Messages to Stakeholders

Global issues such as climate change, finite natural resources, the spread of infectious diseases and various forms of social inequality are becoming more pressing. If we want to bequeath a sustainable world to future generations, we will need to find transformational solutions that address these and many other issues.

Advanced technologies are addressing some of these challenges today. Innovations in AI, IoT and Big Data are expected to play a key role as we move forward. Kioxia’s memory solutions will play an indispensable role in our efforts to build a sustainable future.

Our business environment is becoming increasingly challenging. Climate change, the effects of which are becoming more severe, the need to promote respect for human rights and diversity and respond to the geopolitical risks arising from escalating international tensions, have all acquired greater significance.

In the midst of these societal changes, Kioxia Group is treating sustainability as a critical area of focus within our business strategy. Throughout the fiscal year 2023, we continued with our efforts to address our priority sustainability issues, and also made progress with the key performance indicators we set based around these. These KPIs are being integrated into our mid-term management plan alongside our financial metrics and business plans.

In particular, the transition to a decarbonized society is an urgent priority for the international community, and we are experiencing strong calls for decarbonization from our customers and other stakeholders. Aiming to achieve net-zero greenhouse gas emissions resulting from our business activities and purchased energy usage by the year 2050, we have joined forces with the GX League¹ and the Semiconductor Climate Change Consortium,² strengthening our collaboration with affiliated companies and organizations. We are also intensifying our focus on human rights due diligence and human capital management, recognizing these areas as critical to the ongoing growth and sustainability of our business, particularly as they continue to draw heightened attention from society at large.

Aligned with our mission of “uplifting the world with ‘memory’”, working with our partners I will lead our sustainability activities as we work to transform and enrich the lives of people everywhere and help build a more creative and inspiring world.

Kioxia Group provides semiconductor memory products that are essential for a wide range of electronic devices such as smartphones and servers that make life more convenient for people all over the world. Our technologies, innovations, and value-added products and services will continue to meet the constantly evolving needs of society and help ensure sustainability on a global scale.

There are, however, various challenges in society that need to be addressed, such as global warming and respect for human rights. In line with this, there is growing expectation and demand for companies to reduce their greenhouse gas emissions, as stipulated in the Paris Agreement and the UN’s Sustainable Development Goals (SDGs). Collaboration with organizations like the Task Force on Climate-Related Financial Disclosures (TCFD), established by the Financial Stability Board and the Responsible Business Alliance (RBA), a coalition of companies promoting social responsibility in global supply chains, is also gaining prominence.

At Kioxia Group, we are actively pursuing sustainability initiatives in accordance with RBA guidelines, both within our own operations and throughout our supply chain. Furthermore, in the fiscal year 2023, with the aim of further strengthening sustainability management, we created groups at our main sites who are responsible for checking the progress of our sustainability initiatives, discussing and deciding on appropriate actions, and strengthening relevant activities.

Climate change is a significant concern in our semiconductor business, as it is across society at large. To respond to this, we have been proactively installing equipment that limits the emission of PFCs and other gases at our manufacturing bases. Furthermore, at our new manufacturing facilities, we have implemented highly efficient energy-saving production processes through the use of cutting-edge equipment and the introduction of AI and IoT technologies, aiming to reduce our environmental impact. Additionally, to promote the use of renewable energy, since FY2022 we have continued with the installation of rooftop solar power generation systems at our Kitakami and Yokkaichi plants. With a total generating capacity of about 7.5 megawatts,¹ these installations are among the largest of their kind at any semiconductor plant in Japan.² We plan to continue these installations at those plants from FY2024 onwards.

We comply with all relevant laws, regulations and social norms, and will continue to aspire to be a Kioxia Group that is trusted by all our stakeholders, proactively undertaking sustainability initiatives to create value for society through “memory.”