While engaging in CSR initiatives, the Shindengen Group has identified ESG material issues using the identification process below. In terms of the 14 key items, we work to solve environmental and social issues through business and mitigate the negative impacts of our business activities on the environment and society.

１.How the Shindengen Group Identifies ESG Material Issues

The Shindengen Group used the following process to identify ESG material issues by organizing CSR focus areas and CSR key items according to the degree of impact they will have on stakeholders and the degree of importance to the Group.

Step 1: Identifying, organizing, and selecting CSR issues

We organized the CSR issues that we have addressed to date, as well as the relevant global standards and customer requirements.
Global standards referred to: GRI Standards, SDGs, ISO 26000, SASB, OECD Guidelines, the Ten Principles of the United Nations Global Compact

Step 2: Organizing focus areas of importance to our stakeholders and the Group

We reviewed and analyzed the selected CSR issues from the dual perspectives of degree of impact on stakeholders and degree of importance to the Shindengen Group. We then organized these CSR issues into focus areas within the Company.

Step 3: Selecting key items and evaluating their impact on the value chain

We further refined the focus areas of CSR issues evaluated in Step 2 into 14 items, and organized them according to positive and negative impacts on the value chain and relevance to the SDGs.

Step 4: Identifying ESG material issues

Based on our evaluation of the impact of the selected key items on the value chain in Step 3, we identified and organized the key items into an ESG framework, cross-referenced them against our Medium Term Business Plan initiatives and issues, and then evaluated them from the perspective of risks and opportunities. As a result, we identified four ESG material issues. These 4 ESG material issues were then discussed and adopted by the CSR Committee (currently the Sustainability Committee) chaired by our President.