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Sustainability Management Material Issues
(Materiality)

In response to the social issues raised in ISO 26000 and the SDGs, we have identified material issues (materiality) that we should address through our business activities as a company with the Group Purpose, “With our revolutionary environmental innovations, we activate the Earth’s future.”
In May 2023, we announced our Long-Term Vision for 2040, which includes the resolution of materiality as an Environment-Creator™. In our 2026 Medium-Term Management Plan announced around the same time, we set materiality as a non-financial KGI and KPI to be addressed.

Material Issue
Identification Process

ISO 26000 / Social issues such as the SDGs

Achievements and Plan for Material Issues

FY2024 plan and achievements for material issues
Themes Goals Main indicators FY2024 KPIs Achievements
Climate and nature-related
 CO2emissions reduction Promote carbon neutrality with environmental technologies
  1. CO2emissions amount
  2. Rate of
    hybrid leased vehicles
  1. Scopes 1 + 2
    Results compared to
    FY2022
    -8.4%
    Scope 3
    Results compared to
    FY2022
    -5.0%
  2. Vehicles targeted for lease renewal
    100%
  • At the Sustainability Promotion Committee and Future Strategy Council:
    • Discussion of more aggressive measures and ways to approach avoided emissions as an Environment-Creator™
    • Sharing of the need to improve efficiency in gasoline use and trial-operation power efficiency
Waste, plastic reduction, etc
  1. Reduction of materials from time of start of building construction
  1. 10% reduction from time of construction start
    Recycling rate of industrial waste at construction sites of 85% or higher
  • Ongoing T-Base® implementation (Tokyo subsidy project)
    • Building of a recycling loop for waste plastics at construction sites
    • Ongoing progress toward first certification for recycled plastics
Other
  1. SSBJ standard disclosure
  2. CDP Corporate Questionnaire
  1. Preparation for disclosure in FY2028
  2. Measures to achieve an “A” rating in the CDP Corporate Questionnaire
  • SSBJ response (formerly TCFD)
    • Disclosure of financial impacts
    • Beginning of TNFD assessment
  • CDP Corporate Questionnaire “A” rating
  • Selected as an A-rated Supplier Engagement Leader
  • GX League and JCLP participation and information gathering
Wellbeing
 Engagement As an Environment-Creator™, collaborate with diverse talent inside and outside the company to co-create environmental value with business partners
  1. Engagement survey
  1. “Opportunities for growth” engagement indicator:
    +4 points, etc.
  • Engagement surveys conducted four times a year, showing improvement mainly in the engagement indicator
Diversity promotion
  1. Percentage of male employees who took childcare leave
    (at least one week)
  2. Engagement survey
  1. 90% or higher
    (targeting 100% by around 2030)
  2. Monitoring of the “diversity acceptance” index
  • Raised the position ceiling for area employees from manager to general manager
  • Held TWP 2025 (group events, role-model talk sessions, various training programs, career lectures at Sagami Women’s University, site visits, etc.)
  • Opinion exchange meetings held for various employee groups (senior citizen human resources, mid-career professional hires)
  • Cross-cultural presentations by international employees
  • Asu-Challe! Academy program held at the Kyushu Branch
Human rights
  1. Supply chain human rights due-diligence initiatives
  1. Due diligence carried out for all Kowakai Excellent Partners
  • Due diligence carried out for Kowakai Excellent Partners (49 companies, 100% response rate)
  • Enhancement of human-rights literacy for executives and employees
Business infrastructure
 Reduction of shares held for policy purposes Support for realizing our mission and vision and driving growth through governance, finance, and other business foundations
  1. Net asset ratio
  1. Less than 15% by the end of March 2027
  • As of the end of March 2025: 17.6%
    (net asset ratio down 5.3 points year on year)
Dialogue with stakeholders
  1. Number of dialogues
  2. Number of IR events and participant trends
 150 participants or more
(including 5 new participants)
  • Meetings with 522 people from 206 companies in FY2024 (including 136 new contacts)
  • Numerous events such as domestic and international securities firm conferences, on-site facility tours/IR Day, and financial results briefings