Identifying materiality

To meet the expectations of stakeholders and continually develop the Earth Group over the long term, Earth Corporation believes that it is important to check and evaluate the impact of various social issues and corporate activities, and to clarify issues that are important to management. Based on this approach, in 2021, we identified key issues (materiality) that are important to sustainability.
Moving forward, we will set key themes as well as targets and KPIs tied into those themes, to undertake sustainable initiatives that leverage the Earth Group’s business characteristics and management resources.

Process of identifying materiality

Material issues were identified using the following process.

STEP1
Identify issues
- Identify issues, making reference to international frameworks and guidelines in the sustainability field
STEP2
Identify materiality
- The CSR & Sustainability Promotion Committee and heads of divisions evaluate the importance of issues in business based on the company’s directions, and create a draft of material issues
STEP3
Prioritize materiality
- Following interviews with top management and outside directors, approve five material issues through reviews by the Board of Directors

Materiality (key issues) at Earth Corporation

Category	Materiality (key issues)	Key themes and main initiatives	Targets and KPIs
Environment	Responding to climate change	● Reduce CO₂emissions	● Reduce CO₂emissions: Compared to 2020 (Scope 1, 2) ・14% reduction (2023) ・28% reduction (2026) ・46% reduction (2030)
	Responding to climate change	● Promote a transition to renewable energy for electric power	● Transition to renewable energy: ・ Renewable energy at plants [renewable energy rate: 60%] (2023) ・ Renewable energy at R&D Center [renewable energy rate: 90%] (2026) ・ Renewable energy at offices* [renewable energy rate: 95%] (2030) *Excluding tenant offices
	Attention to global environmental problems	● Increase the efficiency of water usage in relation to production activities (from R&D to production).	● Increase water usage efficiency: Compared to 2020: ・ 3% increase (2023) ・ 6% increase (2026) ・ 10% increase (2030)
		● Use resources effectively, striving for a recycling-oriented society	● Zero emission of industrial waste and other materials from plants and R&D Center: ・ Investigate and review status at waste treatment subcontractors (2023) ・ Zero emissions at plants and R&D Center (2026) ・ Continue zero emissions at plants and R&D Center (2030)
		● Stipulate Earth ECO Standards, and expand the scope of environment-friendly products	● Outline of Earth ECO Standards: Click here for Earth ECO Standards
	Promoting sustainable procurement	● Promote procurement of environment-friendly packaging materials	● Forest certified paper usage rate: ・ Usage rate: 10% or more (2023) ・ Usage rate: 30% or more (2026) ・ Usage rate: 70% or more (2030)
Social	Providing products and services that contribute to safe and comfortable living	● Increase the regular quality audit rate at in-house plants and outsourced manufacturing plants, to eliminate serious quality accidents that would negatively impact customer satisfaction and trust	● Regular quality audit rate: Maintain at 100% (2023, 2026, 2030)
		● Increase the rate of annual training plan implementation to ensure compliance with related laws and regulations, and eliminate serious accidents that would lead to violations	● Training implementation rate: Maintain at 100% (2023, 2026, 2030)
	Creating workplaces that support activities by diverse individuals	● Promote the use of annual paid holidays.	● Paid holiday usage rate: Maintain at 70% or more (2023, 2026, 2030)
		● Increase the ratio of women holding managerial positions to promote the participation of women in the workplace	● Ratio of women in managerial positions: ・ 10% or more (2023) ・ 18% or more (2026) ・ 30% or more (2030)
Governance	Strengthening the management base