Management Foundation
Background and significance of materiality initiatives
With the Japanese version of the Corporate Governance Code coming into effect in 2015 and later being revised in 2021, shareholder and investor interest in corporate governance and demands for proactive initiatives have increased. As a Group that operates globally-Japan, North America, Europe, and Asia-we believe that building a highly transparent management foundation, respect for human rights, strengthening compliance, and effective risk management are essential for the Group's sustainable growth and improving our corporate value over the medium to long term. We will continue to earn the trust of our stakeholders and improve our corporate value by fully implementing corporate governance to build a fair management structure as well as internal controls to govern business activities through appropriate and sound business systems.
Sanwa Group's opportunities to create value and the risks to be addressed
Opportunities
- Maintain and improve our reputation by avoiding risks for human rights abuse as well as occupational safety and health risks
- Establish a stable management foundation by promptly responding to changes in the business environment
- Preventing damage to our corporate value
- Continuation of business as well as maintenance and improvement of corporate value
- Coexistence and mutual prosperity with stakeholders
Risks
- Sullied reputation due to human rights violations and occupational accidents
- Business continuity risk and losses due to ineffective corporate governance
- Sullied reliability and damage to corporate value due to factors such as failure of governance, fraud, misconduct, or legal violations
- Actualization of operational risks due to inadequate internal controls and risk management
KPI Overview and Progress
In May 2025, we announced the following KPIs as part of our Medium-Term Management Plan 2027.
| Materiality | Mid-Term Management Plan 2027 | Boundary | Achievements and progress in FY2024 | Achievements and progress in FY2025 |
|---|---|---|---|---|
| Response to board diversity (FY2027) | Sanwa Holdings Corporation | Changed Chairperson position of the Nomination & Compensation | Appointed a foreign-national outside director and added a female outside director (for a total of two) | |
| Number of stakeholder dialogues held: 350 times | Sanwa Holdings Corporation | 340 times | 377 times | |
| Implementation and improvement of human rights due diligence (FY2027) | Group Companies in Japan | Conduct human rights due diligence | Conduct human rights due diligence | |
| Number of participants in compliance training: 8,000(FY2027) | Group Companies in Japan | 7,807 | 10,332 | |
| Participation rate in compliance training: 100%(FY2027) | Group Companies in Japan | 99.4% | 99.7% |