Azbil Publishes 2022 Integrated Report
— Explains Progress Management Plans and Business Activities
That Contribute “In Series” to a Sustainable Society —
TOKYO, October 20, 2022: Azbil Corporation (Tokyo Stock Exchange Code: 6845) announced that it has published the English version of its 2022 integrated report, “azbil report 2022.” The report describes the azbil Group's unique value creation initiatives that strive for corporate growth as the Group contributes "in series" to a sustainable society through its automation business. This year's report details ten material issues (materiality) to be tackled over the long term from a sustainability perspective. The report also provides concrete updates on the management plan along with various management capital (financial, human resource, manufactured, etc.) that support it. Additionally, stakeholders can find comprehensive information on strengthened corporate governance, such as the company’s transition to a company with a three-committee board structure and the new remuneration policy for management in this year.
azbil report 2022
The illustration represents contributing "in series" to a sustainable society through the long-term targets and medium-term plan
Based on the philosophy of “human-centered automation,” the azbil Group aims to contribute “in series” through its business to a sustainable society. In doing so, it strives to secure its own medium- to long-term growth and sustainably improve its enterprise value. To achieve this, the Group is engaged in working toward its long-term targets (for fiscal year 2030) and, as a first step for those, a medium-term plan (for fiscal years 2021 to 2024).
New fields and business opportunities related to automation have materialized due to changes in societal and business environments, leading to increased demand. With a focus on three growth fields*1 that have a common foundation of automation technology, this report*2 explains the azbil Group’s growth strategies to respond to such demand and the current progress of the medium-term plan. Explained also is how the Group, through its business and corporate activities, is aiming to achieve their own goals for the SDGs and drive forward ESG initiatives that secure sustainable development. Those initiatives include a policy and plans for decarbonization, assessment and improvement of the supply chain from a societal and environmental perspective, and strengthening governance through measures such as transitioning to a company with a three-committee Board structure and establishing a new remuneration policy for management. Additionally, the report discloses information about the impact (opportunities and risks), including estimated value, of climate change on the Group, in line with TCFD*3 recommendations.
The integrated report can be downloaded from the following website.
Reference Information
Contents and outline of azbil report 2022
| Forms of Value Creation |
|---|
| Content: Evolving Automation, History of the azbil Group, The azbil Group in Society, Growth Strategies, Business Structure, Sustainability Management, The azbil Group’s Value Creation Model, Financial and Non-Financial Highlights |
| The integrated report introduces the history of the azbil Group’s value creation through automation since the Group’s founding. This section covers changes and expansion of the business environment that automation is involved in, as well as growth strategies based on that information. There is also information on the Group’s ten material issues to be tackled over the long term in contributing “in series” to a sustainable society. |
| Interview with the CEO |
| Content: Interview with the CEO |
| Kiyohiro Yamamoto details progress on the medium-term plan, status of capital investment and business development geared for growth, ESG initiatives from a sustainability perspective, especially the reasoning behind transitioning to a three-committee board structure. |
| Message from the Corporate Executive for Finance and Business Management |
| Content: Message from the corporate executive for finance and business management |
| This section explains initiatives for improving capital efficiency in terms of progressing toward achieving the long-term targets and medium-term plan. Included also is information on the Group’s well-disciplined capital policies. |
| The Practice of Value Creation—Providing Value to Our Customers |
| Content: Status of our Medium-term Plan Initiatives (FY2021-24), At a Glance, Building Automation (BA) Business, Advanced Automation (AA) Business, Life Automation (LA) Business, Digital Transformation (DX), Global Network, Technological Research and Product Development, Manufacturing and Procurement, Sales, Engineering, Installation, and Services |
| Readers can find an overview of the medium-term plan and its progress, information on the azbil Group and its business segments, and insight into for business unit development and growth. There are also details on digital transformation (DX) promotion and the azbil Group’s value chain—which spans from the technological research and product development to manufacturing, procurement, sales, engineering, installation, and services—that support the three business units’ development and growth. |
| The Practice of Value Creation—Contributing to the SDGs |
| Content: The azbil Group’s Value Creation and Approach to Realizing the SDGs, Essential Goal I: Environment and Energy, TCFD-based Report—Initiative to Identify and Disclose Climate Change Impacts, Essential Goal II: New Automation, Essential Goal III: Supply Chain, Social Responsibility, Essential Goal IV: Health and Well-being Management, An Organization That Never Stops Learning |
| This section covers the effective reduction of CO2 at customers’ sites and GHG emissions reduction targets through business activities that were approved by the SBT initiative. Also covered are the goals for the SDGs to be achieved through the Group’s business and general corporate activities, as well as how climate change impacts (opportunities and risks) Group management (including estimated value), as per TCFD recommendations. |
| Strengthening the Foundation of our Value Creation—ESG Initiatives |
| Content: The azbil Group’s Approach to Sustainability, Environmental Initiatives, HR Initiatives: Investing in and Enhancing the Value of Human Capital, Quality Assurance and Safety, CSR-focused Procurement, Intellectual Property Strategy and Brand Management, Compliance and Internal Control, Risk Management, Corporate Governance, Management and Board of Directors, Communication with Stakeholders for Co-creation of Value |
| This section describes the Group's policy and structure on sustainability. There is an explanation of the relationship between major ESG issues, the azbil Group’s main initiatives, and the SDGs. Readers can also find out about ESG initiatives based on a foundation of value creation that supports sustained growth and communication with stakeholders. There are also details on initiatives for increasing value from an environmental and human capital standpoint. Also covered are evaluation results of business partners and measures to strengthen corporate governance (such as transitioning to a three-committee board structure), both taken from the perspective of initiatives to assess and improve the supply chain. |
| Corporate Data |
| Content: 11-Year Key Financial and Non-Financial Figures, azbil Group Company Data, Corporate Data and Stock Information |
| This section introduces the Group’s corporate data, stock information, and charts with key financial and non-financial data covering the past 11 years. |
*1 Azbil’s three growth fields are new automation, environment and energy, and life-cycle solutions.
*2 Please see “Contents and outline of azbil report 2022” below for details on the report’s contents.
*3 A task force, and accompanying framework, made up of central banks and financial authorities of major nations for the purpose of advancing the disclosure of impacts related to climate change.
* Posted information is accurate as of the date of announcement.
Contact
For media inquiries
Robert Jones / Mikako Takahashi
Public Relations Section, Azbil Corporation
Phone: +81-3-6810-1006 Email: publicity@azbil.com