Olympus Group ESG
Basic Approach and Policy
All the activities undertaken by the Olympus Group are to respond to requests and expectations from society and to fulfill our duties and responsibilities under our Corporate Philosophy. We understand that Olympus as a corporation deserves to continue to exist only when we fulfill our responsibilities through dialogs with stakeholders-including customers, suppliers, shareholders, investors, employees and their families, local communities, and international society.
In the Corporate Strategy announced in November 2019, we stated: "In accordance with our Corporate Philosophy, Olympus strives to uphold and expand our responsibilities to society and stakeholders, enabled by enhancing our ESG initiatives," and extracted six important ESG areas and defined four materiality items. These six important ESG areas and four materiality items reflect our management strategies, benchmarks by stakeholders and an external ESG evaluation organization's opinions, and have been established by the Group Executive Committee and the Board of Directors through the procedure illustrated in the figure shown below. In May 2021, we added "carbon neutral society and circular economy" as our fifth materiality items. This addition was incorporated through our recognition that it is an urgent social issue to address pollution, climate change caused by excessive environmental impacts, and other influences on the ecosystem. The distinct materiality items can be varied depending on social and business changes and we continue to revise them as required.
Procedure to Establish ESG Enhancement Measures
Six Important ESG Areas and Five Materiality Items
Six Important ESG Areas:
Five Materiality Items
- Healthcare access and outcomes
- Compliance, product quality and safety
- Responsible supply chain
- Diversity and inclusion
- Carbon Neutral Society and Circular Economy
To reinforce the implementation of the ESG measures, in April 2021 we designated an executive officer to be responsible for our ESG initiatives and established the KPIs to be specified in our medium- to long-term business plan. The ESG executive officer comprehensively manage ESG initiatives while monitoring the progress of ESG measures implementation. He also reports the progress status to the Group Executive Committee and the Board of Directors for deliberations. From FY2021, 10% of the executive officers' performance-based stock remuneration, a part of our long-term incentive remuneration, was linked to the evaluation results by an external ESG evaluation organization. From FY2021, 10% of the executive officers' performance-based stock remuneration, a part of our long-term incentive remuneration, was linked to the evaluation results by an external ESG evaluation organization. In FY2022, the percentage was increased from 10% to 20% to reinforce the commitment of management. We adopt the Dow Jones Sustainability Indices (DJSI) as its benchmarks, which are reputed to be more reliable and have a wider coverage than other external ESG criteria. We have been listed in the DJSI Asia/Pacific Index for two consecutive years.