Process for Identifying Materiality (Key Issues)

SUSTAINABILITY
MANAGEMENT

For Tokyo Century, sustainability management constitutes a management strategy for resolving social issues and achieving sustainable growth and improvements in corporate value by contributing to the creation of an environmentally sound, sustainable economy and society, as described in its Management Philosophy, through its business activities.

Materiality Identified to Support Sustainability Management

Based on the United Nations Sustainable Development Goals (SDGs), Tokyo Century has created a materiality map that considers the degree of priority for its stakeholders (indicated on the vertical axis) as well as the degree of priority for the Company itself (indicated on the horizontal axis). Priority issues for the Company include the development of diverse businesses (such as aviation and solar power generation) that take advantage of its highly free operating environment and business characteristics grounded in the value of its assets.
The process of creating this map involved first assessing the importance of issues for stakeholders based on major environmental, social, and governance (ESG) evaluation and non-financial information disclosure standards as well as on the 169 targets for the 17 SDGs. We then proceeded to identify the issues of importance for the Company by looking at the connection between the SDGs and our Management Philosophy and financial information. The important issues defined in these two categories formed the axes used when preparing our materiality map, and this map was used to identify the five materiality items described on the following page, based on discussions by the Sustainability Committee and the Board of Directors.
In addition, protocols have been introduced regarding materiality notifications in agendas for meetings of the Transaction Evaluation Meeting, Management Meeting, and the Board of Directors. The Company has also created a sustainability contribution award program. These measures are meant to help improve awareness regarding materiality initiatives among employees. Moreover, we have defined key performance indicators (KPIs) along with a PDCA (plan–do–check–act) cycle for our materiality (key issues).

Identification of Materiality Using Materiality Map

To identify materiality, Tokyo Century created a map that represents the relative importance of issues for stakeholders (vertical axis) as well as the importance for the Company itself (horizontal axis) in relation to the SDGs. Priority issues for the Company include the development of diverse businesses, such as aviation and solar power generation, that take advantage of its highly flexible operating environment and business characteristics grounded in the value of its assets. Using the materiality map, we identified non-financial information that is vital for society and our business. Through discussions by the Sustainability Committee and the Board of Directors, we selected five materiality items and determined the shared platform that supports them.

Tokyo Century’s Materiality (Key Issues)

*1Solar power generation company Kyocera TCL Solar LLC and eight other subsidiaries
*2Program to certify business operators based on the revision to Act on Facilitation of Information Processing implemented on May 15, 2020; companies must apply for certification and the Ministry of Economy, Trade and Industry selects for certification those companies implementing superior initiatives.
*3Nippon Car Solutions Co., Ltd., Nippon Rent-A-Car Service, Inc., and Orico Auto Leasing Co., Ltd.
*4Nippon Car Solutions Co., Ltd.
*5Nippon Rent-A-Car Service, Inc.