Message from the Sustainability Officer

We established our ESG Management Statement and announced Foster's basic stance on implementing management focused on Environment (E), Social (S), and Governance (G) initiatives, both internally and externally. Above all, we position the realization of a decarbonized society as one of the most important business challenges we face and engage in initiatives accordingly. Specifically, we have set a long-term goal, “Aiming to achieve carbon neutrality by 2050”, with a milestone of “50% reduction from a 2018 base-year by 2030” and are further accelerating our efforts. We will strive to build a sustainable society with all of the technological capabilities of the Foster Group, thus improving them to the source of a differentiating competitive advantage.

Above all, “addressing climate change”, an environmental material issue, we have also considered external factors such as customer requirements and the needs of society. We positioned it as one of our most important management priorities and are addressing the issue proactively. We have been implementing various measures to reduce CO₂ emissions, such as energy-saving initiatives, the installation of solar panels at manufacturing sites and switching to 100% renewable energy at Foster Electric’s head office. As a result, we achieved our mid-term environmental targets for 2025, a 30% reduction in absolute Scope 1 and 2 emissions and a 3% reduction of absolute Scope 3 emissions from a FY2018 base-year, one year ahead of schedule. Further, we are promoting the use of recycled materials and the reduction of the size and weight of automotive audio speakers while also developing environmentally friendly products as our next generation of speakers. We will leverage the full technological capabilities of the Foster Group to transform our products into a source of a differentiating competitive advantage.

In recent years society’s concerns regarding human rights have grown, in addition to environmental issues. As a company operating globally, we established the Foster Group Human Rights Policy with the goal of strengthening initiatives to promote respect for human rights throughout our supply chain and provide workplace environments where diversity is respected. In 2024, we implemented specific initiatives, including harassment prevention training, awareness-raising activities during Human Rights Week, and the promotion of suppliers’ understanding of human rights at supplier briefings. Through this series of initiatives, we will work together with all of our stakeholders and strive to build a supply chain that is both sustainable and resilient.

Moving forward, the Foster Group and all of us employees will integrate the financial value and trust that we have accumulated over many years of history with the non-financial value that is our strength, including intellectual capital, human capital, manufactured capital, social and relationship capital, and natural capital. In doing so, we will live up to our stakeholders’ expectations and fulfill their requests. Thus, we will continue to enhance our corporate value and increase our contribution to the sustainability of both our company and society.