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 | Ideal State | Key Issues |
|---|---|---|
|
Leading the way toward a decarbonized society |
Achieve carbon negativity by 2050 |
|
|
Improving energy services |
Contribute to an enriching and sustainable future for customers |
|
|
Co-creating a smart and vibrant society |
Promote transformation in society and manufacturing together with the Kyushu region |
|
|
Creating a workplace environment where diverse talent can thrive |
Create future value by fostering a corporate culture in which people, and the organization itself, continue to grow |
|
|
Strengthening governance |
Establishing good governance practices to support growth |
|
*Our meaning of carbon negativity
The Kyuden Group committed to become carbon negative as a company as early as possible before 2050 by contributing to reduce GHG emissions from society as a whole, which will be larger than the amount that the Group emits.
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:
- A.Leading the way toward a decarbonized society
- B.Implementing continuous improvements in energy services
- C.Co-creating a smart and vibrant society
- D.Promoting Diversity and Inclusion
- E.Strengthening Governance
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.
Based on the results, we have revised part of the social value assessment in STEP 2 and changed the proposed materiality d. "Promoting Diversity and Inclusion" to "Promoting Growth, Success, and Diversity of Human Capital" (the "Promoting Diversity and Inclusion" was repositioned as one of the key issues).
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.In April 2024, we partially revised the wording of materiality and key issues as follows in order to clarify the areas of issues to be addressed from the perspective of human capital management and to promote efforts to address them.
Materiality
〔Before revision〕
Promoting Growth, Success, and Diversity of Human Capital
〔After review〕
Creating a workplace environment where diverse talent can thrive
Key Issues
〔Before revision〕
- Promotion of Value Co-Creation and Innovation
- Securing and Developing Human Capital
- Promotion of Diversity & inclusion
- Promotion of (DX) Digital Transformation
(business framework and process transformation, etc.) - Prioritization of Health and Safety
- Respect for Human Rights
〔After review〕
- Creation of value through the growth of people and the organization
- Human capital strategies linked to management strategies
- Promotion of DE&I
- Work style reforms
- DX promotion
(transformation of business structure and process) - Prioritizing safety and health
- Respect for human rights
