Materiality
In the midst of rapid environmental changes, for a company to achieve sustainable growth, it is essential not only to drive business forward but also to contribute to solving social issues and to develop the ability to anticipate and adapt to changes in the times. Even in an era of high uncertainty, for our group to continue creating value that benefits society and earns the support of stakeholders, we have identified 11 ESG materialities. These are structured around three key themes―Manufacturing, Environment, and People―as well as the Management Foundation, which supports them.
In conjunction with the formulation of the "Medium-Term Management Plan 2027," we reviewed our ESG materialities. While we have decided to continue with the existing materialities without changes, we have reclassified "Respect for Human Rights"―previously categorized under the theme of "People"―as part of the "Management Foundation," recognizing it as a fundamental element that should be emphasized across all corporate activities.
Identification Process
STEP1: Identify ESG Issues
ESG Issues are identified based on a comprehensive consideration of international frameworks, external initiatives, and guidelines related to sustainability.
STEP2: Perform a 2-axis Evaluation of Importance
The importance of ESG issues to stakeholders is plotted on the vertical axis, based on weights assigned by research organizations such as the FTSE, MSCI and SASB. The importance to the Group is plotted on the horizontal axis following a management review. A materiality map is created based on these results.
STEP3: Identification of Materiality
We set our 11 materiality by adding elements that support the people who are essential for our business activities. As well, we will drive growth through those issues that are important to both stakeholders and the Sanwa Group (shown above). At the same time, we integrated and reorganized the content of our priorities and put that into words.
STEP4: Setting Targets (KPIs) / Disclosure of results
We have established medium- to long-term goals (KPIs) linked to each materiality and are actively promoting related initiatives. In line with the launch of the "Medium-Term Management Plan 2027," which began in fiscal year 2025, we have revised some KPI items and raised certain numerical targets.
Materiality
| Theme | Materiality | SDGs to which we can contribute |
|---|---|---|
|
Manufacturing |
Mitigate/adapt to climate change, prepare for disaster loss through products and services |
|
| Quality Assurance and Enhancement | ||
|
Environment |
Initiatives Towards a Decarbonized Society |
|
| Water Resources Conservation | ||
| Waste Reduction | ||
|
People |
Human Capital Development |
|
| Promotion of Diversity | ||
| Health and Safety | ||
|
Management |
Corporate Governance |
|
| Respect for Human Rights | ||
| Compliance |
Manufacturing-Solve Social Issues Through Our Business-
The Sanwa Group has been protecting lives and property from disasters and crime while contributing to the realization of a safe, secure, convenience society. We do this by supplying fenestration products globally that prevent, protect, and separate, including shutters, doors, and partitions.
When the Sanwa Group was first founded, shutters were widely used to prevent crime, but there has since been gradually growing demand for protection against fire, smoke, and earthquakes. In recent years, demand has been growing for products that improve a building's energy efficiency (to help decarbonize society), so has demand been growing for waterproof and wind-resistant products in response to more intense rain and typhoons due to climate change. We are helping to address societal issues with proven technology and quality to create both a sustainable society and to fulfill increasingly diverse requirements.
Mitigate/adapt to climate change, prepare for disaster loss through products and services
Quality Assurance and Enhancement
Environment-Achieve Environmental Sustainability-
To contribute to the transition to a decarbonized society, the Sanwa Group is proactively reducing greenhouse gas emissions by making all business processes more energy efficient and by using renewable energy. In May 2022, the Group set a FY2024 reduction target of 10% (Sanwa Shutter Corporation) from the FY2019 level, in addition to the existing FY2030 reduction target of 30% (Sanwa Shutter Corporation) from the FY2019 level. Furthermore, the Group aims to achieve virtually zero CO2 emissions from business activities by 2050,promoting efforts to achieve carbon neutrality.
We will also supply products and services that conserve resources to help convert our existing mass production/consumption economy into a circular economy. We will do this by reducing the use of raw materials, increasing production yields, extending product lifespans, streamlining packaging, promoting green purchasing, and designing for easier recycling.
Initiatives Towards a Decarbonized Society
Initiatives Towards a Decarbonized Society
Water Resources Conservation
Water Resources Conservation
Waste Reduction
Waste Reduction
People-Create a Pleasant and Rewarding Work Environment-
The Sanwa Group will achieve sustained growth in corporate value by offering a pleasant, fulfilling employment experience to every employee; by respecting diversity; by providing equal growth opportunities and evenhanded performance evaluations, regardless of gender or age; and by ensuring a safe, accommodating work environment.
In particular, the installers that support our access systems are aging. In response, we are now recruiting workers and improving safety in several ways: offering more educational opportunities, increasing employee benefits, reducing the labor required for installing products, and using management systems for installation processes.
Human Capital Development
Promotion of Diversity
Health and Safety
Management Foundation
The Sanwa Group will contribute to attaining the SDGs' goals by proactively addressing the three themes mentioned above.
To build the foundation for these activities, we believe that developing transparent, sound management systems,respecting human rights and conducting business activities with fairness and integrity through strict compliance and risk management are essential for supporting our operations and contributing to reaching the SDG's targets.
Corporate Governance
Corporate Governance
Respect for Human Rights
Respect for Human Rights
Compliance
Compliance
Materiality and Contributing to SDGs
In September 2015, the UN General Assembly adopted the 2030 Agenda for Sustainable Development and set 17 Sustainable Development Goals (SDGs) that included 169 targets.
As a company operating around the globe and one that uses the earth's limited resources, we believe that a part of the mission of the Sanwa Group is helping to attain the SDGs through our business processes, products, and services.
In the Sanwa Global Vision 2030, announced in May 2022, we outlined our intention to achieve a virtuous cycle of increased earnings and resolving social issues through our core business by providing high-performance solutions to important social issues, such as climate change.