Material Issues and Results

Process for Identifying Material Issues

JVCKENWOOD has revised the material issues based on the Medium-Term Management Plan VISON 2023. We determined social issues strongly connected with its business on the basis of the Sustainable Development Goals (SDGs) and identified material issues while considering their relevance to VISION 2023 and set KPIs (Key Performance Indicators) for monitoring the progress of efforts to resolve the issues.

List of Material Issues

The JVCKENWOOD Group has identified material issues for contributing to sustainable societies through business. We will be formulating KPIs from a mid- to long- term perspective, at the same time developing mechanisms that can be managed globally.

The JVCKENWOOD Group’s materiality matrix

The key performance indicators for achieving Medium-Term Management Plan "VISION 2023" (FY2022)

JVCKENWOOD has established the following KPIs linked to materiality toward the realization of the medium-term management plan, VISION 2023 and the environmental plan JK Green 2025.

See Products Products & Services that Help Resolve Social Issues for more details of business activities corresponding to each materiality.

No	Material issues	Key initiatives	KPIs and Targets（FY 2022）
1	Addressing climate change	Reducing greenhouse gas emissions（Scope１+２）	Reduce greenhouse gas emissions (Scope 1+2): 25.2% reduction by FY2025 from the FY2019 level
2	Addressing climate change	Reducing greenhouse gas emissions（Scope３）	Reduce greenhouse gas emissions (Scope3):Scope 3 Calculation and reduction for categories 1,4, and 11
3	Conserving water resources	Managing water use	Manage water consumption: 6% reduction by FY2025 from the FY2019 level
4	Reducing environmental impact	Reducing wastewater and waste	Improve waste recycling rate: Achieve a recycling rate of at least 90% by FY2025
5	Sustainable manufacturing	Grasping and reducing the amount of plastic used	Reduce the amount of plastic used
6	Supply chain management	Prohibiting forced labor and child labor	Conduct human rights due diligence activities
7	Diversity＆Inclusion	Promoting active roles for women	Ratio of women in executive positions：6.5% or more
8	Initiatives for risk management	Corporate governance	Enhancement of deliberations at Board of Directors meetings Conduct training/off-site meetings, etc. for outside directors
9	Initiatives for risk management	Information Security	IT security training attendance rate：93％ Number of Cyber Security incidents：1 or less
10	Preventing traffic accidents	Creating value with Mobility & Telematics products & services	Expansion of market share in the navigation market Acquire the position of No. 1 manufacturer in the drive recorder market（FY 2023）
11	Accelerating innovation	Managing and utilizing intellectual property	The number of patent applications related to SDGs 3 (Good health and well-being), 9 (Industry, innovation and infrastructure), and 11 (Sustainable cities and communities) will account for at least 10% of all patent applications.
12	Stakeholder partnership	Collaborating with stakeholders	Collaborate with external partners to bring a portable power supplies that reuse car batteries to market

Main Indicators and Initiative Results Related to Material Issues (FY 2021)

In order to understand the status of initiatives for material issues so that further improvement can be made, JVCKENWOOD has formulated indicators (KPIs) associated with each of the material issues and has been implementing initiatives with targets set for fiscal 2021. The results of initiatives for each item is as follows.

Important issues for the realization of profitable growth and the solution of social issues (Smart service & Wellness)

JVCKENWOOD believes that making a contribution to a sustainable society provides good opportunities for a business and leads to profitable growth. Based on this belief, we have established indicators related to material issues and we are implementing initiatives for them in order to actively work to solve various social issues with our products.

No	Material issues	Objectives	Targets (FY 2021)	Status
1	Preventing traffic accidents	Value creation with Mobility and Telematics Services Sector	Expansion of market share in the navigation market Acquire the position of No. 1 manufacturer in the drive recorder market（FY 2023）	◎
2	Sustainable manufacturing	Identify and reduce the amount of plastic used	Reduce the amount of plastic used	◎
3	Secure and safe community development	Value creation with security products & services	Solve customer issues through image analysis and introduce products and systems that address the risk of COVID-19 infection	◎
4	Initiatives for disaster prevention/mitigation	Planning to launch new products and services for disaster-prevention and disaster-mitigation	Received one project order for disaster prevention solutions	◎
5	Ensuring secure and safe transport systems	Value creation through telematics services	Market introduction of CABmee, a next-generation IoT vehicle dispatch system	◎

◎：Achieved, 〇：Almost achieved

Important issues for the promotion of new business creation (Technological innovation)

JVCKENWOOD is working to create an environment in the company that will promote opportunities for innovation within the company.

No	Material issues	Objectives	Targets (FY 2021)	Status
1	Accelerate innovation	Accelerate innovation	Development of new genre products Launch of new edge AI cameras	◎
2	Managing and utilizing intellectual property	The number of patent applications related to SDGs 3 (Good health and well-being), 9 (Industry, innovation and infrastructure), and 11 (Sustainable cities and communities) will account for at least 10% of all patent applications.	◎
3	Stakeholder partnership	Collaborating with stakeholders	Succession and establishment of a social implementation platform inside and outside the university that continuously creates innovation through industry-government-academia collaboration	◎

Material issues

Objectives

Targets (FY 2021)

Status

SDGs

Accelerate innovation

Development of new genre products

Launch of new edge AI cameras

◎

Managing and utilizing intellectual property

The number of patent applications related to SDGs 3 (Good health and well-being), 9 (Industry, innovation and infrastructure), and 11 (Sustainable cities and communities) will account for at least 10% of all patent applications.

◎

Stakeholder partnership

Collaborating with stakeholders

Succession and establishment of a social implementation platform inside and outside the university that continuously creates innovation through industry-government-academia collaboration

◎

◎：Achieved, 〇：Almost achieved

Important issues for the strengthening of our business foundations (Resilience enhancement)

JVCKENWOOD is working to enhance its resilience with initiatives in fundamental domains (that support business) as a strategic base supported by robust, transparent, fair and inclusive mechanisms.

No	Material issues	Objectives	Targets (FY 2021)	Status
1	Diversity & Inclusion	Promoting active roles for women	Ratio of Women in executive positions：5.8% or more	〇
2	Addressing climate change	Reducing greenhouse gas emissions (Scope 1+2)	Reduce greenhouse gas emissions (Scope 1+2): 25.2% reduction by FY2025 from the FY2019 level	◎
3	Addressing climate change	Reducing greenhouse gas emissions (Scope3)	Reduce greenhouse gas emissions (Scope3): Scope 3 Calculation and reduction for categories 1,4, and 11	◎
4	Conserving water resources	Managing water use	Manage water consumption: 6% reduction by FY2025 from the FY2019 level	◎
5	Reducing environmental impact	Reducing wastewater and waste	Improve waste recycling rate: Achieve a recycling rate of at least 90% by FY2025	◎
6	Initiatives for risk management	Product quality & safety	Number of recalls and response costs: Maintain 0 cases/0 yen	◎
7		Corporate governance	Evaluation of the effectiveness of the Board of Directors: Conducted once a year Attendance rate at Board of Directors meetings: 100%	〇
8		Information Security	IT security training attendance rate: 92% Number of Cyber Security incidents: 2 or less	◎
9	Supply chain management	Prohibiting forced labor and child labor	Conduct human rights due diligence activities	◎