TDK CSR REPORT 2018

The TDK Group's CSR

Important CSR Issues
within the Value Chain
The TDK value chain extending fromprocurement of raw materials to development, manufacturing, logistics, and sales
extends throughout various regions ofthe world and involves numerous socialissues. Here we present the things we
consider for society in each stage andTDK’s initiatives for important CSR issues.

Procurement

Development

Manufacturing

Logistics

Sales

TDK procures raw materials from aroundthe world. Consideration for human rights
and the environment by suppliers is also apart of TDK’s role.

The development process of technology
and human resources hold the key to how
TDK products can contribute to society
and the environment.

The environment and human resources
will be priority areas, including reductionof the environmental load at the time of
manufacturing, the eradication of defective
products, and labor health and safety.

The mission of logistics is the stable,reliable, and timely supply of TDK products
to customers.

We seek to maintain high product quality
while providing products that satisfy customers through contribution to society andenvironment issues.

● New product development through[Important CSR Issues]sustained research and development

Contribute to the Worldthrough Technology[Important Themes]■ Addressing social issues by developing

Research and development expenditure● Ensure the quality of purchased

products

new kinds of products the world has not
yet seen■ Pursue zero-defect product quality

103,457

million yen● Promote sales of products that
● Manufacturing process capable of● Ensure logistics quality

reproduction without variation

solve environmental and socialissues● Customer satisfaction● Product assessments● Building of upstream-manage-

ment-type quality assurance structure[Important CSR Issues]

Develop Human Resources● Promote Global Human Resource Training Program

IMD Training participants (total to date):● Technological innovation● Innovative craftsmanship training

350

persons Overseas Trainee Program participants (total to date):31

persons[Important Themes]■ Develop global human resources■ Cultivate a corporate culture thatrespects diversity[Important CSR Issues]

Consider the Societal andEnvironmental Impact of the
Supply Chain[Important Themes]■ Consider the work environment atmanufacturing sites■ Consider the work environment ofsuppliers■ Response to conflict minerals● Use CSR check sheets andimplement CSR audits

CSR-compliant supplier ratio● Implement CSR self-checks, and91.2%

CSR self-audits by third party
organizations● Appropriate responses to CSR

CSR self-checks at manufacturing sites● Conflict minerals survey

surveys and other inquiries fromcustomers

100 %Confirmed DRC conflict-freesupplier ratio

92.3%[Important CSR Issues]

Develop and Prosper in Harmony
with the Global Environment[Important Themes]■ Reduce environmental load throughout life

cycle stages■ Creating a framework for gauging productcontributions

11● Reduce the environmental load of● Promote sales of products thatplants● Green procurement● Creation of products contributing

to the environment● Product assessments

CO2 emissions from production
activities

1,647

thousand t-CO2

contribute to the environment● Reduce the environmental load inlogistics

Reduction of CO2 emissions
through products

2,041

thousand t-CO2

12