Each employee working for the future Working together with the company for society Building Together Togethe r Ushio Group 2030 203 0 Workbook Ushio Group in 2030 What do you consider the “light solutions company” Mission that is the Ushio Group’s Vision 2030 to be? Promote the use of light as illumination and energy to You may define it as a global company seeking to solve many different problems support human well-being and the societal growth in society and on the Earth using our strengths in technology for controlling Vision “light”, the source of the value created by the Ushio Group. Or does it represent yourself and your colleagues energetically working Become a “light” solutions company every day to make the customers in front of you smile? Both are correct. More importantly, we should think about what we want to be in 2030 and beyond. ture u f e the m ou ar y o r e f r ack o see whe b k t o The goal of this workbook is to draw a blueprint for what we want to be in 2030 and a road map for making it happen. Imagine and think about your future, talk with your friends and coworkers, move your hands (add more information to the workbook) Lo and embody our bright future together! lan uture p f w a the a r D for Use this workbook to absolutely achieve Vision 2030 and look back on the present from the future! 2 3 Vision 2030 What we need in order to realize the Vision 2030 Mission Vision With the goal of establishing a sustainable society, people around the world are pursuing the Sustainable Development Goals (SDGs). Companies are increasingly expected to contribute to society from a long-term perspective. The Ushio Group promotes ESG management with a focus on three domains: the environment, society and 「 Each employee working for the future. corporate governance. Working together with ESG management requires the setting of long-term goals related to the environment, society and governance and checking the progress toward the goals. To this end, the Ushio Group has defined “the Five Management Focuses” which are the important themes for the realization of the Ushio Group’s Vision 2030. the company for society. 」 More than anything, not only our executives but also employees should proactively work on the Five Management Focuses in their workplaces. Five Management Focuses 01 02 03 04 05 Creating businesses Developing Our Diverse Creating working Sustainably reducing Building a robust with greater social value Talent to Get Closer environments where it is environmental impact management base to Our Vision easy to produce results Our pursuit of the Five Management Focuses is supported by our Management Philosophy which represents the universal values of the Ushio Group. Management Philosophy 1. Build both a prosperous Company and prosperous employees. 2. Deliver products and services that are competitive in the global market. 3. Contribute to society through superior products and 0 203 Present innovative research and development. 4. Expand profits, corporate responsibility, and competitiveness through open and free-thinking business operations. 4 5 How to proceed with the work Write them down Join us in thinking about your future and the future of our company Look back on the present from the future (Backcasting) k Wo r Env is ion w hat y ou ar e in 2030 What you are in 2030 Age Imagine it. What will your home environment be? What job will you be doing? (Your answers may not be limited to what you do in the Ushio Group) 1 What do you want to be while working and in your Future private life? I want to be like that! What do you want to be like? First, imagine what you want to be in 2030. Process 3 I'll do this during that stage. Create a road map (scenario) and make a list of the initiatives necessary for filling the gaps between the future and the present, which you learned in 2. 2 Present I need more of this. Look back on the present from the future Present Examine the ESG management poster, the concept video, memo : the e-learning program and the integrated report before starting the task! described in 1 above to identify gaps between them. 6 7 WORK Wo Refer to the illustrations and the column and write your answers. 01 1 Creating businesses with greater social value rk 2 How will you be able to contribute to the What is the gap between what you Ushio Group’s pursuit of the creation of want to be, as described in 1, businesses with greater social value in 2030? and what you are now? 2030 Present While Corporate Social Responsibility (CSR) is a strict requirement today, the Ushio Group's mission is to make the optical technology it has cultivated as “The Light Innovation Company” solve society's future problems. In addition to the creation of new businesses, the development of core businesses may also lead to innovation. All employees involved in our businesses should join our customers and partners in creating new value to pursue the 3 Draw a road map and make a list of initiatives necessary for filling the gap between 1 and 2. growth of the industry as a whole, starting with society's problems. column It is predicted that our society will look like this by 2030: ● The population of Japan has decreased by 10 ● 8 The cost of photovoltaic power generation is almost million people in comparison with its peak in 2006, equal to thermal power generation. A technology making a super-aging society where one-fifth of for artificial photosynthesis is established. the population is aged 75 or older. 一 On the other ● ● ● The growth of AI, an increase in the number of hand, the global population continues to increase immigrants and the extension of people's lifespans and it has reached 8.3 billion. leads to the creation of many jobs. The population continues to concentrate in urban ● Innovation catches up with measures to address areas around the world and the urban population is environmental issues. 60% of the global population. The editorial staff excerpted the above predictions from press releases and related materials. (As of October 2022) The ultra-smart Society 5.0 has taken shape. next_WORK 02 9 WORK Wo Refer to the illustrations and the column and write your answers. 02 1 Developing Our Diverse Talent to Get Closer to Our Vision rk 2 What is the gap between what you What do you want to be and what should you be as an employee of the Ushio Group in 2030? want to be, as described in 1, and what you are now? 2030 Present We will build and provide a solid human capital development program support each employee’s improvement. In this way, the entire Ushio Group will seek to develop our diverse talent to get closer to our vision. In the pursuit of our Vision 2030 each employee must autonomously develop their career. We will build an environment to enable each employee to envision their own career and continue working irrespective of differences in job type, job history and age, and we will provide all employees with places where the right people are assigned to right jobs throughout the Ushio Group, irrespective of where they live, their nationalities and other characteristics. 3 Draw a road map and make a list of initiatives necessary for filling the gap between 1 and 2. column Skill set and mindset that is necessary in the workforce in 2030 Mirai Jinzai Vision(Vision for the Human Resources of the Future)* published by the Ministry of Economy, Trade and Industry identifies the following four abilities and attitudes that will be increasingly needed in the future. ● ● Ability to create thing from scratch without being ● Motivation to solve global social problems tied to standard ways of thinking and stereotypes ● Ability to embrace diversity and cooperate Attitude of staying caught up on and digging with others into specific subjects *Mirai Jinzai Vision(Vision for the Human Resources of the Future), the Ministry of Economy, Trade and Industry https://www.meti.go.jp/press/2022/05/20220531001/20220531001-1.pdf The ability to learn strategically, psychology and leadership are among the most common skills that will be needed in 2030. Beyond that, by 2050, the list of skills needed will also include the ability to identify problems, predict the future accurately and innovate to create novel goods, services, methods and other things. 10 next_WORK 03 11 WORK 03 Creating working environments where it is easy to produce results Wo Refer to the illustrations and the column and write your answers. 1 rk 2 What do you want to be doing in 2030 to build a workplace environment that is capable of easily achieving good results? What kind of environment do you want to work in to achieve good results? What is the gap between what you want to be, as described in 1, and what you are now? 2030 Present 3 To realize the Management Philosophy and Vision 2030, the Ushio Group seeks to become a group of highly Draw a road map and make a list of initiatives necessary for filling the gap between 1 and 2. engaged individuals representing the way the company and its people grow together and help each other. We will globally build a diversity and inclusion (D&I) mindset to mutually recognize and respect the diverse experiences, abilities and values of diverse employees, and establish working environments that enable each employee to work energetically with robust physical and mental health. column To work energetically: psychological safety A concept named psychological safety was put forward by Harvard University professor Amy C. Edmondson in 1999. The concept spread internationally when Google released the result of a study which demonstrated that effective and productive teams have high psychological safety. The teams that were considerate for and sympathetic to others and the teams whose members were allowed to speak straightforwardly even when their views differed from other members’ achieved better results. If psychological safety is ensured in a workplace, communication between workers improves both qualitatively and quantitatively and this is consequently expected to improve worker engagement as well. 12 next_WORK 04 13 WORK 04 Sustainably reducing environmental impact Wo Refer to the illustrations and the column and write your answers. 1 rk 2 What do you want to be doing to reduce environmental impact in 2030? For that purpose, what solutions do you want to create in your company? What is the gap between what you want to be, as described in 1, and what you are now? 2030 Present We will stay committed to mitigating the impact of climate change and the environmental impact of energy, water resources and other causes of climate change within the Ushio Group and throughout the entire supply chain. Decarbonization is one of the most important themes. In addition to environmental issues, we believe it is important to address social issues such as working conditions and health throughout the supply chain. Establishing a recycling-oriented society with a reduced environmental impact that is able to coexist with nature 3 Draw a road map and make a list of initiatives necessary for filling the gap between 1 and 2. may provide clues for the creation of business opportunities. column The world's and the Ushio Group's targets for the reduction of environmental impact Global warming may aggravate natural disasters and expand damage to ecosystems. The countries and regions around the world meeting at COP26* in November 2021 reached an agreement to limit the rise in global temperature to at or below 1.5 °C to avoid a catastrophic climate crisis. This requires that global CO2 emissions be reduced 45% by 2030 compared with the 2010 figure. The Ushio Group has targeted the 45% reduction of the greenhouse gas (GHG) emissions of its offices versus the emissions in 2017 by 2030 and the entire Group's achievement of carbon neutrality by 2050. Further, we have set the target of introducing renewable energy at all of our offices in Japan by 2030, and we have also considered applying this target to our overseas offices. *Reviewing COP26, Agency for Natural Resources and Energy, https://www.enecho.meti.go.jp/about/special/johoteikyo/cop26_01.html 14 next_WORK 05 15 WORK Wo Refer to the illustrations and the column and write your answers. 05 1 2 What can you do for the Ushio Group to build a strong foundation for the management of its business in 2030? What do you want the company to have in 2030, irrespective of its size? Building a robust management base rk What is the gap between what you want to be, as described in 1, and what you are now? 2030 Present Pushing forward with 1 to 4 of the Five Management Focuses requires the Group governance linking of the management goals of the Ushio Group to the goals of the Group’s companies, the development, restructuring and replacement of Standardization of accounting practices Robust management base the businesses of the Group’s companies in pursuit of the Group’s goals and the development of infrastructure. Through the activities of the Global Consolidated Management Promotion Project, we will work to ensure the compatibility of the Ushio Group’s integrated management goals and the operational managers’ goals and to visualize these goals. Compliance 3 Draw a road map and make a list of initiatives necessary for filling the gap between 1 and 2. Information security These various foundations build a robust management base. column We want the Ushio Group to be like this: All over the world, all of the companies of the The company is highly transparent about the solutions company’ (management in solidarity). information that is necessary for its stakeholders. ★ Ushio Group work hard to ‘become a “light” ★ management of its business and it discloses the Employees understand the importance Compliance awareness has spread throughout the for maintaining it is in place. on “the 10 Action guidelines as a Member of Society”.* ★ of information security and a system ★ corporate group and each person acts ethically based * https://www.ushio.co.jp/jp/company/outline.html 16 17 Write them down Wo r k 2030 My Mission & My Vision My Mission and My Vision for 2030 For 2030, I, Mission: , have the following (What I should do) Vision : (What I want to be) Summarize your goals, problems, paths to achieving your goals and anything else that you have thought about in your work to date. Review and organize your work so far and embody what you want to be in the Ushio Group in 2030! WORK 01 WORK 02 WORK 03 WORK 04 WORK 05 18 19 Mr. Naito, the president, has a message for all of you. (Excerpted from the message from top management in USHIO REPORT 2022) It is not to back down. I am not good at some things. prosperous employees Sometimes I find myself caught up in a situation I’d like to back down from. This is when I should get In fiscal 2021, Ushio Inc. conducted its first-ever fired up and I have responsibility to the employees engagement survey. As a result, our engagement to get fired up about the issue. Understanding this, score was shown to be lower than the average all executives will face tough situations. in the manufacturing industry in Japan. We are Light has infinite potential.It is said that only a few I joined Ushio Inc. in 1986. In my work since then, I we do what we are doing. This means that to live going against one of the basic principles of our percent of this potential is currently used. As we are have been an expat in Europe and have spent a long up to expectations, we must drastically depart from Management Philosophy, “Build both a prosperous “a light solutions company”, to access that untapped time working overseas. When I was young, I often being a manufacturer that simply offers quality and Company and prosperous employees.” I take this potential, I will join Ushio’s employees in pursuing asked my bosses questions like, “Why do I need to performance. seriously. the Mission and Vision with a strong determination I made a promise to employees that I would and without wavering. I will not back down from not leave the result of the engagement survey taking on the immediate issues. do this job? ”If you have a clear objective, you can see what you should do and act autonomously. Even if you are stuck, all you have to do is to get back 20 Build both a prosperous Company and Our quest to ‘become a “light” solutions company’ unaddressed. Based on two of our management to the objective. Vague objectives and repeated Our quest to become a “light” solutions company focuses, “Developing Our Diverse Talent to Get Closer changes in direction cause organizations and involves solving social problems for the future which to Our Vision” and “Creating Working Environments employees to waste time. I was unconvinced in that lies ahead of our customers. In other words, the goal Where it is Easy to Produce Results,” I will work to regard. Years later, I was promoted to a position of our business and our actions must shift to our build a working environment that enables all of where I had subordinates. I made it a rule to clearly Mission, “Promote the use of light as illumination you to work energetically and demonstrate your set objectives for everything we did and not to and energy to support human well-being and capabilities. Reflecting on my failure to communicate waver from the intent to achieve the objective. societal growth,” and our social and economic value the executives’ wishes to employees, I will engage in Today, more than 5,000 employees of the Ushio must continue to be aligned with each other. To do direct dialogue more actively. By communicating my Group work together to push forward with reforms. this, we must start by examining social problems wishes from the perspective of each employee and I t i s neces s a ry to fl ex ibly adapt t o chang e in and shifting to a value creation flow where we listening to the honest opinions of employees, I will the business environment. As the top manager, explore optical technologies in pursuit of solutions enable each employee to identify with our Vision however, I must not waver regarding the foundation to these problems. Making a change like this is and proudly tell their friends and family members of the things that we do. The foundation consists not easy. For this reason, “the Five Management that they are working for a really good company. We of our Mission and our Vision for 2030. The former Focuses” have been defined to enable each will create a virtuous cycle in which more employees is, “Promote the use of light as illumination and executive and employee to understand megatrends experience a life of fulfillment through their work energy to support human well-being and societal and social issues and apply this in our strategies and and fully demonstrate their capabilities, thereby growth,” while the latter is to ‘become a “light” jobs. Further, they are incorporated into our ESG increasing our corporate value. solutions company’. They define the reasons that management. Aside from not wavering, I have another motto. Ushio Inc. President Chief Executive Officer 21 Ushio Group 2030 Workbook Glossary Become a “Light” Solutions Company Social and economic value Continuing to align social and economic value by solving Social value is a positive impact on the environment and social problems using our proprietary optical technology. society. Economic value is in the interests of business and To “Promote the use of light as illumination and energy to corporate growth. The idea of creating shared value (CSV) support human well-being and the societal growth,” a light put forward by U.S. economist Michael Porter is the idea of solutions company starts by addressing social problems, offers creating social and economic value through businesses solving optical solutions and comprehensively provides processes social problems through their operations. and services including hardware and many other product and services in an effort to solve the problems of customers and society. ESG management ESG stands for the environment, society and corporate governance. ESG management is a style of business management in which the company places importance on the reduction of environmental impact, solving social problems and corporate SDGs Based on the principle, “leave no one behind,” the purpose of the comprehensive set of goals is to make the world sustainable. The on ESG management while also incorporating objective external perspectives. The Five Management Focuses were formulated in fiscal 2021. Innovation A new linchpin, a new connection, a new approach, a new perspective and a new way of using something (or an act of creating them). Innovation means incorporating a totally new technology or idea into a conventional product, system, etc. to create new value and significantly change society. We ourselves create the future. and guidelines for evaluating progress. A method of drawing a blueprint for a future goal and creating and specified and summarized as our management focuses based Have we been able to make the future interesting using light? SDGs consists of 17 goals and 169 targets to be achieved by 2030 Five Management Focuses in society identified through the analysis of macrotrends in media Will light make the future interesting? goals adopted by the United Nations in September 2015. Back casting management of our business, we should focus on solving problems Have we been able to support people’s happiness and society’s growth? The abbreviation of the Sustainable Development Goals, a set of governance. For us to become a “light solutions company,” a goal in the Will we be able to ‘become a “light” solutions company’ by 2030? a road map for achieving the goal backwards from the future to Each employee working for the future Working together with the company for society the present. While forecasting starts with the present to predict the future, back casting is considered to ben? an effective way to address issues that require dramatic change (reform). In Let's make the future brighter together! recent years, back casting has been drawing attention as a way of thinking to help achieve the SDGs and its use by business enterprises in examining the significance of their existence has increased. Engagement Engagement is the degree to which an employee finds their relationship with the company and coworkers valuable and is motivated to spontaneously contribute in relationships where the company and its employees grow together. Engaged relationships are when individuals and organizations Diversity & Inclusion are united and mutually contribute to each other’s growth. Diversity and inclusion represent the importance of to cooperate with the people around them and is proud of incorporating diversity (people whose gender, age, physical working for the company. In these relationships, for example, an employee is willing ability, nationality and other attributes are diverse belonging to the same organization or group) and inclusion (human resources from different backgrounds recognizing and respecting one another and maximizing their strengths in the operation of an organization with a sense of unity) in the establishment of an organization. Supply chain A flow that starts with the procurement of raw materials and includes manufacturing, inventory control, logistics, sale and other steps before the consumer receives the product. Carbon neutrality Using the absorption of greenhouse gasses through afforestation, forest management, etc. to effectively offset the emission of greenhouse gases such as carbon dioxide from a series of artificial activities, such as the manufacturing of a product. Stakeholders Stakeholders are people who have a direct or indirect interest in something. Examples of a business's stakeholders are its shareholders, customers and employees. The definition expands to also include business partners, suppliers, governments, local communities and others. 22 23 Date of publication: November 2022 Editor and publisher: ESG Promotion Headquarters, Ushio Inc. Production cooperation: Sofia, Inc. Contact: smb-with@ushio.co.jp