Materiality (Material Issues) | Sustainability

Material issues were partially revised for the purpose of re-establishing securing profitability – a foundation for sustainable growth – as a priority theme requiring urgent attention and to support companywide efforts to transform business to adapt to social change and industrial restructuring, technological advances, and intensifying competition in the manufacturing industry.
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	Key Performance Indicators(2nd Mid-Term Business Plan)	Results for Fiscal 2022
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 environment-friendliness Business quality improvement and advancement Cost structure reforms Capability reforms	ROE: 8% Operating income margin: 5% Credit rating: A or above	2.9% 3.6% A-
Contribution to decarbonization	Reduction of greenhouse gas emissions (Scope 1, Scope 2, and Scope 3) Proactive use of renewable energy Development of environment-contributing products	Energy use (crude oil equivalent): 2% reduction per year (consolidated) Renewable energy use rate: 60% (consolidated)	23.3% reduction 40.4%
Contribution to circular economy	Effective use of resources Reduction of environmental impacts across product life cycles	Total waste emissions: 2% reduction per year (consolidated) Water use (per unit): 1.5% reduction per year (consolidated)	13.6% 7.7% 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	Improve the degree of completion of product process designs Implementation rate of CS^1capability management (applicable departments): 100% Conduct and improve CSMS^2organizational audits	ー 100% 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.)	CRSR assessment response rate: 100% Percentage of CSR assessments ranked B or lower: 0% CMRT^3response rate: 100% Percentage of smelters certified by ^4: 100%	93% 6% 95.6% 88.7%
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) Human resources development expenses: increase from the previous period (non-consolidated) Establish engagement indicators and measurement methodologies	ー 35% year-on-year increase ー
Diversity and inclusion	Empowerment of women employees Securing human resources with diverse backgrounds Creating a culture	Percentage of newly hired women graduates: 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)	9% 3.1% 2.45% 37%
Respect for human rights	Tracking and mitigation of human rights risks Ongoing training on the GROUP CODE OF ETHICS（Currently 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 ETHICS（Currently GROUP CODE OF CONDUCT): 90% or more	C rank ratio: 0% 97%
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 CS（Cyber Security）

*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