Materiality Designation Process

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Materiality Designation Process

  1. (1) Issue Identification

    Based on international guidelines such as the IIRC international integrated reporting framework and the GRI Standards, as well as SDG issues and ESG rating agency indices such as FTSE and MSCI, we identified potential (sustainability) issues with regard to our sustainable growth.

  2. (2) Determination of Each Issues’ Importance

    We evaluated the 34 sustainability issues we had identified based on a five-level scale of their importance to the Happinet Group. Taking into account the risks and opportunities they posed to our business activities, we considered each issue based on its impact on us and society, creating a matrix map to determine their importance. In creating our map, we also incorporated the results of employee surveys, stakeholder wishes, and the evaluations of outside organizations.

  3. (3) Consideration by the Sustainability Committee

    We engaged in repeated consideration of the issues based on the content of our evaluation of their importance, with the Sustainability Committee, which we established in April 2022, playing a central role. Finally, we arrived at six materialities (important issues). We then began formulating initiatives and schedules for each of our companies in accordance with each draft materiality.

  4. (4) Materiality Designation

    With the approval of the Board of Directors, we officially designated the six materialities and determined relevant initiatives for our Mid-term Management Plan (FY 2022– FY 2024). We will be working to improve upon and resolve these issues in coordination with our Mid-term Management Plan.

Materiality Map