Challenges to Address
In this once-in-a-century period of transformation known as the CASE revolution, the environment surrounding the automobile industry is changing dramatically. We recognize that one of our most important tasks is to contribute to the realization of a decarbonized society, which is a challenge for all of humankind. We are working to reduce CO2 emissions in our business activities and are preparing to pioneer the next-generation market that will be created by the shift to EVs ahead of the rest of the industry. In order to solve these issues, we believe it is necessary to reform and further evolve our conventional business model, as well as to discover and develop diverse human resources who will lead the change. Our Group is promoting initiatives aimed at medium- to long-term growth under four new management strategies: “Action for the global environment (for climate change),” “Establishment of EV-related business,” “Improvement of the diversity of human resources,” and “Transformation of existing businesses.” Furthermore, as a foundation to support sustainable growth, we are promoting governance reforms in accordance with the Corporate Governance Code and striving to establish a highly transparent internal control system. We would like to ask our shareholders for their continued understanding and further support of our Group's corporate activities.
Action for the global environment
We will take action to reduce greenhouse gas emissions with the goal of carbon neutral by FY2050 in order to contribute to the realization of a sustainable decarbonized society. With regard to CO2 emissions from the use of electricity derived from fossil fuels, we are considering individual measures to reduce emissions based on the geopolitics of each country where our production bases are located. In addition, to reduce emissions from materials, we are working to establish production technologies that use highly recyclable aluminum as a new material. We are also studying the application of green materials in the area of conventional steel products through cooperation with automotive OEMs and materials among other initiatives. We follow the framework of the Task Force on Climate-related Financial Disclosure (TCFD) in disclosing our initiatives, including the identification of risks and opportunities to our business activities associated with climate change.
Establishment of EV-related business
Looking at the global shift to electric vehicles as an opportunity for business expansion of the Company, we will work to establish business related to EVs, focused on battery housings and motor cores, both used in EVs. In the area of motor cores, we have introduced a demonstration line at our base in Tokyo and are developing technologies for mass production with the aim of expanding our business using the know-how and technologies we have cultivated in our existing transmission business. In the area of battery housings, we have partnered with a German engineering company to develop battery housings using lightweight and highly recyclable aluminum as material. Furthermore, we are aiming to become a supplier that proposes an optimal platform for EVs that combines high rigidity and light weight at a high level based on our accumulated whole vehicle-body analysis technologies.
Improvement of the diversity of human resources
We view our human resources as our most important management resource. We are striving to create an environment and foster a corporate culture that supports the self-learning, thinking, and growth of a diverse range of human resources from Japan and overseas who are responsible for solving the Company’s issues. In addition to the industrial and mechanical personnel we have traditionally hired, we are focusing on hiring personnel specializing in new business areas such as EV-related businesses. We will also promote the acquisition of talented 29 human resources in cutting-edge fields such as IT and data science, recognizing the needs to create innovative businesses and address increasingly sophisticated cyber-attacks among others.
Transformation of existing businesses
Currently, automotive OEMs are developing EV vehicles as a response to the rapid shift toward EVs. At the same time, they are working to establish new supply chains, which is straining development and procurement resources for the industry as a whole. Under these circumstances, we aim to become a system supplier in the vehicle body area that accepts bulk orders from development, taking advantage of our accumulated whole vehicle-body analysis and production technologies. We will build new alliances with outside parties as the G-TEKT network in accordance with regions and products, and utilize production outsourcing as necessary to produce and sell whole vehicle bodies.