Materiality
The Group has identified materiality with the potential to impact its medium- and long-term corporate value. We’ve established medium- and long-term key performance indicators (KPIs) for eight key issues with an extremely high level of importance for both stakeholders and the ISK Group, which we’ve determined comprise the most important issues, and will undertake specific initiatives to address them.
Under "Vision 2030 Stage II," we aim to combine business activities with sustainability through initiatives for materiality.
Process for Identifying Materiality and Establishing KPIs
The Group identified 16 materiality factors by resolution of the Board of Directors by compiling a list of themes (issues) by means of an employee questionnaire and workshops, ranking them on the basis of their importance for the Company and their importance for stakeholders, and having them reviewed by outside experts.
We established KPIs for eight of the 16 identified materialities characterized by a particularly high level of importance, and we’re managing progress by setting single- and multi-year targets and assigning a department with oversight responsibility for each.
Progress towards achieving KPIs is monitored by the Office of Sustainability Promotion, and results for each fiscal year are reported to the Sustainability Promotion Committee. KPIs are reviewed as appropriate based on progress in related initiatives, deliberated by the Sustainability Promotion Committee, and disclosed in the Integrated Report and on the website. In addition, we plan to review the materiality factors during Vision 2030 Stage II to accommodate changes in the business environment and society. We’re working to develop mechanisms for bringing information about business risks and opportunities to bear on our management from an ESG and SDGs perspective.
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Identified Materiality and Eight Most Important Issues
Issue Importance Evaluation
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Eight Most Important Issues
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Eight Most Important Issues and KPIs
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*Frequency rate of worktime injuries: Number of employees injured or killed in occupational accidents per 1 million total working hours; indicates the frequency of occupational accidents. Severity rate: Number of working days lost per 1 thousand total working hours; indicates the severity of occupational accidents.