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 and 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 recycling-based society with innovative thinking and technology

Prioritized themes			Assumed risks and opportunities
Climate change initiatives, zero waste, carbon neutral, developing technology for hydrogen-based society, initiatives for the diversification of energy sources, and harmony with nature			Risk: Carbon tax and other environment-related regulations becoming stricter than anticipated Opportunity: Expansion of new business areas
Long-term vision	Short- and medium-term KPIs		Results (FY2024)	Target (FY2025)	KPI (FY2030)
Achievement of carbon neutral	Carbon neutral*	Scope 1 & 2 total emissions	74,000 t-CO₂ -33%	72,000 t-CO₂ -35%	-60%
	Carbon neutral*	Scope 3 total emissions	1,716,000 t-CO₂ -13%	—	-28%
	Clean energy	Renewable energy ratio	23%	28%	55%
	Clean energy	Energy creation ratio	0%	—	5%
Achievement of circular economy	Promotion of zero waste emissions*		-41%	Below the previous year	-5% (intensity)
Contribution to nature positive	Water usage*		-29%	Below the previous year	-5% (intensity)
Contribution to nature positive	A factory co-existing with nature		1 plant	1 plant	5 plant
Developing technologies in new sectors	Intellectual property accumulation (Cumulative patent applications filed since 2023)		220 (cumulative)	83 (single year)	500 (cumulative)
Developing technologies in new sectors	Industry-academia-government collaboration		19	20	25

Compared to FY2019

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		Assumed risks and opportunities
Human resource development, diversity, work style reform, safety/health, DX (robotification and IoT), and employee engagement		Risk: Increase in employee training costs Opportunity: Increase in opportunities to acquire professional human resources
Long-term vision	Short- and medium-term KPIs	Results (FY2024)	Target (FY2025)	KPI (FY2030)
Creating a workplace that enables our diverse human resources to actively thrive	Software/electronic human resources (Non-consolidated)	105 people	108 people	270 people
	Digital human resources (Non-consolidated)	53 people	75 people	220 people
	Female managers (Non-consolidated)	6 people	6 people	10 people
	Female managers (Consolidated)	89 people	93 people	110 people
	Executives in overseas offices (General Manager level and above) Fulfillment ratio of posted national staff	73.1%	73.7%	90%
	Employee engagement score	53 points	55 points	60 points
	Male childcare leave acquisition rate	76.9%	83.0%	90%
	Skilled human resource development at Aisan Academy	18 people	21 people	22 people
Building a health and safety culture based on mutual encouragement to call on each other for anything	Frequency of occupational accidents (lost-time)	0.46	0.3	0
	Ratio of employees receiving comprehensive medical checkups	82%	90%	100%
	Number of employees with mental health problems	15	12	0
	Ratio of smokers	21.6%	19%	15%

Compared to FY2019

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

Prioritized themes		Assumed risks and opportunities
Human rights, sustainable procurement, and harmony with the local community		Risk: Increase in engagement costs Opportunity: Acquisition of human resources with diverse backgrounds
Long-term vision	Short- and medium-term KPIs	Results (FY2024)	Target (FY2025)	KPI (FY2030)
Maintain the status as a company trusted by the community and society	Sustainable social contribution activities (total number of participants)	1,596 people	1,500+ people/year	1,500+ people/year
Realization of sustainable procurement (promotion of business activities that give consideration to environmental issues, human rights issues, compliance, etc.)	Sustainability check implementation rate	100%	100%	100%
	Compliance violations at suppliers	0	0	0
	Conflict minerals confirmation rate	100%	100%	100%

Compared to FY2019

Governance

GovernanceEstablishing a governance system stakeholders can rely on

Prioritized themes			Assumed risks and opportunities
Corporate governance, compliance, risk management, and information security			Risk: Erosion of corporate value Opportunity: Capture new business opportunities
Long-term vision	Short- and medium-term KPIs		Results (FY2024)	Target (FY2025)	KPI (FY2030)
Number of serious violations of laws and regulations: 0	Number of serious violations of laws and regulations		0	0	0
	Employee awareness level on compliance		3.49	3.79 or higher	3.79 or higher
	Level of helpline recognition		89%	100%	100%
Number of incidents: 0	Achievement rate of All Toyota Security Guidelines (V9)		90%	100% (Non-consolidated)	100% (Consolidated)
Number of incidents: 0	Achievement rate of Cyber Security Guideline (Lv3)		Lv2 100% (Consolidated)	Lv3 100% (Non-consolidated)	100% (Consolidated)
Accurate and prompt disclosure Proactive voluntary disclosure	Disclosure standards compliance rate		100％	100％	100％
Company-wide risk assessment and management execution	Establishment of the risk management system		Identification of priority risks	Establishment of an enterprise risk management (ERM) system	Steady implementation of ERM across the entire Group
Human life first (rescue and relief)	Development and recognition of response standards for large-scale disasters	Code of conduct	Familiarization training	Operation of the standards	Operation of the standards
Human life first (rescue and relief)		Recognition	100%	100%	100%
Contribution to regional recovery	Stockpiling of relief supplies		Food stock rotation	Food stock rotation	Food stock rotation
Prompt restoration of production	Establishment of a system that can restore the production within a week		3 practical activities Expansion of products subject to spare parts inventory visualization	Revision of production core system (visualization of intermediate inventory)	System construction/maintenance training

Compared to FY2019

View governance initiatives here

KPIs/targets and results related to key issues