OMRON Corporation’s commitment to transparency, strategic alignment, and stakeholder dialogue has earned it top honours at the Asia Integrated Reporting Awards (AIRA) 2024, where it won Gold in three key categories: Asia’s Best Integrated Report (Large Company), Asia’s Best Integrated Report (Governance), and Asia’s Best Integrated Report (Integrated Thinking). As a global leader in automation, healthcare, and electronic components, OMRON has positioned integrated reporting at the heart of its business strategy. In this interview with ESG Post, a media partner of AIRA, Tsutomu Igaki—Managing Executive Officer, Senior General Manager of Global Corporate Communications & Engagement HQ, and Sustainability Executive—explains how integrated thinking has become a “mirror and map” for the company, guiding both internal decision-making and long-term value creation.
Tell us why you have adopted integrated reporting for your company.
OMRON Corporation, a global leader in automation, healthcare, and electronic components, envisions the Integrated Report as one of the most important and effective tools to communicate with investors, shareholders, customers and other stakeholders about the reality of corporate management and the value-creating capabilities that support its sustainable growth over the medium and long term. Since its first publication in 2012, the company has utilised it effectively in its communication strategy to promote dialogue on enhancing corporate value. The practice reinforces OMRON’s commitment to transparent stakeholder dialogue and accurate, forward-looking disclosures.
Following this thought process, every year we focus on an overarching theme aligned with company’s current vision and feedback of our stakeholders (candid perspectives from Outside Directors and Audit & Supervisory Board Members) to present accurate and forward -looking disclosures that help us develop a transparent dialogue with our stakeholders and deepen understanding of its strategic path forward.
For an instance, OMRON’s 2023 integrated report emphasised the synchronisation of societal and corporate sustainability. Apart from reporting key developments, and the Global Core Position Strategy, for the first time, a dedicated section on Sustainability was introduced, with enhanced focus on human rights in the value chain and the correlation between human capital and financial performance.
in 2024 edition, we used the theme “All for Creating Customer Value,” reinforcing the company’s commitment to its long-term vision “Shaping the Future 2030 (SF2030)” by focusing on key management priorities and stakeholder expectations.
What were the key challenges you encountered while integrating financial and non-financial information into a single, coherent report, and how did your team overcome them?
One of the primary challenges was the collection and standardisation of data. Financial data is typically well-structured and governed by established accounting standards, whereas non-financial data—such as environmental impact, social responsibility, and governance metrics—can be more qualitative and fragmented. Non-financial data must reflect the organisation’s strategic goals and materiality assessment, which requires identifying the most relevant environmental, social, and governance (ESG) issues for both the business, its stakeholders and society as a whole. To address this, we collaborated with Sustainable Lab Inc. It is a Japanese company that specialises in leveraging data science to promote sustainability. They focus on analysing non-financial data, particularly related to ESG (Environmental, Social, and Governance) and SDGs (Sustainable Development Goals), to provide insights and solutions for businesses.
In 2024, we also took on the challenge of impact-weighted accounting, which translates the impact of OMRON’s environmental, product, and employment initiatives on society into monetary values. It has also helped in adopting standardised reporting frameworks to ensure consistency.
What steps do you take to make your integrated report reliable and credible?
In addition to showcasing audited financial information, the content of integrated reports is becoming increasingly important as a source of non-financial information that contributes to assessing credibility and reliability.
For this, as well as to enhance the quality of dialogue between companies and investors, we have adopted third-party assurance as a means of ensuring the reliability of disclosed non-financial information.
For example, Bureau Veritas Japan Co., Ltd. (Bureau Veritas) has been engaged by OMRON Corporation (OMRON) to provide limited assurance and to conduct an external review over sustainability information. Japan Quality Assurance Organisation has also been engaged to provide an independent verification on OMRON Group Social Indicators.
How has the adoption of integrated reporting influenced your internal decision-making and strategic planning processes?
While the report acts as great resource of information for external stakeholders, especially investors, to learn about OMRON’s value, leading to contribution towards high evaluation of the company, it also acts as a significant influence for internal decision-making and strategic planning processes. In essence, it serves as both a mirror and a map, guiding us in our pursuit of sustainable growth and excellence.
For an instance, because of the progress of integrated thinking among our management, the medium-term business plan that started in 2017 was the first to design a business strategy and a sustainability strategy together. Subsequently, when formulating our 10-year long-term vision with the goal of 2030, we fully integrated sustainability issues into the important management issues that will affect our future corporate value.
Each business unit takes ownership of reviewing and reflecting on its own initiatives. This collective engagement helps the businesses to use it actively as an effective communication tool to convey value to its customers and fosters a culture of accountability and continuous improvement.
Each division actively contributes to shaping the narratives. This not only enhances the reliability and credibility of the information presented but also strengthens the cohesion and alignment within our organisation and also have constructive dialogue with stakeholders
With evolving stakeholder expectations and regulatory landscapes, how do you see the future of integrated reporting in Asia, and what initiatives are you planning to stay ahead of these trends?
OMRON sees the future of integrated reporting in Asia as an opportunity to strengthen transparency, sustainability, and stakeholder engagement. By embracing global standards, leveraging technology, strengthening stakeholder engagement, focusing on materiality, ensuring regulatory compliance, promoting a culture of sustainability, and committing to continuous improvement, OMRON strives to set great benchmarks and lead the way in integrated reporting in its industry domains.
What advice would you offer other organisations aspiring to reach similar levels of reporting excellence as recognised by AIRA?
OMRON would advise organisations aspiring to achieve reporting excellence to adopt a holistic approach by integrating financial and non-financial information, aligning with global frameworks, and focusing on long-term value creation. They should innovate in sustainability-driven initiatives and commit to continuous improvement by refining reporting processes and staying ahead of industry trends. Investing in advanced data management technologies and ensuring data transparency are crucial for accuracy and stakeholder trust. Engaging stakeholders to identify material ESG issues and fostering a culture of sustainability through leadership commitment are also key to embedding integrated thinking.
