The following comments represent our assessment of Omron’s sustainability performance and build on the analyses we have conducted for Omron over the past few years as part of its participation in the Global Leadership Network (GLN). We have also included some suggestions pertaining to report (organization, information, focus etc.) below:

Strategic design.

Omron has evolved its approach to defining material environmental/ social issues and should be commended for further refining its methodology in this regard. Omron’s CSR team has continued to engage with external stakeholders to discuss the substantive issues of the day and the role of CSR in addressing them. We look forward to observing how Omron continues to progress its engagement strategy with external stakeholders, and how it uses such engagement to shape the company’s approach to managing specific issues while also adding value to the business.

Suggestions (in relation to the report): Consider organizing the report by material social/ environmental issue to help the reader better assess the importance of specific information and treat it as relevant for assessment.

Commitment.

Omron’s commitment to realizing the Optimization Society is clearly important in today’s business context and builds on a strong set of core values governing the company’s role in society. It will be particularly useful to see specific discussion in future reports on how the commitment to the Optimization Society relates to commitments on individual environmental and social issues. For example, Omron’s discussion on CO2 emissions is very useful. It will be helpful to understand its general position on climate change.

Suggestions (in relation to the report): Consider including a clear articulation of the company’s commitment to addressing specific environmental/ social issues. We see that companies that define climate change as a material issue use reports to specify clear carbon reduction targets, and are now discussing their opinion and involvement in climate change policy. Given Omron’s endorsement of the UN Global Compact principles, Omron may consider situating its performance (and impacts) within the Global Compact framework.

Partnerships/ supply chain.

Omron has powerful systems in place for managing the performance of its suppliers, particularly in regards to compliance issues and environmental performance. The company also has partnerships in place to help address social/ environmental issues (e.g. the Yuragi Initiative). As Omron continues to partner with civil society groups and external stakeholders, we will look forward to seeing more information on the results such partnerships bring to society and the business.

Suggestions (in relation to the report): Consider including anecdotes from Omron’s partners to highlight the positive impacts their relationship has had on the business and its material issues.

Ａt last

There have clearly been some notable successes in terms of Omron’s sustainability efforts over the past year. Going forward, Omron should continue to outline challenges it has faced in addressing sustainability issues and the approach it has taken to overcome these challenges. Indeed, such candor will only help create ever greater trust with stakeholders.

Once again, I congratulate Omron on its commitment to continuously improve its sustainability performance. I look forward to reviewing the progress it makes over the next 12 months.

Steve Rochlin Head of AccountAbility North America