Material Issues in Environmental, Social, and Governance Management (ESG Materiality) | CSR

Initiatives to address material issues

In 2023, the S-Pool Group established 10 material issues to reflect new growth strategies in response to the changing social environment.
The Group will strive toward solutions to society's challenges through social business reflecting these material issues, which are articulated to create shared value (CSV) along three strategic axes: helping to build a society characterized by broader acceptance and expanded normalization; realizing a sustainable society; and supporting community revitalization. Additionally, to enhance the management foundations needed to achieve CSV we have newly identified risks and opportunities and set target KPIs linked to these material issues.
By managing these KPIs, we will promote the smooth execution of business activities and the support creation of new business models and innovation. The Group strives to achieve sustained growth in corporate value and social progress by concurrently strengthening social and economic value.

10 material issues (priorities)

Value creation through business (CSV) / solutions to society’s challenges through social business

Striving to establish earnings foundations and pursuing unique business models that draw on our unique strengths

	Material issue	Theme	Specific initiatives
S	Helping to build a society characterized by broader acceptance and expanded normalization	Creating jobs for those who lack employment opportunities	Creating opportunities for people with disabilities
E	Helping to build a sustainable society	Supporting a society characterized by decarbonization	Calculating greenhouse gas (GHG) emissions Consulting on environmental disclosure
S	Supporting community revitalization	Rectifying regional disparities through job creation	Opening locations and creating jobs in provincial areas Supporting business succession

Enhancing management foundations to support value creation (ESG)

Streamlining the execution of business activities still further by identifying opportunities and risks and managing key performance indicators (KPIs)

	Material issue	Opportunities	Risks
S	Promoting DEI	Leveraging diverse human resources to create new value Improving productivity by strengthening engagement	Loss of new business opportunities due to imbalances in attributes or skills Less effective organization due to lack of diversity
	Promoting employee wellbeing	Improving productivity through heightened organizational activity Improving employee retention through work-style transformation	Impaired productivity due to lower satisfaction Employees taking leave due to mental health concerns
	Developing human resources to strengthen corporate value	Creating the next generation of management human resources Securing 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	Maintaining and strengthening governance	Enhancing the functions of the Board of Directors for business growth and strengthened 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 leaks of information due to cyberattacks
E	Addressing climate change	Expanding provision of services to reduce environmental impact Building sustainable operation structures

For more information on KPI performance and targets, please click here Detailed version of material issues

Detailed version of Materiality

Process of identifying material issues

We identify material issues (priorities) to be addressed to increase corporate value over the medium to long term through the process described below, based on consideration of the economic, environmental, and social impact of the S-Pool Group's various businesses. Then, the need to review these key issues is discussed annually.

Process of identifying material issues