Materiality (Material Issues) | Sustainability

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.
Alps Alpine will address these themes through a medium-term activity plan, thereby contributing to the resolution of social issues and attainment of the Sustainable Development Goals (SDGs).

Materiality Map

Identification Process

Material Issues and Measures

Materiality	Themes and Measures	KPIs (Fiscal 2022 to 2024)	Results for Fiscal 2023
Business quality improvement and advancement (Business and product transformation, launch of new products, response to inflation)	Research of value and development of products related to need for excitement, safety, and the environment Business quality improvement and advancement Cost structure reforms Capability reforms	ー^*1	ー^*1
Contribution to decarbonization	Reduction of greenhouse gas emissions (Scope 1, Scope 2, and Scope 3) Proactive use of renewable energy	Energy use (crude oil equivalent): 2% reduction per year (consolidated) Renewable energy use rate: 60% (consolidated)	1.3% 63.6%
Contribution to circular economy	Effective use of resources Development of eco-friendly products	Total waste emissions: 2% reduction per year (consolidated) Water use (per unit): 1.5% reduction per year (consolidated)	2.1% reduction 11.0% reduction
Product quality and safety	Promotion of prevention of incidents by taking the proper steps from the start of processes Reinforcement of function safety and product cybersecurity measures	Improvement in product and process design Conduct and improve CSMS^*2 organizational audits	ーー
Response to geopolitical risks and reinforcement of supply chain resilience	Business impact analysis and identification of bottlenecks Establishment of a business continuity plan for the entire supply chain	Revision of risk maps	Annual review conducted
		Establishment of production backup maps	Production risk response plan developed Completed creating a supplier map
Sustainable procurement	Reduction of compliance violations across the supply chain Tracking and mitigation of human rights risks across the supply chain Responsible procurement (traceability of minerals, etc.)	CSR assessment response rate: 100% Percentage of CSR assessments ranked B or lower: 0% CMRT^3response rate: 100% Percentage of smelters certified by ^4: 100%	100% 1% 98% 90%
Nurturing of human resources and promotion of job satisfaction	Secure human resources for business growth Expansion of human resources for new business creation Human resources system that encourages challenges A system that allows diverse work styles Initiatives to improve engagement	Fulfillment rate of recruitment plan: 100% (non-consolidated) Investment in human resource development: Increase year on year (non-consolidated) Establishment of engagement indicators and measurement methodologies	93% 14% year-on-year Increase Determine details of survey tool selection, process, etc.
Diversity and inclusion	Empowerment of women employees Creating a comfortable work environment for diverse human resources	Percentage of newly hired women graduates(management track ) : 15% (non-consolidated) Ratio of women in management positions: 6.0% (non-consolidated) Rate of employees with disabilities: 2.6% (non-consolidated) Percentage of men taking paternity leave: 45% (non-consolidated)	15.0% 3.5% 2.6% 53.7%
Respect for human rights	Tracking and mitigation of human rights risks Ongoing training on the GROUP CODE OF CONDUCT ※Note: Themes regarding supply chain human rights issues are described in the section on sustainable procurement.	Rate of Group bases ranked A in human rights due diligence surveys: 100% Participation rate for training on the GROUP CODE OF CONDUCT: 90% or more	A rank ratio: 55% 98%
Workplace environment, safety, and hygiene	Protection of employee safety Promotion of health and productivity management	Number of serious accidents: 0 (consolidated)	0
Co-creation with strategic partners	Proactive alliance building, including business alliances	ー	ー

*1 Withdrawn due to the cancellation of the 2nd Mid-Term Business Plan

*2 CSMS（Cyber Security Management System

*3 CMRT（Conflict Minerals Reporting Template）

*4 Responsible Minerals Initiative: An association of more than 300 companies and organizations worldwide that leads efforts on conflict minerals