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.
We extracted six important ESG areas and defined five materiality items. These five materiality items reflect our corporate strategy, 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. The five materiality items show that we contribute to solving social issues through our business, and are in a mutually complimentary and solid relationship. We consider ESG to be a crucial component as we grow to become a globally leading medtech company and contribute to the creation of a sustainable society. The distinct materiality items can vary depending on social and business changes and we continue to revise them as required.
Procedure to Establish ESG Enhancement Measures
Six Important ESG Areas:
Five Materiality Items
- Healthcare access and outcomes
- Compliance, product quality and safety
- Responsible supply chain
- Diversity and inclusion
- Carbon Neutrality and Circular Economy
To reinforce the implementation of the ESG measures, in April 2021, we designated an ESG Head to be responsible for our ESG initiatives and established the KPIs to be specified in our medium- to long-term business plan. The ESG Head comprehensively manages ESG initiatives while monitoring the implementation progress of ESG measures. The ESG Head also reports the status of that progress to the Group Executive Committee and the Board of Directors for deliberation. From FY2021, 10% of the executive officers' performance share unit (PSU), a part of our long-term incentive compensation, was linked to the results of an evaluation by an external ESG evaluation organization. In FY2022, the percentage is being 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. As of December 2021, Olympus is admitted to the DJSI World for the first time this year and in the DJSI Asia Pacific for the third consecutive year.