YKK AP

Materiality of YKK AP

To drive YKK AP's sustained growth, we have identified "Materiality (priority issues)" based on our Purpose.
We will establish systems to make progress on the materiality issues,
and further bolster YKK AP's sustainability management.

The positioning of materiality and the 6th Mid-term Management Plan

We have identified materiality issues as a strategic initiative to drive our company's sustainable growth along economic, environmental, and social themes. Engaging in these materiality issues means putting into practice the YKK Philosophy, Management Principle, and Purpose. To achieve our Purpose of "building a better society," we will invest capital and resources in the materiality issues that should be prioritized. Also, each of our businesses will put the 6th Mid-term Management Plan into practice to create social and economic value.

The approach to identifying materiality issues and the identification process

To identify materiality issues, we began with our company's Purpose that we established in 2021. The Purpose consists of three key elements:

  • • The "Human Resource" to support sustainable growth, indicated by "the spirit of curiosity and exploration,"
  • • The resolution of social issues through products and the "Monozukuri" at its source, indicated by "art and technology" and "architectural products of true value,"
  • • "Trust / Reliance" to fulfill our social responsibility, indicated by "connecting people to nature and the future."

With these elements as the core, we added a "management perspective" related to sustainable business growth and a social perspective related to sustainable social development.
For the management perspective, we extracted themes with high impact on our business from the business policy. For the social perspective, we analyzed the importance to each of the stakeholders and extracted materiality issue candidates. And from the candidates extracted from these perspectives, we selected the most important ten items as our materiality issues.

The approach to identifying materiality issues, guided by our Purpose The approach to identifying materiality issues, guided by our Purpose

How we derived social perspectives

To derive "social perspectives" we analyzed the following four stakeholder perspectives. Since we are an unlisted company, we referred to employee surveys as data that includes investor perspective and Priority topics disclosed to the Sustainability Accounting Standards Board (SASB).

Priority issues from the results of the employee survey

We analyzed the employee survey conducted in FY 2020 and learned that employees desire action on the following issues.

  • Positive & fulfilling work environments
  • Human resources systems
  • Diversity
  • Human resources development

Priority issues for business partners

We chose priority issues raised by our main business partners and estimated the importance of each priority issue.

Issues estimated as important to business partners

  • The environment
  • Solving social issues through products
  • Compliance
  • Health and safety
  • Supply chains
  • Human resources development
  • Innovation
  • Human rights
  • Diversity
  • Resilience
  • Community
  • Data security
  • Consumer issues
  • Communication

International proirity issues from the perspective of global risk

We identified seven items that are both highly likely to develop and high in impact from the 2021 edition of the Global Risk Report issued by the World Economic Forum.
(Seven items listed at rightunder with colors corresponding to each risk)

Priority issues in our business field according to SASB

Perspectives of ESG investors are reflected in the disclosure standards for non-financial information by the Sustainability Accounting Standards Board (SASB) based in the U.S.A. We have mapped out the levels of the priority issues in each business field and identified the issues to emphasize in our business.

SASB Materiality Map logo SASB Materiality Map logo

Reviews by board members

January through May 2021

Considered materiality with focus on the Purpose discussed by employees and officers and formulated by resolution of the Board of Directors. Possible choices were submitted for subsequent deliberation and resolution by the Board of Directors.

June 2021 onward

Established the Materiality Promotion Working Group to push forward with our formulated materiality. The working group is under direct control of the ESG General Meeting headed by the president.

System to promote sustainability and materiality

In FY 2019, YKK AP created the "ESG General Meeting" as an organization to engage with and drive sustainability. Headed by the president, it is held twice a year to comprehensively discuss various themes and bring people together toward sustainability management. The Environmental Policy Board Committee takes the lead on environmental themes, the Brand Management Committee handles social themes, and the Compliance Committee handles governance. In addition, the "Materiality Promotion Working Group" was created to report directly to the "ESG General Meeting". We are building a system in which each committee chair can responsibly engage in their areas while coordinating with the relevant internal departments.

Further advancing sustainability management

To further advance sustainability management in the 6th Mid-term Management Plan, the ESG General Meeting that oversees YKK AP's sustainability management as a whole established the "ESG Basic Policy."
The ESG Basic Policy is to fulfill social responsibilities and create social value through our products by implementing the YKK Philosophy of the "Cycle of Goodness."
Based on this policy, the committees that lead E (environment), S (society), and G (governance) will deploy specific initiatives to the entire company through business activities and put the policies and key measures for each theme into practice.