TDK recognized as Leader and awarded an A ranking in the CDP Supplier Engagement Rating for the third consecutive year

Jun 04, 2023

March 17, 2023

TDK Corporation (TSE:6762) has been recognized as a Leader, receiving an A ranking, in global environmental non-profit CDP's Supplier Engagement Rating 2022. CDP works on environmental issues such as climate change.

In the Supplier Engagement Rating, the answers provided to the CDP Climate Change Program are used to evaluate the companies by items related to governance, targets, estimation of greenhouse gas emissions in their corporate value chain (SCOPE3), and supply chain engagement. TDK was praised because it promotes environmental activities working with suppliers and discloses SCOPE3 emissions. CDP is a non-profit that drives companies to engage in environmental issues such as climate change, water security resources protection, and forest preservation and to disclose information, based on requests from global institutional investors who are very interested in environmental issues. In 2022, TDK was selected as Supplier Engagement Leader, one of the top 8% of companies evaluated for their engagement with suppliers on climate change. Inclusion on this list demonstrates that a company is proactively working with their suppliers to ensure that sustainability is present in every part of their value chain. In addition, TDK has received an “A-“ranking in the CDP climate change category and an ‘A List’ for focusing on water security for the third consecutive year.

TDK has established the TDK Environmental Charter, consisting of the “Basic Principle on the Environment” and the “Basic Policy on the Environment”, which make up the entire group's environment policy aimed at contributing to the sustainable development of society. In line with the Charter, TDK formulated its Environmental Vision and Environmental Action Plan as a fundamental framework for implementing specific environmental activities and initiatives. To pass on a healthier global environment to the next generation, TDK aspires to lead society as it carries out environmental protection activities quickly and effectively with special consideration for climate change and biodiversity. For its supplier engagement initiative in particular, under TDK's purchasing principle "Global Partnership Purchasing”, TDK has created “TDK Green Procurement Standard” to work together with suppliers to enhance environmental activities, such as checking suppliers' environmental activities and providing feedbacks on the results, furthermore conducting dialogue with environmental department personnel to select supplier awards.

In TDK’s recent medium-term plan, “Value Creation 2023,” the pursuit of “social value,” which aims at contributing to the realization of a sustainable society by solving social issues, is set as an objective for all business activities. TDK will implement a cycle of increasing “commercial value” and “asset value” while furthering “social value.”

To realize 2CX (customer experience and consumer experience) by providing solutions that satisfy customers and consumers and experiences that exceed expectations, the TDK Group aims to become an invaluable presence by aiding energy transformation (EX) and digital transformation (DX), two major social issues.

Based on this principle, the TDK Group will carry out environmental protection activities quickly and effectively with special consideration for climate change, biodiversity, and the finitude of resources. Through its innovative core technologies and solutions, the company will advance the development of a sustainable society, helping to ensure that future generations worldwide have access to clean and safe water supplies.

The full list of this year’s Supplier Engagement Leaders is available at this link, along with other publicly available company scores:https://bit.ly/SERLeadership22https://www.cdp.net/en/companies/companies-scores

TDK Corporation is a world leader in electronic solutions for the smart society based in Tokyo, Japan. Built on a foundation of material sciences mastery, TDK welcomes societal transformation by resolutely remaining at the forefront of technological evolution and deliberately “Attracting Tomorrow.” It was established in 1935 to commercialize ferrite, a key material in electronic and magnetic products. TDK‘s comprehensive, innovation-driven portfolio features passive components such as ceramic, aluminum electrolytic and film capacitors, as well as magnetics, high-frequency, and piezo and protection devices. The product spectrum also includes sensors and sensor systems such as temperature and pressure, magnetic, and MEMS sensors. In addition, TDK provides power supplies and energy devices, magnetic heads and more. These products are marketed under the product brands TDK, EPCOS, InvenSense, Micronas, Tronics and TDK-Lambda. TDK focuses on demanding markets in automotive, industrial and consumer electronics, and information and communication technology. The company has a network of design and manufacturing locations and sales offices in Asia, Europe, and in North and South America In fiscal 2022, TDK posted total sales of USD 15.6 billion and employed about 117,000 people worldwide.

CDP is a global non-profit that runs the world’s environmental disclosure system for companies, cities, states and regions. Founded in 2000 and working with more than 680 financial institutions with more than 130 trillion USD in assets, CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impacts, and to reduce greenhouse gas emissions, safeguard water resources and protect forests. Nearly 20,000 organizations around the world disclosed data through CDP in 2022, including more than 18,700 companies worth half of global market capitalization, and over 1,100 cities, states and regions. Fully TCFD aligned, CDP holds the largest environmental database in the world, and CDP scores are widely used to drive investment and procurement decisions towards a zero carbon, sustainable and resilient economy. CDP is a founding member of the Science Based Targets initiative, We Mean Business Coalition, The Investor Agenda and the Net Zero Asset Managers initiative.