STEP 1　Identify candidate issue groups

With emphasis on the perspective of ESG investors, the Company focused on disclosure standards, such as SASB, and sector materiality that major ESG evaluation institutions view as important. We then selected candidate issues based the SDGs, population trends, regional characteristics, industry trends, and other information.

STEP 2　Narrow down and evaluate candidate issue groups

Evaluated candidate issues based on two axes: impact on mediumto long-term corporate value and impact on stakeholders. The stakeholders’ axis was assessed (questionnaire conducted) by outside directors, auditors, and outside experts. Impact on corporate value was evaluated by all directors and auditors.

STEP 3　Create material issues map

Created a scatterplot using the evaluation axes as the horizontal and vertical axes. In addition to issues with high levels on both axes, the Company reacknowledges candidate issues as material issues based on comments from outside experts; for example, those issues that have a high impact on corporate value even if their impact on stakeholders is not high.

STEP 4　Secure approval by the Board of Directors

After gaining approval at a meeting of executive officers, material issues were determined after being deliberated on and gaining final approval by the Board of Directors. From this point on, we will review material issues as a whole quickly and effectively, and after deliberations at the Board of Directors, we will make a final decision on how to act.