CSR Report2019

06take them into consideration when developing products. We will accelerate the commercialization of products that meet customers’ needs by encouraging development and sales to work more closely together.The SDGs*2 Committee, established in February 2018, discussed initiatives to incorporate SDGs into corporate management and contribution to addressing social issues through our core business over a period of more than a year. A large number of ideas were generated from this discussion. The experience gained by the 26 members of the Committee, who came from various divisions, in participating in the activities should prove a valuable asset in further enhancing the CSR activities of our company. We believe that they will make a signi cant contribution as our corporate structure shifts to focus on ESG.*3Contributing to the Achievement of SDGs as Part of Risk ManagementNatural disasters that affected many parts of Japan in 2018, such as torrential rain and landslides, were a threat to our business as well. For example, disruption in logistics and temporary suspension of the sales of our customers’ products affected the demand for our products. This shows how climate change due to global warming can be a signi cant risk for business overall, even if our own facilities and equipment are not directly damaged. To maintain their business activities toward the future and continue to grow, all companies need to make a concerted effort to prevent global warming. An example is initiatives to reduce CO2.Developing Creative Human Resources as a Driving Force of InnovationIn scal 2019, the last year of LIP-2019, we will focus on further deepening innovation under the new guide to action, “A Year to Address Our Challenges.”To drive innovation that brings about new value, it is important to promote human resource development and diversity.*1 If operational ef ciency improves in the future, AI and robots will replace humans in carrying out routine work. Under such circumstances, it is those people who can continue to ask themselves what they can do who will be able to succeed. We believe that developing employees with rich creativity of a kind that cannot be replaced by AI will be a driving force of innovation, even if business operations are to be increasingly automated. Promoting diversity to facilitate the improved performance of diverse employees is one of the policies to realize this. Since the establishment of the Diversity Committee in 2016, the proportion of women among new employees has increased, reaching around 30% for the past few years. A signi cant increase in female managers, especially in the development division, is expected to trigger innovation in our business through the addition of the perspectives and preferences that women bring.In addition, we seek to speed up the development of new products and increase the share of sales going to such new products. To this end, it is necessary for R&D staff to hone the ability to detect potential needs of customers and *1 Diversity: Diversity means the existence of people in different positions and with different values in a single group. When the diverse characteristics of people and groups are respected, the right people will be able to exercise their abilities in the right place, and problem-solving from a diverse perspective as well as the generation of ingenious ideas will be facilitated.*2 SDGs: SDGs stands for Sustainable Development Goals, comprising 17 goals and 169 targets. They were adopted by the United Nations in September 2015.Guide to Action for the 126th Fiscal PeriodA Year to Address Our ChallengesLINTEC INNOVATION PLAN 2019● Accelerate innovative initiatives with all Group employees focused daily on uncovering issues● Anticipate market changes and deliver products and services that delight customers● Build on CSR foundation to help achieve sustainable society

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