Material Issues | CSR | S-Pool, Inc.

Approach to Materiality

In response to changes in the social environment, the S-Pool Group identified 10 material issues in 2023 that are closely linked to its growth strategy.
Among these, we have positioned the realization of an inclusive society, the realization of a sustainable society, and the revitalization of local communities as three priority areas for CSV (Creating Shared Value), and we are working to address social issues through our social businesses.
To strengthen the management foundation that supports these initiatives, we have also identified the risks and opportunities associated with each material issue and established relevant KPIs and targets. By continuously monitoring progress, we aim to steadily advance our business activities while also creating new business models and fostering innovation.
Through these efforts, we seek to achieve both social and economic value, thereby contributing to sustainable growth in corporate value and 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

Detailed version of Materiality

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