Materialities(Key Priorities)

Materialities(Key Priorities)

The KITZ Group, guided by the “KITZ Statement of Corporate Mission” and the “Long-term Management Vision,” has set forth four key Ideals for 2030: Technology/Solutions, Environmental conservation through business activities, Core businesses/Growth businesses, and the active participation of a diverse workforce. Furthermore, we have identified material issues (materiality) to achieve these ideals.

Long-term Vision

KITZ Group’s Materiality (Key Management Themes)

As part of its Phase Second Medium-term Plan, “SHIN Global 2027,” announced in February 2025, the KITZ Group has reviewed and updated its materiality in order to further promote sustainable business growth.
We have identified the following three themes as material issues directly linked to business growth:
・Contribute to the advancement of digital soclety
・Contribute to environmental conservation
・Contribute to prosperous life through evolution
In addition, to build a strong foundation that supports these initiatives, we have set out the following material issues:

・Empower our workforce to lead the way to the future
・Establish sustainable supply chain
・Implement more active governance
By encouraging every employee to incorporate these material issues into their daily work, the KITZ Group is committed to contributing to the realization of a sustainable future.

Creating a sustainable future

Process for Identifying Materiality (Key Management Themes)

In reviewing our materiality, the KITZ Group followed the process outlined below:

STEP1  Issue Identification

We identified key issues by analyzing social changes that may impact our business, sustainability-related guidelines such as the GRI Standards, evaluation criteria used by sustainability rating agencies, and issues essential for enhancing the corporate value of the KITZ Group.

STEP2 Prioritization

The Sustainability Committee assessed the impact of the identified issues based on two axes: their significance to the KITZ Group and their importance to stakeholders. Through this evaluation, we prioritized the most relevant material issues for our company.

重要課題のマッピング

STEP3 Validation

We held discussions with relevant internal departments to ensure alignment with corporate strategy. In addition, we conducted interviews with multiple stakeholders, including investors, supply chain partners, and external directors, to validate the appropriateness of the selected issues.

STEP4 Finalization of Materiality

Based on the insights gathered through Steps 1 to 3, the Board of Directors finalized and approved the materiality themes.



Key Frameworks and Guidelines Referenced:
GRI Standards, SASB Standards, ISO 26000, ISSB, SSBJ, TCFD (Task Force on Climate-related Financial Disclosures), CDP, SDGs (Sustainable Development Goals), UN Global Compact

KITZ Group’s Materiality and Corresponding SDGs

Materialities ROIC ×ESG Issues R
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E S G Relationship with the SDGs

Digital

Contribute to the advancement of digital society

Technology development and product supply to support advanced semiconductor manufacturing
Enhancing product and service offerings through IoT
Promoting data-driven management using AI
Automation and labor-saving through digital technologies
Addressing information leaks and cybersecurity risks

Green

Contribute to environmental conservation

Establishing technologies to contribute to a hydrogen-based society
Contributing to social infrastructure through water treatment technologies
Promoting environmental impact reduction through our products
Addressing climate change (CO2reduction)
Promoting resource circulation (water resources and waste management)
Managing hazardous substances in products

Evolution

Contribute to the enrichment of lifestyles through evolution

Expanding business in the engineering field
Responding to the evolving functional materials market and chemical shift
Creating new businesses and strengthening portfolio management
Enhancing product development and supply tailored to global markets
Addressing rising copper prices

Human resource

Empower our workforce to lead the way to the future

Developing and utilizing a human capital portfolio
Enhancing employee engagement
Promoting DE&I and gender equality
Advancing initiatives to respect human rights
Improving occupational health and safety standards

Supply chain

Establish sustainable supply chain

Expanding global suppliers and promoting optimal local procurement
Reducing lead time and optimizing inventory through supply-demand management
Promoting CSR-based procurement

Governance

Implement effective, balanced governance

Proactive growth investment through sound risk-taking
Strengthening product safety and quality assurance
Enhancing corporate governance
Responding to geopolitical risks
Enhancing response to natural disasters and pandemics

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