Materiality (Material Issues)
The identification of materiality in the Group is deliberated and decided by the Board of Directors based on political, economic, and technological trends, as well as an understanding of social issues and the internal environment, as well as an analysis of opportunities and risks for sustainable growth. By incorporating and promoting these themes in our medium-term activity plan, we aim to enhance corporate value and contribute to a sustainable future.
Materiality Map
Identification Process
Targets and results regarding materiality
Mid-Term Business Plan 2027 (FY2025 to 2027)
| Materiality | Themes and Initiatives | KPI | FY2027 Targets | ||
|---|---|---|---|---|---|
| Business | Adapting to changes in the economic environment and ensuring sustainable business quality | Business transformation scenario promotion | Business transformation scenario promotion | Promote quality in the Mobility Segment and complete transition to the Global Regional Headquarters system | Consolidated |
| Create added value for products | Enhance product value through strategic investment in production competitiveness, sensors, software, etc. | Pro t impact: ¥20.0 billion | Consolidated | ||
| Co-creation with strategic partners | Promote business creation through strategic customers/partners, academia-government-industry collaboration, and joint development | (Not disclosed) | Consolidated | ||
| E | Climate change adaptation and mitigation | Reduce GHG emissions | Scope 1 and 2 GHG emissions | Down 70% compared with FY2021 | Consolidated |
| Scope 3 GHG emissions | Down 25% by FY2030 | Consolidated | |||
| Renewable energy use rate | 85% | Consolidated | |||
| Expand eco-friendly products | Percentage of eco-friendly products among new products | To be decided during FY2025 | Consolidated | ||
| Promoting resource circulation | Resource recycling | Waste recycling rate | 97% (ratio of waste not sent to landfill) |
Consolidated | |
| Enhancing chemical substance management to reduce environmental impact | Strengthen control of chemical substances in products | Number of serious incidents involving regulated substances in products | 0 cases | Consolidated | |
| Strengthen governance of workplace-related chemical substances | Number of serious incidents caused by chemical substances at business sites | 0 cases | Consolidated | ||
| S | Developing human resources for value creation and fostering a culture that empowers individuals |
Promote the Corporate Vision and instill Alps Alpine’s values
Implement effective approaches to individual empowerment and employee engagement
Utilize global human resources
|
Employee Engagement Survey score | Increase compared with previous year | Non-consolidated |
| Human resource development expenses | Increase compared with previous year | Non-consolidated | |||
| Improving the work environment and occupational health and safety | Create a safe work environment | Number of serious occupational accidents | 0 cases | Consolidated | |
| Promote physical and mental health | Workplace improvement implementation rate for high-stress environments | 100% | Non-consolidated | ||
| Ensure health, safety, and proper working conditions in the supply chain | Number of suppliers rated C in CSR assessments | 0 cases | ー | ||
| Respect for human rights | Reduce management risks in the area of social responsibility (identify and mitigate human rights risks within the Company) | Number of serious human rights incidents | 0 cases | Consolidated | |
| Eliminate human rights issues in the supply chain (survey on mineral sourcing) | Percentage of certified smelters used (CMRT)*1 | 94.0% | ー | ||
| Further improvement in product quality and safety | Conduct basic quality assurance training | Participation rate in basic quality assurance training | 100% | Non-consolidated | |
| Promote functional safety and product cybersecurity | Number of safety requirement violations (ISO26262) | 0 cases | Non-consolidated | ||
| Number of cybersecurity requirement violations under the responsibility of the Company (ISO/SAE21434) | 0 cases | Non-consolidated | |||
| G | Further reforms in corporate governance | Enhance the effectiveness of Management Meetings | Board of Directors effectiveness evaluation score | Improvement compared with previous year | Consolidated |
| Strengthen governance of the ALAP Group | Development of internal regulations and rule frameworks | Development complete | Consolidated | ||
| Optimizing and strengthening the supply chain | Improve speed and robustness of emergency response | BCP drills (internal) | Conducted at least once per year | Consolidated | |
| Strengthen risk management for production sites and logistics | Risk management implementation (internal) | Implemented and results communicated | Consolidated | ||
| Addressing geopolitical and economic security risks | Prevent leaks and strengthen management of key technologies | Identification of key technologies to be protected | Relevant technologies identified | Consolidated | |
| Establishment of management systems for key technologies | Technical management model established for relevant technologies | Consolidated | |||
| Strengthening compliance and promoting fair management | Enhance compliance education | Introduction of tiered compliance training | Implementation complete | Consolidated | |
| Strengthening cybersecurity | Establish robust and appropriate information management systems and environments | Implementation of secure information management and control systems for customers, products, and internal use | System introduced and operations started | Consolidated | |
| Management of research and information related to alliance companies | Various related guidelines developed and implemented | Consolidated | |||
*1 CMRT: Conflict Minerals Reporting Template
2nd Mid-Term Business Plan (FY2022 to 2024)
| Former Materiality | KPI | Targets | FY2022 Results | FY2023 Results | FY2024 Results | ||
|---|---|---|---|---|---|---|---|
| Business | Business quality improvement and advancement | (Not disclosed)*2 | Consolidated | (Not disclosed)*2 | |||
| Co-creation with strategic partners | (Not disclosed) | Consolidated | (Not disclosed) | ||||
| E | Contribution to decarbonization | Energy use (crude oil equivalent) | 2% reduction per year | Consolidated | (23%) 472,535MWh |
1.3% 477,641MWh |
0.6% 480,285MWh |
| Renewable energy use rate | 60% | Consolidated | 40.4% | 63.6% | 72.2% | ||
| Contribution to circular economy | Total waste emissions | 2% reduction per year | Consolidated | 13% 25,758t |
(2%) 25,219t |
0% 25,215t |
|
| Water use (water withdrawal) | 1.5% reduction per year | Consolidated | (8%) 1,674,484㎥ |
(10%) 1,489,792㎥ |
(8%) 1,370,016㎥ |
||
| S | Nurturing of human resources and promotion of job satisfaction | Fulfillment rate of recruitment plan | 100% | Non-consolidated | 85% | 93% | 116% |
| Investment in human resource development | Increase year on year | Non-consolidated | 34.6% increase ¥20,302 |
13.9% increase ¥23,124 |
4.7% increase ¥24,199 |
||
| Establishment of employee engagement indicators and measurement methodologies | Non-consolidated | ー | Determine details of survey tool selection, process, etc. | Clari ed definition of engagement and reselected measurement tool | |||
| Diversity and inclusion | Percentage of newly hired women graduates (career-track) | 15% | Non-consolidated | 9.0% | 15.0% | 10.8% | |
| Ratio of women in management positions | 6.0% | Non-consolidated | 3.1% | 3.5% | 4.0% | ||
| Rate of employees with disabilities | 2.6% | Non-consolidated | 2.5% | 2.6% | 2.7% | ||
| Percentage of men taking paternity leave | 45% | Non-consolidated | 37.0% | 53.7% | 66.2% | ||
| Respect for human rights | Rate of Group bases ranked A in human rights due diligence surveys | 100% | Consolidated | Rank C 0% | Rank A 55% | Rank A 67% | |
| Participation rate for training on the GROUP CODE OF CONDUCT | 90% or more | Consolidated | 97% | 98% | 98% | ||
| Workplace environment, safety, and hygiene | Number of serious occupational accidents | 0 cases | Consolidated | 0 cases | 0 cases | 0 cases | |
| Product quality and safety | Improvement in product and process design | Consolidated | (Not disclosed) | ||||
| Conduct and improve CSMS*3organizational audits | Non-consolidated | (Not disclosed) | |||||
| Sustainable procurement | Supplier CSR assessment response rate | 100% | ー | 93% | 100% | 90% | |
| Supplier CSR assessment Rank B and below |
0% | ー | 6% | 1% | 0% | ||
| CMRT (mineral sourcing surveys) response rate | 100% | ー | 95.6% | 98.0% | 92.3% | ||
| Percentage of smelters certified by RMI*4 | 100% | ー | 88.7% | 90.0% | 78.3% | ||
| G | Response to geopolitical risks and reinforcement of supply chain resilience | Revision of risk maps | Consolidated | Annual review conducted | Annual review conducted | Risk map reviewed | |
| Establishment of production backup maps | ー | Formulated a production risk response plan | Production risk map formulated | ー | |||
※2 Withdrawn due to discontinuation of the 2nd Mid-Term Business Plan
※3 CSMS: Cyber Security Management System
※4 RMI (Responsible Minerals Initiative): Conflict Minerals Reporting Template: A template created by RMI to facilitate the reporting of conflict minerals