STEP 1 Identify candidate issues from among a group

Placing 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 issue proposals based the SDGs, population trends, regional characteristics, industry trends, and other information.

STEP 2 Narrow down the list and evaluate proposed issues

Evaluate proposals based on two axes: impact on medium- to long-term corporate value and impact on stakeholders. The stakeholders’ axis is assessed (questionnaire conducted) by outside directors, auditors, and outside experts. Impact on corporate value is evaluated by all directors and auditors.

STEP 3 Creation of material issues map

Create a scatterplot using the evaluation axes as the horizontal and vertical axes. In addition to issues with high levels on both axes, the Company rechecks 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 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.