Toshiba Corporation - ESG Overview Report, 2021

Environment, Social and Governance (ESG) at Toshiba Corporation

Toshiba is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan, established in 1935. Currently, it ranks number 97 on FORTUNE 500 companies list.

The company has been focusing on sustainability due to effective due diligence and better investment decision for the company as well as relevant stakeholders. The company is closely working and updating its progress on climate change and circular economy. Moreover, the company gives respect for human rights, nurtures people and technology, encourages every group of employees to feel pride and fulfillment in their work, and harnesses creativity and technology in collaborating with business partners to realize rich value.  On the governance front, the company has to strengthen governance and cyber resilience. The company aims to improve its operations with respect to the United Nations’ Sustainable Development Goal (UNSDG) framework.

ESG Trends

The company has various ESG trends around innovation, for example, SCiB™ rechargeable battery which is highly safe has a long lifetime, and recharges fast has been developed to improve the product performance, thereby improving social product responsibility. SCiB™ helps reduce fuel consumption as well as reduce CO₂ / NOx emissions, reduces life cycle costs and improves operating rates, saves space in battery systems, and enables the construction of highly safe and reliable battery systems which also contributes to reduced emissions and improved environmental sustainability.

The company’s power electronics wing has been focusing on environment like using MOSFET’s, silicon carbide (SiC)- a new material optimized for low-loss and miniaturization of power converters for the industry, such as inverters and converters for railway vehicles and photovoltaic inverters.  In terms of health and safety, Toshiba Corporation has been able to reduce its injury rate across the company’s group operations since 2019. Furthermore, in terms of diversity and inclusion, the company has targets to achieve diversity within its operations through a structured approach through in-house training and community development initiatives. The company also aims to achieve a fair representation of women across its workforce which has marginally increased compared to 2019.  The company also aims to provide a flexible work system and promotes this through initiatives.

In terms of governance, the company has been able to maintain a fair representation of independent directorship on its board since 2019. Furthermore, the company has a structured approach to mitigate cybersecurity risks and has targets to improve the maturity of cybersecurity management. The company also has a Business Continuity Plan to protect its operations from unforeseen disasters.

Future of ESG at Toshiba Corporation

In 2021, Toshiba Corporation’s revenue was USD 28.37 billion. The company envisions various aspects including sustainability as one of the main agenda, with promising innovation and product development side supporting sustainability, the company have a favorable future ahead.