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Sustainability Strategy

Approach to Sustainability

At Konica Minolta, sustainability means "contributing to the realization of a sustainable society and driving corporate growth by resolving environmental and social challenges through our business operations." In short, we believe that tackling environmental and social issues as economically viable business endeavors is the key to achieving sustainable growth for our company.

As environmental and social challenges such as climate change, resource constraints, labor shortages, and disparities in employment, education, and opportunities for creativity become increasingly apparent and severe, policies and regulations, customer requirements, technologies and industries, and market and investor assessments are changing significantly. These changes in the external environment pose risks to the business through changes in laws and regulations, international standards, and customer requirements. At the same time, by helping customers and their supply chains address the challenges they face, these changes also present opportunities to provide new value, such as enhancing the value of existing businesses and creating new businesses.
Konica Minolta appropriately identifies these risks and opportunities and assesses their impact on the business and their importance. By leveraging the strengths it has cultivated—“Customer Relationships,” “Technology Integration,” and “Diverse Talent”—Konica Minolta promotes co-creation with customers through its businesses. The basic approach of its sustainability strategy is to pursue both contributing to the realization of a sustainable society through this co-creation and achieving sustainable business growth for Konica Minolta.

Approach to Sustainability
Pyramid diagram showing that social issues (a declining birthrate and aging population, a shrinking workforce, climate change and resource depletion, rapid changes in the international situation, and growing information security risks) and shifts in the market (rising needs for labor saving and productivity, progress toward a decarbonized society and circular economy, advances in AI, and stronger cybersecurity measures) together create both opportunities for Konica Minolta to add value and create new businesses, and risks that require responses to regulations, international standards and customer requirements

To put this vision into practice, we established the "Konica Minolta Group Charter of Corporate Behavior" and created the accompanying "Guidance for the Konica Minolta Group Charter of Corporate Behavior" to foster a consistent global understanding and application across all group entities. These documents respect international norms and principles, including the UN Global Compact.

Materiality

Approach to Materiality

In 2020, envisioning what a “sustainable society” should look like a decade later in 2030, Konica Minolta identified five material issues as environmental and social issues that it should address. Backcasting from that vision, we defined “what we should do now.” For each materiality, we set a “Vision for 2030” that indicates the direction of medium- to long-term value creation.

Backcasting Diagram
Diagram of the approach of backcasting from the 2030 vision of solving social and environmental issues to determine what must be done now, and identifying the five materiality issues

Materiality Assessment and Identification Process

STEP 1

Listing Potential Issues

We compiled a broad list of environmental, social, and economic issues by referring to international frameworks and guidelines such as the GRI Standards, the SDGs, and SASB, as well as macro trends in various specialized fields.
In compiling the list, we identified issues based on the Stockholm Resilience Centre’s “SDGs Wedding Cake Model,” while keeping in mind the relationships among “ECONOMY,” “SOCIETY,” and “BIOSPHERE.”
The scope of this process covered business areas with which Konica Minolta is or may potentially be associated, as well as their supply chains and value chains. Issues were identified taking into account environmental and social changes, regulatory and policy trends, and requests from stakeholders.

Referenced Frameworks, Guidelines, and Standards
  • GRI Standards
  • SASB Standards
  • ISO 26000
  • Sustainable Development Goals (SDGs)
  • Ten Principles of the United Nations Global Compact
  • OECD Guidelines for Multinational Enterprises
  • Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) (Final Report)
  • Macro trends in various specialized fields, including climate change (Paris Agreement, European circular economy, etc.)
  • IFRS Foundation "International Integrated Reporting Framework"
  • Stockholm Resilience Centre "SDGs Wedding Cake Model"
Stakeholder Dialogue, Feedback, and Requests
  • Investors: Presentations and direct dialogue at IR briefings, business briefings, etc., and requests made through various ESG surveys
  • Customers: Engagement through bidding requests and the provision of solutions
  • Business Partners: Dialogues with companies participating in the "Environmental Digital Platform"
  • International NGOs/NPOs: Dialogue with CDP and other organizations

STEP 2

Issue Identification and Materiality Assessment

From the issues listed, we identified areas particularly relevant to Konica Minolta and conducted a materiality analysis (Materiality Assessment). A characteristic of Konica Minolta’s materiality analysis is that risks and opportunities are assessed separately. By assessing both risks and opportunities, we put into practice what companies are expected to do in addressing environmental and social issues: view social issues as opportunities and achieve business growth by solving them through business. In the materiality analysis, each issue was evaluated on a five-point scale along two axes—“Importance to Stakeholders (customers, business partners, shareholders and investors, employees, etc.)” and “Importance to Business (financial impact)”—and prioritized accordingly.

Opportunities Matrix
Materiality Assessment Matrix
Materiality assessment matrix for opportunities, mapping each issue on two axes rated on a five-point scale: importance to the business (contribution to profit) on the horizontal axis and importance to stakeholders on the vertical axis
Materiality No. Content
Improving Fulfillment in Work and Corporate Dynamism 1 Improving customers’ productivity and creating time for creative activities by providing “work style” solutions using digital technologies
2 Supporting improvements in customers’ productivity and a shift toward creative work through workflow and supply chain transformation
3 Providing innovative services by unlocking the potential of “talent,” the source of new value creation, and becoming an organization where “individuals thrive”
4 Supporting the establishment of a new industrial foundation that expands and carries forward the human capabilities of “seeing, judging, and adjusting”
Supporting Healthy, High-Quality Living 5 Transforming nursing care workflows and creating a workforce for the nursing care industry
6 Contributing to early diagnosis, reduced healthcare costs, and improved Quality of Life (QOL) through imaging and healthcare IT services
Ensuring Social Safety and Security 7 Ensuring the quality of customers’ products and services through advanced measurement and inspection
Addressing Climate Change 8 Reducing energy consumption and CO2 impacts at customer companies and in society through workflow and supply chain transformation
9 Providing measurement and inspection technologies and materials that support the commercialization of new materials, new energy, and new processes
Using Limited Resources Effectively 10 Reducing resource consumption and promoting the effective use of resources at customer companies and in society through workflow and supply chain transformation
11 Providing measurement and inspection technologies and materials that support the commercialization of new materials, new energy, and new processes
Risk Matrix
Materiality Assessment Matrix
Materiality assessment matrix for risks, mapping each issue on two axes rated on a five-point scale: importance to the business (contribution to profit) on the horizontal axis and importance to stakeholders on the vertical axis
Materiality No. Content
Improving Fulfillment in Work and Corporate Dynamism 1 Mismatches between internal skills and work resulting from rapid changes in digital technologies such as AI and the surrounding environment
2 Declining employee autonomy and capacity for innovation due to delays in creating an environment that emphasizes engagement
Ensuring Social Safety and Security 3 Loss of public trust in the event of an accident involving a product or service that causes serious harm to the life or physical well-being of a user
4 Loss of public trust in the event of a serious security incident leading to information leakage or privacy violations
5 Impact on operations and product shipments due to the use of substances that could cause ecosystem contamination or harm to human health
Addressing Climate Change 6 Loss of competitiveness due to delays in transitioning to sustainable energy
7 Delays in transitioning to a revenue model that does not depend on print charges as forest resources decline
8 Supply chain disruptions caused by extreme weather
Using Limited Resources Effectively 9 Loss of competitiveness due to delays in transitioning to sustainable raw materials
10 Increased costs of materials and components and supply instability due to resource shortages

STEP 3

Review, Validation, and Formal Identification

The officer responsible for Corporate Planning reviews the validity of the materiality assessment process and its results and identifies the material issues that should be addressed as priorities. The identified material issues are approved by the Board of Directors following deliberation by senior management. Their validity is ensured through regular reviews and revisions as necessary.

Five Material Issues

In 2020, Konica Minolta identified the following five material issues that it should address: “Improving Fulfillment in Work and Corporate Dynamism,” “Supporting Healthy, High-Quality Living,” “Ensuring Social Safety and Security,” “Addressing Climate Change,” and “Using Limited Resources Effectively.”

Improving Fulfillment in Work and Corporate Dynamism

Vision for 2030

Increase productivity and create time for creative activities within Konica Minolta and among customers and society, while advancing human perception and judgment to support innovation in customers’ industries.

Recognition of Environmental and Social Issues (2030 Horizon)

Labor shortages are expected in Japan and many other economies around the world. Changes in industrial structures are expected to create imbalances in the labor required, leading to wider “skill mismatches.” Advances in technologies such as AI, robotics, and automation will improve productivity and alleviate labor shortages. At the same time, however, new jobs will be created, requiring more creative skills suited to those jobs. It will therefore be necessary to address the global labor shortage by increasing productivity while also enhancing human creativity.

Opportunities and Risks

Opportunities
  • Improving customers’ productivity and creating time for creative activities by providing “work style” solutions using digital technologies
  • Supporting improvements in customers’ productivity and a shift toward creative work through workflow and supply chain transformation
  • Providing innovative services by unlocking the potential of “talent,” the source of new value creation, and becoming an organization where “individuals thrive”
  • Supporting the establishment of a new industrial foundation that expands and carries forward the human capabilities of “seeing, judging, and adjusting”
Risks
  • Mismatches between internal skills and work resulting from rapid changes in digital technologies such as AI and the surrounding environment
  • Declining employee autonomy and capacity for innovation due to delays in creating an environment that emphasizes engagement

Key KPI Targets and Results

Employee Engagement Score*1
Line graph showing the trend in the employee engagement score. Solid lines with filled circles show results and dashed lines with open circles show targets. Results were 6.4 in FY2021, 6.8 in FY2023 and 6.8 in FY2024, rising in FY2025 from 7.0 (October) to 7.1 (March). The target for FY2026 is the industry average (7.3 as of FY2025), 7.5 for FY2028, and reaching the top 25% of the industry in FY2030.

*1Uses the survey platform provided by Workday. The score represents the average response to the “engagement” question in the Global Employee Survey, which is answered on a scale of 0 to 10.

*2Industry: The target is reviewed annually because it is set in line with the global average score for technology companies overall (industry average). The FY2025 target was initially set at 7.7 in FY2023, but was revised to 7.3, the industry average for FY2025.

*3Refers to the top 25% level for the industry overall; therefore, no specific numerical value has been determined at this time. For reference, the top 25% value for the industry in FY2025 was 7.7.

Supporting Healthy, High-Quality Living

Vision for 2030

Foster healthy, enriched lifestyles across our workforce, client base, and broader society, helping individuals lead more fulfilling lives.

Environmental and Social Context (2030 Horizon)

In developed countries, aging populations are expected to increase the number of patients with various diseases, resulting in greater demand for medical and nursing care and increased social security costs. In Japan, the gap between supply and demand for nursing care workers is expected to reach approximately 250,000* in FY2026 and widen further in the 2030s. Similar challenges are expected to arise in other developed countries in the future.
It is necessary to improve productivity and safety in medical and nursing care settings while improving the quality and accessibility of medical services and curbing social security costs through disease prevention and early detection.

*Source: Ministry of Health, Labour and Welfare, "Required Number of Long-Term Care Personnel Based on the 9th Long-Term Care Insurance Business Plan" (July 2024) (Japanese only)opens in a new window

Opportunities and Risks

Opportunities
  • Transforming nursing care workflows and creating a workforce for the nursing care industry
  • Contributing to early diagnosis, reduced healthcare costs, and improved QOL through imaging and healthcare IT services

Ensuring Social Safety and Security

Vision for 2030

Elevate safety and peace of mind in work and daily life for our customers and communities, while proactively minimizing operational and product risks.

Environmental and Social Context (2030 Horizon)

Aging factories and equipment, labor shortages, and the retirement of experienced workers are expected to increase the risk of accidents at manufacturing sites and occupational accidents. Safer working environments are also required from the perspective of securing talent. In cyberspace, cyberattacks are becoming increasingly severe and sophisticated, and according to a WEF survey, 72% of respondents reported an increase in cyber risks*.
It is necessary to realize a safe and secure society by visualizing hazards at workplaces, including social infrastructure, and information security risks, and by advancing products and services that contribute to people’s work and daily lives.

*Source: World Economic Forum, Global Cybersecurity Outlook 2025.opens in a new window

Opportunities and Risks

Opportunities
  • Ensuring the quality of customers’ products and services through advanced measurement and inspection
Risks
  • Loss of public trust in the event of an accident involving a product or service that causes serious harm to the life or physical well-being of a user
  • Loss of public trust in the event of a serious security incident leading to information leakage or privacy violations
  • Impact on operations and product shipments due to the use of substances that could cause ecosystem contamination or harm to human health

Addressing Climate Change

Vision for 2030

Reduce Konica Minolta’s own CO2 emissions while expanding CO2 reductions among customers and across society.

Environmental and Social Context (2030 Horizon)

Under the Paris Agreement, the world may transition toward a decarbonized society at an accelerating and ambitious pace. Such a transition would bring major changes to the energy structure of industry as a whole, including the increased use of renewable energy. On the other hand, if the transition does not progress as expected and the impacts of climate change become apparent around the world, consequences such as land submergence, loss of biodiversity, and more frequent extreme weather events could have a major impact not only on industry but also on human life itself.
To transition to a decarbonized society, it is necessary to transform workflows and supply chains and fundamentally rethink how energy is used, while establishing new materials, new energy, and new processes for decarbonization as viable industries. It is also necessary to build industrial structures capable of withstanding extreme weather events in preparation for the impacts of climate change becoming apparent.

Opportunities and Risks

Opportunities
  • Reducing energy consumption and CO2 impacts at customer companies and in society through workflow and supply chain transformation
  • Providing measurement and inspection technologies and materials that support the commercialization of new materials, new energy, and new processes
Risks
  • Loss of competitiveness due to delays in transitioning to sustainable energy
  • Delays in transitioning to a revenue model that does not depend on print charges as forest resources decline
  • Supply chain disruptions caused by extreme weather

Key KPI Targets and Results

Product Lifecycle CO2 Emissions (Scope 1, 2, and 3)
Stacked bar graph showing the trend in and reduction targets for product lifecycle CO₂ emissions (Scopes 1, 2 and 3). In the base year of FY2018, Scopes 1 and 2 accounted for 330 thousand tons and Scope 3 for 1,128 thousand tons. Against the base year, the FY2025 target was -20% and the result -32%, followed by targets of -33% for FY2028, -36% for FY2030 and -50% for FY2035, aiming for net zero in FY2050.
Avoided CO2 Emissions*
Bar graph showing the trend in and targets for avoided CO₂ emissions. The FY2022 result was 593 thousand tons and the FY2025 result of 1,118 thousand tons exceeded the FY2025 target of 800 thousand tons. Targets rise to 1,200 thousand tons for FY2028, 1,240 thousand tons for FY2030 and 1,500 thousand tons for FY2035.

*Avoided CO2 Emissions: The amount of CO2 emissions avoided in society through the provision of Konica Minolta’s products and solutions (Avoided Emissions).

Using Limited Resources Effectively

Vision for 2030

Promote the effective use of resources within Konica Minolta while contributing to the effective use of resources by customers and society.

Environmental and Social Context (2030 Horizon)

As the global population increases, it is estimated that by 2030, human resource consumption will reach a level equivalent to approximately two Earths. To make effective use of finite resources, it is important not only to collect waste and recycle and reuse resources, but also to reduce unnecessary resource use.
Fundamental workflow transformation, such as reducing resource waste across supply chains, is required, along with the development of materials technologies and collection networks that contribute to resource circulation. It is also necessary to respond to the circular economy by enabling new materials, new energy, and new processes to become commercially viable under resource constraints.

Opportunities and Risks

Opportunities
  • Reducing resource consumption and promoting the effective use of resources at customer companies and in society through workflow and supply chain transformation
  • Providing measurement and inspection technologies and materials that support the commercialization of new materials, new energy, and new processes
Risks
  • Loss of competitiveness due to delays in transitioning to sustainable raw materials
  • Increased costs of materials and components and supply instability due to resource shortages

Key KPI Targets and Results

Natural Resource* Usage in Konica Minolta Products
Stacked bar graph showing the trend in and reduction targets for the use of natural resources (virgin materials) in Konica Minolta products. Use falls from 135 thousand tons in the base year of 2019 to a 2025 target of 108 thousand tons and a 2025 result of 91 thousand tons (-33% against 2019), with targets of 97 thousand tons for 2028 (-28%) and 95 thousand tons for 2030 (-30%), aiming for a reduction of 90% or more by 2050. Virgin materials are also being replaced with circular resources such as recycled and biomass materials.

*Natural Resources: Resources that require new extraction, such as crude oil and mineral resources, and are generally synonymous with depletable resources.

Contribution to Reducing Natural Resource Usage*
Bar graph showing the trend in and targets for avoided use of natural resources. The FY2019 result was 320 thousand tons and the FY2025 result of 425 thousand tons exceeded the FY2025 target of 400 thousand tons, with further growth planned toward the 2030 and 2050 targets.

*Contribution to Reducing Natural Resource Usage: The amount by which Konica Minolta products contribute to reducing natural resource usage by customers and society compared with the case in which those products were not introduced.

Value Creation Process

Konica Minolta creates customer value through co-creation with customers across its four business groups, combining its strengths in intangible assets—Customer Relationships, Technology Integration, and Diverse Talent—to address the five Material Issues. The resulting economic value (cash flow) is reinvested to further expand the impact of efforts to address environmental and social issues. Continuing this cycle is the Konica Minolta Group’s approach to value creation.

Value Creation Process
Diagram of Konica Minolta's value creation process, in which management capital is invested, co-creation with customers generates customer value and economic value (cash flow), this leads to solving social issues, and the economic value is reinvested to continue the cycle