Key sustainability issues (materialities)

Defining our materialities

In 2022, we defined the following five points as our materialities to be addressed in 2030 by backcasting from our vision for the society of 2030, including our VISION2030 long-term management vision and contribution to the SDGs. With respect to these materialities, the Daiseki Group seeks to achieve both progress in our business activities and the sustainability of the global environment and society, based on our corporate purpose of "being an environment-creating company that contributes to society through the environment, making the best use of limited resources."

Materiality Assessment Process

Main opinions considered

Investors
Reducing our greenhouse gas emissions
Contribution to the water cycle
Disclosure of toxic waste emissions information
Strengthening employee education and labor management
Protecting human rights
Introduction of a safety management system
Introduction of performance-linked compensation system
Strengthening Group company management
Vision 2030 target management
Compliance

Daiseki Group officers and employees
Realization of a circular economy society
Promotion of countermeasures for climate change
Demonstration of each person’s individuality and abilities
Workplaces prioritizing safety where employees can work with peace of mind
Co-existence and mutual prosperity with local communities
Gaining trust through compliance

Under our management principles of “Ideas,” “Plans,” “structures”,and “Actions” the Daiseki Group endorses the spirit of the specific action guidelines adopted by the United Nations as the Sustainable Development Goals (SDGs), and aims to become the No. 1 recycling company in Asia as "an environment-creating company that contributes to society through the environment."

The Daiseki Group's priority Issues and initiatives

ESG Materiality		FY2024 Initiatives	Stakeholder Interest	Impact on Daiseki Group Operations	Overarching Aims
Materiality Issues	Priority Issues	FY2024 Initiatives	Stakeholder Interest	Impact on Daiseki Group Operations	Overarching Aims
Making the best use of limited resources	●Circular economy ●Carbon neutrality ●Environmental protection ●Strengthening trusted relationships with customers as an environment-creating company	We obtained SBTi certification for our greenhouse gas emissions reduction targets and worked toward these goals. We received a A score from the CDP.	Extremely high	Extremely high
Creating workplace that individuals shine	●Health management (employee, family, supply chain) ●Diversity and inclusion ●Work-life balance ●Human resource development (nurturing employees to win trusts from society and customers as professionals and to be proud of own job for families) ●Workplace and company you can be proud of for your family (employees and company make safe workplace that is worth working for without any frauds)	We discussed what the future of human capital management should look like, based on our human resources development policy and in-house environment development policy.	Extremely high	Very high
Eliminating industrial and environmental accidents	●Philosophy to put safety as the top priority ●Nurturing employees who work safely as professionals ●Danger prediction training, risk assessment ●Update and expansion of necessary equipment	We implemented thorough accident-prevention measures, including investigations into the root causes of accidents and safety patrols of our customers’ premises.	Very high	Extremely high
A company well-liked by local communities	●Building relationships and trusts with residents in surrounding area ●Cooperation with local governments and universities in surrounding area ●Company that roots in and contribute to the local area through environment	We furthered our cooperation with local governments and universities by participating in local government events and implementing practical training in cooperation with universities.	High	High
Promoting thorough understanding of compliance and observation of laws and regulations	●Compliance of related laws such as the Waste Management and Public Cleansing Act ●Employee trainings by compliance study sessions ●Strengthening corporate governance	We worked to increase employees’ knowledge and awareness of laws and regulations through compliance study sessions attended monthly by all employees.	Very high	Extremely high

In line with our vision for the society in 2030, the Daiseki Group continually engages in sustainability activities that must be carried out by that date. The content of our sustainability activities are formulated with consideration of factors including our corporate purpose and materialities, the VISION2030 long-term management vision and contribution to the SDGs. The activities are approved by the Sustainability Headquarters composed of our president, other executive officers, and the presidents of our Group companies, and are then reported to the Board of Directors.