Material IssuesMaterial Issues in Environmental, Social, and Governance Management (ESG Materiality)

Approach to Materiality

In response to changes in the social environment, we formulated ten material issues in 2023, aligned with our new growth strategy. Among these, three—creating a more inclusive society, realizing a sustainable society, and supporting community development—have been positioned as the strategic axes of CSV (Creating Shared Value), through which we work to address social challenges via social businesses.
To strengthen the management foundation for realizing CSV, we have identified new risks and opportunities and set KPI targets linked to each materiality. By managing these KPIs, we facilitate the smooth execution of business activities and build a framework that supports the creation of new business models and innovation.
By simultaneously expanding both social value and economic value, we aim to achieve the sustainable enhancement of corporate value while contributing to the development of society.

10 material issues (priorities)

CSV Through Social Businesses for Society’s Challenges

Striving to establish earnings foundations and pursuing unique business models that draw on our unique strengths

Material Issues Theme Specific Initiatives
  • S
Creation of a more inclusive society
  • Creation of jobs for those who lack employment opportunities
  • Creation of opportunities for people with disabilities
  • E
Realization of a sustainable society
  • Support for a society characterized by decarbonization
  • Calculation of greenhouse gas emissions
  • Seeking of consultations for environmental disclosure
  • S
Support for community development
  • Rectification of regional disparities through job creation
  • Opening of locations and creation of jobs in provincial areas
  • Support for business succession

Enhancement of Management Foundations to Support ESG Value Creation

Streamlining the execution of business activities further by identifying opportunities and risks and managing key performance indicators

Material Issues Opportunities Risks
  • S
Promotion of DE&I
  • Leveraging of diverse human resources to create new value
  • Loss of new business opportunities due to imbalances in attributes or skills
  • Less effective organization due to lack of diversity
Promotion of employee well-being
  • Improvement of productivity by strengthening engagement
  • Improvement of employee retention through workstyle transformation
  • Impaired productivity due to lower satisfaction
  • Employees taking leave due to mental health concerns
Hiring and development of human resources to strengthen corporate value
  • Creation of the next generation of managers
  • Securing of human resources and reskilling through enhanced HR measures
  • Growing competition for human resources due to shrinking workforce
  • Stagnating strategy implementation due to human resource outflows and shortages
  • G
Maintenance and strengthening of governance
  • Enhancement of the Board of Directors’ functions for business growth and increased corporate value
  • Loss of business value due to dysfunctional governance
Thoroughgoing compliance
  • Damage to reputation and loss of public confidence due to compliance violations
Information security
  • Operational suspension or information leaks due to cyberattacks
  • E
Response to climate change
  • Increase in the provision of services with reduced environmental impact
  • Establishment of a sustainable operating structure
  • Amendments of regulations and policies for existing businesses
  • Operational shutdowns due to typhoons and earthquakes

For more information on KPI performance and targets, please click here Detailed version of material issues

Identification Process for Material Issues

In considering the economic, environmental, and social impacts of our diverse business activities, we examine their relevance to each business and identify the material issues (materialities) that must be addressed with priority to enhance medium- to long-term corporate value. Identification of material issues is carried out based on the following process, and each year we discuss whether revisions are necessary.

Identification Process for Material Issues
Process of identifying material issues