Materiality

To achieve both sustainable business growth and the resolution of social issues, even amid an external environment

Our Sustainability Activity Visionthat is dramatically changing, the Hirata Group identified materiality (important issues) in fiscal 2021.
Materiality is organized into four themes and 10 items. Going forward, the Sustainability Promotion Committee
will take the lead in setting KPIs and targets and then implement initiatives.

2050

Based on changes in the business environment and social trends, the Company will periodically review its materiality.

Materiality Identification Process2030

In addition to discussions at management meetingsmateriality issues into the Medium-Term Management

and Board of Directors’ meetings, we received opinions

Plan, we will work to instill awareness of them throughout

and evaluations from external experts when identifying

the Company by clarifying our basic sustainability policy

the important issues. In addition to incorporating theseand sustainability activity vision.

STEP

1

Issue identiﬁcation and management
Having referred to international guidelines on sustainability and survey results from ESG rating agencies, wehave identiﬁed social issues that could conceivably have a signiﬁcant impact on the Group’s management andbusiness. We have also organized into groups those issues that are candidates for materiality in light of theCompany’s future direction, such as its business characteristics, management plans, and targets.

2024
To formulate a roadmap for sustainability
activities during the course of the Medium-Term
Management Plan and promote internal
understanding.

Achievement of carbon neutrality across allbusinesses, including their supply chains.
Making everyone involved in the Hirata
Group content by becoming a global leader
in sustainability activities.

To instill engagement in sustainability
activities throughout the Group, whilebalancing business growth with social issues.
Having acquired global external assessmentsof our Group’s initiatives, to meet stakeholderdemanded standards to a high level.

Identified Materiality (Important Issues)

2

Level of importance assessments bysenior management and external experts
From among the extracted and organized issues, we assessed
levels of importance to narrow down the important items interms of the medium- to long-term management of the Group.
For the assessments, we conducted a questionnaire survey ofinternal and external senior management as well as external
experts. At that time, we asked them to assess the Company
along two axes: Level of importance in terms of corporate value(horizontal axis) and level of impact on society (vertical axis).

Materiality Matrix

Four Themes

Level of impact on society

STEP

Responseto climatechangeLevel of importance in terms of corporate value

Cooperation was gratefully received from following external experts
Tetsuro Ii
President and Representative Director,
Chief Investment Officer
Commons Asset Management, Inc.
Tsukasa Kanai
Executive Fellow andChief Sustainability Officer,
Sustainability Promotion Department,
Corporate Planning Department
Sumitomo Mitsui Trust Bank, LimitedSTEP316Yasuyuki Kamata
President
Kamakura Investment Management Co., Ltd.
Koji Shimada
Professor, Graduate School of Economics
Ritsumeikan University
Takahiro Suzuki
Associate Professor
Department of Business Law
Nihon University

Keisuke Takegahara
Executive Fellow and Deputy Director,
Research Institute of Capital Formation;
General Manager/Head of Research,Center on Financial Economics
Development Bank of Japan Inc.
Kyoko Narita
Senior Manager
CDP Worldwide Japan

Bringing out
the best inevery personMegumu Murakami
Senior Specialist, Emerging Strategy Center
The Japan Research Institute, LimitedApproval and Inclusion in Medium-Term Management Plan
Following the assessments, the materiality proposal was deliberated at multiple management meetings andBoard of Directors’ meetings and ﬁnally approved at the Board of Directors’ meeting held in January 2022.
Having adopted “strengthening of ESG management initiatives” as a basic policy under the new Medium-Term
Management Plan, which was announced in May 2022, we will set targets and work on producing visual formsof the initiatives throughout the duration of the Plan.

Hirata Integrated Report 2022

Building of asustainable
society

Strengtheningof ourmanagementfoundation

Materiality (Important Issues)

Main Initiative Themes

Reduction of environmental
impact by our company and in
the supply chain

Reduction of environmental impact
Reducing emissions of GHGs
Promotion of resource recycling society

Contribution to carbon neutrality
through products and services

Expansion of carbon-neutral market

Creation of new customer
needs in accordance with socialchangesCreation of new customer needs inaccordance with social changes
Harnessing of innovation

Response to progress ofdigitalizationResponse to progress of digitalization
Development of infrastructure toward
smart society

Securing and training humanresources

Securing and training human resources

Creating diverse, safe andsecure workplaces

Diversity & Inclusion
Creating safe, secure, and rewarding
workplaces

Improvement of product safety
and quality

Improvement of product safety and quality

Supply chain management

Supply chain management
Respect for human rights

Enhancement of corporate
governance

Stakeholder engagement
Enhancement of corporate governanceRisk management

Respect for compliance with fair tradepractices
Risk management
Maintaining soundness of financial capitalContributing to the spread ofsustainable social infrastructure
through Hirata’s business

Relevant
SDGs

Aiming to remain a global
company with diversity of humanresources and the ability torespond to change

Relevant
SDGs

Hirata Integrated Report 2022

17