Key Issues and Indicators / Targets

Key Issues

The Amada Group has positioned “Promotion of ESG” as one of the key priorities to achieve the “Long-Term Vision 2030,” which outlines the Amada Group’s vision for the year 2030.
To achieve this goal, We have positioned "ESG Management and the Reinforcement of the Organizational Structure" as the basic strategic policy in our medium-term business plan, and have identified the key priority issues in each area of ESG.
These key issues are aligned with the United Nations Sustainable Development Goals (SDGs), thus, achieving the targets will also contribute to the SDGs.
When identifying the key issues, we have clarified the critical priority issues by analyzing the topics highly relevant to our business environment and our stakeholders, and holding internal discussions considering the impact on business operations and the stakeholders.

AMADA Group’s key issues	AMADA Group’s initiatives	SDG target contributions
Environment Reducing CO₂ emissions Products for sale Internal business sites and plants	Installation of solar power generation facilities, switching to LED lighting at business sites Nov. 2022: Acquired SBT certification Scope 1, 2, and 3 Improved oscillation efficiency of fiber lasers Reduced setup time and improved productivity with new AI-powered NC units
Social Developing human resource capability Promoting diversity Creating a rewarding workplace	Strengthening education of expert human resources in line with growth strategies (advanced technology, DX, global, etc.) Creating an environment where women can demonstrate their abilities and strengthening leader development Flexible work arrangements and appropriate evaluation and salary systems
Governance Creating diversity on the Board of Directors Strengthening the Board of Directors’ functions Revising the officer remuneration system Ensuring thorough compliance Strengthening risk management	Ensuring sustainable growth through diverse perspectives and values Improving effectiveness through discussion and monitoring of medium- and long-term issues Compensation system that contributes to achieving medium- and long-term goals and increasing corporate value Fostering compliance awareness by revising and disseminating our Corporate Code of Conduct Reinforcing information security risk mitigation according to the progress of growth strategies

Indicators / Targets

In the "ESG Management and the Reinforcement of the Organizational Structure" of the medium-term business plan, we have established both quantitative and qualitative indicators to address the key sustainability issues.
The results against our medium- and long-term targets are as follows.

Theme	Indicator	Data Coverage	FY2023 Result	FY2024 Result	FY2025 Target	FY2030 Target
Environment	Reduction of product CO₂ emissions	Group Consolidated (vs. FY2013)	58.4% reduction	68.9% reduction (prospective)	50% reduction	50% reduction
Environment	Reduction of business site CO₂ emissions	Group Consolidated (vs. FY2013)	73.4% reduction	77.8% reduction (prospective)	70% reduction	75% reduction
Social	Education and training hours per employee	Major group companies in Japan*	47.7 hours	41.7 hours	40 hours	45 hours
	Number of female managers		15	17	24	40
	Rate of female new graduates hired		32.6%	27.6%	25%	25%
	Paid leave acquisition rate		74.3%	77.1%	80%	100%
	Childcare leave acquisition rate (male)		68.2%	82.5%	70%	100%
	Childcare leave acquisition rate (female)		100%	100%	100%	100%
Governance	Ensuring diversity on the Board of Directors	Group Consolidated	Independent external directors: 4 of 9 Female directors: 1	Independent external directors: 4 of 9 Female directors: 1 Female auditors: 1	Increase in diversity	Maintenance /Increase
Governance	Review of directors’ remuneration system	Group Consolidated	－	Introduction of stock compensation system linked to the achievement of medium-term business plan	Introduction of medium- to long-term incentive plan	Reinforcement of management structure

The major companies in Japan refer to the following five entities: Amada Co., Ltd., Amada Machinery Co., Ltd., Amada Weld Tech Co., Ltd. (On April 1, 2024, it merged with Amada and has been dissolved.), Amada Press System Co., Ltd., and Amada Tool Co., Ltd.