Processes to Identify the Risks, Opportunities, and Materiality

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- to longterm management strategies, we have identified materiality as the material issues to preferentially address based on suchrisks and opportunities as the following. In identifying such themes, we made decisions by the Board’s resolutions throughdeliberations in various management meetings. We also link materiality to preferentially address the policies in the medium-termmanagement plan and the focused measures and proceed with the initiatives after setting the goals.

Risks and Opportunities

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

Materiality

Request for decarbonization
Climate change and global warming
Loss of biodiversity

Difficulty in procuring woody resources

Forest conservation and regulations over illegal logging

Needs for industrial materials using sustainable
wood resources

Building a Resource-Recycling andRecycle-Oriented Society

Initiatives for Materiality

Creating Shared Value (CSV) byDaiken BusinessContribution to carbon neutrality

Daiken Group's Value Creation

Social Issues and Needs(External environment and trends)

Analysis and organization of external environments

01 by utilizing wood resources
P.23-24

Depletion of/scramble for resources

The Japanese government’s growth strategy
Green Transformation (GX)

Digital Transformation (DX)

Promotion of the use of

02 domestic timber

Regional revitalization and compact cities

P.25-26

Formation of a good housing stock

Effective utilization of unused

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

03 resources
User Needs in the New Normal Era

P.26

Creating a safe, secure, healthy,

04 and comfortable space

Disruption of business activities and supply chains
Threat of infectious diseases

P.27-28

Lack of human resources

Foundation Supporting Value Creation

Construction of a housing circulation system toward adecarbonized society

Needs for spaces where the elderly and children
can spend time with peace of mind

Strategy for Value Creation

Needs for shifting to alternative resources

Threat of natural disasters
Expansion of the opportunities where diverse
human resources exercise their abilities
Low birthrate and longevity in Japan

Depopulation
A decrease in productive-age population

Needs for the development of products andtechniques to supplement the lack of skilledconstruction workers
A decrease in the number of domestic new
housing starts

Acceleration of women’s participation in society

Continuous expansion of demand for thehigh-quality living environment in the overseas
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 andopportunities and increases corporate value

P.28

DataA decrease in population and a decrease inthe number of households

Development of labor saving

05 type products and techniques
Diverse Human Resource Foundation byImproving Comfort in Working and Job
Satisfaction
Environmental Strategy
P.47-50

Human Resource Strategies
P.51-52*Details of the risks associated with businesses are described in the securities report.

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DAIKEN GROUP REPORT 2022

DAIKEN GROUP REPORT 2022

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