Materiality

The Group has identified as materiality those priority issues that are to be addressed in order for the Group to contribute to achievement of the SDGs and achieve sustainable development. We extracted and organized materiality candidates based on international requirements and the Group’s sustainability management issues, and shortlisted them by identifying items with a high degree of importance to both stakeholders and the Group based on matrix evaluation. As regards those items having a high degree of importance, the Board of Directors confirmed their consistency with the Company’s initiatives and strategies.

Following the identification of materiality comprising five items, we have specified priority themes and activity items and are managing their progress by setting KPIs. Progress statuses are monitored by the Sustainability Committee and the Board of Directors.

We will vigorously disclose the materiality identification process and the situation of internal promotion activities and promote “Tai-wa” with our stakeholders.

We extract and organize social issues and requirements that may have an impact on formation disclosure guidelines, the evaluation items of ESG management evaluation bodies, and the advocacy of the SDGs.

Based on the Group’s business environment, earnings opportunities, and various assumed risks, we extract and organize issues necessary for strengthening sustainability management.

For the materiality candidates extracted and organized in the identification process (1), we score the degree of importance from both subjective and objective evaluations, and prioritize them using matrix evaluation, shortlisting the items with high degree of importance as materiality of the Group.

For the key items shortlisted in the identification process (2), the Sustainability Committee and the Board of Directors confirm the consistency with the Company’s initiatives and strategies and identify materiality.