Identification of 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.

Identification process (1): Extract and organize materiality candidates

  • Organize external requirements

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.

  • Organize the Group’s sustainability management issues

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

Identification process (2): Evaluate the degree of importance of materiality candidates (prioritization)

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.

Identification process (3): Confirm validity and identify materiality

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.

KOKUSAI ELECTRIC’s Five Key Issues (Materiality)

Materiality Priority themes Activity items Relevant SDGs
Contribution to society through creativity and innovation Creation of new technologies and new products Development of advanced underlying technologies and promotion of joint development with external institutions

Enhancement of customer satisfaction Provision of products, technologies, and services attuned to the VOC
*VOC: Voice of Customer
Enhancement of economic performance Improvement of business results, investment, etc. and confirmation of the return on investment
Creation of a sustainable society and conservation of the global environment Reduction of environmental impact Reduction of greenhouse gas emissions

Thorough management of energy
Thorough management of waste and hazardous substances
Thorough management of water and wastewater
Contribution to the environment through technology and products Development of environmentally friendly products
Promotion of sustainable procurement Strengthening of supply chain management
Human resources management as a source of innovation Respect for diversity of human assets Promotion of diversity & inclusion

Development of human resources who learn on their own, think on their own and act on their own Development of global human resources and securing of excellent human resources
Maintenance and enhancement of health and safety Strengthening of occupational health and safety management
Strengthening of the governance system to realize sustainability management Strengthening of governance Strengthening of corporate governance

Thorough compliance
Thorough management of major business risks Strengthening of SCR*/CR risk countermeasures and BCP
*SCR: Super Clean Room
Strengthening of information security risk countermeasures and BCP
Ensuring of management transparency Timely and appropriate disclosure to internal and external parties
Respect and consideration of human rights Respect for human rights Promotion of the understanding and awareness of employees about human rights

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