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Process to Identify Materiality

We strive to build a relationship of trust with all stakeholders (customers, shareholders, business partners, employees, local communities, etc.) through business activities and actively address sustainability issues including environmental and social issues based on the spirit of the Corporate Credo, the Basic Mission Statement and the Group Vision in order to achieve the Group’s sustainable growth and medium- to long-term enhancement of corporate value.

With the aim of further deepening these efforts, we identified materiality that contributes to the realization of “sustainable growth of companies and society” and “sustainable society” in the process of clarifying the relationship between business activities and social issues.

Specifically, firstly, we selected 25 candidate materiality issues from the perspectives of: (i) the environmental/social issues that are meaningful for us to address and can produce results and (ii) the issues we can tackle using our core businesses. Secondly, we conducted a questionnaire survey of 4,250 stakeholders on these 25 issues to secure objectivity and diversity. And based on the results of the survey in which the GRI Standards (GRI: Global Reporting Initiative, a nonprofit organization that develops international sustainability guidelines), the assessment items of ISO 26000 and SRI (Socially Responsible Investment), SDGs (Sustainable Development Goals) and review by the President are reflected and after discussions at the Management Meetings and others within the Company, we developed a materiality map. And finally, we narrowed down the list of materiality issues to and formally determined five items at the Board of Directors meetings.

Concerning these materiality issues, we will set long-term goals to be achieved and formulate an action plan to contribute to resolving social issues through business activities and develop as a company.