The world today continues to experience great turmoil. The pandemic of 2020 brought unprecedented human and health crises, leaving many people around the world in extremely difficult circumstances. It highlighted how interdependent we are in this finite space on earth. The foundation of our daily lives hinges on our ability to live without fear or worry. That is why I believe it is more important than ever that we truly appreciate the value of each day and cherish the moments that bring us joy. In light of these tumultuous times, we are pursuing business reform in line with our Vision of “protecting future lives” and “sustainability as the only path,” based on our Purpose of “to realize a Kirei World in which all life lives in harmony.”
We strive to accelerate our business transformation to get back on a path to grow our business despite the impact from external factors such as hikes in raw material prices, fluctuations in exchange rates, digitalization and accelerating decarbonization. Our top priority is to revive our EVA (economic value added) management approach to maximize profits, with targeted strategies for each business segment. Additionally, we will prioritize ESG (environmental, social, and governance) considerations to increase our future value as a company. We will concentrate on improving our current business while creating new business opportunities. This is because pursuing only short-term economic goals is not sustainable or supported by society, and we must be more future-focused. Our commitment to these twin goals guides us as we move forward into the future. What unites this parallel approach is a focus on unique, state of-the-art technology to drive global expansion. We are committed to fostering growth in both approaches to achieve our Vision.
In Reborn Kao, we have been accelerating ESG-driven Yoki-Monozukuri to bring maximum value with minimum waste. We are making dynamic investments in category-leading brands and are shifting to loyalty marketing with a focus on connecting with customers through DX. Regarding globalization, we will ensure that we offer one-of-a-kind value to our customers and move toward a local production and consumption model, grounded on an approach to manufacturing locally.
Another Kao focuses on themes that we have not done, or have not been able to do, in the past. Our goal in this is stated in our Commitment to the Future. We have started several new businesses through collaboration with partners who share the same aspirations. In FY2023, we are developing these initiatives into strong businesses and are accelerating our contributions to society through new businesses.
We will transform our manufacturing from an approach driven by consumption to one where resources are circulated. This represents a transition from a linear economic model on units and volumes to a circular economy based on quality and human connections. We will remain focused on developing a growing circular business model. We expect to enact business reforms in FY2023 amid the challenging business environment. We view the current turbulence as an opportunity to reform and are fully committed to transform rapidly into the new, stronger, and more agile Kao, maximizing the capability of all our group employees.
President and Chief Executive Officer