IWATSU will be reborn as a company that adapts to social changes and provides more value to all stakeholders
President & Chief Executive Officer
■ Sustainability and the medium-term management plan
We face an increasingly complex range of social issues, including the COVID-19 pandemic, economic and human rights problems associated with rising geopolitical risk, and natural disasters. At the same time, our role as a company is becoming greater and greater as we look to achieve the “Sustainable Development Goals (SDGs).”
We have formulated a four-year medium-term management plan, “REBORN,” with fiscal 2022 as the starting point, to express our will to transform our company and contribute to society through our businesses, based on our recognition that the mission of the IWATSU Group is to adapt to the above changes in society and contribute to solving issues through communications, testing and measuring, and printing systems.
In this medium-term management plan, we view our businesses and sustainability as a single entity, and set forth our basic policy to pursue enhancements to corporate value and sustainable growth by promoting ESG management.
In order to make this basic policy a reality, we have identified our key sustainability issues in relation to each of the three aspects of the Environment (E), Society (S), and Governance (G). We have also determined themes for our activities connected with each type of key sustainability issues, as we work to achieve our 2030 vision, and the IWATSU Group as a whole is working to promote these themes.
■ Our vision for a new “IWATSU”
The basic policy set forth in our medium-term management plan also includes: “concerted efforts to reduce fixed costs” and the “execution of growth strategies that anticipate market changes, such as rising environmental awareness, globalization, and the shift from ownership to use.” These aspects of our basic policy incorporate our strong desire to achieve sustainable growth and for IWATSU to be “reborn as a company that provides more value to all stakeholders.” Additionally, in order to promote constructive dialogue with all stakeholders, we have also committed to strengthening our efforts related to sharing information and investor relations, including the status of ESG and sustainability initiatives.
By promoting our medium-term management plan, the IWATSU Group will fulfill our responsibility to achieve a sustainable society and enhance our financial value, in terms of ROE, market capitalization, and other indicators. We will continue to be a company with social value. That is our vision for a new “IWATSU.”
■ Transformation Into a company that solves social issues
We have set forth the following growth strategy themes in our medium-term management plan: “growth of test and measurement equipment,” “growth of business communication systems,” and “new area development.” We determined these themes by determining that by transforming into a company that solves social issues, we will also achieve our own sustainable growth.
First, in “growth of test and measurement equipment,” we will take steps to achieve growth in the power electronics-related test and measurement equipment business, centered on power semiconductors and magnetic materials test and measurement equipment, a strength of the IWATSU Group. Power semiconductors and magnetic materials are used in environmentally-friendly vehicles, such as hybrid cars and EVs, as well as power conditioners for renewable energy power generation, and test and measurement equipment supports research and development in these areas. The IWATSU Group will take steps to expand our line-up of related products, thereby promoting their development as solutions and contributing to the achievement of a carbon neutral society.
Next, in “growth of business communication systems,” we will focus on the business of promoting DX in the office and cloud-based services for contact center systems. Through these efforts, we will enhance our contribution to customers’ business reforms, the achievement of a diverse range of workstyles, and productivity improvements.
Finally, in “new area development,” we will strengthen foundational technical research in voice recognition, AI, etc., based on wireless technology, as well as the development of cutting-edge technologies in areas such as the IoT, energy, healthcare, and materials. We will take steps to develop our businesses in a way that prioritizes solutions to social issues, including the expansion of the IoT business through the integration of business communication systems and test and measurement equipment technologies, and the creation of new markets that utilize chemical technologies developed through our printing systems devices.
■ Promotion of ESG management
The cross-Group ESG Subcommittee has identified areas of key sustainability issues related to the promotion of ESG management after repeated deliberation concerning the “ideal state of sustainability in the IWATSU Group,” “businesses where we can contribute to the achievement of a sustainable society,” and “social issues where we can leverage our strengths to find solutions.”
Within these areas of key sustainability issues, we are focusing most on our response to climate change problems. I feel that the awareness of our officers and employees has risen in this regard as we have begun substantive initiatives based on the reduction of CO2 emissions across the supply chain as a whole to obtain SBT certification and our support for the TCFD recommendations. Human rights problems in business are also an important issue that we must address as a matter of priority for the IWATSU Group, as a company procuring components and materials from countries around the world. At present, we are accelerating concrete initiatives, such as the development of guidelines.
The IWATSU Group will continue contributing to the sustainability of society and the achievement of the SDGs by engaging in activities aligned with our areas of key sustainability issues, and practicing and promoting ESG management.
■ To stakeholders
Going forward, we will meet the expectations of all stakeholders, by promoting ESG management and creating significant new value in a way that only the IWATSU Group is capable of.
I sincerely hope that the IWATSU Group can rely on your continued support as we are REBORN into our new form.