The effectiveness of the Board of Directors is evaluated once a year. The members of the Board of Directors consider specific improvements based on the results, and ongoing efforts are made to improve the functioning of the Board by implementing those measures.
2022 Evaluation of Effectiveness
- Implementation period: Nov 2022 to Feb 2023
- Method of evaluation of effectiveness: survey (named/multiple choice/descriptive)
- Target: 11 persons total (8 directors, 3 Audit & Supervisory Board members)
- Main topics of the survey:
- Basic points regarding the functions, composition, and operation of the Board of Directors
- Status of improvement on issues from previous year
- Items on sustainability
Results of evaluation of effectiveness
The effectiveness of the Board of Directors as a whole was verified. The main points that improved were "providing opportunities for outside directors to understand the company" and "facilitating discussion by promoting mutual understanding among directors." The analysis commended the way that opportunities were provided for outside directors to visit plants and research laboratories that opened behind schedule due to the COVID-19 pandemic, and the way that further opportunities for dialogue were promoted such as offsite meetings, and Social gatherings after Board meetings. The following items were identified as issues.
Issues and Action Plans
Issue 1
Strengthening monitoring with regard to investment projects above a certain amount
Transparency for critical investment projects will be improved by creating overviews that show their progress with regard to their initial plans, and progress will be verified and reported to the Board of Directors more frequently.
Issue 2
Fostering deeper discussions of sustainability
Board meetings, offsite meetings, free discussions (social gatherings) etc. will be used to promote ongoing sustainability-related debate as well as discussion of human capital management efforts and their disclosure, and human rights efforts.
Issue 3
Training and identifying next-generation leaders, identifying talent, raising awareness
Engagement and communication between management and next-generation leaders will be increased as part of the discretionary Nomination and Compensation Advisory Committee's activities, by conducting interviews between next-generation leaders and outside directors, holding opinion exchange meetings, and requiring next-generation leaders to hold briefings before Board meetings.