IX. Dialogue—Engagement
Communication with Stakeholders for Co-creation of Value
The azbil Group aims to “contribute ‘in series’ to theachievement of a sustainable society” through its
businesses. To accomplish this goal, it is extremely
important to comprehend the various issues in eachcountry and region, propose solutions, and co-create
value toward sustainable growth through interactive
communication with our stakeholders. From thisperspective, management promotes proactive dialogueand works to create more transparent and trusting
relationships with our stakeholders.

Corporate communication structure
Under the guidance of the corporate executive in charge ofcorporate communications, we have set up a system(Corporate Communication Task Force) to facilitate dialogue
with stakeholders through collaboration among internal
departments, and have been discussing ways to enhancecommunication activities, including timely, appropriate, andintegrated dissemination of information and the introductionof new opportunities and tools, including digital tools. Also,
starting in FY2023, we have integrated the majororganizations involved in information dissemination into a
new Communication Department which promotes global
communication and branding. We engage in fair and highly
transparent information disclosure in accordance with laws
and regulations in a timely and appropriate manner, andproactively disseminate not only financial information but
also non-financial information such as management plans,
ESG information, and product and service information.
Additionally, we actively seek feedback from all
stakeholders, considering their opinions as valuable input
for our management decisions.
webDisclosure Policy
https://www.azbil.com/ir/management/disclosure/index.html

Details of dialogue with stakeholders

Value creation
through communication

Communication
opportunitiesExamples of activities for
FY2022105 azbil report 2023

Customers

Business partners and suppliers• Developing better products and services• Providing consulting, quality assurance,high value-added engineering andmaintenance services• Ensuring opportunities for fair transactions• Building good partnerships• Sharing values and fulfilling social
responsibilities with the SDGs as acommon goal

• Sales and quality assurance activities• Offering safe, dependable, and valuable
products and services• Providing information through our website• Providing an inquiry form on our website• Exhibitions, webinars• Briefings on the CSR Procurement
Guidelines• ESG-oriented implementation of andfeedback from business partners’ selfevaluation surveys• Initiatives to achieve our own essential
SDG goals in our supply chain• Hybrid participation in Measurement andControl Show 2022 OSAKA / MCS 2022
Online+plus; booth at Industrial
Transformation ASIA PACIFIC, Smart
Building EXPO, etc., introducing advanced
products and services as a contribution toDX, carbon neutrality, etc.

• Conducted briefings to motivate andpromote specific initiatives to achievethe SDGs• Carried out human rights due diligence(conducted on approximately 300 major
business partners)

Proactive dissemination by top management
Top management proactively communicates on variousfronts, including interviews in the Nikkei ESG magazine andthe lecture at the Nikkei SDGs Festival, about the Group’s
efforts to solve issues onsite and within the Group throughmeasurement and control technology toward achieving asustainable society.

The lecture at the Nikkei SDGs Festival

Employees

Responding to requests for sustainability-related
disclosures and communicating with suppliers
Guided by the Group philosophy, the azbil Group identifies
materiality in terms of both opportunities and risks, taking
into consideration medium- and long-term changes in thebusiness environment. We have established the essential
goals of the azbil Group for the SDGs as specific indicatorsand targets, and are working to achieve them.
In FY2022, we expanded our disclosure in our Annual
Securities Report regarding our response to climate change
and strengthening our investment in human capital, both ofwhich are issues related to sustainability. In addition, we newly
published the azbil ESG Databook that compiles a wide
range of non-financial information. As part of fulfilling oursocial responsibilities to customers and business partners,
we have shared our own essential SDG goals with ourbusiness partners and conducted questionnaires, briefing
sessions, and human rights due diligence (see pp. 81–84).
webazbil ESG Databook
https://www.azbil.com/ir/library/esg/index.html

Local and international communities

Shareholders and investors• Achieving health and well-being
management so that all employees canwork comfortably and exercise theirfull potential• Proactive communication to respond to the • Timely and appropriate information disclosure
needs and expectations of local and• Improvement of enterprise value byinternational communities; participation ingathering authentic valuations from theactivities contributing to society
capital markets and understanding the• Engaging in responsible corporate action
requirements of the capital markets
through declarations, initiatives, and activities • Initiatives and disclosure on social issues
and sustainability• Information dissemination throughthe intranet• Direct dialogue between officers andemployees (online dialogue at the individual
workplace level and with managers)• Implementing an annual employee
satisfaction survey and establishing/pursuing initiatives to achieve highsatisfaction levels as our own essential
SDG goals• Regular dialogue between the labor unionand management (joint management council)• Inviting local residents and institutions toseasonal events (such as summer evening
festivals hosted by the company) andprograms to contribute to society (such aseducational support)• Volunteer activities (community cleanup,
azbil Honey Bee Club)• Participation in international initiatives (UNGlobal Compact, TCFD, and others),
communication of information throughwebinars, etc.
• Biodiversity conservation initiatives (incooperation with Japanese andinternational NPOs and NGOs)• General meetings of shareholders, financial
results briefings, facility tours, and exhibitions• Individual meetings with Japanese andoverseas institutional investors andanalysts, briefings for individual investors• Information disclosure through theintegrated report (azbil report), business
reports for shareholders and investors,
azbil ESG Databook, and information
disclosure on the company’s website(Investor Relations page)• Establishment of a disclosure policy anddialogue based on the policy• Held general meeting of shareholders in• Conducted direct dialogue between officers • Continued support for contributions tosociety such as community cleanups, tree
hybrid onsite and online meetings, and heldand employees (promotion of employee
planting activities, and educational support,a financial results briefing online (for theengagement by the president)
through the azbil Honey Bee Club
second quarter) and in a hybrid format (for• Carried out employee satisfaction surveys
the end of the fiscal year).
• Co-sponsored educational projects and(measured the percentage of employees
sporting events for local children with• Conducted meetings with domestic andwho have expressed satisfaction andShonan Bellmare and Shonan United BC,
overseas institutional investors, including
experienced personal growth)and reduced environmental impact of thesenior management• Provided opportunities for cross-departmental
Shonan International Marathon through• Participated in online presentations forexchanges and discussions to enhancecarbon offsets
individual investors (for the second
expertise (communities of practice: CoP*)
consecutive year)• Group training in a hybrid format and invitation
to employees at overseas sites to participate• Conducted dialogue at joint management
council meetings* Activities in which employees who are aware of and enthusiastic about a particular theme gather to deepen their knowledge and expertise through exchange

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106

IX. Dialogue—Engagement
Communication with Stakeholders for Co-creation of Value

Initiatives for constructive dialogue withshareholders and investors and utilization of
the internet
We have a system in place for dialogue with shareholders andinvestors in which senior management, the corporate executive
in charge of corporate communications, and Investor
Relations take the lead, depending on the purpose of themeeting. The dialogue is extensive, ranging from management
strategies and business performance to sustainability andESG-related initiatives and voting criteria, and includes
proactive dialogue with ESG and voting staff from fundmanagers and analysts from shareholders and investors ofvarious management styles. In FY2022, the frequent topics inthe discussion were the status of and forecast for eachbusiness, how the company is responding to the businessenvironment, growth investment areas and business
opportunities, and strengthening of governance, such as thetransition to a three-committee Board structure. The feedback
obtained through these dialogues is shared with the company
president and other members of the management team, as
well as outside directors, at the Management Meeting and
Board of Directors meeting, and are incorporated into capital
policies, corporate strategies, and management as appropriate.
We are also using remote support such as web
conferencing tools and enhancing and utilizing digital content.
We also actively disseminate information and strive toThe 101st Ordinary General Meeting of Shareholders was held in a hybrid format.

promote understanding, not only for domestic but also
overseas shareholders, institutional investors, and individualinvestors, by means such as live and on-demand distributionof the content of general meetings of shareholders, on-demand
distribution of results briefing videos in Japanese and English,
online company briefings for individual investors, etc.

On-demand broadcast of the company briefing for individual investors

Communication with employees
The president of the company personally creates opportunities
for direct dialogue with employees of the azbil Group in Japanand abroad to promote a free exchange of ideas, and sharesthe content of these discussions via the company intranet andother means to deepen ties between employees. Since theoutbreak of the COVID-19 pandemic, we have also transitioned
to a hybrid format of in-person and online group training,allowing employees at locations overseas to participate in thetraining. In addition, we are creating CoP opportunities mainly foryoung employees at each location for discussion of businessissues and operational improvements, as well as self-reflection
and growth. Through these efforts, we have improved the ratioof employees who have expressed satisfaction and employees
who experienced personal growth, as measured by employee
satisfaction surveys. Also, joint management council meetings
are held seven times a year to address issues raised by thelabor union regarding the work environment.

Main declarations and initiatives we have joined or supported,and external evaluations• Declaration of support for the Task Force on Climate-related Financial Disclosures (TCFD)• Signatory of the United Nations Global Compact• Climate Change Initiative and the Japan Climate Leaders’ Partnership Endorsement• Listing on six indices chosen by the Government Pension Investment Fund (GPIF):
FTSE Blossom Japan Index, MSCI Japan ESG Select Leaders Index, FTSE Blossom
Japan Sector Relative Index, MSCI Japan Empowering Women Index (WIN), S&P/JPX
Carbon Efficient Index, Morningstar Japan ex-REIT Gender Diversity Tilt Index• CDP Climate Change (A score) / Water Security (A- score), supplier engagement leader• Highest level (Eruboshi) certification for leading companies based on Japan’s Act
on Promotion of Women’s Participation and Advancement in the Workplace;
Plutinum Kurumin certification; certification as a Health & Productivity
Management Outstanding Organization in 2023
• Selected as an “Environmentally Sustainable Enterprise” for the 4th ESG FinanceAwards Japan• FTSE4Good Japan Index, MSCI Japan Index, JPX-Nikkei Index 400

107 azbil report 2023

Invigorating local communities
As its own essential SDG goal, the azbil Group aims tocontribute to society at all business sites through activities
rooted in the local community, with active participation by
every employee, and it is working to achieve this target. To
facilitate the practice of continuing and systematic activity,
we established a dedicated social contribution department
in FY2021, and formulated aims and key themes for its
initiatives. In FY2022, in line with global conditions, we
promoted employee participation at our business locations
and at sponsored events, while ensuring the safety andsecurity of the local community and our employees. By
strengthening the efforts of all employees to address social
issues both in Japan and overseas, we will continue to aim
to contribute “in series” to the achievement of asustainable society.
Invigorating Local Communities
web

https://www.azbil.com/csr/contribution-to-society/voluntaryactivity/local.html

The azbil Group’s Essential Goal III for the SDGs (for FY2030)

Social Responsibility
Social contribution activities rooted in the local
communities are run at all of our business sites, withactive participation by every employee

Supporting education in elementary schools
The azbil Group provides educational support as part of ourefforts to contribute to the local community. In FY2022, in
conjunction with the completion of the buildings in theFujisawa Technology Center, which is our R&D base, we
conducted an energy conservation tour for third graders ofTakaya Elementary School in the suburbs of Fujisawa. This

was the first time for theazbil Group to conduct anenergy conservation tour forelementary school students,and our employees
served as lecturers to theEnergy conservation tour (imagecourtesy of Townnews-Sha Co., Ltd.)
approximately 150 students,
explaining the Group’s activities connected to theachievement of the SDGs. As a result of the lesson, wereceived letters from the children, and we continue tointeract with them.

Support from the azbil Honey Bee Club
The azbil Honey Bee Club consists ofabout 1,100 employees and company
officers of the azbil Group. In addition todonating a small amount from theirsalaries every month, the members
March, the azbil Honeypropose recipients and vote toBee Club’s mascot
determine which ones to support inorder to help provide solutions tosociety’s problems. Since these activities involve
collaborating with a variety of stakeholders, they foster a
corporate culture of growing along with society, and theygive the azbil Group a sense of solidarity andaccomplishment. In FY2022 the club gave a total of ¥8.8
million to 58 organizations. Of that amount, ¥5.6 million wasfrom club members, while ¥3.2 million was matching funds
from Azbil Corporation.** Azbil Corporation matches the club’s donation if members themselves
participate in the activities of the recipient.

The azbil Honey Bee Clubwebhttps://www.azbil.com/csr/contribution-to-society/voluntaryactivity/mitsubachi.html

Azbil Yamatake General Foundation
The Azbil Yamatake General Foundation was establishedto provide educational opportunities and a stablelearning system for promising children, to provide
research grants in the fields of science and technology
to support the development of new technology. We offer
three programs—scholarships, support for education
and awareness, and research grants—under the motto“For the future of youth.” Through these programs, we
are working on a variety of activities in collaboration withlocal communities, schools, and research organizations
so that those who receive support can gain a sense ofhappiness and fulfillment. For example, the foundation
participated in and supported scholarship systems

established by local governments, helped needy youth
from single-parent families to enroll in schools, anddonated to orphanages. Additionally, it worked with local
governments to support the establishment of newchildren’s clubs, supported education at terakoya(voluntary prep schools), and supported student
volunteers that manage cafeterias for children. These
activities are aimed at tackling child poverty and creating
an environment where children who need assistance canlearn with peace of mind. In FY2021 we began offering
grants for research activities through an open application
process, and we expanded the area and scope of ouractivity in the following year.

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