About 10 Years of Progress in Sustainability Promotion Initiatives

At DMC, we are driving sustainability forward as one unified organization, guided by the shared philosophy of “Creating an Exciting, Sustainable Tomorrow” that is common to USCO Group, the group we belong to.

Looking back, we formally launched our initiatives to promote sustainability in 2017. A European customer requested that we undergo an evaluation by a third-party assessment body to review our sustainability practices. This provided an opportunity to address and reevaluate the sustainability challenges we were confronting. Among these, the most pressing was the need to reduce CO₂ emissions in our manufacturing processes. In the early days, our sustainability team worked tirelessly, often in isolation. Now, nearly ten years later, many employees recognize the importance of reducing CO₂ emissions and bring this awareness into their daily work. I personally sense a real shift in awareness throughout the organization.

New Goals and Our Path to Carbon Neutrality

In recent years, one of our key initiatives to reduce CO₂ emissions has been the fundamental transition from wet etching—used for circuit formation on touch sensor substrates, which consumes large amounts of energy through heating and drying—to laser etching, which requires no heating or drying. The benefits extend beyond merely reducing CO₂ emissions. The chemicals used in wet etching are highly toxic, posing risks to employee safety and health, and there are wastewater treatment issues when handling chemicals, which must be managed with strict controls. By transitioning to laser etching, we eliminate the need for these hazardous chemicals, simultaneously solving both environmental and safety challenges. In the industrial equipment field, where our customers prioritize long-term, stable supply, there is often caution regarding changes in manufacturing methods to ensure quality. However, through extensive discussions and collaboration, we successfully transitioned part of our product lineup to laser etching in FY2023. For the remaining products, we aim to complete the transition by FY2026 after receiving customer approval. We take pride in this as the result of a steady, ongoing dialogue with customers.

Our FY2023 merger with Seedsware (a group company manufacturing touchscreen application products like displays, embedded panel PCs, and monitors) presented challenges in integrating differing materials, processes, and corporate cultures, initially hindering a unified environmental approach. However, by leveraging the merger, we've integrated both companies' excellent management methods and established an improved internal structure. As a renewed DMC, we believe we've prepared a unified system for higher-level environmental measures and that sustainability improvements are steadily progressing.

Building on these efforts, we will establish a new environmental policy and set Scope 3 CO₂ reduction targets by FY2025, thereby clarifying the path DMC should take in its sustainability journey. In addition, to respond to the increasingly stringent demands from our customers, we recognize the need to implement effective measures across the entire supply chain. We will link our current efforts to future environmental initiatives, striving to achieve carbon neutrality by 2050.

Striving to be a Trusted “101-Year-Old Company” for the Next 50 Years and Beyond

DMC’s products are used worldwide, and although small, we are also a global enterprise. Thus, we must continually earn the trust of our global customers to ensure business continuity.

We have production sites in Indonesia, and we welcome motivated employees from these sites to Japan as technical intern trainees, where they learn Japanese manufacturing practices at our domestic plants. After returning to their home country, we hope they will help spread Japanese quality standards throughout our Indonesian operations.

In 2023, DMC celebrated its 50th anniversary. Going forward, we will continue working hand in hand with employees, global customers, and partners, adapting to societal changes while maintaining our position as a trusted company. We aim to realize our vision of a “101-year-old company consistently growing and adapting to change.” This reflects our strong commitment to pass on this aspiration to the next generation who will shape the future and to be a company perpetually essential to society.

To become a company essential to society, sustainability initiatives are indispensable. The driving force behind these initiatives is the "excitement" each employee feels from contributing to society. Together with our employees, we aim to become an ever more exciting company, contributing to the realization of a sustainable society.