Sustainability medium-term plan

Basic Policies

The SCREEN Group promotes sustainable management, an approach to achieving sustainable growth by enhancing corporate value through the creation of shared value (CSV). CSV is the generation of both social value and economic value by accommodating social needs through business activities.
We regard sustainability strategy as part of our shared strategies applicable both to business growth and business foundation enhancement. To globally address long-term environmental, social, and governance (ESG) issues throughout our value chain, we have established Sustainable Value 2026, which sets forth the non-financial targets of Value Up Further 2026, our new medium-term management plan. By striving to achieve these targets, we will live up to the expectations and confidence of our diverse stakeholders and contribute to the sustainable development of society.

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Sustainable Value 2026

We formulated the new sustainability medium-term plan, Sustainable Value 2026, by backcasting from the non-financial indicator outcomes of the Management Grand Design while factoring in issues that emerged during the period of the previous plan as well as external demands and expectations related to ESG initiatives. To achieve the new plan’s targets, we will implement initiatives throughout the global supply chain aimed at further enhancing our corporate value.

Sustainable Value 2026 targets and initiatives (FY2025/03–FY2027/03)
Key issues	Targets for the final year (FY2027/03)	Initiatives
Reduce GHG emissions from business activities　(Scope 1, 2)	70% reduction compared with FY2019/03 (absolute volume) 15,170 metric tons CO₂e	Advance the use of renewable energy at facilities Consider solar power generation and power storage equipment, etc.
Reduce energy usage in business activities	8% reduction compared with FY2019/03 (per unit of net sales) 367 kWh/million yen	Continue advancing the adoption of energy-saving facilities
Reduce GHG emissions from the use of sold products (Scope 3 category 11)	48% reduction compared with FY2019/03 (per unit of gross profit) 13.5 metric tons CO₂e/million yen	Develop businesses with high added environmental value
Provide products with excellent energy-saving performance	Sales from Super Green Products: 3%	Promote the adaptation of mainstay products into Super Green Products
Realize societies in harmony with nature	Reinforce biodiversity-related initiatives	Implement employee education and external communications Cooperate with local communities
Reduce the volume of waste generated	8% reduction compared with FY2019/03 (per unit of net sales) 4.36 kg/million yen	Expand efforts to turn waste materials into valuable materials company-wide Continue to reduce waste generated
Promote effective water use	Water withdrawal: 8% reduction compared with FY2019/03 (per unit of net sales) 5.31 m³/million yen	Reinforce water resource management in product development and manufacturing
Comply with product regulations	Virgin PFAS usage: 15% reduction compared with FY2024/03	Make effective use of recycled materials Reinforce coordination in the supply chain
Reinforce environmental invention	Create environmental inventions that contribute to environmental impact reduction	Promote the creation and IP formalization of environmental inventions through business activities
Increase the number of female employees and the rate of female employees in management positions	Women among new graduate hires: 20% or more Management positions held by women: 5% or more	Offer discussion sessions for female students in STEM fields and expand internship opportunities Improve work environments to be accommodating of women in management positions and support their promotion
Promote the employment of people with disabilities	Employees with disabilities: 2.7% or more	Expand Parte (in-house organization for the employment of people with disabilities)
Promote employee wellness	Presenteeism: 81%	Strive toward stress-free workplaces Coordinate with work style reform and other personnel measures
Prevent occupational accidents	Occupational accidents: 33% reduction compared with FY2024/03	Promote data-driven measures and safety education for employees to change mindsets
Prevent IT incidents	Catastrophic (level 2-equivalent for the Group) information incidents and accidents: 0	Develop and apply rules and guidelines according to the danger level of group risks Expand training to enhance the capabilities of the Computer Incident Response Team (CIRT) Increase personnel with relevant certifications
Maintain and strengthen IT security	NIST SP 800-171 Level 2 (Advanced)-compliant	Improve information security policies Expand dedicated security organization Implement both rules- and technology-based measures Implement group and supplier evaluations
Reinforce BCP globally	Promote BCP at subsidiaries of business operating companies	Visit group companies, implement on-site surveys, and hold workshops
Reinforce BCP in the supply chain	Promote dialogue with suppliers based on risk analysis	Implement measures in cooperation with business operating companies
Promote social responsibility in the supply chain	Expand conflict mineral survey coverage: 120 companies	Build momentum through supply chain communication
Enhance disclosure	Respond to demands for and enhance ESG-related disclosure	Identify critical issues and respond to requests

The SCREEN Group has expanded the SDGs to address through its businesses from 8 to 15. Working as a united group, we will strive to advance value creation toward our future ideals for both society and the SCREEN Group.

Review of Sustainable Value 2023

The SCREEN Group formulated Sustainable Value 2023 as a plan for enhancing its social value. Specifically, the plan sought to live up to the expectations and trust of our diverse stakeholders and fulfill our corporate social responsibility while proactively implementing initiatives to address environmental, social, and governance (ESG) issues through our business activities. Under the plan, we implemented a wide range of initiatives. The plan’s targets for each sustainability-related key issue and the results of related initiatives are shown below.

Sustainable Value 2023 key targets and results (FY2021/03–FY2024/03)
Key issues	Targets for the fiscal year ended March 31, 2024	Fiscal year ended March 31, 2024
Key issues	Targets for the fiscal year ended March 31, 2024	Results	Self-evaluation, issues, measures, etc. ✓: Achieved; ✕: Not achieved
Reduce GHG emissions from business activities (Scope 1, 2)	10% reduction compared with FY2019/03 (absolute volume) 45.5 thousand metric tons CO₂eContinual activity toward our SBT (Scope 1, Scope 2)^:1 30% reduction by the end of FY2030/03	45.5% reduction compared with FY2019/03 27.5 thousand metric tons CO₂e	✓	Substantial reductions were achieved mainly as a result of the introduction of renewable energy at the Head Office, Hikone Site, Taga Site, and other facilities. Working toward carbon neutrality, in January 2024 we received renewed approval from SBTi of our targets as consistent with limiting the global temperature rise to 1.5°C.²
Reduce GHG emissions from the use of sold products (Scope 3 category 11)	8% reduction compared with FY2019/03 2,395 thousand metric tons CO₂e Continual activity toward our SBT (Scope 3 category 11)^:1 20% reduction by the end of FY2030/03	13.7% reduction compared with FY2019/03 2,247 thousand metric tons CO₂e	✓	An increase in the sales ratio of products that have high environmental performance.
Reduce the volume of waste generated, promote recycling	Waste generated in business activities: 5% reduction compared with FY2019/03 (per unit weight of product shipment) 188 kg/metric ton	10.1% increase compared with FY2019/03 218 kg/metric ton	×	Results reflected changes in the product mix, despite efforts to turn waste materials into valuable materials and reduce waste.
Promote effective water use	Withdrawal of service water, industrial water, etc., used at business operating sites: 5% reduction compared with FY2019/03 (per unit weight of product shipment) 246 m³/metric ton	15.4% increase compared with FY2019/03 299 m³/metric ton	×	Total water withdrawal volume increased slightly, reflecting the expansion of production facilities, despite efforts to improve production efficiency at R&D and manufacturing sites. Results were also impacted by changes in the product shipment mix.
Human resources	Promotion of measures to develop solution creators Enhance systems and measures that provide a tangible sense of growth Improve an environment to support the hiring and development of diverse human resources and enables them to succeed Apply sustainable new work styles	Promoted corporate philosophy uptake (town hall meetings) Defined attitudes required of solution creators Continue the engagement survey Expanded education for engineers Expanded specialist career paths Began consideration of extending the mandatory retirement age	✓	Through town hall meetings with approximately 2,700 employees, understanding of and resonance with the corporate philosophy and goal of becoming a solution creator surpassed 90%. We defined the attitudes required of a solution creator to guide day-to-day action. We also advanced efforts to enable diverse talent, including highly skilled specialists and highly experienced senior employees, to fully utilize their abilities.
Enhance industry-academia-government collaboration and community collaboration	Advance various collaborative projects through cooperation with government agencies, educational institutions, etc.	Formed comprehensive partnership agreement with Shiga Prefecture and took part in the Kyoto Acceleration Program based on the comprehensive partnership agreement with Kyoto Prefecture Worked with Doshisha Business School, Kyoto University of Advanced Science, and other partners to offer internships and implement joint research and communication meetings	✓	We reinforced collaboration with government agencies and educational institutions. We will continue to promote industry-academia-government collaboration that benefits all parties over the medium to long term.
Identify key risks and reduce risks	Reinforce the effectiveness of risk management operations	Focusing on key group risks, the Group Risk Management Committee reported on and confirmed the status of risks, their changes, and policy for handling high-risk matters	✓	Adopted company-wide common risk assessment criteria and implemented improvements, such as reinforcing support from the second line of defense.
Enhance resilience to increasingly severe natural disasters	Improve the resilience of the Group’s business continuity planning in the face of increasingly diverse disaster risks	Completed the establishment of BCM rules and BCPs at all global group companies Conducted ongoing drills, including a comprehensive major disaster emergency headquarters drill	✓	Completed the establishment of BCM rules and BCPs at all global group companies; used drills to practice disaster response and make revisions to improve their practicality.
Promote social responsibility in the supply chain	Pursue ongoing strengthening of our supply chain management system, including widespread adoption of our Supplier Code of Conduct, procurement practices, and BCP	Set up a website for suppliers, provided sustainability-related information, and held regular webinars Implemented CSR surveys of our top 240 suppliers and obtained their written statements of agreement with the Supplier Code of Conduct Completed rebuilding of the supply chain safety confirmation system	✓	Built new supply chain frameworks. Strengthened supply chain sustainability by reinforcing communication and coordination.

SBT: Greenhouse gas (GHG) emissions reduction target approved in April 2020 by the Science Based Targets initiative (SBTi) as being consistent with levels required to keep the global temperature rise to well below 2°C.
SCREEN Receives Renewed Approval from Science Based Targets Initiative