For investors

Materiality

Basic Concept

Kyuden Group is promoting sustainability management that simultaneously creates social value and economic value through its business activities. In April 2022, we identified materiality as key management issues to realize this goal. Through these materiality initiatives, we will contribute to a sustainable society and create medium- and long-term growth for our company. In addition, we will continuously review materiality based on the latest social conditions and business environment.

Materiality and key issues

Material goal	Key Issues
Becoming Carbon Minus	Carbon reduction and decarbonization of power sources (make renewable energy into our main source of power, safe and stable generation of nuclear power, overseas business, among others) Promotion of electrification Proposals and involvement in energy policy Promoting energy conservation Contributing to a circular economy Supporting a nature positive future Promotion of environmental management
Advancing solutions to meet diverse customer needs	Stable energy supply Solution enhancement
Co-creation with local communities to create value and growth	Creating comfortable and sustainable cities Revitalization of local economies
Human capital management to drive value creation	Bringing about a smart society Acquiring and developing the talent necessary to achieve business strategies Establishing a system where employees can explore their potential Creating an environment where diverse talents can excel Building a foundation for stable employment
Accelerate corporate transformation through DX leadership	Comprehensive business reform through digital technology Advancing data utilization to drive corporate transformation Cultivating and securing talent to promote Digital Transformation(DX) and system development
Strengthening governance to support innovation and growth	Improving the effectiveness of corporate governance Enhance risk management structure Ensure compliance Improving supply chain management Ensuring information security Improving stakeholder engagement (building up trust with stakeholders) Improvement and strengthening of financial structure

Process for identifying Materiality

STEP 1 Identifying key issues

In order to simultaneously create social value and economic value (corporate value), we identified issues that both impact society and the company. Referencing to SDGs and Kyushu region`s growth strategy, a list of social issues was created and by using the Management Vision of the Kyuden Group, issues impacting Kyuden Group were determined.

STEP 2 Evaluating issues

The issues that were identified in STEP 2 were evaluated using two indexes: social value (the degree of importance to society) and economic value (the degree of importance to Kyuden Group).

STEP 3 Designing a materiality proposal

Issues evaluated as highly important in STEP 2 were extracted as key issues and an initial review was made by the Sustainability Promotion Committee and organized into a materiality proposal.

STEP 4 Assessing validity

Through exchanges with external experts, we gathered various stakeholder’s perspectives and assessed the validity of materiality proposal and identification process of STEP 3.

STEP 5 Identifying Materiality

The Sustainability Promotion Committee conducted the final review of the materiality proposal, which was then approved by the Board of Directors. The Board of Directors also deliberates the necessity of reviewing the materiality every year, taking into consideration changes in social conditions and the Group's business situation.

For investors

Please note that in case of discrepancy in interpretation, the Japanese version shall prevail.