︱Sanki Engineering’s Future Vision and Value Creation ︱Sanki Engineering Group Materiality
The Sanki Engineering Group identified its five key issues of materiality in February 2022, based on an assessmentof issues selected from a broad perspective in terms of “improving environmental and social value” and “improvingcorporate value.” By strategically allocating management resources to measures corresponding to the five issues, we
aim to realize a resilient management foundation and sustainable society.

Improveenvironmental and social valueHigh

Our Contributions to Sustainability

Contribute toa carbon-free society
Use engineering tobuild a comfortableenvironment

Stable earnings
and stronger
business basePursuit of happinessfor colleagues
Createnew social value

Materiality

High

https://www.sanki.co.jp/en/csr/materiality/

Improve corporate value

Initiatives

Contribute to acarbon-free society

We will contribute to realizing carbon neutrality by applying the energy
conservation and energy creation technologies we have cultivated to diverse
fields in facilities construction, and plants and machinery systems.
• Promote decarbonization• Promote the renewable energy power generation business• Expand the decarbonization-related market

Pursuit of happinessfor colleagues

We will aim to achieve sustainable growth by creating an environment in which
our human resources, our invaluable assets and fellow workers, can pursue
happiness through their work.
• Improve human resource development and technology• Promote work style reforms• Respect human rights• Promote diversity

Use engineering tobuild a comfortableenvironment

We will contribute to constructing a diverse array of comfortable environmentsthat support society by developing comprehensive engineering capabilities
that integrate our component technologies across the Group.
• Build strong social infrastructure• Diversify the water treatment business

Create new socialvalue

We will rise to the challenge of creating new social value by mobilizing all ourtechnologies and knowledge in a continuous effort to take the initiative inmeeting the changing needs of society.
• Promote activities that contribute to society• Expand the automation and labor-saving market• Expand consulting services

Stable earnings
and stronger
business baseWe will strive to build a resilient and flexible management base that generates
stable earnings to remain a company that meets the needs of society andcontributes to its sound development for years to come.
• Strengthen the governance system• Increase productivity• Enforce thorough compliance• Promote DX• Promote occupational safety and health • Secure stable long-term business• Improve quality• Provide returns to stakeholders

Relevant SDGs

Sanki Engineering Group Materiality

Materiality (Key Issues)

Materiality Identification Process, Advancement, and Review
STEP 1
Identify issues

STEP 2
Prioritize andvalidate

STEP 3
Final review andapproval

Evaluate business activities and their impact based on the following considerations, and identify 34 issues◦Value chain status, risks and opportunities, long-term vision, and strategy of the Group’s business activities◦International guidelines, external conditions encompassing economic, social, and environmental factors,
and social demands◦Evaluate and prioritize the issues identified on the two axes of improving corporate value and improving
environmental and social value and designate them as the five material issues◦Examine whether issues important to the Group have been addressed and whether stakeholder
expectations have been reflected, then finalize◦Confirmation and review by each department◦Review and approval by the Sustainability Committee◦Deliberation and decision by the Board of Directors

Guidelines and other references cited in STEP 1(In-house) Long-term vision, business strategy, management plan, exchange of opinions with officers and departments, in-house surveys(External) ISO 26000, SDGs, GRI standards, SASB standards, examination and evaluation of ESG (DJSI, etc.), integrated report survey, opinions and advice
from outside experts and advisers, The Global Risk Report

Advancement◦Incorporated materiality into the Medium-Term Management Plan and set KGI and KPI targets◦Held a progress review by the Sustainability Committee and submitted a report to the Board of Directors◦Conducted a survey on materiality (key issues)- Survey was conducted in April 2023 for all Group employees to disseminate understanding of materiality and gather feedback- Results were published internally and incorporated into sustainability measures

Review◦Conducted a review to confirm the necessity of upgrading our materiality- Progress in activities, revisions* to the GRI Standards 2021, revisions to regulations such as Japan’s Cabinet Office
Ordinance on Disclosure of Corporate Affairs, etc., and global sustainability trends*Particularly those areas in which an organization has the most significant impact on people (including economic, environmental,and human rights)

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Sanki Engineering’s Future Vision and Value Creation

Materiality Identified

New Measures for Phase 3

P. 44

Sanki Engineering Group Value Chain

Stakeholder Engagement

Sanki’s Carbon Neutral Declaration
The Sanki Engineering Group is making serious efforts to address the climatechange crisis and aims to achieve carbon neutrality for the Group’s own
GHG emissions (Scope 1 and 2) by 2030 and for GHG emissions including
the supply chain (Scope 1, 2, and 3) by 2050.

Initiatives for energy conservation and energy creation aimed at decarbonization are also directly linked to the Sanki EngineeringGroup’s core business as a total engineering company. Accordingly, we have positioned “Contributing to a DecarbonizedSociety” as a top priority among the material issues identified. We have established interim and long-term targets to achievecarbon neutrality by 2050.

https://www.sanki.co.jp/en/csr/governance/engagement/

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SANKI REPORT 2023

SANKI REPORT 2023

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