KPIs and Results for Materiality “The Foundation of Our Business Activities”

Energy and Environmental Solutions (Value Chain)

Goals of Group Vision 2030

  • Implement, to the maximum extent, feasible measures concerning Scope 3, to steadily work toward the milestone of becoming Zero-Carbon Ready by 2040.
Priority matters Target indicators
(or key performance indicators)		 Fiscal 2022 results Fiscal 2023 results
  • For category (i), reduce CO2 emissions by suppliers of materials and parts
  • For category (xi), pursue a lineup of CO2-free standard solutions in all businesses
 Scope 3 (category (i)) 2,791,420 t-CO2*1 3,829,334 t-CO2*1
Scope 3 (category (xi)) 28,937,027 t-CO2*2 32,650,318 t-CO2*2
Initiatives to reduce category (i) of Scope 3 Preemptively implemented an emission survey for major suppliers Confirmed the status of carbon neutral initiatives with key suppliers

*1 花蜜直播app, 花蜜直播app Railcar Manufacturing, 花蜜直播app Motors

*2 The 花蜜直播app Group

Promotion of Human Resources Activities

Goals of Group Vision 2030

  • Strengthen and effectively use human capital (efficient allocation and human resource development) to achieve Group Vision 2030.
  • Enhance employee engagement and build a company culture in which employees can continue to work with enthusiasm.
  • Promote diversity, equity, and inclusion (DE&I) to build an organization in which a wide array of employees can maximize their individuality and potential.
Priority matters Target indicators
(or key performance indicators)		 Fiscal 2022 results Fiscal 2023 results
  • Implement the personnel system reform and human resource development in ways that enhance corporate value
  • Promote DE&I
 Ratio of employees for whom both “supportive environment” and “employee engagement” are high (employee engagement survey results) 28%*1 29%*2
Proportion of women in managerial positions 2.1%*3 *4 2.7%*5
Rate at which women, foreign nationals, and individuals with mid-career hires are promoted to senior manager or above 7%*3 8%*3
Wage differences between male and female employees 66.3%*6 62.0%*5
Rate at which male employees take childcare leave 17.9%*3 25.0%*3

*1 花蜜直播app and some domestic consolidated subsidiaries (eight companies total)

*2 花蜜直播app and some domestic consolidated subsidiaries (19 companies total)

*3 花蜜直播app, 花蜜直播app Railcar Manufacturing, 花蜜直播app Motors

*4 As of April 1, 2023

*5 The 花蜜直播app Group (domestic)

*6 花蜜直播app (non-consolidated)

Occupational Safety and Health

Goals of Group Vision 2030

  • Ensure that there are no serious occupational accidents Group-wide.
  • Reduce the need for sick leave.
  • Maintain and improve employee health.
Priority matters Target indicators
(or key performance indicators)		 Fiscal 2022 results*1 Fiscal 2023 results*1
  • Implement appropriate occupational safety and health measures: to prevent work-related accidents, to reduce the need for sick leave, and to encourage employees to improve lifestyle habits
 Lost Time Injury Frequency Rate (LTIFR) 0.30*3 0.23*3
Health score*2 3.93*3 3.91*3

*1 Calendar year basis

*2 花蜜直播app's internally generated index based on a scoring of six lifestyle habits that affect labor productivity, derived from the results of health checkups. A higher score (with a maximum of 6) reflects a healthier lifestyle.

*3 花蜜直播app, 花蜜直播app Railcar Manufacturing, 花蜜直播app Motors

Sustainable Supply Chain Management

Goals of Group Vision 2030

  • Remain aware of environmental, human rights, and other risks associated with the entire supply chain and work with suppliers to promote sustainability.
Priority matters Target indicators
(or key performance indicators)		 Fiscal 2022 results Fiscal 2023 results
  • Revise and distribute Sustainable Procurement Guidelines
  • Implement sustainable procurement survey of suppliers and review or audit based on their responses
  • Initiatives including human rights due diligence, promotion of decarbonization, and efficient use of resources, in the supply chain
 Number of major suppliers responding to our sustainable procurement survey Completion of selection of suppliers (535 companies) targeted for survey in fiscal 2023 Responses from 533 companies of the total of 685 (77.8% response rate)
Implementation status of human rights due diligence Publication of Sustainable Procurement Guidelines Identification of 12 supplier companies as targets for improvements based on the results of the sustainable procurement survey
Number of reports from our supplier hotline Completion of installation of the hotline 7 reports

Business and Human Rights

Goals of Group Vision 2030

  • No violations of human rights throughout the value chain and no complicity in human rights violations.
Priority matters Target indicators
(or key performance indicators)		 Fiscal 2022 results Fiscal 2023 results
  • Implement human rights due diligence among subsidiaries and suppliers
 Number of human rights audits conducted and revised at subsidiaries Implemented SAQ* targeting six overseas subsidiaries Implemented SAQ* targeting four overseas subsidiaries (manufacturing sites in developed countries)
Number of subsidiaries confirming prohibition of child labor and forced labor (implementation at subsidiaries where the company president has changed) 26 companies 23 companies
Number of participants in human rights training Release of educational videos on business and human rights on the company-internal portal (total number of video views in the three months following the release: 3,429 times) Participants: 10,336
(Attendance rate: 84.7%)

* Self-assessment questionnaire (self-assessment sheet)

Product Liability/Safety

Goals of Group Vision 2030

  • Deliver trustworthy and safe products and services from the customer’s perspective based on consistent quality policies covering from top management to work-site operators.
Priority matters Target indicators
(or key performance indicators)		 Fiscal 2022 results Fiscal 2023 results
  • Promote TQM*1 activities
 Certification status of quality management system*2 73.1%*3 73.1%*3
Number of TQM training participants Participants: 1,421 Participants: 5,052

*1 TQM: Total Quality Management

*2 ISO 9001

*3 Total of domestic and overseas manufacturing sites

Technological Development/Digital Transformation (DX)

Goals of Group Vision 2030

  • Deliver new products and new businesses to market which contribute to the resolution of global environmental and social challenges.
  • Successfully acquire and utilize intellectual property rights linked with business strategies.
  • Promote process innovation, increase sophistication of processes and integrate digital technologies throughout the value chain.
Priority matters Target indicators
(or key performance indicators)		 Fiscal 2022 results Fiscal 2023 results
  • Promotion of open innovation
  • Building of intellectual property strategy (strengthening of intellectual property strategy) for the co-creation of new businesses
  • Promotion of digital transformation (DX) throughout the value chain
 Number of products and cases of commercialization in three focal fields of Group Vision 2030 13 products and cases
Commercialization of products including the self-propelled industrial robot, TRanbo-7, and of the three-wheeled electric vehicle, noslisu		 22 products and cases
First delivery of the Successor-G? remotely-operated glider robot system, etc.
Number of cases of major external collaborations*1 7 cases
Projects aimed at the implementation in urban areas of leading-edge technology services such as 5G in Nishi-Shinjuku, projects demonstrating community vitalization using “Real D You,” and launch of the open-innovation hub for robotics development, the “Future-Lab HANEDA,” among other things.		 5 cases
The establishment of the Microsoft AI Co-Innovation Lab in Kobe City, in-orbit technology demonstration of the Debris Removal Unprecedented Micro-Satellite (DRUMS), etc.
Number of patents held*2 Japan: 2,916 patents
Overseas: 4,227 patents		 Japan: 3,049 patents
Overseas: 4,511 patents
R&D expenses 50.7 billion yen 53.3 billion yen

*1 Number of cases disclosed in news releases

*2 Calendar year basis

Information Security

Goals of Group Vision 2030

  • Maintain and manage cyberattack response and the protection of customer and product information with the world's highest level of security.
Priority matters Target indicators
(or key performance indicators)		 Fiscal 2022 results Fiscal 2023 results
  • Strengthen information security governance throughout the 花蜜直播app Group
 Number of employees taking information security training: 20,000 9,803 persons 17,053 persons
Frequency of targeted threat mail training: 20 times 5 times 21 times
Number of receivers of targeted threat mail training: 4,000 2,308 persons 6,876 persons
Scores of 80 points or more for all domains owned by KHI from security risk rating Percentage of domains exceeding target values: 84% Percentage of domains exceeding target values: 74%*

* Scores lower due to more stringent external assessment criteria

Compliance

Goals of Group Vision 2030

  • Monitor as accurately as possible the risks of comitting compliance violations.
  • Build an inclusive and effective compliance system tailored to given risks, and continuously manage and regularly update this system.
Priority matters Target indicators
(or key performance indicators)		 Fiscal 2022 results Fiscal 2023 results
  • Further improve compliance awareness throughout the Group
  • Strengthen anti-corruption measures throughout the Group
 Number of cases of serious fraud or scandals per year 0 cases 0 cases
Number of employees taking the Code of Conduct training Code of Conduct / Compliance Guidebook e-learning training: 17,860 persons (73.3% of target) Compliance documents read-through activities: 29,422 persons
Degree of compliance permeation in employee awareness surveys 70 points 71 points
Attendance rate for compliance training for overseas 88.8% Not implemented owing to external circumstances
Number of whistle-blowing system reports Japan: 54 reports/Overseas: 0 reports Japan: 76 reports/Overseas: 0 reports
Number of cases of compliance violations 21 cases 18 cases

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