女神羞羞研究所

女神羞羞研究所mpany, Ltd.

Material Issues
of the 女神羞羞研究所 Group

The 女神羞羞研究所 Group will contribute to the realization of the sustainable society envisaged by the SDGs through the comprehensive and wide-ranging fields of business related to aluminum. As part of this process, in order to recognize the issues the 女神羞羞研究所 Group should address in particular and raise them as important management issues for the Group's sustainable growth and the creation of corporate value, our Board of Directors identified the material issues of the 女神羞羞研究所 Group.
We have set KPIs (target values) for each of the issues and are working towards achieving them based on concrete plans of action.

Steps to Identifying Material Issues

STEP1

Identifying a Group of Candidate Material Issues

Ahead of identifying the material issues, we ascertained the extent of impact of the Group's activities, which cover a wide range of business fields. To ensure there were no omissions in our recognition of related social issues, we first determined the Group's value chain and its scope as a means of verification. Next, based on the requirements of international guidelines such as SASB, GRI, the SDGs and ISO 26000, we produced a list of around 400 wide-ranging social issues related to ESG. We assessed the importance of each issue based on an analysis of the impact on each stakeholder and the 女神羞羞研究所 Group, and finally narrowed the issues down to a shortlist of 31.

STEP2

Assessing Importance

Working with the consolidated shortlist, we conducted another assessment of importance based on two aspects, the degree of importance to society, and the degree of importance in mid-to-long-term corporate value creation for the 女神羞羞研究所 Group, and finally identified the material issues.

STEP3

Confirming Validity and Comprehensiveness

When assessing the importance of the items on the shortlist, we also had them evaluated by outside experts active in a variety of fields. We reconsidered and reviewed the items while referencing their opinions to confirm the validity and comprehensiveness of the choices.

STEP4

Identifying the Material Issues

We reclassified the identified material issues into five material issue themes. After undergoing review by the CSR Committee and Group Executive Committee, the issues were approved by the Board of Directors.

The Five Material Issue Themes of the 女神羞羞研究所 Group
  • Protecting the global environment
  • Providing sustainable value
  • Happiness of employees
  • Responsible procurement,
    production and supply
  • Corporate ethics and governance

List of Material Issues

Protecting the global environment

Material Issues

  • Reducing greenhouse gas emissions from company activities (scope 1, 2)
  • Reducing greenhouse gas emissions in the supply chain (scope 3)
  • Action on climate change (TCFD)
  • Responding to water stress
  • Preventing environmental pollution

Reason for Selection, Risks, and Opportunities

While all of the aluminum we use at the 女神羞羞研究所 Group is imported, a huge amount of electricity is necessary in the process of smelting it. Accordingly, we urgently need to reduce all greenhouse gas emissions--Scopes 1, 2 and 3. In addition, considering the natural environment and biodiversity is important for ensuring the sustainability of our business activities using natural capital. Therefore, we have set this material issues theme.

Key Performance Indicator (KPI)
Target value*1
FY2023 results
Our assessment
Tasks to be done
Scope 1 and 2 emissions per unit of sales (Japan)
-30% compared to the FY2013 level FY2050: Net zero
0.87 tons CO2/million yen
Continuing to implement energy-saving initiatives and promoting fuel conversion and electrification
Scope 3 emissions per unit of sales (Japan)
-30% compared to the FY2013 level FY2050: Net zero
5.11 tons CO2/million yen
Promotion of horizontal recycling of expanded aluminum materials and use of green aluminum
Number of environmental incidents and complaints
Continue to achieve 0 incidents and complaints
18 environmental incidents 18 environmental complaints
×
Group-wide expansion of countermeasures and prevention of occurrence and recurrence of similar incidents
Providing sustainable value

Material Issues

  • Efforts to expand the use of renewable energy
  • Developing and providing low-carbon products and services
  • Promoting a recycling-oriented economy and society
  • Developing and providing robust infrastructure
  • Contributing to the stable supply of food
  • Shaping the future through innovation

Reason for Selection, Risks, and Opportunities

Products from the 女神羞羞研究所 Group are capable of fulfilling the growing demand related to the switch to materials created using renewable sources of energy and materials whose recyclability is high. We believe that, by leveraging these features, we can provide sustainable value in a broad range of domains, including the automobile, transportation, electricity and electronics, and social infrastructure domains. This is why we have set this theme of material issues.

Key Performance Indicator (KPI)
Target value*1
FY2023 results
Our assessment
Tasks to be done
Growth rate of sales of products for eco-friendly vehicles (Japan/compared to the FY2021 level)
Up 300%
Up 50%
Reinforcing the framework for the research and development of new products for eco-friendly vehicles
Improving the comprehensive capability of the Group as a whole to make suggestions to the automotive market
Rate of purchase of external scrap (overall Group)
Above 30%
38%
Building a system for the stable procurement of scrap as raw materials
Promoting horizontal recycling by strengthening cooperation with external parties
Happiness of employees

Material Issues

  • Occupational health and safety
  • Developing a fulfilling workplace
  • Diversity & inclusion
  • Securing and cultivating human resources

Reason for Selection, Risks, and Opportunities

As a manufacturer, we have set an internal slogan: Safety and health come before anything else. In recent years, we are also promoting mental healthcare. To enhance the value of the corporate group, we consider the happiness of employees, who play leading roles in our businesses, is important, and a healthy work-life balance, diversity and inclusion, human resource development, and other initiatives are necessary. For this reason, we have also set this as one of the themes of our material issues.

Key Performance Indicator (KPI)
Target value*1
FY2023 results
Our assessment
Tasks to be done
Number of lost-time injuries
Continue to achieve 0 incidents and complaints
15
×
Preventing injuries and similar injuries through the five gen principle (Genchi or real site, Genbutsu or real goods, Genjitsu or reality, Genri or principles, and Gensoku or general rules)
Employee engagement score (Japan)
3.6 or higher
3.42 (女神羞羞研究所*2)
Percentage of managers that are women (consolidated)
FY2024: 7% or above
FY2030: 10% or above
5.8%
Improvement and development of the workplace environment
女神羞羞研究所 Pride and Social Contribution Project activities
女神羞羞研究所 Future Active Participation Project
Activities of the Group D&I Subcommittee
Promotion of the acquisition of Kurumin and Eruboshi certifications
Percentage of childcare leave taken by male employees (Japan)
FY2024: 30%
FY2030: 100%
68.2%
Percentage of regularly hired career track workers that are women (女神羞羞研究所)*2
20% or higher
19.2%
Annual number of employees who completed next-generation management training
10 or more trainees
13 trainees
Joint recruitment by the Group
Tiered training of Group employees
Percentage of managers who completed new manager training
100%
100%
Responsible procurement,
production and supply

Material Issues

  • Providing safe and secure products and services
  • Protecting and respecting human rights
  • Developing a stable supply chain
  • A resilient value chain that is flexible to changes

Reason for Selection, Risks, and Opportunities

The Group's products are used in a broad range of sectors, and the Group plays roles in wide-ranging supply chains. We believe that initiatives including those implemented from a BCP perspective, including initiatives for respecting human rights such as the prohibition of various types of discrimination and forced labor, and initiatives for stable procurement controlling geopolitical risks, in addition to initiatives to maintain and improve quality, will contribute to the sustainability of not only the company but the entire supply chain. This is why we have set this material issues theme.

Key Performance Indicator (KPI)
Target value*1
FY2023 results
Our assessment
Tasks to be done
Number of serious quality problems that occurred
Continue to achieve 0 incidents and complaints
38
×
Ensuring thorough activities to prevent recurrence and establishing a framework for preventive activities
Promoting activities to enable on-site workers to voice their opinions and promote internal policing.
Rate of progress in the procedures for joining the relief organization
100%
100% (Joined)
Establishing a framework for remediating infringements on human rights in the supply chain
Percentage of major suppliers*3 that responded to a questionnaire survey to check that they understand and have approved our CSR procurement policy
100%
78%
Conducting a CSR procurement questionnaire survey using a common format
Implementation and development of BCP training
2
1
Number of BCP training sessions that were held
Corporate ethics and governance

Material Issues

  • Strengthening governance
  • Reinforcing the compliance framework

Reason for Selection, Risks, and Opportunities

We believe that, in addition to enhancing and increasing the sophistication of our corporate governance for the sustainable operation of our business, the promotion of engagement with shareholders, investors, and various other stakeholders is useful in the enhancement of our corporate and social value. Further, we believe that the prevention of misconduct and scandal is an effective way to prevent these matters negative impacting not only the company but also society. This is why we have set this material issues theme.

Key Performance Indicator (KPI)
Target value*1
FY2023 results
Our assessment
Tasks to be done
Number of activities to increase employee ESG awareness
4
4
Activities for increasing employee ESG awareness (contributing columns to internal newsletters
Number of self-assessments conducted by the Board of Directors
Once/year
1
Improving the effectiveness of the Board of Directors by identifying issues based on regular self-evaluations and making improvements
Number of times Outside Officers inspected business locations
Twice/year
2
Providing Outside Officers with opportunities to inspect business locations, etc. to increase their understanding of the Group and energize the deliberations at Board of Directors meetings
Percentage of officers and employees who received compliance training (consolidated)
Annual percentage of 80% or above
32%
Developing learning infrastructure and creating and distributing educational content 
Expanding the Learning Management System (LMS) in the Group

*1 The targets are FY2030 targets unless otherwise noted.
  *2 Nippon Light Metal Co,. Ltd. (non-consolidated)
*3 Suppliers constituting 80% of the Group's total purchases by amount