Risks, Opportunities and Materiality
In addition to the risks and opportunities that are likely to have a significant impact on the Daiken Group’s medium- tolong-term management strategies, we have identified materiality as the material issues to preferentially address based onsuch risks and opportunities as the following. In identifying such themes, we made decisions by the Board’s resolutions
through deliberations in various management meetings. We also link materiality to preferentially address the policies in themedium-term management plan and the focused measures and proceed with the initiatives after setting the goals.

Social issues and needs(External environment and trends)

Risks and opportunities

Request for decarbonization
Climate change and global warming
Loss of biodiversity
Forest conservation and regulations over illegal logging

Difficulty in procuring woody resources
Needs for industrial materials using sustainable
wood resources
Needs for shifting to alternative resources

Depletion of/scramble for resources

The Japanese government’s growth strategy

Needs for spaces where the elderly andchildren can spend time with peace of mind
Regional revitalization and compact cities

Green Transformation (GX)
Construction of a housing circulation system toward adecarbonized society
Digital Transformation (DX)Formation of a good housing stock
Resilient urban development andredevelopment projects

National land toughening and improvement of the nextgeneration infrastructure

Recovery in inbound demand

Realization of a tourism-oriented country

New normal as a result of the COVID-19 crisis

Threat of infectious diseases

Disruption of business activities
and supply chains

Threat of natural disasters

Low birthrate and longevity in JapanA decrease in population and a decrease in the numberof households
DepopulationA decrease in productive-age population
Acceleration of women’s participation in society

Lack of human resources
Expansion of the opportunities where diverse
human resources exercise their abilities
Needs for the development of products and techniques
to supplement the lack of skilled construction workers
A decrease in the number ofdomestic new housing starts
Continuous expansion of demand for the highquality living environment in the global growing
markets

A worldwide increase in population

Surging resource/energy prices

Change in the security environment

Growing geopolitical risk

Request for sustainable management

Management ability that responds to the risks
and opportunities and increases corporate value*Details of the risks associated with businesses are described in the securities report.

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DAIKEN GROUP REPORT 2023

Processes to identify the risks, opportunities, and materiality
Analysis and organization of external environments
Extraction and organization of risks and opportunities that are likely to have a significant impact on the medium- to long-term management strategies
Evaluation and prioritization based on the degree of importance in terms of management (Our management strategies’ and stakeholders’ expectations)
Identify materiality as the material issues to preferentially address (Deliberations in various management meetings ⇒ The Board)
Formulation and implementation of the specific initiatives for materiality

Daiken Group’s Value Creation

Progress management and a periodic review (Various management meetings ⇒ The Board)

Materiality

Realization of a Resource-Recycling
and Recycle-Oriented Society

Initiatives for materiality

Creating Shared Value (CSV)
by Daiken Businesses

01 by utilizing wood resources

Contribution to carbon neutrality
P.27-28

02 timber

Promotion the use of domestic
Strategy for Value Creation

P.29

03 resources

Effective utilization of unused

User Needs in the New Normal Era

P.30

04 and comfortable space

Creating a safe, secure, healthy,
P.30-32

05 products and techniques

Development of labor saving type
P.32

DataDiverse Human Resource Foundation
by Improving Comfort in Working
and Job Satisfaction
Environmental Strategy
P.51-54

Human Resource Strategies
P.55-58

DAIKEN GROUP REPORT 2023

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