Materiality
-Eight key issues identified by PERSOL-
At the PERSOL Group, we believe that we must identify materiality (key issues) that is essential for sustainable growth, incorporate these issues into our management policies and plans, and act accordingly to address sustainability-related risks and opportunities which are likely to impact our management policies, plans and other activities. Based on this awareness, we selected eight key sustainability issues in FY2022.
Our materiality process
For a company to solve social issues and continue to create value over the medium and long terms, it is essential that the company integrate elements of sustainability (including ESG) into its corporate management. At the PERSOL Group, we have discussed the social issues we should solve through our work to achieve our Group Vision and identified material issues in time with the formulation of our new Mid-term Management Plan (FY2023 to FY2025) from the perspectives of both “Solving social issues through our business” and “Foundation for achieving sustainable growth”.
We implemented a three-step process to identify material topics. In step 1, we identified the themes of candidate issues based on global standards, such as the GRI standards, the SDGs and the SASB standards, and on the evaluation items of MSCI, other ESG rating agencies and other organizations. As a result, we listed approx. 300 items and approx. 60 issues. In step 2, we interviewed the management of the PERSOL Group and external experts and evaluated the issues to be considered from the perspectives of both risk and opportunity from the viewpoints of our stakeholders and the Group, narrowing down the list to 26 issues. In step 3, the CEO and senior executives repeatedly discussed the issues based on the evaluations in step 2, and eight material issues were selected through the deliberations of the Board of Directors.
Identifying issues and topics
- Identifying the themes of candidate issues based on global goals and standards,1 ESG evaluations,2 the external environment and other criteria
- As a result, we created a list of approx. 300 items and approx. 60 issues.
*1 GRI, SDGs, SASB, etc.
*2 MSCI, etc.
Assessing each issues importance
- Analyzing key sustainable issues from the perspectives of stakeholders (Organizing major stakeholders' expectations and requests for the PERSOL Group and the industry)
- Analyzing key sustainable issues from the perspective of the PERSOL Group (Identifying and weighting themes which could be opportunities or risks for the Group's businesses)
- Plotted 26 sustainability issues that are material to both our business and our stakeholders on a materiality matrix.
Setting out our material sustainability issues
- In Step 3, based on the 26 issues identified through Step 2, CEO and executive officers had additional discussions and 8 material issues were underpinned through the Board meeting.
Monitoring efforts to address material issues
We have set initiatives, KPIs, and targets for the solving of each material issue. In FY2023, we will begin to monitor the progress in the achievement of the targets. Progress in the achievement of the targets and initiatives is reported at the meetings of the Sustainability Committee which are held twice a year. The content of the Sustainability Committee's discussions is reported to HMC and the Board of Directors, which provide feedback, and issues are discussed again as necessary.
