Material Issues and KPIs

As part of strengthening the sustainability management of THK, and in light of the most recent state of society and changes to our internal environment, an interdepartmental project to review material issues was launched in 2021.
Specifically, project members deliberated together about the social issues that surround THK, evaluating and examining these issues based on two axes: impact on business (horizontal axis) and societal demands and expectations (vertical axis). The result was graphed into a matrix, and 13 topics under four themes received final approval by the Board of Directors.

Defining Material Issues

Theme	Topic	Head department	Metrics and targets	Scope	Target year	2025 results	Status
Strengthening of a sustainable value creation platform	●Corporate governance	Risk Management Department	Continue conducting annual evaluations of the effectiveness of the Board of Directors.	THK Japan	2026	Annual evaluation performed by a third-party organization.	Good
	●Compliance	Risk Management Department	Strengthen the diversity of internal reporting contacts and investigators.	THK Japan	2026	Evaluated current systems in light of the revised Whistleblower Protection Act to determine if changes were necessary.	Adequate
	●Risk management	Risk Management Department	Continue conducting annual risk assessments.	THK Japan, Group companies in Japan, Group companies outside of Japan	2026	Annual assessment performed for 29 departments within THK Japan and 29 Group companies within and outside of Japan.	Good
Realization of a diverse and meaningful work environment	●Respecting and considering human rights	Human Resources & General Affairs Department	Achieve a 100% completion rate for online human rights training.	THK Japan	2026	Completion rate: 98.30%	Adequate
	●Promoting diversity	Human Resources & General Affairs Department	Achieve a ratio where women constitute 20% or more of new hires in the sales, administrative, and engineering divisions.	THK Japan	2026	Female employee ratio: 13.9%	Inadequate
	●Occupational health and safety	Human Resources & General Affairs Department	Achieve and maintain a severity rate of 0.01 or less and an incident rate of 0.50 or less.^*1	THK Japan (Production Division)	2026	Severity rate: 0.00 Incident rate: 0.38	Good
	●Talent development	Human Resources & General Affairs Department	Maintain a 95% or higher completion rate for basic data utilization training.	THK Japan	2026	Completion rate: 97.82%	Good
Decarbonization and realization of a recycling-oriented society	●Climate change	Risk Management Department	Reduce Scope 1 and 2 CO₂emissions to 50% of 2018 levels. (2018 emissions: 106,514 tons, 2030 target:53,257 tons)	THK Japan, Group companies in Japan	2030	Scope 1 and 2 CO₂ emission: 66,078 tons (38% reduction)	Good
	●Sustainable procurement	Risk Management Department	Distribute sustainable procurement guidelines to suppliers and conduct interviews and surveys through questionnaires.	THK Japan	2026	Continued to distribute the current version of the CSR Procurement Guidelines to suppliers. Conducted four supplier interviews based on the current version of the CSR Procurement Guidelines. Currently revising sustainable procurement guidelines.	Adequate
	●Recycling and conserving resources	Risk Management Department	Maintain zero emissions. Zero emissions: An emissions rate (volume of waste disposed/total discharged) of less than 0.50%.	THK Japan, Group companies in Japan (Production Division)	2026	Maintained zero emissions (emissions rate: 0.28%).	Good
	●Managing harmful substances	Risk Management Department	Distribute green procurement guidelines and obtain certificates of non-use.	THK Japan, Group companies in Japan, Group companies outside of Japan	2026	Obtained certificates of non-use that conformed with our green procurement guidelines from 258 companies.	Good
Creating an affluent society and solving social issues through innovation	●Solving social issues through innovation	LM System Planning and Development Division	Develop and provide new products and services (including DX and other solutions) for aerospace, automotive, logistics, medical, and other consumer fields.	THK Japan, Group companies in Japan, Group companies outside of Japan	2026	Developed and started service for the GX Solution (GX: green transformation). Engaged in activities to expand sales of transfer robots to logistics centers. Developed a new seismic isolation platform for vertical furnaces used in semiconductor manufacturing. Performed trials of a harvesting hand for the agricultural industry.	Good
	●Quality and safety of products	Quality Assurance Department	Promote the appropriate operation of quality management systems, including ISO 9001 and IATF 16949, and the maintenance of certifications at relevant locations.	THK Japan	2026	For ISO 9001: Upper management reviews and internal quality audits (at five plants) were performed and Japan Quality Assurance Organization (JQA) certification was renewed. For IATF 16949: Regular IATF audit was performed (Automotive & Transportation Headquarters).	Good

*1 Severity rate: The number of lost workdays multiplied by 1,000 and divided by the total number of hours worked.
Incident rate: The number of deaths or injuries multiplied by 1,000,000 and divided by the total number of hours worked.