Materiality (Key Priorities）

Materiality (Key Priorities）

We have identified four outcomes as our ideals for 2030: Technology & Solutions, Environmental Conservation through Business Activities, Core Businesses & Growth Businesses, and Diverse Workforce. To achieve these outcomes, we have established Materiality. Each of our employees will strive to solve social issues through business. This is what we understand as sustainability management.

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 society
・Contribute to environmental conservation
・Contribute to a 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.

Process Used to Identify Materiality (Key Management Themes)

We have revised the Group’s Materiality based on changes in the business environment, together with medium- and long-term forecasts.

STEP 1: Highlight issues

We highlighted social changes that would impact the KITZ Group, issues that are covered in the GRI standards and other sustainability guidelines, metrics used by sustainability rating agencies, and challenges we face in enhancing the Group’s corporate value.

STEP 2: Determine the order of priority

We mapped the issues we highlighted according to their importance to the KITZ Group and their importance to our stakeholders. We assessed these issues in terms of risks, opportunities, and financial impact. The Sustainability Committee then proceeded to determine the key priorities for the Group.

STEP 3: Confirm validity

We held discussions with each relevant internal department to ensure consistency with our strategies. We also held interviews with a wide range of stakeholders such as investors, our trading partners in supply chains, the labor union, and external experts, as well as Outside Directors. Through their advice, we confirmed the validity of our process.

STEP 4: Identify Materiality

After completing STEP 1, STEP 2, and STEP 3, the Board of Directors ultimately identified and resolved the Group’s Materiality.

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 Targets/KPIs