Key sustainability issues (materialities)

Defining our materialities

In 2022, we defined the following five points as our materialities to be addressed in 2030 by backcasting from our vision for the society of 2030, including our VISION2030 long-term management vision and contribution to the SDGs. With respect to these materialities, the Daiseki Group seeks to achieve both progress in our business activities and the sustainability of the global environment and society, based on our corporate purpose of "being an environment-creating company that contributes to society through the environment, making the best use of limited resources."

Materiality Assessment Process

Assessing the Importance

Main opinions considered

Investors
Reducing our greenhouse gas emissions
Contribution to the water cycle
Disclosure of toxic waste emissions information
Strengthening employee education and labor management
Protecting human rights
Introduction of a safety management system
Introduction of performance-linked compensation system
Strengthening Group company management
Vision 2030 target management
Compliance

Daiseki Group officers and employees
Realization of a circular economy society
Promotion of countermeasures for climate change
Demonstration of each person’s individuality and abilities
Workplaces prioritizing safety where employees can work with peace of mind
Co-existence and mutual prosperity with local communities
Gaining trust through compliance

The Daiseki Group's priority Issues and initiatives

In line with our vision for the society in 2030, the Daiseki Group continually engages in sustainability activities that must be carried out by that date. The content of our sustainability activities are formulated with consideration of factors including our corporate purpose and materialities, the VISION2030 long-term management vision and contribution to the SDGs. The activities are approved by the Sustainability Headquarters composed of our president, other executive officers, and the presidents of our Group companies, and are then reported to the Board of Directors.

Materiality Issues	Initiatives to Achieve Materiality	Targets	Results
Making the best use of limited resources	Contributing to environmental conservation and carbon neutrality by appropriately recycling industrial waste.	Increase avoided emissions to 785,000 t-CO₂ or more by FY2028	Reduced 643,000 t-CO₂ in FY2025 Established Daiseki Group Environmental Policy in May 2025 (revised for Daiseki alone)
Making the best use of limited resources	Aiming to realize a circular economy society by supporting resource circulation mainly for manufacturing industry clients	Increase material recycling shipment volume to 258,300 t or more by FY2031	Shipped 149,000 t of recycled materials in FY2025 Established Daiseki Group Environmental Policy in May 2025 (revised for Daiseki alone)
Creating workplace that individuals shine	Maintaining and improving the physical and mental health of employees and their families, who are the foundation supporting our growth	Maintain and improve the physical and mental health of employees	Established Daiseki Group Human Rights Policy in May 2025 and introduced health checkup subsidies for employees’ families
Creating workplace that individuals shine	Promoting human capital strategies essential for growth based on business strategy	Revise the personnel system and formulate human capital strategy	Started revising personnel system in April 2025
Eliminating industrial and environmental accidents	Penetrating the philosophy to put safety as the top priority above all else	By FY2031, review the Safety and Health Management Regulation, instill the safety philosophy, and clarify responsibilities	Established Daiseki Group Health and Safety Policy in May 2025 (revised for Daiseki alone) Established disaster and accident reporting standards at Daiseki in April 2024
Eliminating industrial and environmental accidents	Providing training and deploying equipment necessary to ensure safety	Achieve zero lost-time accidents among Daiseki employees	Recorded 2 lost-time accidents in FY2025
A company well-liked by local communities	Contributing to the conservation of the local environment	Conduct cleaning activities around business sites and environmental beautification activities in collaboration with local municipalities and residents	1,164 employees participated in cleaning and environmental beautification activities in FY2025
A company well-liked by local communities	Maintaining social infrastructure through disaster recovery support	Provide swift recovery support when clients’ factories are affected by natural disasters or accidents	Supported disaster recovery for companies affected by the Noto Peninsula earthquake in Ishikawa and Toyama prefectures in January 2024
Promoting thorough understanding of compliance and observation of laws and regulations	Strengthening governance systems and implementing compliance education	Strengthen Group governance structure	Established Daiseki Group Corruption Prevention Policy in May 2025; Audit and Supervisory Committees from Group companies engaged in opinion exchanges, and presidents of Group companies provided business briefings to the committees.
	Promoting governance that supports growth and succession planning with a focus on the next generation	Develop a succession plan	Held succession plan study session with external experts in February 2024; started revising personnel system including succession plan in April 2025