The Story of Value Creation at Daiseki

Daiseki Group’s Priority Issues andMateriality Assessment Process
The Daiseki Group aims to achieve continued sustainable growth as an environment-creating company
contributing to society through the environment. To this end, we have identiﬁed ﬁve materiality issues
and are promoting initiatives in these areas. We will promote the enhancement of our corporate value
with a medium- to long-term outlook while concurrently working on ESG perspectives.

Making the bestuse of limited
resources
Promoting thoroughunderstanding ofcompliance andobservation of laws
and regulations

The DaisekiGroup sMateriality

Creating
workplace that
individuals shine

Eliminating
industrial andenvironmental
accidents

A company
well-liked bylocalcommunities● Materiality Assessment Process
IPCC
1.5°
C Special Report

TCFD
scenario analysis

Reducing greenhousegas emissions

Environmental initiatives
Changes in external
conditions
Materiality Issues

Building a recyclingoriented society

Societal needs and expectations

Stakeholder feedback

STEP ❶
Identifying
relevant
issues

Implementing
management concepts
The Daiseki Group’s purpose
The Daiseki Group’s environmental policies
Vision 2030, the Daiseki Group’s long-term management vision

17

Preventing environmental
pollution from waste

STEP ❷

Checking risks
andopportunities

STEP ❸Group-wide call forsuggestions for“materiality phrases”toencapsulate each ofour ﬁve priority issues

STEP ❹Interviews
with investors

STEP ❺Materiality
assessment(managementmeetings, Boardof Directors)

STEP ❻
Continualreview

● Assessing the importance of key issues● Main opinions consideredHigh●Investors

Importance for stakeholders◦Diversity◦Work-life balance◦Human resourcesdevelopment◦Carbon neutrality◦Circular economy◦Environmental protection◦Relationship of trust withcustomers◦Health management◦Increasing employee
engagement◦Compliance◦Corporate governance◦Core business share up◦Develop new businesses◦Relationship of trust withlocal communities◦Cooperation with local
governments anduniversities◦Contribution to localcommunitiess◦Demonstration of each person’
individuality and abilities◦Philosophy of safety◦Nurturing employees whowork safely◦Safety training◦Equipment necessary forsafety◦Reducing our greenhouse gas emissions◦Contribution to the water cycle◦Disclosure of toxic waste emissions
information◦Strengthening employee education andlabor management◦Protecting human rights◦Introduction of a safety management
system◦Introduction of performance-linked
compensation system◦Strengthening Group company
management◦Vision 2030 target management◦Compliance●Daiseki Group officers and employees◦Realization of a circular economy society◦Promotion of countermeasures for climatechange◦Demonstration of each person’sindividuality and abilities◦Workplaces prioritizing safety whereemployees can work with peace of mind
◦Co-existence and mutual prosperity withlocal communities◦Gaining trust through compliance

LowLow

Importance for the company’s business activities

High● Each Issue’s Connection with the SDGs, Initiatives, and Performance Review
ESG Materiality
Materiality Issues

Priority Issues◦Circular economy

Making the ◦Carbon neutrality
best use of ◦Environmental protection◦Strengthening trusted relationships withlimited
resources
customers as an environment-creatingcompany

FY2023
Initiatives

Impact on
Stakeholder
Daiseki GroupInterestOperations

We obtained SBTi
certification for ourgreenhouse gas emissions
Extremely Extremely
reduction targets andhighhighworked toward thesegoals. We received a
B score from the CDP.

◦Health management (employee, family, supply chain)◦Diversity and inclusion◦Work-life balance◦Human resource development (nurturing employees towin trusts from society and customers as professionals
and to be proud of own job for families)◦Workplace and company you can be proud of for yourfamily (employees and company make safe workplacethat is worth working for without any frauds)

We promoted humancapital management byformulating a human
Extremely
resources development
Very highhighpolicy and internalenvironment
improvement policy.

◦Philosophy to put safety as the top priority

We implemented thoroughaccident-prevention
measures, including
investigations into the root
causes of accidents andsafety patrols of ourcustomers’premises.

Very highExtremely
highresidents in surrounding area
A company
well-liked by ◦Cooperation with local governments anduniversities in surrounding area
localcommunities ◦Company that roots in and contribute toWe furthered our cooperation
with local governments anduniversities by participatingin local government eventsand implementing practicaltraining in cooperation withuniversities.

HighHigh

Promoting◦Compliance of related laws such as thethoroughWaste Management and Public Cleansing
understanding
Actof compliance◦Employee trainings by compliance study
and observation
sessionsof laws and◦Strengthening
corporate governanceregulations

We worked to increase
employees’knowledge
and awareness of laws
and regulations throughcompliance study sessions
attended monthly by allemployees.

Very highExtremelyhighCreating
workplacethat
individuals
shine

Eliminating ◦Nurturing employees who work safely as
professionals
industrial andenvironmental ◦Danger prediction training, risk assessment
accidents◦Update and expansion of necessary
equipment◦Building relationships and trusts withthe local area through environment

Overarching Aims

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