We defined “materiality” as importance in terms of both “social and environmental impact” and “financial impact on the group.” In our previous AG2023 medium-term business plan, formulated in 2021, we identified issues that are highly important and to be resolved by the group (priority issues) and contribution themes (contribution areas) based on surveys conducted with stakeholders in each business area. For GS2028, we have performed a double materiality assessment, referencing the European Sustainability Reporting Standards, and established our sustainability indicators based on the assessment results.
Process of double materiality assessment
Step 1; Analysis of business structure
Organized and studied the group’s value chain and key stakeholders using transaction data and other relevant information.
Step 2; Identification of sustainability issues relevant to the Group
Identified and listed sustainability issues relevant to each element of the Group’s value chain.
Step 3; Assessment of social and environmental impact
Assessed the social and environmental impact of each item on the list created in Step 2, considering the extent of the impact, the scale of the impact, and the potential for remediation.
Step 4; Assessment of financial impact for the Group
Assessed the potential financial impact and likelihood of the each items on the list created in Step 2, from risk and opportunity perspective.
Step 5; Identification of double materiality
Identified items assessed to be material in Step 3 or Step 4 or both as double materiality criteria.
Concept of double materiality
Materiality assessment result
