Material issues

Set as our Vision, this is one of our most fundamental themes. Achievements from initiatives in this field are important for creating future business opportunities, including Foster Electric’s potential expansion into other businesses. They also directly impact profit.

With the popularization of next-generation automobiles such as EVs and HVs, demand for speakers for Acoustic Vehicle Alerting System (AVAS) is growing rapidly. It is expected they will contribute to society in terms of traffic safety. At the same time, this is an important field for the expansion of our businesses, including our OEM business, and for increasing revenue from one of our core product lines.

With the popularization of next-generation automobiles such as EVs and HVs, demand for speakers for Acoustic Vehicle Alerting System (AVAS) is growing rapidly. It is expected they will contribute to society in terms of traffic safety. At the same time, this is an important field for the expansion of our businesses, including our OEM business, and for increasing revenue from one of our core product lines.

We understand that securing stable revenue makes it possible to appropriately return profits to our shareholders, and it also contributes to the economies of the local communities in which we operate around the world.

With the intensification of natural disasters caused by climate change, there are concerns regarding risks of society and the supply chain being disrupted. This has made it even more important than ever to reduce greenhouse gas emissions from the entire value chain and take additional measures to address climate change. In addition, we understand that fulfilling the demand for environmentally friendly products, which is growing mainly in Europe, is an important initiative in the era of the circular economy.

The use of chemical substances and water resources as well as the generation of waste at factories increases their environmental impact, and may affect local ecosystems, creating legal and social risks. Further, while demand for the use of recycled materials is rising particularly in Europe, actions to support a circular economy are essential for the future sustainability of the business.

Promoting Foster Electric’s philosophy and developing human resources forms the foundation of our creation of value and competitiveness, significantly impacting the company’s growth and sustainable management over the mid- to long-term. We also understand that handing down the skills of our globally competitive talent and the development of these human resources are important for our future growth.

Improving employee well-being (good physical and mental health as well as happiness) has a positive impact on the company in various ways, such as by improving productivity, decreasing the turnover rate, increasing employee retention, and increasing innovation. We aim to improve employee well-being by increasing employee engagement through efforts such as workstyle reform, DE&I, safety and health and other initiatives to motivate employees to take the initiative and by providing them with opportunities for personal development.

In recent years, the management of risks throughout the value chain, including risks related to human rights and environmental considerations, has grown more important than ever. The importance of risk management is continuing to increase for manufacturers who have broad-ranging supply chains, like Foster. They must act responsibly in every process, from upstream to downstream. Requests and survey inquiries from our business partners have been increasing and growing more sophisticated. This has made it essential for us to develop an internal system for responding to them appropriately and promptly as a company.

Ensuring the safety and quality of our automotive products is a top priority, because these products are directly linked to human lives. In addition, because our supply of products directly affects customers’ production lines, it is essential that we build a system that enables us to respond promptly to unforeseen circumstances, such as rises in the prices of materials or social disruptions in the countries where the materials are procured.

An incident involving inappropriate corporate governance may not only affect our evaluation but also impact our shareholders, customers, suppliers and other stakeholders in wide-ranging way. This makes it vital for us to fulfill our social responsibilities as a company by complying with laws and regulations and ensuring that we appropriately disclose information.