Material Issues and Results

Process for Identifying Material Issues

JVCKENWOOD has revised the material issues based on the new 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. 



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 management indicators for achieving Medium-Term Management Plan VISION 2023 (FY2021)

JVCKENWOOD has established the following KPIs linked to materiality toward the realization of the new medium-term management plan, VISION 2023 and the new 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 2021)

SDGs

1

Addressing climate change

Reducing greenhouse gas emissions (Scope 1+2)

Reduce greenhouse gas emissions (Scope 1+2): Reduce by 25.2% by FY 2025 compared to FY 2019

2

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 

Manage water use

Manage water consumption: 6% reduction from FY 2019 levels by FY 2025

4

Reducing environmental impact

Reduce wastewater and waste

Improve waste recycling rate: 90% or more recycling rate by FY 2025

5

Sustainable manufacturing

Identify and reduce the amount of plastic used

Reduce the amount of plastic used

6

Supply chain management Prohibiting forced labor and child labor

Conduction human rights due diligence activities

7

Promoting active roles for employees

Promoting active roles for women

Ratio of women in executive positions: 5.8% or more

8

Initiatives for risk management

Product quality & safety

Number of recalls and response costs: Maintain 0 cases/0 yen

9

Corporate governance

Evaluation of the effectiveness of the Board of Directors: Conducted once a year

Attendance rate at Board of Directors meetings: 100%

10

Information Security

IT security training attendance rate: 92% or higher

Number of Cyber Security incidents: 2 or less

11

Preventing traffic accidents

Create value with mobility products & services

Expansion of market share in the navigation market

Market development of dashcams equipped with new functions

12

Initiatives for disaster prevention/mitigation

Create value with disaster-prevention and disaster-mitigation products & services

Received one project order for disaster prevention solutions

13

Secure and safe

community development

Create value with security products & services

Solve customer issues through image analysis and introduce products and systems that address the risk of COVID-19 infection

14

Ensuring secure and safe transport systems

Create value through telematics services

Introduce telematics services

Market introduction of CABmee, a next-generation IoT vehicle dispatch system

15

Accelerating innovation

Accelerate innovation

Develop new genre products 

Introduce new edge AI cameras

16

Manage/utilize 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.

17

Stakeholder partnership

Collaborate with stakeholders

Succeed and construct a social implementation platform inside and outside the university to continuously create innovation through industry-government-academia collaboration


Main Indicators and Initiative Results Related to Material Issues (FY 2020)

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 2020. 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

KPIs

Targets (FY 2020)

Results (FY 2020)

Status

SDGs

1

Preventing traffic accidents

Market development of driving recorders with new functions including two-cameras

Actively provide the market with driving recorders equipped with new functions, such as two-cameras, from FY 2020 (9 models are scheduled to be introduced)

Two-cameras and 360℃ camera driving recorders have been provided actively the market and increased both in terms of volume and value

 (1.5 times in terms of volume and 1.4 times in terms of value compared to the previous year)

2

Sustainable

manufacturing

Launching new environmentally friendly products

Reduce 11.6 t of plastic

Reduce 11.9 t of plastic

3

Secure and safe

community development

Plan to launch new security products/services

Plan to introduce new security products and services: 20

21 products/services+AI body temperature measurements solutions 178 cases

4

Initiatives for disaster prevention/mitigation

Plan to launch new disaster-prevention and disaster-mitigation products/services

Plan to introduce new disaster prevention and mitigation products and services: 40

66 products/services

5

Ensuring secure and safe transport systems

Plan to launch new IoT solution products/services

Plan to launch new telematics services: 5 projects 

(plus contribution to emerging countries through orders for ODA projects)

6 projects


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

KPIs

Targets (FY 2020)

Results (FY 2020)

Status

SDGs

1

Accelerate innovation

Innovation Act results (cumulative)

Collaboration in new business initiatives: 3

New business initiatives promoted and transferred to business units: 3

2

Accelerate innovation

Conducting patent idea meetings

175 meetings/year

259 meetings/year

3

Accelerate innovation

Conducting intellectual property skills training

20 sessions/year

10 sessions/year
(Fewer times due to COVID-19)

4

Stakeholder partnership

Implementing social implementation projects

through industry-government-academia collaboration

Develop plans to address the social issues caused by COVID-19 and apply for the government funding: 1 or more

23 cases


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

KPIs

Targets (FY 2020)

Results (FY 2020)

Status

SDGs

1

Diversity &inclusion

Percentage of female managers

5.0% or more

5.0%

2

Addressing

climate change

Greenhouse gas (Scope 1 and Scope 2)

 emissions / intensity (per unit of sales)

18,900t-CO₂

(it only covers emissions from domestic offices and production sites)

17,349 t-CO₂

(it only covers emissions from domestic offices and production sites)

3

Addressing

climate change)

Greenhouse gas (Scope 3)

 emissions / intensity (per unit of sales)

Improve accuracy of disclosure of FY 2019 results

(review the calculation criteria, focusing on products with large emissions)

Improve accuracy of disclosure

(650,548 t-CO₂e)

4

Manage water use

Number of water quality-related legal violations*

Keep the number of violations to zero

Keep the number of violations to zero

5

Reduce wastewater and waste

Amount of hazardous waste generated

(management of 28 hazardous substances specified under the Water Pollution Prevention Act)

Less than 0.1443 t

(emissions from domestic offices and overseas production sites)

Less than 0.6900 t

(emissions from domestic offices and overseas production sites)

6 Corporate governance Evaluating the effectiveness of the Board of Directors Evaluate annually Evaluated
7 Product quality & safety Number of product recalls and cost incurred Keep the number of recalls and associated cost for each fiscal year to zero Keep the number of recalls and associated cost for each fiscal year to zero
8 Information Security Percentage of employees receiving IT security training 90.0% 92.7%
9 Prohibiting Child Labor/ Forced Labor Human rights policy formulation Formulate the JVCKENWOOD Group's human rights policy Formulate and disclose the "JVCKENWOOD Group Human Rights Policy“

*Covering business locations in Japan and overseas