azbil Group’s materiality
In August 2022, the azbil Group, which has set long-term goals for FY2030, identified materiality across five areas and 10 material issues for clearer implementation and promotion of sustainability management.
The Group regards materiality as a sustainability issue that affects enterprise value within society as a whole, and will continue to work diligently on this issue over the long term.
| Environment |
Climate change Resource recycling Business expansion to meet society’s needs and contribute to a sustainable global environment |
|---|---|
| Innovation | Innovation Expanding our automation business and achieving a safe and comfortable society |
| Society | Supply chain Contribution to local communities Increasing enterprise value, coexisting with stakeholders, and Invigorating local communities |
| Human resources | Human rights, safety, and health Earning and employee development Promoting health and well-being management, increasing enterprise value, and achieving a harmonious society in which human rights and other rights are protected |
| Governance | Product safety and quality Corporate governance Compliance Enhancing trust in and enterprise value of the corporate Group and achieving a fair and happy society |
Materiality identification process
The Group’s materiality identification process is divided into three major steps. First, in STEP 1, we comprehensively select social issues to be considered based on guidelines such as the GRI, and in STEP 2, we review our long-term goals and medium-term plan as “opportunities” and the Group’s major risks as “risks.” Through each consideration process, we prioritize the issues from the perspective of whether or not they can contribute “in series” to a sustainable society based on the Group’s philosophy and guiding principles. In STEP 3, we confirm and identify the appropriateness through dialogue with investors and stakeholders and discussions at Board of Directors meetings.
STEP1 Understanding and identifying issues
Comprehensively consider various guidelines (GRI Standards, SASB, etc.) as well as evaluation items from ESG research institutions (FTSE, etc.) to identify social issues for consideration
STEP2 Prioritizing issues
Verify the prioritization of issues in the process of reviewing opportunities (long-term goals and medium-term plan) and risks (Identification of Group’s annual major risks)
STEP3 Confirming appropriateness
Confirm the appropriateness through dialogues with investors and stakeholders and discussions at the execution and supervisory levels of management
Double materiality
The azbil Group follows the double materiality approach of the Corporate Sustainability Reporting Directive (CSRD) and evaluates the Group’s business activities in consideration of their impact on the environment and society over the long term. The materiality across 5 areas and 10 material issues identified are management issues that reflect the expectations of society as a whole and an extensive range of stakeholders, and at the same time are the Group’s activities that have a significant impact on the environment and society. Among these issues are those that we promote as our main business, those that we address in our overall corporate activities, and those that we must fulfill as a member of society in terms of our fundamental obligations and corporate governance. These specific targets and KPIs are explained on pp. 21-22. Aiming to achieve a sustainable society as stated in the Group’s philosophy and guiding principles, the azbil Group will strive to enhance its enterprise value by sincerely tackling the issues set forth in the materiality, and continue to be of value to the world at all times.
Materiality and Essential Goals of azbil Group for SDGs
The azbil Group has established materiality as priority issues to be tackled over the long term in order to contribute “in series” to a sustainable society. In order to achieve our materiality targets, the Group has formulated goals in the four areas of the Sustainable Development Goals (SDGs) as the “essential goals of the azbil Group for the SDGs,” and places the plan on a management cycle that includes formulation, implementation, progress management, reporting to the Board of Directors, supervision and direction. The areas that we address as a business are Environment and Energy and New Automation, and the areas that we address in our general corporate activities are Supply Chain and Social Responsibility and Health and Well-being Management, An Organization That Never Stops Learning. We have positioned these as important guideposts of our sustainability policy and are promoting a variety of activities.
Click here for more information about Essential Goals of azbil Group for SDGs.
On the other hand, with respect to product safety and quality and compliance, which are fundamental obligations that a company must fulfill in order to exist in society, the azbil Group CSR Promotion Committee is working to maintain and improve these areas through risk management and by formulating and checking the progress of CSR activity plans set by each department. Also, with regard to corporate governance, in 2022 the company transitioned to a three-committee Board structure, and is working to ensure appropriate supervision function and effectiveness of the Board of Directors under a system of a Board of Directors with a majority of outside directors and three statutory committees.
Click here for more information about “Essential Goals of azbil Group for SDGs” “ FY2022 results, initiatives, and topics.”