Materiality｜Sanwa Group’s CSR｜CSR Initiatives

Decision-Making Process for Key ESG Issues (Materiality)
Concrete Action

Decision-Making Process for Key ESG Issues (Materiality)

In recent years, companies are increasingly being required to implement global initiatives aimed at creating a sustainable society following the formulation of Sustainable Development Goals (SDGs), the adoption of the Paris Protocol and trends in ESG-related investment. In light of these international trends and the business environment in which the Sanwa Group operates, we have taken the following steps to identify the key issues (materiality) to be addressed by the Group.

STEP 1. Identify ESG Issues

We identified ESG-related issues taking into consideration the most prominent social issues concerning ESG, based on outside evaluations (FTSE, MSCI, Sustainalytics, Bloomberg), guidelines (GRI Standards, SASB), surveys (Toyo Keizai CSR Survey, Good Bankers SRI Survey, Eco-Brand Survey, NIKKEI Smart Work) and other means, as well as recent trends and actions by competitors.

STEP 2. Categorize Issues and Specify Key Issues Based on the Following Perspective

We evaluated the ESG issues we identified on two axes, importance to stakeholders and importance to the Sanwa Group. The evaluations took into consideration:

Degree of priority of the aforementioned outside evaluations and guidelines in the construction and building material fields
Social issues unique to the industrial fields in which the Group operates
Initiatives undertaken by industry peers
Interviews with ESG experts
Degree of impact on the Group’s operations (both positive and negative)
Issues exposed in employee awareness surveys

STEP 3. Confirm Appropriateness and Decide Key Issues

The Quality, Environment and CSR Promotion Council and Group CSR Promotion Council reviewed the key issues before deciding on them.

Concrete Action

We have decided on a policy for each key issue and are promoting concrete action.

ESG	ISO 26000 Core Subjects	Key Issues	Sanwa Group Policy	Main Initiatives
Environment	Environment	Reduction of Greenhouse Gas Emissions	The Sanwa Group contributes to the realization of a sustainable, affluent society through the reduction of CO₂ and other greenhouse gases in order to appropriately address climate change risks.	Reduce energy in logistics and at facilities
		Appropriate Waste Management	The Sanwa Group strives to promote recycling, minimize waste and reduce the environmental burden in all departments.	Measure and reduce waste
		Promotion of Green Purchasing	The Sanwa Group actively conducts environmental management by promoting green purchasing that prioritizes materials with minimal environmental impact.	Promote 3Rs (Reduce, Reuse, Recycle) for packaging materials Set green purchasing guidelines
		Providing of Eco-Friendly Products	The Sanwa Group actively promotes environmentally friendly product development and contributes to the preservation of the global environment and the realization of a sustainable society.	Disclose sales of eco-friendly building materials worldwide Commercialize eco-products and Design for the Environment (DfE) Products
Social Responsibility	Human Rights	Respect for Human Rights	The Sanwa Group respects the character and individuality of each person from the perspective of respect for humanity and conducts business activities giving due consideration to the human rights of all stakeholders, including customers, shareholders and employees.	Enhance awareness of human rights Provide training on harassment
	Labor Practices	Work-Life Balance	The Sanwa Group strives to create a work environment that motivates employees and allows them to lead fulfilling lives.	Revise long working hours Make changes to boost productivity Promote telecommuting
		Diversity	The Sanwa Group creates new value that contributes to the resolution of customer and social issues generated by our organizational culture that respects and embraces the diversity of each employee.	Promote the active role of women Recruit diverse personnel (global, female, physical/intellectual challenged) Enhance childcare and family care systems Implement athlete support programs
		Human Resource Development	The Sanwa Group focuses on the development of human resources capable of creating value by enhancing systems and work environments enabling employees to maximize their capabilities based on the view that human resources are vital management assets.	Train professional human resources Secure and train installers (including internal installers)
		Health and Safety	As a company engaged in manufacturing, the Sanwa Group recognizes that ensuring the health and safety of employees is fundamental to our sustainability and our responsibility as a Company. Thus, the Group does its utmost to create a work environment that takes mental and physical wellbeing into consideration based on the notion that this is the responsibility of the company.	Enhance safety training (Activities to make improvements at plant and installation sites, meetings on safety for installers, etc.) Take steps to reduce occupational accidents Take health management initiatives
	Consumer Issues	Offering Products and Services that Contribute to Safety, Security and Convenience	The Sanwa Group aims to safeguard the valuable lives of people and realize a more affluent and comfortable society by providing products and services that contribute to the safety, security and convenience of customers around the world.	Develop and sell products that resolve social issues Set up a system for inspecting and reporting on fire prevention equipment
		Strengthening of Quality Control	The Sanwa Group works to improve quality and safety, the primary responsibilities of a manufacturer, in all processes from development to sales, production, installation and maintenance.	Formulate and implement quality policies Strengthen installation capabilities Conduct quality audits Secure and train installers
		Improvement of Customer Satisfaction	The Sanwa Group aims to be a company that continues to be chosen by society by conducting business activities from the perspective of our customers at all times and reflecting feedback from customers in product and service improvements.	Strengthen domestic support systems Provide training on business etiquette and manners Bolster overseas sales network
	Community Involvement and Development	Regional Contribution	The Sanwa Group develops business activities based on close connections with local residents and, as a good corporate citizen, conducts activities aimed at contributing to the independent development of the local community.	Conduct community-based activities (local cleanups, product exhibitions, local production for local consumption) Participate and hold events finely tuned to the characteristics of each region
	Community Involvement and Development	Social Contribution	The Sanwa Group shares its resources, including accumulated technology and human resources, with the local community and actively works to resolve social issues without seeking direct compensation.	Provide support when large-scale disasters strike Promote activities through the Sanwa Group’s social contribution club
Corporate Governance	Organizational Governance	Corporate Governance	The Sanwa Group works to create a more highly transparent and sound management system in order to continually enhance corporate value through the realization of our management vision.	Enhance the transparency and effectiveness of the Board of Directors and Audit & Supervisory Committee Complying or explaining with the Corporate Governance Code
		Compliance	The Sanwa Group ensures compliance with laws, corporate ethics, internal regulations and rules as an important foundation to garner trust and meet the expectations of society.	Ensure compliance throughout the organization Improve the quality of the whistleblower system Provide compliance training worldwide
		Risk Management	The Sanwa Group ensures stable business management by implementing a Group-wide risk management system and working to predict and prevent potential risks, as well as by responding appropriately to risks as required for business continuity.	Establish a BCP framework Manage global risks Strengthen information security systems
		Stakeholder Dialogue	The Sanwa Group proactively works to strengthen engagement with important stakeholders such as shareholders and investors as well as with the local community and employees.	Hold dialogue with institutional investors (ESG meetings) Hold dialogue with individual investors (briefing sessions) Hold dialogue with experts
	Fair Operating Practices	Fair Competition	The Sanwa Group conducts fair business activities based on proper corporate ethics without ever engaging in unfair practices that restrict competition or improper transactions.	Provide training on antitrust laws Enhance awareness of Guidelines on Regulations Concerning Contact with Associates from Industry Peers
	Fair Operating Practices	Anti-Corruption	The Sanwa Group conducts fair and honest business activities rooted in legal compliance without ever offering bribes or inappropriate benefits that violate laws and social norms.	Implement the Compliance Code of Conduct in Japan Provide training in Asia