Materiality

The KOITO Group's basic management policy is to create customer needs and contribute to the progress of society, while also fostering mutually beneficial relationships with all stakeholders, guided by the theme of "Light." We are contributing to the safety and security of the automobile society through developing and providing automotive lighting equipment and other products.
We believe that our business activities are highly compatible with and relevant to Sustainable Development Goals (SDGs) adopted by the United Nations in September 2015, and can contribute to achieve these goals.
In order to accelerate these initiatives, we have referred to the GRI (Global Reporting Initiative) guidelines and identified material issues (materiality) to be focused and SDGs to be solved among the various social issues.
We will continue to promote our business activities that contribute to materialize a sustainable society.
The KOITO Group Corporate Behavior Charter
The KOITO Group's basic management policy is to create customer needs and contribute to the progress of society, while also fostering mutually beneficial relationships with all stakeholders, including shareholders, customers, employees, and business partners, all guided by the theme of "Light."
In accordance with this policy, we have established the following ten principles. We will comply with domestic and overseas laws and regulations, international rules, and their underlying spirit, and conduct corporate activities in accordance with corporate ethics.
In addition, with the aim of achieving sustainable growth of society, we will strive to resolve social issues through our business activities and fulfill our social responsibilities.
- The KOITO Group Corporate Behavior Charter
Sustainable growth and resolution of social issues
We will strive to achieve sustainable growth and resolve social issues by developing and providing socially beneficial and safe products and services through innovative manufacturing.
Trusted corporate activities
We will gain customers' satisfaction and trust through developing and providing safe and high-quality products and services, providing appropriate information regarding those products and services, and fulfilling our social responsibility.
Compliance with social conventions / Global management
We will comply with all applicable laws and regulations and will engage in fair, transparent, and free market competition, as well as proper trade, and responsible procurement.
In our global corporate activities, we will also comply with international rules and local laws, respect local culture and customs, and maintain sound relationships with government and government agencies.Fair information disclosure and constructive dialogue
With the purpose of enhancing our corporate value, we will disclose corporate information in an appropriate, effective, and fair manner and engage in constructive dialogue with a wide range of stakeholders, including shareholders, business partners, and local residents.
Respect for human rights
We will respect the human rights of all persons.
Work practice and enhancement of workplace environments
We will respect the personality, diversity, and character of each of our employees, regardless of their nationality or gender. We will also strive to provide a healthy and safe workplace environment in which all employees can make the best use of their capabilities and fulfill their potential.
Engagement in environmental issues
Guided by the theme of "Eco-friendly Manufacturing for People and the Earth," we will proactively engage in global environment conservation through our business activities.
Contribution to society
We will be conscious of our responsibility as a good corporate citizen, and actively engage in social contribution activities, and we will contribute to the realization of a prosperous society.
Rejection of relations with anti-social forces / Comprehensive risk management engagement
We will adamantly reject any relations with and resolutely stand against anti-social forces or groups that pose a threat to civil life or corporate activities, and we will engage in comprehensive corporate risk management in preparation for terrorist activities, cyberattacks, natural disasters, and other crises.
Role of top management and thorough implementation of this Charter
Top management will recognize that fulfilling the spirit of this Charter is their own role, and they will be committed to thoroughly informing the KOITO Group and its supply chain about the Charter and encouraging them to take actions based on the Charter.
Top management will also continually gather opinions from both inside and outside of the company to help establish an effective governance system and thoroughly enforce corporate ethics.
In the event that the corporation violates the spirit of this Charter and loses social trust, top management shall take the initiative and fulfill its responsibility by resolving the problem, elucidating the causes, disclosing information, and preventing future recurrences. Additionally, top management will severely punish those involved, including themselves, if appropriate, after clarifying their authority and responsibility.
Materiality Assessment Process

We have identified full list of potential social issues which should be solved through our business activities.

We have analyzed the issues based on importance for stakeholders and the
KOITO Group.

We have identified issues of 'very high' importance as our materiality, and correlated them with SDGs.

Material issues were approved by the Board of Directors.

The KOITO Group's Materiality

Environment

Materiality | Declaration of KOITO's initiatives |
---|---|
・Prevention of global warming ・Reduction of environmental impact substances and waste ・Conservation of water resources |
・We will promote reduction of CO₂ emissions and environmental impact substances, and resource recycling guided by the theme of "Eco-friendly Manufacturing for People and the Earth." ・We will contribute to the reduction of CO₂ emissions by further improving the light emission efficiency and reducing the weight of mainstay products. |

Safety/Peace of mind

Materiality | Declaration of KOITO's initiatives |
---|---|
・Reduction of traffic accidents ・Technological development contributes to materialize a sustainable society |
・We will strive to achieve sustainable growth and resolve social issues by developing and providing socially beneficial and safe products and services. ・Looking ahead to autonomous driving society, we will promote product development of sensors (LiDARs and cameras). |
・Enhancement of product quality | ・We will gain customers' satisfaction and trust through developing and providing safe and high-quality products and services. |

Corporate foundation

Materiality | Declaration of KOITO's initiatives |
---|---|
・Compliance ・Corporate governance |
・We will enhance corporate governance and strengthen compliance to establish sound management system. |
・Information security | ・We will strive to protect information assets by preparing for risks on information security. |
・Human resource development ・Healthy and safe working environment ・Workstyle reform |
・We will strive to provide a healthy and safe workplace environment in which all employees can make the best use of their capabilities and fulfill their potential. |
・Protection of human rights | ・We will promote initiatives to respect the human rights of all persons. |
・Disaster prevention | ・We will strengthen our disaster prevention system throughout the supply chain. |
KOITO's Initiatives
KOITO has set KPIs (key performance indicators) and targets for FY 2030 for each materiality. We are promoting activities that contribute to solve social issues by incorporating them into specific activity plans.
- Environment
KPI FY2022
ResultsFY2023
ResultsFY2030
TargetsConsolidated CO₂ emissions 408.6
thousand tons326.7
thousand tons271.5 thousand tons
(50% reduction from FY 2015)VOC emissions 173 tons 173 tons Less than 299 tons
(Iess than the amount in FY 2018)
(continuous target by FY 2025)Waste generated per unit
(tons per billion yen)0.111 0.090 Less than 0.128
(7% reduction from FY 2018)
(continuous target by FY 2025)Water usage per unit
(tons per million yen)3.41 3.14 Less than 3.51
(7% reduction from FY 2018)
(continuous target by FY 2025)
- Safety / Peace of mind
KPI FY2022
ResultsFY2023
ResultsFY2030
TargetsLED adoption ratio* 77% 89% 100% ADB adoption ratio* 7% 9% 20% Automotive LiDAR Market Share ー ー More than 20% Number of recalls 0 cases 0 cases 0 cases *Consolidated
- Corporate foundation
KPI FY2022
ResultsFY2023
ResultsFY2030
TargetsAwareness of the KOITO Group Corporate Behavior Charter 96% 98% 100% Number of serious violations of laws and ordinances 0 cases 0 cases 0 cases Number of serious information security incidents 0 cases 0 cases 0 cases Training time per employee 12.0 hours 14.0 hours More than 15.0 hours Rate of lost-time injuries 0 0.09 0 Ratio of women in senior management 1.8% 2.5% More than 10.0%s