Human Resources: Approach to Human Capital Management
Our Approach
At SUBARU, amid a rapidly changing business environment, we have defined our ideal state as “truly competitive people and organizations”—a state that enables flexible and swift action—and are committed to human capital management to achieve this vision.
We believe that “truly competitive people and organizations” is a state in which the following four elements are mutually functioning: each individual’s abilities are maximally demonstrated; results are rapidly achieved by focusing on core business functions; people have an awareness of total optimization, easily transcending organizational barriers; and presence of a culture that encourages ambition and support. To achieve this, we will advance our initiatives based on the foundations of individual growth and organizational growth, focusing on three focus measures: encouraging autonomy, continuing to develop a supportive culture, and strengthening connections.
[Encouraging Autonomy]
The driving force behind the SUBARU Group’s sustainable growth is the power of each and every Group employee. SUBARU is working to encourage autonomy with the aim of creating human resources with high sensitivity to change who can take on challenges autonomously. We help employees to autonomously develop their careers by providing a variety of opportunities and creating an environment that enables employees to think and act on their own initiative based on an accurate understanding of the external environment.
[Continuing to Develop a Supportive Culture]
In order to convert the power of human resources who think and act on their own initiative into a source of corporate competitiveness, it is essential to create an environment that empowers every employee. SUBARU is working to continue developing a supportive culture so that we create an organization that encourages diverse individuals to play an active role and works together as a whole. We will work to build an organization that maximizes individual strengths in terms of both mindset and skills, enhancing engagement and work fulfillment.
[Strengthening Connections]
At SUBARU, we regard strengthening connections as the highest priority in order to turn individual challenges into greater achievements and accelerate the development of talent willing to take on new challenges. We are working to deepen the connection between management’s vision and the efforts of each employee, strengthen interdepartmental coordination and collaboration, increase interaction among employees, and establish systems to support and encourage initiatives across the Group.
Management System
SUBARU promotes human capital management under the leadership of the Chief Human Resources Officer (CHRO). The CHRO is responsible for a wide range of areas that contribute to maximizing human capital, including human resource development, diversity, equity & inclusion (DE&I), work-life balance, health management, and labor-management communication. Depending on the nature of the matter, these issues are submitted for discussion or reported to the Executive Management Board Meeting, which is a deliberative body responsible for reviewing operational execution. Important matters are submitted to and reported to the Board of Directors, which oversees these matters.
For occupational health and safety, a Central Health and Safety Committee manages related initiatives. In April 2026, SUBARU integrated its human resources and general administration departments—which had previously been separate—and established a new Human Resources & General Administration Division. This move aims to centralize employee support functions and accelerate the implementation of initiatives.
Human Capital Management Promotion Framework (As of April 2026)
Identified Risks
In light of changes in the labor market and the environment surrounding human capital, the SUBARU Group is addressing risks related to human capital management through the recruitment and development of talent and the creation of a supportive workplace environment.
[Risks]
These include the inability to secure talent due to a tight labor market, intensifying competition for talent, including from other industries, and labor-related issues that could lead to compliance issues, as well as employee turnover. Similarly, inadequate human resource development or the inability to create a workplace environment in which everyone can play an active role and in which employee diversity is respected may also affect the SUBARU Group’s business activities.
[Measures]
・Manufacturing Domain (Entire Supply Chain)
In 2025, we established the human resource services company SUBARU nw Sight Co., Ltd. in partnership with Nisso Corporation and World Intec Co., Ltd., both major human resources service providers specializing in the manufacturing industry. SUBARU nw Sight Co., Ltd. provides human resources services not only to SUBARU but also to SUBARU’s suppliers, working to secure a stable workforce and create growth opportunities across the entire supply chain’s manufacturing sector.
・Software Domain
In the Automotive Business, the importance of mechatronics is growing, and competition to acquire software talent is intensifying.
SUBARU is strengthening its recruitment of talent to support the evolution of AI technology and CASE*1. In February 2025, we expanded SUBARU Lab, our AI development hub located in Shibuya—a place where many IT companies are concentrated—to two locations, and are proceeding with the recruitment and development of not only AI talent but also a wide range of software development talent to support CASE. Furthermore, we are implementing internal digital human resources training for all employees and developing technical talent with expertise spanning both vehicles and software.
- *1
- CASE: Connected, Autonomous, Shared & Services, Electric
Human Resources: Human Resource Development > Digital Human Resource Development
・Diversity-Focused Talent Management and Workplace Development
SUBARU strives to ensure that employees with diverse characteristics and values can fully demonstrate their abilities. This is why SUBARU promotes talent management while valuing the differences in gender, nationality, culture, and lifestyle among its employees, striving to create workplace environments where everyone can make a meaningful contribution.
・Boosting Employee Engagement
Lower employee engagement not only leads to lower productivity and reduced intrinsic motivation but also increases the risk of employee turnover. To maintain and improve engagement, we use the results of our Employee Attitudes Survey as an indicator of human capital management and monitor them at the management level.
Targets and Results
Employee Attitudes Survey
At SUBARU, we use the employee engagement score*1—calculated from our annual Employee Attitudes Survey—as a key performance indicator for human capital management.
- *1
- Refers to the percentage of employees who provided positive responses to five questions assessing their motivation to contribute to the company, loyalty, and will to make voluntary effort.
Targets (SUBARU)
(FYE March)
| Indicator | Unit | Results | Targets | ||
|---|---|---|---|---|---|
| 2024 | 2025 | 2026 | 2029 | ||
| Engagement Score | % | 49 | 51 | 54 | 70 |
Analysis of Employee Attitudes Survey Results
SUBARU utilizes the results of the Employee Attitudes Survey to inform human resources initiatives, organizational culture reform, and the identification of organizational issues and the formulation of countermeasures.
In the FYE March 2026 Employee Attitudes Survey, scores improved for the second consecutive year in all categories where comparisons with the previous fiscal year were possible. In particular, the Engineering Division, Monozukuri Division, and Aerospace Company led the increase in scores, and we view this as an indication that initiatives in each organizational unit are progressing steadily. As for trends by category, the following characteristics were observed, similar to those in FYE March 2025.
- Categories with many positive ratings: Growth opportunities, Quality and customer orientation
- Categories for improvement: Management strategy, Business processes
Causes and Countermeasures in Categories for Improvement
| Categories for Improvement | Analysis of Causes | Countermeasures Implemented (FYE March 2026) |
|---|---|---|
| Management Strategy | Uncertainty regarding corporate direction in an uncertain business environment, and anxiety about the unprecedented challenges to be tackled under such conditions |
|
| Business Processes | Lack of cross-organizational communication and cooperation |
|
Initiatives
The various initiatives to promote human capital management are introduced on the pages linked below.
SUBARU Movement Index (SMI)
To address the identified issue of an organizational structure in which the embers of ambition are extinguished in SUBARU’s human capital management, we aim to make improvements by strengthening the connections between scattered challenges.
To achieve this, we have introduced the SUBARU Movement Index (“SMI”) starting in FYE March 2027. The SMI is a management indicator that visualizes the status of internal activities leading to improved productivity and organizational culture reform based on two axes: the rate of employee participation and the perceived level of company support for activities.
Based on the SMI monitoring results, we will provide ongoing support for each activity and drive transformation forward.
President’s Award
SUBARU presents the President’s Award annually with the aim of boosting employee motivation, revitalizing the organization, and fostering organizational culture. This award recognizes outstanding achievements and the processes behind them that contribute to “Monozukuri Innovation” and “Value Creation,” strengthen the SUBARU brand, and help us become “One SUBARU”. In FYE March 2026, following a process of nominations and evaluation, 24 projects and 367 individuals received the President’s Award. At the awards ceremony, President Osaki personally offered words of appreciation to each recipient, which enhanced the recipients’ sense of accomplishment and further boosted their motivation. The ceremony was streamed online to the entire Company, fostering a sense of pride in one’s colleagues and motivating employees who were inspired by the recipients’ enthusiasm to take on new challenges. We will continue to view this awards program as a vital opportunity to advance human capital management within the SUBARU Group, and we are committed to sustaining and further developing it.
