Materiality of Toyo Seikan Group
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We identify top priority issues as the Materiality of Toyo Seikan Group in order to contribute to the creation of a sustainable society.
In 2021, we formulated the Long-Term Management Vision 2050 "The Future, Wrapped for All" and the Mid-Term Management Plan 2025, setting up mid- to long-term strategies and goals for the Group. In light of these strategies and goals, we have reviewed and refreshed the materiality with the six key issues as described in the chart. Going forward, we will work on setting key performance indicators (KPIs) and key goal indicators (KGIs) that are relevant to our materiality.
Materiality of Toyo Seikan Group
- *This chart is scrolled
| Materiality | Major initiatives |
Risks and Opportunities |
|---|---|---|
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Developing and offering products and services that support various lifestyles Aiming to achieve one of the pillars of the Long-Term Management Vision 2050: “Responding to diversity,” we will provide products and services that focus on diversified lifestyles and needs of consumers and thereby contribute to social issues. |
Exploring business opportunities to achieve safety, security and fulfillment in daily lives
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Risks
Opportunities
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Developing and offering products and services that are environmentally sound Aiming to achieve one of the pillars of the Long-Term Management Vision 2050: “Creating a sustainable society,” we will provide products and services that support environmental protection and thereby contribute to social issues. |
Building a platform for the entire value chain to reduce environmental impact
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Risks Loss of trust from stakeholders and competitiveness against rivals due to delays in developing and offering environmentally sound products and services Opportunities
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Contributing to environmental protection We will implement various initiatives to reduce environmental impact for the realization of a zero-carbon, zero-waste society that coexists with nature, which is the goal we set in our Environmental Vision and Eco Action Plan 2030. |
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Risks Less competitive advantage due to delays in addressing environmental issues, such as GHG emissions reduction and resource recycling Opportunities
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Respect for human rights We will ensure that there are no discrimination, forced labor, harassment or abuse or any other human rights violations in the Group as well as in the entire supply chain and will prevent such violations. |
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Risks Lower reputation and sales resulting from disputes and protests on human rights issues Opportunities Ensuring stable procurement by respecting human rights across the supply chain |
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Respect for employees We will build a rewarding work environment that cares about the health and safety of employees and their diversity and will secure and develop talent who will continuously take on challenges for new value creation, thereby aiming to maintain and boost our competitiveness. |
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Risks
Opportunities
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Ensuring thorough compliance We will ensure compliance with laws and regulations, corporate ethics, and norms and take preventive measures against corruption and anti-competitive behavior. |
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Risks Underperformance of operations, loss of social trust, and damage to corporate value due to noncompliance activities Opportunities
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Materiality Identification Process
We have identified materiality using the following process.
Identification
of Issues
- The Toyo Seikan Group drafted a long list of issues requiring attention based on the guidelines of the Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB) as well as the Mid-Term Management Plan 2025 and industry issues.
- A list of 19 topics was drafted by consolidating and integrating similar issues.
Prioritization
- The importance of each issue to the Toyo Seikan Group was carefully examined, taking into consideration consistency with our management philosophy and the Group's Code of Conduct and Guidelines of Behavior, as well as evaluations of each issue at workshops held with officers from operating companies.
- The importance of each issue to stakeholders was carefully examined, based on a range of information including the key issues present in the packaging industry, key ESG topics institutional investors pursue with companies, and more.
- Candidates for materiality for the Toyo Seikan Group were identified.
Identification
of Materiality
- Outside experts reviewed and validated the identification process and materiality candidates generated.
- Materiality for the Toyo Seikan Group is identified through resolution processes at the Board of Directors.
Toyo Seikan Group's Initiatives to Address the Material Issues in Relation to the SDGs
We have been providing a variety of products and services that contribute to the UN Sustainable Development Goals and engaged in sustainability initiatives.
To advance these efforts, we have organized major targets under each of the key ESG themes, identified material issues as our Materiality, and verified the relationship of our initiatives to address them with the 17 goals and 169 targets of the SDGs.
Key Comments in Opinion Exchanges with Outside Experts
Toshio Arima
Chairman of the Board Global Compact Network Japan (GCNJ)
Graduated from the International Christian University College of Liberal Arts in 1967. Joined Fuji Xerox Co., Ltd. later the same year. He became the General Manager of General Corporate Planning in 1988, CEO of U.S.-based Xerox International Partners in 1996, President and Representative Director of Fuji Xerox in 2002, and Executive Corporate Advisor in 2008, retiring in 2012. During his tenure as president, amid his work in advancing management reform he also devoted his energies to CSR management, including pitching the idea of “corporate quality.” He was appointed as GCNJ's Chairman of the Board in October 2011. He also served as a member of the UN Global Compact (UNGC) Board from July 2007 until June 2018, and continues to work towards building a sustainable society to this day.
Your company has adopted an adequate and appropriate identification process for accurately determining materiality based on the guidelines of the GRI and SASB. Used packaging containers turn into enormous amounts of waste, causing issues for the marine environment. Your company's Long-Term Management Vision 2050, “The Future, Wrapped for All,” signals a business model transformation from being a packaging manufacturer to a “daily living platform.” Here, creating a circular economy for containers has not only social significance but also potential for new businesses, and I believe this should occupy a prominent position.
Although it has been mentioned before, I think this should be given more attention. Furthermore, the SDG Compass, a corporate action guideline for the SDGs jointly issued by the UNGC, GRI, and World Business Council for Sustainable Development (WBCSD), recommends an “outside-in” approach in which companies around the world step outside their own domains to address a wide range of global and social issues. In the sense that you will be able to maximally leverage your company's capabilities and explore new business opportunities, I would like to see you expand your scope further as you identify materiality going forward.
Keisuke Takegahara
Executive Fellow, Research Institute of Capital Formation, Development Bank of Japan Inc.
Graduated from Hitotsubashi University Faculty of Law in 1989. Joined the Japan Development Bank (now the Development Bank of Japan Inc. [DBJ]) later the same year. After appointments as Chief Representative for the Representative Office in Frankfurt, general manager of the Environmental Initiatives & Corporate Social Responsibility-Support Department, Head of the Economic & Industrial Research Department, and Executive Officer and Deputy Head of the Chief Research Office, he was appointed to his current position in 2021. He has been working for many years in the fields of environmental finance planning, including the creation of the DBJ’s environmental ratings-based financing program. He has held many public posts, including as a member of the Ministry of Economy, Trade and Industry’s Study Group on Disclosure Policies for Non-financial Information and the Ministry of Education, Culture, Sports, Science and Technology’s Study Group on Climate Change Research as well as a temporary member of the Ministry of the Environment’s Central Environmental Council. He has co-authored works including Renewable Energy and New Growth Strategy (Energy Forum Inc., 2015), and How to Tackle Climate Change Risk (Kinzai Institute for Financial Affairs, Inc., 2014), and others.
The materiality was selected as issues for addressing in the Mid-Term Management Plan 2025, itself a backcast plan from the Long-Term Management Vision 2050, “The Future, Wrapped for All,” which was formulated through extensive discussions among employees at all group companies. We can say this will play the initial steering role toward the goals of your long-term vision via the milestones of the Mid- to Long-Term Management Goals 2030, set along a solid timeline. There is a clear choice of three types of items: “offensive” areas targeting the Group’s goals in the long-term vision, like “developing and offering products and services that support various lifestyles” and “developing and offering products and services that are environmentally sound,” then “defensive” areas where negative impacts should be avoided in relation to achieving the former, like the environment and human rights, and then the fundamental elements like employees (human capital) and compliance. These processes have also been conducted with great care in a way that analyzes internal and external issues in detail, with deep involvement from management. As some of these concepts are highly abstract, my hope is that you will take further efforts in the selection of key performance indicators and instilling these with group employees in order to convince readers of the uniqueness of your company behind these, including the advanced level of your identification processes.