Materiality

Vision for 2030

Improve productivity
using control technology

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

Business foundation
Establish a management structure that promotes
value creation, fosters an organizational climate,and develops human resources.

I mprove safety, productivity, and well-being through technology development, human resource
development, management, and rulemaking.

Contributeto the reduction of the environmental impact of customers and society through theuse of the IDEC Group’s technologies and products.
Reduce CO2 emissions through the in-house use of renewable energy.

 nsure a thorough understanding of “The IDEC Way” and stimulate the company by creatingE
an attractive work, environment that gives employees a sense of purpose.
 romote decent work, as well as diversity & inclusion, to strengthen the company’s humanPcapital, in order to cultivate employees who will be able to innovate and create new value.
Further strengthen governance and compliance to ensure that the company is trusted by society.

Governance4

Response to climate change ealize the optimum environment for both humans and machines to resolve various societalRchallenges and make it possible to achieve healthy, happy, and vigorous lives.

Foundation For ValueCreation

3

Climate change ontribute to improving the productivity and efficiency of our customers and society aroundC
the world by providing the IDEC Group’s long-cultivated control technology, products, andsystem solutions that have been developed ever since its foundation.

Business Strategy

2

Safety, ANSHIN, and well-being

Related SDGs

Value Creation Story

1

Productivity improvement

Introduction

Along with formulating its long-term vision for 2050 and interim vision for 2030, IDEC has reviewed its policy toward materiality.
A fourth item, “business foundation,” has been added, and the company is working to devise climate change measures and furtherenhance its human capital and governance.

Conduct reviews as appropriate in response tochanges in society and the business environment.
Identifying challenges

IDEC Report 2023

Engagein dialogue with stakeholders andassess trends in societal challenges.
Reassess materiality based on the long-term
vision for 2050 and the interim vision for 2030.
Understand international frameworks/guidelines
and the criteria used by ESG rating agencies.

The
Strategic Planning Department, Corporate
Communication Department, CSR Department,and Environment Promotion Department
organize and reassess issues and establish
sustainability KPIs.
Ensure consistency with our vision for 2030 andmedium-term management plan.

Evaluating significanceMapthe issues across two axes: significancefor stakeholders and significance for the IDECGroup.
Assign priorities by theme.

Confirming validity
Materiality
policy and sustainability KPIs areconfirmed by the Top Management Meeting and
the Board of Directors.
Obtain approval from the Board of Directors.

Materiality

Data

Materiality
Selection
Process

Analyzing and creating drafts

15Materiality
Introduction

Identifying challenges and evaluating significanceOpportunity Aspects

Risk Aspects
112291138105132

Significance to stakeholders

1175

2

Productivity Improvement in customers’ productivity and efficiency by providing solutions
improvement

3

Creation of safe and healthy working environment by providing control and safety devices andvarious systems
Reduction in work time by streamlining work processes and making labor-saving improvements
Safety,ANSHIN, andwell-being Reduction in labor accidents by providing safety devices

78

12

Productivityimprovement

Climatechange

34
5

Safety awareness building and promotion of safety measures by providing safety consultations andseminars

6

Reduction of environmental impact and strengthening of competitiveness through eco-friendly
manufacturing

7Overview
Decline in competitiveness due to lack of response to technological innovation,
environmental changes, and customer needs
Decline in customer satisfaction due to quality and delivery time problems
Personal and social hazards resulting from accidents related to products and services

Safety,ANSHIN, and Fraud and falsification of inspections, standards certification, and permits
well-being
Social unrest and impact on operations and product shipments caused by substances that cause
pollution and health damage
Climatechange

Cost and supply instability due to soaring energy prices and shortage of raw materials
Supply chain disruption and business disruption due to abnormal weather and natural disasters

Business expansion in renewable energy and other environmental fields

8Insufficient investment in human capital and a deficient working environment, reducing labor productivity
and impeding employee retention

10

Create a work environment that gives people a sense of purpose and promote the digital transformation
to increase labor productivity, secure outstanding talent, and gain new business opportunities

9

Decline in social credibility and employee engagement due to violations of human rights laws, regulations,and norms

11

Hire people with a diversity of values and train and develop human resources to create innovation andstrengthen competitiveness

10

9Achieve viable corporate governance and increase awareness of compliance responsibilities to improve
corporate value

13

Foster of a corporate culture that is based on environmental considerations14

Improve in ESG relations with investors

IDEC Report 2023

Businessfoundation

Imbalanced skills and characteristics of human resources, resulting in stereotypical thinking and lossof business opportunities

11

Decline in social credibility due to CSR and compliance violations, and lack of governance in the global
supply chain

12

Loss of social credibility due to information security accidents, non-compliance with laws and regulations,and lack of risk management

Materiality

Data

12

Businessfoundation

Governance6

Category

Knowledge accumulation and service development by promoting adoption of IoT equipment45Significance to business

Overview
Improvement in customers’ productivity and efficiency by providing control technology and products

126

Foundation For ValueCreationCategory

110Significance to business

1489Business Strategy

Significance to stakeholders

4714

Value Creation Story

3616