professional manner andrequires the establishment of a
dedicated department.

Responses from TDK

Seiji Enami
Director and Executive Vice
President,
TDK Corporation

This meeting made me realize anew theinterdependence between the very
existence of a business and CSR.
“When in doubt, do not look at shortterm profits but consider ‘what isbeautiful?’” With this advice from former
leaders of our company in mind, weshould not only respond to the short-term
requirements of our customers but also
look at the big picture. We need to clearly
realize what society expects of us, both
now and in future, and what we can do tofurther harmony and integration in ourorganization. These are the topics thatwill guide our activities from now on.

I believe that TDK so far has pursued avery down-to-earth policy with regard
to CSR activities, but I came to realizethat we may not have communicatedthis fully to our staff.
We need to spread the wordinternally, to make our goals clear, andthen pursue these activities in such a
way that they contribute to theorganization as a whole.

Junji Yoneyama
Corporate Officer
General Manager, Human Resources
Department, TDK Corporation

T DK C SR REPORT 20 09

16

Corporate Report

Corporate Report
By delivering imaginative products, technology, and services to be truly proud of,
TDK aims to build a relationship of trust among all of its stakeholders for mutual
beneﬁt. To realize this, we have built a management framework based on compliance,transparency, and soundness.

Economic Performance Report
Investor Relations http://www.tdk.co.jp/ir_e/index.htm

B u s i n e s s O u t li n e
The TDK Group has its origins in a company formed in1935 with the aim of adapting the magnetic material
ferrite to industrial use, for the first time in the world.
Based on the motto “Contribute to culture and industry
through creativity,” TDK has been engaged in research,development, and manufacturing of products forelectronics materials, electronics devices, recording
devices, recording media, and more.
In order to remain a vital company also in future,
we believe that the quest to find new approaches andnew solutions must continue. This will make it possible
for us to deliver true value to all our stakeholders,
namely our customers, suppliers, shareholders, local
communities, and our employees.

B u s i n e s s Re s u l t s
O ve r v i e w f o r F i s c a l 2 0 0 9
In the fiscal year ended March 31, 2009, the consolidated results of the TDK Group were as follows. Net
sales 727.4 billion yen (preceding term 866.285 billion
yen, representing a 16.0 % decrease), operating loss
54.305 billion yen (preceding term 87.175 billion yen
income), net loss before income taxes 81.630 billion yen(preceding term 91.505 billion yen profit), net loss
63.160 billion yen (preceding term 71.461 billion yen
profit), net loss per share 489.71 yen (preceding term
551.72 yen profit).

B u s i n e s s Re s u l t s O ve r v i e w by P r o d u c t s
The business activities of the TDK Group are divided into four sectors:
Electronic Materials, Electronic Devices, Recording Devices, and Others.

Outline of Sales by Product Group for FY2009
Elec tronic Materials

Elec tronic Devices

Contraction of 27.5 percent compared to theprevious term. Sales of capacitors, ferrite cores,
magnets for major main products declined.

Contraction of 20.5 percent compared to the previous
term. Sales of inductive devices, high-frequency
devices and other parts for major products declined.

Major Products

Major Products

Multilayer ceramic chip capacitors,
Ferrite cores,
Ferrite magnets,
Rare-earth magnets,
Clamp filters

Inductive devices,High-frequency devices,Power supplies,
Sensors, Actuators

Electronic Materials

Electronic Devices

145,111

166,164

23%

20%

Net Sales FY 2009

Tr a n s i t i o n o f m a j o r f i n a n c i a l i n d i c a to r s
Net Sales(Unit: million yen)

1,000,000
800,000

795,180

862,025

866,285

657,853

727,400

600,000
400,000
200,000
0

F05

F06

F07

Net Income (Loss)
80,00060,00040,00020,0000-20,000-40,000-60,000-80,000

70,12533,300F08(Unit: million yen)
71,461

44,101-63,160

59,83060,52379,590

F05

F06

F07

F08

F09
(Unit: %)
74.0

70.1

70

F05

F06

78.2

80

F07

F08

65

59.0

F05

T DK C SR REPORT 20 09

61.7

80.1

82.4

84.0

72.0

20,00010,000

F06

F07

F08

F09

F05

Japan

50,00030,00062.2

0Others168,892

23%

F09(Unit: %)

F06

F07

F08

Number of Employees

40,000& Ratio-54,30590

60,000247,233

34%

Ratio of Overseas Sales

65

Recording
Devices(Unit: million yen)
87,1757075

17100,000
80,00060,00040,00020,0000-20,000-40,000-60,000

75

80

55

Operating Income (Loss)

85

Ratio of Overseas Production

60

F09

(Unit: million yen)

(Unit: persons)Overseas
43,717

F09

49,82941,36555,857

Recording Devices

OthersContraction of 26.1 percent compared to the previous
term. Sales of suspensions for hard disk drives (HDD)
increased, but demand for HDD heads decreased.

Expansion of 38.0 percent compared to the previous
term. Sales of recording media, radio wave anechoic
chambers, and mechatronics declined, but sales ofenergy devices (secondary batteries) increased. This
includes EPCOS Group net sales of 67.983 billion yen.

Major Products
Heads for hard disk drives, Thermal heads,
Suspensions for hard disk drives

Major Products
Recording media, Radio wave anechoic chambers,
Mechatronics, Energy devices

27,613
9,502

10,206

10,24910,383

10,572

Mar./05

Mar./06

Mar./07Mar./08

Mar./09

T DK C SR REPORT 20 09

18

Corporate Report

Corporate GovernanceCorporate Proﬁle ➡ CSR Activities ➡ Corporate Governance http://www.tdk.co.jp/csr_e/csr01600.htm

Basic Concept ofCorporate Gover nance
We are keenly aware that a corporation is a social entity
and its existence is dependent upon all its stakeholders,
including shareholders, customers, suppliers, employees
and local communities. As a good corporate citizen, a
corporation must not only comply with laws, regulations and social norms, but also act justly and fairly inits dealings with society. We believe that it is importantto establish a corporate governance system that ensuresefficient and sound corporate activities in order to fulfill
our corporate social responsibilities.

Outline of TDK Management Systemstrengthen the functions of the Board of
1 To
Directors and strictly evaluate a Director’s
performance, the number of Directors islimited to seven, three disinterested outside
Directors are appointed, and the term of a
Director is set at one year.

TDK has established the below-mentioned management
system to maintain compliance, transparency andsoundness in conducting business operations and toachieve business objectives.

Infor mation Security

The Sarbanes-Oxley Act (SOX) is a U.S. law enacted in
2002 and aimed at achieving strict internal control. TDK
has been complying with its requirements by
establishing internal control systems across the entire
company based on the COSO control framework, and bycontinuously upgrading and improving these systems.
Since we have delisted our stock from the U.S. Stock
Exchange in April 2009, we will be changing over to theinternal control requirements of the Japanese Financial
Instruments and Exchange Act, Article 24 (which can beconsidered as the Japanese equivalent of SOX).
However, the internal control systems established forcompliance with the U.S. SOX Act will be retained andfurther strengthened within the group.

In July 2005, TDK established an information security
policy which forms the basis for our active engagementin this area. The main activities as listed below together
form our information security management framework.

• Exercise tightened control of data and otherinformation obtained from customers as well as
confidential business information• Operate Information Security Management System(ISMS) certified on December 2005, centered aroundTDK information system functions• Implement provisions of Japanese Personal
Information Protection Law (in full force since April
2005)

corporate officer system is adopted to
2 The
separate decision-making/supervising
functions from the operating function andenable rapid business operations.
Board of Corporate Auditors (five
3 The
Auditors in total) is established. Out of theOutline of TDK Corporate
Gover nance Organization

Compliance with SOX Act

five Auditors, three disinterested andindependent outside Auditors are appointed
to enhance the supervisory function for
operations.
Business Ethics & CSR Committee, the4 TheDisclosure Advisory Committee, theCompensation Advisory Committee, and theNomination Advisory Committee areestablished as advisory bodies to the Boardof Directors.

Enterprise Risk Management(ERM) Framework
To deal appropriately with possible risks involving its
business activities, the TDK Group has implemented an
Enterprise Risk Management (ERM) framework. We
established a Risk Management Committee reporting
directly to the Executive Committee and headed by an
executive vice president. In 2008, we began a companywide drive to identify risks, in particular those that are
significant to business operations and the achievementof business objectives. The framework is aimed at
effectively containing and minimizing such risks.

e-Learning training sessions are held regularly in order topromote proper awareness of information security among all
staff members.

TDK Corporate Gover nance Organization

Infor mation Security Management Framework

General Meetingof会
Shareholders
株主総Representative(President)

Business
Ethics・&CSR
CSR Committee
企 業 倫理委員会

Board取締of Directors
役会

Board of Corporate
監 査 役会 Auditors

Accounting
Auditor
会計 監 査人

Information
Security Chief
Officer

Corporate Officer

Information Security
Management
Supervisor

Japan (Main Company/Subsidiaries)
Overseas Subsidiaries

Information Security
Supervisor(Head) (Deputy)

Promote the TDK Code of Ethics
Disclosure
Committee
情 報開Advisory
示 諮 問委員会
Review and investigate important disclosure documents

Corporate
監Auditors
査 役室 Office
Chairman会長

Secretariat
事務局

Japan (Main Company/Subsidiaries)
Overseas Subsidiaries

Compensation
Advisory
Committee
報酬 諮
問 委員
会
Advise on compensation matters for board
members and corporate officers
Nomination
Committee
指名Advisory
諮 問 委員会

Information Security Administrator
Information Security Personnel

President
社長
Internal Audit Team

Advise on appointment of board members
Risk Management
Committee
リ ス ク 管理 委
員会

Executive
経営Committee
会議

Crisis Management
Committee
危機 管 理 委員
会

Information Security
Task ForceIT Subgroup

Information Security IT Personnel(Selected from Information System Division)

Management経
Review& Support
営監
査 部Department
Corporate
執行 役Officer員

In charge of internal auditing

Personal Information Protection Subgroup
Subsidiaries with Privacy Mark accreditation
Staff in charge from main company departments

Business
Divisions
各 事 業部・ &グGroup
ルーCompanies
プ会社

19

T DK C SR REPORT 20 09

T DK C SR REPORT 20 09

20Social ReportSocial Report
The TDK Group exists thanks to its stakeholders.
We are constantly thinking about what is expected of us, and how we can deliver evenbetter value. We will continue our quest for a mutually beneﬁcial relationship with all our
stakeholders.

Customer Relations
Corporate Proﬁle ➡ CSR Activities ➡ Customer Relations (Quality Assurance) http://www.tdk.co.jp/csr_e/csr02100.htm

TDK Qualit y A s sur ance
TDK strives to consistently deliver products that truly
impress customers through their quality. This means that
customer expectations are not only met but regularly
exceeded, both with regard to the products and theservices that we provide. The key to achieving this goal liesin the quality of our organization and of our humanresources. In order to continuously refine and improvethese, we enthusiastically engage in the following
activities.
Systematic Quality: Activities to constantly assess andrefine our organizational structures which are at the very
core of quality assurance. Using IT tools to make processes
transparent, such as when working out productdevelopment roadmaps and compiling database records ofpast problems.
Human Resource Quality: Company-wide meetings ofmanagers responsible for quality assurance, newslettersand training programs to widely disseminate knowledge ofthe best practices approach, and other quality drive
activities are carried out to foster a thoroughly qualityoriented outlook. This extends to staff members involved
in all processes of the company, including development,
design, manufacturing, sales, and distribution. At the sametime, we are incorporating quality related feedback from
customers and from the market into our activities.
Based on our wish that future generations may live insafety and comfort, we are adopting the user perspective
and always aim to create and deliver reliable products thatare environment-friendly and that generate true customer
satisfaction.

Basic stanceConsistently create products that thrill customers through quality
Realizing the basic stanceGoals• Bring out products that exceed customer expectations also from thequality angle and that are at true industry leaders in product quality.
• Create products that are environment-oriented and thateliminate problems related to legally restricted materials.

Systematic
Quality
仕 組 み の Quality

21

T DK C SR REPORT 20 09

Human Resource
人のQuality
Quality

Sy s t e m a t i c Quality

H u m a n Re s o u r c e Q u a li t y
Quality engineers and technicians of course play a leadingrole in quality assurance activities. Their operations are
divided into three major categories as depicted below. In
order to consistently create and deliver high-quality
products, a deep-rooted company culture must be sustainedby skills that are constantly updated and improved. We arealways aiming at skill improvement and are training
specialists in the respective fields.

TDK obtains the results of supplier evaluations as completed
by its customers. The evaluation ranks the different levels ofcustomer satisfaction, with an “A” indicating that thecustomer is fully satisfied. TDK keeps track of changes in thepercentage regarding the A rank, and passes this information
to the relevant division responsible to improve CS.

Fostering and improving the skill level of quality engineers

TDK maintains a database of product-related complaints
filed by customers both in Japan and overseas.
Information is sent online to the involved departments
without delay, so that swift action can be taken to
improve CS. In addition, this system is designed toautomatically send significant complaints to top
management.

Company
thatconsistently
creates
products
高品 質 のculture
製品 を
継 続的
に 生 み出し てhigh-quality
いけ る 風 土・文化
Quality風土
engineers
sustaincompany
culturein three・ 文 化を担 うthis品質
技 術 者の条 件 areas
3 つの

TQS 9000 – Our Proprietary Quality Standard
The TQS 9000 standard is the result of merging the unique
TDK quality management system with the ISO 9001
international standards. Guidelines were established inorder to ensure uniformly high quality levels in all of ourbusiness divisions. The status of operations is constantly
checked and diagnosed according to TQS 9000. The results
inform our ongoing drive for further improvements, madepossible by the lateral organization of the Quality
Assurance framework.

Design review at each stage of new product development
Before any new product is launched onto the market, a varietyof quality assurance measures are taken. Above all, design
reviews are an indispensable step to realize high quality. Not
only do these reviews identify individual problems at eachstage of development from conception to the final trial
production stage, they also prevent any quality-related
problems ahead of the product entering mass production. In
principle, design reviews entail the involvement not only of the
Design and Development departments, but also the Quality
Assurance Department and other concerned sections of thecompany. Rigorous design reviews are followed by repeatedtrial production and evaluation to methodically solve potential
problems. The initial production control* phase then follows,
and new product development is only considered complete
once all of these stages have been successfully completed.

Supplier Evaluation Information

Quality design
品質
設 計 技術
technology
最適な品質設計
Ensuring
properquality design

Quality evaluation
品質 評 価 技術
technology
製 品評価、解析のEvaluating and analyzing products
独 自技術の構築
using
proprietary techniques

Quality management
品 質 管理 技 術
technology

行程を安 定させ、Establishing stable processes
ばらつき
を低減
and
reducing tolerances

Comment from a quality engineer
As a quality engineer, my daily work involves thedevelopment of methods for evaluating the reliability of
new products. This is aimed at producing high quality
output and trying to prevent problems before they
happen. I try to go to actual production sites as often as
possible, in order to see conditions for myself and tocommunicate with the engineers and staff there. I believethat sharing information in thisway helps us develop bettermethods. At the same time, we
also apply trial and error
techniques in order to improvethe efficiency of productevaluation. I will continue to
strive for even better and moremeaningful evaluation methods,
Quality Assurance Department
so that we can meet the highexpectations and justify the trust Reliability Evaluation Analysis Group
Reliability Technology Sectionthat customers are placing in us.
Katsuyuki Suzuki
The end result is bound to behigher customer satisfaction.

Product-Related Complaints

CS Evaluation
In order to become the supplier of choice for ourcustomers, our sales staff members make sure that they
understand the needs of our customers. TDK makes
every effort to improve CS by quickly understanding thedetails of customer complaints, and providing feedback
to the relevant divisions so that they may take necessary
remedial action.

Comment from a sales staf f member
In my work in sales, I talk with customers every day andalways try to find out what their needs and expectations
are. This is important because it can lead to new proposals
and projects. It is not always easy to meet customer
expectations, but by working together both with ourclients and with the various departments in our company,
problems can be overcome. When I find that I have beenable to build a relationshipbased on trust, I feel rewarded in
my work. Also in future, I want
to be able to offer customers not
only product quality but also
added value. It’s simply great
when we get feedback suchas “We are really happy that wewent with TDK.”Electronic Components
Sales & Marketing Group
Sales Division 2

Tomoharu Furukawa＊Initial production control: For a certain period after the start of mass
production, a special control system is applied in order to detect latent or
potential quality problems. The system is aimed to prevent problems fromdeveloping or spreading by providing early and effective solutions.

Product
Planning Review
商品企画審査Design Reviews in Concept
開発構想段階の設計審査
and Development Stage
Design Reviews in Design
設計試作段階の設計審査
and Experimental Stage

Design
Review at Final Stage
最終段階の設計審査
Quality
Approval
品質認定

Market trend research, comparisonswith other companies’ products
Feasibility studies for new product development; quality
standards conformity examinations; examination of productliability prevention (PLP), EMC, safety standards, andrelevant laws; patent and product assessment examinations
Defined quality standards conformity examinations
for prototypes; reliability and safety examination;patent and product assessment examinations
Defined quality standards conformity examinations for final
prototypes; patent and product assessment examinations;production preparation status examinations
Examination and approval of new
products by QA personnel

Production
生産

Initial product approval; initial production
control; mass-produced products check after
new product approvalMarkets
市場

Customer feedback; customer satisfaction
survey; immediate measures for solving any
quality problems

CS (Customer Satisfaction) Activities
Related to Electronic Components
TDK supplies electronic components as a flagshipp r o du c t lin e n o t o nl y t o e l e c t r o ni c d e v i c e s e t
manufacturers directly linked to end consumers, but also
to electronic assembly manufacturers and component
manufacturers. In doing so, TDK makes every effort toensure customer satisfaction (CS), through the threeavenues as follows, and strives to achieve generalsatisfaction, encompassing quality, cost, delivery,
environmental efforts and services, in order to become
the company of choice for potential customers.

Customer Recognition of TDK Quality
Some examples of customers recognizing our qualityoriented operations are mentioned below. This kind ofrecognition is an incentive for our ongoing drive tofurther improve quality levels.
• NEC Corporation Carrier Network Business Unit,
Mobile Network Operations Unit:
Received “FY2008 Excellent Supplier Award”• NEC Wireless Networks, Ltd.:
Received an award for seven semiannual terms in a row

T DK C SR REPORT 20 09

22Social Report

S u p p li e r Re la t io ns

C SR a n d P r o c u r e m e n t

Corporate Proﬁle ➡ CSR Activities ➡ Supplier Relations http://www.tdk.co.jp/csr_e/csr02200.htm

P u r c h a s i n g Po li c y
Under its “Global Partnership Purchasing” principle,
TDK strives to build strong relations with suppliers on awin-win basis that benefits both sides. Global Partnership Purchasing means that TDK not only has manufacturing bases in Japan, the rest of Asia, as well as inNorth America and Europe, we also build our supplier
network with a global outlook. Close collaboration withquality-oriented suppliers allows us to speedily develop
the products that our customers need, and to ensurethat these products are up to our high standards forcustomer satisfaction.
Based on these principles, we actively pursue thefollowing objectives.

Global Partnership Purchasing Principle

Supplier Partnership System

TDK ʼ s Purchasing Principles
Green Procurement

VA* Activities

All applicable laws and regulations
are followed in purchasing activities. Moreover, TDK strives not only
to follow the letter of the law, but
its spirit as well.

As one aspect of its company wide
environmental protection activities
and in the pursuit of harmony withthe global environment, TDK
engages in green procurement, i.e.,
the purchase of environmentconscious products.

TDK recognizes suppliers that canlower costs and provide newmaterials and technologies throughVA activities.

TDK respects the human dignity ofworkers who are active in all stagesof the supply chain.

CSR
The procurement divisions of the
TDK Group implement CSR activities
on a continuous basis, while
performing evaluations of suppliers
at regular intervals using the CSR
Check Sheet, to promote understanding of our CSR concept andraise recognition of our initiatives.

Fair and Open Business
TDK conducts fair business regardless of company size or nationality.
TDK bases its purchasing decisions
on comprehensive evaluations ofquality, price, delivery time, ability
to provide a stable supply, andother factors.

Partnership

IT Utilization
Information exchanges with suppliers using IT and networks are
essential for accelerating the paceof business and reinforcing ties.

Quality, Delivery Time and Stable Supply＊VA: Abbreviation of “Value Analysis,” often used in a similar meaning as “Value Engineering” (VE). Describes a new
methodical approach to reducing costs, formulated in the U.S. in 1946. Product value is analyzed from various angles
in order to obtain the desired functionality while minimizing the cost of materials and resources.

As a rule, supplier evaluations are carried out once
every three years, in order to ascertain that therelationship is sound and should be continued. This isbased on a diagnostic approach. First, the supplier is
asked to provide self-evaluation on 89 items, divided
into the categories “Chemical Substances*,” “Quality,”“Cost,” “Delivery Time,” “Environmental Conservation,”and “Management.” After receiving the responses, ourstaff members visit the supplier and carry out their own
evaluation. If any problems are detected, we provide
proposals for corrective actions and required action
items, in order to work towards a solution.

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T DK C SR REPORT 20 09

Business Information
Basic Agreements Memorandums
Delivery Contracts Green Procurement Standards
Payment Method Notices Others

CSR Check Sheet
Divisions

Overseas
Sites

Supplier Evaluation

Business
Partner

Bulletin Board
Mail Distribution Conﬁrmation

Distribution/Acceptance Management (General)

Procurement Speciﬁcatio
ns Issue/Acknowledgement

TDK always considers quality,
delivery time and stable supply by
establishing solid partnerships with
its suppliers.

TDK seeks to build mutually
beneficial relationships with
suppliers based on shared goals.

S u p p li e r E v a l u a t i o n s

TDK Group
Materials
Divisions
TDK
Head Oﬃce＊Supplier Partnership System:
A web-based system for consolidated
management of business information,
distribution of procurement specifications, and shared management of contracts and other data which conventionally were kept as paper-based documents or stored on magnetic media.
This enables the implementation of
speedier and more efficient businessprocesses.

TDK Web Server
Contracts

Compliance

Respect for Human Dignity“CSR Procurement” as described in the TDK Purchasing
Policy represents an important aspect of our
procurement activities. Because we are a manufacturerof parts and components, we implement CSR from thepoint of view of a supplier. Similarly, we expect our
suppliers and business partners to meet their CSR
obligations as well. A supplier meeting held in
September 2007 stressed the importance of CSR andpromoted a thorough understanding of the concept
among all participants. We also aim for recognition ofand cooperation with our CSR initiatives.
Under the “Supplier Partnership System*,” weobtain responses using the CSR Check Sheet. The checksheet comprises 48 points which were selected fromamong 342 items in the Supply Chain CSR Promotion
Guidebook published by the Japan Electronics andInformation Technology Industries Association (JEITA).
The points are mainly related to the areas of humanrights and labor relations, safety and health, as well as
fair trade and ethics, which are of special concern to us.
In order to raise awareness and provide the motivation
for active involvement, the check sheet is designed sothat results are shown directly on screen when
responding to a question.
As of the end of March 2008, about 2,300 business
partners in Japan and about 1,100 business partners
overseas had provided responses. In future, the results
are to be shared among TDK and its business partners,in order to jointly work out action plans for making
improvements.

In 2008, TDK evaluated 184 supplier companies inJapan and 146 companies overseas.
＊Survey items for chemical substances are based on the “TDK Green Procurement Standards.”
The standards are available at the following URL. http://www.tdk.co.jp/proc_e/pro30000.htm

Green Purchasing
In April 1999, we formulated our Green Procurement Standards. Basedon these standards, weinvestigate the environmental management
practices of suppliers
and the environment
friendliness of materials
to be purchased, thereby
promoting our green
purchasing efforts. In
February 2004, in an effort to adhere to various environmental measuresaround the world, such as the Restriction of Hazardous
Substance (RoHS) Directive, as well as to better meetcustomer demands, we revised our Green Purchasing
Standards and put them on our web site.
We issued our Green Procurement Standard Ver. 6
in June 2009 and have distributed the standard to all
our suppliers. Materials to be purchased are evaluatedin three categories: chemical substances, parts, andpackaging materials. The revised Green Procurement

Standard Ver. 6 specifies items to be examined.
In consideration of the accuracy and effectivenessof the self-evaluation checks of our suppliers, and incompliance with the Joint Industry Guide (JIG), theresult of an agreement among the industry groups ofJapan, the United States, and Europe, 34 chemical
substance groups are investigated in the evaluation,
namely 24 Level A prohibited substances and 10
controlled substances.
Our purchased material master datasheet is linked
to data conforming to our green procurement
standards, to ensure that none of our products contains
any hazardous substances.

Fu t u r e Ta r g e t s
Along with the consolidation of our strategic
management objectives, the number of business
partners will also undergo a change. We are making
preparations to promote extended cooperation with ourpurchasing policy and principles also among the business
partners of the TDK Group companies. This is intended
to ensure that purchasing activities throughout thegroup are optimized with the cooperation of all parties.

T DK C SR REPORT 20 09

24Social Report

Employee Relations (Employment and Human Resources)
Corporate Proﬁle ➡ CSR Activities ➡ Employee Relations (Employment and Human Resources) http://www.tdk.co.jp/csr_e/csr02300.htm

such as determination and will power, internal strengthand sense of mission, and improved viewpoints.
Beginning in fiscal 2010, three-way discussions
between participants, members of management, andseminar lecturers are also implemented. Also after thecourse is finished, training at the workplace is slated tocontinue.

Plan in the second half of fiscal 2008 as a new initiative
to further promote these efforts and to recruit andutilize diversified human resources. Diversity Promotion
committees have been established in each division,leading company-wide campaigns to provide more
opportunities for female employees and retired workers.
＊ As for the details of TDK Code of Ethics, please refer the following URL.

http://www.tdk.co.jp/teaaa01/aaa06000.htm

B a s i c Pe r s o n n e l Po li c i e s
We regard our employees as one of our mostimportant assets for achieving the corporate motto.
Our basic principle concerning personnel holds that thedevelopment of human resources is the source of true
prosperity for the company. We are therefore
promoting a variety of measures aimed at creating anenvironment and mechanism wherein we respect each
employee’s individuality, and each employee canspontaneously expand his or her abilities and potential
to the greatest possible extent.

• Foster and improve the potential of each and every employee• Foster independent thinking and a sense of involvement• Strengthen the channels of communication between superiors and subordinates
Employees

Superiors• Set own potential development targets• Define own professional goals• Provide backup for reaching goals

Comments from participants

Designated support leader seminar, May 2009
“It was good being able to talk with colleagues aboutsome of the problems we are facing.”“The group discussion was highly informative, because I
could hear the opinions of other support leaders.”“The comments by others in the group discussion mademe see things in a new light.”

Developing Self-Sustained Human Resources
What we aim for• People who have vision and demonstrate creativeand constructive powers• People who have courage and take the initiative
when confronting problems• People who are trustworthy and possess a spirit ofhonesty and service

Employee Dat a
Non-consolidated and consolidated employee numbers (by gender)
Non-consolidated employee numbers: male 4,744, female 734, total 5,478
Consolidated employee numbers: 66,429

Employees by region
RegionNumber of Employees

RegionNumber of EmployeesJapan

10,572

Asia (excl. Japan)

46,556

U.S.

2,802

Europe

6,499

Total

66,429Overview of TDK ʼ s Personnel System
The evaluation and compensation system that forms thefoundation of our personnel system is based on a selfmanagement system, which focuses on discovering
talent and achieving results. Our self-management
system is not merely an evaluation system, but a system
whose main purpose is to increase each individual
employee’s abilities, self-determination and sense ofparticipation. The system also aims to improve
communication between employees and their superiors.

(Programs to Develop and Cultivate Abilities)

Our goal of human resources development is nurturing
such self-sustained employees. A self-sustained employee
is defined as someone who is conscious of problems andattempts to find the best solution, someone who actively
takes on difficult challenges and is able to cope withchanges, someone who pursues their vision to the fullconclusion. TDK’s programs to develop and cultivate
abilities include training programs tailored to every levelof employment, and training for prospective leaders,aiming at acquiring knowledge on how to become selfsustained in their work in stages starting from newly
hired staff. We also have specialized education programson professional expertise required for each position, suchas technology, quality control and patents, postingsoutside the company; training for those to be stationed
abroad and language training; and a capability
development support system (incentive system forcompleting certification and correspondence education).
Selective training programs include IMD (International Management Development) Seminars aimed attraining manager candidates for overseas subsidiaries,
the Innovative Leader Development Forum for fostering
young leaders, and the “Soshunjuku” and “Zohaku-juku”
programs designed to groom candidates for nextgeneration management. The “Zohakujuku” program
was revamped in fiscal 2009, extending the program
period from one to two years. New content was added,
focusing on essential qualities for management leaders,

TDK Talent Development and Training Programs
Training
programs on
different levels

・Leadership development training
・Follow-up training for new project leaders
・Project leader candidates

assessment training

・New administrator training
・Mid-level employee career・Practical sales training
・Designated support leader program
・New employee training
・Pre-hire employee training
・Training for newly hired

employee with prior experienceplanning program・Third-year training

・Training programs on different levels for
employees of affiliated companies

Training forprospective leaders

・“Zohakujuku”
・Innovative leader development

・“Soshunjuku”
・IMD training

Specialized
education
programs

・Overseas supervisor training
・Department specific training

・Overseas posting preparatory

Talent development support andqualification support programs

・System of incentives for obtaining

・Overseas study program

forum(Development/Intellectual Property/
Quality/Sales/Materials/Accounting)professional certification
・Correspondence courses

training

・Craftsmanship training
・Language training＊ As for further information of main training programs, please refer the web site.

25

T DK C SR REPORT 20 09

Organizational Structure for Maximizing
the Potential of Each Employee (Human

Resources Organization)

TDK has a number of systems in place which are geared
to helping each and every employee discover anddevelop their true potential.

• Active In-house Hiring System• Career Option System• Self-Determined Reporting System• Annual Salary System for Project Managers• Bonus for Contributing to Important Themes• Free Time and Flextime Systems

Numbers of Employees Taking Child Care Leave and Caregiver Leave (TDK)
Employees taking child care leave Employees taking caregiver leave
30

0Note: FY 2009

Comment from an employee about the childbirth/child care support system
Using the paid leave, maternity leave, and child careleave opportunities, I took over a year off work.
Currently, I am still starting work 30 minutes late andend 30 minutes early, so that I can take my child to childcare and pick her up again. I knew about the TDK
system already from the time I joined the company andhad imagined that I would return to work if I had child,
but when I actually was in the situation, the decision
was not an easy one to take, because I had to consider
the burden on my family.
The most important thing in making use of thesystem is the understanding of one’s superiors as well as
cooperation by colleagues andfamily members. I kept in touchwith my colleagues also during
the time I was on leave, which
eased the transition when I
finally returned to work. In using
the system, I realized again theimportance of maintaining
proper communication with
Electronic Components
people around me, letting them
Sales & Marketing Groupknow where I stand, in order toAdvertisement Planning Department
ensure that everyone is on the
Naomi
Shimokurasame page.

＊ As for further information of each system, please refer the web site.

Hiring People with Disabilities

Respecting the Individual and Providing a
Worry-Free Work Environment
Efforts to Respect Human Rights and Equal
Opportunity–Diversity Action Promotion Plan–
In 2002, we established the TDK Code of Ethics* to serveas an important acting principle for both employees
and members of management to follow. Respect forhuman rights is an important element of this code.
We have undertaken a number of specific efforts
to respect human rights and ensure equal opportunity,
including efforts to educate and enlighten employees,
the establishment of a special telephone “help line” forconsultations, and various systems related to child careand caregiver concerns (including child care, the careleave system, and a system permitting reduced working
hours). We introduced the Diversity Action Promotion

The percentage of employees with disabilities at TDK
was 1.68% for fiscal 2009, which unfortunately fellslightly short of the legally required level. Providing
employment opportunities for persons with disabilities
is an important concern of TDK, and we are
implementing a number of plans for concrete action, tocreate suitable workplaces and set numerical hiring
targets.

Percentage of Employees with Disabilities (TDK Parent Company)
（%）

1.9

1.85
1.88

1.8
1.7

1.82

Legally required
percentage
1.68

1.74

1.6
1.5

’05

’06

’07

’08

’09（FY）

T DK C SR REPORT 20 09

26

Social Report

Employee Relations (Safety and Health)Corporate Proﬁle ➡ CSR Activities ➡ Employee Relations (Safety and Health) http://www.tdk.co.jp/csr_e/csr02400.htm

TDK Safety and Hygiene Charter
The TDK Safety and Hygiene Charter was enacted inJuly 2003 and applies to every organization in the TDKGroup throughout the world. The basic philosophy
underlying the charter is outlined as follows: “In orderfor employees to perform their duties under the best
conditions, the TDK Group recognizes that ensuring asafe and sanitary workplace environment is an
important management issue, and it shall implement
action with everyone’s help toward the realization ofsuch an environment.”

Transition of the Occurrence of Accidents in the Workplace (Japan)（Number of accidents）

26
21

TDK has established an Occupational Health and Safety
Management System (TDK OHSMS) as an effective way
to reduce latent risks and hazards at the workplace andcreate a safe and healthy work environment. Thissystem is also seen to contribute to efficiency andproductivity and to enhance product quality. It has been
implemented at all TDK sites in Japan.
The Safety & Environment Office playing a leadingrole in the system, as well as several of our plants(Mikumagawa Plant, Shizuoka Plant, TDK Sagara) haveobtained OHSAS 18001* certification. 12 overseas sites
also have obtained certification. (As of July 1, 2009)＊ OHSAS 18001: Occupational Health and
Safety Assessment Series created by aninternational consortium as standard
specifications for managing health andsafety in the workplace. The consortium
consists of standards associations andevaluation organizations in Ireland,South Africa, and Britain.
＊For a list of OHSAS 18001 certified sites,
please refer the web site.
http://www.tdk.co.jp/csr_e/csr05200.htm

Occurrence of Accidents at Work
The following graphs show trends in workplace accidents at TDK. In fiscal 2009, there were five workplace
accidents, three fewer than in the previous year. Only
two of these resulted in absence from work.

27

T DK C SR REPORT 20 09

21

20

19

10

8

0

’02

6
3

2

Promoting a Occupational Health and
Safety Management System (OHSMS)

Number of accidents leading
to employee absence

Total number of accidents

30

’03

’04

6

2

’05

3

0

’06

’07

8
5
2

2

’08

’09（FY）

Employee Health Management
To keep our staff healthy, we conduct physicalexaminations of employees on a regular basis. Furthermore, we have industrial physicians, health maintenance technicians, and dentists on staff at our major
locations, creating an environment in which employees
can address their health concerns and have dental
checkups on an everyday basis. Also, the employee
health insurance union has arranged for an outsideservice that offers telephone health consultations 24hours a day.
In the Akita region, the company is implementing a
Total Health Promotion (THP) Plan, mainly through its
health management centers. Through this program,which offers employees health guidance and exercise
programs tailored to their individual needs, we areboosting awareness of health-related matters, such as
the importance of exercising and leading a healthy
lifestyle.

Shareholders and Investor Relations
Investor Relations http://www.tdk.co.jp/ir_e/index.htm

Basic Policy on Disclosure of Information
The TDK Group maintains fairness and transparency
through timely and accurate disclosure of certain
information that is demanded by the general public,
except confidential information. The TDK Group shallmake efforts to identify types of information that are
demanded by each group, including shareholders,investors, customers, suppliers, or employees. The TDKGroup shall attempt to respond to any inquiries
through the Corporate Communications, General
Affairs, Sales & Marketing, Procurement and otherrelated divisions in a fair and sincere manner.

Active Promotion of Investor
Relations Activities
In consideration of the objectives of its IR activities, we
believe that we must provide capital market
participants (including shareholders, investors, andsecurities analysts) with accurate information that fully
responds to their needs. This includes management
strategies and business policies, among others.
To this end, we hold financial and other briefings,
providing management with the opportunity to engage
in direct dialog with capital market participants.

Note: From Chapter 2, Corporate Standards of Business Conduct, TDK Code of Ethics

Overview of IR Activities
Objectives of Investor
Relations (IR) Activities
The objectives of TDK’s investor relations (IR) activities
are to develop long-term relationships of trust withstakeholders by fulfilling our responsibilities not only toshareholders, who have entrusted administration of thecompany to management, but also to all otherstakeholders including investors and analysts throughthe faithful and fair disclosure of information, as well as
to obtain their confidence and regard through bilateralcommunication.
In order to pursue these objectives at all times, we
continuously disclose necessary information andconduct investor relations activities in such a mannerthat third-party opinions are used to improve management.

Our IR web site seeks to provide business and financial
information, management strategies and other material
management information in an impartial and easy tounderstand manner. Specifically, quarterly earnings
release conferences are relayed live or in recorded form
through the web site in both Japanese and English.
We also issue a variety of printed publications,
including the Annual Report that contains a message
from management as well as financial results, and theInvestors’ Guide containing financial information forthe past 11 years. These documents are issued annually
in both Japanese and English. We also regularly issue
the TDK TODAY newsletter which is mailed to ourshareholders.

Mental Health Care
Besides regular health management, we take an active
interest in mental health issues, a subject that has
become a focus of social concern in recent years. Since
fiscal 2009, we have implemented a “return to theworkplace support program” which includes measures
to facilitate rehabilitation and enable a smoothtransition for returning employees.
Also, to make counseling more accessible, we haveestablished mental health consultation centers staffedby specialists at major locations, and we hold periodic
seminars for employees concerning mental health.
TDK will continue to conduct stress checks andmental health related training programs for its
employees.

Web site

Annual Report

Investorsʼ Guide

TDK TODAYT DK C SR REPORT 20 09

28

Social Report

Local Community Relations
Corporate Proﬁle ➡ CSR Activities ➡ Local Community Relations http://www.tdk.co.jp/csr_e/csr02700.htm

Sports, Art and Culture Activities
TDK strives to be an “exciting company,” capable ofproviding quality and excitement to stakeholders. TDK

provides support in inspirational sports and art activities
that uplift people’s hearts.

Basic Concept of Contributing to Society
TDK, recognizing its responsibility to act as a corporate
citizen in harmony with the rest of society, promotes

unique community activities aimed at contributing tosociety in a meaningful way.

Sponsorship of World Championship in Athletics

Principle
Based on TDK’s corporate motto of “Contribute to culture and industry through creativity,”
the TDK Group aspires to foster the developmentof a healthy and prosperous society by implementing various activities
in which all TDK employees can feel committed and connected to the community.

TDK has been an IAAF Official Partner of
men’s bibs since the first IAAF WorldChampionship in Athletics, held in Helsinki,
Finland in 1983. It has been decided tocontinue this sponsorship until 2019.

Baseball lessons for high school students

In November 2008, TDK organized a special
mini concert by five wood wind players of
the Berlin Philharmonics Orchestra at a
Junior High School in Roppongi, Tokyo.
Members of the school's wind orchestra wereeven able to play together with the visiting
virtuosos.

In January 2009, the TDK Baseball Club helda practice session for baseball club members
from high schools in the Shonai region of
Yamagata Prefecture. 36 students from 8
schools received training and instruction
from six TDK club members.

The TDK Group will utilize its various resources (employees, products, capital, information, etc.)
to globally implement proactive community activities—both alone and working alongside NPOs and NGOs—that contributeto the betterment of society in the areas of (1) academic, research, and education,(2) sports, art, and culture, (3) environmental conservation,and (4) social welfare and local community service activities.

TDK is engaged in R&D activities to provide productsthat make people’s lives more convenient. But we also
work earnestly on various environmental conservation

Academic, Research and Education Activities
wishes to offer opportunities for young people who willlead the next generation to acquire a wide range ofknowledge, experiences, and skills.

Applying fertilizer to TDK Beechwoods(TDK sites in the Akita area)(Osaka Branch Office)

120 TDK employees helped to plant 600 treesin Thailand’s Lop Buri Province in June 2008,
to reduce the risk of flooding from a dam.

In June 2009, about 100 TDK Group employees participated in applying fertilizer andweeding the “TDK Beechwoods” located near
Mt. Chokai in Akita Prefecture.

Since fiscal 2007, staff members have been
carrying out clean-up activities in the vicinity of
their office on certain days for about 30
minutes before starting work. During fiscal
2009, this was done eight times, with a
combined total of 135 persons participating.

“Career Day” at a primary school(TDK Components U.S.A., Inc.)

Plant visit by primary school students

Since fiscal 2008, we have been conducting
hands-on workshops for primary and juniorhigh school students. In fiscal 2009, thesewere held both in the summer and thewinter holidays, offering the opportunity tobuild IC radios and miniature cars poweredby solar cells. About 260 students have so far
taken part in the workshops.

In March 2009, employees of TDK Components in the U.S. State of Georgia visited a
local primary school on Career Day, giving apresentation to the students about theirwork, about the recycling and power saving
efforts of their company, and about how thecompany complies with various regulations.

In November 2008, fifth graders from thelocal Okubo primary school paid a visit to thefactory as part of their “Learning aboutIndustry” class, to see for themselves how
our products are made and how they are
used.

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T DK C SR REPORT 20 09

Midosuji cleanup campaign

Social Welfare and Local Community Service Activities
TDK conducts its business activities on a global basis. We
endeavor to apply our resources in a positive mannerElectronics workshop

activities to contribute to the harmonious coexistenceof society with the global environment.

Tree planting session(TDK (Thailand) Co., Ltd.)(TDK History Museum)(TDK Baseball Club)

Environmental Conservation Activities

Policy

TDK is willing to return the profits of its activities tolocal communities by utilizing our accumulated producttechnologies and human resources. Specifically, TDK

Bringing the worldʼs greatest orchestras andstudents together (TDK Outreach Mini Concert)and provide help in overcoming various challenges inlocal communities, in order to realize a better society.

(TDK Ujo Corporation)

Making heliport available for medical
emergency helicopter (Mikumagawa Plant)

Blood donation drive (Magnecomp

Environment topic meeting with local citizens

Since autumn 2008, the helicopter takeoff/
landing facility within the site is being madeavailable as a heliport for medical helicopter
services. This is used not only in emergencies
but also when patients require transport to
medical facilities with special equipment.

Starting in 2003, TDK has been conducting a blood
donation drive four times per year on its site, for the
benefit of the Red Cross Society of Thailand under
the cooperation of the Ayutthaya Red Cross. About
85 employees donate blood each time. So far, morethan 400,000 cc of blood have been collected.

In December 2008, a meeting about environmental topics was held for residents of thelocal Nishiyashiki area. 12 participants were
given an overview of the plant and its
products, and received detailed information
about the handling of industrial waste.

Precision Technology Public Company Limited)(Asama Techno Factory)

T DK C SR REPORT 20 09

30

E n v i r onmental Repor t

Environmental Repor t
TDK has established the TDK Environmental Charter, consisting of the Basic Principle
on the Environment and the Basic Policy on the Environment, as our entire groupʼsenvironment policy, aimed at the sustainable development of society. In line with theCharter, TDK formulated the TDK Environmental Action 2015 plan as a fundamental
framework for implementing speciﬁc environmental activities.

Environmental Policy and Environmental VisionCorporate Proﬁle➡CSR Activities ➡Environmental Policy and Environmental Vision http://www.tdk.co.jp/csr_e/csr03100.htm

TDK Environmental Charter
This environmental charter applies to every organization in the TDK Group worldwide.

Environmental Vision(TDK Environmental Action 2015)
TDK believes that a fundamental environmental plan
designed from a long-term perspective is necessary toachieve the sustainable development of society and arecycling-oriented society. In 2002, TDK therefore
formulated the “TDK Environmental Action 2010.” This plan
was comprehensively revised in December 2005,
incorporating new long-term goals and global development of our environmental activities. Now called “TDK

TDK
Environmental
Action2015

Basic Principle on the Environment
The TDK Group recognizes care for the global environment as an importantmanagement issue and is committed to help bring about a sustainable society
through the combined efforts of all of its members in all business operations.

Basic Policy on the Environment
Based on this principle, the TDK Group enlists the participation of all of its members
to carry out environmental protection activities quickly and effectively,
so that future generations may live in a healthier environment.

1 Build a framework for promoting activities to improve safety and hygiene, with

Until FY 2009
the Environmental
1 Improving
Management System
2 Preventing Global Warming
3 Managing Waste
4 Managing Environmental Risks
the Creation of
5 Promoting
Environment-Conscious Products

Environmental Action 2015,” the plan includes a new longterm roadmap with a distinctly global focus, and spells out
five specific objectives. Company-wide efforts to achievethese objectives are now in place.
By making annual reviews of action items and related
numerical targets based on past performance, TDK aims topromote environmental activities on an ever higher level.
From 2009, some of the action items were modified inorder to implement concrete activities at TDK sites with theenvironmental management system.

From FY

2010

1 Preventing Global Warming
2 Managing Waste
3 Managing Environmental Risks
External Environment
4 Conducting
Activities
the Creation of
5 Promoting
Environment-Conscious Products

clearly defined responsibilities, while the management shall provide necessary
management resources for the realization of this policy.

2 Contribute to society by creating and supplying the market with life cycle oriented
products and services.

3 Comply with local environmental rules and regulations in every region, establish
the necessary self-imposed standards for meeting regulatory requirements andmanaging chemicals, and improve the level of management.

4 Establish an effectively functioning environmental management system,
implement environmental policy, set environmental objectives and targets andcarry them out, as well as aim to reduce the environmental burden on acontinuous basis and prevent pollution.

5

Carry out regular environmental audits and continuously improve theenvironmental management system and environmental performance.

6 Disclose information on environmental activities to maintain appropriate
communication with local communities and society.

7 Actively participate in environmental activities run by governments and local
communities.

8 Review environmental policy, environmental objectives and targets, andenvironmental management system periodically and as necessary.

This Environment Charter is available for anyone if desired.

P ro t e c t i n g N a t u re a n d
Biodiversity
In order to make its products, TDK uses various metals
and oxides. These raw materials come from mineral ore
and other sources mined all over the world. As is wellknown, mining involves the risk of damage to theenvironment, including landscape damage, excessive
clearing of forests, changes in water sources, andpossible effects on ecosystems. Once damage has been
done to an ecosystem, it usually cannot be recovered. As
a manufacturer of components, we cannot simply stopusing raw materials, but we can try to mitigate adverse
effects. We do this by engaging in activities such as tree
planting, reforestation, water source protection, andmore.
We are also aware that our components are foundin many kinds of office equipment that use paper andthereby indirectly contributing to the use of tree
resources. This is why we attach particular importance totree planting and reforestation activities.
However, our components are also utilized
extensively in sophisticated video and recording

equipment. We believe that one of the basic humanaspirations is to record the beauty and mysteries ofnature, and the life of the plant and animal kingdom
around us. TDK therefore is engaged in various drives toprotect nature for future generations.
All staff members of our organization are aware of
the impact that industrial production inescapably has on
the environment. We think about the complex
interrelationship between business operations and theenvironment, and are keen to do our part in protecting
the global beauty of nature.
Note: For Major source of information on our nature protection activities, Please refer the
web site.
http://www.tdk.co.jp/csr_e/csr05300.htm

Established March 1, 1993 / Revised September 1, 2006 (version 4)

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32

E n v i r onmental Repor t

Ta rg e t s a n d R e s u l t s

T D K E n v i ro n m e n t a l A c t i o n 2 0 1 5 – F i s c a l 2 0 0 9 R e s u l t s

Corporate Proﬁle ➡ CSR Activities ➡ Targets and Results http://www.tdk.co.jp/csr_e/csr03200.htm

Objectives( F Y 2 0 1 0 a n d M e d i u m a n d L o n g Te r m O b j e c t i v e s a n d Ta rg e t s )Objectives

TargetGlobal• Reduce CO2
emissions by
4% or morefrom the FY
2006 levelJapan• Reduce CO2
emissions by 20%
or more from the
FY 2006 level

Global• Reduce CO2
emissions in
distribution(Set target for
March 2011)• Set reduction targets• Achieve
reduction
targets

Japan• Reduce CO2① Improve energy consumption peremissions by 3%unit of products by 1.0% or moreor more from theyear on year
FY 2007 level• Reduce CO2 emissions by 4% ormore from the FY 2007 level• Reduce CO2
emissions by 5%
or more from the
FY 2007 level

Global• Reduce total waste ① Maintain zero emissions
emissions by 3% or ② Improve outsourced recycling index • Reduce total waste emissions by 4%
by 1.0% or more year on year
more from the FY ③ Promote recycling to produce
or more from the FY 2007 level2006 levelvaluable resources• Reduce total
waste emissions
by 5% or morefrom the FY
2007 level• Reduce total waste
emissions by 3% or ① Improve outsourced recycling index • Reduce total waste emissions by 4%
more from the FY
by 1.0% or more year on year
or more from the FY 2007 level2007 level• Reduce total waste
emissions by 10%
or more from the FY
2007 level

Global• Reduce or① Implement measures forcontinue to containenvironmental risk management
environmental risks• Reduce or continue to containenvironmental risks• Reduce orcontinue to containenvironmental risks

Japan• Reduce
atmospheric VOCemissions by 30%
or more from the
FY 2001 level• Reduce atmospheric VOC emissions
by 30% or more from the FY 2001
level by FY 2011

• Reduce atmospheric
VOC emissions
according to newly
set targets (Targets
to be set in 2011)• Continue social contribution activities• Continue social
contribution
activities

Japan

（2）

Global• Strictly observe all laws ① Implement preventive management • Intensify implementation ofand regulations
based on self-managed standards
preventive management• Accommodate revision of Chemical ② Assess quantities of substances• Assess quantities of substances
Substances Control Law (Japan only)
requiring registration
requiring registration

Global• Implement productenvironment
management incompliance with
RoHS, REACH, andother international
regulations related
to chemical
substances• Strictly observe regulations related to chemical
Implement a chemical substances
substances in each country• Strictly observe
management database covering all steps （1）REACH regulation
regulations
from procurement to marketed product（2）Chinese Measures for the Pollution Control
related to② Implement green procurement inof Electronic Information Products (Chinesecompliance with REACH regulation
chemical
RoHS)
2nd
step
③ Promote use of alternatives and substitutes
substances in（3）Revised Chemical Substances Control Law
for substances with high environmental
each country• Update MSDS to 100% GHS indication
impact(compliance management)④ Update MSDS to GHS indication

GlobalGlobal• Disclose
environmental
information
on products
to fully meetcustomerrequirements

T DK C SR REPORT 20 09① Expand information disclosure and sales of• Disclose environmental information on products to fully

meet customer requirements
Eco Love products② Disclose information about Substances of（1）Disclose information about Substances of Very HighVery High Concern (SVHC) in accordance withConcern (SVHC) in accordance with REACH regulation
REACH regulation③ Comply with environmental load information （2）Comply with environmental load information
disclosure in accordance with EuP Directive
disclosure in accordance with EuP Directive④ Participate in information propagation（3）Ensure full participation in common industry platforms
activities in the industry
for information disclosure• Promotereduction ofenvironmentalload during life
cycle of product• Disclose
environmental
information on
products to fully
meet customer
requirements（1）

Procurement(Suppliers)

（3）

Sales
(Customers)

Results

Global• Reduce CO2 emissions① Improve energy consumption per unit ofby 3% or more from theproducts by 1.5% or more year on year
FY 2006 level

CO2 emissions increased by 10.1% from the FY
2006 level(3.8% increase from the FY 2008 level)Japan• Reduce CO2 emissions ① Improve energy consumption per unit of products by 2.0% or more year on
year (1.0% or more reduction year on year in fixed energy consumption)
by 1% or more from the② Reduce fixed consumption by improving production methods and facilities
FY 1991 level

CO2 emissions increased by 5.9% from the FY
1991 level(5.5% decrease from the FY 2008 level)

Global• Reduce CO2 emissions
in distribution

Japan• Reduce CO2 emissions① Improve energy consumption per unit ofby 2% or more from theproducts by 1.0% or more year on year
FY 2007 level

CO2 emissions decreased by 28.4% from the FY
2007 level(16.5% decrease from the FY 2008 level)

Global• Reduce total waste
emissions by 2% or morefrom the FY 2007 level① Maintain zero emissions② Improve waste generation per unit of products by 1.0% or more year on year
③ Promote recycling to produce valuable resources

Total waste emissions decreased by 9.9% fromthe FY 2007 level(8.5% decrease from the FY 2008 level)Japan• Reduce total waste
emissions by 2% or morefrom the FY 2007 level① Improve outsourced recycling index by 1.0% orTotal waste emissions decreased by 11.0% fromthe FY 2007 level(14.3% decrease from the FY 2008 level)Japan• Reduce① Implement voluntary action plan
atmospheric
VOC emissions(introducing facilities, improvingby 28% or more
processes and controlling wastefrom the FY
generation)
2001 level

Reduce atmospheric VOC emissions by 33% ormore from the FY 2001 level

Global

Risk management of chemical ① Establish chemical substances database
substances (Compliance with ② Update MSDS (reflect the situation in each country)
national and international laws ③ Consider system for information disclosure on chemical
and regulations and REACH)
substances in products (in compliance with REACH)• Complete the creation of a database for procured chemical products• Implement GHS information propagation for all domestic suppliers(chemical products)
Target: 100% up-to-date by 2011

Japan

Reduceenvironmentalload of products
throughout theirlife cycles• Take a major role in compiling the “Electronic Component LCA Guide”
issued by the Electronic Component Division of Japan Electronics andInformation Technology Industries Association (JEITA)• Publish standard LCI data for general electronic components listed below,
derived from LCA Japan Forum
Multilayer ceramic chip capacitors
Multilayer inductors
Chip fixed resistors

GlobalDisclose environmental
information on products
to fully meet customer
requirements
Expand sales of environmentconscious products（2）

Design,development
andmanufacturing

Major Measures① Assess and review the amount of CO2

emissionsmore year on year
② Promote recycling to produce valuable resources① Establish new standard for life cycle

assessment (LCA)② Implement LCA for major products① Achieve 100% response rate for customer product environmental survey② Disclose information in compliance with REACH regulation③ Establish company-internal briefing anddiscussion framework regarding REACH① Produce a catalog (first edition) of environment-

friendly products to stimulate sales

Consider global application of system to assess
CO2 emissions from product distribution• Maintain 100% response rate for customer product environmental survey• REACH regulation: implemented information disclosure for EU market products
on substances of very high concern (15 substances) published on October 28• Established and publicized a new system to label TDKʼs environment-conscious
products (Eco Love products), starting September 2008

Single Fisc al Year Target s
FY 2009 Activity Targets

Objectives Scope

Results① Assessment based on management assessment system
Japan ① Assessment based on management assessment system② Enhance system and performance based on EMS assessment system ②Enhanced system and performance based on EMS assessment system（a）Compliance（a）Compliance• Implement preventive management based on self-managed standards• One case where pollution levels exceeded the self-measured statutory values（b）
Set upper limits (average + 3σ) at 50% or less of statutory values
Environment-conscious communities
Note: Maintain or improve current NOx and pH levels• A total of 6,590 employees participated in various（b）Environment-conscious communities
environmental conservation activities• Actively participate in environmental conservation activities (at least 30% of employees)• Participated in 65 local environmental conservation programs• Conduct environmental interaction with local communities (hold an environment-related event at least once a year) （c）Operation of EMS（c）Operation of EMS• Performed activities and set themes at each TDK site
• Set and promote themes that are beneficial to the environment• Continued to configure and maintain energy management frameworks• Configure and maintain effective energy management frameworks (evaluation points 95 or more, inclusion ratio 85% or more)• Continued to implement environmental impact assessment• Develop themes for environmental impact assessment on a CO2 conversion basis
on a CO2 conversion basis• Promote on-site performance audits• Performed on-site audits focusing on performance① Assessment based on management assessment system
Over- ① Assessment based on management assessment systemseas ② Continuous improvement based on EMS② Continuous improvement based on EMS（a）（a）Compliance
Compliance• Strictly adhere to laws and regulations• One case where pollution levels exceeded the self-measured statutory values• Implement preventive management based on self-managed• Implemented preventive management based on self-managed standards（b）Environmental risk management
standards（b）Environmental risk management• Assessed chemical substance emission quantities（c）• Identify chemical substances emitted to the environment
Environment-conscious communities（c）Environment-conscious communities• Actively participated in local environmental conservation activities（d）• Actively participate in environmental conservation activities
Set and promoted themes that are beneficial to the environment（d）
Set and promote themes that are beneficial to the environment• Performed activities and set themes at each TDK site（e）Implement preventive management based on evaluation of soil （e）Implemented preventive management based on evaluation of soil risks
risks• Implemented soil risk evaluation（f ）（f ）Implemented OHSMS
Implement OHSMS• Implemented OHSMS at 11 new sites (4 sites obtained OHSAS 18001 certification)

Priority objectives

5 Promoting the Creation ofEnvironment-Conscious Products

33• Intensify
implementationof preventive
management① Establish chemical substances database① Establish a new standard for life
• Life cycle• Promote reduction of environmental
assessment (LCA)
cycle assessment (LCA)
load during life cycle of product② Implement LCA for major products （1）• Establish newAssess carbon footprint③ Make TDK products compliant with （2）standard andAssess GHG (greenhouse gases)
perform evaluation
EuP directive
evaluation（3）

Establish
system for
information
propagationin supply
chain

ducing facilities, improving processes
and controlling waste generation)• Carry out social
matched to local needs② Implement educational activities tocontribution
raise environmental awareness andactivities
future-oriented thinking（2）

Promote reductionof environmentalload throughout
entire product life
cycle

30% or more from the FY 2001 level② Implement voluntary action plan (intro-

Global（1）

Strictly observe
all regulations
related to chemical
substances usedin products(REACH regulation
compliance)① Reduce atmospheric VOC emissions by

5 Improving the Environmental Management System

Compliance

CO2 emissions

TargetPriority objectives（2）① Assess and review the amount of① Implement environmental actions（1）

SocialContribution
Activities

1.0% or more year on year
③ Set and strictly observe voluntary CO2emission limits and targets

Distribution

4 Promoting the Creation of EnvironmentConscious Products (Operation of productenvironmental management systems)

4 Conducting External
Environment Activities• Reduce CO2 emissions by 12% or morefrom the FY 2006 level (Reduction of 7%
or more from the FY 1991 level)

products by 2.0% or more year on year

② Reduce fixed energy consumption by（2）

3 Managing
Environmental
Risks (Reductionof atmospheric
VOC emissions)

2 Managing Waste
3 Managing
Environmental Risks① Set and strictly observe voluntary CO2• Reduce CO2
emissions by 3%
emission limits and targets
or more from the ② Reduce fixed energy consumption by
FY 1991 level
improving production methods and facilities

Distribution

ReduceatmosphericVOCemissions① Improve energy consumption per unit ofLong Term(by March 2016)• Reduce CO2
emissions by
10% or morefrom the FY
2006 level（2）

ManageEnvironmental Risks

Medium Term(by March 2011)• Reduce CO2 emissions by 5% ormore from the FY 2006 level

Production
sites

（1）

Major Measures

Production
sites

2 Managing
Waste

1 Preventing Global Warming（1）

FY 2010 Targets
Scope

Established: April 1, 2006
Revised: April 1, 2009 (03)1 Preventing Global Warming

TDK Environmental Action 2015–Agenda（1）

FY 2009 Targets
Scope

T DK C SR REPORT 20 09

34

E n v i r onmental Repor t

Environmental Management System

Environmental Risk Management

Outline of Environmental Load

Corporate Proﬁle ➡ CSR Activities ➡ Environmental Management System http://www.tdk.co.jp/csr_e/csr03300.htm

Managing Soil Contamination and VOC Risks

Assessment of Environmental Load and Defining an Overall Index

TDK has established environmental risk assessment
standards and management methods for soil contamination and VOC*. Each site periodically conducts risk
assessment. For high-risk locations, a clearly definedpriority sequence of preventive measures, restoration
measures etc. ensures effective management ofenvironmental risks.

TDK is performing a systematic assessment of theenvironmental load created by our operations on an
ongoing basis.
We take the results of these investigations into
consideration when defining environment related action
items and targets. We are also working on formulating
an overall index that converts various environmentalloads into CO2 emissions.

Corporate Proﬁle ➡ CSR Activities ➡ Environmental Risk Management http://www.tdk.co.jp/csr_e/csr03400.htm
Corporate Proﬁle ➡ CSR Activities ➡ Outline of Environmental Load http://www.tdk.co.jp/csr_e/csr03500.htm

Environmental Management System
TDK has a company-wide Environmental Management
System (EMS) which is headed by the company president.
The system is designed to comprehensively addressenvironmental issues that are ever becoming more complex
and globalized. It goes far beyond the previous approach
focusing on single sites, allowing us to respond promptly
and effectively while remaining aware of the big picture.
In addition, the various departments of the head
office comprehensively deal with product-related
environmental issues that were difficult to deal with
under a site-driven environmental management system.
The overall framework now provides the basis for
managing the business processes of purchasing,
manufacturing, and selling.

EMS Organization

Operation of the TDK Environmental
Management System
In fiscal 2006, all domestic manufacturing sites of TDK
shifted to the company-wide environmental management system (EMS). This allowed systematic operation of
EMS, clarifying the direction of TDK’s environmental
activities. At overseas sites, we obtained ISO 14001*
certification by fiscal 2008 and are currently in theprocess of switching to the company-wide EMS, withparticular emphasis on our Chinese plants.
Throughout the TDK Group, EMS plays a vital role inworking towards the goals defined by the TDK Environmental Action 2015.
With the aim of further streamlining our operations
under a set of comprehensive and shared management
principles, we are pursuing integration of an Occupational Health & Safety Management System (OHSMS)
which will allow flexible and efficient operations
control.
＊ ISO14001: International standard related to EMS

Note: For a list of ISO 14001 certified sites, please refer the web site.
http://www.tdk.co.jp/csr_e/csr05200.htm

President

Executive
Committee
Executive Director in Chargeof Safety & Environment
Internal Audits(Head Office Auditors)

General Manager of Safety& Environment Office
Safety &Environment OfficeSite Environmental
Management

Site Environmental
Management

Internal Audits(Site Auditors)

Environmental
Management Manager

35

Internal Audits(Site Auditors)

Environmental
Management Manager

T DK C SR REPORT 20 09

Site Environmental
Management

Internal Audits(Site Auditors)

Environmental
Management Manager

EMS Assessment System
and Award Program
TDK evaluates environment management operations on
a global basis and is constantly aiming to improve theperformance and efficiency of actions in this area. This isintended to raise the awareness level with regard toenvironmental issues. Each year, goals that were definedat the respective sites and their attainment levels areevaluated according to certain criteria.
A system of awards to commend sites with outstanding performance as well as individual contributions
has been introduced. The system is not only aimed atrewarding results but also highlights exemplary actions
that can serve as a blueprint for the entire company. The
award sites for fiscal 2009, along with the main action
items are listed below.
Site
Chikumagawa
Techno FactoryAward content (main items)
Significant reduction in CO2 emissions achievedby switching to alternative fuel. Significant
reduction in waste output due to work process
improvements.

＊ VOC: Volatile Organic Compounds

Note: Soil recovery results are available on the web site.
http://www.tdk.co.jp/csr_e/csr05300.htm

Reducing VOC Emissions
TDK has identified the reduction of VOC emissions into
the atmosphere as one of its main objectives in the TDK
Environmental Action 2015. By the fiscal year 2011, thetarget is to reduce atmospheric VOC emissions by 30% ormore as compared to the fiscal 2001 level. Major
measures implemented towards this target include
reduction of organic solvents use, as well as installationof solvent recovery systems and solvent incineration
systems.
Atmospheric VOC emissions in fiscal 2009 were 33%
lower than in fiscal 2001, which means that the medium
term target value for 2011 has already been exceeded.

INPUT
Raw materials

184,620 ｔ

Electric power

1,377,087 MWh

Fuel (converted to crude oil)
Service water

65,187 kl
3,033,102 m3

PCB Storage and Management for Proper Disposal
TDK stores and maintains 90 electric power capacitorsand 451 fluorescent light stabilizers, in compliance with
the Waste Management and Public Cleansing Law*. In
response to full-fledged PCB waste disposal requirements, we implemented measures to properly dispose ofPCBs, and have completed the registration procedure for
disposal of PCBs.

OUTPUT
Products

727,400 million yen

CO2952,270 t - CO2

Total waste emissions

69,045 ｔ

PRTR controlled substances emissions

344.1 ｔ＊ Japanese law governing the disposal and cleanup of waste

Regulatory Compliance
To prevent the contamination of atmosphere, water,soil, etc., TDK strictly complies with all relevant laws andregulations. For certain items, we have even set voluntary standards that are more stringent than the legal
requirements, and we take immediate corrective
measures whenever necessary. Unfortunately, in fiscal
2009, there were two cases where pollution levels
surpassed the legally required standard values. We
reported these cases to the authorities and swiftly took
countermeasures to prevent any recurrence.

Waste water

2,764,247 m3

SOx

14.683 ｔ

NOx

93.800 ｔ

Dust particles

2.564 ｔReduced energy consumption due to improved
SAE Magnetics
clean room air conditioning efficiency. Over
(H.K.) Ltd.
25% reduction in organic solvent use.
TDK Taiwan
Corporation

Improved energy efficiency of sintering oven and airconditioned areas results in reduced CO2 emissions.
Significant reduction in waste output due toimproved sintering tools.

Note: Scope of data
PRTR controlled substances, service water, waste water, SOx, NOx, dust particles: Japan
Others: Global

T DK C SR REPORT 20 09

36

E n v i r onmental Repor t

Preventing Global Warming (Manufacturing and Distribution)
Corporate Proﬁle ➡ CSR Activities ➡ Preventing Global Warming (Manufacturing) http://www.tdk.co.jp/csr_e/csr03600.htm
Corporate Proﬁle ➡ CSR Activities ➡ Preventing Global Warming (Distribution) http://www.tdk.co.jp/csr_e/csr03700.htm

Law*, which calls for a minimum 1% annual improvement in energy consumption per unit of products. We
have set a target of at least 2.0% per year. Regarding
fixed energy consumption, independent of production
volume, we have also set a target of 1.0% or more year
on year reduction. By achieving these specific targets,
we aim to meet our medium term objective of reducing
CO2 emissions by at least 7% from the fiscal 1991 level
by March 2011 (corresponding to a reduction of 324,949
t-CO2 at domestic sites).
In an effort to bolster energy management atoverseas manufacturing sites, we established a medium
term target for reducing CO2 emissions on a global basis(emissions in Japan and overseas combined) in the TDK
Environmental Action 2015 launched in fiscal 2007. The
goal here is to reduce CO2 emissions by 5% or more by
March 2011, as compared to the fiscal 2006 level.

Efforts at Manufacturing Sites
Carbon dioxide (CO 2) released through energy consumption at manufacturing sites makes up the bulk of
TDK’s total greenhouse gas emissions.
In fiscal 2009, TDK’s total CO 2 emissions in Japanamounted to 369,988 t-CO 2, 5.5% down from theprevious year (fiscal 2008), and 5.9% more than thefiscal 1991 level.
CO 2 emissions at overseas sites amounted to582,262 t-CO2, 10.8% up from fiscal 2008.
We actively promote various energy conservation
programs to reduce CO2 emissions.
For Type I Designated Energy Management
Factories in Japan that consume significant quantities ofenergy, we have set a stricter target than the nonbinding target set down in the Energy Conservation＊ Law promoting more efficient use of energy

TDK CO 2 Emissions TrendsJapan

CO2 emissions volume（t-CO2）

Real output basic CO2 units（1991=100）

CO2 emissions volume（t-CO2）
450,000

Basic CO2 units (index %)150
140

391,451

380,760
356,886
349,447100
350,000

354,974
345,132
349,407345,954
329,497

372,070

349,652

324,949

337,396

’94

’95

’96

’97

’98

’99

’00

’01

’02

’03

’04

’05

Overseas

CO2 emissions volume（t-CO2）
800,000

582,282

600,000

400,000

328,934

436,269

442,595’04’05

497,550

487,766’06’07

525,632

352,486

200,000

0

37

’02

T DK C SR REPORT 20 09’03

Trends in Energy Usage for Distribution andConsumption Per Unit of Product (TDK Corporation)

’08

’09

（FY）

’06

’07

Energy consumption per unitof product (FY2007=100)

Energy consumption(crude oil equivalent, kl)

120（%）

3,000
102

100
2,000

2,053

1,558

’08

’09

’10

Note1: Real output: nominal output/price index
released by BOJ (electric equipment)
Note2: TDK’s standards for CO2 emissions conversion are as follows:• Figures for the energy used by each facility arecalculated by multiplying the volume of purchased
electricity and fuel (such as gas and oil) by a CO2
conversion factor.
• The CO 2 conversion factor for fuel is a factor
stipulated in the Law Concerning the Promotion of
the Measures to Cope with Global Warming.
• The CO2 conversion factor for electricity purchased(in Japan) is the basic unit of equivalent CO 2
emissions published by the Federation of ElectricPower Companies of Japan. (For the fiscal 2009
figure, the fiscal 2008 factor is used.)
Because the conversion factor was finalized in FY
2008, the figures for CO 2 emissions and real
output basic CO2 units for fiscal 2008 (in Japan)
have been revised.
• The CO2 conversion factor for electricity purchased(overseas) is the factor for each country stipulated
in the GHG Protocol Initiative. (The fiscal 2007 to2009 figures use the fiscal 2006 factor.)
The figures for CO2 emissions from fiscal 2002 to2008 (overseas) have been revised as a result of achange in GHG protocol factor.

90
80
70

0

80

50
’11 （FY）

110
100

91.2

1,000

90

60

’93

However, due to a reduction in sales, the energy
consumption per unit deteriorated by 11.5% comparedto the previous year, so that the target could not be
achieved.

100353,270

70’92• Implement 100% modal shift as much as possible•R educe the number of special transport runs with badloading ratio•U se local ports efficiently to reduce the domestictransport distances• Improve loading ratio by changing from charteredtransport to consolidated transport

1,928

110

70.2

’91

In May 2008, TDK organized its first “Global WarmingCountermeasure Summit” as a company event. On thisoccasion, a number of special interest groups wereformed, headed by energy experts from the TDK Groupin Japan, on topics such as sintering, air conditioning,
and air compression systems. During FY2009, special
interest group meetings were held a total of 12 times,
discussing measurement data obtained according to acommon standard throughout the TDK Group. Topics of
discussion included energy efficiency and energy
wastage. The participants realized that setting themes
and targets for energy conservation, which often was
difficult when done on a site-by-site basis, would beeasier if a common energy efficiency index could be
used as a reference. A standard was therefore
established which has made benchmarking andcomparisons between sites possible. Targets for
improvement can now be identified more readily. The
lively exchange of information among the special
interest group members also brings new incentives andhelps the experts to hone and improve their skills.
In the current economic and geological climate,finding ways to combat global warming and reduceenergy use is becoming ever more important, also inorder to ensure the continued profitability of a businessenterprise. The work of the special interest groups will
be further expanded in future and is expected tosignificantly contribute to our efforts in this regard.

In fiscal 2007, TDK established a committee to promoteenergy savings and improved operation procedures in
distribution. Company-wide efforts to reduce
distribution costs and energy consumption are now
under way. In fiscal 2009, as in 2008, the following
measures were taken to achieve the nonbinding goal set
down in the Energy Conservation Law to reduce energy
consumption per unit of products by at least 1%:

120

369,988

367,358
371,043352,355

356,258

300,000

250,000

Global Warming Countermeasure Summit

Distribution Activities

130

401,573

400,000

Initiatives to Reduce CO2Emissions

A session at the first
Global WarmingCountermeasure
Summit (May, 2009)

Participation in “ Trial Implementation of
an Integrated Domestic Market for Emissions Trading ”
In October 2008, the Japanese government started the"Trial Implementation of an Integrated Domestic
Market for Emissions Trading." TDK decided to takepart in this initiative and actively contribute to it,
because we see it as a way to speed up the reduction in
CO 2 emissions volume from industrial activities, andbecause we want to help in evaluating the effectivenessand validity of an emissions trading scheme. We filed
our application in December 2008 with the Ministry of
Economy, Trade and Industry, and the application was
accepted. Taking into account the plans for selfregulatory initiatives in the industry, we plan toparticipate while setting targets that are in line with the
TDK Environmental Action 2015.

60

’07

’08

’09 （FY）

Trends in CO2 Emissions for Distribution (Japan)
CO2 emissions volume（t-CO2）
10,000
8,000

7,580
6,497
5,424

6,000
4,000
2,000
0

’07

’08

’09

（FY）

T DK C SR REPORT 20 09

38

E n v i r onmental Repor t

M a n a g i n g Wa s t e

Promoting the Creation of Environment-Conscious Products
Corporate Proﬁle ➡ CSR Activities ➡ Promoting the Creation of Environment-Conscious Products http://www.tdk.co.jp/csr_e/csr03900.htm

Corporate Proﬁle ➡ CSR Activities ➡ Managing Waste http://www.tdk.co.jp/csr_e/csr03800.htm

Global Efforts to Reduce
Waste Generation

Efforts at Sites in JapanTDK sites in Japan strived to achieve the fiscal 2009
target of reducing the outsourced recycling index by
1.0% or more from the fiscal 2008 level. The volume ofwaste outsourced for recycling decreased by 3,064 tons
compared to 2008, resulting in a figure of 26,519 tons.
However, due to a significant reduction in turnover, theoutsourced recycling index increased by 25.0%
compared to fiscal 2008, therefore failing to achieve thetarget.

TDK achieved zero emissions in all its sites in Japan andoverseas in fiscal 2007. From the viewpoint of effective
utilization of resources, we have also endeavored toreduce the amount of externally processed and recycled
waste.
We intend to refocus on our starting point of 3R(Reduce, Reuse and Recycle) and work towards a further
reduction in the amount of generated waste.

Environment Protection Is
Linked to Product Quality
TDK defines the term “product environmental consideration” as referring to products that are designed in anenvironment-conscious manner (or to environmentconscious design specifications). This involves preventive
management of products so that they do not cause
pollution. We believe that protecting the environment
ensures sustainability for the company and is directly
linked to product quality.

Trends in Waste Emissions (Japan)
Total volume of waste (tons)（tons）

Volume of waste outsourced for recycling (tons)

Final disposal (tons)

Outsourced recycling index (FY2006=100) （Index）
140

60,000131.6

50,00040,00040,30340,331

100.0

40,00836,11930,00020,901

23,84532,32337,731

36,32327,00280

26,51929,583

27,79360

20,00040

10,000
0

6,315

’02

20

3,052

’03

728

0

’04

’05

0

0

’06

’07

0

’08

0

’09

（FY）

0

Outside Japan, the aim for FY2009 was to maintain thezero emissions level reached in FY2008 and to further

Total volume of waste (tons)

Volume of waste outsourced for recycling (tons)

Final disposal (tons)

50,00040,31440,26040,00020,00031,037

10,04839

29,128

11,891
5,253

5,095
727

0

36,72231,506

20,908
8,505

10,00037,76828,77725,95917,175’02

T DK C SR REPORT 20 09

’03

’04

(1) Free of regulated chemical substances(2) E ffective use of resources (resource recycling/
resource saving)(3) Energy-saving design (lower energy consumption
in the production process/lower power consumption, etc.)
At TDK, we regard it as a given that our products
will not contain any banned substances, and we place achief focus on energy-saving design. This covers all
aspects of producing, storing, converting, and applying
energy.

Consistently Creating
Environment-Conscious ProductsTrends in Waste Emissions (Overseas)

30,000In concrete terms, product environmental consideration
can be classified into the following three categories:

minimize waste generation. These efforts weresuccessful, and total emissions were reduced from thefiscal 2008 level by 1,046 tons to 36,722 tons. The
volume of waste outsourced for recycling decreased
from fiscal 2008 by 2,378 tons to 29,128 tons.

Efforts at Overseas Sites（tons）

Our environmental strategy with regard to products will
also be oriented along these lines.

120
100

105.3

35,87926,693

26,54996.3

1. Climate change
2. Environment and health
3. Sustainable use of natural resources and sustainable
management of waste
4. Nature and Biodiversity

’05

’06

’07

0

’08

0

’09

（FY）

In 1998, TDK introduced a product assessment systemthat takes the environmental impact of a product overits entire life cycle into account, from the design anddevelopment stage right through to the final stage.
Even minute amounts of chemical substances in all parts
that make up a product are recorded. The energy expended during manufacturing, the energy consumption
reducing effect of the product, both on its own andwhen used in another end product are carefully
assessed, and only such products that pass strict
evaluation criteria and are approved by the General
Manager of the Quality Assurance Department canproceed to the manufacturing and marketing stage.

Outline of Environment- Conscious
Produc t Cer tification Framework

Overall evaluation score

Our activities will be focused on the following four aspects:

In September 2008, we implemented anotherimportant framework aimed at ensuring the consistentcreation of environment-conscious products by defining
the “Eco Love” and “Super Eco Love” certification
categories.

Super Eco Love
products
Eco Love products

EnvironmentConscious Products

Out of the products approved in the product assessment
process, this certification framework selects suchproducts that effectively reduce the environmental
burden and take the lead in the industry (Eco Love).
Among Eco Love items, those which realize
environment-friendliness on an even higher level are
certified as “Super Eco Love.” Products from both ofthese categories are introduced on our web site.
Products may lose their certification if they nolonger conform to the most up-to-date requirements.
This is aimed at constantly providing incentives forfurther development and improvement.
Currently, the main focus is on climate change(preventing global warming). TDK products whose
manufacture, distribution, and usage in other end
products contributes to saving energy or to theutilization of alternative energy sources will receive theEco Love or Super Eco Love certification.

Quantifying Environmental Loads and Designing for the Environment from the Outset
TDK assesses the environmental impact of a productover its entire life cycle. For this purpose, measurable
physical quantities are defined for the purpose of

T DK C SR REPORT 20 09

40

E n v i r onmental Repor t＊ Inventory analysis: Detailed analysis of energy and materials input and output

quantification (input and output analysis). This is donein compliance with the LCA principles that demand thecalculation of environmental load values referenced tostandard levels, as well as the requirements of the EuP
Directive for ecological profiling. By tackling all environmental aspects, we are able to design and develop
products whose overall impact on the environment has
been minimized as far as possible.
In coordination with the rest of the industry, we are
currently developing optimized LCA methods for input
and output analysis (first stage) and inventory analysis*for background data assessment (second stage).
When the LCA concept has fully matured andbecome accepted in the marketplace, and when an
infrastructure for evaluation of all products is in place,
we intend to integrate it as an element of environmentconscious design in our product environmental
management framework. We comply with customer
requests based on product assessment data gained
through this process.

in all processes over the life cycle of a productregard to EU market products. We are committed tocontinue product environment related information
disclosure also in future.
＊ SVHC: Originally an acronym for “Substances of Very High Concern,” now

Preventing Product Related Exposure to Chemical Substances Through Proper Management
In 2004, TDK introduced the “product environmental
management” framework to effectively prevent thepossibility of product related exposure to chemical substances harmful to human health and the environment.
Currently, this has been integrated into our Quality
Management System (QMS).
As a component manufacturer positioned within
the supply chain, we are concerned with proper prevention and management at the Purchasing, Manufacturing, and Selling stages.

specifically used to refer to substances covered by the requirements of the
REACH regulation.

Fiscal 2009 Excellent
Environment-Conscious Products
Excellent Environment-Conscious Product (1)High-Performance Neodymium Magnet NEOREC 53 Series

Produc t Environmental Management System

System covers all processes: Purchasing, Manufacturing, Selling

Green procurement

Purchasing

Manufacturing

Incoming
inspection

Manufacturing
process

Prevent shipmentof non-compliant
products
Product assessment

Design &development

Information collection

Target based management

Thorough education& training

Compliance with REACH Regulation
Registration, Evaluation, Authorization, and Restrictionof Chemicals (REACH) is a binding EU regulation for
manufacturers which came into force in June 2007.
The regulation comprises the following requirements forchemical substances, preparations, and molded products:
1. R egistration (chemical substances, preparations,molded products)
2. N
 otification (molded products)
3. C
 ompulsory application for permission (chemical
substances, preparations)
4. U sage limitations (chemical substances, preparations, molded products)

41

T DK C SR REPORT 20 09＊ As of April 1, 2009, according to TDK investigations

Selling
Environmentallyassured products

Customers

Suppliers

Environmentallyassured materials

Requirements

Requirements

Non-use of regulated substances
Prevent misuse, mix-up, and contamination

This air-cooled DC-DC converter was developed
specifically for use in next-generation hybrid electricvehicles (HEV) with high fuel economy. It features highefficiency, compact dimensions, and light weight.
As a DC-DC converter, it provides industry’s highest level
performance.*
Major environmental load reducing effects:•C ompact dimensions and light weight help to conserve
resources (5% less volume and 45% less weight,
compared to previous TDK product).
•C onversion efficiency improved by 1%, to contributeto fuel savings.

Laws and regulations

Requirements

TDK

Requirements

Excellent Environment-Conscious Product (2)DC-DC Converter for Automotive Use

Information disclosure

Checks and audits • • •5. C
 ommunication of information (chemical substances, preparations, molded products)
As a components manufacturer, TDK considers thecommunication of information our most important duty.
Based on the assumption that all products may be usedin the EU region, we communicate information on
SVHC* disclosure requirements to our upstream
suppliers and partners, in line with our Green Procurement Standard.
We also have established procedures to convey
appropriate information to our customers and partners
downstream in the supply chain, as required by the
REACH regulation.
In fiscal 2009, we have performed information
disclosure for 15 substances of very high concern with

Metal magnet featuring drastically improved magnetic
force characteristics (residual flux density, Br), thanks toa unique low-oxygen process. Enables further miniaturization of sets and products.

Excellent Environment-Conscious Product (3)EV/HEV Battery Current Sensor

Major environmental load reducing effects:•D oes not use any rare terbium (Tb) raw material, but
still achieves performance on a par with regular
products.
• Improved residual flux density (Br) allows motors to bemade more compact, using fewer resources.
• Improved residual flux density (Br) contributes to lower
energy consumption by set products.
• Improved
manufacturing techniques using fewer
resources and less energy.
This high-precision current sensor is designed for use inmonitoring the charge/discharge current of high-voltage
batteries used in electric and hybrid electric vehicles. Itfeatures excellent linearity and temperature characteristics and can measure large currents up to ±200amperes. Thanks to special design technology, power
consumption when driven has been reduced by 64%.
Major environmental load reducing effects:•H igh-precision current input/output monitoring helps
in configuring a highly efficient battery system.
• S upport for +5V single power supply drive results in
64% lower power consumption by sensor (compared
to previous TDK product).

T DK C SR REPORT 20 09

42

TDK CSR REPORT 2009
English version

TDK CSR REPORT 2009
English version

TDK CSR REPORT 2009
English version

TDK Corporation

1-13-1 Nihonbashi, Chuo-ku, Tokyo 103- 8272
TEL: +81-3-5201-7102

http://www.tdk.co.jp/