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MATERIALITY

We identified materialities with the participation of our employees and external experts. We will formulate KPI (Key Performance Indicators) and medium- to long-term targets linked to materialities, and accelerate our efforts to achieve these targets.

Materialities Relevant Social Issues Main Measures KPIs (Action Metrics)

Creating an environmentally friendly society

Energy management Promotion of Energy Business (renewable energy)
  • Sales in the Energy Business
  • Repowering technology and improvement of opportunity losses
Sustainable use of resources Promotion of waste reduction and resource conservation through business activities
  • Reduction of food loss
  • Reduction of waste
Reduction of environmental impact through products and services Provision of eco-friendly products and services Expanding sales of eco-friendly products, power-saving semiconductors, event sensors, etc.

Promoting the success of diverse human resources

Prohibition of discrimination and harassment Implementation of discrimination and harassment training Training participation rate: 100% (all employees are in scope)
Effective utilization of human capital Creation of an environment in which employees can thrive and play an active role Employee awareness survey response rate: 90% or higher
Promotion of diversity Promotion of diversity initiatives (diversification of human resources and effective utilization of human capital) Ratio of females in management positions: 10% in FY2030

Protecting the lives of all people

Contribution to local communities and culture Promotion of regional revitalization based on IT and transparency to local governments (introduction of council system) Number of deployments in local governments
Contribution to stable food supplies Stable supply of safe and secure food Vegetable Factory Business sales

Realizing a better society through innovation

Realization of smart cities Promotion of the development of advanced technologies and products that contribute to the realization of smart cities Expansion of sales of businesses related to smart cities, municipalities, and commercial facilities (including IoT solutions and terminal businesses)
Creation of industrial infrastructure through technological innovation
Promotion of data security Contribution to the realization of a safe and secure digital society by protecting information assets through security solutions Cashless payments, access control, biometric authentication, and other security terminal markets: supply of such products (including data storage algorithms)

Building a sustainable supply chain

Enhancement of supply chain management Improvement of productivity in procurement Annual procurement transaction amount per person: FY2025 up 20% (versus FY2022)
Risk management of major accidents
  • Promotion of business related to disaster prevention (BCP)
  • Provision of solutions related to the establishment of disaster management offices
  • Provision of disaster response drones
Disaster prevention (BCP)-related business sales and target number of projects to be awarded
  • Disaster management offices
  • Disaster response drones

Materiality Identification Process

Extraction of
Social Issues

We extracted the social issues to be considered in the process of identifying materiality.

We have created a long list of 45 items in total by extracting social issues that have attracted widespread attention in society from the evaluation items of international guidelines and ESG investment indexes. We added issues specific to our industry and Restar Group based on interviews with each business unit and the results of benchmarking other companies.

Prioritization

The 45 social issues identified were evaluated and prioritized in terms of their importance to our stakeholders and to our business.

As a result, 13 social issues were selected.

Formulation
of a Materiality Proposal

The 13 selected social issues were organized into five themes based on their characteristics, and a materiality proposal was drafted.

Verification
of Validity

The process leading to the selection of the materiality proposal and 13 related social issues was verified for validity by exchanging opinions with external experts.

Identification
of Materiality

The materiality proposal and 13 social issues were approved by the Board of Directors and identified as our company's materiality.