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.
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.
To identify materiality issues, we began with our company's Purpose that we established in 2021. The Purpose consists of three key elements:
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.
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).
We analyzed the employee survey conducted in FY 2020 and learned that employees desire action on the following issues.
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
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)
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.
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.
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.
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.
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.