Materiality Determination

Identifying Materiality

In March 2019, Tokuyama conducted a materiality assessment to align its CSR initiatives and management priorities. This assessment extracted and identified issues that are of particular material importance to Tokuyama, so that it can concentrate its management resources on resolving these issues.

The assessment used the important social issues outlined in the ISO 26000 standards and Global Reporting Initiative (GRI) guidelines as a starting point. The stakeholder issues, issues from the medium-term management plan, and CSR goals were then reviewed to extract the CSR issues. The importance of the issues was rated from both a stakeholder and corporate perspective, and assessed for materiality as per the GRI Standard. Through this process, 13 issues of material importance were selected. Key performance indicators (KPIs) were designated for each issue, and the issues were ranked in terms of importance. After the priority and quantification of the material issues was reviewed based on third party feedback, the CSR Promotion Council made the decision to designate nine material issues and four CSR issues.

Starting in fiscal 2019, Tokuyama will implement PDCA management by verifying the action taken on material issues and achievement of KPIs, as well as making necessary improvements. The material issues will be reviewed by assessing the progress of the initiatives as of fiscal 2020, at which time the order of priority and scope of impact (boundaries) will be reviewed. Additionally, Tokuyama will engage stakeholders and external authorities in dialogue to verify the suitability of the material issues.

Materiality

Environment
Helping to fight global warming

FY2020 Targets / Key Performance Indicators (KPIs)

・Manage energy conservation and per-unit energy consumption / 3% reduction (compared with FY2005 levels) ・Disclose non-consolidated Scope 3 emissions and c-LCA* qualitative assessments ・Disclose GHG emissions including for Group manufacturing subsidiaries outside Japan *Consequential life-cycle assessment (c-LCA) is a method for assessing emissions throughout the life cycle, by adding up CO₂ emissions at each stage, from resource extraction, manufacturing, distribution, and use, to disposal.

Aspirations (FY2025)

・Reduce CO₂ emissions from energy consumption 15% reduction in BAU CO₂ emissions by FY2030, compared with FY2013 levels ・Expand Scope 3 emissions and c-LCA disclosure data
Conserving the environment

FY2020 Targets / Key Performance Indicators (KPIs)

・Waste effective utilization rate / Maintain at 92% ・Zero emissions to landfills / Maintain 99.9% reuse/ recycling rate ・Maintain low emissions of environmental impact substances ・Comply with legal requirements and other regulations, achieve zero environmental accidents / Zero accidents

Aspirations (FY2025)

・Promote recycling and maintain zero landfill waste ・Maintain low emissions of substances with environmental impact ・Comply with legal requirements and other regulations, achieve zero environmental accidents
Safety and Accident Prevention
Occupational Health and Safety
Preventing accidents and preparing for disasters

FY2020 Targets / Key Performance Indicators (KPIs)

・Accidents and disasters (requiring work absence/no absence) / Zero accidents and disasters ・Expand process safety training and drills ・Expand risk assessments, change management, and hazard prediction (kiken yochi) activities ・Utilize IoT and transfer skills ・Provide amenable working conditions

Aspirations (FY2025)

・Maintain zero accidents and disasters ・Improve process safety management leve ・Foster and improve the safety culture ・Provide amenable working conditions
Technical Quality
Developing products and technologies that address social issues

FY2020 Targets / Key Performance Indicators (KPIs)

・Develop products and technologies that help to resolve social issues, focusing on the SDGs / Expand product lines relating to IoT and heat dissipation, and create new businesses for related materials, Expand and globalize product lines related to healthcare, and create new materials

Aspirations (FY2025)

・Expand the development of products and technologies that help to resolve social issues, focusing on the SDGs
Managing chemical substances

FY2020 Targets / Key Performance Indicators (KPIs)

・Assess safety through product assessments / Zero infractions of chemical-related regulations ・Follow regulatory trends in and outside of Japan and practice compliance ・Continue to manage risk using Group-wide export control system

Aspirations (FY2025)

・Continue to strengthen chemicals management
Society
Engaging with local communities

FY2020 Targets / Key Performance Indicators (KPIs)

・Harmoniously co-exist and cooperate with communities / Community dialogue, Actively engage in community events ・Contribute to communities / Hire in the community, Social initiatives, Contribute to communities through the business

Aspirations (FY2025)

・Harmoniously co-exist and cooperate with communities ・Contribute to communities
Promoting CSR procurement

FY2020 Targets / Key Performance Indicators (KPIs)

・Develop CSR procurement guidelines / Adopt CSR procurement guidelines that take into account not only the environment but also human rights, compliance, and other key issues

Aspirations (FY2025)

・Survey and manage supply chains based on CSR procurement guidelines
Developing human resources

FY2020 Targets / Key Performance Indicators (KPIs)

・Develop the next generation of managers ・Put the right people in the right positions according to their career plan and job skills, and increase the job rotations ・Establish human resources development practice that links goals and feedback

Aspirations (FY2025)

・Develop the next generation of managers ・Put the right people in the right positions according to their career plan and job skills, and increase the job rotations ・Develop global human resources
Emphasizing diversity

FY2020 Targets / Key Performance Indicators (KPIs)

・Promote diversity and inclusion / KPIs for women in the workplace ・Employ persons with disabilities / Employment rate: 2.2% ・Promote work-life balance / Gender-free parenting/nursing care leaves ・Respect for human rights

Aspirations (FY2025)

・Promote diversity and inclusion ・Employ persons with disabilities ・Promote work-life balance ・Respect for human rights

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