Introduction

Materiality
Material issues

Productivity improvement
Improvement of productivity using
control technology

Safety, ANSHIN, and well-being

Process to select material issues
Identifying issues

 ngage in dialogue with stakeholders and assess trends inE
societal issues.
Understand international frameworks/guidelines and the criteria
used by ESG rating agencies.

Analyzing andcreating drafts

 rganize and reassess issues at relevant departments.
OEnsure consistency with our long-term vision and medium-term
management plan.

Evaluating materiality

 ontribute to improving the productivity and efficiency of our customers
Cand society around the world by providing the IDEC Group’s
long-cultivated control technology, products, and system solutions.
 ealize the optimum environment for both humans and machines toR
resolve societal issues to create safe and comfortable environment andachieve healthy, happy, and vigorous lives.
Improve safety, productivity, and well-being through technology
development, human resource development, management, andrulemaking.
 ontribute to the reduction of the environmental impact of customers andCsociety through the use of the IDEC Group’s technologies and products.
Reduce CO2 emissions through the in-house use of renewable energy.

Climate change
Response to climate changeOrganize priorities by opportunity and risk themes.

Business foundation

Obtain approval from the Board of Directors following
confirmation by the Top Management Meeting.

Establishment of a management
structure that promotes value
creation, respect for human rights,
and development of a corporate
culture and human resources nsure a thorough understanding of “The IDEC Way” and stimulate theEcompany by creating an attractive work environment that gives employees
a sense of purpose.
Conduct business with the highest ethical standards, respect humanrights both at our company and in the value chain, and further strengthen
corporate governance and compliance.
Strengthen human capital to cultivate employees who will be able tocreate new value and innovate.

Material issues

42
2
6

7
52
4

7
1
6

Safety,ANSHIN,andwell-being
ClimatechangeBusinessfoundation

Improvement in customers’ productivity and efficiency
Decline in customer satisfaction due to quality and2by providing solutionsdelivery time problems

Creation of safe and healthy working environment
3 by providing control and safety-related products andvarious systems
4

Reduction in labor accidents by providing
safety-related products

3

Personal and social hazards resulting from accidents
related to products and services

4

Fraud and falsification of inspections, standards
certification, and permits

Reduction of environmental impact and strengthening
Cost and supply instability due to soaring energy
5 of competitiveness through promotion of development 5
prices and shortage of raw materialsof eco-friendly products
Creation of a work environment that gives people
a sense of purpose and promotion of the digital
6 transformation to increase labor productivity,
secure outstanding talent, and gain new business
opportunities

Insufficient investment in human capital and a
6 deficient working environment, reducing laborproductivity and impeding employee retention

Data andCompany Overview

Recruitment of people with diverse values and training
Decline in employee engagement and social credibility
7 and development of human resources to create
7 due to inaction of human rights issues or violations ofinnovation and strengthen competitivenesslegislation or standards

Foundation forValue Creation5Materiality to business21 IDEC Report 2024

Productivity
improvement

3Materiality to stakeholders

Looking ahead to 2030, we evaluatedvarious societal issues from the perspectivesof opportunity and risk and mapped them on
the twin axes of materiality to stakeholders
and materiality to the IDEC Group.
The themes that are especially significant
for realization of a sustainable society inthe context of our four material issues areas follows.

13Risks

Decline in competitiveness due to lack of response toImprovement in customers’ productivity and efficiency
1 technological innovation, environmental changes, and1 by providing control technology and products
customer needs

Business Strategy

Identifying issues and evaluating materiality

Opportunities

Initiatives for
Realization of Vision

Confirming validity

Pursuit and realization of safety,
ANSHIN, and well-being

Related SDGs

Value Creation Story

Conduct reviews
as appropriate in
response to changes
in society andthe business environment.

Vision for 2030

MessageAlong with formulating its long-term vision for 2050 and interim vision for 2030 in 2023, IDEC reviewed material
issues, incorporating enhancement of its human capital and governance under the heading “business foundation”.
IDEC again reviewed some of its material issues in light of the external environment and other factors and, inaddition to adding respect for human rights in 2024, also changed its interim vision for 2030.