Materiality (Key CSR Challenges)

To reflect CSR challenges in our business strategy, the GS Yuasa Group analyzes and assesses the impact on business and the impact of our business on society and then clarifies the Group's materiality for items that need to be addressed. Regarding the specified materiality, as necessary we have set targets relating to our business strategy and, to achieve those targets, have formulated concrete activity plans and key performance indicators (KPIs) to gauge progress in achieving the goals.

Materiality Specification Process

Step 1: Identify risk and opportunity in CSR

For key challenges in the Mid-Term Management Plan, we identify risk in CSR (that hinders the resolution of these challenges) and opportunity in CSR (that promotes the resolution of the challenges). When identifying these risks and opportunities, our actions are based on international guidelines related to CSR.

Step 2: Specify significant risk and opportunity in CSR

We evaluate and assign a score to the scale of the CSR risk and opportunity identified in Step 1 in consideration of the impact on business (possibility of occurrence x scale of impact on business), which enables us to specify risks and opportunities as key business challenges. Next, we evaluate the impact of our Group's business activities on society relative to these core business risks and opportunities based on the number of related CSR themes and social importance. We then specify risks and opportunities that will be key CSR domains.

Matrix of key CSR domains

Matrix of key CSR domains

Step 3: Specify materiality

We order the core CSR risks and opportunities evaluated in Step 2 and then specify materiality in consideration of the response method to the risks and opportunities. In order to ensure the appropriateness of the specified materiality, where necessary we also incorporate feedback from stakeholders through dialogue with outside experts.

Materiality and Response Plan

Materiality specified by the GS Yuasa Group and its response plan are shown in the table below. With respect to materiality shown in this table, we will implement management by objectives based on the response plan and make improvements. This table also shows results of specifications after confirming the relevance between the materiality specified by the Group and SDGs* which is regarded as the universal language, for our stakeholders' understanding.

*SDGs (Sustainable Development Goals):Goals to construct a sustainable society, which were adopted by the United Nations, clearly indicating global social issues that should be solved.

Table of Materiality/Response Plan

MaterialityActivity outlineScope of application*KPI
(key performance indicator)
FY 2018 targetSDGs
Developing fair, transparent, and sound business, and anticorruption
Thoroughly fulfilling our CSR and ensuring compliance Provision of legal information and promotion of compliance training Domestic Annual frequency of issue of legal information 16 times
PEACE,JUSTICE AND STRONG INSTITUTIONS
Ratio of implementation of compliance training in training by rank for employees promoted to managerial and supervisory positions 100% of eligible persons
Overseas Overseas deployment of domestic compliance training system Understanding of local training systems
Building of system to share the legal information of each country Understanding of method of gathering legal information at overseas sites
Respect and Protection for intellectual property Thorough avoidance of infringements from third-party intellectual property rights Global Strengthening of search to prevent patent infringement(thorough implementation of surveys at the development stage) Complete operation
Promotion of the enforcement against infringement products(expansion of access channels to overseas organizations, etc.) Overseas Monitoring and enforcement of local intellectual property infringement (imitation products) Complete operation
Strict management of confidential information Promotion of security measures and strengthening of illegal /inappropriate access monitoring Global Cyberattack response ratio at time of detecting high security alerts 100%
Domestic Information leakage confirmation and response ratio at time of large data output 100%
Overseas Achievement of plan to deploy illegal /inappropriate access monitoring system in overseas Group companies 100%
Promotion of information security training Domestic Ratio of employees passing information security proficiency test 100%
Respect for human rights
Respect for individuality Promotion of human resource development programs Domestic Achievement of educational plans relating to the improvement of self-analysis skills 100%
Overseas Understanding of the state of implementation of education relating to the improvement of self-analysis skills Understanding of performance
Conservation and improvement of adequate working environment
Human resources development Promotion of human resource development programs Domestic Achievement of educational plans relating to the improvement of self-analysis skills 100%
Overseas Understanding of the state of implementation of education relating to the improvement of self-analysis skills Understanding of performance
Improvement of safety and health in working environments Promotion of the thorough management of employees' working hours and prevention of the recurrence of long working hours Domestic (1) Response ratio to prevent the recurrence of long working hours
(2) Annual frequency of labor-management consultations relating to working hours
(3) Number of days of annual paid leave acquired
(1) 100%
(2) 12 times
(3) 10 or more days/person
Overseas Understanding of the state of response to long working hours, etc. Understanding of performance
Promotion of labor safety and health risk management Domestic (1) Number of accidents requiring days off work
(2) Employees' blood lead concentration
(3) Number of Class 3 working environments
(1) None
(2) 35㎍/㎗ or less
(3) None
Overseas (1) Understanding of state of accidents requiring days off work
(2) Understanding of state of employees' blood lead concentration and setting of administrative standards
(3) Understanding of state of lead handling control concentration
Understanding of performance
Setting of administrative standards
Fulfillment of our responsibilities to provide safe and secure products and services
Provision of high-quality products Promotion of quality improvement and strengthening of quality communication (utilization of quality management system) Global Achievement of quality targets 100%
Strengthening of maintenance service setup (site expansion, personnel training, etc.) Domestic Achievement of sales targets of maintenance companies 100%
Promotion of product safety education Global Number of serious product accidents None
Global environmental conservation
Promoting environmental protection Promotion of effective use of water resources Domestic Volume of wastewater Reduce by 77% or more (compared with FY 2003)
Overseas Understanding of state of use of water recycling Understanding of performance
Contribution to realization of low-carbon society Domestic CO2 emission intensity Reduce by 5% or more (compared with FY 2013)
Overseas Understanding of state of management of Co2 emission reduction targets Understanding of performance
Promotion of measures to prevent pollution (thorough environmental risk management) Domestic Number of cases exceeding voluntary administrative standards (water and air quality) None
Overseas Understanding of state of operation of voluntary administrative standards (water and air quality) Understanding of performance
Implementation of underground seepage risk surveys Understanding of performance
Consideration of overseas deployment of voluntary used product retrieval system Overseas (1) Understanding of state of used product recovery in target countries
(2) Understanding of used product recovery systems at target sites
Understanding of performance
Developing and popularizing environmentally considered products Market expansion for our products contained in environmentally conscious products (for use in low- emission vehicles, etc.) Global Achievement of sales targets 100%
Development of products enhancing environmental performance Domestic Achievement of long-life targets for Li batteries 100%
Ensuring social responsibility within our supply chain
CSR procurement promotion Continued implementation of conflict mineral surveys Global Conflict mineral survey implementation ratio 100%
Management of supplier CSR risks Global Retrieval ratio of supplier CSR risk questionnaires 100%

*The scope of application may not cover all Group companies.