Our Group identified material issues in 2019 with the transition from CSR reporting to issuing an integrated report.
Taking into consideration the ever-changing social issues, including the need to address climate change, in order to realize a sustainable society, we have reviewed our plan in conjunction with the formulation of our Mid-Term Management Plan "Challenge 2024," which was launched in fiscal 2022.
In response to identified material issues, the Company will establish two strategies, "advancement of ESG management" and "restructuring of business infrastructure," and implement portfolio management.
Materiality Identification Process
| STEP1Identification of social issues | We identified social issues by referring to the SDGs, the IIRC's Integrated Reporting Framework, and the GRI guidelines, which are commonly recognized internationally. |
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| STEP2Creation of a Materiality Map | Based on our Group's management philosophy, our current strengths, and medium- to long-term aspirations, we narrowed down and mapped out the social issues that require further action from the perspective of their importance to our stakeholders and the Group, and held a series of discussions on how to verbalize them. |
| STEP3Management Decision-Making | Issues were discussed and resolved by the Sustainability Committee and the Board of Directors, upon which the above material issues were identified and disclosed in the Mid-Term Management Plan "Challenge 2024." |
Materiality
Environmental
Materiality:Contributing to the creation of an affluent society
*This table can be scrolled horizontally.
| Social Issues to be Addressed | Vision for 2030 | Risk | Opportunity | Qualitative Goal | Initiatives | KPIs (Key Performance Indicators) | Target Year | FY2022 Results | Relevant SDGs |
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Create products that support the creation of a prosperous society and contribute to the realization of a convenient and secure lifestyle and society. | Products become obsolete due to lifestyle and social changes and technological innovation. | Increase corporate value by providing products that respond to changing lifestyles, environments, and society. | Launch products that contribute to people's lives, the environment, and a smart society. | Strengthen R&D capabilities for value creation. | Create 10 product lines (five products contributing to the living environment +five products contributing to a smart society). 30 patent applications |
FY2024 | Number of products created: 3 Number of patent applications: 13 |
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Contribute to environmental conservation by realizing an environmentally conscious supply chain. | Environmental issues such as global warming and water resource depletion, and social issues such as human rights and labor, become more apparent and serious. | Increase corporate value by promoting activities such as manufacturing, provision of services, and procurement that contribute to resolving social issues. | Understand environmental activities across the supply chain. | Conduct a sustainable procurement questionnaire. | Conducted on 70% of suppliers based on procurement amount. | FY2022 | 75% | |
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Contribute to society by reducing energy and water consumption on a per unit basis and in total amount. | Lack of climate change measures and environmental considerations reduce supply chain credibility and stakeholder confidence. | Increase corporate value by establishing a supply chain and providing products that contribute to reducing environmental impact. | Reduction of CO2 emissions. | Establish carbon neutrality promotion department. | 46% reduction compared to fiscal 2013 (Scope 1 and Scope 2). | FY2030 | 40% | |
| Achieve carbon neutrality. | FY2050 | ||||||||
| Switch to renewable energy sources. | Promote renewable energy facility installation plans. | Set renewable energy usage rate targets. | FY2023 | Activities to set renewable energy usage rate targets. | |||||
| Eliminate serious environmental accidents. | Implement environmental risk assessment and training. | 0 cases | Every year | 0 cases | |||||
| Eliminate violations of environmental laws and regulations. | 0 cases | Every year | 0 cases |
Society
Materiality:Creating a safe, secure, and vibrant work environment
*This table can be scrolled horizontally.
| Social Issues to be Addressed | Vision for 2030 | Risk | Opportunity | Qualitative Goal | Initiatives | KPIs (Key Performance Indicators) | Target Year | FY2022 Results | Relevant SDGs |
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Employees are able to work in good health and energetically. | Decline in organizational performance due to deteriorating health of executives and employees and decreased job satisfaction and ease of work. | Improve organizational performance through executive and employee satisfaction and health management. | Improve employee engagement scores. | Implement engagement surveys and obtain feedback. | Continuous score improvement. | Every year | Ongoing implementation of surveys. |
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| Active investment in human capital. | Execute diverse training programs. | 20% increase in human capital investment per capita (compared to FY2020). | FY2024 | 27% increase per capita | |||||
| Employee health promotion. | Promote regular health checkups and manage checkup rates. | 100% | FY2026 | 97.9% | |||||
| Reduction of smokers. | Implement quit smoking programs. | Smoking rate 5% | FY2026 | 32.8% | |||||
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Promotion of human resource diversity and fair and equitable treatment of personnel resulting in the fostering of diverse human resources and revitalization of the workplace. | Failure to secure human resources with diverse skills and capabilities, resulting in the inability to improve organizational capabilities and increase corporate value. | Increase corporate value through the active participation of human resources with diverse abilities and skills. | Increase the ratio of female recruits in new graduate hiring. | Implement measures to raise awareness in recruitment activities. | 30% or more | Every year | 36.4% | |
| Improve the utilization rate of the childcare leave system for female employees. | Provide training for new employees and managers. | 100% | Every year | 100% | |||||
| Increase percentage of female managers. | Increase number of candidates for appointment. | 3% or more | FY2024 | 1.77% | |||||
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Employees are choosing a variety of work styles, and workplaces are being revitalized as we work towards a society that encourages the active participation of all citizens. | Inability to improve organizational capabilities and increase corporate value due to lack of work style options. | Improve "ease of work" by offering a variety of work style options, leading to improved organizational performance. | Increase telework rates. | Streamline business inventory and work environment. | 50% (non-industrial work) | FY2024 | 20.0% | |
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Maintain accident-free and disaster-free operations, earning the trust of society. | Business disruption. | Increase corporate value by achieving a stable supply framework. | Eliminate serious industrial accidents. | Execute safety patrols and analysis of incidents and obtain feedback. | Lost time injuries: 0 | Every year | Two cases |
Materiality:Coexistence with society
*This table can be scrolled horizontally.
| Social Issues to be Addressed | Vision for 2030 | Risk | Opportunity | Qualitative Goal | Initiatives | KPIs (Key Performance Indicators) | Target Year | FY2022 Results | Relevant SDGs |
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Continuously supply safe and high-quality products and earn the trust of customers. | Loss of social credibility due to deterioration in product quality and safety, etc. | Increase corporate value by providing valuable products of quality and safety performance. | Eliminate quality complaints. | Analyze complaint events and obtain feedback. | Serious quality complaints: 0 | Every year | 0 cases |
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| Strengthen group-wide production and quality risk management framework. | Identification and ongoing management of production and quality risks. | Hold monthly production and quality meetings and follow-up on status of responses to major risks. | Every year | Revised risk map and selected key risks to be addressed. | |||||
| Enhance selection and analysis of critical risks. | Establish a Group Risk Management Committee to collect and analyze potential risks and select key risks. | ||||||||
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Appraised by stakeholders based on thorough fair disclosure and constructive dialogue. | Fair trading is hindered by insider trading and social credibility is lost. | Increase corporate value by engaging in constructive dialogue with stakeholders and gaining a better understanding of them. | Promote understanding of our business among stakeholders. | Conduct briefings on financial results, individual IR meetings, and small meetings. | Continued active and proactive implementation. | Every year | Ongoing | |
| Issue integrated reports. | Issued annually | Every year | Ongoing | ||||||
| Translate financial material into English. | Ongoing | Every year | Ongoing | ||||||
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Promote social contribution activities and be understood and appreciated in the community | Loss of credibility in regions we operate, making it impossible to continue business activities. | Gain the trust of communities in the regions we operate, stabilize business operations, and increase our corporate value. | Promote activities for carbon offsetting. | Consider introducing carbon credits based on business areas. | Ongoing | Every year | Ongoing | |
| Provide school environments for students in the future. | Provide a benefit scholarship program. | Ongoing | Every year | Ongoing |
Governance
Materiality:Strengthen management foundation for reliability, transparency, and profitability
*This table can be scrolled horizontally.
| Social Issues to be Addressed | Vision for 2030 | Risk | Opportunity | Qualitative Goal | Initiatives | KPIs (Key Performance Indicators) | Target Year | FY2022 Results | Relevant SDGs |
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Maintain growth by building a corporate governance framework that responds to a changing society. | Fail to respond promptly and flexibly to the increasing sophistication of corporate governance, resulting in damaged corporate value over the medium term | Continue to promote corporate governance in response to a changing society, leading to increased corporate value. | Improve the effectiveness of the Board of Directors. | Evaluate the effectiveness of the Board of Directors. | Continuous score improvement. | Every year | Score improvement |
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| Adhere to Corporate Governance Code. | Periodic review of corporate governance reports and appropriate disclosure. | Ongoing | Every year | Ongoing | |||||
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Comply with laws and regulations and changing social norms through the permeance of compliance awareness. | Violation of laws and regulations, scandals, etc., possibly resulting in significant losses or, in some cases, hindrance to business continuity. | Thorough compliance and prevention of legal violations and misconduct, leading to increased corporate value. | Promote compliance management. | Develop and disseminate compliance code of conduct. | Compliance training for all Group companies. | Every year | Ongoing | |
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Respond to increasingly sophisticated and complex cyber attacks and capture business and revenue opportunities through DX promotion. | Serious cybersecurity incidents resulting in significant losses or, in some cases, hindering corporate continuity. | Improve organizational performance and increase corporate value through prevention of incidents and DX promotion. | Advancement based on cybersecurity management guidelines as an indicator. | Comply with cybersecurity management guidelines and promote DX. | Achieve a rating of 4 or higher for all 40 items. | FY2024 | Achieved 6 items |
