The KOBELCO Group aims to further increase its corporate value by fulfilling various social responsibilities and contributing to solving social issues through providing technologies, products and services under the framework of sustainability management based on the Group Corporate Philosophy.
The KOBELCO Group established a new corporate philosophy in May 2020. In addition to the existing Core Values of KOBELCO and Six Pledges of KOBELCO Men and Women, we newly formulated KOBELCO’s View of the Future and KOBELCO’s Mission that form an integral part of the new Corporate Philosophy.
The new Group Corporate Philosophy provides the foundation of all business activities of the KOBELCO Group and serves as the basis for all KOBELCO Group employees in making decisions.
In recent years, there has been growing interest in the social responsibilities of global companies, as represented by the targets set by the Sustainable Development Goals (SDGs). At the same time, we are seeing a surge in ESG investment, which focuses not only on conventional financial factors but also environmental, social and governance aspects, particularly among institutional investors who deal with long-term asset management. Investors are starting to assess the sustainability of corporate management with a focus on the ability to combine long-term risk management with opportunities for generating new profits in consideration of climate change and other factors.
As the world faces a variety of social issues, we have common goals to achieve, which include enhancing the sustainability of society and corporations. What is important here is that corporations need to continuously increase corporate value by providing soltuins to social issues through their technologies, products, and services. In this sense, a company cannot be considered sustainable unless it provides value to the environment and society while earning reproducible profits.
Based on this belief, the KOBELCO Group has organized the framework of sustainability management in order to present the concept of sustainability management in our Group both internally and externally in an easy-to-understand manner. We promote our sustainability management based on the Group Corporate Philosophy, classifying all activities into two categories: (1) a value creation area to achieve business growth and (2) a management foundation area to prevent damage to corporate value. This framework provides the means for employees to understand where they stand in their work in relation to the Group Corporate Philosophy and facilitates the implementation of the PDCA (Plan-Do-Check-Act) cycle to resolve issues. We also believe that it will serve as a compass for understanding how individual and organizational efforts are linked to solving social issues and contributing to society. It also provides a framework for sharing with stakeholders our ongoing value creation process being implemented in the KOBELCO Group to create economic and social value and bring empathy among them.
In promoting the sustainable management of the KOBELCO Group, the Executive Council and the CSR Committee take the initiative in implementing the management cycle for important issues and actively disclose information while utilizing various external ESG evaluation results and targets such as SDGs. The progress of these activities are monitored by the Board of Directors.
The KOBELCO Group has been making various efforts for ESG (environmental, social, and governance) in recent years. As part of our environmental initiatives, we announced the targets for fiscal 2030 on two key metrics: (1) Reduction of CO2 emissions in production processes, and (2) Contribution to reduction of CO2 emissions through technologies, products, and services, which are described in detail in the KOBELCO Group Integrated Report 2020 (pages 18-19, featurring the KOBELCO’s mission story titled "Using the Group’s Collective Strengths to Reduce CO2 Emissions"). Recognizing that reducing CO2 emissions is a top management priority, the KOBELCO Group will continue to conduct technical study to make action plans and carry them out. In terms of social activities, the KOBELCO Group established the Basic Policy on Human Rights in October 2019 and clearly expressed our commitment to respect human rights in line with international standards, recognizing that respect for human rights is an important corporate social responsibility. With regard to governance, we reviewed the roles of the Board of Directors from the viewpoint of improving the supervisory function, while taking into account the basic policy of establishing a system that contributes to the enhancement of corporate value, cooperating with stakeholders, and ensuring transparency. We will continue to improve the effectiveness of the Board of Directors.
As an ongoing theme, the KOBELCO Group has been promoting sustainability management based on the Group Corporate Philosophy with an eye to the next medium-term management plan. In order to realize "a world in which people, now and in the future, can fulfill their hopes and dreams while enjoying safe, secure and prosperous lives" together with our stakeholders, the KOBELCO Group will continue to provide solutions to the needs of society by making the best use of the talents of all employees and a variety of technologies.
We appreciate continued support and encouragement of our stakeholders.
Director, Senior Managing Executive Officer
Chair of the CSR Committee