The Takasago Group conducts assesses the materiality of items, taking external opinions into consideration, and reviews its material issues every year. In our materiality matrix, the Y-axis represents “importance to stakeholders.” Issues
are identified based on global sustainability indexes and standards, such as the Global Reporting Initiative (GRI), the Dow Jones Sustainability Index (DJSI), and the Sustainability Accounting Standards Board (SASB) Standards. Identified issues are discussed and elucidated by the sustainability team, considering the perspectives
of diverse stakeholders. The X-axis represents “influence on the group’s business success.” The team also discusses this aspect for each issue and plots them on the materiality matrix. The issues are then brought to the corporate officers and the Board of Directors for further discussion and decision-making. Through these actions, we address global issues and fulfill our corporate responsibilities as a member of society. This also helps increase the corporate value of the Group over the long term. The content and scope of this report are determined based on the following process.

Changes in this reporting period

Compared with the previously defined materiality, we have added 3 items, Digitalization, Diversity and Inclusion, and Contribution of Well-being through kaori to our Materiality for 2021-2022.

Digitalization

The Group understands that the following are important for the improvement of work efficiency: global integration of ERP systems and satellite systems, use of AI, introduction of IoT, and paperless workflows. It is also necessary to strengthen IT security as the foundation for the Group’s activities.

Diversity and Inclusion

As stated in Vision 2040, respect for diversity and diverse values is important.

Contribution of Well-being through kaori

To include Takasago’s uniqueness in our material items, we have added Contribution of Well-being through kaori. Our business of “Kaori and its surrounding related technologies” contributes to people’s physical and mental health, and to society.

Process for Defining Materiality

Materiality 2021-2022