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Taikisha's Materiality

Taikisha believes it is important to determine, assess and verify "materiality" in terms of "material matters" at the management level that should be addressed as a matter of priority, and run the PDCA cycle for CSR activities without fail.

Review of Materiality

In consideration of changes in society that have taken place since the determination of "materiality" in June 2017, Taikisha conducted a materiality assessment afresh in view of both sustainability of society (i.e., stakeholders’ expectations) and sustainability of Taikisha (i.e., the extent of the impact on long-term growth).
This time, the top management played a central role in reviewing materiality, following discussion and confirmation of appropriateness (based on a questionnaire survey) by members of the Board of Directors.
The key focus of discussions was "shifting from CSR materiality to management materiality," and the biggest objective was to "build a business model that would enable the realization of sustained value creation" by envisioning Taikisha in its ideal form from a long-term perspective and its roadmap/direction to realize it.

Key Aspects of the Latest Review

  1. Internal viewpoint: Made members of the Board of Directors’ understanding visible
    Members of the Board of Directors’ understanding of material management issues at present were made visible based on discussions of Directors and Audit & Supervisory Board Members.
  2. Viewpoint based on external yardstick: Added economic value aspect to list of candidate material issues
    ESG factors were added to the list of candidate material issues from the viewpoint of corporate value by taking financial impact into account as well, not just ESG factors related to social responsibility.
  3. Viewpoint of the post-COVID-19 world: Factors based on a "vision of the post-COVID-19 world" were added as a long-term point of view that will be required especially due to dramatic changes.

Evolution of Materiality at Taikisha

CSR materiality

From 2017 To present
Started as materiality for seeking higher corporate value at the same time as well as fulfilling corporate social responsibility.

Materiality based on a vision of Taikisha in its ideal form from a long-term perspective

From 2020 In the present
Seek materiality in "building a business model that enables the realization of sustained value creation," review materiality.
From 2020 Into the future
Hold ongoing discussions at the management level including Directors, sort the relationship among material issues that have been determined, and consider setting key performance indicators (KPIs), etc.

Materiality Determination Process

Taikisha specified the candidate material issues by broadly taking into consideration the International Integrated Reporting Framework, the viewpoint of Socially Responsible Investment (SRI), global risks, Sustainable Development Goals (SDGs) and other new issues surrounding sustainability, in addition to various conventional frameworks and guidelines related to social responsibility from an all-encompassing viewpoint.
Taikisha quantified and visualized weighting from its clients' perspectives based on the materiality to its major clients, in addition to weighting as recognized by society in general based on external frameworks and guidelines in terms of weighting evaluation by external standards.

  • Formulation of a list of candidates (selection of issues)

  • Materiality assessment (at two levels, i.e., viewpoint of external stakeholders and viewpoint in terms of impact on business)

  • Confirmation of appropriateness and discussion

  • Determination (updating)

New Materiality Scheme

Taikisha determined eight material issues that leverage its strengths and DNA to build a business model that would enable the "realization of sustained value creation" by dividing them into: (1) items directly related to management and business strategies; and (2) items that create social value. Additionally, Taikisha sorted items that are indispensable for realizing them into (3) "management infrastructure."

Direction Sought

Build a business model that enables the "realization of sustained value creation."

Direction sought Build a business model that enables the 'realization of sustained value creation.' Items Directly Related to Management and Business Strategies Enhancement of technological competitiveness and ability to innovate Enhance technological competitiveness and the ability to innovate, which are the sources of corporate competitiveness and customer satisfaction and also serve as the driving force for creating new businesses. Initiatives for global social issues Strategically adopt such initiatives as opportunities to create new businesses such as ESG and enhance the business model. Digital innovation and productivity improvement Introduce and utilize technology as a business and as part of efforts to improve labor productivity (promotion of work style reform). Direction sought Build a business model that enables the 'realization of sustained value creation.' Items Directly Related to Management and Business Strategies Enhancement of technological competitiveness and ability to innovate Enhance technological competitiveness and the ability to innovate, which are the sources of corporate competitiveness and customer satisfaction and also serve as the driving force for creating new businesses. Initiatives for global social issues Strategically adopt such initiatives as opportunities to create new businesses such as ESG and enhance the business model. Digital innovation and productivity improvement Introduce and utilize technology as a business and as part of efforts to improve labor productivity (promotion of work style reform).
Creation of social value in each ESG domain Environment Climate change mitigation and adaptation Take a two-pronged approach: 'mitigation,' which involves taking measures to reduce and absorb greenhouse gas emissions; and 'adaptation,' which involves making preparations to prevent and alleviate the impact of climate change that is already occurring and using the new climate conditions. Initiatives to prevent pollution and reduce environmental impact Prevent air pollution, manage chemical substances, etc. Social Securing and developing human resources Secure, retain and develop capable human resources that create value (innovation) and support competitiveness. Creation of pleasant working environment Make improvements in terms of diversity, a wide range of flexible work styles, work-life balance, job satisfaction and employee satisfaction. Governance Highly effective corporate governance A mechanism of corporate governance to prevent impairment of brand value and financial losses, steadily execute strategies for fulfilling own business model and increase corporate value in a sustained manner. Creation of social value in each ESG domain Environment Climate change mitigation and adaptation Take a two-pronged approach: 'mitigation,' which involves taking measures to reduce and absorb greenhouse gas emissions; and 'adaptation,' which involves making preparations to prevent and alleviate the impact of climate change that is already occurring and using the new climate conditions. Initiatives to prevent pollution and reduce environmental impact Prevent air pollution, manage chemical substances, etc. Social Securing and developing human resources Secure, retain and develop capable human resources that create value (innovation) and support competitiveness. Creation of pleasant working environment Make improvements in terms of diversity, a wide range of flexible work styles, work-life balance, job satisfaction and employee satisfaction. Governance Highly effective corporate governance A mechanism of corporate governance to prevent impairment of brand value and financial losses, steadily execute strategies for fulfilling own business model and increase corporate value in a sustained manner.
Management infrastructure 'Management infrastructure' indispensable for realizing sustained value creation Foundation that needs to be developed in view of the sustainability of the business model. Compliance/Risk management/Quality/safety/Information security/Contributions to community Management infrastructure 'Management infrastructure' indispensable for realizing sustained value creation Foundation that needs to be developed in view of the sustainability of the business model. Compliance/Risk management/Quality/safety/Information security/Contributions to community

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