Sustainability Report 2023

Sustainability Report 2023

CONTENTSCONTENTS

Editorial Policy

About the “Sustainability” Website�������������������������������������������������������������������������������������������������������������������������������������������������4
Message from the President and CEO������������������������������������������������������������������������������������������������������������������������������������������6

Message fromthe President
and CEOCPSO Message�������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������9
All you need to know about TDK’s sustainability!��������������������������������������������������������������������������������������������������������������������11

CPSO
Message

Sustainability Management
Corporate Philosophy and Sustainability Vision�������������������������������������������������������������������������������������������������������������������������������������16
TDK Group’s Materiality�����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������20

All you need toknow about TDK’s
sustainability!

Materiality and Promotion Structure���������������������������������������������������������������������������������������������������������������������������������������������21
Materiality Identification Process����������������������������������������������������������������������������������������������������������������������������������������������������23

Sustainability
Management

Materiality Progress at a Glance�����������������������������������������������������������������������������������������������������������������������������������������������������24
Energy transformation (EX)�����������������������������������������������������������������������������������������������������������������������������������������������������������������31
Digital transformation (DX)������������������������������������������������������������������������������������������������������������������������������������������������������������������34

Environment

Quality Management������������������������������������������������������������������������������������������������������������������������������������������������������������������������������37
HR Management���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������40
Supply Chain Management����������������������������������������������������������������������������������������������������������������������������������������������������������������43

Society

Opportunity and Risk Management����������������������������������������������������������������������������������������������������������������������������������������������46
Pursuing Both Delegation of Authority and Internal Controls����������������������������������������������������������������������������������������49
Asset Efficiency Improvement����������������������������������������������������������������������������������������������������������������������������������������������������������51

Governance

Sustainability Promotion Structure������������������������������������������������������������������������������������������������������������������������������������������������������������������53
Efforts to Achieve the SDGs��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������56

External Evaluation/ Status of inclusionin the ESG Index

TDK Group’s Approach to the SDGs and Its Activities������������������������������������������������������������������������������������������������������57
Contribution to the SDGs through Products����������������������������������������������������������������������������������������������������������������������������64
Stakeholder Engagement��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������71
Fund Procurement through ESG Finance���������������������������������������������������������������������������������������������������������������������������������������������������74

Search / Index

Environment
Environmental Policy and Environmental Vision�������������������������������������������������������������������������������������������������������������������������������������76
The TDK Group Occupational Health/Safety and Environmental Charter�������������������������������������������������������������80
Environmental Management System�������������������������������������������������������������������������������������������������������������������������������������������������������������82
Facilities with ISO14001 and ISO50001 Certification (As of May 1st 2023)���������������������������������������������������������85
Action Plan in TDK Environment, Health and Safety Action 2025* and Fiscal 2023 Achievements�����������������������87
Climate Change Initiatives������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������89
Water Resources Conservation���������������������������������������������������������������������������������������������������������������������������������������������������������������������� 102
Effective Use of Resources������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 105
Reduce Risks of Chemical Use���������������������������������������������������������������������������������������������������������������������������������������������������������������������� 108
Approach to Biodiversity������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������ 1102

Sustainability Report 2023

External Assurance������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������ 112
CONTENTS

Third-Party Verification����������������������������������������������������������������������������������������������������������������������������������������������������������������������� 113
Third-Party Review of Environmental Performance Data���������������������������������������������������������������������������������������������� 115
A History of TDK’s Environmental Activities������������������������������������������������������������������������������������������������������������������������������������������� 116

Editorial Policy

Message fromthe President
and CEO

Environmental Data����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 117

Society
Respect for Human Rights�������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 122
TDK Group Policy on Human Rights����������������������������������������������������������������������������������������������������������������������������������������� 130
Customer Satisfaction����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 131

CPSO
Message

Human Resources Development������������������������������������������������������������������������������������������������������������������������������������������������������������������� 133
Diversity, Equity & Inclusion������������������������������������������������������������������������������������������������������������������������������������������������������������������������������ 138
Talent Attraction & Retention��������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 142

All you need toknow about TDK’s
sustainability!

Health and Safety��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 146
Facilities with ISO45001 Certification (As of May 1st 2023)���������������������������������������������������������������������������������������� 150

Sustainability
Management

Environment

Social Contribution Activities��������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 151
Social Data������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������ 153

GovernanceCorporate Governance���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 156
Risk Management��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 157

Society

Corporate Ethics and Compliance��������������������������������������������������������������������������������������������������������������������������������������������������������������� 159
Sustainable Procurement����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 162
Policy on Relations with Business Partners�������������������������������������������������������������������������������������������������������������������������� 169

Governance

Responsible Sourcing of Minerals���������������������������������������������������������������������������������������������������������������������������������������������������������������� 170
TDK Group Policy on Responsible Sourcing Minerals���������������������������������������������������������������������������������������������������� 173

External Evaluation/ Status of inclusionin the ESG Index

Social and Environmental Consideration at Manufacturing Sites��������������������������������������������������������������������������������������������� 174
Tax Strategy��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 177
Information Security���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 179

Search / Index

Quality Assurance��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 182
Governance Data���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 187

External Evaluation / Status of inclusion in the ESG Index�������������������������������������������������������������������������������������������������189
Search / Index
ESG Research����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 191
GRI Standards Table��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 194
SASB Table����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 199
Search by SDGs������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������ 202
Search by Stakeholder���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 204
ESG related Data����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 205
ESG related Policies���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 206

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Sustainability Report 2023

Sustainability
CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

About the “Sustainability” Website
Segmentation of Information and Editorial Policy of the Sustainability Website
In Value Creation 2023, TDK’s Medium-Term Plan, we outlined our aim of rotating the cycle whereby theenhancement of social value leads to commercial value (corporate growth), the efficient use of the profits andassets derived therefrom leads to improved asset value, and the utilization of these assets leads to further
contributions to society.
This sustainability website (Sustainability Report) carries ESG information relevant to the enhancement of social
value.
This report is prepared in accordance with the core option of the GRI (Global Reporting Initiative) Standards, andalso refers to the SASB Standards and other frameworks and guidance.
In addition, against the background of social issues, we have endeavored to present information relating tomateriality identified in accordance with our management strategy, the degree of impact of the TDK Group’sbusiness on society, the degree of stakeholder interest, and our current response, and taking the opinions ofstakeholders into account as well, in a more detailed manner and also to report on the progress that has beenmade.
In the shareholder and investor information on TDK’s website, we explain our policies and strategies relating tothe optimization of commercial value and asset value through IR news, the IR calendar, latest materials, and soon. And in the Integrated Report, we introduce stories about how the TDK Group, while creating the threevalues, contributes to society and, as a result, grows its business. Please take a look at them.
Investor Relations TDK website

Integrated Reports

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

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Sustainability Report 2023

CONTENTS

Period covered
Fiscal Year 2023 (April 1, 2022 to March 31, 2023 / the fiscal period ended March 31, 2023)• Some information covers activities outside this period.

Editorial Policy• In order to report progress in an easy-to-understand manner, data over several years is carried (excluding
some parts).

Message fromthe President
and CEO

Organizations covered

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

TDK Group (TDK Corporation and 140 consolidated subsidiaries in Japan and overseas as of the end of March2023)• When information refers to a specific reporting range, explanations are given accordingly.

Enhancing the Objectivity and Accurateness of Disclosed Information
In April 2022, TDK Akita Corporation merged with TDK Shonai Corporation and TDK Kofu Corporation in anabsorption-type merger, with TDK Akita Corporation as the surviving company. The company name changed
from TDK Akita Corporation to TDK Electronics Factories Corporation.

Enhancing the Objectivity and Accurateness of Disclosed Information
Environment

Society

GovernanceRegarding environmental performance data, TDK received third-party verification by SGS Japan Inc. and thirdparty reviews.
Third-Party Review of Environmental Performance
Data

Third-Party Verification

Update period
October 2023 (previous update: October 2022; next update scheduled for October 2024)

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Reference Guidelines
Global Reporting Initiative (GRI) Sustainability Reporting Standards: Core option
Sustainability Accounting Standards Board (SASB) Standards

Contact
CSR Contact

Caution regarding forward-looking statements
Certain information on the Sustainability Website contains forward-looking statements such as plans, policies,
management strategies, targets, schedules, understandings, and evaluations with respect to the TDK Group.
These forward-looking statements are based on the current forecasts, estimates, assumptions, plans,
understandings, and evaluations of the TDK Group in light of information currently available to it, and containknown and unknown risks, uncertainties, and other factors. The TDK Group therefore wishes to caution readersthat, being subject to risks, uncertainties, and other factors, the TDK Group’s actual results, performance,
achievements, or financial positions could be materially different from any future results, performance,
achievements, or financial positions expressed or implied by these forward-looking statements.

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Sustainability Report 2023

Sustainability
CONTENTS

Message from the President and CEO

Editorial Policy

Message fromthe President
and CEO“Technology for the well-being of all people”
TDK will continue to take on social issues through our customers by enhancing
our technological prowess in offering products

CPSO
Message

Noboru Saito

Representative Director, President and CEO
All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

TDK is a comprehensive manufacturer of electronics components that leads the world in magnetic technologies.
By putting into practice our corporate motto, “Contribute to culture and industry through creativity,” we havecontinued to provide countless products that are of value to society.
Today, as companies are increasingly expected to engage in resolving social issues, we intend to maximize ourcontribution to the building of a sustainable society, working alongside our customers in wide-ranging fields,
including automotive, ICT, and industrial equipment.

Steering the company in a turbulent business environment
Our business environment today can be characterized by one word: turbulence. In fiscal 2023, as the impact of
the COVID-19 pandemic lingered around the world, geopolitical risks rapidly escalated, including the volatile
situation in Ukraine. In addition, a variety of other problems have erupted simultaneously, including supply chain
disruptions, soaring energy prices, and global financial uncertainty resulting in rising interest rates and economic
stagnation―engendering growing concerns about the fragmentation of the international community.
In this rapidly changing world, TDK is working to strengthen the functions of its regional headquarters in Japan,
Europe, the Americas, and China so that we can quickly and precisely identify opportunities and respond flexibly
to risks. Having grown aggressively through mergers and acquisitions, TDK has become “TDK United,” a fusionof multiple companies with diverse personalities. Standing on the principle of “Empowerment andTransparency,” authority is delegated, each company’s culture is respected, and transparency is ensured. This
has enabled us to put in place a structure that allows the regional headquarters―which until now have primarily
been responsible for business management functions in each region―to dynamically devise growth strategies
that leverage characteristics unique to those regions. At the same time, we are endeavoring to create new value
while bolstering our information collection capabilities in each region and preparing for geopolitical risks.
Further, to ensure that we are able to bring strong momentum and flexibility to tackling the increasingly complex
issue of sustainability in these turbulent times, in April 2023, we established the new position of Chief People
and Sustainability Officer (CPSO) with Senior Vice President Andreas Keller, general manager of our Human
Resources HQ, assuming the post. Sustainability is a vital component of TDK’s strategy. Our efforts to createsocial value by connecting things organically and striving tirelessly to solve social issues are driven entirely byhuman resources. We believe it is only natural that the individual responsible for human resources should leadthese efforts.

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Sustainability Report 2023

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Paramount importance of the quality of human resources
One thing I have long emphasized is the importance of human resources. TDK is a technology company, but it isour people―team members of TDK―who are responsible for everything from developing technology tocommercialization, marketing, and sales. Human resources are everything.
I believe the key to elevating the quality of human resources, in addition to the provisioning of surrounding
environments such as programs and facilities, lies in the mindset of each individual.
Since becoming president, I have continued to travel around the world to visit and interact with our
employees―our team members. What I felt on these visits is this: the understanding by our team members of
how their work benefits the world has a significant impact on individual motivation―and that, in turn, is a major
contributor to improving the quality of our human resources. The total sum of the value created by each of ourmore than 100,000 high-quality team members worldwide is itself the value of TDK.
Team member health is also a critical underpinning of the quality of human resources. Under the TDK Health
Declaration announced in April 2023, we clarified our intention to be proactively involved in the health of ourteam members, and we also joined the Health & Productivity Management Alliance, whose aims are to create amodel for health and productivity management in Japan and to work together to develop solutions. Team
members’ physical and mental health are deeply important management issues we care about sincerely.

Sustainability
Management

Environment

Society

Governance

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Climate change initiatives
Another management issue we have raised is our efforts to address climate change. TDK has set forth a goal ofachieving net zero CO2 emissions by 2050, an effort we are approaching from both lower energy and renewableenergy initiatives. One step toward achieving that goal came in July 2023, when we converted 100% of theelectricity used at all of our manufacturing sites in Japan to renewable energy sources. Progress in the utilizationof renewable energy in Japan, which had lagged behind other regions, will accelerate the Group’s overall shift torenewable energy, and we now expect to achieve our goal of reaching a renewable energy utilization rate of
50% by the end of fiscal 2025―earlier than the originally-planned fiscal year 2026. As for lowering energy use,
we are already using solar power generation at several manufacturing sites in Japan and overseas tosupplement the power needed for production while reducing CO2 emissions through energy management
systems that integrate power generation and storage technologies.

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Sustainability Report 2023

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

GovernanceOur goal is for TDK to become indispensable to society
As we approach our 100th anniversary in 2035, our goal is to see TDK become indispensable to society. While
the products created from our technologies are seldom directly visible to the everyday consumer, many havebeen the core electronic component for a diverse collection of products across a vast range of fields.
Many of our capacitors and magnetic products are found in xEVs, which are growing in popularity worldwide.
Our products are also incorporated into everyday life and public infrastructures, proliferating worldwide insmartphones, smart watches, wireless earphones, solar and wind power generation, and innumerable otherexamples. They offer unlimited possibilities, with technologies and products being utilized in applications thatwere inconceivable just a few years ago. Without TDK’s technologies and products, our customers’ products
would not work, and society would cease to function; because of TDK, people can live enjoyable, fulfilling lives:
That is the kind of bedrock presence we want to become.
Going forward, a variety of advanced technologies will make our society more convenient and efficient, andrestrictions based on time or distance will be fewer. That said, we cannot deny the possibility of economic
disparity widening among those who are unable to benefit from such technological developments or in regions
where the impact of climate change is particularly severe. The question, then, is what TDK can do to addressthese issues. While our Sustainability Vision calls for “Technology for the well-being of all people,” I believe“well-being” is a state in which people from all walks of life can live vibrant, happy lives and are free to take on
any number of positive challenges. And it is crucial that each individual be able to envision a bright future.
In the Analects, Confucius said, “The superior man seeks righteousness; the worthless man seeks benefit.” Themeaning is that a virtuous person acts first by considering whether or not the action is just, while a non-virtuous
person thinks first of loss or gain. I have developed my own interpretation: profit will follow from the pursuit ofrighteousness, not the other way around. Applied to TDK, this translates to focusing on refining―then providing
products based on―technological strengths that will contribute to a sustainable society. As a result, social
issues will move toward resolutions, and the economy and society will flourish, which will lead to TDK’s own
growth―positioning us to become an indispensable existence in society. This is how TDK will pursue the wellbeing of all people in society and how I would like us to continue working together as TDK United to take onthese challenges.

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8

Sustainability Report 2023

Sustainability

CPSO Message

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

Andreas Keller

Senior Vice President
Chief People and Sustainability Officer andGeneral Manager, Human Resources HQ

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

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Dear Stakeholders,
In April 2023 I was appointed to the new position of Chief People and Sustainability Officer (CPSO). I would liketo thank you for your interest in our sustainability journey and our challenge going forward. I am happy that weshare a common approach to navigating the issues facing our rapidly changing world.
As head of the Human Resources HQ, I believe that the significance of my appointment as sustainability officerlies in the fact that “people” and “sustainability” are closely intertwined. Since people’s activities and choices
exert an impact on sustainability, both positively and negatively, everyone’s cooperation and involvement are
essential for the achievement of sustainability. In addition, it is initiatives for sustainability that will ensure society
and the environment for future generations, and it is current team members (employees), in other words, us, who
drive these initiatives. Since “people” and “sustainability” are fundamentally linked in this way, it only makes
sense to combine the leadership of both into a single role.
Broadly speaking, I believe that I have three missions as the CPSO. First, I seek to connect and unite people
across regions and organizations, both inside and outside of TDK. In my professional life, I have worked in sales,
operations, the supply chain, and human resources for over 30 years, including more than 20 years at TDK. I
have seen people utilize technological innovations and new skills to grow and evolve their business. In these
efforts, there has always been interaction among people. No doubt future social changes are going to become
even more rapid and unpredictable. In these circumstances, the key to realizing sustainable change is going to
be human resources. By connecting people, we can create new value. In that sense, I believe that I will be able
to fully display my experience and expertise in this position.
Second, in cooperation with executive teams, I intend to formulate more effective sustainability strategies.
Because to achieve our Sustainability Vision of “Technology for the well-being of all people,” TDK wants not only
to maximize profits but also to invest in technologies for the building of a sustainable future and to exert apositive impact on stakeholders, including customers, team members, communities, and the planet. To do so,
we need to adopt a holistic and long-term perspective and make our business practices sustainable, balancing
the social, environmental, and economic aspects of our operations. In other words, it is necessary for us toadopt strategies aligned with the TDK Group’s overall goals, including our response to climate change, thebuilding of sustainable supply chain practices, and the development of products and services that can create amore sustainable future for all people.

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Sustainability Report 2023

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Third, I intend to engage stakeholders outside of TDK, promoting the company’s sustainability initiatives andserving as a spokesperson for the organization’s sustainability efforts. I want to play a role in building relations oftrust with stakeholders and further advancing TDK’s activities by communicating TDK’s above-mentioned
strategies and initiatives actively and transparently.
Furthermore, for the promotion of sustainability, it is essential for as many people as possible to continue actingwith an awareness of, and interest in, the meaning of sustainability for us, for future generations, and for theplanet as a whole and the role they should play in the achievement of sustainability goals. To encourage suchawareness, at present project members from various departments, led by the Chief Digital Transformation
Officer (CDXO), have come together to launch a strategic DX promotion initiative named “DX for Sustainability +”(focusing on DX-Enabled Sustainability & Engagement). One of the primary objectives of this project is toenhance all TDK team members’ awareness of sustainability as part of the digital transformation journey andpromote our sustainability efforts both internally and externally.
Additionally, I plan to connect the Human Resources HQ and Sustainability Promotion HQ teams to develop
training programs that build sustainability awareness and educate employees on sustainable practices. Throughthese programs we will encourage employees to adopt sustainable behavior, which ultimately will have apositive impact not only on TDK but also on the world in which we live.
Our challenge to realize sustainability still faces a long road ahead. By uniting and working together, we cancreate a more equitable, sustainable, and resilient world. TDK actively and transparently shares our vision,
efforts, accomplishments, and data on our sustainability website. Please continuously visit our website and give
us your feedback.
Andreas Keller

Society

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10

Sustainability Report 2023

Sustainability
CONTENTS

All you need to know about TDK’s sustainability!

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

GovernanceAll you need to know

about TDK’s sustainability!

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Below we introduce TDK’s sustainability as

concisely as possible so that as many people
as possible can understand it.

11

Sustainability Report 2023

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

What isTDK’s objective?
Sustainability Vision

Technology for
the well-being of
all people

TDK Group strives to restore and protect the global environment
while promoting respect for human rights. Through its

innovative core technologies and solutions, TDK Groupadvances the development of a sustainable society andchampions well-being for all people.

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By capitalizing on the core technologies that we havenurtured since our founding, such as ferrite-based material
technologies and process technologies, we aim to realize

the society depicted in the Sustainability Vision. We hope
to be an indispensable presence in this endeavor.

12

Sustainability Report 2023

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

How will TDK realize

the Sustainability Vision?

Our aim is to contribute to the solution of social issues
in two ways, that is, contributions through our

products and contributions through our businessactivities, and thereby realize the society depicted in
the Sustainability Vision.
Contributions through products

TDK is supplying value through various products and technologies toward the solution of social issues.

Climate-change initiatives

Environment

Society

Governance

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Products contributing to promoting
the use of renewable energy andCutting-edge technologies

expanding the diffusion of e-mobility

to realize low power consumption

Promotion of people’s healthy lives

Realization of a safe and comfortable life

Products contributing tostrengthened safe-driving

Products safeguarding homes

functions in automobiles

with high security functions

Products contributing to

Products supporting safe andthe diffusion of healthcomfortable transport systems

monitoring systems

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Sustainability Report 2023

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Contributions through business activities

In conducting our business, TDK contributes to the solution of social issues through all kinds of activities
with the aim of realizing a sustainable society.

Environmental Activities

Social and Environmental Considerationsat Manufacturing Sites

Ratio of sites introducing electricity

Ratio of sites implementing CSR self-checks

derived from renewable energy

39.9(fiscal 2023)

100%(fiscal 2023)%

Sustainability
Management

Environment

Society

Based on the TDK Environmental Vision 2035,

TDK strives to understand issues and makefrom a life-cycle perspective by 2035,” TDK

framework comprising self-assessments, audits,which aims to “halve the CO2 emissions intensity

continuous improvements in a three-stage

undertakes various efforts to reduce theand training and dialogue.

environmental load.

Governance

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Human Resource Development

Social and Environmental Considerationsin the Supply Chain

Annual training hours per employee

23.4(fiscal 2023)

CSR-compliant supplier ratio

100

hours

(fiscal 2023)%

To continue growing in a sustainable manner, it

As a global enterprise with a supply chain

in-house and to fully utilize them. We provide

promote initiatives in consideration of society

spreading worldwide, TDK makes efforts tois important for TDK to foster human resources

and the environment not only at our own sites

training and educational programs so that team

but also at our business partners.

members (employees) can strengthen skills thatare essential to adapt to workplace and socialchanges.

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Sustainability Report 2023

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

Where is

TDK operating?
TDK has established sites, including factories, researchand development institutes, and sales offices, in morethan 30 countries and regions. We operate a total ofmore than 250 sites. Our approximately 103,000 teammembers are working hard toward the realization of
TDK’s vision. (Fiscal 2023 figures)

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

EMEA*

Asia

210.3 billion yen（9.6%）

1,797.7 billion yen（82.4%） 172.7 billion yen（7.9%）

Sales by region

No. of employees by region

8,218（8.0%）

Sales by region

No. of employees by region

90,526（88.0%）*EMEA：Europe, the Middle East and Africa

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15

Americas

Sales by region

No. of employees by region

4,164（4.0%）

Sustainability Report 2023

Sustainability | Sustainability Management

Corporate Philosophy and Sustainability Vision

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

TDK Value Structure

Corporate Philosophy

Long-Term Vision

Medium-Term Plan

Group Governance

TDK Value Structure
Since its foundation in 1935, TDK has conducted business with the aim of solving social problems. As of March
2022, it has grown into a global business enterprise with Group sales of approximately ¥1,900 billion and about
117,000 members worldwide. As a leading manufacturer of electronic components, TDK continuously creates
innovative and state-of-the-art technologies and products. To continue creating value even more than a century
after its foundation, we formulated a long-term vision and strategy looking 10 years into the future andestablished a Medium-Term Plan and the TDK Group materiality. We have also created governance systems to
support the realization of these. We refer to this as the TDK Value Structure, have reaffirmed its status as a pillarof all activities by employees, and will hand it down to the future generations who will be responsible for TDK in
the future.
Related link
Integrated Reports

Governance

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Sustainability Report 2023

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

Corporate Philosophy
In 1930 Dr. Yogoro Kato and Dr. Takeshi Takei at the Tokyo Institute of Technology invented ferrite, a magnetic
ceramic compound derived from iron and other oxides. Kenzo Saito, TDK’s first president, was deeply
impressed by Dr. Kato’s remark that “A real industry is a creative industry,” and on December 7, 1935, hefounded Tokyo Denki Kagaku Kogyo K.K. (present-day TDK) to commercialize ferrite. At that time the potential
use of ferrite was unknown, so the establishment of the company was a courageous venture in pursuit of avision. As a result of joint research and development by the Tokyo Institute of Technology and TDK, a
component called a ferrite core was realized, and in 1937, ahead of the rest of the world, it was put to use inJapanese wireless communication equipment, radios, and so on. By the end of World War II, a total of fivemillion units had been shipped, and the company had acquired trust. This founding spirit of creativity, of“creating values that do not yet exist in the world from the level of materials,” has been inherited as TDK’s DNA.
Our corporate motto, established in June 1967, reflects this founding spirit.

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

GovernanceCorporate Motto

Contribute to culture and industry through creativity
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Corporate Principles
Vision : Always take a new step forward with a vision in mind. Creation and construction are not born without vision.
Courage : Always perform with courage. Performing power is born by confronting contradiction and overcoming it.
Trust : Always try to build trust. Trust is born from a spirit of honesty and service.

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Sustainability Report 2023

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Long-Term Vision
Sustainability Vision
Various issues exist in the society surrounding the TDK Group, including environmental problems, such as
climate change, energy, and the exhaustion of resources, and social problems, such as aging and the digital
divide. TDK will contribute to solving these issues, in other words, to building a sustainable society for future
generations.
As well as aiming to solve social problems through our business on the basis of our corporate philosophy, which
is our fundamental stance, we have formulated a new TDK Group’s Sustainability Vision. This vision proclaims
that by fully utilizing TDK’s proprietary core technologies and solutions, we will “advance the development of asustainable society and champion well-being for all people.” In the formulation of this vision, we again assorted
the social environment surrounding us from a long-term perspective and studied the potential of the TDKGroup’s strengths and resources. In the process, we heard the opinions of not only management but also
external experts.
We will continue to share this vision throughout the Group, put it into practice in our business, and consider andimplement specific measures toward the realization of a happy society.

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Furthermore, to realize the Sustainability Vision, the TDK Group advocates a sustainability policy.
Based on the concept of Value Creation, we will strive to achieve both a sustainable society and corporate
growth.
• Through our products, solutions, and activities in the entire supply chain, we will tackle the solution of globalscale issues set out also in the Sustainable Development Goals, such as climate change and human rights.
• We will build relations of trust with society through stakeholder engagement.

Search / Index• We will promote empowerment and transparency in all Group companies.

Related link
Seven Seas

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Sustainability Report 2023

CONTENTS

Medium-Term Plan
Please see the link below.
Related link

Editorial Policy

Message fromthe President
and CEO

CPSO
MessageMedium-Term PlanTDK Group’s Materiality
Please see the link below.
Related link
TDK Group’s Materiality

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Group Governance
Please see the link below.
Related link
Corporate Governance

Environment

Society

Governance

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19

Sustainability Report 2023

Sustainability | Sustainability Management

TDK Group’s Materiality

CONTENTS

Editorial Policy

Materiality, promotion structure, identification process, progress report list
Materiality and Promotion Structure

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Materiality Identification Process

Materiality Progress at a Glance

Desirable vision of each field, significance, GM messages
EXDX

Quality Management

HR Management

Supply Chain Management

Opportunity and Risk Management

Pursuing Both Delegation of Authority and Internal
Controls

Asset Efficiency Improvement

Environment

Society

Governance

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20

Sustainability Report 2023

Sustainability | Sustainability Management | TDK Group’s Materiality
CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Materiality and Promotion Structure
TDK Group’s Materiality
In fiscal 2021, the TDK Group reviewed our materiality in conjunction with preparing our new Medium-Term Plan.
In order to both achieve the goals of the Medium-Term Plan and balance sustainable society with sustainablecorporate growth, we identified materiality by defining key issues as those which should be addressed by giving
them top priority in investment of the organization’s management resources.
Under Value Creation 2023, our Medium-Term Plan, we continue our approach of contributing to society while
creating Commercial Value (achieving our growth strategy), Asset Value (improving asset efficiency), and Social
Value (improving our value to society), aiming for business growth as a result. Social Value—the goal of asustainable society and company—in particular we believe is the starting point of a cycle for creating the othertypes of Value.
EX (Energy transformation) and DX (Digital transformation), set forth in our materiality, are the business areasthat TDK focuses on for social value creation and corporate growth, areas in which we can create value forsociety through the Group’s technology and products. We are striving to maximize Social Value primarily inthese two areas by developing a system within the Company to generate products based on the issues raised in
the SDGs.
Quality management, human resource management, supply chain management, opportunity and risk
management, pursuing both delegation of authority and internal controls, and asset efficiency improvement are
the areas TDK has positioned as the basis for value creation in the fields of EX and DX.
These areas intersect on our materiality diagram, indicating that there is a correlation between the two.

Governance

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Sustainability Report 2023

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Materiality Promotion Structure
To continuously improve the materiality, a PDCA cycle is implemented by responsible function to be in charge ofeach materiality theme. Those functions establish goals to be achieved over the next three years, action items,
implemented functions and the KPIs.

Environment

Society

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22

Sustainability Report 2023

Sustainability | Sustainability Management | TDK Group’s Materiality

Materiality Identification Process

CONTENTS

Editorial Policy

The Materiality Identification Process
The TDK Group’s materiality was identified through the following steps.

Message fromthe President
and CEO▼ STEP1
Understanding and organizing the issues

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

An internal draft was prepared based on the SDGs, GRI, RBA (Responsible Business Alliance), and survey itemsof leading ESG rating agencies; issues raised in the Group’s long-term strategy review materials; risks reported
in the annual securities report; our key CSR issues and other information.
▼ STEP2
Gathering outside opinion
We gathered opinions on our draft materiality through dialogues and written opinions. These can be seen here.
Dialogue: Crafting Materiality with Social Value at the Core
Written opinion regarding Materiality (initial internal draft)Society

Governance

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Search / Index▼ STEP3Internal discussion
We prepared another internal draft based on the outside opinions. The completed draft was discussed again by
the Executive Committee, and once approved was submitted to the Board of Directors. To achieve the goals of
our Medium-Term Plan for fiscal 2022-2024, we decided to take a full-scale approach to engaging in these key
issues, which should be addressed by giving them top priority in investment of the organization’s management
resources.
▼ STEP4
Internal development
We began by assigning a division to take responsibility for each materiality theme. Under the leadership of thosedivisions, we then developed a vision for three years hence, items to be implemented to achieve that vision,
divisions responsible for implementing those items, KPIs, and target figures. These were finalized throughdiscussions with management. Each division reports to management monthly on its progress, and works tocontinually improve their efforts through implementation of a PDCA cycle.

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Sustainability Report 2023

Sustainability | Sustainability Management | TDK Group’s Materiality

Materiality Progress at a Glance

CONTENTS

Editorial Policy

EX: Contribution to energy and environmental solutions by minimizing waste heat and noisewith electronic devices

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Effective use of energy and expanded use of renewable energy toward the realization of net zero CO2 emissions
by 2050
KPIs
CO2 emission intensity from energy use

Sustainability
Management

Reduce by 12% compared withfiscal 2015

Progress of Fiscal 2022
Reduced 32%

Environment

Research and publish an internal marketing therespected area

Medium-term target*(Fiscal 2022-2024)

Search / Index

Reduced 30.7%

1 report / year

Progress of Fiscal 2022

Progress of Fiscal 2023

We researched technology andmarket trend of xEV market. Findings
were published as an internal reportand been shared among TDK stakeholders. We also started
investigating potential TDK
technologies to support renewableenergy market. We’ll continue thestudies and will publish an internal
comprehensive market report in
2022.

We researched technology andmarket trend of EX such as
renewable energy, alternative energy
and xEV. Findings were published as
an internal report.

We started investigating potential
opportunity in Renewable Energy
market and continue in 2022.

We found potential opportunity of
TDK sensors which can contribute to
renewable energy. We will move tofeasibility study after investigating
market volume. We also found TDK
technology which can contribute to
new technology of xEV and started
market research.

Governance

External Evaluation/ Status of inclusionin the ESG Index

Progress of Fiscal 2023

Provide products and solutions to create clean energy and realize a zero-carbon society
KPIs

SocietyMedium-term target*(Fiscal 2022-2024)

Find potential opportunity in Renewable Energy
market and incubate new business, product orsolution in TDK

By the end of 2023

Provide products and solutions to realize an energy efficient society by storing, converting, and controllingenergyKPIs

Research and publish an internal marketing therespected area

Find potential opportnity for Renewable Energy
market and incubate new business, product orsolution in TDK

Medium-term target*(Fiscal 2022-2024)

Progress of Fiscal 2022

Progress of Fiscal 2023

1 report / year

We researched technology trend andpotential market for TDK.
We’ll continue the studies to otherapplications in 2022.

We researched technology andmarket trend of EX such as energy
storage. Findings were published as
an internal report.

By the end of 2023

We will continue investigation in2022.

We made market research of energy
management system and TAM
analysis of TDK products in this areaand support strategic decision ofbusiness group.

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CONTENTS

DX: Promotion of the digitalization of society by adding software technology to material scienceand process technology

Editorial Policy

Message fromthe President
and CEO

Provide products and solutions to help build resilient communication network infrastructure
KPIs

Medium-term target*(Fiscal 2022-2024)

Progress of Fiscal 2022

Progress of Fiscal 2023

Research and publish an internal marketing therespected area

1 report / year

We researched technology andmarket trend of AR/VR application.
Findings were published as aninternal report and been shared
among TDK stake holders.

We conducted research ontechnology trends and the market inregard to AR/VR/MR and issued aninternal report. We held webinars inhouse and AR/VR experience
sessions, and shared the importanceof the metaverse and UX with therelevant parties within TDK.
We also conducted research ontechnology trends in 6G
telecommunications technology andissued an internal report.

Find potential opportunity to support resilient
communication network infrastructure andincubate new business, product or solution in
TDK

By the end of 2023

New product development for AR/
VR project were engaged. We’ll
continue to support AR/VR andexpand investigation to other areas
in 2022.

TDK has come up with technologies
that can make a contribution to 6G
telecommunications and begun
development to verify its feasibility.
Multiple other items are in progress.

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Provide products and solutions for supporting robotics and mobility to promote the enhancement andcomplementation of human capabilities
Society

KPIs

Medium-term target*(Fiscal 2022-2024)

Progress of Fiscal 2022

Progress of Fiscal 2023
We conducted research ontechnology trends and the market
related to robotics, including
autonomous driving, and issued aninternal report.

GovernanceResearch and publish an internal marketing therespected area

1 report / year

We researched technology andmarket trend of on board highperformance computing and robot.
Findings were published as aninternal report and been shared
among TDK stake holders.

External Evaluation/ Status of inclusionin the ESG Index

Find potential opportunity to provide products
and solution for robotics and mobility andincubate new business, product or solution in
TDK

By the end of 2023

We engaged in potential new
business incubation projects, we willcontinue support in 2022.

We have begun a review of a sensor
solutions business that include data
analysis algorithms tht could beapplied to autonomous driving andindustrial robotics.

Progress of Fiscal 2022

Progress of Fiscal 2023

Search / Index

Promote digitalization at TDK
KPIs
Efforts to strengthen the integrated business
management process from procurement todelivery, and the seamless infrastructure tovisualize supply-chain conditions underpinningthat process, so as to improve 2CX andaccelerate the practice of ESG/SDGs

Speedup of work by introducing a globallycommon IT platform and strengthening of the
training of human resources to use it

Medium-term target*(Fiscal 2022-2024)

Realize in pilot product businesses
during fiscal 2024

As a first step, implemented work
reforms relating to transactions
between Group companies

To improve efficiency in the value
chain activity of our global base,make it possible to visualize at asingle glance the status ofeverything from material purchasing
to sales.

• Complete deployment of a global
collaboration platform• Foster data analysis humanresources• Completed deployment of a global
collaboration platform to main
companies• Introduced a training program forthe fostering of data analysis
human resources

Realized by promoting citizen
development contributions tobusiness through expanding ourglobal collaboration platform anddata analytics platform use.

25

Sustainability Report 2023

CONTENTS

Quality Management

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Pursue zero-defect product quality
KPIs

Medium-term target*(Fiscal 2022-2024)

Progress of Fiscal 2022

Progress of Fiscal 2023

Implementation of quality education at all
applicable sectors

Promote the globalization of quality
education utilizing DX

Started learning with digitalized
educational content

Created and deployed online quality
education content in collaboration
with the global HR function andoverseas sites

Management of certification maintenance at all
applicable sites (ISO9001)

Certification maintenance ratio:
100%

100%

100%

Consideration of the development of systems
by utilizing AI• Develop a system for detecting
signs of equipment failure• Consider the development ofdesign screening by AI search• Considered elemental technology
for indicative detection• Introduced an automatedmonitoring tool by deep learning• Developed an automatic failuremode classification system as anelemental technology for indicative
detection• Investigated introduction of AI into
design review and develop
prototypeMedium-term target*(Fiscal 2022-2024)

Progress of Fiscal 2022

Progress of Fiscal 2023

Implement measures for each cause• Promoted thevisualizationPromoted thevisualization of foreign objects
through in-process activities toreduce the presence of foreign
objects• Introduced an analytical tool tocounter the fragility of software
implemented in products• Implemented new quality diagnosis(processes, equipment) by
Headquarters functions• Issued a manual for small-group
activities and promoted them

• Implemented improvement
activities for defects caused byforeign objects• Established product security
measures mechanism in Iot
products (confirmed in design
review)• Deployed new quality diagnostics(process, equipment) to China by
Headquarters functions• Horizontally deployed bestpractices for small-group activities

Sustainability
Management

Reduce quality costs
Environment

KPIs

Society
Quality improvement activities for each cause

Governance

External Evaluation/ Status of inclusionin the ESG Index

Maximize customer satisfaction with product and service quality
KPIs

Search / Index“A rank” in degree of customer satisfaction*Among the total of supplier evaluations
obtained from customers, “A rank” means theratio of customers expressing satisfaction.
1. Visualization of supply chain managementfrom a consolidated perspective• Production, sales, and inventory (PSI)
information by level• Business lead time
2. Formation of inventory holding standards
based on supply policy and strengthening ofmanagement function

Medium-term target*(Fiscal 2022-2024)

At least 95%

Build new work infrastructure forconsolidated supply-demand
management in applicable productgroups and strengthen visualizationof the flow of products andinformation
Furthermore, redefine work rules andendeavor to entrench delivery/
inventory management infrastructure
to enable speedy decision making

26

Progress of Fiscal 2022

Progress of Fiscal 2023

96.8%

95.0%

1. Increased the accuracy of PSI
information in existing infrastructure

1. Continued to increase theaccuracy of PSI information inexisting infrastructure

2. Completed concept formulation
toward the building of consolidated
supply-demand management
infrastructure

2. Completed new operation
designing and PoC (Proof ofConcept) for building consolidated
supply-demand management
infrastructureSustainability Report 2023

CONTENTS

HR Management

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Develop human resources to lead the TDK Group
Medium-term target*(Fiscal 2022-2024)

KPIs

Society

Progress of Fiscal 2023

Number of GEMP (Global Executive
Management Program) participants

10-15 participants / cohort linked to
3 year mid-term plan

13 participants

10 participants have been selected
for next cohort

Number of Global AMP (Global Advanced
Management Program) participants

20-25 participants / year

0 (26 candidates’ participation in the
program was postponed to fiscal
2023 due to inability to meet face-toface.)

19 participants

Number of GMP (Global Management
Program) participants

40-50 participants / year

44 participants

44 participants

Number of TCDP (Territorial Career
Development Program) participants

80-100 participants / year

89 participants

100 participants

Foster greater diversity and inclusion
Medium-term target*(Fiscal 2022-2024)

KPIs

Environment

Progress of Fiscal 2022

Progress of Fiscal 2022

Progress of Fiscal 2023

Attendance ratio of workshop for managers(Japan)70%/year

98%/year

97%/year% of female candidates for promoting tomanager position (Japan)

4%/year

10.3%/year

8.9%/year

Female managers ratio (Japan)

3%

3.7%

4.3%

Improve employee engagement and job satisfaction to attract and retain talented employees
Governance
KPIs

External Evaluation/ Status of inclusionin the ESG Index• Prepare the concept in fiscal 2022.
• Roll-out to all applicable TDK groupcompanies in fiscal 2023.

Medium-term target*(Fiscal 2022-2024)

Progress of Fiscal 2022

Prepare the concept in fiscal 2022.

Preparation done in fiscal 2022 forthe implementation

Search / Index

27

Progress of Fiscal 2023
Rolled-out to all applicable TDK
group companies in fiscal 2023

Sustainability Report 2023

CONTENTS

Supply Chain Management

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Enhance global procurement capabilities and mechanisms
Medium-term target*(Fiscal 2022-2024)

KPIs

Progress of Fiscal 2022

Visualization and utilization of supplierinformation and purchasing data

Build a platform to uniformly
visualize the TDK Group’s supplierinformation and purchasing data andutilize it in procurement strategy

Visualized supplier data of main
subsidiaries

Consolidated procurement data ofsubsidiaries within the group (inprogress)

Reduction of procurement risks for high-risk
parts and materials

Conduct supply chain risk analysis
and implement countermeasures

Identified high-risk parts andmaterials

Promoted risk mitigation of high-risk
parts/materials

Conformity with global common rules

100%

Built a monitoring mechanism andbegan checking the state ofestablishment of individual rules

Confirmed and corrected individual
regulations of subsidiaries

Progress of Fiscal 2022

Progress of Fiscal 2023

Ensure responsible procurement
Medium-term target*(Fiscal 2022-2024)

KPIs

Environment

Ratio of suppliers recognized as procuring the
3TG minerals (tin, tantalum, tungsten, and gold)
from RMAP-conformant refineries (RMAP:
Responsible Minerals Assurance Process)Society

Ensure societal and environmental consideration in the supply chain

At least 92%
Disseminate and instill the idea of
responsible mineral procurement
among suppliers

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

92%

Medium-term target*(Fiscal 2022-2024)

KPIs

Governance

Progress of Fiscal 2023

86.5%

Progress of Fiscal 2022

Progress of Fiscal 2023

CSR compliant supplier rate

100%

99%

100%

Implementation rate of CSR self-checks atmanufacturing sites

100%

100%

100%

Implementation rate of labor, and ethics risk
assessments at manufacturing sites

100%

100%

100%

Ratio of manufacturing sites implementing
RBA-authorized audits (RBA: Responsible
Business Alliance)

25%

10%

34%

Ratio of manufacturing sites implementing
RBA-authorized audits, customer CSR audits,or CSR assessment based on the RBA VAP
Operations Manual at least once every three
years

100%

24%

65%

Provision of opportunities for training throughe-learning or on-site training, including
dialogue

Implement every year

Provided necessary training
opportunities globally

Provided necessary training
opportunities globally28

Sustainability Report 2023

CONTENTS

Opportunity and Risk Management

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Identify and capture business opportunities effectively by strengthening marketing capability with full use ofdigital technology
KPIs

Medium-term target*(Fiscal 2022-2024)

Progress of Fiscal 2022

Progress of Fiscal 2023

Number of value adding content topics and/or
landing pages suitable for inbound marketing

Enhance technical writing capability(resources/team/process) and create
content and/or landing pages for
inbound marketing purposes for TDKgroup products, solutions &technology globally.

Reinforced the content creation
capability through strategic
recruiments and published value
adding content to our stakeholders

Achieved an increase in the amountof new content and improvements inquality

Generation of account and contact level leads

Methods, capability & process togenerate leads, qualify them and runlead nurturing, while strictly
complying with privacy legislation.

Operations running for leadgeneration and nurturing in global
and local platforms. Privacy
preservation platform evaluation
initiated for secure lead sharing with
relevent internal stakeholders.

Acquired leads in global and local
platforms, and conducted nurturing.
Conducted an evaluation of privacy
protection platforms for sharing leadinformation safely with the relevant
parties in-house.

Data type, quality and quantity that can beturned into business intelligence

Business intelligence utilisingmultimodal data analytics. Particularattention will be put on privacy
preserving data analytics in order tostrictly protect our customer data.
Data driven market insight andrecommendations will be provided.

Initiated evalutation of current status
for privacy preserving plaform
requirements, and have continued
working on customer data platform
further development.

Conducted an evaluation with regard
to requests for the current privacy
protection platform. Also continued
further development of our customer
data platform.

Progress of Fiscal 2022

Progress of Fiscal 2023

Implement every year

Identified business-related risks,
assigned sections responsible forresponding, and checked thefrequency and impact of riskoutbreaks
Verified the risk response fragility ofrisk owners

Reassessed the assignments of therisks response department inproportion to organizationalchanges, and based on changes inthe external environment and thestatus of risk response at TDK madean assessment of remaining risks.
Evaluated the status of risk responseat each risk owner.

Implement during fiscal 2022

Completed risk scenarios. Disclosed
detailed risk scenarios throughdisclosure in annual securities reportand reply to questionnaire of the
CDP (www.cdp.net)

Disclosed our climate change risk
scenario in our securities reports,
and presented the details in the formof responses to the CDPquestionnaire (https://www.cdp.net/).

Sustainability
Management

Environment

Strengthen the group’s risk management capabilities
Society
KPIs

Governance

Implementation of risk identification andevaluation and assignment and review of risk
supervisory sections

Medium-term target*(Fiscal 2022-2024)

External Evaluation/ Status of inclusionin the ESG Index

Clarification of climate-change risk scenarios

Search / Index

29

Sustainability Report 2023

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Pursuing Both Delegation of Authority and Internal Controls
Ensure speed and transparency in operations, based on the clearly defined roles, authorities and responsibilitiesof each organization
Make management systems of each group company more effective and efficient, aligned with the group’s
unified policy
Medium-term target*(Fiscal 2022-2024)

KPIs

Clarification of criteria for selection ofsubsidiary officers and implementation of
officer selection based on these criteria

Ensure that all subsidiary officer
candidates recommended byresponsible sections conform withselection criteria

Progress of Fiscal 2022

Selected subsidiary officers after
compliance checks

Defined the competencies that are
required of Group officers, including
the officers at our subsidiaries.
Through compliance checks,
selected the officers at our
subsidiaries.

Implement appropriate post-merger integration (PMI) for acquired companies
Medium-term target*(Fiscal 2022-2024)

KPIs

Progress of Fiscal 2022--

Progress of Fiscal 2023
Did due diligence prior toacquisitions based on eachcorporate function.
Based on a list consolidating theitems with which companies who are
newly part of the Group mustcomply with the grace periods forcoming into compliance, carried out
PMI activities of our US subsidiaryacquired in February.

Sustainability
Management-

Environment

Society

Progress of Fiscal 2023

Asset Efficiency Improvement
Rebuild business portfolio
Optimize facilities and manufacturing sites

Governance
KPIs

External Evaluation/ Status of inclusionin the ESG Index

Medium-term target*(Fiscal 2022-2024)

Progress of Fiscal 2022

Progress of Fiscal 2023

OP margin

12% or more

8.8%

7.7%

ROE

14% or more

11.6%

8.3%

Capex (3 years)

750 billion yen

291.3 billion yen

275.7 billion yen

Search / Index

30

Sustainability Report 2023

Sustainability | Sustainability Management | TDK Group’s Materiality
CONTENTS

Editorial Policy

Message fromthe President
and CEO

Energy transformation (EX): Contribution to energy andenvironmentalsolutions by minimizing waste heat and noise withelectronic devices
Overview (Themes, responsible department, goals,
KPIs, and progress)

Background to Identification as Materiality
Department Head Messages

CPSO
Message

Background to Identification as Materiality
All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Significance for TDK
Energy transformation (EX), which TDK advocates, sets its sights on the problem of climate change, which is anurgent issue worldwide. It is one of the issues that the TDK Group should address in unison in order to achieveboth a sustainable society and corporate growth. A lot of stakeholders including customers and investors pay
close attention to climate change countermeasures, which are one of the factors in the selection of business
partners and investment destinations. Therefore, the TDK Group has identified EX as materiality. We are surethat the steady implementation of EX will have a substantial effect on business and fund procurement.
Significance for Society

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

TDK’s EX initiatives are aimed at revitalizing and protecting the global environment and creating a pleasant andsafe society. As stated in TDK Environmental Vision, they will lead to operations under the environmental load
within natural circulation. TDK, which is a maker of electronic components in the supply chain midstream,
believes that tackling EX as an important issue in management is also vital in terms of accelerating climatechange countermeasures by society at large.
Furthermore, we believe that TDK’s products and solutions can contribute to the creation of clean energy andthe realization of an energy efficient society and can exert a positive impact on society not only in the production
but also in the use phase.

Search / Index

31

Sustainability Report 2023

CONTENTS

Overview (Themes, responsible department, goals, KPIs, and progress)
Themes

Editorial Policy

Message fromthe President
and CEO

Effective useof energy andexpandeduse ofrenewableenergytoward therealization of
net zero CO2emissions by
2050

Responsible
department

Safety &Environment
Group

Goals in 3 years

Action items

CO2 emission intensityfrom energy use(Scope 1, 2) is reducedby 12% comparedwith base year (fiscal
2015).

Aim at halving CO2
emission intensity, as
advocated in the TDK
Environmental Vision2035 through thefollowing two activities• Strengthen energy
efficiency by
improvingproductivity at
manufacturing sites• Expand the use ofrenewable energy

CPSO
Message

KPIs

CO2 emission
intensity fromenergy use

Medium-termtarget*(Fiscal 2022-2024)

Progress of Fiscal
2022

Progress of Fiscal
2023

Reduce by 12%compared withfiscal 2015

Reduced 32%

Reduced 30.7%

1 report / year

We researched
technology andmarket trend ofxEV market.
Findings were
published as aninternal report andbeen shared
among TDK stakeholders. We also
startedinvestigating
potential TDK
technologies tosupportrenewable energy
market. We willcontinue thestudies and will
publish an internal
comprehensive
market report in
2022.

We researched
technology andmarket trend of
EX such as
renewable energy,
alternative energy
and xEV. Findings
were published as
an internal report.

By the end of2023

We started
investigating
potential
opportunity inRenewable
Energy market
and continue in2022.

We foundpotential
opportunity of
TDK sensors
which cancontribute to
renewable energy.
We will move tofeasibility study
after investigating
market volume.
We also found
TDK technology
which cancontribute to newtechnology of xEVand started
market research.

1 report / year

We researched
technology trend
and potential
market for TDK.
We will continue
the studies toother applicationsin 2022.

We researched
technology andmarket trend of
EX such asenergy storage.
Findings were
published as aninternal report.

We will continue
investigation in2022.

We made market
research ofenergymanagement
system and TAM
analysis of TDK
products in thisarea and support
strategic decisionof businessgroup.

All you need toknow about TDK’s
sustainability!

Research andpublish an internalmarketing therespected area

Sustainability
Management

Environment

Society

Provideproducts andsolutions tocreate clean
energy andrealize a
zero-carbon
society

Corporate
Marketing &Incubation
HQ

The portfolio of related
technologies andproducts is regularly
updated to contributeto the use of clean
energy, such as solar,
wind, hydro, andgeothermal power.

Study renewableenergy and alternative
energy market andtechnology to findpotential new business
opportunity for TDK

Find potential
opportunity inRenewable
Energy market
and incubate new
business, productor solution in TDK

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Provideproducts andsolutions torealize anenergyefficientsociety bystoring,
converting,andcontrollingenergyCorporate
Marketing &Incubation
HQ

The portfolio of related
technologies andproducts that
contribute to better
energy efficiency isregularly updated sothat TDK’s EX isrecognized by society.

Research andpublish an internalmarketing therespected area
Study energy transfer
and storage market
and technology to findpotential new business
opportunity for TDK*The targets run from fiscal 2022 through 2024 (ending March 31, 2024).

32

Find potential
opportnity for
Renewable
Energy market
and incubate new
business, productor solution in TDK

By the end of2023

Sustainability Report 2023

CONTENTS

Department Head Messages
Safety & Environment Group, Sustainability Promotion HQ

Editorial Policy

Message fromthe President
and CEO

Jason Mizell【Responsible Theme】• Effective use of energy and expanded use of renewable energy toward the realization of net zero CO2emissions by 2050

I think that TDK’s identification of and commitment to corporate materiality is extremely valuable for both TDK and society.
CPSO
Message

All you need toknow about TDK’s
sustainability!

The motivation required to entrench this approach and show achievements to stakeholders comes from the discovery ofchallenges toward realizing a sustainable society and deployment within the Group. For this purpose, it is important toarouse motivation in the Group as a whole by appropriately setting directions in line with TDK’s policy of empowerment
and transparency and sharing and deploying useful information.
Issues standing in the way of promoting the introduction of renewable energy include regionally different infrastructure,legislative systems, and procurement costs. To overcome these challenges, we will promote measures in accordance withconditions in each country and each region and in consideration of both total optimization and cost restraint.

Sustainability
Management

Furthermore, we will promote specific actions to achieve the Group-wide goal of raising TDK’s global ratio of renewableenergy introduction to 50% (Scope 2) by fiscal 2025, which is TDK’s interim target toward the goal of achieving net zeroCO2 emissions by 2050.

Environment

Corporate Marketing & Incubation HQSociety

Michael Pocsatko【Responsible Theme】

Governance

External Evaluation/ Status of inclusionin the ESG Index• Provide products and solutions to create clean energy and realize a zero-carbon society• Provide products and solutions to realize an energy efficient society by storing, converting, andcontrolling energy

The Corporate Marketing & Incubation HQ plays the role of TDK’s antenna, catching customer needs and disseminating
TDK’s technologies. Our mission is to transform data into information and intelligence and, based on that intelligence,create and incubate new products and solutions that do not exist in TDK’s portfolio. Our Goal is to accelerate “Value

Search / Index

Creation” by building bridges - communicating and collaborating across innovators both inside and outside the company.
This is creating a strong “Outside-In” perspective, a more customer-oriented approach and language.
While going beyond our organization and collaborating with all kinds of divisions both inside and outside TDK, we aim to
combine TDK’s technologies and create new value.
TDK’s EX and DX initiatives are an important activity responding to the demands of society. Essentially the technologies
developed by TDK are marvelous things that can contribute to the well-being of people. At the same time, these priority
fields are at the core of TDK’s long-term strategy and a vital factor in promoting our business plan Value Creation.
Going forward, we must create more customer-centered innovations, entrench the outside-in way of thinking in ourorganization, and realize 2CX (customer experience and consumer experience), which means providing experiences thatgo way beyond the expectations of customers.

33

Sustainability Report 2023

Sustainability | Sustainability Management | TDK Group’s Materiality
CONTENTS

Editorial Policy

Message fromthe President
and CEO

Digital transformation (DX): Promotion of the digitalization ofsociety by adding software technology to material science andprocess technology
Overview (Themes, responsible department, goals,
KPIs, and progress)

Background to Identification as Materiality
Department Head Messages

CPSO
Message

Background to Identification as Materiality
All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Significance for TDK
We believe that the promotion of digital transformation (DX), which means accelerating the digitalization ofsociety by adding software technology to material science and process technology, such as 5G, AR/VR/MR,
wearable devices, robotics, drones and data storage, is a field in which TDK can fully display its value in society.
Furthermore, for TDK itself, DX initiatives and the optimum utilization of a digital foundation will lead to thesustained creation of maximum output (timely supply of products in the volumes required by customers) using
minimum input (materials, energy, and other management resources).
If we could quickly and accurately grasp the potential needs of customers, we have an adequate grounding to
respond in a timely manner. If we could monitor the operating conditions of production lines and individual
equipment in real time, we could detect changes in the situation quickly and carry out maintenance beforehand,thus guaranteeing production as planned (= predictive maintenance). And in the case of changes in market or
customer demands, or the disruption of delivery from a supplier, if we could identify the disruptive factor quickly
and visualize changes in conditions, speedy and optimum decision making would be possible, and we could
take action swiftly.
By establishing robust business foundations fully utilizing digital power in this way, it would be possible for thewhole value chain to collaborate and function in a speedy, timely, and autonomous manner, which in turn would
lead to the sustained growth and enhanced corporate value of TDK.
Significance for Society
For the TDK Group, which advocates “Technology for the well-being of all people” as its long-term vision, DX
promoting the digitalization of society is a crucial factor. Through the development, manufacturing and supply of
products and solutions, we believe that TDK can contribute to the building of resilient communication network
infrastructure and the promotion of society’s digitalization. Promoting the digitalization of society will lead to therealization of new flexible workstyles and the alleviation of labor force shortages.
Furthermore, by linking the TDK Group’s digital foundation with customers and suppliers, it will be possible for
us to visualize and optimize operations, minimize various losses, and result in the realization of businessactivities that take social issues, including human rights, and the global environment into consideration.

34

Sustainability Report 2023

CONTENTS

Overview (Themes, responsible department, goals, KPIs, and progress)
ThemesResponsible
department

Goals in 3 years

Medium-termtarget*(Fiscal 2022-2024)

Progress of Fiscal
2022

1 report / year

We conducted
research ontechnology trends
and the market inregard to AR/VR/
MR and issued aninternal report. We
We researched
held webinars intechnology andhouse and AR/VR
market trend of AR/ experience
VR application.
sessions, andFindings wereshared the
published as animportance of theinternal report and metaverse and UX
been sharedwith the relevant
among TDK stakeparties within TDK.
holders.
We also conducted
research ontechnology trends
in 6G
telecommunications technology
and issued aninternal report.

By the end of 2023

TDK has come up
New productwith technologies
development forthat can make a
AR/VR project were contribution to 6G
engaged. We’ll
telecommunicacontinue to support tions and begun
AR/VR and expand development toinvestigation to
verify its feasibility.
other areas in 2022. Multiple other items
are in progress.

1 report / year

We researched
technology andmarket trend of on
board highperformancecomputing androbot. Findings
were published as
an internal reportand been shared
among TDK stakeholders.

We conducted
research ontechnology trends
and the market
related to robotics,
includingautonomous
driving, and issued
an internal report.

By the end of 2023

We engaged in
potential new
businessincubation projects,
we will continue
support in 2022.

We have begun areview of a sensor
solutions businessthat include data
analysis algorithms
tht could beapplied toautonomous driving
and industrial
robotics.

• Visualize supply chain
information to speed
up decision making
and streamline
business processes

Efforts tostrengthen the
integrated business
management
process fromprocurement to
As a first step,delivery, and theimplemented work
seamless
Realize in pilot
reforms relating to
infrastructure to
product businesses
transactions
visualize supplyduring fiscal 2024
between Group
chain conditions
companies
underpinning thatprocess, so as toimprove 2CX andaccelerate thepractice of ESG/
SDGs

To improve
efficiency in thevalue chain activityof our global base,make it possible tovisualize at a single
glance the status ofeverything frommaterial purchasing
to sales.

• Promote the combined
utilization of data
analysis platforms andcollaboration
platforms, andstrengthen humanresource development
for their realization,etc.

Speedup of work
• Completeby introducing a
deployment of a
globally common IT global
platform andcollaboration
strengthening of
platformthe training of• Foster data
human resources
analysis humanto use it
resources• Completed
deployment of a
globalcollaboration
platform to main
companies• Introduced a
training program
for the fosteringof data analysis
human resources

Realized bypromoting citizen
development
contributions tobusiness throughexpanding ourglobal collaboration
platform and data
analytics platformuse.

Action items

KPIs

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Provideproducts andsolutions to
help build
resilient communication
network
infrastructure

Research andTechnological targets for
publish an internal
network infrastructure
marketing the
supporting a ubiquitous
respected area
Study next generationsociety are defined andcommunication market
necessary technologies(B5G) and potential
Corporate
such as 5G mmW, 6G,
application such as
Marketing &HAPS (high-altitude
Society 5.0, UX of such
Incubation HQ platform stations), LEO
applications to find new(low earth orbit)
business opportunity forsatellites, submarine
TDK
cables are positioned in
TDK development
roadmap.
Find potential
opportunity tosupport resilient
communication
network
infrastructure andincubate new
business, productor solution in TDK

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Provideproducts andsolutions forsupporting
robotics andmobility topromote theenhancement
and complementation ofhumancapabilities

Research andpublish an internalmarketing therespected area

Gap between the
demand of society andStudy next generation
TDK products relating toof Robotics market
Corporate
the application ofincluding autonomousMarketing &robotics, mobility, anddriving to find new
Incubation HQ humanoid roboｗtics
business opportunity forare clearly identified and
Find potential
TDK
a roadmap to plug that
opportunity to
gap is established.
provide products
and solution for
robotics andmobility andincubate new
business, productor solution in TDK

Search / Index

PromoteSCM &digitalization at Management
TDK
System HQ

By fully utilizing digital
power, the speed andquality of operations aredramatically improved,
accelerating operational
excellence andsupporting therealization of 2CX.

*The targets run from fiscal 2022 through 2024 (ending March 31, 2024).

35

Progress of Fiscal2023

Sustainability Report 2023

CONTENTS

Department Head Messages
Corporate Marketing & Incubation HQ

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

Michael Pocsatko【Responsible Theme】• Provide products and solutions to help build resilient communication network infrastructure• Provide products and solutions for supporting robotics and mobility to promote the enhancement andcomplementation of human capabilities

The Corporate Marketing & Incubation HQ plays the role of TDK’s antenna, catching customer needs and disseminating
TDK’s technologies. Our mission is to transform data into information and intelligence and, based on that intelligence,create and incubate new products and solutions that do not exist in TDK’s portfolio. Our Goal is to accelerate “ValueAll you need toknow about TDK’s
sustainability!

Creation” by building bridges - communicating and collaborating across innovators both inside and outside the company.
This is creating a strong “Outside-In” perspective, a more customer-oriented approach and language.
While going beyond our organization and collaborating with all kinds of divisions both inside and outside TDK, we aim to
combine TDK’s technologies and create new value.

Sustainability
Management

TDK’s EX and DX initiatives are an important activity responding to the demands of society. Essentially the technologies
developed by TDK are marvelous things that can contribute to the well-being of people. At the same time, these priority
fields are at the core of TDK’s long-term strategy and a vital factor in promoting our business plan Value Creation.

Environment

Going forward, we must create more customer-centered innovations, entrench the outside-in way of thinking in ourorganization, and realize 2CX (customer experience and consumer experience), which means providing experiences thatgo way beyond the expectations of customers.

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Chief Digital Transformation Officer
Management System HQ
Roshan Thapliya【Responsible Theme】• Promote TDK’s digitalization

TDK Group aims to drive its DX activities through coordinated deployment of Digitalization and Information Technology (IT)
Search / Index

to enhance operational efficiency, safeguard information security/privacy and enrich value creation through Data-Driven
insights. The purpose of the newly formed Management System HQ is to ensure coherent governance and provide
tangible support to the entire TDK Group in IT and Digitalization to ensure success to our commitments to society throughDX and EX.
With the combined effort of strategic implementation of emerging digital technologies and consolidation of our existing IT
capabilities, as concrete steps forward, we have initiated companywide TDK DX Projects that will further enhance ourcapability to extract new opportunities and respond to related risks, putting emphasis on cybersecurity and data-privacy
that is vital to our data fabric and data analytics requirements. Putting emphasis on growth, efficiency and future
directions, the projects initially address “DX for Sales & Marketing” (focusing on New Opportunities), “DX for Operations”(focusing on Manufacturing Excellence)” and “DX for Sustainability +” (focusing on DX-Enabled Sustainability &Engagement), respectively.
The execution team of each project comprises from business companies (BCs) and Corporate HQs thereby ensuring an
engaged yet diverse teamwork that further enriches organizational transformation through fluidic international
participation, accentuating our uniqueness in people diversity and core competencies in sales, technology andmanufacturing. We are committed to meeting our financial and nonfinancial goals putting emphasis on evolving social
needs, customer expectations, related digital technologies and agile companywide deployment.

36

Sustainability Report 2023

Sustainability | Sustainability Management | TDK Group’s Materiality

Quality Management

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Overview (Themes, responsible department, goals,
KPIs, and progress)

Background to Identification as Materiality
Department Head Messages

Background to Identification as Materiality
Significance for TDK
The improvement of product quality and delivery performance will raise the satisfaction of 2CX (customer
experience and consumer experience) and lead to the further use of TDK products by customers for their
existing products and new development projects. As a result, it will contribute to expanding usage and shares atcustomers and enhancing orders received, sales, and income.
At the same time, by reducing in-process defects (quality failure costs) at manufacturing sites, it will contributeto the raising of Commercial Value and Asset Value in “Value Creation 2023,” the TDK Group’s Medium-Term
Plan.
Significance for Society
TDK products are developed, produced, and supplied to the market with the aim of realizing our Corporate
Motto of “Contribute to culture and industry through creativity” and our Sustainability Vision of “Technology for
the well-being of all people.” However, the occurrence of quality defects not only makes it difficult to achieve ourobjectives but also could lower customer satisfaction and cause damage to society.
Quality initiatives are an important factor for the realization of our Corporate Motto and Sustainability Vision.
Since this effort to realize our Corporate Motto and Sustainability Vision is also connected to the solution ofissues raised in the United Nations Sustainable Development Goals (SDGs), such initiatives have an importantsignificance in supporting TDK’s role in society.
We believe that stakeholders also expect TDK to lower risks relating to product quality and to continue thestable supply of high-quality products.

Search / Index

37

Sustainability Report 2023

CONTENTS

Overview (Themes, responsible department, goals, KPIs, and progress)
ThemesResponsible
department

Goals in 3 years

Action items

Editorial Policy

Message fromthe President
and CEO

CPSO
MessagePursue zeroQuality
defect product
Assurance HQ
quality

Manufacturing inbusiness divisions ismoving towards
upstream management
in order to eliminate
quality defects in thefour areas of design,material, process, andmanagement.

All you need toknow about TDK’s
sustainability!

• Strengthen the quality
education in design,development, andmanufacturing
departments• Manage and maintainthe certification at all
applicable sites• Promote activities toeliminate the four
quality defects(design, material,
process, andmanagement) byimproving quality
awareness andimprovement methods
and using AI

Sustainability
Management

KPIs

Medium-termtarget*(Fiscal 2022-2024)

Progress of Fiscal
2022

Implementation ofquality education at
all applicablesectors

Promote theglobalization ofquality education
utilizing DX

Created anddeployed online
quality education
Started learning
content inwith digitalized
collaboration witheducational content
the global HR
function andoverseas sites

Management ofcertification
maintenance at all
applicable sites(ISO9001)

Certification
maintenance ratio:
100%

100%

Measures have beentaken to strengthen
design reviews during• Promote 4M
design phase and to
improvement in
improve 4M (man,manufacturing aimed
machine, material,at reducing quality
method) atloss (improving yield)
manufacturing sites,• Promote small-groupand improvements areactivities
promoted autonomously
in business divisions.

Quality
improvement
activities for eachcause

Quality
Assurance HQ

The speed of response
to quality complaints is
improved by enhancing
and strengthening thesemiconductor analysis
functions and, in thecase of especiallyserious complaints, acompany-wide crossfunctional activity is
conducted to respondto the customer.

“A rank” in degreeof customer
satisfaction*Among the total of
supplier
evaluations
At least 95%
obtained from
customers, “Arank” means theratio of customers
expressing
satisfaction.

SCM
ReengineeringGroup• Strengthen supply
The visualization andchain visualization
refining of goods and• Standardize
information (changes inmanufacturing andcustomer demand,sales rules in demand
production fluctuations,management andetc.) in the supply chain
demand-supply
is undertaken to enableadjustment
quick decision making• Improve delivery
in a VUCA world toward
service level andthe realization of aefficiency byresilient supply chain
shortening businessbased on work rules
lead times andand data-driven
supplementing
operations.
inventory management
functions

Reduce quality Quality
costs
Assurance HQGovernance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Maximizecustomersatisfaction
with productand service
quality• Accelerate measures
to improve customer
satisfaction throughcross- functional
activities*The targets run from fiscal 2022 through 2024 (ending March 31, 2024).

38

100%

• Developed an
automatic failuremode• Considered• Develop a systemclassification
elemental
for detecting
system as antechnology for
Consideration ofsigns ofelemental
indicative
the development ofequipment failure
technology for
detectionsystems by utilizing • Consider theindicative• Introduced anAI
development ofdetection
automateddesign screening• Investigatedmonitoring tool by
by AI search
introduction of AI
deep learning
into design review
and develop
prototypeEnvironment

Society

Progress of Fiscal
2023

1. Visualization of
supply chain
management froma consolidated
perspective• Production, sales,
and inventory(PSI) informationby level• Business leadtime
2. Formation of
inventory holding
standards basedon supply policy
and strengtheningof management
function

Implement
measures for eachcause

Build new work
infrastructure forconsolidated
supply-demand
management inapplicable productgroups andstrengthen
visualization of theflow of products
and information
Furthermore,
redefine work rules
and endeavor toentrench delivery/
inventory
management
infrastructure toenable speedy
decision making• Promoted thevisualization offoreign objects
through inprocess activities
to reduce thepresence of
foreign objects• Introduced ananalytical tool tocounter thefragility ofsoftwareimplemented in
products• Implemented newquality diagnosis(processes,
equipment) by
Headquartersfunctions• Issued a manual
for small-group
activities andpromoted them

• Implemented
improvement
activities fordefects causedby foreign objects• Establishedproduct security
measuresmechanism in Iot
products(confirmed indesign review)• Deployed newqualitydiagnostics(process,
equipment) to
China byHeadquartersfunctions• Horizontallydeployed bestpractices forsmall-group
activities

96.8%

95.0%

1. Increased theaccuracy of PSI
information inexisting
infrastructure

1. Continued toincrease theaccuracy of PSI
information inexisting
infrastructure

2. Completed
concept
formulation toward
the building of
consolidated
supply-demand
management
infrastructure

2. Completed new
operation designing
and PoC (Proof ofConcept) for
building
consolidated
supply-demand
management
infrastructureSustainability Report 2023

CONTENTS

Department Head Messages
Quality Assurance HQ

Editorial Policy

Message fromthe President
and CEO

Takeshi Takahashi【Responsible Theme】• Pursue zero-defect product quality• Reduce quality costs• Maximize customer satisfaction with product and service quality

CPSO
Message

For TDK, a manufacturing company, the ultimate goal is to realize zero defects, but we have not reached that point yet. To
achieve our objective, at the moment we are bolstering efforts in the four steps: identification of causes, outflow
prevention activities, preventative and predictive activities, and upstream-management-type manufacturing that does not

All you need toknow about TDK’s
sustainability!

produce defects. In each step, we are improving ways and means to raise the quality awareness of employees andpromoting activities to eliminate defects in design, material, process, and management through integration with digitaltransformation (DX). In addition, we are striving to predict and prevent the outbreak of in-process defects through DX

Sustainability
Management

technology, including the building of basic technologies for deep learning*1 and AOI.*2 For TDK, which designs,
manufactures, and supplies products, product quality is a most important issue and a foundation of our corporate
activities. The TDK Group will come together, eliminate product defects in the four areas of design, material, process, andmanagement, and establish an organization and corporate culture of upstream-management-type manufacturing so thatEnvironment

Society

Governance“Made by TDK” becomes a synonym of top quality.
*1 Deep learning is a type of machine learning that boosts learning ability by combining artificial neural networks imitating the neural circuits of the human brain,
thereby enabling the learning of various things and response to complicated problems.
*2 AOI stands for automated optical inspection, which refers to the quality inspection of products by means of continuous photography using a high-resolution
camera system with different light sources, such as fluorescence, ultraviolet rays, LED (light-emitting diode), and infrared rays.

SCM Reengineering Group
Tsuyoshi Morita

External Evaluation/ Status of inclusionin the ESG Index【Responsible Theme】• Maximize customer satisfaction with product and service quality

As a supplier, we make efforts to provide value in the form of deliveries that do not dent the customer’s
Search / Index

business and also to enhance asset efficiency. As a result, we can maximize the satisfaction of customers
and gain their trust. Furthermore, we believe that TDK’s tackling, as a supplier, of the twelfth Sustainable
Development Goal of “Responsible consumption and production” will lead to the strengthening of our
response to geopolitical risks, our consideration for society and the environment, and the governance needed
to put related measures into practice.
To realize our goals in three years, we are currently promoting the “establishment of factory foundations basedon plan-based production and on-time delivery,” and “standardization and refining of operation processes
between sales companies and factories.” In addition, we will shift from the existing specific-optimal-typemanagement of supply and demand to seamless supply chain management with a consolidated and overalloptimal perspective and realize quick decision making in a VUCA* world.
The improvement of delivery has been an important issue for many years. The TDK Group will maximize
customer satisfaction by working together to transform into new operation processes and overcome thischallenge.
* VUCA is an acronym standing for volatility, uncertainty, complexity, and ambiguity. It refers to conditions that are highly unpredictable for society and business.

39Sustainability Report 2023

Sustainability | Sustainability Management | TDK Group’s Materiality

HR Management

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Overview (Themes, responsible department, goals,
KPIs, and progress)

Background to Identification as Materiality
Department Head Messages

Background to Identification as Materiality
Significance for TDK
In order to improve the competitiveness of TDK and achieve sustainable growth, it is key to develop and fully
utilize in-house talents as well as to attract new and the best talents from outside. Furthermore, for innovative
creation, it is essential that people with diverse backgrounds and opinions to come together for discussions. By
fulfilling these conditions, a more creative, agile and disruptive environment will be created. As a result, thedevelopment of new ideas, products, processes, and solutions will be accelerated, exerting a positive impact on
TDK’s sales and profits.
Significance for Society

Environment

Society

Governance

The promotion of diversity and inclusion by society as a whole will lead to the realization of a more diverse andhighly productive society. In addition, our training and development programs for employees can strengthen theskills essential for adapting to changes at work and in society. And by practicing our Corporate Motto andCorporate Principles, we can provide even better products and solutions to society.
We believe that our stakeholders also have an expectation that TDK will create an environment in which our
employees can display their respective abilities and that, as a result, TDK will exert an impact on solving social
issues through our products and solutions.

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

40

Sustainability Report 2023

CONTENTS

Overview (Themes, responsible department, goals, KPIs, and progress)
ThemesResponsible
department

Goals in 3 years

Action items

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

Develophuman
resources tolead the TDK
Group

Human
Resources
HQ

Succession Planning
Process is
implemented, and theTalent Pool are wellfilled with leaders who
can act globally andcollaborate withvarious divisions toaccelerate innovation
and TDK’s growth.

• Execute Global
Management training
to develop future
leaders• Build an efficient
global HR platform• Create and manage
Succession Plan for
all top key positions
at TDKAll you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Fostergreaterdiversity andinclusion

Human
Resources
HQ

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Improve
employeeengagement
and jobsatisfaction
to attract andretaintalented
employees

Human
Resources
HQ

Employees’
understanding of thesignificance andpurpose of activities topromote diversity andinclusion are
deepened, and afoundation and talentpool are created thatwill continuously
produce female
candidates for
managerial positions.

• Penetrate thesignificance andpurpose of activities
to promote diversity
and inclusion• Foster female
candidates for
managerial positions• Share TDK (Japan)
activities globally andvice versa

Employee engagement
surveys are rolled out
TDK Globally and,based on analyzed
outcome, feedback
and appropriate
improvement
measures are
implemented. In
addition, social media
channels are
established to supportand enhance employer
branding (increasing
the company’s
reputation among job
seekers) andrecruitment, thereby
achieving to transform
into a more innovativeand resilient company
through the securingof highly engaged
employees.

• Prepare and roll-out
TDK Global
Engagement Survey
globally• Provide feedback
based on theanalysis of survey
results and create
improvement actionplans• Utilize social media
channels*The targets run from fiscal 2022 through 2024 (ending March 31, 2024).

41

KPIs

Medium-termtarget*(Fiscal 2022-2024)

Progress of Fiscal
2022

Progress of Fiscal
2023

Number of GEMP(Global Executive
Management
Program)participants

10-15 participants/ cohort linked to
3 year mid-termplan

13 participants

10 participants
have been
selected for next
cohort.

Number of Global
AMP (Global
AdvancedManagement
Program)participants

20-25 participants/ year0(26 candidates’
participation in
the program was
postponed tofiscal 2023 due toinability to meetface-to-face.)

19 participants

Number of GMP(GlobalManagement
Program)participants

40-50 participants/ year44 participants

44 participants

Number of TCDP
(Territorial Career
Development
Program)participants

80-100participants / year

89 participants

100 participants

Attendance ratioof workshop for
managers (Japan)

70%/year

98%/year

97%/year% of female
candidates forpromoting tomanager position(Japan)4%/year

10.3%/year

8.9%/year

Female managers
ratio (Japan)

3%

3.7%

4.3%

• Prepare theconcept in fiscal
2022.
• Roll-out to allapplicable TDK
group
companies infiscal 2023.

Prepare theconcept in fiscal
2022

Preparation done
in fiscal 2022 fortheimplementation

Rolled-out to allapplicable TDK
group companies
in fiscal 2023.

Sustainability Report 2023

CONTENTS

Department Head Messages
Human Resources HQ

Editorial Policy

Andreas Keller
To realize the ideal that we are aiming for in the next three years, we will further enhance our outstanding training and

Message fromthe President
and CEO

development programs. The best programs will change the way people see themselves. We will foster the best leadersand experts who will guide TDK to an amazing and sustainable future.
TDK established the Global Human Resources HQ in Germany and built a Global HR Management System bringing
together everything from the recruitment and education of human resources to treatment, skill development, and target

CPSO
Messagemanagement. While ensuring the centripetal force of the Group, as a part of our efforts to build an organizational
environment in which diverse human resources can utilize their abilities and individualities, we are endeavoring to compile
Succession Plan and improve communication skills and employee engagement. Engaged team members figure out how to

All you need toknow about TDK’s
sustainability!

beat the competition. Turned off team members only complain about being beaten by the competition. Let’s make sure
together that all members of the TDK Group are engaged and by doing so creating a sustainable future through our
products, systems and solutions.
There are challenges in implementing these initiatives. The TDK Group operates around the world and consists of a variety

Sustainability
Managementof Group companies, so our sites have different languages. Furthermore, although English is our common language, there
are regional differences in the level of English communication skills. To overcome these challenges, we will carefully
discuss with business leaders in the different parts of the world and search for the right approach, while for English

Environment

communication skills, we will further strengthen our efforts to improve the communication levels through Global English
assessments and training programs.
At the end, let me introduce a quote from a book I once read that made a lasting impression on me: “Smart teams will dogood things, but truly diverse and inclusive teams will do impossible things.”

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

42

Sustainability Report 2023

Sustainability | Sustainability Management | TDK Group’s Materiality

Supply Chain Management

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Overview (Themes, responsible department, goals,
KPIs, and progress)

Background to Identification as Materiality
Department Head Messages

Background to Identification as Materiality
Significance for TDK
By facilitating the sharing of information about procurement conditions and issues throughout the Group,“enhance global procurement capabilities and mechanisms,” which is one of the themes, will lead to increased
work efficiency and cost reduction. Promotion of the other two themes, “ensure responsible procurement” and“ensure societal and environmental consideration in the supply chain,” will enable the building of a competitive
supply chain.
Specifically, the establishment of a pleasant working environment contributes to improving the health andproductivity of employees and, moreover, leads to the attraction and retention of talented human resources. In
addition, today, when consideration of social issues, such as human rights, and the environment has become an
essential condition of business, such initiatives clearly have an influence on relations with business partners andinvestment decisions by shareholders and investors.
Since these activities generally improve quality, delivery, and cost throughout processes and exert a positive
impact on the environment, human rights, and other issues, they can be expected to lead to the enhancement ofcustomer satisfaction, the gaining of trust from employees and investors, and in turn the growth of the TDKGroup.
Significance for Society
TDK has numerous manufacturing sites and about 4,500 suppliers around the world. The promotion of societal
and environmental consideration at these sites and suppliers is highly significant not only for TDK but also forsociety at large.
Furthermore, we recognize that stakeholders have expectations for not only response and compliance withlegislation and international industrial standards in the supply chain but also the execution of social
responsibilities, such as support for suppliers, and the minimization of social impact caused by corporate(business) activities, such as the problem of conflict minerals.

43

Sustainability Report 2023

CONTENTS

Overview (Themes, responsible department, goals, KPIs, and progress)
Themes

Editorial Policy

Message fromthe President
and CEO

CPSO
MessageEnhance
globalprocurement
capabilities
andmechanisms

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Ensureresponsible
procurement

Society

Governance

Responsible
department

Action items• Analyze the Approved
Supplier List (ASL),
formulate cost
reduction plans,
negotiate with• Continuous costcommon suppliers,
reduction is achieved
study informationby sharing and utilizing sharing platforms, andthe latest information
launch a Globalof common critical
Procurement
suppliers of TDK
Collaboration
Group.
Committee (GPCC)• Procurement risks are • Analyze high-risk
Procurement & reduced including
components andpotential risks throughmaterials and consider
Logistics
Groupsupply chain
countermeasures;
optimization.
restructure and• Compliance with GCR
optimize the supply(Global Common
chain throughRegulations) is
negotiations withachieved throughsuppliers
regular monitoring and • Consider monitoring
support formechanisms, collectsubsidiaries.
feedback fromsubsidiaries, support
formulation ofindividual regulations,and conduct regularmonitoring

Medium-termtarget*(Fiscal 2022-2024)

Progress of Fiscal
2022

Progress of Fiscal
2023

Build a platform touniformly visualize
Visualization andthe TDK Group’s
utilization ofVisualized suppliersupplier information
supplier information
data of mainand purchasing
and purchasing
subsidiaries
data and utilize it indata
procurement
strategy

Consolidated
procurement dataof subsidiaries
within the group (inprogress)

KPIs

Conduct supply
chain risk analysis
and implement
countermeasures

Promoted risk
Identified high-risk mitigation of highparts and materials risk parts andmaterials

Conformity with
global common
rules

100%

Built a monitoringmechanism andbegan checking thestate ofestablishment of
individual rules

Smelter information isregularly monitored
across the TDK Group• Regularly monitor
Procurement & utilizing the framework
smelters and promote
Logisticsof Responsible Minerals
responsible mineral
Group
Initiative (RMI) andprocurement
compliant smelters areprioritized in
procurement.

Ratio of suppliers
recognized as
procuring the 3TG
minerals (tin,tantalum, tungsten,and gold) from
RMAP-conformant
refineries (RMAP:
Responsible
Minerals Assurance
Process)

At least 92%
Disseminate andinstill the idea of
92%
responsible mineralprocurement
among suppliers

86.5%

The working
environment of
suppliers is regularly
Procurement &monitored utilizing CSR
Logistics
check sheets andGroupcontinuously improved
through feedback or
guidance to suppliers.

CSR compliant
supplier rate

100%

99%

100%

Implementation
rate of CSR self100%
checks at
manufacturing sites

100%

100%

100%

100%

100%

25%

10%

34%

100%

24%

65%

Implement every
year

Provided necessary
training
opportunities
globally

Provided necessary
training
opportunities
globally

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Goals in 3 years

Ensure societal
andenvironmental
considerationin the supply
chain
CSR Group• Appropriately manage
the working
environment of
suppliers

Reduction of
procurement risks
for high-risk partsand materials• Implement the results• Risk hedging againstof CSR self-checks
Implementation
various kinds of risks
and the risk
rate of labor, andsuch as societal,
assessment for labor
ethics risk
environmental andand business ethics
assessments at
ethical risks at TDK
aimed at helping each manufacturing sites
manufacturing sites issite to grasp their own
ensured by capturing
Ratio ofconditions and identify
issues periodically andmanufacturing sites
issuesmaking continual
implementing RBA• Implement either of
improvements throughauthorized audits
RBA-authorized audit,
a framework of self(RBA: Responsible
customer CSR audit,
assessment, audit,
Business Alliance)or CSR assessment
and training andbased on the RBA VAP Ratio of
dialogue.
Operations Manual at manufacturing sites• Communication
implementing RBAeach of our
between CSR Group
manufacturing sites at authorized audits,
at the Global HQ andleast once every three customer CSR
CSR members at
audits, or CSR
years
Regional HQs is
assessment based• Implement training atfurther strengthenedon the RBA VAP
each manufacturing
and synergistic effects
Operations Manualsite aimed atare exerted at theat least once every
acquisition ofgroup level, such as
knowledge necessary three years
accelerating
for activities to reduce Provision of
improvements bysocial andopportunities forsharing case studies.
environmental risks
training throughe-learning or onsite training,
including dialogue*The targets run from fiscal 2022 through 2024 (ending March 31, 2024).

44

Confirmed andcorrected individual
regulations ofsubsidiaries

Sustainability Report 2023

CONTENTS

Department Head Messages
Procurement & Logistics Group, SCM & Management System HQ

Editorial Policy

Message fromthe President
and CEO

Kenichiro Arimura【Responsible Theme】• Enhance global procurement capabilities and mechanisms• Ensure responsible procurement• Ensure societal and environmental consideration in the supply chain

CPSO
Message

We will clarify our responsibilities, develop and retain professional human resources, and fulfill our responsibilities as the
procurement division through cooperation among HQ divisions, business divisions, and Group companies, thereby
contributing to the company and society.

All you need toknow about TDK’s
sustainability!

For this purpose, we will make efforts on the visualization of information and data relating to supply chain management,
the utilization of digital tools for information sharing, and the ensuring of human resources and establishment of anorganizational setup to promote activities in the Group as a whole.

Sustainability
Management

Furthermore, we will strive to achieve our goals in three years by promoting CSR on-site audits and other measures in
addition to promoting procurement from smelters and refiners conforming with supply chain surveys and standards in linewith the activities of the RMI, confirming supplies’ compliance with CSR using CSR check sheets and promoting
procurement from compliant suppliers.

Environment

Society

Governance

CSR Group, Sustainability Promotion HQ
Sachiko Nagahara【Responsible Theme】• Ensure societal and environmental consideration in the supply chain

TDK, which aims to achieve both a sustainable society and corporate growth, has numerous manufacturing sites around
External Evaluation/ Status of inclusionin the ESG Index

the world, so efforts to reduce societal and environmental risks at sites are an important activity with significant impact.
Utilizing RBA* standards, we regularly check by means of multiple methods, including third-party perspectives, whether
manufacturing sites have a suitable working environment, whether workers are treated with respect, whether substancesthat are harmful to human beings and the environment are being managed and processed properly, and so on.

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We started these activities about 10 years ago, and we have moved forward while making repeated improvements. At all
times, the important thing is to identify what social issues will arise and attract attention going forward and to respond to
those issues as quickly as possible. Manufacturing sites are required to steadily correct findings pointed out in audits andCSR assessments, to maintain these corrected conditions, and to predict risks that might occur due to the same reason
and deal with them beforehand.
To realize the ideal that we are aiming for, we will promote activities based on the understanding and cooperation of
everyone at manufacturing sites, the CSR and Safety and Environment Group at Regional HQs, business divisions, and the
Global HQ divisions.
* RBA stands for the Responsible Business Alliance, the world’s largest coalition of companies in the electronics, retail, auto, and toy industries. The RBA stipulates acode of conduct for the improvement of occupational safety and health, the protection of human rights, consideration for the environment, and ethical responsibility inthe supply chain and urges member companies and their suppliers to practice the code.

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Sustainability Report 2023

Sustainability | Sustainability Management | TDK Group’s Materiality

Opportunity and Risk Management

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Overview (Themes, responsible department, goals,
KPIs, and progress)

Background to Identification as Materiality
Department Head Messages

Background to Identification as Materiality
Significance for TDK
By identifying opportunities in TDK’s business based on internal and external information, it will be possible tocreate new products and solutions that do not currently exist in TDK’s portfolio and allocate research anddevelopment resources efficiently. TDK will be able to acquire new business opportunities and aim for further
growth.
Furthermore, by properly evaluating and recognizing risks that would obstruct the achievement of managementtargets, it will be possible for senior management and business divisions to accurately grasp opportunities andrisks and take risks rationally in accordance with growth strategy. That would also lead to the prevention ofdamage to our business and corporate value caused by the outbreak of large-scale accidents, scandals, and soon.
Significance for Society

Society

GovernanceWe believe that the TDK Group’s efforts to strengthen marketing using digital technology, effectively identify
business opportunities, and bolster risk management capabilities will enable us to continue to meet the
expectations of stakeholders for, among other things, the supply of high-quality products in accordance withsocial issues and customer needs, the realization of a productive environment, and compliance with standards
required by society.

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

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Sustainability Report 2023

CONTENTS

Overview (Themes, responsible department, goals, KPIs, and progress)
ThemesResponsible
department

Goals in 3 years

Action items

KPIs

Medium-termtarget*(Fiscal 2022-2024)

Progress of Fiscal
2022

Progress of Fiscal
2023

Number of value
adding content
topics and/or
landing pages
suitable for
inboundmarketing

Enhance technicalwriting capability(resources/team/process) andcreate content
and/or landing
pages for inboundmarketingpurposes for TDKgroup products,
solutions &technology
globally.

Reinforced thecontent creation
capability throughstrategic
recruiments andpublished value
adding content toour stakeholders.

Achieved anincrease in theamount of newcontent andimprovements inquality.

Generation of
account andcontact level
leads

Methods,
capability &process togenerate leads,
qualify them andrun lead nurturing,
while strictly
complying withprivacylegislation.

Operations
running for leadgeneration andnurturing in global
and local
platforms.
Privacypreservation
platform
evaluation
initiated for
secure leadsharing with
relevent internal
stakeholders.

Acquired leads inglobal and local
platforms, andconducted
nurturing.
Conducted anevaluation ofprivacy protection
platforms forsharing leadinformation safely
with the relevant
parties in-house.

Data type, quality
and quantity thatcan be turned intobusiness
intelligence

Business
intelligenceutilisingmultimodal data
analytics.
Particularattention will be
put on privacy
preserving data
analytics in orderto strictly protect
our customer
data. Data driven
market insightandrecommendations
will be provided.

Initiatedevalutation ofcurrent status forprivacy preserving
plaform
requirements, andhave continued
working on
customer data
platform further
development.

Conducted anevaluation withregard to requests
for the current
privacy protection
platform. Also
continued further
development ofour customer data
platform.

Implement every
year

Identified
business-relatedrisks, assigned
sections
responsible forresponding, andchecked thefrequency andimpact of riskoutbreaks.
Verified the risk
response fragilityof risk owners.

Reassessed theassignments of
the risks response
department inproportion toorganizationalchanges, andbased onchanges in theexternal
environment andthe status of risk
response at TDK
made anassessment ofremaining risks.
Evaluated thestatus of risk
response at eachrisk owner.

Implement during
fiscal 2022

Completed risk
scenarios.
Disclosed
detailed risk
scenarios throughdisclosure inannual securities
report and reply
to questionnaireof the CDP (www.
cdp.net).

Disclosed our
climate change
risk scenario in
our securities
reports, andpresented thedetails in the formof responses to
the CDPquestionnaire(https://www.cdp.
net/).

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Identify andcapturebusiness
opportunities
effectively bystrengthening
marketingcapability
with full useof digitaltechnology

Corporate
Marketing &Incubation
HQ

Environment

Society

Scope: DigitalMarketing is a global
corporate function tounderstand current
business trends andpredict newopportunities in order
to efficiently manage
opportunity and risk.
We utilize data driven
solutions to accurately,
timely and efficiently
provide intelligence totop management andother internal
stakeholders.
Goals in 3 years:
Establish dataarchitecture for digitalmarketing, utilize UXdriven advertisement
and content creation inorder to acquire
relevant customer
information. Data
analytics will then be
utilized to extract
information regarding
market trends andproduct utilization by
our stakeholders.

• Inbound marketing:
Provide TDK’s
added-value
information tocustomers• Content marketing:Acquire prospective
customers• Accumulate andexpand data andtransform it into
information andintelligence

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Strengthen
the group’s
risk
management
capabilities

Corporate
Planning
Group

System to recognize
and evaluate risks,
formulatecountermeasures andmonitor theirimplementation isrebuilt, and scheme tosystematically manage
Group-wide risks isplaced.

• Build a management
system to collect,assess and manage
corporate risks• Identify and manage
climate change risks

Implementation ofrisk identificationand evaluation
and assignmentand review of risk
supervisory
sections

Clarification ofclimate-change
risk scenarios*The targets run from fiscal 2022 through 2024 (ending March 31, 2024).

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Sustainability Report 2023

CONTENTS

Department Head Messages
Corporate Marketing & Incubation HQ

Editorial Policy

Message fromthe President
and CEO

Michael Pocsatko【Responsible Theme】• Identify and capture business opportunities effectively by strengthening marketing capability with fulluse of digital technology

The Corporate Marketing & Incubation HQ plays the role of TDK’s antenna, catching customer needs and disseminating
CPSO
Message

All you need toknow about TDK’s
sustainability!

TDK’s technologies. Our mission is to transform data into information and intelligence and, based on that intelligence,create and incubate new products and solutions that do not exist in TDK’s portfolio. Our Goal is to accelerate “Value
Creation” by building bridges - communicating and collaborating across innovators both inside and outside the company.
This is creating a strong “Outside-In” perspective, a more customer-oriented approach and language.
While going beyond our organization and collaborating with all kinds of divisions both inside and outside TDK, we aim to
combine TDK’s technologies and create new value.
TDK’s EX and DX initiatives are an important activity responding to the demands of society. Essentially the technologies

Sustainability
Management

developed by TDK are marvelous things that can contribute to the well-being of people. At the same time, these priority
fields are at the core of TDK’s long-term strategy and a vital factor in promoting our business plan Value Creation.
Going forward, we must create more customer-centered innovations, entrench the outside-in way of thinking in ourorganization, and realize 2CX (customer experience and consumer experience), which means providing experiences thatEnvironment

Society

go way beyond the expectations of customers.

Corporate Planning Group, Corporate Strategy HQ
Shuichi Hashiyama

Governance【Responsible Theme】• Strengthen risk management capabilities throughout the entire Group

External Evaluation/ Status of inclusionin the ESG Index

I think that a challenge in the TDK Group at the moment is the lack of human resources with professional knowledge andexperience relating to enterprise risk management (ERM) and a lack of understanding relating to risk management within
the Group. Therefore, our first task will be to establish a risk management policy and build a secretariat structure. Then we
will raise risk sensitivity in the Group by getting each division to assess risks relating to that division and try and foster a

Search / Index

better risk culture embracing the thinking, recognition, and conduct of employees toward risks.
By encouraging each organization to accurately recognize risks and opportunities in the volatile business environment, we
will build a setup for realizing sustainable value creation and value protection.

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Sustainability Report 2023

Sustainability | Sustainability Management | TDK Group’s Materiality
CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Pursuing Both Delegation of Authority and Internal Controls
Overview (Themes, responsible department, goals,
KPIs, and progress)

Background to Identification as Materiality
Department Head Messages

Background to Identification as Materiality
Significance for TDK
The pursuit of both delegation of authority and internal controls will lead to the clarification of criteria forbusiness decisions and the utilization of efficient and effective management systems, which in turn will speed up
business and realize the acquisition of business chances ahead of market changes. At the same time, since itwill also be possible to avoid inappropriate business decisions and operations, this activity can be expected tolead to the enhancement of the TDK Group’s corporate value.
Significance for Society
The avoidance of inappropriate business decisions and operations can be expected to lead to the prevention ofadverse impacts on society, such as environmental and human rights issues.

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index49

Sustainability Report 2023

CONTENTS

Overview (Themes, responsible department, goals, KPIs, and progress)
ThemesResponsible
department

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Ensure speedandtransparency
in operations,based on theclearlydefined roles,
authorities
and responsibilities of
eachorganization

Make
management
systems ofeach groupcompanymoreeffective andefficient,aligned withthe group’s
unified policy

Corporate
Planning
Group

Corporate
Planning
Group

Goals in 3 years

Action items

Internal control
systems are properly
established andoperated insubsidiaries, andsetups for selecting
appropriate humanresources as
subsidiary directors
are established. Also,
regarding risks
identified through risk
management, thedepartments
responsible for dealing
with them are clearly
assigned.

Clarify selection
criteria for subsidiarydirectors and appoint
appropriate humanresources accordingly

Each subsidiary
operates businessbased on Global
Common Regulations(GCRs), the suitabilityof which is regularly
reviewed.

• Check operation of
the GCRs in eachsubsidiary• Regularly review the
GCRs

KPIs

Clarification of
criteria for
selection ofsubsidiary officers
and
implementation of
officer selection
based on thesecriteria

Medium-termtarget*(Fiscal 2022-2024)

Ensure that all
subsidiary officer
candidates
recommended byresponsible
sections conformwith selection
criteria

Progress of
Fiscal 2022

Progress of
Fiscal 2023

Selected
subsidiary officers
after compliancechecksDefined thecompetencies
that are requiredof Group officers,
including theofficers at our
subsidiaries.
Throughcompliancechecks, selected
the officers at our
subsidiaries.

-

Did due diligence
prior toacquisitions
based on eachcorporatefunction.
Based on a list
consolidating theitems with which
companies who
are newly part of
the Group mustcomply with thegrace periods forcoming into
compliance,
carried out PMI
activities of our
US subsidiaryacquired in
February.

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Implement
appropriate
post-merger
integration(PMI) foracquiredcompanies

Corporate
Planning
Group

Pre- and postacquisition processes
are established andpracticed, enabling
acquired companies todisplay synergy and togrow and enhancetheir value under the
TDK Group’s
governance.

• Implement preacquisition due
diligence by eachfunction• Compile pre- andpost-acquisition
plans and monitor
activities to createsynergy based onthese plans--*The targets run from fiscal 2022 through 2024 (ending March 31, 2024).

Department Head Messages
Corporate Planning Group, Corporate Strategy HQ
Shuichi Hashiyama
We will aim to enhance the corporate value of the TDK Group through the realization of empowerment and transparency,
utilizing the strengths of each Group company and pooling the energy of the entire Group. The current issue is that there isa gap in the degree of maturity of internal controls among Group divisions. To overcome this issue, over the next three
years, with the cooperation of HQ functions, we will disseminate the global common regulations. In addition, we will raise
the level of internal control in each tier of the Group by clarifying rules for the selection of directors in subsidiaries andimplementing education for subsidiary directors and candidates.

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Sustainability Report 2023

Sustainability | Sustainability Management | TDK Group’s Materiality

Asset Efficiency Improvement

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Department Head Messages

Background to Identification as Materiality
Significance for TDK
The appropriate distribution of management resources will lead to the TDK Group’s growth and the continual
improvement of income befitting capital costs. Furthermore, while core businesses will remain our profit base,appropriately channeling management resources into businesses that, although not yielding adequate profit atpresent, have the potential to grow and develop in the future can be expected to lead to the growth of new
profit-generating businesses.
Significance for Society
By distributing even more management resources in a priority manner to businesses that can contribute tosociety, and by implementing measures to realize optimum reconstruction strategies in not only core businesses
but also challenging businesses and noncore businesses, we can supply even more value to society.

Overview (Themes, responsible department, goals, KPIs, and progress)
ThemesGovernance

External Evaluation/ Status of inclusionin the ESG Index

Overview (Themes, responsible department, goals,
KPIs, and progress)

Background to Identification as Materiality

Responsible
department

Rebuildbusiness
portfolio

Search / Index
Corporate
Planning
Group

Optimizefacilities andmanufacturing sites

Goals in 3 years

Through theimplementation ofvarious measures toimprove asset
efficiency, for example,
the following
indicators have beenachieved.
• OP margin: 12% ormore• ROE: 14% or more
• Capex (3 years): 750
billion yen

Medium-termtarget*(Fiscal 2022-2024)

Progress of Fiscal
2022

Progress of Fiscal2023

OP margin

12% or more

8.8%

7.7%

ROE

14% or more

11.6%

8.3%

Capex (3 years)

750 billion yen

291.3 billion yen

275.7 billion yen

Action items• Reduce operating
losses by promoting
withdrawal/shrinkage
and structural reformin priority challenging
businesses based on
business portfolio
management• Effectively use R&D
costs by setting new,continuation, andwithdrawal criteria for
R&D themes• Optimize capital
investment tofacilities and sites
categorized inbusiness portfolio
management as“carefully controlled”
or “improvement
required”*The targets run from fiscal 2022 through 2024 (ending March 31, 2024).

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KPIs

Sustainability Report 2023

CONTENTS

Department Head Messages
Corporate Planning Group, Corporate Strategy HQ

Editorial Policy

Shuichi Hashiyama
Based on the rules of business portfolio management, from the perspectives of both capital profitability and businessMessage fromthe President
and CEO

potential, including market trends, we will aim for the further growth of core businesses and the profitability of challenging
businesses while continuing the priority distribution of management resources to each business.
Regarding businesses considered to be challenging from the perspective of business portfolio management, we see theproblems at present as a lack of clarity in the exit strategy process and the inadequate understanding of operating

CPSO
Message

information for existing facilities and manufacturing sites. As a three-year roadmap, therefore, we will study our response
policies in each business deemed to be challenging and achieve the targets for return on assets (ROA) and tangible fixed
asset turnover rate. In addition, regarding information about facilities and manufacturing sites, we will overcome theAll you need toknow about TDK’s
sustainability!

problem by defining the necessary operating information and stipulating methods of collection.

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

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Sustainability Report 2023

Sustainability | Sustainability Management
CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

Sustainability Promotion Structure
Sustainability Promotion Structure

In-house Awareness Raising

Participation in Initiatives and Associations

Sustainability Promotion Structure
The Sustainability Promotion HQ, which was established under the direct authority of the President and CEO,cooperates and coordinates with each &headquarters functions to propose action policies and measures onsustainability.
In April 2023, TDK appointed a Chief People and Sustainability Officer (CPSO) as the officer (and member of the
Executive Committee) responsible for human resources and sustainability. The CPSO works with the
Sustainability Promotion HQ to promote TDK sustainability strategies that will lead to increased corporate value.
(Functions and Roles of the Sustainability Promotion HQ)• Cooperate with regional headquarters in China, Europe, and the Americas to promote global action bybusiness divisions, Group companies, and manufacturing sites.
• Monitor the status of action, disclose sustainability-related information, engage in dialogue with stakeholders,
and take other action. Encourage improvement by providing feedback on identified issues to relevant parties
within the company based on opinions obtained through dialogues with stakeholders and from promoting
action.
• Report monthly on the progress of action to the President and CEO.
(Deliberation and Decisions on Sustainability)• Following deliberation on company-wide issues and topics relating to sustainability, a report is made to theBoard of Directors. Based on the report, the Board deliberates or adopts a resolution and performs
supervision to ensure that appropriate action is taken.

External Evaluation/ Status of inclusionin the ESG Index

Search / Index*The Executive Committee is an advisory function made up of corporate officers and division heads appointed by the President and CEO. The committee deliberates onpolicy and measures relating to the execution of business by the Group including development, manufacturing, sales, and financial status, and the President and CEO
makes final decisions.

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Sustainability Report 2023

CONTENTS

Editorial Policy

Message fromthe President
and CEO

In-house Awareness Raising
For the promotion of sustainability, the TDK Group believes it is important for every employee to understand theconcept of sustainability, the background to the need for corporate initiatives, and TDK’s approach tosustainability activities and to incorporate them into their own work. Accordingly, we provide lecture-styletraining programs by job level, such as training for new recruits, as well as e-learning and other programs.
In addition, management and head office divisions engage in timely dialogue with asset managers, and theSustainability Promotion HQ engages in dialogues with each business group to promote business development
starting from the SDGs.
Related link

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

TDK Group’s Approach to the SDGs and Its Activities

Sustainability Award
Starting in fiscal 2022, TDK has established a new Sustainability Award. The aim of this award is tocommemorate the achievements, and encourage the future activities, of individuals, divisions, or businessgroups that are considered to have accomplished especially striking results in activities contributing to bothsociety and the TDK Group toward the realization of Social Value, which is one of the three values in our Value
Creation. Utilizing this award scheme, we are promoting within the Group challenges to product development
stemming from social issues raised in the SDGs and activities leading to the reduction of ESG-related risks.

Participation in Initiatives and Associations
Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

The TDK Group respects international norms and standards, such as the Universal Declaration of Human Rights,
ISO 26000, the OECD Guidelines for Multinational Enterprises, the international labor standards of theInternational Labor Organization (ILO), and the United Nations Guiding Principles on Business and Human
Rights (the “Ruggie Framework”), and promotes business with the aim of realizing the common global
objectives cited in the SDGs. Furthermore, in editing and issuing our sustainability website, we comply with theCore option of the GRI Standards of the Global Reporting Initiative, the international standard.

Endorsement of the TCFD*In May 2019 TDK expressed its support for the Task Force on Climate-related Financial Disclosures (TCFD),
which makes recommendations for analyzing and disclosing information on the impact of climate change on
corporate finance.
*The Task Force on Climate-related Financial Disclosures (TCFD) was founded in 2015 by the Financial Stability Board (FSB), an international body seeking to achieve thestabilization of the financial system.

Related links
TCFD (Link to external site)

Climate Change Initiatives

Membership of the RBA and RMI
In February 2020 the TDK Group joined the Responsible Business Alliance (RBA), the world’s largest industrial
coalition dedicated to CSR in the global supply chain. The TDK Group fully supports the RBA’s vision andmission and, in accordance with the RBA’s code of conduct, makes continuous efforts to improve the humanrights of workers, health and safety, and the environment in the TDK Group and primary suppliers.

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Sustainability Report 2023

Related links
CONTENTS

Editorial Policy

Message fromthe President
and CEORBA (Link to external site)

RMI (Link to external site)

Respect for Human Rights

Sustainable Procurement

Responsible Sourcing of Minerals

Social and Environmental Consideration at
Manufacturing Sites

Membership of Other Associations

CPSO
Message

TDK belongs to the following associations and promotes efforts to solve social issues that are difficult for asingle company to tackle.
Click on the name of the organization to go to their website.

All you need toknow about TDK’s
sustainability!

Related links

Sustainability
Management

Japan Business Federation (Link to external site)

Japan Electronics and Information Technology
Industries Association (JEITA) (Link to external site)

Joint Article Management Promotion-consortium(JAMP) (Link to external site)

Japan Business Council in Europe (JBCE) (Link toexternal site)

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

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Sustainability Report 2023

Sustainability | Sustainability Management
CONTENTS

Editorial Policy

Efforts to Achieve the SDGs
TDK Group’s Approach to the SDGs and Its Activities

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

56

Contribution to the SDGs through Products

Sustainability Report 2023

Sustainability | Sustainability Management | Efforts to Achieve the SDGs
CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

TDK Group’s Approach to the SDGs and Its Activities
The TDK Group’s Approach to the SDGs

The TDK Group’s Materiality and the SDGs

Building a Setup to Address the SDGs through BusinessBusiness creation starting from social issues

The TDK Group’s Approach to the SDGs
To make the global environment and people’s lives sustainable, the United Nations General Assembly approved
the 2030 Agenda for Sustainable Development in September 2015. This agenda advocates Sustainable
Development Goals (SDGs), consisting of 17 goals and 169 targets, to be achieved by all countries by 2030.

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Related link
United Nations Information Centre (link to external site)
TDK, which aims to increase corporate value by creating the three values advocated in Value Creation,
considers the realization of Social Value (improving our value to society) to be closely related to the SDGs.
For TDK, the SDGs are the starting point of value creation. We believe that the measurement of how much value
we have supplied to society and how much we have contributed to the solution of social issues is a barometerof our business achievements.

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CONTENTS

Editorial Policy

The TDK Group’s Materiality and the SDGs
The TDK Group’s materiality has been formulated based on the SDGs, the Global Reporting Initiative (GRI),
Responsible Business Alliance (RBA), and survey items of main ESG evaluation organizations, and issues
indicated in the TDK Group’s long-term strategy reference materials, risks cited in financial reports, and key CSR
issues (fiscal 2017–21).
Here we introduce the relationship between each materiality issue and the SDGs.

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Related link
TDK Group’s Materiality

Building a Setup to Address the SDGs Through BusinessGovernance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

The TDK Group is continuing efforts, as explained below, to identify what countermeasures are available andhow TDK’s products and technological strength can be exploited to tackle the global issues specified in the
SDGs.
First, in addition to general in-house education, in accordance with company policy, we conducted an in-house
dialogue with business groups in Japan and overseas regarding the approach to sustainability that we should be
aiming for and the SDGs. After that, of the issues cited in the SDGs, we summarized the discussions that took
place in each business group about what issues and targets could be addressed by their own technologies andsolutions in the medium and long term and whether there were any technologies and solutions that could be
newly created stemming from social issues. Subsequently, the business groups and the Sustainability Promotion
HQ promoted repeated discussions and considerations on priority areas and medium- to long-term strategy toachieve the objective of “contributing to the world through technology.”
Furthermore, in parallel with these activities, of the results of considerations in the business groups, we
proceeded to incorporate into the business plan the themes that could be realized in the short term.
Going forward, we will continue to advance the above discussions, share results and boost communication
inside and outside the company, and promote actual activities.

Process:
1.	 Implementation of employee educational dialogue to deepen understanding of the SDGs (since June 2018)
2.	 Discussion by questionnaire or interview of what products or technologies possessed by each businessgroup could contribute to the achievement of goals 3, 7, 9, 11, 12, and 13 of the SDGs (May–November
2019)

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CONTENTS

3.	 Inclusion of discussed ideas into the fiscal 2021 business plans of each business group (October 2019 –March 2020)
4.	 Promotion of dialogue with business groups and other related parties and consideration of TDK’s priority
areas and strategy based on social issues (since April 2020)

Editorial Policy

5.	 Implementation of integrated progress management combining the EX and DX specified in the TDK Group’smateriality with the business areas that TDK focuses on for social value creation and corporate growth (sinceApril 2021)
Contribution to achieving the SDGs

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

Related link
External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Contribution to the SDGs through products

Seven Seas

Business Creation Starting from Social Issues
The following are examples of the TDK Group’s business creation starting from social issues.

TDK Electronics
Reduced CO2 emissions by two-thirds

TDK Electronics takes its responsibility toward society and the environment very seriously. At its facilities aroundthe world, it constantly strives to improve energy efficiency, save energy wherever possible and use electricity
from renewable sources. This is how it has reduced CO2 emissions by two-thirds relative to sales compared with
2015.

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Editorial Policy

For sustainable production and the smallest possible carbon footprint, TDK Electronics is focusing on saving
more electricity, above all buying electricity from 100% renewable sources and generating electricity itself with
its own photovoltaic systems. For example, compared to 2015, the company’s energy consumption relative to
production volume was reduced by more than 20%. This was achieved primarily through more energy-efficientmachines and processes in production.

Message fromthe President
and CEOTDK Electronics is also well on the way to purchasing electricity from renewable sources. In America, the share
has already been 100% for some time, and in Europe it is more than 96%. In Asia, where it has often beendifficult to obtain electricity from renewable sources, two manufacturing sites in China have switched to green
electricity.

CONTENTS

CPSO
Message

There are also plans to double the current capacity of installed photovoltaic systems at the sites. Six
manufacturing sites in Europe and Asia currently produce their own solar power, and six more are to follow. At
four sites, existing installations are to be significantly enlarged.

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

TDK Micronas
Contributing to the New Mobility Society with Advanced Sensors and Actuators

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

TDK-Micronas has more than 25 years of experience in the manufacture of semiconductors for sensor andactuator solutions and a track record of shipping over six billion products to the automotive and industrial
markets. It is playing a central role in magnetic field sensor technology and CMOS (complementary metal oxide
semiconductor) integration. TDK-Micronas’s core competence is sensor solutions for automotive and industrial
applications. Its product range includes Hall switches, linear sensors, 3D direct angle sensors, and current
sensors, as well as embedded motor controllers for driving DC, BLDC (brushless direct current), and stepper
motors.

As advocated by the Sustainable Development Goals 7 (Ensure access to affordable, reliable, sustainable andmodern energy for all) and 13 (Take urgent action to combat climate change and its impacts), demands for highenergy efficiency and reduction of CO2 emissions are mounting throughout society. In these circumstances, thediffusion of electric vehicles is an important key to the solution of social issues. The spread of electric vehicles
will reduce fossil-fuel consumption, lower CO 2 emissions on a global scale, and minimize the emission ofpollutants and noise in local communities. Ecologically too, realizing the use of natural resources within thescope of regrowth will promote the development of a sustainable society.

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Editorial Policy

Message fromthe President
and CEO

Therefore, TDK-Micronas believes that society expects much of its optimized sensor and actuator solutions, andits goal is to meet those expectations by supplying solutions for all applications in vehicles, from battery
management and exhaust valves to shift lever and pedal position sensors.
One specific example is the Micronas high voltage controller (HVC) family, which combines an ARM standard
microcontroller core with a multitude of additional functions and features, such as power drivers, that previously
could only be realized via discrete elements. The HVC family, which was developed as an embedded controller
for smart actuators, offers advanced integration to realize compact and cost-efficient system concepts for use inautomotive applications and beyond. One area of application for the HVC family is in active grill shutters (AGS).
AGS offers significant improvement in aerodynamic performance, up to 30% as compared to non-AGS vehicles,
and ensures higher operating torque reliability under all weather, vehicle, and wind velocity conditions.

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

In recent years the major trends, whether in combustion engines, electric vehicles, or hybrid vehicles, havecontinued to be the reduction of CO2 emissions and the electrification of vehicles. Many consumers desire
flexible and environment-friendly mobility too. In large cities, therefore, it will be necessary to use new types ofvehicles, such as small electric cars and pedelecs, and to develop new mobility concepts integrating electricvehicles into car-sharing fleets and public transport.
Amid this social trend requiring strict controls to meet new legal conditions, the demand for sensors isincreasing in all vehicle types. TDK-Micronas engages in development and production with sustainability in mind
throughout the entire value chain. It endeavors to utilize renewable energy, use the most efficient machinery andequipment, and reduce emissions and to supply value to society in the form of advanced sensors andactuators.

TDK Corporation
Contribution to Diffusion of Sustainable Farming Models and Regional Development in Collaboration
with External Partners

Search / Index

Many regional cities in Japan share similar challenges relating to agriculture, such as a lack of successors tocarry on farming, environmental problems, and food safety issues. TDK’s first president, Kenzo Saito, advocatedthe building of affluent communities through the development of both agriculture and industry. With this idea of
the integration of agriculture and industry as a background, TDK in 2020 launched an agricultural project aimed
at realizing the sustainable affluence of the regional community. Noting that agriculture is the core industry of
Akita Prefecture, TDK’s birthplace, the company is endeavoring to plant smart farming models oriented toward
environmental preservation in the region.
As the theme for the first stage of the project, TDK specified “The cultivation of safe, reliable, and tasty rice andits branding.” In collaboration with people both inside and outside the company, TDK is engaged in activities
from various perspectives, such as process design for a smart farming model oriented toward environmental
preservation, promotion of the diversification of farming into processing and distribution , and analysis of taste
evaluation methods, with the goal of making rice that customers will select.

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Editorial Policy

One initiative involves a weed-suppressing robot called Aigamo Robo , which has been developed by Yukimai
Design Co., Ltd. with support from TDK. This robot is a replacement of the ducks (aigamo in Japanese) that playa central role in the so-called Aigamo method of rice-duck farming, which uses less or no agrochemicals.
Powered by a solar panel, Aigamo Robo moves around the paddy field stirring up the mud to prevent sunlightfrom reaching the weeds underwater, thereby curbing the use of herbicides. The prototype underwent repeated
improvements from 2020, and now the project has reached the stage of arranging a mass-production setup forthe 2022 model.

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

SocietyIn May 2022 TDK, Gonuemon Co., Ltd. , Iseki & Co., Ltd., Yukimai Design Co., Ltd., and Nikaho City concluded
a five-party collaborative agreement relating to the promotion of cooperation on environmental-preservationoriented smart farming. The aim is to tackle the solution of regional issues by pooling the knowledge andexperience of regional farmers and harnessing the environment and state-of-the-art technology and to build
environmental-preservation-oriented smart farming by around 2025 through collaboration between the public
and private sectors.
TDK will continue contributing to the solution of issues faced by the regions and, together with local
communities, build sustainable societies for future generations.

TDK Corporation
Combating Climate Change Together with Customers

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Climate change is an urgent issue that must be tackled by the whole world. Amid the rush to solve this problem,
here we introduce the efforts of TDK to help realize a carbon-neutral society.
One of the solutions toward realizing a carbon-neutral society is the promotion of a shift from gasoline to electricvehicles (xEV) . To supply products contributing to the improved energy efficiency of xEVs, TDK personnel incharge of each process of product development, the launching of manufacturing lines, and post-massproduction startup, engage in repeated daily communication with our automaker customers and, by making
continuous improvements, clear the high quality standards demanded by them.

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Editorial Policy

TDK’s compact motor thermistor with integrated flat coil, which is a sensor measuring the temperature of xEV
motors, is a product with high levels of responsiveness and durability thanks to the development of a newcompact structural body. The processing of flat coils with a high level of measuring accuracy in consideration of
the environments in which the product would be used, the introduction of forming equipment, and automation
were tough challenges. But after repeated trial and error, the obstacles were overcome, and eventually TDK wasable to introduce a production line with a high level of productivity and stable quality. The project also led to theupgrading of members’ skills and the strengthening of their collaborative capabilities.

Message fromthe President
and CEO

The ATF oil-temperature sensor contains a newly developed linear thermistor element that enables accurate
temperature control over a wide-range temperature area (especially high-temperature zones). This product hashelped to raise the performance and lower the cost of systems carried in xEVs.

CPSO
Message

Capitalizing on the technological capabilities gained in this project, TDK intends to expand business in the xEVmarket and contribute to speeding up the realization of a carbon-neutral society.

All you need toknow about TDK’s
sustainability!

Related Information
TDK’s Featured Stories showcase a variety of examples that contribute to the SDGs.

Sustainability
Management

Environment

Society

Featured Stories

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

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Sustainability Report 2023

Sustainability | Sustainability Management | Efforts to Achieve the SDGs

Contribution to the SDGs through Products

CONTENTS

Editorial Policy

As 2030, the target year for achieving the Sustainable Development Goals (SDGs), approaches, here we
introduce what TDK is aiming for and how it is contributing toward each goal, together with our image of asociety in which TDK products play an active role.

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

TDK’s aims

reduce the number of deaths and injuries due to traffic accidents and protect the
1 To
lives of drivers, passengers, and pedestrians
TDK’s products and technologies with the potential to contribute

SDG target• Highly safe passive components offering both low electricity consumption and strong
power

3.6

• Highly reliable sensors with appropriate functionality, strong performance, anddurability to gauge the situation and control action

enable monitoring of the daily health of all people, including the socially vulnerable,
2 To
so that they can receive services relating to the promotion of health, prevention,
medical treatment, and functional recovery at appropriate cost
TDK’s products and technologies with the potential to contribute

SDG target• Components promoting the diffusion of supportive devices with safe or protectivefunctions• An extensive range of components and modules to realize reasonably priced
monitoring systems

3.3

3.4

3.8

3.9

Examples of Related Products
Sensors and sensor-applied products/piezoelectric, material, and circuit protection components/inductive devices/RF
components/ceramic capacitors

64Sustainability Report 2023

If you want to know more about these products, click here.

CONTENTS(Link to Application Guide)

Editorial Policy

Medical & Healthcare

Message fromthe President
and CEO

Smart Watch/
Activity Tracker

SafetyCPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

TDK’s aims

1 To constantly supply safe and secure energy to culture and industry
TDK’s products and technologies with the potential to contribute• Products responsive to large electric currents and large voltage

2 To increase the share of renewable energy in the world’s energy mix
TDK’s products and technologies with the potential to contribute• Reasonably priced energy storage systems enabling the safe storage of energy

SDG target
7.1

SDG target
7.2

promote distributed energy systems (systems supplying electricity produced by
3 To
relatively small generating equipment just to meet the demand for electricity frompeople in the vicinity)

TDK’s products and technologies with the potential to contribute

SDG target• Power transmission technology capable of realizing a safe and highly efficient energy cycle

7.2

improve the energy efficiency of smart energy networks by boosting the diffusion of
4 To
e-mobility
TDK’s products and technologies with the potential to contribute

SDG target• Compact, large-capacity, and reasonably priced batteries for motorcycles

5 To double the rate of improvement of the whole world’s energy efficiency
TDK’s products and technologies with the potential to contribute• Cutting-edge technology to realize lower power consumption

65

7.3

SDG target
7.3

Sustainability Report 2023

Examples of Related Products

CONTENTS

Aluminum electrolytic capacitors / film capacitors / ceramic capacitors / piezoelectric, material, and circuit protection
components / inductive devices / sensors / magnets / power supplies / rechargeable batteries
Editorial Policy

If you want to know more about these products, click here.
(Link to Application Guide)

Message fromthe President
and CEO

CPSO
Message

Photovoltaic

Wind Power
Generation

Smart Energy

xEV

All you need toknow about TDK’s
sustainability!

Sustainability
Management

E-bike & Pedelec

EV Fast Charger

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

66

Smart Meters

Sustainability Report 2023

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

TDK’s aims
Environment

vastly improve the convenience, suitability, and accessibility of information and
1 To
strengthen communications
TDK’s products and technologies with the potential to contributeSociety

SDG target• Highly functional, high-performance, and compact electronic components for smart devices

2 To reduce the environmental load in transportation
TDK’s products and technologies with the potential to contribute

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

9.1

SDG target• Reasonably priced energy storage systems enabling the safe storage of energy

3 To realize sustainable and resilient infrastructure
TDK’s products and technologies with the potential to contribute

9.1

SDG target• Automation technology and robotics contributing to Smart X

9.1

4 To build resilient social infrastructure that is both convenient and rational
TDK’s products and technologies with the potential to contribute• Large-capacity and highly reliable HDD components for data centers

SDG target
9.4

Examples of Related ProductsPiezoelectric, material, and circuit protection components / inductive devices / ceramic capacitors / RF components /sensors and sensor-applied products in general/rechargeable batteries / HDD heads and HDD suspension

If you want to know more about these products, click here.
(Link to Application Guide)

Power for
Infrastructure

Smartphone/Tablets/
Mobile Router

Smart Watch/Activity
Tracker

67

xEV

AR/VR

Sustainability Report 2023

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

TDK’s aims

guarantee access to safe, resilient, and reasonably priced housing and basic
1 To
services for all
TDK’s products and technologies with the potential to contribute

SDG target• Components for sensor network systems with highly reliable security properties
Society

Governance

11.1• Highly functional, high-performance, and compact electronic components for smart
devices

provide sustainable, safe, and reasonably priced transportation systems and means
2 Toof public transport for all
TDK’s products and technologies with the potential to contribute

SDG target• Zero-defect components for e-mobility and automatic driving systems
External Evaluation/ Status of inclusionin the ESG Index

Search / Index

11.3

11.2

Examples of Related Products
Aluminum electrolytic capacitors / film capacitors / ceramic capacitors / piezoelectric, material, and circuit protection
components / inductive devices / RF components / sensors and sensor-applied products in general / magnets / power
supplies / rechargeable batteries

If you want to know more about these products, click here.
(Link to Application Guide)xEV

SafetySmartphone/Tablets/
Mobile Router

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IoT

Sustainability Report 2023

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

TDK’s aims

reduce the consumed amount of plastic and metal resources used in products and
1 To
applications
TDK’s products and technologies with the potential to contribute

SDG target• Components and modules for wireless data communication systems
Society

12.2

12.5

• Increasingly compact and lighter products

Examples of Related Products
Governance

External Evaluation/ Status of inclusionin the ESG Index

Capacitors / piezoelectric, material, and circuit protection components / inductive devices / RF components / sensors
and sensor-applied products in generalIf you want to know more about these products, click here.
(Link to Application Guide)

Search / Index

Power for
Infrastructure

Smart Watch/Activity
Tracker69

Sustainability Report 2023

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

TDK’s aims

1 To reduce CO emissions and prevent global warming
2

TDK’s products and technologies with the potential to contribute

SDG target• Products responsive to large electric currents and large voltage to promote theutilization of renewable energy

Society

Governance

13.1• Light products with high levels of power conversion efficiency and fuel efficiency toboost the diffusion of e-mobility• Low-power-consumption products for consumer electric appliances and industrial
products

Examples of Related Products
External Evaluation/ Status of inclusionin the ESG Index

Aluminum electrolytic capacitors / film capacitors / ceramic capacitors / piezoelectric, material, and circuit protection
components / inductive devices / sensors / magnets / power supplies / rechargeable batteries

If you want to know more about these products, click here.

Search / Index(Link to Application Guide)

Photovoltaic

Wind Power
Generation

Smart Energy

70

xEV

Consumer Electronics/ Home Appliances

Sustainability Report 2023

Sustainability | Sustainability Management

Stakeholder Engagement

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Our Approach, Ideal Relationships, and Engagement
Methods by Stakeholders

Purpose of Stakeholder Engagement
Past Stakeholder Dialogue

Purpose of Stakeholder Engagement
The TDK Group strives to earn the trust of society by correctly recognizing social issues as a company that
deploys business activities globally, respecting the International Code of Conduct and guidelines onsustainability, and responding to stakeholders’ interests through business activities. In order to gain the trust, we
actively create opportunities for dialogue with each of our stakeholders on a daily basis.
The TDK Group believes that the purpose of stakeholder engagement is as follows.
• To apply stakeholders’ opinions in TDK Group’s business activities and translate them into the improvementof corporate value and social value to be created.
• To share the same values with our stakeholders and develop our business activities into essential noncomplacent activities by gaining their understanding on the TDK Group’s ideas and activities. Also, tocontinue collaborating to achieve a sustainable society.

Our Approach, Ideal Relationships, and Engagement Methods by Stakeholders
Society

Governance

Shareholders and Investors
Our approach

The TDK Group will maintain management in a fair and transparent manner by disclosing information in a timely and appropriatemanner to stakeholders, such as shareholders and investors.

Ideal relationshipWe earn the trust of shareholders and investors as a company capable of sustainable growth by providing solutions that meet the
future needs of society.

Engagement methods
External Evaluation/ Status of inclusionin the ESG Index

Search / Index• Performance briefing• General meeting of shareholders• IR meetings

Customers
Our approach

The TDK Group responds to changes in the business environment and social needs and provides high-value-added products tocustomers by realizing QDC and First-to-Market at a high level.

Ideal relationship

We are always recognized as a partner company that exceeds customers’ expectations by leading innovations and environmental
consideration.

Engagement methods• Daily sales activities• Customer Satisfaction (CS) survey• Audit from customers

Suppliers
Our approach

The TDK Group addresses social and environmental issues throughout the supply chain and will realize a sustainable society with
our suppliers based on the RBA Code of Conduct.

Ideal relationshipWe build win-win situations that will develop both our suppliers and TDK in the long term and TDK and our suppliers’ technologies
and knowhow collaborate in various business fields.

Engagement methods• Daily communication with suppliers• Supplier briefings• Implementation of audits of suppliers

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Sustainability Report 2023

Employees
CONTENTS
Our approach
Ideal relationship

Editorial Policy
Engagement methods

Message fromthe President
and CEO

CPSO
Message

Sustainability
Management

Our approach

Engagement methods• Labor-management dialogue• Feedback to in‐house newsletters• Workplace communication• Various award programs• Engagement surveys

The TDK Group works and collaborates with stakeholders and potential partners, such as communities, administrations, industries,
international organizations, NPOs, and NGOs, to maintain good relationships. Also, based on our management philosophy, we will
identify areas of social issues to be prioritized and aim to be a good corporate citizen through social services such as sports, culture,artistic activities, and volunteer activities.
The TDK brand penetrates into the region and provides quality employment to the region. We also contribute to the reduction ofenvironmental impact with innovative technology.
• Social gatherings at each region• Social services• Homepage answer service

Administration
Our approach

Environment

We create an equal and happy workplace by promoting CSR, and employees and the company share mutual respect.

Communities

Ideal relationshipAll you need toknow about TDK’s
sustainability!

The TDK Group believes that the source of eternal prosperity of companies lies in human development and will continue to build
relationships as described in the Code of Conduct (Corporate Standards of Business Conduct).
»Please click here for the Code of Conduct (Corporate Standards of Business Conduct).

Ideal relationship

Engagement methods

Society

The TDK Group works and collaborates with stakeholders and potential partners, such as communities, administrations, industries,
and international organizations, to maintain good relationships.
We fulfill our obligations, such as legal compliance and tax payments, and play the role of a corporation as a public institution ofsociety through cooperation with policies to solve social problems.
• Exchange of opinions through economic and industrial organizations• Response to surveys and questionnaires• Consultations with competent authorities• Public comments

Consumers
Governance

External Evaluation/ Status of inclusionin the ESG Index

Our approach

We contribute to improving the QOL of all people through TDK Group products and final products in which our products are
installed.

Ideal relationship

We are recognized by many consumers as a company that contributes to society with creative and innovative technologies.

Engagement methods• Acquisition of information through sales• Feedback to development

Search / Index72

Sustainability Report 2023

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Past Stakeholder Dialogue
TDK actively creates opportunities for dialogue with each of our stakeholders.
In particular, for topic that has a large impact on business activities, we hold stakeholder dialogues and utilize
them in our business activities and CSR activities through direct dialogue with outside experts.
Clicking each theme will open dialogue articles.
Date of implementation

Theme

Aug. 25, 2020

Crafting Materiality with Social Value at the Core

Jul. 8, 2020

Balancing a Response to Climate Change with Corporate Growth
What Is Required of the TDK Group

Mar. 6, 2018

Develop Global Human Resources

Apr. 14, 2017

Targeting Human Rights Reponses at the Supply Chain

Mar. 21, 2017

Develop Global Human Resources

Oct. 9, 2015

Toward the Finalization of Materiality to Enhance TDK’s Value

May. 11, 2015

CSR Promotion in the Supply Chain

May. 8, 2015

Toward Compilation of the Next Environmental Vision

Apr. 17, 2015

Thinking about Diversity as a Growth Strategy

Mar. 31, 2015

Study Meeting Convened to Enhance the Grasp of Nonfinancial Information DisclosureMar. 4, 2014

Identification of Human Rights Issues through Dialogue with Stakeholders

Apr. 18, 2013

The Social Problems behind Conflict Minerals: The Human Rights Situation in the Democratic Republic of the Congo

Apr. 12, 2012

What should today’s technological innovations look like if they are to solve social problems and bring an ideal future into reality?

May. 27, 2011

What We Need to Do for the Environment Now

Apr. 8, 2010

Continued Expectations to TDK as a Trustworthy Company

May. 18, 2009

A Company That Earns Your Trust

Governance

External Evaluation/ Status of inclusionin the ESG Index

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Sustainability Report 2023

Sustainability | Sustainability Management

Fund Procurement through ESG Finance

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Status of Progress of SPTs and KPIs for TDK Sustainability-Linked Bonds
TDK issued the TDK Sustainability-Linked Bonds, its 9th series unsecured straight bonds, in December 2021.
Here, TDK reports on the Key Performance Indicators (KPIs) and Sustainability Performance Targets (SPTs) thatit set and the status of progress toward achieving them.
In the TDK Environmental Vision 2035, TDK made the reduction of environmental load from a life-cycle
perspective a key topic and set a target of halving CO2 emissions intensity by fiscal 2036 with fiscal 2015 as thebase year. TDK set SPTs that reflect the actions taken to achieve this target and selected as the KPIs three
indicators that will serve as the means of achieving the SPTs. By incorporating multiple inter-related measures,
TDK believes that it is possible to gauge the Group’s actions from a more multi-faceted perspective.
Related links
Sustainability Vision

Environmental Policy and Environmental Vision

SPTs
SPT-1: Reduce CO2 emissions intensity per sales (t-CO2 per 100 million yen sales) by 30% in fiscal 2026* compared to fiscal 2015

Environment

SPT-2: Maintain “A” or “A-” for the CDP Climate Change score in the calendar year 2025.
SPT-3: Achieve to raise the ratio of renewable energy sources to 50% of electricity consumption in fiscal 2026*.
*Targets until fiscal 2026 (ending March 31, 2026)

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

We will determine whether we have attained these goals based on the performance in fiscal 2026 for SPT-1 and
3 and in the calendar year 2025 for SPT-2. If we fail to achieve two or more of the above three SPTs, we will give
donations to public interest incorporated associations, public interest incorporated foundations, internationalorganizations, non-profit organizations certified by local governments, local governments, and organizations
similar to the foregoing, whose purpose is environmental conservation activities, in the total cumulative amountequivalent to 0.3% of the bond issue amount before the redemption of the bonds. In addition to our own ESG
initiatives, we will create an additional positive impact by supporting their activities through donations.
As a third-party evaluation, Rating and Investment Information, Inc. (R&I) has provided a second opinion stating thatthe sustainability-linked bond framework created for the issuance of TDK Sustainability-Linked Bonds conforms to the
Sustainability-Linked Bond Principles 2020 established by the International Capital Market Association (ICMA).
*Sustainability-linked bonds: Debentures for which the bond issuer commits to investors to improving results based on sustainability related targets set in advance and forwhich the terms change depending on whether the targets are achieved.

SPT-1: Reduce CO2 emissions intensity per sales (t-CO2 per 100 million yen sales) by 30% infiscal 2026 compared to fiscal 2015.
CO2 emissions intensity per sales is calculated by dividing the sum of Scope 1 emissions (directly produced
emissions) and Scope 2 emissions (indirect emissions from purchased energy) by net sales stated on the
consolidated statements of income.
KPI-1

Fiscal 2015

Fiscal 2019

Fiscal 2020*

Fiscal 2021*

Fiscal 2022*

Fiscal 2023*

SPT-1
Fiscal 2026

CO2 emissions intensity
indexed to fiscal 2015 as 100

100

91.9

86.9

90.9

68.0

51.8

70.0

*The figures for fiscal 2020 onward are verified by a third party.

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Sustainability Report 2023

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Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

SPT-2: Maintain “A” or “A-” for the CDP Climate Change score in the calendar year 2025.
CDP Climate Change scores evaluate climate change initiatives of corporations and cities. CDP evaluates theparticipants’ response to its questionnaire and gives a score from the nine levels (A/A-/B/B-/C/C-/D/D-/F) basedon quantitative and qualitative assessment criteria.
KPI-2

2018

2019

2020

2021

2022

SPT-2
2025

CDP Climate Change score

D

A-

A-

A-

A-

A or A-

SPT-3: Achieve to raise the ratio of renewable energy sources to 50% of electricity
consumption in fiscal 2026.
The ratio is calculated by dividing the total of electricity purchased from renewable sources with an Energy
Attribute Certificate and electricity generated in-house by total electricity consumption.
KPI-3

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

Fiscal 2023

SPT-3
Fiscal 2026

Ratio of electricity fromrenewable energy sources (%)

20.3

18.2

23.9

30.0

39.9

50.0

Sustainability
Management

Environment

Society

Governance

TDK Corporation 9th series unsecured straight bonds (with special inter-bond pari passu
clause) (TDK Sustainability-Linked Bonds)
Total amount of bond issuance¥40 billion

Denomination of each bond¥100 million

Coupon rate (per annum)

0.26% per annum

Issue price¥100 per ¥100 of face value of each bond

Redemption price¥100 per ¥100 of amount of each bondTerm and redemption method

Interest payment dates
External Evaluation/ Status of inclusionin the ESG Index

Search / Index

7 years
Lump-sum redemption upon maturity(1) Final redemption date: December 1, 2028
(2) Retirement by purchase: The bonds may be repurchased and retired at any time from the day after the pay-in dateJune 2 and December 2 of each year (the initial interest payment date is June 2, 2022)

Type of offering

Public offering

Offering period

November 26, 2021

Payment date

December 2, 2021

Collateral and guarantee

The Bonds are unsecured and unguaranteed, and no assets have been specifically reserved for the Bonds.

Financial covenants

A negative pledge clause (with special inter-bond pari passu clause) is attached.

Joint lead managers

Nomura Securities Co., Ltd., Daiwa Securities Co., Ltd., and Mizuho Securities Co., Ltd.

Application of the Act on Book
Entry of Corporate Bonds andSharesThe Bonds are subject to the Act on Book Entry of Corporate Bonds and Shares.

Financial, issuing, and payment
agent

Resona Bank, Limited.

Transfer agent
RatingJapan Securities Depository Center, Inc.
Rating and Investment Information, Inc.: A+75

Sustainability Report 2023

Sustainability | Environment

Environmental Policy and Environmental Vision

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Our Approach

Looking Ahead to 2050

TDK Environmental Vision 2035

Basic Environmental Action Plan “TDK Environment,
Health and Safety Action 2025”

Our Approach
The TDK Group Occupational Health/Safety and Environmental CharterTo unify policies relating to health/safety and the environment throughout the entire TDK Group, TDK formulated
the TDK Group Occupational Health/Safety and Environmental Charter consisting of two aspects—basic
principles and basic policies on health/safety and the environment.

Sustainability
Management

Environment

Related links
Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Environmental Management System

Environmental Education

Looking Ahead to 2050
As materiality to be tackled by the Group as a whole, TDK calls for the effective use of energy and expanded useof renewable energy toward the realization of net zero CO2 emissions by 2050, the supply of products andsolutions to create clean energy and realize a zero-carbon society, and the supply of products and solutions torealize an energy-efficient society by storing, converting, and controlling energy.
In addition, TDK already achieved carbon neutrality in fiscal 2015 through the concept of balancing CO2
emissions from its manufacturing sites by means of TDK products that improve energy efficiency and thereby
contribute to CO2 reduction. Currently TDK is promoting further net zero CO2 emissions from the perspective of
the entire supply chain. Specifically, TDK is strengthening its activities for the reduction of greenhouse gas
emissions, including further expansion of the scope of coverage to include emissions in other Scope 3
categories as well as Scope 1, Scope 2, and Scope 3 Category 11 and the setting of key performance indicatorsand monitoring indicators, toward the realization of a society with net zero CO2 emissions by 2050. In addition,
our medium-term action policy, “TDK Environmental Action 2025”, we aim to achieve 50% renewable energy at
our manufacturing sites by 2025.
As proclaimed in the TDK Environmental Charter, TDK recognizes the importance of adopting measures tocounter climate change and respecting biodiversity and the limited resources of the Earth. Under the slogan of“Eco TDK,” TDK will further promote related activities, including the realization of a circular economy.

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CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Related link
Governance

External Evaluation/ Status of inclusionin the ESG Index

Materiality Identification Process

TDK Environmental Vision 2035

Search / Index

77

Sustainability Report 2023

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Halving the CO2 emission basic-unit in a life-cycle perspective by 2035
The TDK Group achieved its carbon neutral target, originally outlined in our third basic environmental action plan
“TDK Environmental Action 2020,” far ahead of schedule in fiscal 2015. In 2015, prior to the formulation of ournext regular environmental vision, “Vision 2035,” a corporate commitment keyed to the Company’s centennial
year was formulated. Vision 2035 states that we will steadily fulfill our corporate motto, “Contribute to culture
and industry through creativity,” by working head-on to “revitalizing and protecting the global environment andcreating a pleasant and safe society.”
In 2016, in response to the corporate vision “Vision 2035,” TDK defined the ideal state of TDK in 2035 as “theoperation under the environmental load within natural circulation,” and formulated the “TDK Environmental
Vision 2035,” which aims to “halve the CO2 emissions intensity from a life-cycle perspective by 2035.” This
stance stems from the belief that minimizing the environmental load in business activities, and revitalizing thenatural environment, is the duty of companies that supply products designed to contribute to its customers andthe society. Moreover, modeled on the United Nations Climate Change Conference (COP 21) Paris Agreement,
which seeks to curb global warming by achieving a balance between greenhouse gas emissions and absorption
sources, this is also considered the ideal corporate posture for all TDK activities.
Within TDK Environmental Vision 2035, the declaration is made to reduce the environmental load from a lifecycle
perspective. This represents an initiative not limited to measures at the manufacturing stage in factories and theuse stage for customers, aspects outlined in the conventional TDK Environmental Action 2020 policy. To expandin this way, we deem it critical for all TDK Group employees to share the same vision and move forward with thesame objectives in mind. The “revitalizing and protecting the global environment” expressed in this corporate
vision refers to the skillful operation of our business hand in hand with the natural environment. Without thatcommitment, there will be no sustainable development on the horizon. The entire Group shares an ArubekiSugata (ideal process) and undertakes voluntary initiatives in pursuit of that vision.

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

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Basic Environmental Action Plan “TDK Environment, Health and Safety Action 2025”
Conceived on the cornerstone of TDK Environmental Vision 2035 was a new basic environmental plan extending
through year 2025, namely TDK Environment, Health and Safety Action 2025. The action categories and target
figures of “TDK Environment, Health and Safety Action 2025” reflect dual consideration for “backcasting” fromTDK Environmental Vision 2035, and continuity and “forecasting” from “TDK Environmental Action 2020”.
At present, we are integrating the environmental load in each action category by CO2 equivalence andconducting activities toward achievement of the ideal targets outlined in TDK Environmental Vision 2035.
With regard to safety and health as well, steps will be taken to newly stipulate original action categories andgoals, thus moving to realize truly safe and healthy workplace environments.

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Sustainability Report 2023

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Related links
Action Plan in TDK Environment, Health and Safety
Action 2025 and Fiscal 2023 Achievements

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

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Sustainability Report 2023

Sustainability | Environment | Environmental Policy and Environmental Vision
CONTENTSThe TDK Group Occupational Health/Safety and Environmental Charter

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

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In terms of the environment, based on the charter, the TDK Group is committed to reducing the environmentalload across the product lifecycle, including Procurement, Development/Production, Logistics, and Use to
Disposal. These activities have a ripple effect throughout the value chain, such as suppliers, sub-contractors,
other business partners as well as our customers. “All business operations” stated in the Basic Principle on theEnvironment includes due diligence on investment in new businesses and mergers and acquisitions.

80Sustainability Report 2023

CONTENTS

Editorial Policy

Message fromthe President
and CEO

In terms of the health and safety, we aim to form safe and healthy workplace environments. On the basis of thecharter, we prioritize our activities and set action plans. As a basic plan for specific activities, TDK has
formulated the Health and Safety Basic Plan, which it strives to implement with the aim of reducing the numberof significant labor accidents to zero.
Health and safety and Environmental activities are promoting within the framework of the Management System,
which integrates corporate management and environmental management. Since the active participation of ouremployees is essential to these activities, we conduct awareness-raising activities and training necessary to
deepen employees’ understanding. In addition, we strive to continuously improve our activities by appropriately
disclosing information to our stakeholders and actively communicating with them.

CPSO
Message

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Governance

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81Sustainability Report 2023

Sustainability | Environment
CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

Environmental Management System
Environmental Management System

Operation of the TDK Environmental Management
SystemEnvironmental Education

EMS Assessment System and Award Program

Environmental Risk Management at Manufacturing
Sites

Prevention and Control of Exposure to Hazardous
Substances in Products

Environmental Management System
All you need toknow about TDK’s
sustainability!

Sustainability
Management

TDK has established an Environmental Management System (EMS) with the president as the highest level of
responsibility, and is promoting activities under the framework that integrates corporate management andenvironmental management. This structure enables us to respond quickly and effectively to increasingly diverse,
complex, and global environmental issues, in addition to our traditional on-site environmental conservation
activities. Environmental activities including plans, progress, and risks are also reported to the Board of
Directors on a quarterly basis, and are deliberated when necessary.

Environment

Society

Governance

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The sites in the chart above refer to ISO-certified manufacturing sites.

Operation of the TDK Environmental Management System
TDK is putting our shoulders to the wheel to reduce the environmental load, and we have acquired ISO 14001
certification (the international standard for environmental management systems) at 94% of our manufacturing sites.
Furthermore, by implementing internal audits under the leadership of the regional headquarters, each site
undertakes a response in accordance with the regional situation. In addition, we are promoting activities towardachievement of the TDK Environment, Health and Safety Action 2025 initiative, which is the common goal of the
TDK Group. For example, we endeavor to enhance the performance of each site by holding EHS regional
conferences for Japan, China, ASEAN, Europe, and the Americas to share issues and best practices at sites.

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Sustainability Report 2023

Related links
CONTENTS

Facilities with ISO14001 and ISO50001 Certification
Social and Environmental Consideration at
Manufacturing Sites

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

TDK Environment, Health and Safety Action 2025

Environmental Education
TDK posts activity information, including TDK’s approach to environmental initiatives and targets to be achieved, on thein-house intranet, which employees can access and check at any time. In addition, TDK endeavors to publicize andraise awareness of the TDK Group Occupational Health/Safety and Environmental Charter by means of handy cards,
posters for display, the digital signage bulletin board, and other activities. Furthermore, each site promotes selfawareness and competence education relating to the environment among new recruits and transferred employees byutilizing e-learning and so on.
Circular Economy Training was conducted as an in-house training program utilizing e-learning system. It was designed
to promote understanding of the basic principles of circular economy and the importance of circular economy thinking,which aims for zero waste throughout the product lifecycle, starting from the product design stage.

EMS Assessment System and Award Program
Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

With the aim of boosting the Environmental Management System and the performance of safety andenvironment related activities, TDK has introduced a program for assessing the degree by which both safety andenvironment management related goals have been attained on a global basis.
The program covers initiatives to address social issues, such as energy, water, waste, health/safety , and the
SDGs. Business sites with a high overall score, and sites or departments that have conducted special activities
in a specific area are recognized with an award. Award recipients in fiscal 2023 were as follows:■

Excellent overall score
Amperex Technology Limited
TDK Lambda UK Ltd.
TDK(Thailand)Co., Ltd.
TDK Electronics Factories Corporation Kitakami Factory
Water Resources Conservation

Search / Index■ Outstanding activities in a specific field【Energy】 TDK Electronics GmbH & Co OG【Resources】 TDK Electronics Components, S.A.U.

Effective Use of Resources【Health and Safety】 TDK Electronics Factories Corporation Iwaki Factory
Qingdao TDK Electronics Co., Ltd.
Related links
What is Being Done at Manufacturing Sites to
Reduce CO₂ Emissions?

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Editorial Policy

Message fromthe President
and CEO

Environmental Risk Management at Manufacturing Sites
Management of soil pollution and VOC risks
TDK has established environmental risk assessment standards and management methods for soil pollution and
VOCs,* and each site regularly conducts risk assessment. For high-risk areas, we clarify the order of priority andimplement preventive maintenance, restoration, and other measures to effectively manage environmental risks.
* VOC: Volatile Organic Compounds

Compliance with laws and regulations for pollution prevention and accidents

CPSO
Message

To prevent air, water, and soil pollution, TDK strictly complies with all relevant laws and regulations. For certain
items, we have even set voluntary standards that are more stringent than the legal requirements, and we takepreventive actions whenever necessary to reduce the environmental load.

All you need toknow about TDK’s
sustainability!

Prevention and Control of Exposure to Hazardous Substances in Products
Please see the link below.

Sustainability
Management

Quality Assurance Activities, Prevention and Control of
Exposure to Hazardous Substances in Products

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index84

Sustainability Report 2023

Sustainability | Environment | Environmental Management System

Facilities with ISO14001 and ISO50001 Certification

CONTENTS(As of May 1st 2023)

Editorial Policy

ISO14001
Country

Certificate Number

Certification
Body

Japan

JP21/071691

SGS

TDK Precision Tool Corporation

Japan

05672

Intertek

U.S.A.

10018048 UM15

DQS

Governance

TDK U.S.A. Corporation
TDK Components U.S.A., Inc.
TDK Ferrites Corporation
Headway Technologies, Inc.
TDK-Lambda Americas Inc.

External Evaluation/ Status of inclusionin the ESG Index

TDK China Co., Ltd.
TDK (Suzhou) Co., Ltd
TDK Dalian Corporation
Qingdao TDK Electronics Co., Ltd.
TDK Xiamen Co., Ltd.
Guangdong TDK Rising Rare Earth High Technology Material Co., Ltd.

P.R. China

CNBJ314199-U

BV

TDK Dongguan Technology Co., Ltd.

P.R. China

CNBJ314199-U-006

BV

Guangdong Real Faith Pingzhou Electronics Co., Ltd.
Guangxi Real Faith Pingzhou Electronics Co., Ltd.

P.R. China

00221E33645R3L
00221E33645R3L-1

IQNet

SAE Magnetics (Dongguan) Limited

P.R. China

02120E11064R7L

CCCIAFI Technologies (Chang An) Ltd.

P.R. China

02123E10010R6L

CCCI

SAE Components (ChangAn) Limited

P.R. China

02123E10010R6L-1

CCCI

SAE Technologies Development (Dongguan) Co., Ltd.

P.R. China

02120E11064R7L-1

CCCI

Ningde Amperex Technology Ltd.

P.R. China

CN09/31828.00

SGS

Dongguan Poweramp Technology Ltd.

P.R. China

CN19/32001

SGS

Acrathon Precision Technologies (Dongguan) Co., Ltd.

P.R. China

02121E10429R4M

CCCI

TDK-Lambda (China) Electronics Co., Ltd.

P.R. China

02122E10703R5M

CCCI

TDK Taiwan Corporation

Taiwan20003153 UM15

DQS

InvenSense Taiwan Ltd.

TaiwanTW17/00861

SGS

TDK Korea Co., Ltd.

Korea

KR002766

BV

TDK Philippines Corporation

Philippines

50500402UM15DQS

TDK(Thailand) Co., Ltd.

Thailand

488005 UM15

DQS

Facility

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Search / Index

TDK Corporation
Safety & Environment Group of Sustainability Promotion HQ
Technical Center
Mikumagawa Factory
Asama Techno Factory
Kofu Factory
Narita Factory
Shizuoka Factory
Inakura Factory (East site)
Nikaho Factory (North site)
Nikaho Factory (South site)
Honjo Factory (West site)
Honjo Factory (East site)
Ouchi Factory
TDK Electronics Factories Corporation
Kofu Factory
Inakura Factory (East site)
Nikaho Factory (North site)
Nikaho Factory (South site)
Honjo Factory (West site)
Honjo Factory (East site)
Kitakami Factory
Ouchi Factory
Iwaki Factory
Tsuruokanishi Factory*
Sakata Factory
Iida Factory
Tsuruokahigashi Factory
TDK-Lambda Corporation
Nagaoka Technical Center85

Sustainability Report 2023

CONTENTS

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and CEO

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Magnecomp Precision Technology Public Co., Ltd.
Rojana Factory
Wangnoi Factory

Thailand25884/A/0002/UK/En
25884/G/0001/UK/En

URS
URS

Hutchinson Technology Operations(Thailand) Co., LTD.

Thailand81791/C/0001/UK/EnURS

TDK (Malaysia) Sdn. Bhd.

Malaysia

01 104 117285

TUV

TDK-Lambda Malaysia Sdn. Bhd
Senai Factory
Kuantan Factory

Malaysia

01 104 1735507
01 104 1735507/01
01 104 1735507/02

TUV

TDK-Lambda UK Ltd.

U.K.

EMS 518156

BSI

TDK-Lambda Ltd.

Israel

87520

IQnet

TDK Electronics AG

Germany

10000407310-MSC-RvA-DEU

DNV*Tsuruoka Factory of TDK Electronics Factories Corporation has changed its name to Tsuruokanishi Factory of TDK Electronics Factories Corporation from April 1, 2023.

ISO50001
FacilityCountry

Certificate Number

Examined by

TDK Electronics AG

Germany

10000407433-MSC-RvA-DEU

DNV

Ningde Amperex Technology Ltd.

P.R. China

CN17/30924

SGS

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

86

Sustainability Report 2023

Sustainability | Environment | Goals and Achievements
CONTENTS

Action Plan in TDK Environment, Health and Safety Action 2025*
and Fiscal 2023 Achievements

Established: April 1, 2016
Revised: April 1, 2023

*Action Plan in TDK Environment, Health and Safety Action 2025 runs through fiscal 2026 (ending March 31, 2026).

Editorial Policy

Fiscal 2023
Tasks

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management(1) Reduce CO2
emissions at
manufacturing sites

Achievements

StatusObjectives

Improve CO2 emission
intensity from energy
use by 1.8% comparedwith the previous fiscal
year

Reduce CO2 emissions byequivalent to 2.0% of theprevious fiscal y

Improve CO2 emission
Improved by 30.7%
intensity from energy
compared with the previous Achieved use by 1.8%
fiscal year
compared with theprevious fiscal year

Scope
No. *1

Reduce CO2 emissions
by equivalent to 2.0%of the previous fiscal
year• Reduce energy• Reduce energy
consumption by
consumption by equivalentequivalent to 2.0% of
Improve energy
Improve energy
to 2.0% of the previous
Improved by 15.0%
the previous fiscal(1)-a Efficient use of consumption intensity
consumption intensity
fiscal year by energycompared with the previous Achievedyear by energyenergy
by 1.0% of the previous
by 1.0% of thesaving activities
fiscal year
saving activities
fiscal year
previous fiscal year
• Visualize detailed energy• Visualize detailed
consumption in productionenergy consumption
in production(1)-b Expand
renewable energy
usage

Implement efforts toachieve 50% renewable Promote measures toenergy by fiscal 2026
achieve targets​​(Scope 2)(Scope 2)

Implement efforts toachieve 50%
renewable energy byfiscal 2026 (Scope 2)

Promote measures toachieve targets​​(Scope
2)(2) Reduce water
withdrawal

Improve water
withdrawal intensity by
1.5% of the previous
fiscal year

• Improve water withdrawal
intensity by 1.5% of the
Improve water
Improved by 17.8%
previous fiscal year at each
withdrawal intensity
compared with the previous Achieved
manufacturing site
by 1.5% of the
fiscal year
• Improve the recycling ratio
previous fiscal yearof water• Improve water
withdrawal intensity
by 1.5% of theprevious fiscal year ateach manufacturing
site• Improve the recycling
ratio of water(3) Efficient use ofresources• Improve waste intensity by
1.5% of the previous fiscal
year at each manufacturing
Improve waste
Improve waste intensity
Improved by 24.4%
site
intensity by 1.5% of
by 1.5% of the previous
compared with the previous Achieved• Improve material yield
the previous fiscal
fiscal year
fiscal year
• Promote recycling and
year
reuse
• Pursuit “zero-defect”• Improve waste
intensity by 1.5% of
the previous fiscal
year at eachmanufacturing site
• Improve material
yield• Promote recycling
and reuse• Pursuit “zero-defect”

Society

GovernanceSearch / Index

Practical Activities

Practical
Activities

Fiscal 2026

Fiscal2036(100thanniversary)① TDK Environment Activity: improve CO2 emissions intensity in a lifecycle perspective 50% by 2035, compared with Fiscal Year 2015
Assess our entire value chain emissions impact including environmental contribution and improve the sales based intensity.

Environment

External Evaluation/ Status of inclusionin the ESG Index

Objectives

Fiscal 2024

40% renewable energy
achieved, compared with atarget of 34% for fiscal
2023

Achieved

Promote reduction ofNotenvironmental load
achieved through activity of
Scope 3

• Promote the use of
low environmentalload materials• Promote efforts to
reduce CO2
emissions in logistics
globally

Improve the intensity ofcontribution to CO2
Increase in the number of
reduction by products
products for which productby 2.7% compared with contribution is calculated
the previous fiscal year

Improve the intensityof contribution to CO2
Improved by 42.6%
reduction by products
compared with the previous Achievedby 2.7% comparedfiscal yearwith the previous
fiscal year

Increase in the numberof products for which
product contribution is
calculated• Develop and expand
sales of products andsolutions that realize a
net-zero society• Provide products andsolutions for creating(6) Expand businessclean energy to realize Create products andtowards a net-zeroa zero-carbon society solutions that realize a netsociety• Provide products and zero society
solutions for thecreation of a highly
efficient energy
society by storing,coverting, andcontrolling energy• Develop and expand
sales of products
Contriband solutions that
uted torealize a net-zero
the stabisociety
lization of• Provide products
renewand solutions forable encreating clean
ergyenergy to realize a
power
zero-carbon society
grids• Provide products
throughand solutions for theflexiblecreation of a highly
AC transefficient energy
missionsociety by storing,systems
coverting, andcontrolling energy

Create products andsolutions for therealization of net-zerosociety

Reduced hazardous waste
through autonomous
Promote the substitution andReduce the impact of
substitution and responded
reduce usage of hazardous
Achieved chemicals on humans
to customer requirements
chemicals
and the environment
as well as increasing
efficiency of resource usage

Promote thesubstitution andreduce usage ofhazardous chemicals

Promote reduction of(4) Reduce CO2
environmental load
emissions from a life
through activity ofcycle perspective
Scope 3(5) Expand
contributions to
reduction of CO2
emissions byproducts(7) Reduce risks ofchemicals use(8) Contribute toenvironmentalsociety

Reduce the impact ofchemicals on humans
and the environment

Preserve theenvironment andbiodiversity• Promote the use of low
environmental loadmaterials• Promote efforts to reduce
CO2 emissions in logistics
globally• Promote forest
conservation activity• Promote environmental
education and awareness• Reduce global logistics
CO2 emissions• Worsened CO2 emission
intensity in logistics by
28% compared with theprevious fiscal year-

• Trees planted outside thecompany: over 1,000 intotal• Education for elementary
school students in the
Preserve thelocal community: provided Achieved environment andto 1,800 students in total
biodiversity• Financial assistance forthe operation ofelementary schools in thelocal community

87

-

1, 2

ImproveCO2emissions
intensity
by 30%

Installation
rate ofrenewableenergy: 50%(Scope 2)

ImproveCO2emissions
intensityfrom alifecycle
perspective
by 50%

3• Promote forest
conservation activity• Promoteenvironmental
education andawareness-

Create reduction
activities equivalent to
30% improvement of CO2
emissionsSustainability Report 2023

CONTENTS② TDK Health and Safety Activity
Take actions to achieve zero labor accidents, our ultimate goal.

Editorial Policy
Activity for healthand safety

Message fromthe President
and CEO• Mitigate the significant
safety risks
Achieve zero significant• Promote the safety patrol*2
labor accidents
by site top manager
thoroughly

Achieved zero significant
labor accidents

Achieve zero
Achieved significant labor
accidents*1 Scope No.: based on GHG Protocol*2 Significant labor accident: an accident with remaining disability, required long-term nursing, or fatality

CPSO
Message

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88• Mitigate thesignificant safety
risks• Promote the safety
patrol by site top
manager thoroughlySustainability Report 2023

Sustainability | Environment

Climate Change Initiatives

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Our Approach

Response to TCFD

Goals and Achievements

Initiatives

Our Approach
Anthropogenic greenhouse gas emissions, which contribute to global warming, are on the rise, and the sense ofcrisis about climate change is increasing, as represented by the Paris Agreement adopted at the COP21 inDecember 2015. Above all, carbon dioxide (CO2) is a major emission source that makes up 76% (from the IPCC
5th Assessment Report) of greenhouse gases, so it is necessary to implement reliable CO2 reduction measuresin business activities.
In the TDK Group, the environmental officer serves as the manager of the Group’s environmental activities,
including climate change issues, and the Safety and Environment Group of the Sustainability Promotion HQleads the promotion of and support for the Group’s environmental activities. We make decisions on importantmatters for management of the Group’s environmental activities based on deliberation by the Executive
Committee and, if necessary, the Board of Directors. The TDK Environmental Vision 2035 was established as thegoals of specific activities, and we strive to reduce the environmental load from a life-cycle perspective, from theuse of raw materials to the use and disposal of products.

Society

Governance

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Reduction of CO2 emissions at manufacturing sites
From the standpoints of the effective use of energy and the expanded use of renewable energy, TDK is tackling
the reduction of energy-related CO2 emissions at manufacturing sites.
Reduction of CO2 emissions through initiatives by Scope 3 category
TDK is promoting a reduction of the environmental load through initiatives by Scope 3 category. We arepromoting the use of materials with a low environmental load, the reduction of CO2 emissions intensity inlogistics, and the expansion of products for calculation of product contributions.

89

Sustainability Report 2023

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Sustainability
Management

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Society

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Regarding promotion of the use of materials with a low environmental load, we have begun activities
incorporating the circular-economy concept and thus reducing the environmental load. For example, in
cooperation with outside suppliers, we have built a system for the recycling of PET materials.
Regarding the reduction of CO2 emissions intensity in logistics, our aim is to contribute to global-warming
countermeasures, improve transportation efficiency, and lower transportation costs. In Japan, a committee toimprove energy conservation in logistics was established in fiscal 2007, when the revised Energy Conservation
Act was enacted, and energy reduction activities related to logistics have been carried out.
Regarding the expanded reduction of CO2 emissions through products, we have introduced product assessments
since 1997 to evaluate the environmental impact of products throughout their entire lifecycle. In the mechanism weadopt, only products approved by this product assessment are commercialized and distributed into the market.
The excellent environment-conscious products (ECO LOVE products) accreditation system was introduced in 2008as a measure to continuously create products with high environment-conscious effects based on the assessment
results of the product assessment. We have been disclosing information about the products certified as excellent
environment-conscious products on our website and promoting the creation and dissemination of products that
contribute to reducing the environmental load.
In addition to these activities, expanding the reduction of CO2 emissions through products (product contributions)is one of the core initiatives within the TDK Environmental Vision 2035 and Environment, Health and Safety Action
2025. To mount potent appeals for the social contributions by TDK products as the fruits of technical initiatives,
these product contributions have been calculated and disclosed since the TDK Environmental Action 2020 (thecompany’s previous medium- to long term plan).
Public awareness activities are also being advanced to gain understanding of the contributions of electronic
components as intermediary parts, along with moves to formulate coherent industry standards for calculation
methods positioned to serve as the basis for earning appropriate evaluations of product contributions
performance, and the results were released in the form of guidance by industry groups.
Based on these results, TDK established the Guideline for Calculation of Product Contributions and is promoting
the diffusion of global calculation work throughout the entire TDK Group by adding the calculation of productcontributions to assessment requirements at the product development stage. Going forward, TDK will continue toestablish calculation rules and endeavor to disseminate them throughout the Group.

Response to TCFDIn May 2019 TDK expressed its approval of the Task Force on Climate-related Financial Disclosures (TCFD),
which makes recommendations to analyze and disclose information on the impact of climate change on
corporate finances. Established in 2015 by the Financial Stability Board (FSB), an international body that aims tostabilize the financial system, the TCFD makes proposals that are expected to be a catalyst for promoting
information disclosure within companies and organizations, and encouraging dialogue between financial
institutions and business corporations.
The TDK Environmental Vision 2035 calls for “halving the CO2 emissions intensity from a lifecycle perspective by2035” throughout the entire value chain from procurement to disposal.
Believing that assessing the risks and opportunities to our business due to climate change and appropriately
disclosing information are going to be essential for both achieving corporate growth and building a sustainable
society in the future, TDK is steadily addressing these matters.
TDK’s initiatives to address the issues of climate change are disclosed below according to the TCFD framework.

Governance◆ Board’s oversight of climate-related risks

At TDK, the environmental officer carries out a management review more than once a year of the state ofprogress in environment-related matters, including climate change, as well as plans and risks. The results of the
management review and matters requiring management decisions are deliberated in the Executive Committee
and, if necessary, the Board of Directors.

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CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index◆ Management’s role in assessing and managing climate-related risks(Positioning)
Regarding risks relating to the environment, including climate change, TDK has clarified the responsibilities ofthe environmental officer, who is appointed by the chief executive officer.
In addition, to strengthen the risk management framework, TDK has established committees directly under the
Executive Committee. Of them, the Enterprise Risk Management (ERM) Committee has been set up with the aimof ensuring a company-wide response to factors impeding the achievement of business targets and business
operations, including climate change. The ERM Committee discusses important matters among environmental
risks, including climate change. The chair of the ERM Committee is a corporate officer appointed by the CEO.
(Responsibilities)
Regarding a company’s social responsibility, TDK recognizes that coexistence with the global environment is an
important issue in management and has established the post of environmental officer. Appointed by the CEO,the environmental officer takes responsibility for environmental management in general, including climatechange. In addition, the head of the Safety and Environment Group of the Sustainability Promotion HQ, which
has been established under the environmental officer, is given responsibility for implementing environmental
management, including climate change.
In the TDK Group, all business groups, departments, sites, manufacturing subsidiaries, and head office
functions come together in unison to work toward realizing the goals of the TDK Environmental Vision 2035
(operate under an environmental load within natural circulation and halve the life-cycle CO2 emission intensity by2035).
Among environmental risks, including climate change, important matters are reported through the ERM
Committee to the Executive Committee and the Board of Directors.
(Content of responsibilities)
The Safety and Environment Group of the Sustainability Promotion HQ sets Group-wide targets forenvironmental matters, including climate change, and identifies environment-related risks for the Group. The
ERM Committee identifies Group-wide risks in accordance with risk management regulations and handles
problems relating to climate change as one aspect of Group-wide risks.
(Monitoring)
The achievements of environmental activities, including activities relating to climate change, are reported in the
management report, and more than once a year the environmental officer carries out a management review,
discussing and deciding important matters in the promotion of environmental activities, such as the compilationof reports and medium- to long-term targets for major KPIs and energy-saving investment. In addition, mattersin this management review that are deemed to exert an important impact on management, such as visions andlarge-scale investment, are discussed in the Executive Committee and, if necessary, the Board of Directors.

Strategy
In the Medium-Term Plan “Value Creation 2023” that started in fiscal 2022, TDK advocates the basic policy ofaccelerating digital transformation (DX) and energy transformation (EX) in order to enhance customer experienceand consumer experience (2CX) and to create value for a sustainable society. As well as setting the TDK Group’smateriality as management issues that should be tackled to realize the Medium-Term Plan, we have positioned
EX (contributing to energy and environmental solutions by minimizing waste heat and noise with electronic
devices) as a business domain on which TDK focuses for both social value creation and corporate growth, andwe are addressing it as one aspect of our business strategy.
Specifically, we are promoting the effective use of energy and the expanded use of renewable energy toward therealization of net-zero CO2 emissions in 2050. Furthermore, we are striving to provide products and solutions forcreating clean energy to realize a zero-carbon society and to supply products and solutions for bringing about
an efficient energy society through the storage, conversion, and control of energy.
In these circumstances, TDK conducted scenario analysis with the aim of analyzing business risks andopportunities in problems related to climate change and reflecting the results in strategy.

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Results of scenario analysis
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Sustainability
Management

In accordance with the Practical guide for Scenario Analysis in line with the TCFD recommendations issued by
the Ministry of the Environment, TDK implemented scenario analysis based on the following preconditions:

Preconditions
Assumed period: Fiscal 2031
Applicable scope: Entire TDK Group
Adopted scenarios: 2℃ scenario (Sustainable Development Scenario [SDS] and New Policies Scenario [NPS] of
the International Energy Agency [IEA]), 4℃ scenario (the IEA’s Current Policies Scenario [CPS], Stated Policies
Scenario [STEPS], and Representative Concentration Pathway [RCP] 6.0 scenario)
The following are the main risks and opportunities identified based on the scenario analysis. Under the 2℃
scenario, in which countries’ regulations through decarbonization policies become stricter, we understood thepossibility of transitional risks occurring with the introduction of carbon pricing and higher cost of renewableenergy. The analysis estimated the financial impact of these risks in 2030 to be 5.9 billion yen in the case ofcarbon pricing and 17.6 billion yen for renewable energy. In the automotive market, which is one of TDK’s key
markets, since the shift to electric vehicles will progress, we also recognized the possibility of expanded sales
opportunities for EV-related products and battery-related risks and opportunities.
Under the 4℃ scenario, the analysis also showed the possibility of increased risks of flooding due to thefrequent outbreak of abnormal weather.
Risks andopportunities

Occurrence*

Main countermeasures

Carbon pricing / carbon-emission targetsof each country

Risk

Medium/Long Term• Promotion of the effective use of energy, expanded use of renewableenergy, etc. at manufacturing sites toward the realization of net-zero
CO2 emissions in 2050

Increase of energy costs due to rise inrenewable energy ratio

Risk andopportunity

Medium/Long Term• Promotion of the effective use of energy at manufacturing sites toward
the realization of net-zero CO2 emissions in 2050
• Promotion of the development of products for renewable energy, etc.

Increase in price of cobalt and lithium

Risk

Short~Long
Term• Monitoring of raw material price trends and implementation of risk
hedging at time of procurement• Implementation of long-term supply contracts• Reduction of amount of cobalt and lithium used in products, etc.

Increase of new business chances due
to expansion of EV market

Opportunity

Medium/Long Term• Promotion of product development with an eye on EV market
expansionDevelopment of next-generation battery
materials

Risk andopportunity

Long Term• Promotion of the development of all-solid-state batteries

Increase of customer demands regarding
RE100

Risk andopportunity

Short~Long
Term• Analysis of customer initiatives to respond to climate change• Compilation of plan to introduce renewable energy, etc.

Increase of business risks due to rise inflooding

Risk

Medium/Long Term• Implementation at sites of measures to counter flooding risks• Promotion of BCP response, building of BCM framework, etc.

Classification

Environment

Society

GovernanceTransition
risks

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Physicalrisks*Time horizon: “Short-term” is expected to be less than 1 year, “Medium-term” between 1 and 3 years, and “Long-term” between 3 and 20 years.

Related link
Medium-Term Plan

Risk Management
To strengthen its risk management structure, TDK has established several committees that report directly to the
Executive Committee. Among these committees, the ERM (Enterprise Risk Management) Committee has beenorganized for the purpose of taking a company-wide approach to factors that may hinder the achievement ofbusiness goals and business operations, and assesses important risks for management. Climate change risk is
identified and assessed as one of them. Regarding risks deemed by the assessment to require Group-wide
efforts, including climate change risk, the ERM Committee checks the progress of countermeasures approvedby the Executive Committee and, after completion of the countermeasures, obtains the approval of the
Executive Committee.

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CONTENTS

Editorial Policy

Message fromthe President
and CEO◆ Physical Risk Response Plans

As a physical risk relating to climate change, TDK has specified the increase of business risks due to increased
flooding. Regarding water risks at all manufacturing sites of the TDK Group, we conduct investigations inaccordance with the TCFD using two global evaluation tools—the WWF Water Risk Filter and Aqueduct,announced by the World Resources Institute (WRI). This enables us to identify highly water-stressed regions.
Among other things, each site implements measures to counter flooding risks, promotes BCP response, andbuilds a BCM framework.
Please refer to this link for more details.
Water Resources Conservation

CPSO
Message

Metrics and Targets
All you need toknow about TDK’s
sustainability!

Sustainability
Management

TDK has stated its aim to achieve net-zero CO2 emissions by 2050 in the “TDK Group’s Materiality” and has also
set the goal of “halving the life-cycle CO2 emission intensity by 2035” in the “TDK Environmental Vision 2035”.
Based on this vision, we have established the action items and target values in the “TDK Environmental, Healthand Safety Activities 2025” as our basic environmental plan through 2025, and are monitoring progress. In 2022,
we have also announced our commitment to obtain SBT certification and are currently working toward it.
GHG emissions (kt-CO2)

Environment

Society

Fiscal 2023

Total emissions

27,882

Scope1

146

Scope2

1,237

Scope326,499Related link
Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Goals and Achievements

TDK Group’s materiality

Effective use of energy and expanded use of renewable energy toward the realization of net zero CO2 emissions by 2050 (Scope 1, 2)

TDK Environmental Vision 2035

Halving the CO2 emissions intensity from a life-cycle perspective by 2035, compared with fiscal 2015 (Scope 1, 2, 3)

Action Plan in TDK Environment,
Health and Safety Action 2025

• Improve CO2 emissions intensity by 30% by 2025, compared with fiscal 2015 (Scope 1, 2, 3)• ・Achieve renewable energy target of 50% by 2030 (Scope 2)

For detailed data, please see the link below. Regarding GHG emissions, TDK received third-party verification.
Related link
Environmental Data

Third-party verification

Goals and Achievements
Fiscal 2023 Goals

Achievements

Reduction of CO2 emissions at manufacturing sites
Improve CO2 emission intensity from energy use by 1.8% compared with theprevious fiscal year

Improved by 30.7% compared with the previous fiscal year

Improve energy consumption intensity by 1.0% of the previous fiscal year

Improved by 15.0% compared with the previous fiscal year

Installation rate of renewable energy electricity in fiscal 2026 : 50% (Scope 2)

40% introduced compared to target of 34% in fiscal 2023

Reduce CO2 emissions from a life cycle perspective
Promote reduction of environmental load through activity of Scope3

Reduction of CO2 emissions in global logistics
Worsened CO2 emission intensity in logistics by 28% compared with the previous
fiscal year

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Sustainability Report 2023

Breakdown of environmental load (CO2 emissions)
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Sustainability
Management

Third-party verification
Environment

CO2 Emissions by Category and Scope
Scope

Society

Outline(Category)CO2 emission(t-CO2)

Scope1

Production

146,350

Scope2

Production

1,236,669

1

Purchased goods & services

9,607,890

2

Capital goods

3

Fuel- and energy-related activities

4

Upstream transportation & distribution

5

Waste generated in operations

7,409

6

Business travel

40,728

7

Employee commuting

8

Upstream leased assets

Not applicable

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index
Scope3

901,708
1,217,373
238,076

7,911

9

Downstream transportation & distribution

Not applicable

10

Processing of sold products

Not applicable11

Use of sold products

12End-of-life treatment of sold products

Not applicable13

Downstream leased assets

Not applicable

14

Franchises

Not applicable

15

Investment

Not applicableThird-party verification

94

14,477,887

Sustainability Report 2023

Methods of Calculating CO2 Emissions in Scope 3
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Sustainability
Management

Environment

SocietyCategory

OutlineCalculation method

1

Purchased goods & services

Products purchased in the fiscal year concerned multiplied by the emission intensity for each purchase price.
Regarding materials, the purchase price of the main constituent materials in each product (excluding
semifinished products) multiplied by the emission intensity.

2

Capital goods

The price of equipment and other capital goods acquired in the fiscal year concerned multiplied by theemission intensity for each investment amount.

3

Fuel- and energy-related activities

Calculated according to emissions in the extraction, production, and transportation of purchased fuel and fuelused when purchased electricity is generated. Fuel: Each fuel purchased in the fiscal year concerned multipliedby the emission intensity. Electricity: Purchased electricity quantity multiplied by the emission intensity.

4

Upstream transportation &distribution

Calculated according to emissions involved in the procurement of purchased products and services andemissions involved in the transportation of manufactured products. Regarding purchased products andservices, each of the same items as in Category 1 multiplied by the emission intensity involved in procurement.
Regarding manufactured products, expenses involved in shipment multiplied by the emission intensity.

5

Waste generated in operations

Regarding waste at manufacturing sites excluding valuables, financial value of the waste multiplied by theemission intensity.

6

Business travel

Business travel expenditure is calculated by multiplying expenses involved in employee travel by the domestic
employee commuting/business travel expense ratio. Emissions are then calculated by multiplying this businesstravel expenditure by the emission intensity taking account of the content of business travel.

7

Employee commuting

Commuting expenditure is calculated by multiplying expenses involved in employee travel by the domestic
employee commuting/business travel expense ratio. Emissions are then calculated by multiplying thiscommuting expenditure by the emission intensity assumed from the means of commuting.

8

Upstream leased assets

Regarding use of leased equipment, we report emissions in Scopes 1 and 2.

9Downstream transportation &distribution

Not applicable, since TDK is a manufacturer of electronic components and a midstream company.

10

Processing of sold products

Not applicable, since emissions due to the processing of TDK products by customers are small.

11

Use of sold productsElectricity consumed by TDK products (components) multiplied by the lifelong operating time of set items
contained in the product, conversion coefficient, and quantity of TDK products (components) sold.

12

End-of-life treatment of soldproducts

Not applicable, since TDK is a manufacturer of electronic components and a midstream company.

13

Downstream leased assets

Not applicable, since there are no corresponding business activities.

14

Franchises

Not applicable, since there are no franchise stores.

15

Investment

Not applicable, since there are no corresponding investments.

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index95

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CONTENTS

Reduction of CO2 emissions at manufacturing sites
Trends in CO2 emissions at manufacturing sites*

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Sustainability
Management

Environment*The measurement and calculation methods, as well as the numerical results for fiscal 2020 and beyond, have been verified by a third-party.

Fiscal 2023 emissions by region (TDK Group total emissions)Fiscal 2023 emissions by scope (TDK Group total emissions)Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index* Scope: Emission range defined by the GHG Protocol, an international calculation standard for greenhouse gas emissions. We refer to direct emissions from facilities
owned and controlled by the company as Scope 1 and emissions from the production of energy consumed at facilities owned and controlled by the company as Scope 2.
*TDK’s CO2 emissions calculation standard• CO2 emissions is calculated by multiplying the CO2 conversion factor to the amount of electricity purchased and fuel (such as gas and oil) used at each business site.
• The factors defined in the Act on Promotion of Global Warming Countermeasures are used for the CO2 conversion factor for fuel.
• The latest conversion factor that was publicly known at the time of planning in the beginning of the term is used for the CO2 conversion factor for purchased power.
• The published value has been certified by a third-party verification.

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Sustainability Report 2023

Trends in total energy use and intensity
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Sustainability
Management

Environment

Renewable energy electricity installation ratio

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

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CONTENTS

Reduction of CO2 emissions through initiatives by Scope 3 category
Trends in CO2 emissions from logistics activities (Japan)*

Editorial Policy

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All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment*Calculated based on Japan’s Energy Conservation Act.

Trends in CO2 emission reductions by product*
Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index*The calculation method was reviewed by a third party.
*The product contributions have been calculated based on the internal guidelines compliant with IEC’s “TR62716 Guidance on Quantifying Greenhouse Gas Emission
Reductions from the Baseline for Electrical and Electronic Products and Systems”; The Institute of Life Cycle Assessment, Japan’s “Guidelines for Assessing theContribution of Products to Avoided Greenhouse Gas Emissions”; and JEITA’s “Guidance on Calculating GHG Emission Reductions Contribution of Electronic
Components.”

Related links
Third-party verification

Third-party review of environmental performance data98

Sustainability Report 2023

CONTENTS

Evaluations and Future Activities
Reduction of CO2 emissions at manufacturing sites

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and CEO

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Message

All you need toknow about TDK’s
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Sustainability
Management

Environment

In fiscal 2023 CO2 emissions decreased by 18.7% from the previous year to 1.383 million tons due to the
expanded introduction of renewable energy. Going forward, we will promote reduction efforts rooted in
manufacturing activities across the entire Group based on a policy, as advocated in TDK’s materiality, ofachieving the effective use of energy and the expanded use of renewable energy toward the realization of netzero CO2 emissions by 2050.

Reduction of CO2 emissions through initiatives by Scope 3 category
As a result of increased product transportation due to a rise in production volume, CO2 emissions in logistics infiscal 2023 amounted to 6,690 tons, up 22.5% over the previous fiscal year. This represented an increase of
33.8% over the fiscal 2015 level, meaning that we did not achieve our target.
We have begun efforts at overseas sites to reduce CO2 emissions in logistics, and we are studying a mechanism
to gauge emissions so as to properly reflect them in reduction activities.
The contribution to CO2 reduction by products in fiscal 2023 amounted to 4.233 million tons, up 42.6% over theprevious fiscal year. The intensity improved by 24.3% compared with the previous fiscal year, so we were able tosubstantially achieve our target.
Going forward, we will strive to develop eco-friendly products that contribute toward reducing the environmentalload of customers and society and to popularize such products by publicizing their value.

Society

Fiscal 2024 Goals
Reduction of CO2 emissions at manufacturing sites
Improve CO2 emission intensity from energy use by 1.8% compared with the previous fiscal year

GovernanceImprove energy consumption intensity by 1.0% of the previous fiscal year
Installation rate of renewable energy electricity in fiscal 2026: 50% (Scope 2)External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Reduce CO2 emissions from a life cycle perspective
Promote reduction of environmental load through activity of Scope3

Initiatives
Reduction of CO2 emissions at manufacturing sites

Expanded use of renewable energy
In November 2022 TDK joined the RE100 (Renewable Energy 100%).* Our aim is to increase the use ofelectricity derived from renewable energy at all our sites in Japan and overseas to 50% by 2025 and 100% by
2050.
Since April 1, 2023, all manufacturing sites in the Tohoku and Niigata areas of Japan have been using 100%
electricity derived from renewable energy. We are now promoting activities so that during 2023 all our principal
manufacturing sites in Japan come to use 100% renewable-derived electricity.
*The RE100 is a global initiative operated by a partnership between the Climate Group and CDP international environmental nongovernment organizations. It comprises
companies committed to using 100% renewable electricity in their business.

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Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

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Promotion of Renewable Energy Installation (As of July 1, 2023)
The following sites procure 100% of their power consumption from renewable energy:
Japan• TDK Head Office (Tokyo)• TDK Museum (Akita)• TDK Technical Center (Chiba)• TDK Narita Factory (Chiba)• TDK Asama Techno Factory (Nagano)• TDK Chikumagawa Techno Factory (Nagano)• TDK Shizuoka Factory (Shizuoka)• TDK Mikumagawa Factory (Oita)• TDK/TDK Electronics Factories Inakura Factory, East Site (Akita)• TDK Corporation Inakura Factory, West Site (Akita)• TDK/TDK Electronics Factories Honjo Factory, East Site (Akita)• TDK/TDK Electronics Factories Honjo Factory, West Site (Akita)• TDK/TDK Electronics Factories Kitakami Factory (Iwate)• TDK/TDK Electronics Factories Nikaho Factory, North Site (Akita)• TDK/TDK Electronics Factories Nikaho Factory, South Site (Akita)• TDK/TDK Electronics Factories Chokai Factory (Akita)• TDK/TDK Electronics Factories Ouchi Factory (Akita)• TDK/TDK Electronics Factories Iwaki Factory (Akita)• TDK/TDK Electronics Factories Sakata Factory (Yamagata)• TDK/TDK Electronics Factories Tsuruokanishi Factory (Yamagata)• TDK/TDK Electronics Factories Tsuruokahigashi Factory (Yamagata)• TDK/TDK Electronics Factories Kofu Factory (Yamanashi)• TDK Electronics Factories lida Factory (Nagano)• TDK-Lambda Nagaoka Technical Center (Niigata)• TDK Precision Tool Corporation (Kanagawa)
China• TDK-Lambda (China) Electronics Co., Ltd. (Wux i)• TDK (Zhuhai FTZ) Co., Ltd. (Zhuhai)• TDK (Zhuhai) Co., Ltd. (Hongqi)• SAE Components (ChangAn) Ltd. (Dongguan)
Asia• TDK Philippines Corporation (Laguna, Philippines)• TDK Electronics (Malaysia) SDN. BHD. (Johor Bahru, Malaysia)
Americas• Headway Technologies, Inc. (CA, USA)
• TDK Electronics do Brasil Ltda. (Gravataí, Brasil)
Europe, Middle East, Africa• TDK Electronics AG - HQ (Munich, Germany)• TDK Electronics AG (Heidenheim, Germany)• TDK Sensors AG & Co. KG (Berlin, Germany)• TDK Electronics GmbH & Co OG (Deutschlandsberg, Austria)• TDK Hungary Components Kft. (Szombathely, Hungary)• TDK Electronic Components, S.A.U. (Malaga, Spain)• TDK CROATIA d.o.o. (Kutina, Croatia)• TDK Foil Iceland ehf. (Akureyri, Iceland)• Tronics Microsystem SA (Crolles, France)• TDK-Lambda UK Ltd. (Devon, United Kingdom)• TDK-Lambda Ltd. (Karmiel, Israel)

The following sites have contracts to procure 50% or more of their power consumption from renewable energy:• SAE Magnetics (Dongguan) Ltd. (Dongguan, China)• Dongguan Amperex Technology Limited (Dongguan, China)• Dongguan NVT Technology Co., Ltd. (Dongguan, China)• Dongguan Poweramp Technology Ltd. (Dongguan, China)

The following site procures 100% of its purchased electricity from renewable energy:• TDK Foil Italy S.p.A. (Milano, Italy)

TDK’s ratio for the use of renewable energy (electricity only) worldwide is 39.9%.

Reduction of CO2 emissions at manufacturing sites
Reduction of CO2 emissions in logistics
TDK is promoting the following efforts to reduce CO2 emissions in the logistics stage:• Modal shift• Increased efficiency in inter-factory transportation through the concentrated location of manufacturing sites• Shortening of freight transportation distances by direct shipment• Miniaturization of products

100Sustainability Report 2023

Expansion of product contributions to reducing CO2 emissions
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TMR sensors contribute to reducing environmental load
By replacing conventional sensors with tunnel magneto-resistive (TMR) sensors, TDK has achieved a reductionof power consumption. The environmental contribution in fiscal 2023 was the equivalent of 6,098 tons of CO2.
Going forward, this contribution is expected to increase with expansion in the ICT and automotive markets.

Participation in Initiatives and Associations
In promoting efforts to resolve climate change issues, we participate in industry associations and initiatives thatare consistent with the vision and direction of the TDK Group. In participating in industry associations andinitiatives, the TDK Group deliberates in the Executive Committee and reports to the Board of Directors asnecessary. We also ensure that our environmental strategy is consistent with their activities, and take necessary
action if there is any inconsistency.

All you need toknow about TDK’s
sustainability!

TCFD

Sustainability
Management

In May 2019 TDK expressed its support for the Task Force on Climate-related Financial Disclosures (TCFD*),
which makes recommendations for analyzing and disclosing information on the impact of climate change on
corporate finance.
*The Task Force on Climate-related Financial Disclosures (TCFD) was founded in 2015 by the Financial Stability Board (FSB), an international body seeking to achieve thestabilization of the financial system.

Environment

Society

Governance

TCFD (Link to external site)

SBTi
In September 2022, TDK submitted a commitment letter to the SBT Initiative (SBTi), an organization that certifies“Science Based Targets,” greenhouse gas emission reduction targets that are scientifically consistent with thetargets set by the Paris Agreement. We have stated its intention to obtain SBT accreditation within two years.

RE100
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In November 2022, TDK has joined the RE100* international initiative as the company works toward ensuringthat 100% of the electricity used in its business activities comes from renewable energy. TDK plans tocontribute to the implementation of a sustainable society, aiming to convert electricity use at all of its businessfacilities around the world to 100% renewable energy by 2050.
*International initiative operated by Climate Group, an international environmental NGO, in partnership with CDP. It consists of companies committed to converting
electricity use in business activities to 100% renewable energy.

Japan Electronics and Information Technology Industries Association (JEITA)As a lead company of the JEITA Environment Committee and the Electronic Components Board and a memberof the Special Committee for Preventing Global Warming, we exchange information and opinions withgovernment ministers and environmental policy section officials, and make policy proposals to them.

JEITA Green x Digital Consortium
JEITA has established the Green x Digital Consortium as a space for pursuing activities that promote corporatecarbon neutrality and create and deploy new digital solutions leading to industrial and social transformation. We
have participated in this consortium since its foundation.

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Sustainability | Environment

Water Resources Conservation

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Our Approach

Goals and Achievements

Initiatives

Our Approach
As a result of such factors as economic development and population increases in developing countries, the useof water, which is a limited resource, is undergoing change, and water crises can be seen as one of the risks
exerting an impact on a global scale. At TDK, water is an essential resource in manufacturing activities. Since weare impacted by such events as the exhaustion of water resources and flooding, the proper understanding andmanagement of water risks are important issues for us.
TDK stipulates the TDK Supplier Code of Conduct and requests suppliers to address the management ofwastewater and efficient use of water.
Together with local communities and stakeholders, TDK will continue to promote sustainable water use.
From the procurement of raw materials to the disposal of products, TDK strives for operations with little
environmental load throughout the entire supply chain. Similarly, we promote the conservation of forestry
resources and water resources. In line with the TDK Environmental Charter, we aim for “Develop and Prosper inHarmony with the Global Environment.” Every single employee will act positively by thinking about the impact of
production activities on the environment and the relationship between corporate activities and the environment,
endeavoring to conserve an affluent global environment, and constantly paying heed to contributions topreserve the ecosystem.
Furthermore, in consideration of business characteristics, TDK has specified the key SDGs that we will focus onand clarified our policy of solving issues, including water-related problems, through technological developmentin our main businesses. As a water-related example, we are promoting the development of various sensors inaccordance with Goal 12 of the SDGs, which is titled “Responsible consumption and production.” In addition,
we are reducing water withdrawal in manufacturing processes.
Related links
The TDK Group Occupational Health/Safety andEnvironmental Charter

Climate Change Initiatives

Efforts to Achieve the SDGs

Goals and Achievements
Fiscal 2023 Goal

Achievement

Improve water withdrawal intensity by 1.5% compared with the previous fiscal year

Improved by 17.8% compared with the previous fiscal year102

Sustainability Report 2023

Trends in Total Water Withdrawal (Global)
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Evaluations and Future Activities
TDK sets numerical targets for water withdrawal. In fiscal 2023, TDK’s total water withdrawal amounted to
16,635,000 m3, which was down 2.4% from the previous fiscal year. In addition, intensity improved by 17.8%
compared with the previous fiscal year, so our target was achieved. Since water is not mixed inside TDK
products, consumption in manufacturing processes is extremely small and includes evaporation at the time ofcleaning.
Regarding water risks at all manufacturing sites of the TDK Group, we conduct investigations in accordance with
the TCFD using two global evaluation tools−the WWF Water Risk Filter1 and Aqueduct,2 announced by theWorld Resources Institute (WRI). This enables us to identify highly water-stressed regions and adopt
countermeasures. Of the sites that the survey identified as having high water risk, one site in India had a water
withdrawal of 31,000 m3 in fiscal 2023 (corresponding to less than 0.5% of the TDK Group’s total water
withdrawal). We will continue to monitor and manage regional water risks and the state of water use inproduction factories and endeavor to make improvements.
1 The WWF Water Risk Filter was developed by the World Wide Fund for Nature (WWF) and DEG, a German finance institution. The tool investigates, evaluates, andenables response to risks involving the water environment. The first version was released in 2012, since when it has been widely used by companies and investors aroundthe world. It has become a leading and highly trusted tool.
2 Since its launch in 2011, the Aqueduct evaluation tool, which has become a global standard relating to water risks, has been providing information on water-related risks,such as flooding, drought, and stress, to companies, governments, and nongovernmental organizations (NGOs).
Fiscal 2024 Goal
Improve water withdrawal intensity by 1.5% compared with the previous fiscal year103

Sustainability Report 2023

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Initiatives
TDK is tackling the reduction of water withdrawal and water recycling and collects water withdrawal anddischarge data for each site.
Specific activities include the following:

Reducing the Use of Purified Water in Production Processes(TDK Electronics Factories Corporation, Kitakami Factory)
At the Kitakami Factory in Iwate Prefecture, Japan, groundwater is used to produce purified water for production
processes. Through ongoing efforts to limit the amount of equipment and adjust the amount of water usedwithout compromising manufacturing quality, the factory succeeded in reducing water withdrawal by 100,000
m3 over a six-year period. This initiative will be kept going in the future to protect limited water resources.

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Sustainability | Environment

Effective Use of Resources

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Our Approach

Goals and Achievements

Initiatives

Our Approach
Amid the need to shift to a circular society, from the perspective of the effective use of limited resources, TDK
achieved its own standard of zero emission* in fiscal 2007 and, since then, has maintained this level andpromoted initiatives to curb the discharge of waste itself. In addition, TDK makes regular visits to recycle
businesses to check that recycling is being conducted properly.

Sustainability
Management

Environment

Society*At TDK, zero emission is defined as not processing any waste discharged from business sites by simple incineration treatments or placing it into landfills and eventually
recycling 100% of resources (excluding items that cannot be recycled alone due to legal restrictions).

Governance

External Evaluation/ Status of inclusionin the ESG Index

Goals and Achievements
Fiscal 2023 Goal

Achievements

Improve waste intensity by 1.5% compared with the previous fiscal year

Improved by 17.8% compared with the previous fiscal year

Trends in Amount of Waste (Global)
Search / Index*The figures have been corrected retroactively.

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Evaluations and Future Activities
As a result of efforts to optimize resource input in accordance with produced item and waste-reduction
activities, the total amount of waste discharged in fiscal 2023 decreased by 11.5% from the previous fiscal year
to 130,696 tons. Furthermore, our waste discharge intensity improved by 24.4% over the previous fiscal year,
which meant that our target was achieved.
Going forward, we are committed to promoting comprehensive process improvements and continued efforts to
reduce waste in terms of both the efficient utilization of resources and improvement in the yield rate.
Fiscal 2024 Goal
Improve water withdrawal intensity by 1.5% compared with the previous fiscal year

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Sustainability
Management

Environment

Society

Initiatives
Reduction of Hazardous Waste■

Efforts to Halve Hazardous Waste
The Malaga Factory in Spain, which belongs to TDK Electronics Components, promoted a project to reduce thehazardous waste occurring in the manufacture of film capacitors, such as metallic film, capacitor scrap, andcuring resin.
By the continued implementation of such measures as improved yield through optimization of the heattreatment process and enhancement of resin use efficiency, the factory succeeded in reducing waste, including
hazardous waste, by 64%.
At the same time, the Malaga Factory is also striving to reduce the load on the global environment through suchactivities as revision of the operation of air-conditioning equipment and the installation of solar panels.

Promotion of Circular Economy Activities■

Governance

External Evaluation/ Status of inclusionin the ESG Index

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Reuse of PET Films (Multilayer Ceramic Capacitors)
For the first time in the electronic components industry,1 TDK succeeded in building a recycling system for thereuse of PET films used in the manufacturing process of multilayer ceramic capacitors (MLCCs).
Normally the surfaces of PET films used when applying dielectric paste in the MLCC manufacturing process
undergo special processing, so after use in the manufacturing process, they are mainly thermal-recycled orincinerated.
In the new system, however, the surfaces of waste PET films are washed, returned to PET plastic form (aspellets), and then formed into films at Toray Corporation (based in Chuo-ku, Tokyo), which is TDK’s partner inthis project. TDK then purchases these films and applies special processing to them, thereby enabling theirreuse in the MLCC manufacturing process. The recycled PET films used in this system reduce CO2 emissions by
about 10%2 compared with conventional PET films.
1 As of December 2021; TDK investigations
2 Meaning CO2 emissions in the PET film manufacturing process; Toray investigations

Related link
Multilayer Ceramic Capacitors: TDK demonstrates
industry-first recycling of PET films for MLCCs

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Initiative from Product Design (Power Inductors Using Recycled Materials)
In the CLT32 series of power inductors, TDK is increasing the ratios of recycled iron and recycled copper used;
in total, the product contains more than 50% recycled metals. In addition, silver and nickel used to be essential
in this series to realize the traditional level of performance. But efforts at the time of development and design
have borne fruit, and now the inductors can be manufactured with no silver and just a little nickel. This initiative
has led to the curbing of procurement and manufacturing costs.
The features of the CLT32 series of power inductors are their high output, compactness, low energy
consumption, and long life. They have been certified as Super Eco Love products.**Among environment-conscious products, TDK certifies products that have a substantial effect in reducing the environmental load and lead others in the industry as Eco
Love products. And among these Eco Love products, we certify products that have an especially substantial effect and are positioned at the top level in the industry as
Super Eco Love products.

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Sustainability | Environment

Reduce Risks of Chemical Use

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Our Approach

Goals and Achievements

Management of Chemical Substances in Products

Our Approach
Management of Chemical Substances in Products
In 2004, TDK introduced the “Environmental Product Quality Management System” (EPQMS) as a system toprevent and control exposure to hazardous substances in products that threaten human health and theenvironment, and we operate it within our Quality Management System (QMS).

Management of Chemical Substances in Manufacturing Processes
We are promoting management of chemical substances globally by means of common guidelines with the goalsof understanding the hazardousness and danger of chemical substances, and improving safety in their handlingin compliance with each nation’s laws and the like.
In addition, we are moving forward on reducing the use and emissions of hazardous or dangerous chemical
substances in order to reduce their impact on the environment as well as to mitigate the health risks toemployees and risks of fires or explosions.

Goals and Achievements
Fiscal 2023 Goal

Achievement

To promote the management of chemical substances globally by means ofcommon guidelines and raise awareness in-house about the situation surrounding
regulated chemical substances.

We have begun operation of uniform guidelines on the use of chemical
substances, and initiated training on the management of chemical substances fordevelopment engineers. To coincide with this we have newly established acompany intranet to share information on chemical substances.

Evaluations and Future Activities
We have succeeded in laying the foundations for in-house awareness-raising on management of chemical
substances through the start of operations of the unified guidelines, the implementation of training fordevelopment engineers, and the establishment of the new website to share information on chemical
substances.
Going forward, we will expand the scope of the training for development engineers and deliver basic training on
chemical substances for general employees to further promote in-house awareness-raising.
Fiscal 2024 Goal
Ongoing promotion of in-house awareness-raising through expansion of the scope of training for development engineers and implementation of basic training for
general employees.

Related link
Environmental Risk Management at Manufacturing
Sites

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Sustainability
Management

Management of Chemical Substances in Products
In the context of the increased stringency of laws and regulations and international conventions relating to the
management of chemical substances in products, including the EU’s RoHS Directive and REACH Regulation,
China’s RoHS management regulations, the United States’ TSCA regulations and the UN’s POPs Convention,
the TDK Group complies with domestic and international laws and regulations as well as customer
requirements, implementing initiatives aimed at “delivering products with low environmental load.”
TDK complies with the RoHS Directive for all its products1 and, as an early response measure, instituted aprohibition on the use in its products of the four phthalate esters2 banned under the directive on July 22, 2018, a
year in advance of the directive becoming legally effective.
1. Excluding some products based on customer specifications
2. DEHP, BBP, DBP, and DIBP

We introduced the Environmental Product Quality Management System (EPQMS) in 2004, as a mechanism tofurther maintain and guarantee these initiatives, and it is currently in operation as part of the Quality
Management System (QMS). As a component manufacturer positioned in the midstream of the supply chain,
this system ensures thorough prevention and control at each of the stages of “buying”, “creating,” and “selling.”
Related links
Prevention and Control of Exposure to Hazardous
Substances in Products

Environment

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Responses to Environmental Standards andEnvironment-Conscious Products ECO LOVE

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Sustainability | Environment

Approach to Biodiversity

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Sustainability
Management

Environment

Society

Guidelines for Action by the Electrical and Electronics
Industries concerning Biodiversity Conservation

Our Approach
Initiatives

Our Approach
At TDK, we recognize the importance of biodiversity and aim to avoid or minimize the negative impacts of ourbusiness activities on the global environment and ecosystems. Throughout the entire supply chain, from theprocurement of raw materials to product disposal, we strive to operate with little environmental load and toconserve forestry resources and water resources. In collaboration with external partners, such as local
communities, we also promote ecosystem restoration activities and initiatives to realize a circular economy that
does not harm the cycle of nature.
All TDK employees are aware of the impact on the environment from production activities. We consider the
relationship between business operations and the environment and strive to protect an affluent global
environment. The TDK Environmental Charter, revised in April 2018, expressly provides that employees are toconsider contributions to ecosystems and take proactive action at all times.
Related links
The TDK Group Occupational Health/Safety andEnvironmental Charter

Promotion of Circular Economy Activities

Governance

Guidelines for Action by the Electrical and Electronics Industries concerning
Biodiversity Conservation

External Evaluation/ Status of inclusionin the ESG Index

In March 2015 the Biodiversity Working Group of the four Electrical and Electronic Industry Associations*published the Guidelines for Action by the Electrical and Electronics Industries concerning Biodiversity
Conservation (second edition published in August 2018). TDK fully supports this initiative and is implementing
the guidelines through our activities aimed at protecting biodiversity.

Search / Index*The Japan Electrical Manufacturers’ Association (JEMA), Japan Electronics and Information Technology Industries Association (JEITA), Communications and Information
Network Association of Japan (CIAJ), and Japan Business Machine and Information System Industries Association (JBMIA)

Related links
Guidelines for Action by the Electrical and Electronics Industries concerning Biodiversity Conservation (Linkto external site)
Major Nature Protection Activities by TDK (Social Contribution Activities)

Initiatives
Consideration of water resources (Global)
At TDK, water is an essential resource in manufacturing activities. Since we are impacted by such events as theexhaustion of water resources and flooding, the proper understanding and management of water risks areimportant issues for us. We monitor and manage regional water risks and the state of water use in production
factories and endeavor to reduce water withdrawals in manufacturing processes.

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Editorial Policy

The reduction of water withdrawal is one of the activities in the “TDK Environment, Health and Safety Action
2025,” and we have set an annual reduction target of 1.5% improvement in the intensity of water withdrawal
compared to the previous fiscal year. In fiscal 2023 TDK’s total water withdrawal amounted to 16,635,000 m3,
which was down 2.4% from the previous fiscal year. In addition, intensity improved by 17.8% compared with theprevious fiscal year, so our target was achieved.
For more information on our approach to water resources, please see the link below.

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Sustainability
Management

Environment

Water Resources Conservation

Nashik Factory of TDK India Private Limited Plants Miyawaki Forest Belt to Heighten
Biodiversity
The Nashik Factory in India has planted a forest belt based on the Miyawaki Method* on land covering about
4,000 m2 adjacent to the Nashik Factory. About 1,000 trees and plants of more than 60 species were planted on
the site. At a ceremony marking the start of this afforestation, the participants also engaged in a cleanup
campaign. Such activities lead to a raising of employees’ awareness of biodiversity. Furthermore, the factory,
which has invested about 35,000 euros in this project, has asked the nonprofit Nashik Saytrees Environmental
Trust for cooperation in maintaining the forest belt. Besides biodiversity, the Nashik Factory endeavors to ease
the environmental load by improving soil and air quality and reducing noise.
*The Miyawaki Method was conceived by the Japanese ecologist Akira Miyawaki, who was already tackling forestry development and greenification in large urban areas in
the 1970s. The method involves selecting trees and plants that can grow naturally in the soil and are best for the ecosystem, growing seedlings, and then planting them in amixed-color and dense fashion. While taking advantage of the qualities of the vegetation, it restores a natural situation. Thanks to this method, forests grow 10 times fasterand with three times more density than normal, leading to 30 times greater CO2 absorption. A self-sufficient natural forest is created in three years.

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External Assurance

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Third-Party Verification

Third-Party Review of Environmental Performance Data

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Third-Party Verification
TDK calculates direct GHG emissions (Scope 1), indirect GHG emissions from energy sources (Scope 2), andother indirect GHG emissions (Scope 3), and undergoes a third-party verification by SGS Japan Inc.

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Third-Party Review of Environmental Performance Data
In order to improve the objectivity of environmental performance data, the following items were subject to athird-party review by SGS Japan Inc.
• Calculation method for CO2 emissions from production activities• Calculation method for reduction of CO2 emissions through products

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A History of TDK’s Environmental Activities

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2023

Mar. Selected as the Leaderboard (highest rating) of the CDP Supplier Engagement Rating for three consecutive years
Dec. Named on CDP’s “A” list for the category of water-security (highest rating) for three consecutive years
Nov. Joined the RE100 global initiative with a commitment toward use of 100% renewable energy for energy consumed in business activities

Message fromthe President
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2022

Sept. Submitted a letter of commitment to the Science Based Targets Initiative (SBTi), an organization that certifies Science Based Targets—greenhousegas emission reduction targets that are scientifically consistent with the targets set by the Paris Agreement
Mar. Selected as an “Environmentally Sustainable Company” in the ESG Finance Awards Japan
Feb. Selected as the Leaderboard (highest rating) of the CDP Supplier Engagement Rating for two consecutive years

CPSO
MessageDec. Named on CDP’s “A” list for the category of water-security (highest rating) for two consecutive years
2021

Oct. Issued TDK’s first Sustainability-Linked Bonds
Feb. Selected as the Leaderboard (highest rating) of the CDP Supplier Engagement Rating

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Dec. Named on CDP’s “A” list for the category of water-security (highest rating)Dec. Received rating of ‘A- (A minus)’ from CDP for climate change
2020

Feb. Commendation from the U.S. Environmental Protection Agency for Reduction Efforts of Metal Waste (Lead and Copper)

Sustainability
Management

Jan. TDK Asama Techno Factory received The Energy Conservation Center, Japan Chairman’s Award in the Energy Conservation Best Practice Category of
the FY2019
2019

Environment

2018

2017

Society

External Evaluation/ Status of inclusionin the ESG Index

Clean energy purchasing promoted primarily at European sites of TDK Electronics AG
Revision of the TDK Environmental Charter (fifth edition)
Received a special award in the DBJ Environmental Rating for the third consecutive year
Total abolition of high-concentration PCB equipment in JapanTDK Environment, Safety and Health Action 2025 formulated as fundamental environmental plan in accordance with the TDK Environmental Vision 2035
(started from April 2016)

2015

Achieved the fundamental environmental plan “TDK Environmental Action 2020” goal of a one million-ton environmental contributions

2012

Received a special award in the DBJ Environmental Rating for second time in a row

2011

Fundamental environmental plan, TDK Environment Action 2020, drafted (started from April 2011)2010

Became the first electronic components manufacturer to receive a special award in the Environmental Rating from Development Bank of Japan (DBJ)2009

TDK Biodiversity Action Agenda established2007

Search / Index

May. Expressed support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)*1“Guidelines for Calculation of Product Contributions” published with the aim of enhancing the reliability of product contribution calculations
2016

GovernanceAug. Achieved local production for local consumption of renewable energy at the TDK Museum

Chinese headquarters obtained ISO14001 certification (first step toward integration of EMS in China into company-wide system)
Zero emissions achieved*2 for manufacturing facilities of all overseas subsidiaries

2006

EMS integration for all manufacturing facilities in Japan completed

2005

Fundamental environmental plan, TDK Environmental Action 2015, drafted (started from April 2006)

2003

Zero emissions achieved*2 at all TDK sites in Japan

2002

Fundamental environmental plan, TDK Environmental Activities 2010, drafted (starged from April 2003)

2000

ISO 14001 certification of all manufacturing and R&D facilities of TDK Group in Japan completed

1999

Regular release of Environmental Report begins

1993

TDK Environmental Voluntary Plan formulated*1 The Task Force on Climate-Related Financial Disclosures (TCFD) was created in 2015 by the Financial Stability Board (FSB), an international body seeking to achieve thestabilization of the financial system.
*2 Zero emissions is defined at TDK as 100% final resource recovery without any disposal by landfilling or simple incineration of waste produced at business sites(excluding resources which cannot be recovered separately under the legal framework)

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Sustainability | Environment

Environmental Data

CONTENTS

Unit

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sustainability!

Energy(Manufacturing)

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Waste

1,669,733

FY2021

1,557,687

FY2022

1,768,010

FY2023

Scope1t-CO2

120,978

111,341

136,021

146,774

146,350

Scope2t-CO2

1,548,755

1,446,346

1,631,989

1,554,703

1,236,669

Total energy consumption(A)+(B)+(C)+(D)+(E)+(F)GJ

13,640,216

13,539,550

16,068,546

17,078,863

16,780,723

Total energy consumption(A)+(B)+(C)+(D)+(E)+(F)MWh3,788,949

3,760,986

4,463,485

4,744,129

4,661,312

Total renewable energy
consumption (A)+(C)+(E)MWh648,346

581,542896,340

1,192,056

1,548,677

Renewable fuels (A)

MWh

9,015

8,778

8,344

8,074

7,787

Non-renewable fuels (B)MWh635,027604,262

742,384788,613796,026

Renewable electricity
purchased (C)MWh

639,029572,189886,632

1,182,202

1,538,759

Electricity purchased + Onsite generated electricity (nonrenewable fuels) (D)MWh2,505,576

2,575,182

2,824,761

2,763,460

2,316,610

On-site generated electricity(renewable fuels) (E)

MWh

302

575

1,364

1,780

2,131

On-site generated electricity(renewable fuels, amount formarket)

MWh

0

0

0

0

0

Steam/heating and otherenergy (renewable) purchased
(F)

MWh

0

0

0

0

0

thousand m3

1,701,476

1,383,019

16,704

16,33817,783

17,04916,635

Total municipal water supplies(or from other water utilities)

3

thousand m

11,631

11,26812,073

11,817

11,718Fresh surface water (lakes,
rivers, etc.)

thousand m3

0

131

110

133

147

Fresh groundwater

thousand m3

5,073

4,939

5,600

5,099

4,770

Total water discharge

thousand m3-

11,104

12,88913,106

11,730Non-hazardous waste generatedt

90,478108,110

134,830

147,036

130,112Non-hazardous waste
externally recycled/soldt

76,673

95,427133,044

145,060

127,982

Non-hazardous waste
internally recycled/usedt

13,805

5,851

1,171

1,468

1,529

Non-hazardous waste
disposed*1

t

0

6,832

615

508

601

Hazardous waste generated

t

1,660

764

107

579

584

Hazardous waste externallyrecycled/sold

t

1,456

662

97

498

451

Hazardous waste internallyrecycled/used

t

0

0

0

0

0

Hazardous waste disposed*1

t

204

102

10

81

133

Total waste generatedt

92,138108,874

134,937

147,615

130,696

Total waste externallyrecycled/soldt

78,12896,089133,141

145,559

128,433

Total waste internallyrecycled/usedt

13,806

5,852

1,171

1,468

1,529

*1

Compliance withlaws and
accidents

FY2020t-CO2Total water withdrawal

Water

FY2019CO₂ emissions

Total waste disposed

t

204

6,934

625

589

734

Legal breaches and accidents

instance

0

1

0

0

0

Fines of US$10,000 or moreinstance

0

0

0

0

0

Fine amounts (US$10,000 or
more)

USD

0

0

0

0

0

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PRTR substance emissions(Japan)t

SOx emissions (Japan)

t

2

1

1

0

0

NOx emissions (Japan)

t

17

18

18

38

29

Dust emissions (Japan)

t

3

3

3

2

3

Volatile Organic Compounds(VOC) emissions*2

t

244

264

276

271

488

155

156

154

CO2 Emissions in Value Chain (Fiscal 2023)
CO2 Emissions by Category and Scope
Category

CO2 emissions
t-CO2

OutlineScope 1

Production

146,350

Scope 2

Production

1,236,669

1

Purchased goods & services

9,607,890

2

Capital goods

3

Fuel- and energy-related activities

4

Upstream transportation & distribution

5

Waste generated in operations

7,409

6

Business travel

40,728

7

Employee commuting

8

Upstream leased assets

Not applicable

Environment

Scope 3Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

78*Ratio of electricity from renewable energy sources (%) is calculated by [(C)+(E)/(C)+(D)+(E)].
*1 TDK is promoting zero emissions, but Waste is disposed at newly joined subsidiaries.
*2 From fiscal 2023, the data coverage has been expanded globally. Data for fiscal 2018-2021 cover Japan only.

Sustainability
Management

Society

85

901,708
1,217,373
238,076

7,911

9

Downstream transportation & distribution

Not applicable

10

Processing of sold products

Not applicable11

Use of sold products

12End-of-life treatment of sold products

Not applicable13

Downstream leased assets

Not applicable

14

Franchises

Not applicable

15

Investment

Not applicable

14,477,887

Methods of Calculating CO2 Emissions in Scope 3
Category

OutlineCalculation method

1

Purchased goods & services

Products purchased in the fiscal year concerned multiplied by the emission intensity for each purchase price.
Regarding materials, the purchase price of the main constituent materials in each product (excluding
semifinished products) multiplied by the emission intensity.

2

Capital goods

The price of equipment and other capital goods acquired in the fiscal year concerned multiplied by theemission intensity for each investment amount.

3

Fuel- and energy-related activities

Calculated according to emissions in the extraction, production, and transportation of purchased fuel and fuelused when purchased electricity is generated. Fuel: Each fuel purchased in the fiscal year concerned multipliedby the emission intensity. Electricity: Purchased electricity quantity multiplied by the emission intensity.

4

Upstream transportation &distribution

Calculated according to emissions involved in the procurement of purchased products and services andemissions involved in the transportation of manufactured products. Regarding purchased products andservices, each of the same items as in Category 1 multiplied by the emission intensity involved in procurement.
Regarding manufactured products, expenses involved in shipment multiplied by the emission intensity.

5

Waste generated in operations

Regarding waste at manufacturing sites excluding valuables, financial value of the waste multiplied by theemission intensity.

6

Business travel

Business travel expenditure is calculated by multiplying expenses involved in employee travel by the domestic
employee commuting/business travel expense ratio. Emissions are then calculated by multiplying this businesstravel expenditure by the emission intensity taking account of the content of business travel.

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Employee commuting

Commuting expenditure is calculated by multiplying expenses involved in employee travel by the domestic
employee commuting/business travel expense ratio. Emissions are then calculated by multiplying thiscommuting expenditure by the emission intensity assumed from the means of commuting.

8

Upstream leased assets

Emissions from the use of leased equipment are reported under Scope 1 and 2.

9Downstream transportation &distribution

TDK is a midstream company, a manufacturer of electronic components, so this is not applicable.

10

Processing of sold products

Not applicable because the emissions associated with the processing of our products by our customers are
small.

11

Use of sold productsElectricity consumed by TDK products (components) multiplied by the lifelong operating time of set items
contained in the product, conversion coefficient, and quantity of TDK products (components)sold.

12

End-of-life treatment of soldproducts

TDK is a midstream company, a manufacturer of electronic components, so this is not applicable.

13

Downstream leased assets

Not applicable because there is no applicable business activity.

14

Franchises

Not applicable as there are no franchise stores.

15

Investment

Not applicable as there is no applicable investment.

Data by Site
April 2022 - March 2023

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

EnergyFacility

Electricity use(Purchased)
MWh

Water

Waste

Total water
withdrawal
thousand m3

Fuel use
GJ

Total waste
generatedtExternallyrecycled/soldt

Japan
TDK Corporation
Chokai Factory

2,311

0

3,072

648

648

Inakura Factory

23,466

26,644

91,842

1,371

1,371

Nikaho Factory (North site)

20,09653,185

179,778

2,671

2,671

Nikaho Factory (South site)

11,8103,822

14,712

84

84

Narita Factory

72,226

5,533

249,227

1,706

1,689

Chikumagawa Techno Factory

5,751

16,734

3,488

80

80

Asama Techno Factory

42,33035,436

212,173

1,637

1,637

Shizuoka Factory

37,47946,528

115,697

2,953

1,503

Mikumagawa Factory

18,402

122,346

520,172

1,458

1,458

Honjo Factory (West site)

109,010

135,601

499,262

6,306

6,306

Honjo Factory (East site)

29,12959,02358,756279

279

Kitakami Factory

94,129115,280

426,828

4,635

4,635

Ouchi Factory

42,88456,35478,847756

744

TDK Electronics Factories Corporation

Iwaki Factory

2,789

3,527

55,286283

283

Kofu Factory

35,01056,023641,899

1,215

1,215

Tsuruoka Factory

11,332

3,023

10,738394

394

Sakata Factory

14,844

1,556

13,614

141

141

Iida Factory

5,908

42.4

2,102

222

222

Tsuruokahigashi Factory

10,52922,627

406,616

930

930

*1

TDK-Lambda Corporation

3,513

20.4

161,586

90

90

TDK Precision Tool Corporation

454

0.5

278

25

25

Development and Office Divisions

13,02433,681

40,682

160

158

119

Sustainability Report 2023

East Asia

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TDK Dalian Corporation

43,857550

188,619

218

208

Qingdao TDK Electronics Co., Ltd.

14,111045,276227

227

TDK (Suzhou) Co., Ltd.

3,297

0

7,085

78

78

TDK Xiamen Co., Ltd.

122,810

113,438

526,184

3,017

2,896

SAE Magnetics (H.K.) Ltd.

157,582

12,259

1,074,322

1,256

1,256

Amperex Technology Ltd.

1,165,422

913,2363,489,327

62,39962,3995,979

153

46,970486

377

Acrathon Precision Technologies (HK) Ltd.
Wuxi TDK-Lambda Electronics Co., Ltd.

3,659

0

6,954

90

90

TDK Dongguan Technology Co., Ltd.

54,60841,354

225,852

2,312

2,312

Guangdong TDK Rising Rare Earth High Technology

11,387

038,15988

88

TDK Korea Corporation

18,1473480.1

44,82462

62

TDK Taiwan Corporation

14,281

1,587

77,230259

259

InvenSense Taiwan Co., Ltd.

12,060014,89922

22

Dongguan NVT Technology Co., Ltd.

63,724

11,681

317,552

3,727

3,727

TDK Philippines Corporation

22,2681,255

232,952

49

49

TDK (Malaysia) Sdn. Bhd.

18,196075,5661507

1507

TDK (Thailand) Co., Ltd.

11,084841.9

146,584889

889

Magnecomp Precision Technology Public Co., Ltd.

79,210100,848

667,470276

276

TDK-Lambda Malaysia Sdn. Bhd.

8,608

349

48,045289

272

Hutchinson Technology Operations (Thailand), Co., Ltd.

20,137

0133,922209

209

Navitasys India Private Limited

12,4488,162

31,808

1,773

1,773

Other Asia

Sustainability
Management

Environment

Society

Governance

EMEA
TDK-Lambda Ltd.

2,784

0

2,499

224

224

TDK-Lambda UK Ltd.

1,441

227.3

1,912

104

104

45,643

264,348357,606

679

679

1,982

842.6

896

45

45

74,171

86,187

123,958473

445

Micronas-UK
Micronas-Germany
The Americas

External Evaluation/ Status of inclusionin the ESG Index

TDK Components U.S.A., Inc.
TDK Ferrites Corporation
Headway Technologies, Inc.

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TDK-Lambda Americas Inc.

2,223

2,259

2,489

14

4

Hutchinson Technology Inc.

37,263

146,143

395,9531100

483

1,046,398

695,7024,009,757

18,524

14,617TDK Electronics
TDK Electronics Group※2*1 Figures are for Nagaoka Technical Center.
*2 TDK Electronics Group includes TDK Electronics AG and its subsidiaries.

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Editorial Policy

Environmental Accounting (Japan)
TDK has historically monitored both the cost of its environmental protection efforts and the load its activities
place on the environment. In fiscal 2002, to clarify the relationship between load and cost, and to promote more
effective environmental measures, TDK introduced environmental accounting for all of its facilities in Japan.
A summary of fiscal 2023 results is given below.
Environmental cost

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Economic benefit

Environmental conservation benefit

Amount of reduction achieved due toenvironmental conservation activities(unit: thousand yen)

Improvement in environmental load due toenvironmental conservation activities,
observance of laws/regulations and otherresults

Total investment(unit: thousand yen)

Total environmental
conservation,
maintenance andmanagement costs(unit: thousand yen)

Pollution prevention(Regulatory controls)

1,165,410

1,025,118

Global environmental
conservation

360,481

392,485• Electricity and fuel savings: 23,032• CO2 emissions reduction: 581 t-CO2

Resource circulation

69,752

1,346,975• Materials usage savings: 87,629• Service water usage savings: 1,342• Profit from sale of valuable materials:
1,708,155• Materials usage reduction: 3,196 t• Service water use reduction: 7,427 m3• Volume of valuable materials sold: 8,432 t• Volume recycled externally: 18,343 t

Risk management500

15,039

2. Upstream anddownstream cost

00

3. Administration cost

0

6,889

4. R&D cost0231

• Environment-conscious products research/development projects: 30

5. Social activity cost

0

1,054

• Number of trees planted outside company :900• Aggregate number of employees
participated in volunteer activities: 4,198

6. Environmental
remediation cost00

• Repair/restoration actions (incurring costs) :
0

Total

1,596,143

2,787,791

Category

1. Business area cost
• Complaints regarding vibrations/noise/
odor: 0• PRTR controlled substances emissions: 0 t• Soil contamination risk countermeasurestaken: 0*The investment amount for the fiscal year is the amount paid in fiscal 2023.
External Evaluation/ Status of inclusionin the ESG Index

Search / Index*Equipment depreciation costs (as defined by law) are included as part of environmental conservation, maintenance, and management costs, but personnel costs are notincluded as they are determined by the number of employees in a given fiscal year.
*Only actual benefits are included. Hypothetical impacts (risk-avoidance impact or presumed impact) are not included.

Summary of Fiscal 2023
• Environment-related capital investment increased in the previous year from ¥429 million to ¥1,596 million.
• Environmental conservation, maintenance and management costs increased in the previous year from ¥1,613
million to ¥2,788 million.
• The economic benefits of environmental conservation activities increased from ¥1,664 million to ¥1,820
million, mainly due to an increase in sales price of valuable materials sold.

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Sustainability | Society

Respect for Human Rights

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Our Approach

Due Diligence Process

Identification and Evaluation of Human Rights Risks

Initiatives for Prevention and Reduction of Human
Rights Risks

Communication with external parties

Collaborative Initiatives

Our Approach
Understanding of global trends on human rights issues
Since the UN Human Rights Council adopted the “protect, respect, and remedy” framework, known as the
Ruggie Framework, with regard to business and human rights in 2008, a series of international Corporate Social
Responsibility (“CSR”) guidelines and UN and EU policies have been introduced in accordance with theframework, and several jurisdictions around the world have enacted laws addressing human rights in thecontext of international business. Specifically, these include the conflict minerals clause in the US Dodd-Frank
Wall Street Reform and Consumer Protection Act enacted in 2010, the Transparency in Supply Chains Act
enacted in the US State of California in 2010, the UN Guiding Principles on Business and Human Rights in
2011, the Modern Slavery Act in the United Kingdom in 2015, the EU regulation on conflict minerals in 2017, theChild Labor Due Diligence Act in the Netherlands in 2019, the Due Diligence in the Supply Chain Act in Germany
in 2021, and the Transparency Act in Norway in 2021. This trend represents a strong appeal to companies tospecifically identify human rights issues in their business activities and take appropriate action.

Our policies for respecting human rights
The TDK Code of Conduct states that “The TDK Group will continue to respect human rights, comply with
relevant laws and regulations and international rules, and discharge its social responsibility with a strong senseof ethical values for the purpose of creating a sustainable society.” To this end, the TDK Code of Conduct
requires respect for human rights, and we specifically prohibit any form of child labor and forced labor including
human trafficking in our supply chains. The TDK Code of Conduct also requires compliance with all relevant
human rights laws and regulations including those prohibiting child and forced labor in the supply chain, such as
Section 307 of the US Tariff Act of 1930, as amended, and the other laws identified above.
The TDK Group Policy on Human Rights was formulated in 2016. We respect and support international norms
on human rights including the International Bill of Human Rights, the ILO Declaration on Fundamental Principles
and Rights at Work, the OECD Guidelines for Multinational Enterprises, and the Children’s Rights and Business
Principles. Based on the framework of the UN Guiding Principles on Business and Human Rights, TDK
promotes the correct understanding of potential human rights issues and takes steps to address them, not only
within the business operations of the TDK itself but also throughout the value chain. We expect our business
partners and suppliers to understand and support the TDK Group Policy on Human Rights, and we also include
the prohibition of child and forced labor in the TDK Supplier Code of Conduct and require our business partners
and suppliers to comply with it.
Related links
TDK Code of Conduct

TDK Group Policy on Human Rights

TDK Group - Human Rights Statement

TDK Supplier Code of Conduct

122Sustainability Report 2023

CONTENTS

Editorial Policy

Due Diligence Process
The TDK undertakes human rights due diligence processes and promotes its due diligence activities in line withthe procedures set out in the UN Guiding Principles on Business and Human Rights. We also continue todialogue with internal/external parties and stakeholders to make our activities more effective.

Human Rights Due Diligence Process of TDK Group
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Sustainability
Management• TDK Code of Conduct• TDK Group Policy on
Human Rights• TDK Supplier Code of
Conduct

Environment• Identify potential
human rights issues inthe value chain• Implement measuresfor each key theme andperiodic review• Evaluate risks byprobability, humanrights impact, and scaleof our company’s
leverage• Training• Sustainability Website• Human Rights
Statement• Prioritze key themes
based on risk
evaluation result

Society• Assess detailed risks
for each key theme• Assess potential humanrights risks in potential
new business
relationships createdthrough M&A andsimilar transactions

Governance

External Evaluation/ Status of inclusionin the ESG Index

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Identification and Evaluation of Human Rights Risks
Human rights key themes of TDK GroupThe TDK periodically assesses the issues which could present potential human rights risks and the groups ofpeople who might be vulnerable to such risks through dialogues with external parties, reports from international
human rights organizations and conducting risk assessments and CSR self-checks. (See the figure below)

Potential human rights risks that may be addressed by the TDK Group
Value chain

Procurement
Potentially affected stakeholders

Development and Manufacturing

Sales

Employees of
sub-contractors,
suppliers and laboragencies

Communities

Group employees

Communities

Customers/
End users

Product safety

-

-

-

-

◯

Human rights infringement by unintended use of
products and technologies

-

-

-

-

◯

Potential human rights issue

123Sustainability Report 2023

Protection of personal information and privacy

CONTENTSChild labor, forced labor and human trafficking
Working hours and fair wage management
Occupational safety and health

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Sustainability
Management

Environment

Society

Governance

◯

-

◯

-

◯

-

◯

-

◯
◯
◯
◯

-

◯

-

-

-

-

-

-

Unfair treatment of foreign workers

◯

-

◯

-

-

Discrimination (treatment of employment, pay,training, promotion, etc.)

◯

-

◯

-

-

Freedom of association and the right to collective
bargaining and concerted action

◯

-

◯

-

-

Harassment

◯

-

◯

-

-

-

-

-

Responsible sourcing of minerals◯◯

Impact on employment by establishment, closing andconsolidation of facilities

◯

◯

◯

◯

-

Infringement of local residents’ rights by inappropriate
environmental management in a factory (healthhazard, degradation of daily life environment anddecrease in assets, etc.)

-

◯

-

◯

-

We conduct ongoing reviews of our operations in order to evaluate the potential human rights risks identified
above by considering the risk of occurrence of human rights infringement, the impact on human rights should
the infringement occur, and the scale of impact that our company can leverage, considering our ongoing due
diligence activities such as CSR self-check, risk assessment etc. As a result, we have prioritized the following 3
human rights key themes, focusing on preventive/remediation measures and their monitoring. In addition, we
periodically review these human rights key themes.

• Responsible sourcing of minerals• Respecting human rights of employees at our manufacturing sites• Respecting human rights of employees at suppliers (including manufacturing subcontractors and labor agencies)
Our Approach for Each Human Rights Issue
Prohibition of Child Labor and Forced Labor

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The TDK Code of Conduct strictly prohibits the use of child labor and forced labor* throughout the supply chain,
and we conduct various measures to prevent their occurrence. We also prohibit child labor and forced labor in
the TDK Supplier Code of Conduct and require our suppliers to be aligned with us in these efforts.
*Forced Labor refers to any labor that is coerced, such as by threat or intimidation of punishment, and is not voluntarily offered.
(Example: As a measure of compelling involuntary labor, to collect recruitment fees from workers, to restrict workers’ freedom of movement unreasonably, and to hold/destroy/conceal/confiscate workers’ government-issued identification cards, etc.)

Working Hours and Fair Wage Management
We use dedicated labor management systems at each of our sites and pay wages based on appropriate work
performance management. In the TDK Supplier Code of Conduct, we state our approach regarding long
working hours, overtime work, compensation and minimum wage etc.

Occupational Safety and Health
Recognizing that a safe and healthy working environment is critical for protecting our employees and therefore isof the utmost importance to TDK, TDK has updated the TDK Group Occupational Health/Safety andEnvironmental Charter and promotes safe and healthy working conditions in 2022. We also established a ‘Healthand Safety’ agenda in the TDK Supplier Code of Conduct and indicate our approach for identification andreduction of potential safety risks in the working environment, response to emergencies, occupational accidents
and diseases, internal communication for safety and health, etc.

124

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Health and Safety

Protection of foreign workers
Foreign workers are susceptible to becoming victims of forced labor and human trafficking, as they are more
likely to have low social and economic position, especially non-skilled workers.
We take necessary measures in terms of the respect of human rights to prevent such abuses and to remediatethem in the supply chain.

Prohibition against discrimination
The TDK Code of Conduct ensures equal opportunities for all employees by prohibiting all forms of
discrimination with respect to employment, treatment (compensation, opportunities for trainings andadvancement etc.) and other similar matters based on race, beliefs, gender, religion, nationality, ethnicity, age,marital status, disability, sexual orientation, gender identity, military status, genetic information, social status etc.
We also require the same protections in the TDK Supplier Code of Conduct. The TDK‘s business activities(including contracts and subcontracting) are carried out not only as a matter of good business practice, but in aneffort to fulfill our social responsibility in complying with laws and regulations, and respecting human rights andlabor rights.

Freedom of association and the right to collective bargaining and concerted action
TDK Corporation and some of our subsidiaries have labor unions. In addition, in countries where labor unions
are not permitted under local laws, regulations, and labor customs, and in TDK Group companies where there
are no unions, TDK holds sincere dialogues directly with employees or employee representatives based on the
TDK Code of Conduct. In this manner we work to build sound relationships and resolve issues regardless of thecircumstances. In all cases, we respect our workers’ rights to freely form or join organizations of their choosing,
and we do not discriminate or retaliate against workers who participate or seek to participate in organizations
which bargain collectively or seek to bargain collectively such as labor unions.

Environmental risks that may lead to human rights violations
With regard to environmental risks that may lead to human rights violations, TDK identifies such risks at eachmanufacturing site in accordance with ISO 14001 and implements necessary risk mitigation measures. In
addition, the TDK Supplier Code of Conduct contains an ‘environment’ component that reflects our approachrequiring the proper management of chemical substances and other potentially harmful substances that may
pose a risk to the human body and the environment.
Related links
TDK Code of Conduct

Health and Safety

TDK Supplier Code of Conduct

Responsible Sourcing of Minerals

Sustainable Procurement

Social and Environmental Consideration at
Manufacturing Sites

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Initiatives for Prevention and Reduction of Human Rights Risks
In 2020, TDK joined the Responsible Business Alliance (RBA), an organization which is dedicated to improvingsocial, environmental and ethical conditions in the global supply chains. TDK utilizes the RBA Code of Conduct
as the standard to promote our CSR activities at manufacturing sites. To prioritize the human rights key themes
described above, we conduct activities to prevent and reduce risks in alliance with the RBA’s Code of Conduct,assessment items and audit frameworks.
The details are as follows.
Related link
RBA Code of Conduct (Link to external site)

Responsible Sourcing of Minerals
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TDK started its response to the problem of conflict minerals following the enactment of the US Dodd-Frank Wall Street
Reform and Consumer Protection Act in 2010. The TDK Group Policy on Conflict Minerals was formulated in April
2013, to promote initiatives in full compliance with the Due Diligence Guidance of the Organization for Economic
Cooperation and Development (OECD).
Considering that the scope of discussions on responsible sourcing of minerals has recently expanded to conflictaffected and high-risk areas for serious human rights violations or environmental pollution, to avoid being complicit inthese problematic activities we revised our policy, which is now entitled the “TDK Group Policy on Responsible
Sourcing Minerals” in January 2019. Under this revised policy, TDK continues to promote responsible sourcing ofminerals throughout the supply chain, including minerals such as tantalum, tin, tungsten, gold, cobalt and mica, whichpose an increased risk of being sourced from conflict areas and regions with high risks of misconduct, including
human rights abuses and environmental destruction. In fiscal year 2023, according to the conflict mineral survey
conducted by the TDK, no minerals involved in the funding of armed forces in the DR Congo or adjoining countries
were found. In addition, we conducted surveys to identify (a) cobalt smelters considering child labor risk in cobalt
mines of DR Congo, and (b) mica processors considering child labor risk and unsafe working conditions in mica mines
in India and Madagascar.
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Responsible Sourcing of Minerals

Respecting human rights of employees at our manufacturing sites
TDK implements annual CSR self-checks and risk assessments for labor, human rights and business ethics based on
the RBA code of conduct at all Group manufacturing sites. These are supervised by TDK’s CSR headquarters. In
addition, in fiscal year 2022, we established a plan to conduct an RBA-authorized audit, customer CSR audit, or brief
CSR assessment based on the RBA VAP Operations Manual at each of our manufacturing sites at least once every
three years. In the course of these activities, for any sites where any issues might be identified, we prepare corrective
action plans and implement them.
In fiscal year 2023, 100% of our 80 manufacturing sites conducted CSR self-checks using RBA self-assessment
questionnaire which included risk assessments for labor, human rights and business ethics issues. Our risk
assessments relating to human rights risks included forced labor, harassment, and management of labor agencies andservice providers such as cafeterias, security companies etc. Through the risk assessment for labor, human rights andbusiness ethics, potential risks were identified in 10 manufacturing sites, and corrective actions were completed at all
those sites at the end of fiscal year 2023. We will continue our efforts to reduce the risk of human rights violations
through the above measures. In addition, in fiscal year 2022-2023, 63% of our manufacturing sites implemented an
RBA-authorized audit, customer CSR audit, or brief CSR assessment based on the RBA VAP Operations Manual.

126

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We also promote additional activities by taking into account the types of risks, countries and regions. For example, toprevent child labor, we adhere to strict age check procedures to prevent any use of child labor at our manufacturing
sites in China and implement monitoring by headquarters. In fiscal year 2023, no case of child labor was discovered.
We also began to strengthen the monitoring of working hours by headquarters at manufacturing sites in high-riskcountries in Asia in fiscal year 2018.
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Social and Environmental Consideration at
Manufacturing Sites

Respecting human rights of employees at suppliers (including manufacturing sub-contractors
and labor agencies)
Initiatives for material suppliers
In order to promote sustainable procurement, TDK implements CSR self-checks of its suppliers on the basis of
items required by the RBA in principle once every two years. These self-checks address labor and human rights,
safety and health, and other related issues. Furthermore, TDK has been conducting CSR audits of its suppliers,
selecting targeted suppliers in consideration of their importance in the delivery of products to customers andposition in the value chain.
In fiscal year 2023, CSR self-checks confirmed that 100% of suppliers of our TDK Group companies compliedwith our CSR requirements, a 1.1% improvement over fiscal year 2022.
We will continue to strengthen our efforts regarding Group companies and suppliers.

Initiatives for manufacturing sub-contractors
TDK periodically conducts CSR self-checks of its manufacturing sub-contractors and aims to cover all of themevery two years. In fiscal year 2023, we confirmed that 86% of our manufacturing sub-contractors compliedwith our CSR procedures by CSR self-checks. For manufacturing sub-contractors in China, we conduct childlabor monitoring by headquarters as we do for our manufacturing sites. In fiscal year 2023, no case of childlabor was discovered. Furthermore, we carry out CSR audits of critical manufacturing sub-contractors. In fiscal
year 2023, we implemented CSR audits at five companies in China and Japan, in preparation for future groupwide implementation.

Initiatives for labor agencies
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In some countries in Asia, human rights related recruitment risks are considered to be high and improper
management practices by labor agencies are frequently discovered. Therefore, we conduct annual CSR selfchecks for labor agencies used by manufacturing sites in the high-risk countries of Asia.
In fiscal year 2023, we implemented CSR self-checks on all of our targeted labor agencies.
Related link
Sustainable Procurement
See also information on human rights considerations throughout the supply chain.
Related link
Governance Data

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Training
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TDK raises awareness of human rights issues through e-learning or in person training that is given to all of ouremployees, including those in the UK. In addition, we have also been able to identify issues through training ofinternal auditors based on RBA requirements and by CSR training that takes regional characteristics into
consideration. In the supply chain, TDK provides educational tools as necessary to promote awareness at thetime of implementing CSR self-checks.
In fiscal year 2023, TDK continued to enhance our employees’ understanding of basic human rights issues
through trainings based on the TDK Code of Conduct and the TDK Group Human Rights Policy. In addition, a
total of 41 employees participated in training programs for internal CSR auditors in Japan and Asia region. In
China, 113 employees participated in training on detailed requirements of the RBA Code of Conduct.

Grievance mechanisms and communications on human rights issues
The TDK has established a global whistle-blowing system that allows TDK employees to speak-up or report any
corporate ethics issues, including potential human rights concerns. These may be made directly or throughinternal or external help lines that are independent from employees’ own reporting lines.
For outside stakeholders, we communicate and respond through the inquiry contacts on the website. In
response to inquiries on human rights issues made by some external organizations in fiscal year 2023, we
explained TDK’s policies on human rights and activities taken to ensure that TDK conducts business operationsin accordance with these policies.
In response to all inquiries and reports, relevant departments of TDK Group companies, independently or
together, work to investigate, take necessary remedial actions and prevent recurrence of such issues.

Communication with external parties
Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Dialogue
TDK has engaged in dialogues with several third-party experts in order to better understand human rights issues
that could impact our activities, including the following:2021
Study session on human rights issues in the supply chain
Invited an outside expert on human rights issues in the supply chain and held a study session attended bysenior managers of the global procurement function.

2017
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Targeting Human Rights Responses at the Supply Chain
Invited two outside experts to attend a study session on the role required of TDK in response to human rights inthe supply chain.
Targeting Human Rights Responses at the Supply
Chain

2015
CSR Promotion in the Supply Chain
Invited Mr. Masaki Wada of Energetic Green for an exchange of opinions concerning what is expected of TDK topromote CSR in the supply chain.
CSR Promotion in the Supply Chain

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Identification of Human Rights Issues through Dialogue with Stakeholders
Engaged in a dialogue with experts to identify human rights issues relevant to TDK.
Identification of Human Rights Issues throughDialogue with Stakeholders

2013
Human Rights Due Diligence Workshop (Caux Round Table Japan)
Participated in the Human Rights Due Diligence Workshop, organized by the Caux Round Table Japan. We
contributed to identifying human rights issues related to the manufacturing sector, while sharing expertise withmembers from nine other companies, NGOs, and experts (10 associations).
Human Rights Due Diligence Workshop (Link toexternal site)

Collaborative Initiatives
In February 2020, the TDK joined the RBA and committed to work continuously to improve our activities
throughout our supply chains, including those involving human rights issues, in line with the RBA Code of
Conduct.
For responsible sourcing of minerals throughout the whole supply chain, the TDK has been participating in the
Responsible Minerals Initiative and the Responsible Minerals Sourcing Trade Working Group of JEITA (Japan
Electronics and Information Technology) since 2011.
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Sustainability | Society | Respect for Human Rights
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Environment

TDK Group Policy on Human Rights
The TDK Group aims to “Contribute to culture and industry through creativity” by directly engaging in revitalizing
and protecting the global environment and creating a pleasant and safe society. Based on the values
represented in the TDK Code of Conduct, we respect the human rights of our stakeholders and recognize thepotential impact of our various corporate activities on human rights. We also recognize the need for carrying out
business in such a way as to reduce that impact. Based on this understanding we commit to respect for humanrights through the following efforts.
1.	 We respect international standards of human rights including the International Covenants on Human Rights
and the International Labor Standards and strive to uphold them.
2.	 If domestic laws in the applicable region are incompatible with the International Covenants on Human Rights,
we will do our best to resolve issues so that international principles of human rights are respected.
3.	 We take measures to raise awareness of human rights, provide education and develop competency among
all of our directors and employees.
4.	 We carry out due diligence to address actual or potential impact on human rights due to our corporate
activities.
5.	 If our corporate activities have caused a negative impact on human rights, either directly or indirectly, we will
redress the situation or do our best to cooperate in redressing the situation so that it does not occur again.
6.	 We ask our business partners and other stakeholders involved in the value chain to fulfill their responsibility torespect human rights and ask them through dialogue and discussion to take appropriate measures if thoseefforts are insufficient, based on the TDK Code of Conduct.
This policy was approved by the Board of Directors on July 29, 2016.
Established on August 2, 2016

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Sustainability | Society

Customer Satisfaction

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Environment

Our Approach
TDK supplies electronic components not only to electronic device manufacturers directly linked to end
consumers, but also to electronic assembly manufacturers and component manufacturers. For these diverse
customers, TDK uses the following methods to measure customer satisfaction, and aims to be a company thatis trusted by customers for its overall satisfaction in terms of quality, cost, delivery, technology, and service.
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• Questionnaire: an assessment created by TDK to be completed by customers.
• Supplier evaluation information: information on the evaluation of TDK products that is regularly conducted bycustomers using their own evaluation methods, which is received from customers.
• Product complaints: information on complaints received from customers.
• Customer Satisfaction (CS) evaluation: an evaluation conducted by sales representatives on TDK and its
products from a customer’s point of view.

Questionnaire
TDK has implemented a framework to ask customers to complete questionnaires, collect their requests andopinions, and provide feedback to the relevant internal divisions.

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TDK obtains the results of supplier evaluations conducted by customers. The evaluation ranks the different
levels of customer satisfaction, with an “A” indicating that the customer is fully satisfied. TDK tracks changes in
the A rank percentage and provides this information to the relevant divisions to improve customer satisfaction.

Product complaints
Product complaints received from customers, both in Japan and abroad, are managed in a complaint
information database. The database is used to share information online with relevant divisions to take quick
action to improve customer satisfaction. If a significant complaint arises, the system is designed toautomatically report it to top management.

Customer Satisfaction (CS) evaluation
In order to become the supplier of choice for our customers, our sales representatives strive to understand ourcustomers’ needs from a customer’s perspective. Quickly capturing details of customer dissatisfaction andproviding feedback to relevant divisions helps us improve customer satisfaction.

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Editorial Policy

Products and Solutions
We live in a time when new conveniences and comforts emerge one after another through technologicaladvances.
Please click on the link below to read stories about TDK’s products and solutions that contribute to solving avariety of issues found in cutting-edge fields.
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Sustainability | Society

Human Resources Development

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Our Approach

Roles and Responsibilities

Goals and Achievements

Initiatives

Our Approach
TDK Global HR is continuously developing the Global Management Development Programs which seek todevelop TDK’s future leaders, and to serve the succession plan. Moving forward, our focus remains tocontinuously increase the quality of our training activities, to integrate a blended learning approach as an asset
to provide the best possible learning experience to the participants in all circumstances, and to develop the
potential of our many talented team members. With this people-centric approach, we enable continuous human
growth.
Global Management Development Programs

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Roles and Responsibilities
TDK has established the Global HR Department within the Global Human Resources Division to develop various
policies on a global scale.

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Goals and Achievements
Fiscal 2023 Goals

Achievements

Continuing the Territorial Career Development Program (TCDP)

Successful continuity of the TCDP in all territories by combining on-site and online
facilitation.
In total 103 participants attended TCDP in fiscal 2023 worldwide (at this stage, thenumber of members of one region has not yet been determined. The nomination
process is slightly delayed due to COVID-19 influences).

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After the successful roll-out of the program, the focus is now on the continuationof the Global Management Program (GMP)

Live the strengths of TDK United while getting to know new development tools
and methods such as agile management techniques.
Due to the unique reformation system in GMP of half of the participants each year,
the newly GMP announced participants will join 24 already enrolled former
program participants. In total we welcome 51 participants in the GMP fiscal 2023
cohort.

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Keep on developing the talents and competencies through Global Advanced
Management Program (Global AMP) and creating a valuable program experience

Considering the possibility for the participants to travel safely again and to meet inperson, the program resumed in fiscal 2022. The participants can experience the
TDK United spirit and build a strong bonding and networking throughout thejourney. With the objective of maximizing the impact of the learning, the program
design is evolving with the changing business circumstances of TDK.

All you need toknow about TDK’s
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Launch the second cohort of the Global Executive Management Program (GEMP)

Design the GEMP journey to serve the business circumstances and address the
future challenges of TDK.
Create a valuable program experience for the participants who will build their
Vision and Strategy for the future of TDK.

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Sustainability
Management

Environment

Future Activities
Fiscal 2024 Goals
TCDP: Continue the program by incorporating blended learning into the journey. Due to the high demand, the program is extended in some regions to two cohorts atthe same time (~100 - 125 participants in total worldwide).
GMP: Successful run of the cohort by creating effectful synergies and conveying a deeply understanding of TDK’s structure (~50 participants per year).
Global AMP: Successful run of the fiscal 2024 cohort (~25 participants per year and passing the number of 100 alumni).
GEMP: Further development and integration of the GEMP initiatives into the long-term strategy of TDK.

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TCDP (Territorial Career Development Program)
The Territorial Career Development Program (TCDP) originally started in TDK Electronics Greater China morethan thirteen years ago. Since 2018, Global HR has have deployed TCDP on a territorial scale (Greater China,
Asia, Americas, and Europe).
TCDP provides training around Leadership Essentials, People Management, Driving Change, Inspiring
Communication and Presentation, and Value Creation.
The goal of TCDP is to strengthen performance, motivation and professional maturity of talented employees, todevelop leadership and management competencies as to ensure the continuity of talented management within
the TDK Group. The objective is also to create a strong bond and partnership between TDK members fromdifferent sites, cultures, and experience. Participants work on a “real-life” team project throughout the program.
The projects provide participants the opportunity to apply what they are learning in each face-to-face module. At
the last module of TCDP, they present the culmination of their efforts to a TCDP Committee and get a final
appreciation for their work and overall learning journey. This active learning is a crucial part of the program’sDNA.
The program is designed in five training sessions (four modules in Americas with same training contents) over a
9-month period. If live sessions can take place, the participants meet at different TDK companies and sites intheir respective territory. If travelling is not possible, the sessions are held online, the design and the schedulebeing adapted to this virtual format.
A dedicated TCDP Learning channel is available on the TDK Digital Learning platform Weconnect. This
complements and enriches the learning journey with a blended approach.
TCDP is aimed for talented employees, having managerial or supervisory experience and high potential for
future growth, of any function from any location within the TDK group. Each cohort in each territory is limited to
25 participants. The program is held in English.

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Business benefits :CONTENTS• TCDP develops the next generation leaders.
• TCDP supports global succession planning for key positions and the development of globally capable leaders
who can contribute to diverse fields and cultures.

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and CEO• TCDP enables deepen understanding of management methods and principles, develop leadership skills,
increases employee engagement and self-awareness.
• TCDP participants build stronger bonding and partnership among TDK members towards a TDK United.
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GMP (Global Management Program)
GMP is aimed to be a personal and professional management development program for talented, engaged TDK
employees having several years of management experience, and showing high potential for further growthwithin the TDK Group.
The program widens perspectives beyond own functions, increases leadership skills, creates awareness about
TDK´s organizational structure & the challenges of General Management, and offers the opportunity to createstronger bonding and partnership among different TDK entities, functions, cultures, and experiences.
The program runs over a period of two years with the unique reformation of half of the participants each year.
The overall journey consists of six face-to-face modules of 2.5 days each and taking place at various TDK
locations worldwide if the situation allows. The GMP cohort consists of up to 50 participants, who are
distributed into two groups of up to 25 participants each, to ensure the best possible learning, interactions andgroup dynamics. The allocation to the two groups is based on their main working activity. Within the journey, 2sessions are held with the whole group, the remaining training sessions are held in the two small groups.
Each module is driven by a main content stream such as “Leadership & Intercultural Training”, or “TDK’s DNA”
and “Global Sales”. In addition, a dedicated GMP Learning channel is available in the TDK Digital Learning
platform ‘Weconnect’. It complements and enriches the leaning journey with a blended approach.

Business benefits:
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Search / Index• GMP enhances participants’ network, knowledge, leadership skills and understanding of TDK organizational
structure & challenges.
• GMP supports global succession planning by empowering participants in their career development towards
upper management positions.
• GMP widens the perspectives of the participants beyond their business scope and to learn about thecomplexity of General Management.
• GMP expands partnership among TDK Network members towards a TDK United.

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Global AMP (Global Advanced Management Program)
Global Advanced Management Program (Global AMP) introduced in 2019 is aimed to develop future leaders andto strengthen their competences around strategy, change management & innovation management.
The goal of the program is to support & empower participants in their transition to executive level roles, to learn
and practice the tenets of transformational and inspirational leadership while creating stronger bonding andpartnership among TDK Group companies.
An integral part of the Global AMP journey is the project-based learning approach which is linked to TDK
strategic issues and enables an immediate learning application and knowledge sharing in the TDK context. At
the end of the Global AMP journey, the participants present their project to the TDK Top Management.
Global AMP is offered yearly. The original design of the journey is an 8-month program, encompassing three
face-to-face modules and one online module, in total 14 training days. In addition, short sessions are held online
to enrich and complement the journey. Participants are either General Managers or newly appointed General
Managers and Deputy General Managers (or candidates who are newly promoted to such positions). Eachcohort is limited to 20-25 participants and with this year, we have reached 83 alumni since the program waslaunched. The program is held in English.

Business benefits :Sustainability
Management• Global AMP is build upon and serves the TDK Corporate values, cultures, and mid-term plan.
• Global AMP supports global succession planning by empowering participants in their transition to executive
level roles.
• Global AMP develops ability for strategic vision and thinking, innovation and strategy execution.

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Search / Index• Global AMP participants create stronger bonding and partnership among TDK Group companies towards
TDK United.

GEMP (Global Executive Management Program)
The Global Executive Management Program (GEMP) introduced in 2020 is about leveraging diversity andbecoming a “top manager of change” while detecting and managing innovation that leads to businessdevelopment strategies.
The goal of GEMP is to create stronger bonding and collaboration among TDK Group companies and Corporate
Functions, to embrace TDK United spirit at the highest levels of the hierarchy. This supports TDK in its missionof creating a stronger company resilience through the deployment of inspiring top class leadership crossing
borders and cultures.
GEMP bridges the Eastern and Western leadership philosophy, contributes to the development of the newgeneration of TDK Group Executives and serves the succession plan. Strategic issues are brought into projects
with the objectives of serving the mid-term and building the long-term plan of TDK. These visionary projects arepresented to TDK’s Top Management at the end of the journey. Individual coaching sessions support theparticipants in their development to become inspiring global leaders.
The journey is originally designed in three face-to-face modules of 5/4/4 days, in total about 8 months, but canalso be held partly online if the circumstances require so. The locations can change every cohort to adapt to the
TDK context and to serve the GEMP journey appropriately.
Participants are either potential or newly appointed Corporate Officers. Each cohort is limited to 10–15
participants and we have reached 23 alumni since the program was launched. The program is not held every
year as it is triggered by revision of the mid-term plan. It can also be prolonged beyond one year to support theparticipants in turning their vision into reality, a second and crucial phase of the GEMP. The program is held in
English.

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Sustainability
Management• The GEMP program reinforces TDK’s sustainable strategy, speed and value creation approach among theparticipants, related group companies, and corporate functions.
• GEMP brings the participants to a higher level of awareness regarding the mega trends and majortransformations; as well as creates synergies to increase business/cost efficiency/overall resilience of TDK.
• GEMP puts the participants in the position of envisioning TDK’s sustainable growth and contribution to theworld, while preparing the foundation for the next mid-term plan (and potentially long-term).

World-wide Communication & English Training
The TDK group commenced on the Global Communication & English (GCE) initiative in order to bolster andenhance the communication fluency amongst our team members worldwide in 2018. Over the last 5 years, theGCE team has established an annual schedule of pre-testing, training & post-training tests. GCE training has
also expanded to meet special requirements, such as intensive courses for those who need to improve theirEnglish communication skills in a short period of time, business skills training and also other languages. The
GCE project will now also extend to offering communication training; both live sessions and on TDK Weconnect,
TDK’s digital learning platform. GCE is planning to unveil the 5 years of employees’ English level improvements
via comprehensive graphs very soon.
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Sustainability | Society

Diversity, Equity & Inclusion

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Our Approach

Roles and Responsibilities

Goals and Achievements

Initiatives

Our Approach
The TDK Group comprises numerous Group companies operating globally. We believe that we can continue
generating innovative creativity by establishing an environment in which employees with diverse backgrounds
can display their skills. This is crucial for realizing corporate growth. In April 2020 the TDK Diversity & Inclusion
Policy was established.
TDK – Diversity & Inclusion Policy

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At TDK, we must have a diverse workforce to achieve our mission to contribute to industry and culture through creativity.
Our broad range of products and solutions in electronics, energy, materials, and sensors are complex, pervasive and help
make our daily lives better across the world that we share.
TDK’s people imagine, design, develop, manufacture, and bring these products and solutions to life. We can achieve our
mission because we welcome a global pool of cultures, disciplines, perspectives, languages, ideas, skills, andexperiences.
Target of TDK Diversity & Inclusion Policy is to create as much value as possible for the company and the society out ofsuch a unique global pool of human resources. We foster the talent of the people in the TDK Group by strengthening thelinks between them and by supporting a vivid exchange of thoughts and experiences.
As stated in our TDK Code of Conduct, we are committed to respect each employee’s individuality and shall establish
reasonable and fair systems for human affairs and treatment of employees. The diversity of our employees - their cultures,
nationalities, ages, genders, backgrounds, religions, beliefs, races, sexual orientations, disabilities, and characteristics are a major driving force for our success.
To date:• TDK was founded in Japan and its headquarters are located in Tokyo, Japan, yet a big majority of our employees are
situated outside of Japan.
• TDK unites people from many different cultural origins, located in many countries.

Search / Index• TDK has employees in all age groups.
• Woman represent a very important part of our workforce.
• Continually support programs to improve our ability to communicate and collaborate.
Diverse teams help embrace different ideas and opinions, listen to each other, encourage development and lead to quality
products and solutions that we all enjoy. We are strongly committed to building diverse teams that include all people.
As of April 2020138

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Roles and Responsibilities
TDK is promoting activities according to the situation of each site or legal entity under the support of the Human
Resources Function.
Since October 2020, the Diversity Promotion Department has been the department in charge of diversity-related
issues and actions within the Japan Human Resources Division of the Human Resources HQ. Aiming for TDK to
be a company that society needs and continues to have high hopes for, we strive to foster a culture in which
employees worldwide respect one another and feel free to exchange opinions, regardless of gender, age,nationality, or ethnicity. Our first step in embracing diversity will be a renewed and serious effort to empower the
women of Japan. To date, we have put in place a number of programs designed to make it easier for women towork. The remaining issue is to shift from merely facilitating work to offering women an active role. As acompany, we will draw out the capabilities, values, and potential of our female employees, incorporate thoseassets in our business, and tie them to the growth of TDK.

Goal by 2035
As a milestone, we have decided to carry out activities by setting the percentage of female in managerial roles
by 2035, which is the 100th anniversary of our founding.

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Trends in ratio of female in managerial roles

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Goals and Achievements
Fiscal 2023 Goals

Achievements

Conduct educational activities for managers in Japan to boost awareness of thesignificance of promoting diversity

In fiscal 2023, the workshop was offered to new and experienced managerial hires
who had not yet participated in the workshop. 97% of those eligible participated.

Continue conducting measures from fiscal 2022 to prevent harassment

Held communication seminars on the prevention of harassment at all businesssites in Japan. The seminars were for managers and some section chiefs withsubordinates in fiscal 2023, and 95% of those eligible attended.

Conduct career development education for female employees

Held career development education for female section chiefs; dispatch to outside
NPOs, conducting of a mentoring program and career development seminars forfemale employees.

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Future Activities
In fiscal 2023, TDK took many steps to promote widespread awareness of the significance of promoting
diversity, equity and inclusion, engaging in many efforts to change the mindset of managers and help prevent
harassment with a focus on activities to promote women’s advancement.
Going forward, TDK will keep promoting women’s advancement and also carry out efforts to promote the active
participation of minority personnel, such as people with disabilities and LGBTQ+ people. In April 2023 TDK
formally expanded its Diversity, Equity, and Inclusion efforts beyond Japan and established a global Diversity,
Equity, & Inclusion Department consisting of members from China, Germany, the United States, and Japan. The
newly established team will develop and implement a global DE&I strategy, while continuing the progress of theactivities that preceded it in Japan.
Fiscal 2024 Goals
Continue holding workshops for managers hired new or mid-career to boost awarenessAll you need toknow about TDK’s
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Dispatch female section chiefs to external training organizations, conduct mentoring program, and hold career development seminars; also hold career development
seminars for female employees
Deployment of vocational life consultants for persons with disabilities at our business sites throughout Japan for the retention of employees with disabilities

Initiatives
The Active Participation of Employees with Disabilities
TDK has been actively employing people with disabilities for many years. However, due to Japan’s falling birthrate,
aging population, and population outflow from rural to urban areas, there has been a decline in the labor force inrural areas. A problem we are currently facing is a decline in job applicants in the Akita area, our major businesslocation, and other business sites outside the Kanto area. To address this issue, in the fall of 2021 TDK introduced
a work-at-home hiring program that utilizes the company’s experience with its own telecommuting system.
The work-at-home hiring program enables employees with disabilities in the Kanto area to receive instructions fromsupervisors and divisions located at a distance.
Our employees with disabilities work primarily in the main Electronic Components Business Company, but thanks
to the work-at-home hiring program, their range has steadily been expanding to include accounting, product ordermanagement, product analysis assistance, marketing assistance, IT-related work, and many other areas.
Recently, we have been putting effort into hiring more people with mental disabilities. With an understanding ofeach individual’s disabilities and skills, we are able to provide an appropriate working environment, resulting in
greater opportunities for an active work life.
We also focus on the retention of employees with disabilities. One initiative in this area, which we have begun toutilize at TDK’s headquarters, is the governmental work passport system for employees with disabilities. The
work passport lists information on the nature of a person’s disabilities, skills, and other matters to consider, andis used to reliably pass on that information even if the supervisor changes, thereby contributing to employee
retention.
We are also deploying vocational life consultants for persons with disabilities at all of our business sites in Japan
who can provide consultation to employees with disabilities and others who work with them.

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Efforts to Respect Human Rights and Equal Opportunity―Diversity Promotion Action Plan
TDK includes provisions regarding respect for human rights and prohibiting discrimination into the TDK Code of
Conduct.
We implement specific initiatives on respecting human rights, equal opportunity, etc., including awarenessraising education for employees, and special counseling services including a telephone “help line.” We have alsoestablished an array of systems designed to facilitate childcare and nursing care (childcare leave system,
nursing care leave system, short-time work system, etc.).
As a result of creating environments that facilitate work and promote workstyles that maintain a good work-lifebalance, TDK was certified by the director of the Tokyo Labor Bureau as a Compliance General Business
Operator pursuant to the Act on Advancement of Measures to Support Raising Next-Generation Children andacquired the next-generation certification mark (commonly known as the Kurumin mark) in fiscal 2015.
Our plan is to continue to develop systems that are useful to our employees in their course of growth, and to
implement new systems that are tailored to developing social trends as well as to the needs of our employees.

Diverse Work Styles and Work-Life Balance
The details are as follows.

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Talent Attraction & Retention

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Talent Attraction & Retention

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Our Approach

Roles and Responsibilities

Initiatives

Diverse Work Styles and Work-Life Balance

Personnel Evaluation System (TDK Corporation)

Frameworks and Human Resource Systems to Maximize
the Potential of Each Employee (TDK Corporation)

Our Approach
TDK aims to transform into a more innovative and resilient company through the securing of highly engaged
employees, by rolling out Employee engagement surveys globally, implementing feedback and appropriate
improvement measures based on analyzed outcome, and establishing social media channels to support andenhance employer branding (increasing the company’s reputation among job seekers) and recruitment.
We strive to improve employee engagement and employee satisfaction to attract and retain talent by diverse
efforts, including preparing and deploying TDK Global Engagement Survey, providing feedback and creating
improvement action plans based on the survey results, and utilizing social media channels.

Roles and Responsibilities
TDK is promoting activities according to the situation of each site or legal entity under the support of the Human
Resources Function.

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Visualization of the HR skills of Group employees
We are pressing ahead with the introduction of a system to unify and visualize HR management and training,
centering on managers in the TDK head office and Group companies. In this system, which is called the TalentManagement System (TMS), we have prepared such modules as “Performance evaluation,” “Competency
assessment,” “Succession planning,” and “HR training plan” so that we can comprehend the abilities of eachindividual. This system is an important initiative to fully display the individual qualities of our human resources on
a global scale. Going forward, our aim is to introduce it for all sites and Group employees.
Conceptual chart of TMS

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Diverse Work Styles and Work-Life Balance
We believe that establishing an environment in which employees with diverse backgrounds can display theirskills is crucial to continue generating innovative creativity and realizing corporate growth. One such effort is tosupport employees’ work-life balance by creating an environment and systems that enable them to choose
diverse and flexible work styles.
At present major changes are taking place in workstyles at TDK sites, including the introduction of
telecommuting and super-flextime systems. TDK is promoting these activities further and has introduced the
TDK Smart Work system, which will enable autonomous workstyles unbound by working hours and workplace,at some locations such as the headquarters and Technical Center. Our aim through these initiatives is toenhance employee engagement and maximize both individual and company performance.

Examples of programs supporting diverse work styles and work-life balance(TDK Corporation)
Working-from-home system and super-flex time system

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Systems that enable employees to have flexibility in where and when they work and to achieve diverseand flexible work styles. Super-flex is a system that allows employees to freely decide their working
hours according to their individual needs without core hours.

Maternity and childcare support programs
We have systems to support balancing work with housework and childcare, such as “Maternity Leave,”“Childcare Leave,” and “Part-time Working Options.” In principle, childcare leave is available until the
day before the child’s first birthday, but if both parents take childcare leave, the leave may be taken until
the child reaches the age of one year and two months. (The maximum period of leave for each parent is
one year.) “Part-time Working Options” are available in principle until the child reaches the end of thethird grade of elementary school, and multiple working hour options are available. In addition, financial
supports for childcare and nursing care related services are available.

Nursing care leave
This system is for employees who have been with the company for at least one year and are willing tocontinue working are eligible to take three leave periods (up to one year in total) for each family member
who is in need of constant nursing care for a spouse, child, parent, grandparent, sibling, grandchild, or
spouse’s parent.

Rehiring system
The existing TDK Rehiring System, which rehires retirees, was revised and began operating as a new
second career system in April 2017. The purpose of this system is to make more effective use of theknowledge and experience possessed by retirees and to fulfill our social responsibility as a company tocomply with the revision of the Law Concerning Stabilization of Employment of Older Persons. Similarsystems have also been introduced at subsidiaries in Japan. Furthermore, in October 2017, weintroduced the “Welcome Back System” to rehire employees who left the company due to unavoidable
circumstances such as childbirth, childcare, or nursing care.

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Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Workstyle Options to Accommodate Spousal Relocation
In October 2017, we introduced two new systems: a relocation system for employees whose spouses
have been relocated in Japan and a leave system for employees whose spouses have been relocatedoverseas. With these systems in place, even if it becomes difficult to continue working in one’s current
workplace due to the relocation of one’s spouse, employees can now choose to relocate or take a leave
to be with their spouse. The workstyle options provided by TDK are designed to allow employees tobalance work with various events in their lives, a policy that aims to make TDK a company where people
feel safe working at for a long time.

Personnel Evaluation System (TDK Corporation)
Personnel evaluations at TDK Corporation are conducted from two perspectives: “performance” and “behavior.”
Performance evaluations are based on the achievement of the goals set at the beginning of the evaluation term.
The evaluation outcome is reflected in bonus to compensate and further motivate the employees, and lead tothe achievement of business goals. Behavior evaluation is based on the evaluation components set for eachrole, which include elements such as expertise, TDK Value, and compliance/risk management. By evaluating
and providing feedback on the daily behavior to achieve goals, it encourages the understanding of the expectedroles and behavior. In this evaluation process, employees have interviews with their superior at the timing of goal
setting and evaluation feedback at the end of the fiscal year, providing regular opportunities for employees toconfirm the expected roles in addition to daily work communication.

Frameworks and Human Resource Systems to Maximize the Potential of Each
Employee (TDK Corporation)
TDK has a number of systems in place which are geared to helping each and every employee member discoverand develop their true potential.

In-house Recruiting System
In 2000, we introduced an active in-house hiring system under which employees can apply for new positions
posted on the internal recruitment board directly with the Human Resources Department, without going throughtheir superiors. This system aims at promoting the principle of “the right person for the right job” throughout the
TDK Group, to respond in a timely manner to changes in the organizational makeup and staffing requirements of
the organization. The system provides opportunities for career development to employees who have the desire
and ability to try and shape their careers on their own initiative. As of March 2022, 249 applicants had fulfilled therelevant requirements and taken on new positions.

Career Option System
In addition to the in-house hiring system, TDK introduced the career option system in January 2006, giving
employees the opportunity to apply for transfer to a desired department or position. This system is designed toprovide incentives for further self-growth and for making a positive contribution to the development of TDK. It
also aims at stimulating employees to reassess their career plans from various perspectives.

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CONTENTS

Editorial Policy

Message fromthe President
and CEO

Self-Determined Reporting System
A self-determined reporting system has been introduced for the purpose of supporting efforts by individual
employees to develop their own careers and abilities, as well as to help ensure the best possible match between
each job and the person performing it. Once a year, employees can report directly to the Human Resources
Department, indicating which positions they want and which business sites they would like to work at, as well as
the extent to which they are satisfied with their current positions. Employees desiring an interview have theopportunity to directly explain their choices during a session at the Human Resources Department.
The opportunity to have a dialog with the Human Resources Department on a regular basis encourages
employees to think seriously about their own careers, and also supports efforts such as transfer andparticipation in education and training for new positions. In this way, it helps employees shape their own career.

CPSO
Message

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sustainability!

Sustainability
Management

Environment

Society

Governance

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Sustainability Report 2023

Sustainability | Society

Health and Safety

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Our Approach

Roles and Responsibilities

Goals and Achievements

Initiatives

Our Approach
The TDK Group Occupational Health / Safety and Environmental CharterTo unify policies relating to health / safety and the environment throughout the entire TDK Group, TDK
formulated the TDK Group Occupational Health / Safety and Environmental Charter consisting of two aspects—
basic principles and basic policies on health/safety and the environment.

Sustainability
Management

Environment

Society

Governance

Roles and Responsibilities
TDK has set up a promotional structure based on the Occupational Health and Safety Management System
headed by the president. In addition, important matters related to health and safety are reported to the Board of
Directors, and are deliberated when necessary.

External Evaluation/ Status of inclusionin the ESG Index

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146

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CONTENTS

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and CEO

CPSO
Message

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sustainability!

Promotion of Occupational Health and Safety Management System
At the TDK Group, we have built and deployed an occupational health and safety management system (TDKOHSMS) that complies with the requirements of ISO 45001:2018, the international standard for occupational
health and safety. Among the operations of the TDK OHSMS, we conduct risk assessments, and carry out
activities to eliminate or mitigate risks such as “exposure to chemical, biological, and physical agents,” “tasks
that are physically demanding for workers,” and “confirming and assessing the safety of production machinery.”
Furthermore, we are working hard to manage public health, and also making efforts to provide all of ouremployees with a safe, healthy, and fair working environment by supplying clean water and sanitation facilities
among other initiatives.
Locally, we are developing activities that comply with the RBA, which is also an international standard for CSR.
In each country or region, at our facilities we clearly post health and safety information in the native language ofthe employees or a language they can easily understand, and provide education and training. Initiatives thatprovide for emergency preparedness are another set of our activities. We have established procedures forresponding to any emergency that may occur, and conduct evacuation drills that presume such an emergency
situation has occurred.
Related Link

Sustainability
Management

Environment

Facilities with ISO45001 Certification

Goals and Achievements
Fiscal 2023 Goal

Achievement

Achieve zero significant labor accidents

Achieved zero significant labor accidents

Society
Trends in Labor Accidents (in Japan)

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Related Links
Social Data
Fiscal 2024 Goal
Achieve zero significant labor accidents

147

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CONTENTS

Editorial Policy

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and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Evaluations and Future Activities
Although there were no significant labor accidents in fiscal 2023, many labor accidents occurred that could have
had serious consequences. TDK is striving to prevent the recurrence of significant labor accidents by sharing
information on essential investigations of the causes of accidents and fundamental countermeasures.
Furthermore, to enable health/safety activities suited to the situation in each region, we have appointed regional
EHS coordinators to promote health/safety and environmental activities in Japan, China, ASEAN, Europe, and
the Americas. By implementing factory safety diagnosis, sharing best practices in safety and environment
meetings, and so on, we are endeavoring to upgrade the level of health/safety activities.

Initiatives
Technical Training Center Established to Improve Skills in Entire Factory (Nashik Factory, TDK
India Private Limited)
The Nashik Factory in India has established the Technical Training Center to provide all employees with
opportunities to improve their knowledge and skills. At this center, efforts are made to deepen new employees’
understanding of emergency health/safety response, such as fire prevention and use of automated external
defibrillators (AEDs), as well as their knowledge of actual products.
The center is also used for skill improvement by all employees. For example, it is used in multifunctional training
for established employees, providing displays of actual manufacturing equipment and maintenance tools thatcan be touched.
Furthermore, the center is resourceful in its educational programs, adopting recreational elements so thattrainees do not become bored.

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Global Deployment of Experience-Type Safety Education
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TDK has begun the global deployment of the experience-type safety education based on the concept of “look,
listen, and feel” implemented by the TDK Safety Training Center set up at the Nikaho Factory South Site in the
Akita region of Japan in 2017.
We have been undertaking initiatives to raise the safety awareness of our employees. These include having
established in 2020 an EHS Training Center at TDK (Zhuhai FTZ) Co., Ltd., one of our manufacturing sites in
China, and having established in April 2022 the Safety Training Center at our Mikumagawa Factory.
In addition, in response to cases of factory fires recently both in Japan and overseas, the TDK Group carries out
fire-prevention inspections globally and is taking steps to reduce the risk of fire.
The total number of employees in Japan who have trained at the Safety Training Center now stands at 12,555(2,117 in fiscal 2023).

148

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CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

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sustainability!

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index149

Sustainability Report 2023

Sustainability | Society | Safety and HealthFacilities with ISO45001 Certification

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index(As of May 1st 2023)

Country

Certificate Number

Certification
Body

Japan

JP21/071692

SGS

TDK China Co., Ltd.
TDK (Suzhou) Co., Ltd.
TDK Dalian Corporation
Qingdao TDK Electronics Co., Ltd.
TDK Xiamen Co., Ltd.
Guangdong TDK Rising Rare Earth High Technology Material Co., Ltd.

P.R. China

CNBJ314200-U

BV

SAE Magnetics (Dongguan) Limited

P.R. China

02120S11006R4L

CCCI

SAE Components (Chang An) Limited

P.R. China

02122S10007R0L

CCCI

AFI Technologies (Chang An) Ltd.

P.R. China

02122S10014R5L

CCCI

Ningde Amperex Technology Ltd.

P.R. China

CN19/31372.00

SGS

Dongguan Poweramp Technology Limited

P.R. China

CN19/31973

SGS

TDK Dongguan Technology Co., Ltd.

P.R. China

CNBJ314200-U-006

BV

Guangdong Real Faith Pingzhou Electronic Co., Ltd.
Guangxi Real Faith Pingzhou Electronics Co., Ltd.

P.R. China

00221S23233R3L
00221S23233R3L-1

IQNet

TDK Taiwan Corporation

Taiwan20003153 OHS18

DQS

InvenSense Taiwan Ltd.

TaiwanTW17/00862

SGS

TDK Korea Co., Ltd.

Korea

KR002765

BV

TDK Philippines Corporation

Philippine

50500402 OHS18DQSTDK (Thailand) Co., Ltd.

Thailand

488005 OHS18

DQS

Magnecomp Precision Technology Public Co., Ltd.
Rojana Plant
Wangnoi Plant

Thailand25884/E/0002/UK/En
25884/K/0001/UK/En

URS

Hutchinson Technology Operations (Thailand) Co., LTD.

Thailand81791/E/0001/UK/EnURS

TDK (Malaysia) Sdn. Bhd.

Malaysia

01 213 117285

TUV

TDK-Lambda UK Ltd.

UK

OHS 609627

BSI

TDK-Lambda Ltd.

Israel106055IQNet

TDK Electronics AG

Germany

10000458801-MSC-RvA-DEU

DNV

Facility
TDK Corporation
Safety & Environment Group of Sustainability Promotion HQ
Mikumagawa Factory
Kofu Factory
Narita Factory
Shizuoka Factory
Inakura Factory (East site)
Nikaho Factory (North site)
Nikaho Factory (South site)
Honjo Factory (West site)
Honjo Factory (East site)
Ouchi Factory
TDK Electronics Factories Corporation
Kofu Factory
Inakura Factory (East site)
Nikaho Factory (North site)
Nikaho Factory (South site)
Honjo Factory (West site)
Honjo Factory (East site)
Kitakami Factory
Ouchi Factory
Iwaki Factory
Tsuruokanishi Factory*
Sakata Factory
Iida Factory
Tsuruokahigashi Factory*Tsuruoka Factory of TDK Electronics Factories Corporation has changed its name to Tsuruokanishi Factory of TDK Electronics Factories Corporation from April 1, 2023.

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Sustainability Report 2023

Sustainability | Society

Social Contribution Activities

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Our Approach

Roles and Responsibilities

Academic, Research and Education Activities

Sports, Art and Culture Activities

Environmental Conservation Activities

Social Welfare and Local Community Service Activities

Disaster Area AssistanceOur Approach
As a corporate citizen, TDK recognizes the importance of coexisting with the community and, thinking about
what we can do for society as a company, promotes various original social contribution activities.

Sustainability
Management

Environment

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

PolicySociety

Governance

External Evaluation/ Status of inclusionin the ESG Index

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 contribute to 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.

Roles and Responsibilities
Search / Index

In accordance with the above policy, TDK creates and implements plans for social contribution activities invarious regions.

Academic, Research and Education Activities
TDK is willing to return the profits of its activities to local communities by utilizing our accumulated producttechnologies and human resources. Specifically, TDK wishes to offer opportunities for young people who willlead the next generation to acquire a wide range of knowledge, experiences, and skills.
One specific example is the TDK Museum, which reopened in October 2016. The museum introduces the historyof TDK’s products utilizing magnetic technology and its technologies and also, as a new aspect, its efforts
toward the future, the aim being to support the science and technology studies of the young people who will be
the leaders of society in the next generation. The museum also continuously conducts electronics workshops.
TDK Museum

151Sustainability Report 2023

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Editorial Policy

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and CEO

CPSO
Message

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sustainability!

Sustainability
Management

Sports, Art and Culture Activities
TDK strives to be a company capable of bringing delight and excitement to stakeholders. TDK provides support
for inspirational sports and art activities that uplift people’s hearts.
Some specific examples are sponsorship since 2001 of the TDK Orchestra Concerts-performances in Japan ofworld-renowned orchestras from around the world-as well as Outreach Mini-Concerts and Open Rehearsals forthe musical education and development of elementary and junior high school students and students of music
under the heading of the “TDK Rising Stars.”
In fiscal 2023, the principal players and other musicians of the London Symphony Orchestra (LSO) visited Ginza
Junior High School in Chuo-ku, Tokyo, as part of an event which was being held for the first time in three years
due to the impact of COVID-19. This event allowed all the students at the school to experience the world-classsound of the LSO as well as facilitating deepened exchanges with the orchestra members.
In addition, 230 students studying music were invited to an open rehearsal at Suntory Hall during the LSO’s
performances in Japan. At the open rehearsal, the students intently observed the scene as the LSO’s conductor
and music director Sir Simon Rattle communicated with the orchestra members to complete a piece of music.
Furthermore, the expressions on the faces of the invited students as they listened to the performances during
the actual performance were extremely memorable.
TDK will continue to support young people in their efforts to break new ground and usher in a new future bycreating opportunities for them to expand their horizons through dialogues with world-class musicians.

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

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Environmental Conservation Activities
TDK is engaged in R&D activities to provide products that make people’s lives more convenient. But we also
work earnestly on various environmental conservation activities to contribute to a symbiosis with the global
environment.
One example is the TDK Beech Forest tree-planting event, as well as fertilization and cleanup activities, thathave been held every year since 2004 at factories in Akita Prefecture. To date, we have planted 9,600 trees.
In fiscal 2023, as in the previous year, to prevent the spread of Covid-19, only staff members carried out tree
fertilizing, and limits were placed on the number of people who could participate in tree planting.

Social Welfare and Local Community Service Activities
TDK conducts its business activities on a global basis. We endeavor to apply our resources in beneficial ways
and provide help to local communities to solve issues and bring about a better society.
Going forward, we will conduct activities according to the needs of people in individual locales.

Disaster Area Assistance
Employees from Kitakami Factory of TDK Electronics Factories Corporation have participated in volunteer
programs to support recovery operations in Iwate Prefecture each year since the 2011 Great East Japan
Earthquake. While these efforts were suspended from fiscal 2021 to fiscal 2023 to prevent COVID-19 infections,
it is planned to restart the programs from fiscal 2024.

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Sustainability | Society

Social Data

CONTENTS

Editorial Policy

Category

Item

Unit

Consolidated number of
employees
Japan

Message fromthe President
and CEO

Americas

CPSO
Message

FY2020

FY2021

FY2022

FY2023

104,781

107,138

129,284

116,808

102,908

9,777

10,08010,381

10,751

11,379

4,738

4,465

4,092

4,184

4,164

Europe

8,205

7,969

7,962

8,222

8,218

Asia except Japan

82,061

84,624

106,849

93,651

79,147

53.8

55.2

58.2

57.2

56.9

46.2

44.8

41.8

42.8

43.1

Male ratio
Female ratio

All you need toknow about TDK’s
sustainability!

Persons

FY2019%Consolidated number of
emplovees (non-regular)*1

Persons

28,70525,173

21,57723,152

19,620% of non-regular employees

%

27.4

23.5

16.7

19.8

19.1

Ratio of Employees by Nationality

Sustainability
Management

G.China

59.9

Japan

12.0

Thailand

5.3

Indonesia

3.8

Philippines

Environment

Malaysia

Society

Governance

Employment

2.3

India

2.1

Germany

1.9

Brazil

1.6

Number of employees (TDKCorporation)
Persons

FemaleFemale ratio%

Average age (TDK Corporation)
Male

Search / Index

2.6

Hungary

Male

External Evaluation/ Status of inclusionin the ESG Index

3.7

%

Years

Female

5,330

5,523

5,689

5,719

5,901

4,497

4,628

4,747

4,737

4,851

833

895

942

982

1,050

15.6

16.2

16.6

17.2

17.8

43.7

43.6

43.5

43.4

43.0

44.4

44.3

44.3

44.2

43.8

39.8

39.5

39.2

39.2

38.9

19

18.3

18.3

18.3

17.9

19.5

18.7

18.8

18.9

18.5

17

16.2

16

15.5

14.8

225

202

196

262

280

184

145

155

198

214

41

57

41

64

66

18.2

28.2

20.9

24.4

23.6

130

126

110

169

242

102

100

93

129

189

28

26

17

40

53

Continuous service (TDKCorporation)
Male

Years

FemaleRecruitment of new graduates(TDK Corporation)*2
Male

Persons

FemaleFemale ratio%

Mid-career recruitment (TDKCorporation)
Male

Persons

Female
%

21.5

20.6

15.5

23.7

21.9

Total employee turnover rate (TDKCorporation)*3

Female ratio

%

1.4

1.6

1.6

1.8

2.3

Voluntary employee turnover rate
(TDK Corporation)*3

%

1.3

1.4

1.4

1.6

2.1

153

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Employees taking child care leave(TDK Corporation)

CONTENTS

Male

Persons

FemaleEditorial Policy

Work-life balance

Message fromthe President
and CEO

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Staff training

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Staff training(TDK
Corporation)

Freedom of
Association

30

41

62

4

17

12

22

33

19

24

18

19

29

%

100

100

100

100

100

Paid leave acquisition rate (TDKCorporation)

%

60.7

62.5

53.6

58.6

66.2

Number of employees taking
nursing care leave (TDKCorporation)

Persons

3

2

1

2

2

1.4

1.8

2.3

3.2

3.8

0.7

0.7

1.5

1.7

1.7

1.6

2.2

2.5

3.7

4.6

Ratio of female assistantmanagers (TDK Corporation)

5.8

6.4

6.7

7.3

8.3

Ratio of employees withdisabilities (TDK Corporation)*

2.18

2.15

2.03

1.95

2.45

17.4

49

37.1

19.6

23.4

6,095

10,077

11,796

101

0

89

98

17

24

0

19

Ratio of female senior
managers (TDK Corporation)
Diversity

41

Ratio of employees returning towork

Ratio of female in managerial
roles (TDK Corporation)

CPSO
Message

23

Ratio of female managers(TDK Corporation)%

Annual training hours per
employee*4

Hours

Average amount spent per
employee on training anddevelopment

Yen

Number of employees whocompleted Territorial Career
Development Program (TCDP)

Persons

Number of GAMP, global
management program graduates*5

Persons

Number of participants in the
global English training program

Persons

2,442

3,613

3,614

3,389

2,759

Education and training expenses

million
yen

239

285

342

316

291

Cumulative total of participants inoverseas trainee program

Persons

35

40

40

40

40

Cumulative total of engineers sent
to overseas universities

Persons

49

49

49

50

50

Ratio of employees represented
by a union or covered bycollective bargaining agreements*6

%

75.1

72.3

83

61.4

62.9

96

Response Rate

Search / Index

Engagement*7

Ratio of employees with top levelof engagement

80
%

66

Comment Rate

43

Engagement Index
Job Satisfaction(TDK
Corporation)

Health andsafety72

Response Rate

92.7

91.7

93.1

86.6

87.8

93.4

93.6

93.1

93.4

92.8

Number of work-related accidents

351

237

286

338

227

Number of accidents resulting in
no lost work time

129

72

79

110

84

Number of accidents resulting inlost work time*9

222

165

207

228

143

21

20

12

17

28

China

91

60

89

119

48

Other Asia (excluding Japanand China)

58

20

35

32

29

Americas

50

40

58

48

30

Europe

131

97

92

122

92

Ratio of employees with job
satisfaction*8

Japan

%

Cases

154

Sustainability Report 2023

Number of significant labor
accidents*10

CONTENTS
Health andsafetyEditorial Policy

Cases

Ratio of accidents per 1,000
employees*11*12

Accident Severity Rate (Japan)

CPSO
Message

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sustainability!

0

0

1

0

3.11

2.01

2.45

2.66

2.24

0.004

0.017

0.001

0.005

0.002

0.73

0.58

0.25

0.43

Lost Time Injury Frequency Rate
Lost Time Injury Frequency Rate
(Japan)Message fromthe President
and CEO

0

0.17

0.40

* Data has corrected.
*1 Coverage is part time workers, temporary workers and manufacturing staff who work for subcontractors.
*2 Employees who joined the company in April of the following year.
*3 Regular employees only (excluding retirees).
*4 Covers programs run by the Global Human Resources Division.
*5 The program was started from FY2020.
*6 Some countries and regions where it is difficult to know whether employees are represented by a union are not included.
*7 Details are shown in Integrated Report 2023.
*8 Percentage of employees who chose the top two grades (2-3) on a three-point scale based on the job satisfaction survey.
*9 One day or more off from work required.
*10 Significant labor accident: an accident with remaining disability, required long-term nursing, or fatality.
*11 Covers employees including dispatch workers.
*12 Number of days lost per 1,000 hours worked.

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

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155

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Sustainability Report 2023

Investor Relations

Corporate Governance

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

TDK Basic Policy on Corporate GovernanceManagement and Execution Structure

Audit System

Remuneration for Directors and Audit & Supervisory
Board Members

Leadership

Basic Policy for Internal Control

Corporate Governance Report (PDF: 337KB)

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Sustainability
Management

Environment

Society

Governance

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Sustainability | GovernanceRisk Management

CONTENTS

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and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Roles and Responsibilities

Business Continuity

Risk Management Education

Roles and Responsibilities
In aiming for sustainable growth, TDK promotes company-wide measures against factors (risks) that hinder theachievement of organizational goals and has established an Enterprise Risk Management (ERM) Committee,
chaired by a corporate officer appointed by the president, to implement company-wide ERM activities toappropriately manage them. Similarly, the Compliance Committee, the Crisis Management Committee, theInformation Security Committee, and the Disclosure Committee that report directly to the Executive Committee
have been established to respond to and take measures against each issue. The Corporate Officers serve as thechairpersons for each committee.
Regarding the activity status of each committee, TDK has ensured that a structure for receiving advice inrelation to enhancing the risk management system and increasing its effectiveness (including, but not limited to,
identifying, evaluating and reviewing material management risks at TDK and establishing effective
countermeasures) is in place through regular confirmation and audit by the Audit & Supervisory Board Members
and the internal audit department of the management operations described above. In addition, we will seek
advice from specialists, including outside legal counsel and other experts, as needed regarding risks
surrounding TDK.

Society

Enterprise Risk Management (ERM) Committee
Governance

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In ERM Committee, we promote company-wide risk management in a way we analyze and evaluate companywide risk, identify risks which require countermeasures and decide a responsible function to be in charge of risks.
As for each risk, the responsible function takes the lead in countermeasures and the progress is monitored in
ERM Committee. We discuss the risk analysis evaluations and countermeasure situations at the Executive
Committee and report them to the Board of Directors. Risks concerning sustainability, such as risks concerning
corporate social responsibility, climate change, securing personnel and training personnel are also allocated torisk owner departments and director is assigned for it.
For more information on our risk management activities and major risks, please see the link below.
Business Risks

Compliance Committee
Through the Compliance Committee, which aims to supervise compliance-related risk management andadvance initiatives, TDK promotes the prevention of violations of laws and regulations, etc. and strengthening
prevention of recurrence. The Compliance Committee approves company-wide compliance activity policies andplans, select risks that we will focus on with respect to compliance, assign individual risks to risk ownerdivisions, and provide instructions to and monitor risk owner divisions.

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Editorial Policy

Message fromthe President
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CPSO
Message

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Sustainability
Management

Environment

Society

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Crisis Management Committee
The Crisis Management Committee has been established and operates with the aim of advance measures forserious disasters, accidents and incidents (natural disasters, accidents such as fire, infectious diseases, etc.)that may impede the survival or development of TDK as well as reducing subsequent damage and preventing
the expansion of damage. In the event of an emergency, it will quickly set up a company-wide Crisis
Management Headquarters and, while giving first priority to ensuring the safety of its employees, it will resume
business as soon as possible and fulfill its responsibility to supply its customers in accordance with theBusiness Continuity Plan (BCP).

Information Security Committee
The Information Security Committee properly manages important information such as information provided bycustomers and personal information in compliance with laws and regulations, implements measures against
cyber-attacks and internal information leakage, and monitors the security status of TDK to prevent cyberattacks. In addition, in the event of an attack, the said Committee will promptly assess the situation, recover,and take measures.

Disclosure Committee
The Disclosure Committee deliberates on and examines important corporate information and disclosurematerials of TDK that are required for investment decisions by shareholders and investors, to ensure that it
discloses appropriate information in a comprehensive, accurate, timely and impartial manner, in accordance withvarious laws and regulations regarding securities transactions and the rules and regulations of the stock
exchange on which its shares are listed.

Business Continuity
TDK has established a crisis management system to prevent secondary disasters and to ensure the safety of
employees in the event of a crisis, and to ensure business continuity in order to fulfill its responsibility tocontinue supplying products to customers.
We have established a business continuity plan (BCP) that does not depend on the type of disaster or the cause
event. We will conduct repeated exercises and drills so that prioritized works are not interrupted in an
emergency, or if they are, they can be restarted as quickly as possible. In addition, we will promote activities thatwill increase effectiveness in case of emergency.

Risk Management Education
We have implemented individualized education on topics, such as corporate ethics, information security, importand export control, and compliance, to improve an understanding of risk management.

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Sustainability | GovernanceCorporate Ethics and Compliance

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Our Approach

ComplianceHelp Lines

Spreading Awareness of Corporate Ethics

Preventing Discrimination & Harassment

Our Approach
The TDK Group’s top management takes the lead to ensure that all TDK Group directors, officers andemployees are familiar with the Group’s Corporate Philosophy, the TDK Code of Conduct, and the TDK Charterof Corporate Behavior and that they are thoroughly aware of and committed to corporate ethics andcompliance.
In addition, the TDK Group regularly monitors compliance with the TDK Code of Conduct and provides global
annual training to employees, including e-learning and other educational activities relating to corporate ethics.
Furthermore, the TDK Group has built a global corporate ethics management structure centering on theBusiness Ethics Supervisory Committee, which regularly receives reports on TDK Group employees’ compliancewith corporate ethics. In addition, the Business Ethics Supervisory Committee regularly reports on TDK Group
compliance to the Board of Directors.

TDK Code of Conduct
The TDK Code of Conduct stipulates specific behavior guidelines for the TDK Group, and constituent officers
and employees, to observe laws, regulations, social norms. Among them, items that should be shared andpracticed by the TDK Group have been formulated as the TDK Charter of Corporate Behavior.
Related link
TDK Code of Conduct

Compliance
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Through a resolution of the Board of Directors, TDK appoints the Global Chief Compliance Officer from among
the corporate officers and the GCCO heads the TDK Group Compliance Committee. Furthermore, the GCCO
appoints Regional Chief Compliance Officers for four regions around the world in addition to Japan. Throughthese efforts, the TDK Group has further strengthened the company’s compliance structure in order to ensurethat all employees act in accordance with compliance based on global common standards, while fostering
corporate culture of integrity, fairness and transparency to meet the trust and expectations of customers andsociety.
In addition, the Compliance Committee assigns relevant functions to be in charge of compliance risk
management related to their functions. The relevant functions are taking actions to resolve potential compliancerisks relating to their functions, as well as adopting necessary preventive measures.
In Japan, the TDK Group also provides employees with an opportunity to periodically review their own behavior
and motivates employees to act in accordance with TDK compliance standards by including a compliance andethics related metric in personnel evaluations.

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Helplines
The TDK Group has established structures to enable employees to anonymously make internal reports andconsult regarding issues of corporate ethics through channels other than their regular work chain of command.
Each Ethics Council has a consultation hotline, and internal helplines have been established on a regional basis
for the direct collection of information and opinions relating to corporate ethics and other issues within theGroup. In addition to the regular reporting routes within the Group, alternate reporting routes that provide
access to outside law firms and other third parties have also been established in the Americas, Europe, andAsia. As a result, employees and others making reports can select the reporting route that they believed to be
the most appropriate.
Reports received via the helplines are investigated. In the event of a violation of the Code of Conduct being
confirmed, the parties concerned may be subject to penalties in accordance with the work rules and otherinternal regulations.
The TDK Code of Conduct Program stipulates the protection of informants so that they do not suffer any unfair
treatment or disadvantages.

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Environment

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As of April 1, 2023
Number of Consultations and Reports to Helplines (Global)
Fiscal 2019115

Fiscal 202046

Fiscal 2021

54

Fiscal 2022

79

Fiscal 2023

141

The scope of figures includes the Ethics Councils of affiliates.

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Management

Environment

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Spreading Awareness of Corporate Ethics
TDK provides every TDK Group employee with a copy of the TDK Code of Conduct Handbook andrecommends them to carry it around with them. Employees can use the handbook as a guide in their individual
business activities. We also endeavor to spread awareness of the Code of Conduct’s content through, forexample, the display of posters.
Also, in order to deepen employees’ understanding of corporate ethics, TDK implements training for specificranks of employees and e-learning for all employees, as well as lectures for management by responsible
directors and outside speakers.

Preventing Discrimination & Harassment
TDK Code of Conduct clearly states that the TDK Group will not engage in any discrimination based on
including, but not limited to, race, belief or gender, or any offensive or degrading conduct, such as corporalpunishment, mental or physical violence, abusive language, sexual harassment, power harassment, or moral
harassment, and will take measures to prevent unjust treatment and discrimination in the workplace.
The TDK Group companies have established policies and procedures, in accordance with the TDK Code of
Conduct and national and local laws and regulations, that define and strictly prohibit discrimination andharassment. Based on the policies and procedures, the companies seek to provide an environment in which
employees can consult with appropriate representatives regarding their concerns, and have set up mechanisms
and reporting structures for employees to use to file complaints of discrimination and harassment in theworkplace. Specifically, the TDK Group has established a global whistle-blowing mechanism that allows
employees of the TDK Group to consult and report through internal and external helplines that are independent
from the business lines. If Business Ethics Supervisory Committee, Ethics Councils or the relevant department
investigates a report received through the helplines and finds that the TDK Code of Conduct has been violated,
the Company will take disciplinary action against the violator, while protecting the informant from any unfair
treatment or disadvantage.
In addition, in order to promote appropriate conduct and prevent discrimination, harassment, unfair treatment
and disadvantage from occurring, the companies provide training to employees and managers.
Business Ethics Supervisory Committee shall report on the execution and operation of the TDK Code of
Conduct to the board of directors of TDK every quarter term.
TDK Corporation has established “Detailed Regulations on the Prevention of Harassment,” which defines
harassment and prohibited acts, and set up a harassment consultation desk in each workplace to provide anenvironment where employees can consult with appropriate representatives, including female counselors,
regarding harassment. In addition, in an effort to prevent harassment from occurring, “Harassment Prevention
Communication Training” is provided for managers to learn how to deepen communication while preventing
harassment.
Related links
TDK Code of Conduct

Respect for Human Rights

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Sustainability | Governance

Sustainable Procurement

CONTENTS

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and CEO

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Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

Our Approach

Roles and responsibilities

Goals and Achievements

Initiatives

Our Approach
As an enterprise with a global range of manufacturing sites, the TDK Group stipulates the TDK Purchasing
Policies to realize its Purchasing Principles and conducts purchasing activities in accordance with theseprinciples.

“Global Partnership Purchasing” --- Purchasing Principles
TDK engages in global production with manufacturing sites in Japan, Asia, Europe and the Americas. Within
the procurement activities that support production, the development of global procurement structures is
crucial, and we strive to use those systems to develop products rapidly to remain competitive in the race tobe first to market in the electronics industry.
Manufacturing sites engage in local procurement, but in today’s society with ubiquitous IT networks,
procurement activities require close collaboration with suppliers in ways that overcome time and distance. In
addition, measures to fulfill corporate social responsibilities such as compliance with applicable laws andregulations, observance of social norms, and preservation of the global environment are promoted actively
through partnerships between TDK and its suppliers.

Purchasing Policies
Compliance

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

Respect for Human Dignity
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TDK respects the human dignity of workers who are active in all stages of 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 and raise recognition of our initiatives. In addition, as part of thecommon understanding of social issues, we have established the TDK Supplier Code of Conduct.

Green Procurement
As one aspect of its companywide environmental protection activities and in the pursuit of harmony with theglobal environment, TDK engages in green procurement, i.e., the purchase of environment-conscious
products.

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Fair and Open Business

Editorial Policy

TDK conducts fair business regardless of company size or nationality. TDK bases its purchasing decisions
on comprehensive evaluations of quality, price, delivery time, ability to provide a stable supply, and otherfactors.
TDK does not accept gifts of any kind from business partners.
As a general rule, TDK does not accept dining or other forms of entertainment from business partners.

Message fromthe President
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MessagePartnership
TDK seeks to build mutually beneficial relationships with suppliers based on shared goals.

VA*Activities
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TDK values suppliers that can lower costs and provide new materials and technologies through VA
activities.

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

Quality, Delivery Time and Stable Supply
TDK always considers quality, delivery time and stable supply by establishing solid partnerships with its
suppliers.
*VA (Value Analysis) is a concept developed by the GE Company in 1947. VA provides a method to increase the value of a product or service, specifically by analyzing
various factors associated with the value relative to the minimum resources necessary to produce said product or service (its cost). TDK uses the terms VE (ValueEngineering) and VA synonymously.

The TDK Group has established a TDK Supplier Code of Conduct grounded in the Group’s TDK Purchasing
Policies. The Code of Conduct specifies the Group’s expectations for compliance in how suppliers conduct theiroperations, under several categories: labor, health and safety, environment, ethics, management systems, andinformation security. Furthermore, we expect our suppliers to recognize the risks associated with CSR and to
take human rights and safety into consideration in their activities in the supply chain, as well as to reduce theenvironmental load of their operations.
Related links
Procurement (Purchasing Principles, Purchasing
Policies, TDK Supplier Code of Conduct, Green
Procurement Activities)

Policy on Relations with Business Partners

TDK Group Supply Chain
On a global basis, the TDK Group does business with approximately 4,300 suppliers, with a purchase value ofmore than 680 billion yen (as of March 2023).

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Message

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Process of identifying critical suppliers
Sustainability
Management

The TDK Group identifies critical suppliers for our business sustainability by business unit, considering thefollowing elements.
• High-volume: suppliers that supply large quantities of materials or parts

Environment• Non-substitutable: suppliers that supply materials or parts that are difficult to find alternatives• Critical component: suppliers that supply important materials or parts

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As of March 2023, a global total of approximately 950 companies have been identified as critical suppliers.
Critical suppliers are reviewed on an annual basis.

Membership of the RBAIn February 2020, the TDK Group joined the Responsible Business Alliance (RBA),* the world’s largest industrial
coalition dedicated to CSR in the global supply chain. Accordingly, the TDK Group made a commitment tosociety that it fully supports the RBA’s vision and mission and, in accordance with the RBA’s code of conduct(labor, health and safety, environment, ethics, management systems), will continuously improve the human rights
of workers, health and safety, and the environment in the TDK Group and primary suppliers.
In accordance with the RBA standards, the TDK Group will endeavor to make continuous improvements in twostages, self-assessment and audit, depending on the transaction status with suppliers (primary production
materials), sub-contractors, and worker dispatch and labor agencies and the nature of their business.
*RBA : The Responsible Business Alliance (RBA) is a global industrial coalition embracing over 200 companies dealing in electronics, retail, automobiles, and toys. It
stipulates standards of conduct related to the improvement of industrial health and safety, the protection of human rights, consideration of the environment, and fulfillmentof ethical responsibilities in the supply chain and calls on affiliated companies and their suppliers to practice these standards.
• Vision: A coalition of companies driving sustainable value for workers, the environment and business throughout the global supply chain.
• Mission: Members, suppliers and stakeholders collaborate to improve working and environmental conditions and business performance through leading standards andpractices.

Related link
RBA (Link to external site)

Roles and responsibilities
The headquarters procurement function, business groups, the headquarters human resources function, and the
CSR function cooperate in promoting activities.

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Goals and Achievements
Fiscal 2023 Goals

Achievements

Achieve CSR compliant supplier rate of 99.5%

100%

Achieve 100% implementation of CSR self-checks at sub-contractors(fiscal 2023-2024)

86%

Achieve 100% implementation of CSR self-checks at labor agencies used bymanufacturing sites in the high-risk countries in Asia

100%

Evaluations and Future Activities
In fiscal 2023 TDK’s CSR compliant supplier rate, including newly affiliated Group companies, exceeded ourtarget to reach 100%. In addition, we conducted on-site CSR audits of 15 suppliers in fiscal 2023, and plan to
conduct on-site CSR audits of 22 suppliers in fiscal 2024.
For sub-contractors, we aim to implement 100% of CSR self-checks in two years from fiscal 2023 to 2024,
along with the update of the survey form.
Fiscal 2024 Goals
Achieve CSR compliant supplier rate of 100%

Sustainability
Management

Achieve 100% implementation of CSR self-checks at sub-contractors (fiscal 2023-2024)

Environment

Initiatives

Achieve 100% implementation of CSR self-checks at labor agencies used by manufacturing sites in the high-risk countries in Asia

Supplier evaluations
Society

Governance

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With the aim of ensuring sound business conduct, TDK performs regular supplier evaluations. An evaluation isalways conducted when newly registering a company as a supplier, and at regular intervals thereafter to decide
whether to continue the relationship. Each group company adopts an appropriate method and, with reference tosupplier evaluation results, only begins business with suppliers having no problems.
The main categories covered by the evaluation are quality management, chemical substances* management,
environmental management, and corporate social responsibility (CSR) including strict observation of humanrights and other legal obligations as well as compliance with social norms. Any problems that come to lightthrough the evaluation are disclosed to the supplier with a request for corrections or improvements.
*The chemical substances in the evaluation are based on the “TDK Green Procurement Standards.”

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Related link
TDK Green Procurement Standards

CSR self-checks for suppliers
Supplier

Frequency

Content• Material suppliers (excluding
suppliers of nonproduction
materials, such as officeequipment)
CSR
self-check

At the time of starting
business and regularly inprinciple once every two
years thereafter• Compiled on the basis of the RBA’s checklist.
• After receiving responses, improvements are requested for necessary items.

• Sub-contractors• Compiled on the basis of the RBA’s checklist (specific content related to the• Worker dispatch and laboragencies (high-risk countries in
Asia)

prevention of forced labor, illegal exploitation, and child labor; prevention ofEvery year

corruption and ethical violations; prevention of information leakage and risk
avoidance; etc.)• After receiving responses, improvements are requested for necessary items.

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Message

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sustainability!

Sustainability
Management

Environment

Society

Governance

The TDK Group includes items relating to CSR, such as legal compliance, environmental protection, prohibitionof forced labor, respect for human rights, and product safety, in basic business contracts and regularly
implements CSR self-checks to confirm the status of CSR efforts of suppliers.
The CSR self-check list, which is based on items required by the RBA, consists of a total of 60 items consideredespecially important by TDK, including the categories of human rights and labor, the environment, health andsafety, fair trade and ethics, and information security. Through this process, we request suppliers to report thestatus of their management systems and efforts in each category. In fiscal 2023, approximately 4,300 material
suppliers (excluding suppliers of nonproduction materials, such as office equipment) have been confirmed as
CSR-compliant suppliers.
As for sub-contractors, we set a target of 100% implementation of CSR self-checks in the two years from fiscal
2023 to 2024. In fiscal 2023, 86.0% of 252 targeted companies were confirmed to be CSR-compliant suppliers.
Regarding worker dispatch and labor agencies, it was recognized that inappropriate responses in such agencies
were an issue in certain countries in Asia where risks relating to human rights and recruitment are thought to behigh. For this reason, the CSR self-check is implemented for labor agencies used by manufacturing sites in highrisk countries in Asia. With the aim of confirming management control relating to human rights and ethics, theself-check list consists of specified content related to the prevention of forced labor, illegal exploitation, and childlabor; prevention of corruption and ethical violations; prevention of information leakage and risk avoidance; etc. In
fiscal 2023 self-checks were conducted at all 61 targeted labor agencies (100%). Regarding agencies that failed
to achieve a certain level of results in the survey, the manufacturing sites using those agencies carry out
improvements.

Supplier Partnership System
TDK requires its suppliers to reply to a CSR check sheet through the Supplier Partnership System. This SupplierPartnership System is a system by which the management of company information, distribution of purchasespecification forms, sharing of agreement documents, and so on, which previously was conducted by paper ormagnetic recording media, are managed uniformly online. It benefits both sides by speeding up and boosting
the efficiency of work. To raise both supplier awareness and motivation to make improvements, the check sheet
is designed to immediately display the results on-screen when answering questions. If problems occur withresponses, individual requests are issued for improvements.

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CSR audits for suppliers
TDK conducts the CSR-specific on-site auditing of critical suppliers based on RBA auditing standards. If legal
violations are discovered, we demand correctional measures; if improvement opportunities not amounting tolegal violations are noticed, we request improvements. In fiscal 2023 we carried out such audits on 15
companies both in Japan and elsewhere. No legal violations were discovered, but we did make improvement
requests to suppliers where issues concerning health and safety, etc. were spotted, and we are implementing
follow-up as necessary.

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Sustainability
Management

Environment

CSR audits for sub-contractors
Based on the RBA auditing standards, the TDK Group conducts periodic CSR audits in China on subcontractors heavily dependent on TDK.
In fiscal 2023, we audited two companies in the China area and three companies in the Japan area. We plan toexpand the scope of audits in the future.

Green procurement
In order to promote green procurement aimed at the priority purchase of products that contribute to reducing
the environmental load and fulfill social responsibility, TDK has been implementing Green procurement, andeach group company has been taking their own appropriate measures. In April 1999, TDK established the TDK
Green Procurement Standards. These standards are revised as necessary to take account of laws andregulations in Japan and other countries, changes in social requirements, and other factors. They can be viewed
on the TDK website.
We issued version 9.1 of the TDK Green Procurement Standards in April 2020 and distributed them to all of our
suppliers. Version 9.1 incorporates the TDK Environmental Vision 2035 as well as a review for compliance with
relevant laws and regulations. It urges suppliers to cooperate with environmental measures to ensure a uniformly
compliant supply chain.
TDK’s procurement master provides links to data consistent with TDK’s green procurement standards, firmly
controls the content of prohibited substances and chemical substances requiring content management, anddiscloses and provides information as necessary.

Strengthening of BCP/BCM in the supply chain
Society

GovernanceIn unforeseen circumstances, such as the outbreak of a large-scale natural disaster, TDK, as a member of the
supply chain, has a duty to share social responsibility with suppliers and meet demands so as to ensure thestable supply of products required by customers. Recognizing that the securing of stable supplies is an
important responsibility, TDK addresses this issue in three main ways:
1.	BCP/BCM surveys of suppliers
2.	Advance collection and arrangement of information to use in an emergency

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3.	Prompt initial responses using a BCP Confirmation System
In particular, regarding BCP/BCM surveys of suppliers, a joint industrial initiative has begun, and TDK
implements the supplier BCP/BCM surveys utilizing the Supply-Chain Business Continuity Questionnaire of theJapan Electronics and Information Technology Industries Association (JEITA). Furthermore, TDK endeavors tostrengthen supply chain BCP/BCM by, among other activities, holding BCP/BCM seminars for business
partners.

Strengthening of compliance (TDK Corporation)
TDK has clarified a company-wide policy regarding offers of gifts and entertainment from suppliers, publicizedthat policy throughout the Group, and requested the understanding and cooperation of suppliers.
Furthermore, regarding the exclusion of antisocial forces, TDK conducts preliminary surveys of suppliers whenstarting or restarting business with them.

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Editorial Policy

Message fromthe President
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Message

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Sustainability
Management

Environment

Society

Governance

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Education and support to suppliers (TDK Corporation)
TDK organizes seminars and offers individual support on several CSR-related topics with the aim ofstrengthening the initiatives of our suppliers. In recent years we have organized BCP/BCM seminars andprovided individual support for the strengthening of information security, such as implementation of briefings
and assistance for improvements. These two efforts are introduced as best practices on the official portal site of
the government- and industry-supported “Declaration of Partnership Building” framework, which is explained
below.
Furthermore, TDK conducts environmental-initiative surveys of suppliers relating to their efforts to reduce CO2
emissions. Based on the results of these surveys, we present supplier awards and provide feedback
information.

Sustainable-procurement education
TDK has created a “Sustainability and CSR” e-learning course for its procurement departments, to ensure that
personnel in these departments understand the importance of sustainable procurement.

Course: “Sustainability and CSR”
1.	What sustainability means
The role of sustainability, procurement, and purchasing
2.	What CSR (corporate social responsibility) means
The positioning of CSR and the role of procurement and purchasing
Establishing purchasing ethics—CSR in procurement and purchasing
3.	Risk management in procurement and purchasing
The causes of procurement risk
Assumptions associated with risk—Assumptions regarding frequency of occurrence, nature of impact, scaleof impact
Preparation during normal times—Prevention; preparation for emergency response

Declaration of Partnership Building
In May 2021 TDK issued its “Declaration of Partnership Building” as a means of building relationships ofcoexistence and co-prosperity with its suppliers. “Declaration of Partnership Building,” used as a general term,
is an initiative launched by the Council on Promoting Partnership Building for Cultivating the Future, whose
membership consists of the chairman of the Japan Business Federation (Keidanren); the chairman of the Japan
Chamber of Commerce and Industry; the president of the Japanese Trade Union Confederation; the Minister ofState for Economic and Fiscal Policy ; the Minister of Economy, Trade and Industry; the Minister of Health,Labour and Welfare; the Minister of Agriculture, Forestry and Fisheries; and the Minister of Land, Infrastructure,
Transport and Tourism. Each participating company issues its own declaration under the name of a corporate
representative, the aim of each declaration being to build new partnerships by promoting cooperation, coexistence, and co-prosperity between the issuing company and its suppliers and other business partners
seeking to create added value. A company issuing a declaration states that it will seek coexistence and coprosperity across its supply chain, promote new forms of cooperation irrespective of such factors as size or
relationship to the supply chain, and observe appropriate transaction practices between main subcontracting
entrepreneurs and subcontractors, all in an effort to boost the added value of the entire supply chain.

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Sustainability | Governance | Sustainable Procurement
CONTENTS

Editorial Policy

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Message

Policy on Relations with Business Partners
In building sound and favorable relations with customers, suppliers, and other business partners, the TDK Group
promotes the revision (simplification, rationalization) of traditional etiquette and customs between companies
and acts accordingly.
• Refrainment from participation in and attendance at individual celebratory and funeral events, such ascelebratory parties, wedding receptions, and wakes• Refrainment from giving and receiving money, etc. at times of promotion and preferment• Refrainment from giving and receiving summer gifts, year-end gifts, etc.

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Sustainability | Governance | Supply Chain Management

Responsible Sourcing of Minerals

CONTENTS

Editorial Policy

Message fromthe President
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Sustainability
Management

Environment

Society

Our Approach

Roles and Responsibilities

Goals and Achievements

Initiatives

Our Approach
Based on concerns that minerals mined in the Democratic Republic of the Congo (DRC) and adjoining countries
serve as a source of funding for armed groups provisions on conflict minerals were incorporated in the US DoddFrank Wall Street Reform and Consumer Protection Act, which was enacted in July 2010, and its final rule wasadopted in August 2012. The TDK Group Policy on Conflict Minerals was formulated in April 2013, to promote
initiatives in full compliance with the Due Diligence Guidance of the Organization for Economic Cooperation andDevelopment (OECD).
In order to reduce involvement not only in conflicts but also serious human rights violations and environmental
pollution, TDK has expanded the scope of its responsible sourcing of minerals beyond those from conflict-affected
and high-risk areas. In January 2019, we revised our policy, which is now entitled the “TDK Group Policy on
Responsible Sourcing Minerals.” Under this revised policy, TDK will continue to promote responsible sourcing ofminerals throughout the supply chain, including minerals such as tantalum, tin, tungsten, gold and cobalt, which
may be sourced from not only conflict areas but also areas with high risks of misconduct, including human rights
abuses and environmental destruction.These risks include OECD Annex II risks.
Related link
TDK Group Policy on Responsible Sourcing Minerals

Governance

Roles and Responsibilities
External Evaluation/ Status of inclusionin the ESG Index

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Supplier surveys are managed by the headquarters procurement function and responses to customers aremanaged by the headquarters quality assurance function, and each group company has established its own
survey response system.

Goals and Achievements
Fiscal 2023 Goals

Achievements

A ratio of at least 92% of suppliers whose procurement of conflict minerals (3TG:
tantalum, tin, tungsten, and gold) is confirmed as being from RMAP*-compliant
smelters

86.5%*The Responsible Mineral Assurance Process (RMAP) is a program that verifies compliance with responsible sourcing of minerals. The program uses an independent thirdparty organization to evaluate smelters’ and refiners’ management systems and procurement practices.

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Editorial Policy

Message fromthe President
and CEO

CPSO
Message

Evaluations and Future Activities
In fiscal 2023 as in past years, we requested that suppliers continue to make procurements from RMAP-compliant
smelters. We requested maximum efforts from suppliers whose compliance we could not confirm. Unfortunately,
however, we were unable to achieve our target, with 86.5% of suppliers confirmed as procuring from RMAPcompliant smelters. This is attributable to significant changes in societal circumstances including thoseprecipitated by Russia’s invasion of Ukraine.
In fiscal 2024, we have again set “a ratio of at least 92% of suppliers whose procurement of conflict minerals (3TG)
is confirmed as being from RMAP-compliant smelters” as a common KPI for the TDK Group and will become moreproactive in promoting Group-wide efforts, specifically those to make continued requests to suppliers while
responding to inquiries from customers in a precise and timely manner. Furthermore, since collaboration withindustrial organizations is essential to solve the expanding problem of responsible sourcing of minerals, we willcontinue to participate in such industrial discussions.
Fiscal 2024 Goals

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

A ratio of at least 92% of suppliers whose procurement of conflict minerals (3TG) is confirmed as being from RMAP-compliant smelters

Initiatives―Implementation of surveys in Group companies and promotion of conflict-free sourcing
TDK has been conducting initiatives for risk identification measures in accordance with the OECD’s Due
Diligence Guidance. To guarantee the rationality of replies, surveys use the Conflict Minerals Reporting Template(CMRT) issued by the Responsible Minerals Initiative (RMI)* to check whether products contain the so-called
3TG conflict minerals (tin, tantalum, tungsten, and gold) and identify smelters. After the retrieval of CMRT
surveys, TDK compares them with the RMI’s Smelters & Refiners Lists and evaluates the risk of conflict minerals
included in production materials being used as funding for armed groups and the risk of human rights violations,
including child labor.
In fiscal 2023 surveys were implemented at Group companies, and the ratio of suppliers confirmed to beconflict-free was 86.5%, meaning our target of over 92% was unfortunately not achieved.
*The RMI, which has a membership of more than 400 companies and organizations worldwide, spearheads efforts relating to responsible mineral procurement.

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Related link
Smelters & Refiners Lists (Link to external site)―Cobalt / Mica Survey
We are proceeding with the identification of cobalt smelters and mica processors using the Extended Minerals
Reporting Template (EMRT) issued by RMI since December 2021.
In addition, we have made a condition of procurement from RMAP-compliant refineries.
■ Correction Process―Response to identified risks
When we request a survey of suppliers, we clarify to them our policy that they use RMI-conformant smelters,that is, smelters that appear on RMI’s Conformant Smelters & Refiners Lists. In the survey process, if a risk is
discovered, TDK requests the supplier to remove the smelter concerned from the supply chain.

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Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment■ Promotion of Troubleshooting in Collaboration with Industrial Organizations

In order to solve problems relating to responsible mineral procurement, efforts are necessary in the entire supply
chain. TDK has participated in the RMI since February 2020 and in the JEITA’s Responsible Minerals Trade
Working Group ever since its founding. TDK took part in the following activities in fiscal 2023:• TDK participated in the Education and PR Team of the JEITA Responsible Minerals Trade Working Group andcooperated in the organization of an online briefing on responsible mineral procurement aimed at raisingawareness of the problem of responsible mineral procurement and deepening understanding of survey
methods among secondary suppliers and others. TDK also participated in the capacity of consultants at
individual consultation sessions that followed the online briefing.
• TDK participated in a joint working group (the Conflict-Free Sourcing Working Group) with automakers andgave feedback for a survey manual and tools.
• TDK submitted a response to RMI’s solicitation for comments on revisions to the EMRT.
• As the leader of JEITA’s Data Exchange Standard Development Team, TDK conducted hearings at which
involved companies addressed the expansion of regulated minerals in the mica category, and followed-up on
trends in revisions to IPC-1755 data exchange standard for responsible mineral procurement.
Related link
JEITA Responsible Minerals Trade Working Group (Link toexternal site)

Membership of the RBA and RMI

RBA (Link to external site)

RMI (Link to external site)

Society

Governance

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Sustainability Report 2023

Sustainability | Governance | Responsible Sourcing of Minerals
CONTENTS

Editorial Policy

Message fromthe President
and CEOTDK Group Policy on Responsible Sourcing Minerals
This policy shall apply to the worldwide organization of the TDK Group and implements the TDK Group’s goal ofestablishing responsible supply chains for sourcing minerals.
Reflecting the values embodied in the TDK Code of Conduct, the TDK group affirms the purpose of sustainable
and responsible sourcing minerals that originate in conflict-affected and high-risk areas, which is to mitigate thecontribution of conflict, serious human rights abuses or environmental threats.
The TDK Group hereby adopts this policy for responsible supply chain operation.

CPSO
Message• The TDK Group recognizes that due diligence for responsible supply chains of minerals from conflict-affected
and high risk areas is an ongoing process. Accordingly, the TDK Group will use its commercially reasonable
best efforts to ensure only sustainable and responsible minerals are used in its supply chain.

All you need toknow about TDK’s
sustainability!

• To achieve this end, the TDK Group shall institute a due diligence sourcing mineral program. The TDK Group
expects that its suppliers source all inputs, including minerals, responsibly.

Sustainability
Management• The TDK group will communicate to its suppliers TDK Group’s requirements to conduct reasonable due
diligence of their own supply chains of minerals from conflict-affected and high-risk areas. The TDK Group will
incorporate its supply chain policy and due diligence processes into commercial contracts, writtenagreements and supplier evaluations with its suppliers which can be applied and monitored, including, if
deemed necessary, the right to conduct unannounced spot-checks on suppliers and have access to their
documentation.

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index• The TDK Group will work in tandem with its suppliers to implement reasonable controls within the supply
chain to trace the origin of minerals from conflict-affected and high risk areas in order that contribution of
conflict, serious human rights abuses or environmental threats minerals are not included within the products
or materials they sell to the TDK Group. Furthermore, in the event that TDK Group discovers suppliers are notin compliance with its supply chain policy and due diligence processes, its first step is to work with them tobring them into compliance through corrective action plans. The TDK Group will not work with those who do
not work to meet its standards.
• Reaching full traceability of minerals requires time and effort across industries and collaboration from all
sectors in the supply chain. This is due, in a large part, to the complexity in the way that metals are produced
and sold and the fact that ores from many different sources can be combined, thus multiplying the diligencenecessary to trace the products. All of this is complicated by the geopolitical forces at work in the region.
These factors make industry-wide cooperation of the utmost importance in achieving socially responsible
sourcing. The TDK Group strongly encourages its suppliers to comply with available international frameworks
governing responsible sourcing minerals matters.
• The TDK Group is committed to the objectives of implementing responsible supply chains for minerals fromconflict-affected and high-risk areas. As such, the TDK Group is working diligently to put the systems andprocesses into place that will enable us to ensure that the TDK Group is supporting responsible suppliers.
Established on April 1, 2013
Revised on January 18, 2019 (2nd edition)

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Sustainability | Governance | Supply Chain Management
CONTENTS

Social and Environmental Consideration at Manufacturing Sites

Editorial Policy

Our Approach

Roles and Responsibilities

Goals and Achievements

Initiatives

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Our Approach
As a supplier, TDK recognizes the importance of fulfilling our social responsibilities by striving for social andenvironmental considerations at the Group’s manufacturing sites in order to continue our business. We strive tounderstand issues and make continuous improvements in a three-stage framework comprising selfassessments, audits, and training and dialogue.

Sustainability
Management

Environment

Society
CSR management framework at our manufacturing sites

Governance

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Roles and Responsibilities
CSR function at the headquarters takes the lead in promoting this initiative, with a responsible person assigned
at each manufacturing site.

Goals and Achievements
Fiscal 2023 Goal

Achievements

Achieve 100% implementation of CSR self-checks at manufacturing sites (TDKGroup manufacturing sites)

Achieved 100% implementation

Achieve 100% implementation of labor, human rights, and ethics risk assessments
at manufacturing sites (TDK Group manufacturing sites)

Achieved 100% implementation

Conduct either of RBA-authorized audit, customer CSR audit, or CSR assessment
based on the RBA VAP Operations Manual at all our manufacturing sites at least
once every three years

Conducted at 63% of sites in the two-year period from fiscal 2022 through fiscal
2023

Conduct training for personnel involved with CSR in Japan and overseas

Conducted CSR internal auditor training in Japan and the ASEAN region, andtraining on the RBA Code of Conduct and RBA VAP Operations Manual in China

Achieve 100% implementation of labor, human rights, and ethics internal audits attargeted manufacturing sites

Achieved 100% implementation at targeted sites

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Editorial Policy

Message fromthe President
and CEO

Evaluations and Future Activities
Starting in fiscal 2022, we launched an initiative to conduct either an RBA-authorized audit, a customer CSR
audit, or a CSR assessment based on the RBA VAP Operations Manual at all manufacturing sites at least once
every three years. In the two-year period from fiscal 2022 through fiscal 2023, 63% of sites were audited,resulting in the achievement of the target by fiscal 2023.
From fiscal 2024 onward, we will pour further energy into each activity aimed at achieving our plan, and, while
keeping a close eye on trends at the RBA, pursue efforts on a global level to strengthen CSR management inaccordance with RBA standards.
Fiscal 2024 Goal

CPSO
Message

Achieve 100% implementation of CSR self-checks at manufacturing sites (TDK Group manufacturing sites)
Achieve 100% implementation of labor, human rights, and ethics risk assessments at manufacturing sites (TDK Group manufacturing sites)
Conduct either of RBA-authorized audit, customer CSR audit, or CSR assessment based on the RBA VAP Operations Manual at all our manufacturing sites at least once
every three years

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Conduct training for personnel involved with CSR in Japan and overseas
Achieve 100% implementation of labor, human rights, and ethics internal audits at targeted manufacturing sites

Initiatives
Self-assessments
Frequency

Target site

Content

CSR self-checks

Every year

All TDK Group manufacturing
sites

Personnel at each site respond to a questionnaire on RBA check items(human rights, health and safety, environment, and ethics). Improvement
measures are taken at each site based on feedback from the survey results.

Society

Labor, human rights, and ethics
risk assessments

Every year

All TDK Group manufacturing
sites

The check items are updated every year based on social trends. Personnel
at each site respond to a questionnaire. Based on the analysis results,
improvement plans are developed and implemented.

Governance

CSR Self-Checks

Environment

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At TDK, we use the Self-Assessment Questionnaire (SAQ) provided by the RBA to conduct annual self-checks
regarding labor (human rights), health and safety, the environment, ethics, and management systems at all of ourmanufacturing sites. The purpose is to get a sense of the current status of CSR activities at manufacturing sites,
to identify and address potential issues, and to promptly respond to requests from customers for CSR surveys.
After the staff in charge at each site have answered the questionnaire, the Sustainability Promotion HQ analyzes
the responses and provides feedback to those manufacturing sites that need it.
In fiscal 2023, of all the sites where SAQ was conducted, feedback to improve issues was provided to nine sites
at which issues were identified as a result of evaluations.

Labor, Human Rights, and Ethics Risk Assessments
Every year, risks related to labor/corporate ethics are analyzed at all manufacturing sites. In the event that there
are any inherent risks, they are corrected after having formulated a plan for improvement and work is performed
to mitigate the risks (environment and health and safety assessments are conducted separately). Each site aims
for continuous improvement by going through the PDCA cycle.
The items to be checked are updated every year based on social trends and so forth. After the staff in charge ateach site have answered the questionnaire, the Sustainability Promotion HQ assesses risks and returns theresults of their assessment back to the sites. When inherent risks have been discovered, plans for improvements
are formulated and the issues are corrected at each site.
In fiscal 2023, we conducted a human rights risk assessment, with a focus on supplier management (laboragencies and service providers) in accordance with RBA standards. Remedial measures were taken by the endof the fiscal year at the 10 sites where risks were identified during evaluations.

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Related link
CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

Environmental Management System

Health and Safety

AuditsFrequency
RBA-authorized audit
Customer CSR audit

CSR assessment based on the RBA
VAP Operations ManualStarting fiscal 2022, launchedinitiative to conduct either an RBAauthorized audit, a customer CSR
audit, or a CSR assessment based on
the RBA VAP Operations Manual at
all manufacturing sites at least once
every three years

Target site

Content

Priority target sites based on
Medium-Term Plan

RBA-authorized audit (VAP, AMA, or CMA)

Sites requested by customers

Performed based on customer’s audit standards• CSR assessment based on the RBA VAP

Site where no RBA- or
customer-based audit hasgone inOperations Manual• Carried out by the headquarters or each regional
CSR group

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sustainability!

Sustainability
Management

Environment

Society

Internal audit

AnnualSite where high-level
management is requested• Horizontal roll out of remediation measures basedon results of the aforementioned 3 audits• Performed by CSR staff from either the CSR
group in each region or from another site whohave completed CSR internal auditor training

Our company promotes mainly three types of CSR audit: an RBA-authorized audit, a customer CSR audit, and a
CSR assessment based on the RBA VAP Operations Manual. By conducting audits based on the standards that
customers require and on RBA standards, we have constructed a mechanism to ensure that the levels of labor,
health and safety, the environment, ethics, and management systems are maintained at a global standard.
In addition, starting in fiscal 2022, all manufacturing sites are required to conduct either an RBA-authorized
audit, a customer CSR audit, or a CSR assessment based on the RBA VAP Operations Manual at least once
every three years. In the two-year period from fiscal 2022 through fiscal 2023, 63% of all manufacturing sites
were audited, resulting in the achievement of the target by fiscal 2023.

Trainings and Dialogues
Governance

External Evaluation/ Status of inclusionin the ESG Index

With a systematic understanding of RBA and customer requirements related to CSR, we provide timely training
for quick responses. In fiscal 2023, in addition to having an RBA-authorized company conduct “CSR internal
auditor training” in Japan and the ASEAN region, we held hybrid-format training relating to the RBA Code of
Conduct and RBA VAP Operations Manual for the China region.

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Sustainability Report 2023

Sustainability | GovernanceTax Strategy

CONTENTS

Editorial Policy

Global Tax Policy

Message fromthe President
and CEO

Global Tax Policy

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

TDK Group herein sets forth the Global Tax Policy in accordance with the TDK Code of Conduct, established toreflect and implement the corporate philosophy and the management policy of TDK Group. The Global Tax
Policy is applicable to TDK Group consisting of TDK Corporation (TDK) and its consolidated subsidiaries(collectively “TDK Group” or “the Group”).

Compliance• TDK Group as a good corporate citizen complies fully with all applicable tax laws and regulations establishedin all countries and regions where it operates in light of the purpose of its legislation. Furthermore, the Group
respects and complies with international guidelines, and international efforts represented by BEPS (Base
Erosion and Profit Shifting) Project proposals provided by public interest organizations such as the OECD. The
Group believes compliance is always an essential prerequisite for any corporate business activities.
• The Group strives to fulfill its commitments by establishing strong compliance procedures to ensure accuracy
and completeness.

Corporate Activities and Taxes
Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index• TDK Group, in the conduct of its corporate activities based on the corporate philosophy and the management
policies of the Group, is particularly engaged in the following activities with regard to tax practices:- The Group computes taxes, files all necessary tax returns and tax declarations, and makes tax payments inall relevant jurisdictions in a proper and timely manner in accordance with applicable tax laws andregulations- The Group improves tax efficiency and maximizes corporate value by proactively utilizing tax incentives
established by countries and regions to the extent that the incentive utilization follows the legislative intent
behind the rules and regulations.
- The Group analyses tax events, tax attributes, and tax expense and provides appropriate and concise
information to stakeholders, in accordance with applicable tax laws and regulations.

Organization, Roles, and Responsibilities• Corporate governance of TDK Group relevant to taxes is embedded within its overall governance system. The
system provides a framework for compliance of applicable tax laws and regulations, minimization of tax risks,maximization of corporate value, and growth of the Group.
• The corporate governance of the Group relevant to taxes is executed under the responsibility of the CFO of
the Group who delegates certain portion to subgroup tax departments and persons in charge of taxes at eachgroup entity.

Tax Risk Management• The tax function minimizes tax risk by working closely with business and other departments and sharing
information of transactions. It strives to prevent unnecessary disputes by building strong technical positions
through planning, implementation, and documentation.
• TDK Group makes all decisions through the analysis of other factors including financial return, financial risk,
and potential reputational risk as well as taxes.

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CONTENTS

Editorial Policy

Message fromthe President
and CEO• In cases where the Group identifies tax uncertainties, the cases shall be appropriately reported to the
managerial decision-making bodies and the CFO of the Group. Decisions to be taken follow usual Group
procedures.
• In cases of significant transactions where applicable tax laws and regulations could be interpreted in a broad
range of meanings or there are no clear regulations, the Group seeks to minimize tax risks through actions
such as seeking advice from external advisors, obtaining advance pricing arrangements/agreements orrulings from tax authorities where necessary.
• The Group regularly monitors compliance in accordance with laws and regulations relevant to tax risk
management.

Tax Strategy and Tax Planning
CPSO
Message

All you need toknow about TDK’s
sustainability!

• As mentioned above, TDK Group seeks to maximize corporate value while maintaining full compliance with allapplicable tax laws and regulations. The Group continuously monitors the changing tax environment as wellas its evolving business models, identifies both tax risks and benefits under the changes of tax environmentand business models, and adapts to changes as necessary to achieve its business objectives.
• With regard to transactions where a significant level of tax impact is expected and/or which show a highdegree of tax uncertainty, the Group managerial decision-making bodies and procedures generally seek
external tax advice to decide how the Group responds.

Sustainability
Management• As a matter of principle, the Group does not intentionally implement artificial tax avoidance structures.

Environment

Transfer pricing• In addition, the Group will never make tax avoidance by using subsidiaries in which countries or regions areno tax or low tax rates and are secrecy jurisdictions (so-called “tax havens”) .

Society• TDK Group calculates the pricing for the intercompany transaction in accordance with the OECD Transfer
Pricing Guidelines and the laws and regulations of each country or region and also in accordance with the“arm’s length principles”. In addition, the TDK Group makes the appropriate amount of tax payments inappropriate tax jurisdictions based on the value created through its business activities.

Governance

Relationship with Tax Authorities

External Evaluation/ Status of inclusionin the ESG Index

Search / Index• TDK Group seeks to build a good, faithful, and professional relationship with tax authorities of countries andregions.
• The Group responds to tax audit inquiries and requests from the tax authorities in accordance with applicable
tax laws and regulations and in a faithful, courteous, professional, and timely manner.
• In cases where conflicts with the tax authorities occur, the Group defends its position professionally and ingood faith, and seeks to achieve a rational and transparent audit resolution in accordance with applicable tax
laws and regulations.

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Sustainability | Governance

Information Security

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
MessageOur Approach

Roles and Responsibilities

Initiatives

Our Approach
In order to ensure the continuous improvement of information security, the TDK Group has built a global
information security management structure based on its Basic Policy on Information Security and conducts
activities accordingly.

All you need toknow about TDK’s
sustainability!

Basic Policy on Information Security
Sustainability
Management

General Direction
This Policy shall apply to the TDK Group.

Environment

The TDK Group shall work on maintenance and enhancement of the security of information, recognizing that it isindispensable to secure personal information and trade secrets (including information on or received from customers)
appropriately, and ensure the correctness and accuracy of financial information as well as business continuity in orderfor us to make ourselves highly reliable and more satisfactory to our stakeholders.

Society

We all shall execute the following six actions as the concrete guidelines of actions.

Action Guidelines
Governance1.	Observance of Laws and Regulations
In the handling of information, we shall observe laws and regulations concerning “the prevention of alteration, leakage, unauthorizedaccess, and unlawful use of information”, “requiring reliability of information and correctness in disclosure”, and “protecting personalExternal Evaluation/ Status of inclusionin the ESG Index

information”, and “business requirements including terms and conditions of contracts with customers” in the respective countries andregions.
2.	Information Security Management System
We shall establish a system to manage and govern information security organically and define its role and responsibility.

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3.	Implementation of Measures for Risk Management
We shall find out threats and vulnerability in light of confidentiality, completeness and availability, and implement sufficient measuresin response to the risks. In addition, we shall make sure to implement the measures for information security with the company
regulations set in accordance with this Policy.
4.	Provision of Resources
The management shall provide management resources necessary to execute this Policy.
5.	Continuous Improvement of Information Security
We all shall endeavor to continue to improve the information security in response to changes in risks arising from transformation ininternal and external circumstances.
6.	Strict Actions
Should there be a violation of this Policy or the company regulations, the management shall take a strict action in accordance with theCode of Conduct and the Work Rules.
Established July 1, 2005
Revised on April 15, 2016 (2nd edition)

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Editorial Policy

Roles and Responsibilities
Under the Executive Committee, TDK has set up the Information Security Committee, which adopts measures in
response to information security risks in the Group as a whole. By establishing deliberative bodies made up ofrepresentatives from each region around the world, we are reinforcing global information security governance.
Through the Information Security Administration Managers Meeting and other channels, the Information Security
Committee endeavors to implement measures for each division.

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Information security management organization (As of April 1, 2023)

Society

Initiatives
Governance

External Evaluation/ Status of inclusionin the ESG Index

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TDK is strengthening its information security measures in accordance with the Cybersecurity Framework of the
US National Institute of Standards and Technology (NIST) ((1)identify, (2)protect, (3)detect, (4)respond, (5)recover), which can be described as the standard for information security countermeasures.

[Principal Measures]• Use of a mechanism to automatically evaluate security administration conditions and identify and improvevulnerabilities ((1)identify, (2)protect, (3)detect)• Support for improvements after confirmation of supply-chain security conditions ((1)identify, (2)protect)• Introduction of mechanism to detect the status of use of dangerous cloud services ((3)detect)• Global implementation of training to counter security incidents ((4)respond, (5)recover)• Global subscription to cyber-risk insurance ((5)recover)
In order to respond to cyberattacks, which are becoming an increasingly serious threat, TDK is strengthening
countermeasures to prevent the occurrence of damage and, in the event that damage does occur, to minimize it.
In addition, TDK will continue to enhance employee education and training, including training to handle targetedemail attacks, thereby responding to risks in the Group as a whole that cannot be fully handled by the system.

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Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Information Security Education
To maintain and enhance information security throughout the entire TDK Group, we implement information
security education and email training for all employees more than once a year.
Information security education is conducted at Group sites for computer users. Regarding the content andfrequency of the education, each site incorporates appropriate topics in accordance with its environment andcircumstances.
In the email training at each site, emails resembling actual targeted email attacks are sent to employees tocheck the number of people who open the attached file and the number of people who click on the URL.

Filing of Complaints Regarding Privacy Violations
TDK has formulated the Basic Policy on the Protection of Personal Information and endeavors to manage
personal information properly. In fiscal 2023 there were no reports or receipt of complaints in Group companies
concerning the infringement of customer privacy or the loss of customer data.

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

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Sustainability | Governance

Quality Assurance

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Our Approach

Roles and Responsibilities

Goals and Achievements

Initiatives

Our Approach
TDK pursues the corporate mission of contributing to society through the manufacture and supply ofoutstanding electronic components.
“Quality” is the key management axis in this quest, positioned as the top priority in activities aimed at realizing
top-caliber products built to consistently live up to customers’ expectations.

Basic Philosophy“Advance to Zero Defects”
TDK advocates the “Advance to Zero Defects” as its basic philosophy. This is manifested as to efforts toeliminate defects not only at the shipment stage, but also throughout the product life cycle spanning
distribution, assembly by set manufacturers, application by end users and disposal.

Quality Policy“Quality cannot be assured by final inspection!”
TDK firmly believes that “Quality cannot be assured by final inspection.”
This policy stems from the idea that simply removing defective items at final stage inspection cannot ensuresufficient product quality. Rather, the goal is to firmly instill the attitude of “building in” quality at eachprocess to assure the excellence of 100% “good products.”
Therefore, TDK improves quality from the upstream level at the product design, process design, equipment
development and all other stages. The goal is to eradicate defects and realize high-quality products that
constantly earn customer satisfaction and trust.

Quality Targets“Achieve Zero Defects” “Make TDK the leading quality-oriented company in the industry”
To ensure full satisfaction for customers using its products, TDK works to faithfully supply top-quality goods
on a continuing basis. Quality assurance activities are advanced on the cornerstone of the three pivotal
themes of “Human Resource Quality,” “Technological Quality” and “Systematic Quality.” This stance ismarshaled to firmly address the targets of achieving zero defects and making TDK the leading qualityoriented company in the industry.

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CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Roles and Responsibilities
General Manager of headquarters quality assurance function supervises QA activities in the Group as a whole,endeavors to share and develop principles and policies, and promotes activities by the entire Group toward theirrealization. In addition, each business division has a QA function, the head of which supervises and executes QA
activities in the division.

Goals and Achievements
Fiscal 2023 Goal

Achievements

Expand quality education globally by utilizing digital transformation (DX)

Created and deployed online content for quality education

Evaluations and Future Activities
Going forward, we will continue to provide new content through TDK’s digital learning platform (Weconnect).
Fiscal 2024 Goal

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Enrich online content for quality education

Initiatives
Top Priority Measures in the “Advance to Zero Defects”
At TDK, our basic philosophy “Advance to Zero Defects” is being advanced through the following focal
strategies.

(1) Strengthened design development processes
In its quest for zero defects, TDK thinks it is necessary to build product-manufacturing systems capable ofturning out 100% good products in design activities. More specifically, steps are taken to define risks prone tooccur in each process at an early stage, thereby creating and applying an upstream management type quality
assurance system to eliminate such problems at the design phase.

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Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

(2) Strengthened product manufacturing processes
Sustainability
Management

Environment

Society

GovernanceTo achieve “Zero Defect Quality,” product design must be accompanied by worksite competence to establish
reproducible manufacturing processes that eliminate variations. The main aspects that result in quality variations
are “Equipment” and “Operations.” Variations caused by equipment were reduced by the introduction of the“Equipment Variation Assessment Method.” Variations caused by operations were addressed by the “Cocreation Challenge Activities” implemented as a small group activity. Along with this, steady endeavors to raise
quality awareness and furnish quality education through small group activities are mustered to forge and upholda “Quality First” corporate organization and culture.
TDK continues to enhance its engineering and Monozukuri power with further strengthening of its design
development and product manufacturing processes. This is all part of the company’s relentless push to supply
customers with higher quality products in more timely fashion.

(3) Strict compliance for quality assurance
External Evaluation/ Status of inclusionin the ESG Index

Search / Index

We strive to fulfill our social responsibilities with high ethical standards in conducting corporate activities incompliance with laws and social norms. Toward this end, we continue working to improve product quality
through the pursuit of zero defects, try to foster an awareness of what it means to place top priority on quality,and perform checks through compliance audits for quality.

(4) Responses to product security
In recent years, there have been incidents of new types of problem relating to IoT products that connect tonetworks including not just harm caused by cyber-attacks that exploit vulnerabilities via networks such as leaksof handled data or data tampering but also the use of hacked devices by attackers to cause harm.
In light of the circumstances, TDK implements countermeasures in our IoT products according to the productfunctions, features, sales format, and other conditions. For example, it is necessary to take into consideration
security in various stages such as using secure development methods and function safety structures from thecomponent purchasing and production processes to the design stage, and after products are sold, maintenancemethods such as firmware updates throughout operation and maintenance of applications that are installed onuser devices.
Security measures for IoT products will be an essential technology for the coming era of digital transformation,
and TDK has positioned IoT product security as an issue of product quality. In cooperation with relevant
Functions, TDK has established implementation structures and rules to respond to cyber security issues
including incidents involving TDK IoT products and will strive to provide products that gain the trust andconfidence of customers.

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Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment(5) TDK’s continuous implementation of quality education to employees
Learning lessons from a past humidifier accident, TDK regularly implements education for all employees of the
TDK Group to raise their awareness of the top priority that must be given to product safety and quality. The
content of videos used as materials in this educational program is regularly updated to take account of incidents
occurring and requirements in the market.
In addition, to advance the program globally, TDK is promoting expansion in terms of its availability in multiple
languages and various methods of transmission.
Related link
Message from General Manager of Quality Assurance HQ(Pursuit of Zero-Defect Product Quality)

Prevention and Control of Exposure to Hazardous Substances in Products
To prevent and control exposure to hazardous substances that originate with our products and that could
threaten people’s health and the environment, in 2004 TDK introduced an Environmental Product Quality
Management system that is operated under our Quality Management System (QMS).
To clarify chemical substances that should be prohibited from our products or identified, TDK has compiled inhouse standards based on related industrial standards, such as the International Electrotechnical Commission’s
IEC 62474 (Material Declaration for Products of and for the Electrotechnical Industry) and the Global Automotive
Stakeholder Group’s Global Automotive Declarable Substance List.
As a components manufacturer in the middle of the supply chain, we implement this system thoroughly forprevention and control at each of these stages purchasing, manufacturing, and selling.

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Environmental Product Quality Management overview

Purchasing (1) — Green procurement
We established the TDK Chemical Substance Contained for Product Standards to ensure that no regulated
chemical substances are contained in our products. We also established the TDK Green Procurement
Standards, requiring of suppliers that materials, parts, and packaging contain no regulated chemical
substances.
In addition, we request suppliers to report chemical substances contained in their products that should be
identified, including notification to them of information on substances of very high concern in the European
Union’s Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) regulation.
Related link
The TDK Green Procurement Standards

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Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Purchasing (2) — Incoming inspection
TDK carefully audits information provided by suppliers regarding chemical substances contained in materials,
parts, and packaging, to verify compliance with the TDK Chemical Substance Contained for Product Standards.
To prevent the possibility of regulated chemical substances being present due to human error or other causes, in
response to the risk level, TDK measures the amount of specific chemical substances contained in procured
products through analytic tests conducted at the time of acceptance and prevents regulated chemical
substances from entering the manufacturing process. Incidentally, the definition of risk level, frequency ofmeasurements, and so on are continuously being revised based on performance.

Manufacturing (1) — Environment-conscious design (ecodesign) and product assessment
As an industrial manufacturer, our basic approach to protecting the environment is to carefully assess all
aspects of a product in the design and development stage. We believe that it is at this stage that a product’s
effect in reducing the environmental load, in other words, its contribution to the goal of sustainable development
and the circular society, is decided.
Environmental considerations are a key aspect of elevating quality. We see environment-conscious design andproduct assessment as a way to prevent later claims and complaints. In each of the various processes fromprocurement of parts and materials, to manufacturing, distribution, usage, and disposal, we identify elementsthat have particular bearing on the environment, and we promote the development of new and sometimes
revolutionary technologies to realize improvements.

Manufacturing (2) — Preventing misuse, mix-ups and contamination
TDK has a framework in place to ensure that the use of banned substances is not tolerated, and to minimize therisk of misuse, mixing (including migration through contact, etc.), and contamination at mass production sites,such as in manufacturing processes, or at storage areas or warehouses. The measures taken consist of careful
identification and control, separation, the establishment of procedures and standards, first-in and first-out
practices, and controls for warehouse acceptance and dispatching.
In processes involving such equipment as solder tanks, where there is a possibility of contamination, we control
lead levels using simplified test methods that have been developed jointly with solder manufacturers.

Selling (1) — Preventing shipment of non-compliant products
TDK supplies electronic components to customers in a wide range of industries, including not only the electricand electronic equipment business, in which the RoHS Directive is applied, but also the automotive, medical
device, and other industries, and we have to meet various legal and customer requirements. In the case of the
RoHS Directive, some customers desire products in compliance with the directive, and some customers notmarketing in the European Union request products not conforming to the directive for the purpose of, forexample, securing a higher level of product reliability.
To prevent non-compliant products from being shipped erroneously, we have registered RoHS Directive
compliance data for all of the products in our sales management computer system. This system automaticallychecks orders against customer specifications both at the time of order acceptance and when issuing shipping
instructions. When a product that does not comply with the RoHS Directive is to be shipped, an electronic“customer confirmation received” form must be completed before the product can be shipped.

Selling (2) — Information disclosure
TDK has in place a framework for disclosing information on chemical substances contained in its products thatis tied to our efforts to ensure the non-use of chemical substances that TDK has banned. To respond promptly
and accurately to inquiries from customers on chemical substances contained in products, we have
implemented groupware to consolidate the management of processes extending from acceptance of customer
inquiries by the sales departments to providing replies by the technical departments.

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Sustainability | Governance

Governance Data

CONTENTS

Editorial Policy

GovernanceCategory

Item

Unit

FY2019FY2020

Number of directors

Message fromthe President
and CEO

Men

Persons

Women
Outside directors

CPSO
Message

All you need toknow about TDK’s
sustainability!

Women ratio%

Number of audit & supervisoryboard members
Man
Executives

Persons

Women
Outside audit & supervisoryboard members
Women ratio

Sustainability
Management%

Number of corporate officers
Men

Persons

Women

Environment

Society

Non-Japanese

7

6

7

6

0

0

1

1

1

3

3

3

3

3

0

0

14.3

12.5

14.3

4

5

5

5

5

4

4

4

4

4

0

1

1

1

1

2

3

3

3

3

0

20

20

20

20

17

18

19

18

18

17

18

19

18

18

0

0

0

0

0

8

8

9

0

0

0

0

Number of meetings

Times

13

13

14

14

14

97

100

97

100

98

100

97

100

100

100

Times

15

14

14

14

15

%

100

97

100

100

100

315

268

497

454

390

46

55

48

48

52

57

58

61

62

62

24

30

35

36

42

%

Outside directors
Audit & supervisory board
members(excluding outside audit &supervisory board members)

Search / Index

7

7

Directors (excluding outside
directors)

Remuneration

7

0

Attendance ratio of outside audit& supervisory board members

External Evaluation/ Status of inclusionin the ESG Index

8

6

Number of meetings

Board of Audit &Supervisory

FY2023

7%

Attendance ratio of outside audit& supervisory board members

Governance

FY2022

7

Women ratio

Attendance ratio of outside
directors

Board ofDirectors

FY2021

7

Millionsof yenOutside audit & supervisory board
members

Compliance
Category

Item

Unit

FY2019FY2020

FY2021

FY2022

FY2023

Help Lines

Number of consultations and reports to help
lines

Numbers

115

46

54

79

141

Business
EthicsNumber of instances of material non-compliancewith TDK Code of Conduct

Numbers

0

0

0

0

0

Political
Contributions

Total amount of political contribution (Japan)

Millionsof yen

0

0

0

0

0

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Supply Chain
Category

Unit

Number of manufacturing sites coveredby CSR self-checks

Editorial Policy

Message fromthe President
and CEO

Item

Environment

Responsible
Sourcing ofMinerals

80

100

100

100

100

78

79

80

80

%

100

100

100

100

100

Site

5

5

6

5

10

Person

253

303

303

333

374

%

7

7.3

6.6

5.8

5.6

%

89.8

93.8

95.9

96.8

95.0

Company

81

73

78

68

61

%

100

100

100

100

100

CSR-compliant supplier ratio

%

94.4

96.1

98.0

99.0

100

Ratio of suppliers confirmed conflictfree*3

%

92.6

93.1

94.5

93.6

86.5

Number of conflict minerals survey*4

Number

2,381

2,423

2,832

2,810

3,167

Number of manufacturing sites
performed CSR voluntary audits by thirdparty organizations% of A rank customers

Sustainability
Management

FY202380

81% of customers covered by thesatisfaction evaluation*1

Initiatives as a
Buyer

FY202279100*2All you need toknow about TDK’s
sustainability!

FY202178%

Number of employees participated in
CSR internal auditor training(accumulated)

CPSO
Message

FY202081

Site

Number of manufacturing sites coveredby labor, human rights and ethics risk
assessment
Initiatives as a
Supplier

FY2019Site

Number of dispach companies coveredby CSR self check (dispatch companies
used by manufacturing sites in high-riskcountries of Asia)*1 % of sales amount (consolidated)*2 % of customers who evaluated their satisfaction as “A rank” (fully satisfied), calculated by aggregating satisfaction evaluations provided by customers*3 The target mineral is 3TG.
*4 Number of responses that were generated by TDK Corporation

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

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Sustainability
CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

External Evaluation / Status of inclusion in the ESG Index
TDK again named among Clarivate Top 100 Global
Innovators

Recognition by Investors and Rating Agencies

Recognition by Investors and Rating Agencies
ESG investment and socially responsible investment (SRI), which consider not only financial aspects, but also
investment that takes into consideration social aspects including environmental initiatives, is spreading,particularly in Europe and the U.S. TDK is included in the following indexes.
• FTSE4 Good Index Series
An index provided by FTSE Russell (based in the U.K.) that was designed to measure theperformance of companies that implement strong ESG measures.

• FTSE Blossom Japan Index
An index provided by FTSE Russell (based in the U.K.) that was designed to measure theperformance of Japanese companies with outstanding ESG responses.

Environment

Society• FTSE Blossom Japan Sector Relative Index
An index provided by FTSE Russell (U.K.), designed to be sector neutral, reflecting theperformance of Japanese companies with outstanding ESG responses.
FTSE Blossom Japan Sector Relative Index (Link to external site)

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index• MSCI ESG Leaders Indexes
An index provided by MSCI (based in the U.S.) that selects companies with outstanding
ESG evaluation.

• MSCI Japan ESG Select Leaders Index
An index provided by MSCI (based in the U.S.) that selects Japanese companies withoutstanding ESG performance.

• MSCI Japan Empowering Women (WIN) Select Index
An index provided by MSCI (based in the U.S.) that selects Japanese companies withexcellent gender diversity.

THE INCLUSION OF TDK CORPORATION IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOTCONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF TDK CORPORATION BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE
EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

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• CDP Climate Change: ACONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment• CDP Water Security: A (three consecutive years)
TDK received the above rating out of eight levels (A, A-, B, B-, C, C-, D, and D-) from CDP,
an international non-profit organization that addresses environmental issues such as climatechange.

• CDP Supplier Engagement Rating: Leaderboard (three consecutive years)
In the Supplier Engagement Rating, the answers provided to the CDP Climate Change
Program are used to evaluate the companies by items related to governance, targets,
estimation of greenhouse gas emissions in their corporate value chain (SCOPE3), andsupply chain engagement. TDK was praised because it promotes environmental activities
working with suppliers and discloses SCOPE3 emissions.

• S&P/JPX Carbon Efficient Index
An index jointly developed by S&P Dow Jones Indices and the Tokyo Stock Exchange,
designed to measure the performance of companies in the Tokyo Stock Price Index (TOPIX)
while overweighting or underweighting those companies that have lower or higher levels ofcarbon emissions per unit of revenue.

• Sompo Sustainability Index
An index compiled based on the results of the Buna-no-Mori Environmental Questionnaireand ESG Management Survey conducted by SOMPO Risk Management Inc.

Society

TDK again named among Clarivate Top 100 Global Innovators
Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

TDK Corporation was recently recognized as a Clarivate Top 100 Global
Innovator™ 2023 for its innovation and leadership in digitaltransformation (DX) and energy transformation (EX) for the smart society.
Since 2012 the Top 100 Global Innovators has identified companies atthe pinnacle of the global innovation landscape by measuring theideation culture that produces patents and puts them at the forefront. In
a record nine years on the prestigious list, this recognition further
cements TDK as an industry leading solution provider and ecosystem
partner for customers designing and building transformational
technologies.
Starting with more than 14,000 organizations, Clarivate selects the mostinnovative companies based on multiple criteria. It includes the amountof patents granted in the past five years, as well as the downstream
influence of an invention on other companies’ patent applications,
success rate, globality, and breadth of technical field.

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Sustainability | Search / Index

ESG Research

CONTENTS

Editorial Policy

CommonTop Commitment
Corporate Philosophy and Sustainability Vision

Message fromthe President
and CEOTDK Group’s Materiality
Sustainability Promotion Structure
Efforts to Achieve the SDGs

CPSO
Message

Stakeholder Engagement

All you need toknow about TDK’s
sustainability!

EnvironmentState of Initiatives

Environmental Management

TDK has established the TDK Group Occupational
Health/Safety and Environmental Charter as theenvironmental policy of the entire TDK Group with theaim of contributing to the sustainable development ofsociety. As basic plans for specific activities based on
this charter, we have formulated the TDK
Environmental Vision 2035 and TDK Environment,
Health and Safety Action 2025 action plans and aremaking efforts to put them into practice. In addition,
we have acquired ISO 14001 certification (aninternational standard relating to environmental
management systems) at all manufacturing sites.

Sustainability
Management

Fund Procurement through ESG Finance

Environment

Society

Climate Change

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index
Pollution & Resources

Water Security

Location on “Sustainability” website
Energy Transformation (EX)Environmental Policy and Environmental Vision
Environmental Management System
Goals and Achievements
Facilities with ISO14001 and ISO50001 Certification
Social and Environmental Consideration at
Manufacturing Sites
Environmental Data

In the TDK Group Occupational Health/Safety andEnvironmental Charter, we clearly state that we will
strive to transition to a decarbonized society andpromote the use of renewable energy. And in the TDK
Environmental Vision 2035 and TDK Environment,
Health and Safety Action 2025 action plans, whichwere compiled based on this charter, we stipulate
goals relating to climate change, such as the target of
improving CO2 emission intensity. TDK is promoting
initiatives toward the achievement of these goals. We
have also identified energy transformation (EX) as amateriality issue and are conducting activities
accordingly. Furthermore, in line with the frameworkof the Task Force on Climate-related Financial
Disclosures (TCFD), we disclose information on ourefforts at TDK to combat climate change.

Environmental Policy and Environmental Vision

In the TDK Group Occupational Health/Safety andEnvironmental Charter, we clearly state that we will
strive to use resources and energy efficiently andeffectively in production activities, and that we will
recycle effectively and produce no waste. And in the
TDK Environmental Vision 2035 and TDK
Environment, Health and Safety Action 2025 actionplans, which were compiled based on this charter, we
stipulate goals relating to the effective use ofresources, such as the target of improving waste
intensity. TDK is promoting initiatives toward theachievement of these goals. Indeed, from theperspective of the effective use of resources, TDK is
promoting efforts to curb the discharge of waste itself
too.

Environmental Policy and Environmental Vision

In the TDK Group Occupational Health/Safety andEnvironmental Charter, we clearly state that we will
strive to use resources efficiently and effectively in
production activities. And in the TDK Environmental
Vision 2035 and TDK Environment, Health and Safety
Action 2025 action plans, which were compiled
based on this charter, we stipulate goals relating towater resources, such as the target of improving
water withdrawal intensity. TDK is promoting
initiatives toward the achievement of these goals.
Moreover, we conduct surveys relating to water risks
in each country and region and endeavor tounderstand and manage water risks at manufacturing
sites.

Environmental Policy and Environmental Vision

191

Goals and Achievements
Energy Transformation (EX)Climate Change Initiatives
Third-Party Verification
Third-Party Review of Environmental Performance
Data
Environmental Data

Goals and Achievements
Environmental Management System
Effective Use of Resources
Reduce Risks of Chemical Use

Environmental Data

Goals and Achievements
Water Resources Conservation

Environmental Data

Sustainability Report 2023

For some time now TDK has been promoting suchactivities as the introduction of product assessment
to evaluate the impact of products on theenvironment throughout their entire life cycle and thecertification of excellent environment-conscious
products. In addition to these activities, we are also
promoting activities to reduce CO2 emissions byproducts and have compiled guidelines on thecalculation of product contributions as criteria toquantify the reduction of CO2 emissions by products
and know-how as environmental contributions.

Environment-Conscious Products

Sustainable Procurement

Green Procurement

In our Purchasing Policies, we clearly specify theneed for green procurement. TDK is promoting green
procurement with the aims of contributing to alightening of the environmental load and giving
priority to the procurement of purchased productsthat enable us to fulfill our social responsibility.

Environmental Policy and Environmental Vision

Biodiversity

In the TDK Group Occupational Health/Safety andEnvironmental Charter, we clearly state that we will
work on the conservation of the global environment,
including biodiversity. TDK also agrees with the
Guidelines for Action by the Electrical and Electronics
Industries concerning Biodiversity Conservation andconducts activities to protect biodiversity andecosystem services.

Society

State of Initiatives

Location on “Sustainability” website

CONTENTS
Product Stewardship / Environment-Conscious
Products

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Climate Change Initiatives

Third-Party Review of Environmental Performance
Data

Procurement (Purchasing Principles, Purchasing
Policies, TDK Supplier Code of Conduct)

Approach to Biodiversity

Code of Conduct
Respect for Human Rights

Labor Practices

Based on the TDK Code of Conduct, we areendeavoring to build an environment in which
employees with diverse personalities can display theirabilities. Among other things, TDK respects diversity
in the employment and utilization of humanresources, promotes a work-life-balance, andorganizes human-resource development programs.

Social Data
Diversity & Inclusion
Talent Attraction & Retention
Human Resources Development
Social and Environmental Consideration at
Manufacturing Sites

Society

Governance

Lifecycles and Product Assessment

TDK has formulated the TDK Global Human
Resources Strategy and implements various
measures, such as human-resource development
systems, globally with the aim of building anenvironment in which diverse Group companies andoutstanding human resources can display theirabilities as members of the TDK Group. Furthermore,
we have identified human resource management as amateriality issue and are conducting initiatives
accordingly.

Global Human Resources Strategy

TDK has formulated and is promoting the TDK
Diversity and Inclusion Policy. Moreover, we haveidentified human resource management, which is in
our materiality, as one of our themes and are
conducting initiatives accordingly.

Diversity & Inclusion

Diversity & Inclusion

Talent Attraction & Retention

Talent Attraction & Retention

Recognizing the importance of retaining highly
motivated employees in order to become a moreinnovative and resilient company, TDK promotes thedevelopment of various measures and theimprovement of its workplace and systems.
TDK has formulated the TDK Group Policy on Human
Rights and, based on the framework of the UN
Guiding Principles on Business and Human Rights, ispromoting initiatives for the correct understanding,recognition, and improvement of human rights issues
not only in business activities within the TDK Group
itself but throughout the entire value chain.

Respect for Human Rights

Human Resources Development

External Evaluation/ Status of inclusionin the ESG Index

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Respect for Human Rights

Occupational Health and Safety

TDK has formulated the TDK Group Occupational
Health/Safety and Environmental Charter andengages in various efforts to form safe and healthy
workplace environments, including organizational
improvements and operations to make the health andsafety management system function effectively andrisk reduction activities, such as risk assessment andeducation and training.

192

Human Resources Development
HR Management

Social Data

HR Management
Social Data

Health and Productivity Management
Social Data

Code of Conduct
TDK Group Policy on Human Rights
TDK Supplier Code of Conduct
Health and Safety
Social Data
Social and Environmental Consideration at
Manufacturing Sites
Health and Productivity Management
Facilities with ISO45001 Certification

Sustainability Report 2023

CONTENTS
Customer Relationship Management

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Customer Satisfaction

Quality Management

Corporate Citizenship and Philanthropy

Based on TDK’s Basic Concept of Contributing toSociety, we are promoting our own original social
contribution activities.

Social Contribution Activities

GovernanceState of Initiatives

Location on “Sustainability” website

Based on the TDK Basic Policy on Corporate
Governance, we are continuously trying to enhance
our corporate governance by building structures andmechanisms.

Corporate GovernanceCorporate GovernanceCompliance / Anti-Corruption

We are endeavoring to foster a sincere, fair, andtransparent corporate culture and to build a global
compliance management setup with the aim of
responding to the trust and expectations ofcustomers and society.

Governance Data
Code of Conduct
Corporate Ethics and Compliance
Policy on Relations with Business Partners
Governance Data
Code of Conduct

Business Ethics

Based on the TDK Code of Conduct, we have built a
global corporate ethics management system andconduct efforts to disseminate awareness among
directors and employees and to encourage apt
behavior, including the establishment of a mechanism
by which employees can report internally or consult
on problems relating to corporate ethics
anonymously.

Risk Management

Risk Management

To respond to risks occurring in our businessactivities, TDK has established various committees
under the Executive Committee and is compilingcountermeasures and responses to issues. In
addition, we have identified opportunity and risk
management as a materiality issue and are
conducting initiatives accordingly.

Supply Chain Management

TDK has identified supply chain management as amateriality issue and is promoting initiatives that takeaccount of society and the environment not only at
TDK’s manufacturing sites but throughout the entire
supply chain, including suppliers. TDK is a member ofthe Responsible Business Alliance (RBA). By
implementing self-assessments, audits, and so on inaccordance with the RBA’s standards, we evaluate
the state of implementation of CSR activities at our
manufacturing sites and try to make continuous
improvements. In addition, regarding suppliers, we
promote not only sustainable procurement activities
but also responsible mineral procurement.

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

TDK is promoting activities with the aim of becoming
a company that is trusted by customers. Moreover,
we have identified quality management, which is in
our materiality, as one theme and are conducting
initiatives accordingly.

Corporate Ethics and Compliance

Opportunity and Risk Management

Supply Chain Management
Social and Environmental Consideration at
Manufacturing Sites
Sustainable Procurement
Procurement (Purchasing Principles, Purchasing
Policies, TDK Supplier Code of Conduct)
Respect for Human Rights
Responsible Sourcing of Minerals
Governance Data

Tax Transparency

TDK has established and is promoting our Global Tax
Policy.

Tax Strategy

Information Security / Privacy Protection

Based on the Basic Policy on Information Security,
TDK has built a global information security
management setup and is promoting activities withthe aim of maintaining and improving information
security.

Information Security

Quality Assurance

TDK is promoting Group-wide activities towardrealizing our basic philosophy of advancing to zerodefect. Furthermore, we have identified quality
management as a materiality issue and are
conducting initiatives accordingly.

193

Quality Assurance
Quality Management

Sustainability Report 2023

Sustainability | Search / Index

GRI Standards Table

CONTENTS

Editorial Policy

This sustainability website refers to GRI Sustainability Reporting Standards.

General Disclosures
Message fromthe President
and CEOGRI Items

Disclosure

Location

The organization and its reporting practices

CPSO
Message

2-1

Organizational details

About TDK TDK at a Glance (Homepage)2-2

Entities included in the organization’s sustainability reporting

About TDK TDK at a Glance (Homepage)

2-3

Reporting period, frequency and contact point

About “Sustainability” website

2-4

Restatements of information

Mentioned in the notes on the relevant pages.

2-5

External assurance

About “Sustainability” website

All you need toknow about TDK’s
sustainability!

Third-Party Review of Environmental Performance Data
Third-Party Verification

Activities and workers
About TDK TDK at a Glance (Homepage)

Sustainability
Management

TDK Worldwide (Homepage)
2-6

Activities, value chain and other business relationships

Sales by Region (Homepage)
Sales by Segment (Homepage)
Sustainable Procurement

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

2-7

Employees

2-8Workers who are not employees

About TDK TDK at a Glance (Homepage)
Social Data

Governance

GRI 2: General
Disclosures 2021

Corporate Governance

2-9

Governance structure and composition

2-10

Nomination and selection of the highest governance body

Corporate Governance

2-11

Chair of the highest governance body

Corporate Governance

2-12

Role of the highest governance body in overseeing themanagement of impacts

Corporate Governance

2-13

Delegation of responsibility for managing impacts

2-14Role of the highest governance body in sustainability reporting

Governance Data

Sustainability Promotion Structure
Corporate Governance
TDK’s Materiality
Sustainability Promotion Structure

Search / Index

Environmental Management System
Health and Safety

2-15

Corporate Governance

Conflicts of interest

Code of Conduct (Homepage)
Corporate Governance

2-16

Sustainability Promotion Structure

Communication of critical concerns

Corporate Ethics and Compliance
Risk Management

2-17

Collective knowCollective knowledge of the highest governancebody

Sustainability Promotion Structure

2-18

Evaluation of the performance of the highest governance body

Corporate Governance

2-19

Remuneration policies

Corporate Governance

2-20

Process to determine remuneration

Corporate Governance

2-21

Annual total compensation ratio

Strategy, policies and practices
2-22Statement on sustainable development strategy

194

Message from the President and CEO
CPSO Message

Sustainability Report 2023

The TDK Group Occupational Health/Safety and Environmental
Charter

CONTENTSTDK Group Policy on Human Rights
2-23

Social Contribution Activities

Policy commitments

Sustainable Procurement
TDK Group Policy on Responsible Sourcing Minerals

Editorial Policy

Quality Assurance
Environment
Health and Safety

Message fromthe President
and CEO

Respect for Human Rights
2-24

Embedding policy commitments

Social Contribution Activities
Sustainable Procurement
Responsible Sourcing of Minerals

CPSO
Message

Quality Assurance
Risk Management
2-25

Processes to remediate negative impacts

Respect for Human Rights

2-26

Mechanisms for seeking advice and raising concerns

Corporate Ethics and Compliance

2-27Compliance with laws and regulations

Corporate Ethics and Compliance

2-28

Membership associations

Sustainability Promotion Structure

Corporate Ethics and Compliance

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Stakeholder engagement
2-29

Approach to stakeholder engagement

Stakeholder Enagagement

2-30

Collective bargaining agreements

Social Data

Environment

Material Topics
GRI Items

Society
GRI 3: Material
Topics 2021

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

Disclosure

Location

3-1

Process to determine material topics

Materiality Identification Process

3-2

List of material topics

TDK’s Materiality

3-3Management of material topics

TDK’s Materiality

Economic
GRI Items

GRI 201: Economic
Performance 2016

GRI 202: Market
Presence 2016
GRI 203: Indirect
Economic Impacts
2016
GRI 204:
Procurement
Practices 2016

GRI 205: Anticorruption 2016

GRI 206: Anticompetitive
Behavior 2016

Disclosure

Location

201-1

Direct economic value generated and distributed

201-2

Financial implications and other risks and opportunities due toclimate change

Investor Relations Securities Report (Homepage)

201-3

Defined benefit plan obligations and other retirement plans

Investor Relations Securities Report (Homepage)

201-4

Financial assistance received from government

202-1

Ratios of standard entry level wage by gender compared to local
minimum wage

202-2

Proportion of senior management hired from the local community

203-1

Infrastructure investments and services supported

203-2

Significant indirect economic impacts

204-1

Proportion of spending on local suppliers

205-1

Operations assessed for risks related to corruption

Corporate Ethics and Compliance

205-2

Communication and training about anti-corruption policies andprocedures

Corporate Ethics and Compliance

205-3

Confirmed incidents of corruption and actions taken

(N/A)

206-1

Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices

(N/A)

195

Social Contribution Activities

Sustainability Report 2023

CONTENTSGRI 207: Tax 2019

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Tax Strategy

Tax governance, control, and Risk Management

Tax Strategy

207-3

Stakeholder engagement and management of concerns related
to taxTax Strategy

207-4

Country-by-country reporting

GRI Items
GRI 301: Materials
2016

GRI 302: Energy
2016

GRI 303: Water
and Effluents 2018

Society

GovernanceApproach to tax

207-2

Environmental

Sustainability
Management

Environment

207-1

GRI 304:
Biodiversity 2016

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

GRI 305: Emissions
2016

GRI 306: Waste
2020

GRI 308: Supplier
Environmental
Assessment 2016

Disclosure

Location

301-1

Materials used by weight or volume301-2

Recycled input materials used

301-3

Reclaimed products and their packaging materials

302-1

Energy consumption within the organization

302-2

Energy consumption outside of the organization

302-3

Energy intensity

302-4

Reduction of energy consumption

302-5

Reductions in energy requirements of products and services

303-1

Interactions with water as a shared resource

303-2

Management of water discharge-related impacts

303-3

Water withdrawal

Water Resources Conservation

303-4

Water discharge

Effective Use of Resources

303-5

Water consumption

Water Resources Conservation

304-1

Operational sites owned, leased, managed in, or adjacent to,protected areas and areas of high biodiversity value outside
protected areas

304-2

Significant impacts of activities, products and services on
biodiversity

304-3

Habitats protected or restored

304-4

IUCN Red List species and national conservation list species
with habitats in areas affected by operations

305-1

Direct (Scope 1) GHG emissions

305-2

Energy indirect (Scope 2) GHG emissions

305-3

Other indirect (Scope 3) GHG emissions

305-4

GHG emissions intensity

305-5

Reduction of GHG emissions

305-6

Emissions of ozone-depleting substances (ODS)

A History of TDK’s Environmental Activities

305-7

Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant
air emissions

Environmental Data

306-1

Waste generation and significant waste-related impacts

Effective Use of Resources

306-2

Management of significant waste-related impacts

Effective Use of Resources

306-3

Waste generated

Environmental Data

306-4

Waste diverted from disposal

Environmental Data

306-5

Waste directed to disposal

Environmental Data

308-1

New suppliers that were screened using environmental criteria

Sustainable Procurement

308-2

Negative environmental impacts in the supply chain and actions
taken

Sustainable Procurement

Environmental Data
Climate Change Initiatives
Environmental Data

Climate Change Initiatives
Environmental Data

Water Resources Conservation
Environmental Data
Effective Use of Resources
Environmental Data

Environmental Policy and Environmental Vision

Climate Change Initiatives
Environmental Data
Climate Change Initiatives
Environmental Data
Climate Change Initiatives
Environmental Data
Climate Change Initiatives
Climate Change Initiatives
Environmental Data

196

Sustainability Report 2023

CONTENTS

SocialGRI Items

Editorial Policy

Message fromthe President
and CEO

GRI 401:
Employment 2016

GRI 402: Labor /Management
Relations 2016

CPSO
Message

All you need toknow about TDK’s
sustainability!

GRI 403:
Occupational
Health and Safety
2018

Sustainability
Management

Environment
GRI 404: Training
and Education
2016

Society
GRI 405: Diversity
and Equal
Opportunity 2016

Governance

External Evaluation/ Status of inclusionin the ESG Index

Disclosure

Location

401-1

New employee hires and employee turnover

401-2

Benefits provided to full-time employees that are not provided totemporary or parttime employees

Social Data

401-3

Parental leave

402-1

Minimum notice periods regarding operational changes

403-1

Occupational health and safety management system

Health and Safety

403-2

Hazard identification, risk assessment, and incident investigation

Health and Safety403-3

Occupational health services

Health and Safety

403-4

Worker participation, consultation, and communication on
occupational health and safety

403-5

Worker training on occupational health and safety

Health and Safety

403-6

Promotion of worker health

Health and Safety

403-7

Prevention and mitigation of occupational health and safety
impacts directly linked by business relationships

Health and Safety

403-8

Workers covered by an occupational health and safety
management system

Social Data

403-9

Work-related injuries

Social Data403-10Work-related ill healthSocial Data

404-1

Average hours of training per year per employee

Social Data

404-2

Programs for upgrading employee skills and transition assistanceprograms

Human Resources Development

404-3

Percentage of employees receiving regular performance andcareer development reviews

405-1

Diversity of governance bodies and employees

Social Data

405-2

Ratio of basic salary and remuneration of women to men

GRI 406: Nondiscrimination 2016406-1

Incidents of Incidents of discrimination and corrective actions
taken

GRI 407: Freedomof Association andCollective
Bargaining 2016

407-1

Operations and suppliers in which the right to freedom of
association and collective bargaining may be at risk

Diversity & Inclusion
Human Resources Development
Governance Data
Social Data
Investor Relations Securities Report (Homepage)

Respect for Human Rights

Respect for Human Rights

Search / Index

GRI 408: Child
Labor 2016

408-1

Operations and suppliers at significant risk for incidents of childlaborSocial and Environmental Consideration at Manufacturing Sites
Sustainable Procurement
Responsible Sourcing of Minerals
About TDK TDK Code of Conduct (Homepage)
Respect for Human Rights

GRI 409: Forced orCompulsory Labor
2016

409-1

Operations and suppliers at significant risk for incidents of forced
or compulsory labor

Social and Environmental Consideration at Manufacturing Sites
Sustainable Procurement
About TDK TDK Code of Conduct (Homepage)

GRI 410: Security
Practices 2016

410-1

Security personnel trained in human rights policies or procedures

GRI 411: Rights ofIndigenous
Peoples 2016

411-1

Incidents of violations involving rights of indigenous peoples

413-1

Operations with local community engagement, impact
assessments, and development programs

413-2

Operations with significant actual and potential negative impacts
on local communities

414-1

New suppliers that were screened using social criteria

414-2

Negative social impacts in the supply chain and actions taken

GRI 413: Local
Communities 2016

GRI 414: SupplierSocial Assessment
2016

Sustainable Procurement
Respect for Human Rights
Sustainable Procurement
Responsible Sourcing of Minerals

197

Sustainability Report 2023

CONTENTSGRI 415: Public
Policy 2016
GRI 416: Customer
Health and Safety
2016

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

GRI 417: Marketingand Labeling 2016

GRI 418: Customer
Privacy 2016

415-1

Political contributions

Governance Data

416-1

Assessment of the health and safety impacts of product andservice categories

Quality Assurance

416-2

Incidents of non-compliance concerning the health and safety
impacts of products and services

417-1

Requirements for product and service information and labeling

417-2

Incidents of non-compliance concerning product and service
information and labeling

417-3

Incidents of non-compliance concerning marketing communications

418-1

Substantiated complaints concerning breaches of customer
privacy and losses of customer data

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

198

Customer Satisfaction(N/A)
Environment-Conscious Products
Quality AssuranceSustainability Report 2023

Sustainability | Search / Index

SASB Table

CONTENTS

Editorial Policy

Environment
Topic

Message fromthe President
and CEO

CPSO
Message

EnergyManagement

Hazardous Waste Management

Environmental Footprint of Hardware
Infrastructure
All you need toknow about TDK’s
sustainability!

Greenhouse Gas Emissions

Sustainability
Management

Accounting Metric

Code

Response/Location(1) Total energy consumed, (2) percentage grid electricity, (3)percentage renewable

RT-EE-130a.1
TC-SI-130a.1
TC-SC-130a.1

Amount of hazardous waste generated, percentage recycled

RT-EE-150a.1
TC-SC-150a.1

Effective Use of Resources

Number and aggregate quantity of reportable spills, quantity
recovered

RT-EE-150a.2

Environmental Data

(1) Total water withdrawn, (2) total water consumed, percentage ofeach in regions with High or Extremely High Baseline Water Stress

TC-SI-130a.2

Environmental Data

(1) Gross global Scope 1 emissions and (2) amount of total emissions
from perfluorinated compounds

TC-SC-110a.1

Discussion of long-term and short-term strategy or plan to manage
Scope 1 emissions, emissions reduction targets, and an analysis ofperformance against those targets

TC-SC-110a.2

Environmental Data

Environmental Data

Climate Change Initiatives
Environmental Data
Climate Change Initiatives

Social Capital
Topic

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Product Security

Accounting Metric

Description of approach to identifying and addressing data security
risks in products

Code

TC-HW-230a.1

Response/Location
As a response to IoT products
supplied by TDK, we adopt
countermeasures in accordancewith functions, characteristics,
sales pattern, etc.
Quality Assurance (Responses to
product security)

Data Privacy & Freedom ofExpression

Data Security

Description of policies and practices relating to behavioral advertisingand user privacy

TC-SI-220a.1

Information Security

Total amount of monetary losses as a result of legal proceedings
associated with user privacy

TC-SI-220a.3

Information Security(1) Number of data breaches, (2) percentage involving personallyidentifiable information (PII), (3) number of users affected

TC-SI-230a.1

Information Security

Human Capital
Search / Index

Topic

Employee Diversity & Inclusion

Accounting Metric

Code

Response/Location
TDK has compiled and is
promoting a Diversity & Inclusion
Policy.

Percentage of gender and racial/ethnic group representation for (1)management, (2) technical staff, and (3) all other employees

TC-HW-330a.1
TC-SI-330a.3

Percentage of employees that are (1) foreign nationals and (2) locatedoffshore

TC-SI-330a.1
TC-SC-330a.1

Social Data

Employee engagement as a percentage

TC-SI-330a.2

Social Data

Description of efforts to assess, monitor, and reduce exposure of
employees to human health hazards

TC-SC-320a.1

Health and Safety

Diversity & Inclusion
Social Data

Recruiting & Managing a Global &Skilled Workforce

Employee Health & Safety

199

Sustainability Report 2023

CONTENTS

Business Model & Innovation
Topic

Editorial Policy

Accounting Metric

Percentage of products by revenue that contain IEC 62474 declarable
substances

Code

TC-HW-410a.1
RT-EE-410a.1
TC-SC-410a.1

Message fromthe President
and CEO

CPSO
Message

Percentage of eligible products, by revenue, meeting therequirements for EPEAT registration or equivalent

All you need toknow about TDK’s
sustainability!

TC-HW-410a.2

TDK does not disclose ratios byearnings, but we clarify chemical
substances that are prohibitedfrom being contained in products
or should be declared.
Quality Assurance (Prevention
and Control of Exposure to
Hazardous Substances in
Products)
TDK does not have any productsthat are eligible for EPEAT
registration, but we do compile
environmental labels and conduct
inspections and certificationaccording to our own standards.
Furthermore, in addition to
management in each process of
procurement, design,
manufacturing, and sale, we alsoendeavor to ensure proper
information disclosure regarding
the complete abolition of chemical
substances that TDK prohibits
from being contained in products.
Environment-Concious Products

Sustainability
Management

Environment

Response/Location

Quality Assurance (Prevention
and Control of Exposure to
Hazardous Substances in
Products)
Product Lifecycle Management

Society
Percentage of eligible products, by revenue, meeting ENERGYSTAR® criteria

TC-HW-410a.3
RT-EE-410a.2

Governance

TDK does not have any productsthat are eligible for ENERGYSTAR
registration, but we do compile
environmental labels and conduct
inspections and certificationaccording to our own standards.
Furthermore, in addition to
management in each process of
procurement, design,
manufacturing, and sale, we alsoendeavor to ensure proper
information disclosure regarding
the complete abolition of chemical
substances that TDK prohibits
from being contained in products.
Environment-Concious Products
Quality Assurance (Prevention
and Control of Exposure to
Hazardous Substances in
Products)

External Evaluation/ Status of inclusionin the ESG Index

Search / Index
Weight of end-of-life products and e-waste recovered, percentage
recycled

TC-HW-410a.4

Since TDK does not sell final
products, we do not engage inthe retrieval of used products.
However, we are conducting
various activities, such as efforts
to reduce wasted materials, suchas lead and copper, in the
production process andadvocating the goal of reducing
the environmental load
throughout a product’s lifecycle.
Environmental Policy andEnvironmental Vision

Percentage of Tier 1 supplier facilities audited in the RBA Validated
Audit Process (VAP) or equivalent, by (a) all facilities and (b) high-risk
facilities

TC-HW-430a.1

Supply Chain Management

TDK joined the RBA in 2020 and,in compliance with RBA
standards, makes efforts toward
continuous improvement in thetwo stages of self-assessment
and auditing. Furthermore, as asupplier selling products tocustomers, TDK implements selfassessment, auditing, andtraining according to RBA
standards at its manufacturing
sites as well.
Sustainable Procurement

Tier 1 suppliers’ (1) non-conformance rate with the RBA Validated
Audit Process (VAP) or equivalent, and (2) associated corrective
action rate for (a) priority non-conformances and (b) other nonconformances

200

TC-HW-430a.2

Social and Environmental
Consideration at Manufacturing
Sites

Sustainability Report 2023

CONTENTS

Materials Sourcing

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Description of the management of risks associated with the use ofcritical materials

Responsible Sourcing of Minerals

Leadership & Governance
Topic
Business Ethics

Accounting Metric
Description of policies and practices for prevention of: (1) corruption
and bribery and (2) anti-competitive behavior

Environment

Code
RT-EE-510a.1

Response/Location
Corporate Ethics andCompliance

Activity Metrics
Accounting MetricSustainability
Management

TC-HW-440a.1
RT-EE-440a.1
TC-SC-440a.1

TDK has formulated a policy
relating to responsible sourcingof minerals and, with regard tomineral problems relating not
only to conflicts but also to risks
and wrongdoings involving
human rights violations,environmental destruction, etc., ispromoting responsible sourcingof minerals throughout the entire
supply chain.

Code

Number of units produced by product category

TC-HW-000.A

Area of manufacturing facilities

TC-HW-000.B

Percentage of production from owned facilities

TC-HW-000.C

Response/Location
TDK does not disclose the number of units produced, but we do disclose sales byproduct.
FY March 2023 Financial Results (Sales by Product) page 5/34
TDK does not disclose area, but we do disclose manufacturing site information here.
TDK Worldwide-

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

201

Sustainability Report 2023

Sustainability | Search / Index

Search by SDGs

CONTENTS

TargetEditorial Policy

Location

1. End poverty in all its forms everywhere
2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture

Message fromthe President
and CEOTDK Group’s Approach to the SDGs and its Activities
3. Ensure healthy lives and promote well-being for all at all ages

Contribution to the SDGs through Products
Digital Transformation (DX)

4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

CPSO
Message

Social Contribution Activities
TDK Group’s Approach to the SDGs and its Activities
Global Human Resources Strategy
Human Resources Development

5. Achieve gender equality and empower all women and girls

Diversity & Inclusion

All you need toknow about TDK’s
sustainability!

Social Data
Governance Data
Environmental Policy and Environmental Vision

Sustainability
Management

6. Ensure availability and sustainable management of water and sanitation for all

Environmental Management System
Water Resources Conservation
TDK Group’s Approach to the SDGs and its Activities
Contribution to the SDGs through Products

Environment

7. Ensure access to affordable, reliable, sustainable and modern energy for all

Energy Transformation (EX)Opportunity and Risk Management
Climate Change Initiatives
TDK Group’s Approach to the SDGs and its Activities
Digital Transformation (DX)

Society

HR Management
Supply Chain Management
Respect for Human Rights

Governance

8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent
work for all

Social and Environmental Consideration at
Manufacturing Sites
Sustainable Procurement
Global Human Resources Strategy
Human Resources Development

External Evaluation/ Status of inclusionin the ESG Index

Diversity & Inclusion
Health and Safety
TDK Group’s Approach to the SDGs and its Activities

Search / Index

9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

Contribution to the SDGs through Products
Digital Transformation (DX)
Opportunity and Risk Management

10. Reduce inequality within and among countries
TDK Group’s Approach to the SDGs and its Activities
11. Make cities and human settlements inclusive, safe, resilient and sustainable

Contribution to the SDGs through Products
Energy Transformation (EX)Digital Transformation (DX)202

Sustainability Report 2023

TDK Group’s Approach to the SDGs and its Activities

CONTENTS

Contribution to the SDGs through Products
Energy Transformation (EX)Digital Transformation (DX)
Quality Management

Editorial Policy

Supply Chain Management

12. Ensure sustainable consumption and production patterns

Opportunity and Risk Management
Environmental Policy and Environmental Vision
Climate Change Initiatives

Message fromthe President
and CEO

Water Resources Conservation
Effective Use of Resources
Reduce Risks of Chemical Use
TDK Group’s Approach to the SDGs and its Activities

CPSO
Message

Contribution to the SDGs through Products
Energy Transformation (EX)All you need toknow about TDK’s
sustainability!

Quality Management

13. Take urgent action to combat climate change and its impacts

Opportunity and Risk Management
Environmental Policy and Environmental Vision
Climate Change Initiatives
Environmental Data

Sustainability
Management

14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development
15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests,
combat desertification, and halt and reverse land degradation and halt biodiversity loss

Environmental Policy and Environmental Vision
Approach to Biodiversity
TDK Group’s Approach to the SDGs and its Activities

Environment

Supply Chain Management
Corporate GovernanceSociety

16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all andbuild effective, accountable and inclusive institutions at all levels

Corporate Ethics and Compliance
Respect for Human Rights
Responsible Sourcing of Minerals
Social and Environmental Consideration at
Manufacturing Sites
Sustainable Procurement
TDK Group’s Approach to the SDGs and its Activities

Governance

Energy Transformation (EX)
17. Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development

External Evaluation/ Status of inclusionin the ESG Index

Digital Transformation (DX)
Supply Chain Management
Stakeholder Engagement
Social Contribution Activities

Search / Index203

Sustainability Report 2023

Sustainability | Search / Index

Search by Stakeholder

CONTENTS

Editorial Policy

Shareholders / Investors
Stakeholder Engagement
Corporate Philosophy and Sustainability Vision

Message fromthe President
and CEO

Corporate Governance

Customer

CPSO
Message

Stakeholder Engagement
Quality Assurance
Customer Satisfuction

All you need toknow about TDK’s
sustainability!

Governance Data

Suppliers

Sustainability
Management

Stakeholder Engagement
Sustainable Procurement
Responsible Sourcing of Minerals

Environment

Society

Respect for Human Rights
Governance Data

Employee
Stakeholder Engagement
Global Human Resources Strategy

Governance

Human Resources Development
Diversity & Inclusion
Health and Safety

External Evaluation/ Status of inclusionin the ESG Index

Respect for Human Rights
Corporate Ethics and Compliance
Social Data

Search / Index

Community
Stakeholder Engagement
Social Contribution Activities

Government
Stakeholder Engagement
Tax Strategy
Governance Data

Consumers
Stakeholder Engagement
Efforts to Achieve the SDGs

204

Sustainability Report 2023

Sustainability | Search / Index

ESG related Data

CONTENTS

Editorial Policy

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment
Facilities with ISO14001 and ISO50001 Certification
Environmental Data
A History of TDK’s Environmental Activities
Third-Party Verification
Third-Party Review of Environmental Performance Data

SocietySocial Data
Facilities with ISO45001 Certification

Governance
Governance Data

Environment

Society

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

205

Sustainability Report 2023

Sustainability | Search / Index

ESG related Policies

CONTENTS

Editorial Policy

Environment
The TDK Group Occupational Health/Safety and Environmental Charter

Message fromthe President
and CEO

CPSO
Message

All you need toknow about TDK’s
sustainability!

Sustainability
Management

Environment

SocietySociety
TDK Group Policy on Human Rights
Global Human Resources Strategy
TDK Diversity & Inclusion Policy
The TDK Group Occupational Health/Safety and Environmental Charter
Basic Concept of Contributing to Society

Governance
TDK Code of Conduct
TDK Basic Policy on Corporate Governance
TDK’s Purchasing Policies
TDK Supplier Code of Conduct
TDK Group Policy on Responsible Sourcing Minerals
Policy on Relations with Business Partners
Global Tax Policy
Basic Policy on Information SecurityBasic Policy on Information Security
Basic Philosophy to Quality Assurance

Governance

External Evaluation/ Status of inclusionin the ESG Index

Search / Index

206

TDK Corporation

2-5-1 Nihonbashi, Chuo-ku, Tokyo, 103-6128, Japan
https://www.jp.tdk.com

202311