In 2021, the KPP Group identified its materiality and has since been actively working to address them. For the fiscal year ending March 2026, following discussions at the Board of Directors, we revised certain aspects of our materiality. Specifically, the previous focus on “Diversity & Inclusion” was elevated to the broader concept of “Promotion of Human Capital Management,” enabling a more comprehensive approach to emerging issues.
Selection Process
The identification of material issues was carried out with reference to the disclosure standards of the Global Reporting Initiative (GRI) and the International Sustainability Standards Board (ISSB), supported by external environment analysis and opinions, followed by thorough deliberations within the ESG Committee and the Board of Directors.
STEP1 Selection Process
Taking into account domestic and international social issues, international guidelines and standards, and evaluation items from ESG assessment organizations, as well as examining our own strengths, weaknesses, opportunities, and threats, we identified strategic issues to be addressed as we proceed with our corporate activities.
STEP2 Importance Evaluation
These issues were mapped out by quantitatively selecting issues that were considered more important to each stakeholder and the Company through interviews with internal and external stakeholders, led by the project members.
STEP3 Validity Evaluation
The mapped issues were grouped based on their similarities and thoroughly discussed among project members, followed by approval from the Board of Directors. These outcomes have been incorporated into our management strategy, with specific action targets set and a PDCA cycle implemented to drive continuous improvement.
Materiality
From the fiscal year ending March 2026, we have introduced sub-material issues under each materiality category to clarify the specific challenges to be addressed across the Group. For each sub-materiality, we have established key KPIs and assigned responsible personnel, and are working to build both quantitative and qualitative narratives aimed at enhancing corporate value. These KPIs are referenced against the disclosure standards of GRI and ISSB to ensure transparency. Progress is monitored through a PDCA cycle under the governance framework led by the ESG Committee, with regular reporting to the Board of Directors and disclosure to stakeholders to drive continuous improvement.
