CSuO Message
Sustainability integrated with business strategy
Taking on the challenge of creating new mobility solutions
The Astemo Group’s mission is to “contribute to a sustainable world through mobility,” and we believe our most important responsibility is to leave a better society for the next generation. To achieve this, we have placed sustainability management at the core of our business activities.
The mobility industry is currently at a historic turning point with the transition to software-defined vehicles (SDVs). This change is an opportunity for growth, and we aim to establish ourselves as a mobility solutions provider.
Specifically, we’re building a platform for controlling the entire vehicle and establishing a simulation environment that utilizes virtual digital models as well as generative AI.
Furthermore, we’re working to create new mobility value by utilizing integrated data through the establishment of Astemo Cypremos, which is developing a virtualized environment for the Out-Car domain, and by strengthening our data acquisition and analysis infrastructure.
Furthermore, to respond to rapid changes in the industry, such as SDVs and electrification, we are working to enhance our customer service and product development, as well as the quick decision-making and response capabilities of our production sites. To support these efforts, we are redesigning our business processes by promoting DX, such as enterprise resource planning (ERP) integration, and working to strengthen our business foundation with a unique operating model.
Our basic policy is to strategically reallocate the time and resources saved by productivity improvements to investments for future growth, and going forward, we aim to achieve even greater added value through the fusion of operational technology (OT) and information technology (IT).
Promoting sustainability management based on materialities
FY2024 marked the inaugural year of full-scale sustainability management for the Astemo Group. We established a new Sustainability Strategy Group and regularly hold committees with the participation of executives, while also working to flesh out our company-wide strategy and action plan.
Among these efforts, identifying our materiality issues was of particular importance. In identifying materiality issues, we engaged in thorough dialogue including a survey of approximately 9,000 employees and a global workshop involving over 100 participants. We also received valuable feedback from numerous stakeholders, including external organizations focused on sustainability, academic institutions, local communities (municipalities), and customers. Based on this feedback, we identified nine material issues (see page 17). These material issues are the result of discussions from diverse perspectives on how the Astemo Group can contribute to society, and will form the core of our future management.
As both the Chief Sustainability Officer (CSuO) and Chief Strategy Officer (CSO), I am responsible for the entire process from formulating to implementing management and business strategies. While envisioning our ideal future—our “North Star,” so to speak—I will implement specific measures to achieve it.
Promoting decarbonization across the entire value chain
The Astemo Group is advancing an integrated approach to business and environmental strategy, positioning the realization of a decarbonized society as a key responsibility. We are actively working to reduce our own environmental footprint and optimize our entire value chain.
For Scope 1 and 2, we’re advancing efforts to introduce renewable energy and promote energy conservation, while also exploring the use of clean energy sources such as hydrogen. We have achieved 100 percent renewable energy at all domestic plants, and achieved Science Based Targets (SBT) certification in November 2023.
Regarding the reduction of Scope 3, that is, CO2 emissions across the entire value chain, we contribute to society-wide CO2 reduction by promoting the adoption of compact, lightweight inverters and other electrification products. We’re also working with thousands of suppliers to expand the use of recycled and environmentally friendly materials. Based on these efforts, we made a “GX Acceleration Declaration” in the GX League led by the Ministry of Economy, Trade and Industry, earning recognition at the Gold Grade level.
Fostering a value creation culture through the use of non-financial KPIs
Advancing sustainability management requires a balanced pursuit of three values—economic, environmental, and social. To achieve this, it is essential to set and utilize non-financial KPIs alongside financial ones.
At the Astemo Group, we are advancing the identification of both financial and non-financial “value creation levers” that are intrinsically linked to corporate value—including key indicators such as human capital and carbon neutrality.
By clarifying the relationship between the KPIs to be achieved through daily operations and overall corporate value, we aim to share this framework across the organization as a unifying narrative that resonates with every employee. We believe that fostering a sense of purpose—where individuals recognize that their daily work contributes directly to value creation—will inspire autonomous action and serve as a driving force toward the realization of “One Astemo.”
By sharing this awareness of value creation, we aim to embed sustainability management not as a temporary initiative, but as the culture of the Astemo Group.
Embodying the spirit behind our name—Advanced Sustainable Technologies for Mobility—the Astemo Group is committed to realizing sustainability management under the unified vision of “One Astemo” by fostering a culture in which every employee contributes societal value through their daily work.
Koichi Tamura
Senior Vice President
CSO, CDO, CSuO, and General Manager of Corporate Strategy & Planning Functional Division
Astemo, Ltd.