Materiality

Identifying Materiality

The Aisan Group identifies materiality (key issues) based on the view that in order to implement sustainability management, it is necessary to identify materiality on a timescale that looks 50 to 100 years into the future. The Sustainability Committee, chaired by CRO, examined the vision, risks and opportunities with experts in order to identify materiality and KPIs related to the environment, human resources and culture, society, and governance, with the aim of realizing VISION2030, “Beaming future is in our hands.”

Specific processes

Step1, Establishment of a vision of the future society. Step2, Identification of potential materialities. Step3, Assessment/ analysis of potential materialities. Step4, Identification of materiality.

Establishment of future social vision and identification of potential materiality

Step 1 and Step 2 diagram. Setting Aisan Group’s materiality and KPIs in the current Medium-term Management Plan (2025) and VISION2030 (for 2030)

Assessment and identification of materiality

Step 3 and Step 4 diagram. Evaluating and identifying materiality items where stakeholders importance aligns with our company’s priorities.

Aisan Group’s Materiality

In order to achieve the goal of “beaming future is in our hands” as stated in VISION2030, the Aisan Group will take on the challenge of technological innovation, including EV and hydrogen technologies, and aim to become the top manufacturer of environmental technologies. In order to bring peace of mind and smiles to the children of the future, we have identified four materialities from a wide range of themes, taking into account both positive and negative impacts generated through our business activities, and have also set related KPIs.

Environment

EnvironmentContributing to the development of a recyclingbased society with innovative thinking and technology

Prioritized themes
Climate change initiatives, waste reduction, carbon neutrality, developing technology for hydrogen-based society, initiatives for the diversification of energy sources, and harmony with nature
Vision	KPI (Indicators)		Results (FY2023)	Target (FY2025)
Contribution to global environmental protection and the realization of a sustainable society	Carbon neutrality	Scope 1 & 2 total emissions CO₂ emissions	86,000 t-CO₂	Compared to FY2019: -25%
	Carbon neutrality	Scope 3 total emissions CO₂ emissions	203,000 t-CO₂^*	Compared to FY2019: -20%
	Clean energy	Renewable energy Offset	+10.2%	+15%
	Clean energy	Energy creation Credit	Thermal management verified	+1%

Scope 3 is the actual results for FY2022. (Non-consolidated and for Categories 1-7)

View environmental initiatives here

Human Resource/Corporate CultureDeveloping human resources that can take on challenges for innovation and promoting a corporate culture where people “mutually respect and energize each other”

Prioritized themes
Human resource development, diversity, work style reform, safety/health, DX (robotification and IoT), and employee engagement
Vision	KPI (Indicators)	Results (FY2023)	Target (FY2025)
Realize a workplace environment that enables our diverse human resources to actively participate at work	Employee engagement score	52 points	55 points
	Number of female managers	5 people	6 people
	Number of executives in overseas offices	17 people	17 people
	External verification	Kurumin accreditation (Support Raising Next-Generation Children)	Kurumin Plus accreditation
	Items for disclosure of human capital	3	19
Building a health and safety culture based on mutual encouragement to call on each other for anything	Safety and health awareness level	Indicators decided	10% increase
	Number of occupational accidents	2	0
	Number of employees with mental health problems	9	12 or less
	Ratio of smokers	24%	20%

SocialAchieving harmony with the local community and contributing to a sustainable society

Prioritized themes
Human rights, sustainable procurement, and harmony with the local community
Vision	KPI (Indicators)	Results (FY2023)	Target (FY2025)
Maintain the status as a company trusted by the community and society	Ongoing social contribution activities	12 activities/year	10+ activities/year
Realization of sustainable procurement promotion of business activities that give consideration to environmental issues, human rights issues, compliance, etc.	Sustainability check implementation rate	Guidelines formulated	100%
	Non-compliance by suppliers	0	0
	Conflict minerals confirmation rate	100%	100%

Governance

GovernanceEstablishing a governance system stakeholders can rely on

Prioritized themes
Corporate governance, compliance, risk management, and information security
Vision	KPI (Indicators)	Results (FY2023)	Target (FY2025)
Number of serious violations of laws and regulations: 0	Number of serious violations of laws and regulations	0	0
	Employee awareness level (compliance measures)	3.34	3.79 or higher
	Level of helpline recognition	80%	90%
Number of incidents: 0	All Toyota Security Guidelines	V8 100%	V8 100%
Number of incidents: 0	Cyber Security Guideline Ver. 2	LV2 100%	LV3 100%
Accurate and prompt disclosure Proactive voluntary disclosure	Disclosure standards compliance rate	100%	100%
Company-wide risk assessment and management execution	Establishment of the risk management system	Implemented by the headquarters	Establishment of the system
Human life first (rescue and relief)	Contribution to regional recovery Development and recognition of response standards for large-scale natural disasters 100% - autonomy → Ensure awareness and training	Prepared the standards	Operation of the standards
Human life first (rescue and relief)		Reached 100% recognition	Familiarization training
Contribution to regional recovery		Recognition activities	Level up
Contribution to regional recovery	Stockpiling of relief supplies	Food updated	Update
Prompt restoration of production	Establishment of a system that can restore the production within a week and implementation of continuous training	Three practical activities Horizontal development of visualization of spare parts inventory (throttle bodies)	Revision of production core system (visualization of intermediate inventory)
Prompt restoration of production	Securing backup production manpower (Cross-functional training ratio = ratio of reserve manpower secured)	Clarified the risks	100%

View governance initiatives here

KPIs/targets and results related to key issues