Sustainability Determination of Material Issues
Marubun Group's material issues
The Marubun Group (the “Group”) seeks to achieve its Vision, “Be the unrivaled and most trusted electronics trading company with unique and original values,” to fulfill its Purpose, “Contributing to a brighter future through technologies,” based on the Group’s separately stipulated Basic Sustainability Policy.
The Group determined the 5 material issues and 13 key theme that it should prioritize through its business activities in pursuit of the Vision and sustainable growth along with society.
Hereafter, we will proceed with discussions of efforts to address the material issues and the relevant Key Performance Indicators (KPIs) based on the proposed Key Goal Indicators (KGIs) defined from a longer-term perspective, and will also promote sustainability management compatible with our business strategies.
| Material Issue | Key theme | Key goal indicator (KGI for target states) |
| Contribution to restoration and conservation of the global environment and to its sustainability | Promote initiatives for a recirculating society | As a milestone toward achieving carbon neutrality in or before 2050, reduce our in-house GHG emissions (Scopes 1 and 2) to less than 50% of the 2019 level by 2030. |
| Ensure all the industrial waste generated in our business activities is properly monitored and managed until it is completely recycled or disposed of. | ||
| Continue to be involved in and contribute to the promotion of the resource recycling systems that are needed by society through our business operations and investments. | ||
| Identify and introduce new clean technologies | Further expand ecologically sound product lines across consolidated business operations. | |
| Realization of a safe, prosperous and sustainable society | Expand activities to contribute to society and local communities | Promote and maintain support for developing the public good and contributing to organizations. |
| Continually encourage employees to participate in social action programs and contribution activities. | ||
| Offer reliable products, services and stable supply chain infrastructure | All requests from customers regarding the quality and safety of our products and services are properly addressed. | |
| Fully obtain our suppliers’ understanding and cooperation with our Sustainable Procurement Guidelines. | ||
| The enhancement of our operational infrastructure and the reliability of our client service operations is realized and maintained at high levels (i.e., our “operational excellence” is effectively achieved and sustained). | ||
| Enhancement of human capital strategies in alignment with our Purpose | Strengthen programs for talent acquisition and development to constitute a highly professional group of employees | Human capital strategies consistent with our Purpose and our business strategies are properly defined for their implementation, and all relevant human capital management measures are effectively implemented. |
| Support programs for autonomous career development and the cultivation of human resources are effectively designed, established and functioning. | ||
| Consistently improve employee engagement | Continuously enhance employee engagement through various human capital strategies and HR measures. | |
| Our Employee Net Promoter Score is always greater than the average for the wholesale industry category that we operate within. | ||
| Encourage the empowerment and promotion of employees that are women | Ensure employees that are women are 15% or more of our management-level employees. | |
| Establishment and administration of a solidified group governance framework | Continuously improve stakeholder engagement | Engagement opportunities for our shareholders and investors are sufficiently offered. |
| Through the improvement of IR events and tools, the quality and quantity of the information we disclose is continuously reviewed, and a high reputation is objectively and comparatively established among our stakeholders. | ||
| Reinforce the compliance of all Group companies | Throughout our consolidated Group businesses, all legal and policy compliance is thoroughly ensured. (We have absolutely zero recognized compliance violation incidents outstanding). | |
| Continuously enhance strategy management and risk management frameworks | Business plans at the Group level are institutionally decided and reviewed in timely manner in light of macroeconomic trends, and the Group’s strategic directions are articulately communicated both internally and externally. | |
| The Group’s strategic directions and measures are compatible with the management plans of each business unit as well as with each individual employee’s goal setting (via Management by Objectives), and the PDCAcycle is organically and consistently functioning at all levels. | ||
| Integrated risk management is functioning at a high level for the early detection and correction of any specific risk elements or incidents. | ||
| IT systems infrastructure, which is the foundation for managing information, is maintained stably and operated effectively. | ||
| Addressing social issues through the development of cutting-edge technologies and solutions | Staying ahead of the change in the demand generated by society, introduce products and services with new added value | Continue to cultivate, identify and deliver products and services with new added value, by way of exploring new potential value for society. |
| Solve customers’ issues by offering solutions as an electronics trading company | By effectively capturing customers’ concerns and needs, continue to offer measures to respond to customer’s by leveraging solution development and technological capabilities. | |
| Initiate innovation through strategic partnerships and collaborations | Products and services in a new scope of business and new business domains created through strategic partnerships and collaborations are contributing to the expansion of business and the growth of the revenue of the Group. |
The materiality identification process
STEP1．Creation of a long list of candidate social issues
The social themes/issues that should be taken into consideration for the Group’s sustainable growth (candidate material issues) were initially identified from, for example, international guidelines and sustainability evaluation institutions’ material issues and benchmarks.
We identified social issues (materiality candidates) that should be taken into account for the sustainable growth of our Group, on the basis of international guidelines (GRI Standards, SASB), the material issues of sustainability rating agencies (MSCI), benchmarks (JPX ESG), and other inputs.
STEP2．Narrowing down based on Marubun’s businesses
We narrowed down the identified social issues based on those that our departments are tackling through their work, and on directions that should be prioritized in the medium and long term.
STEP3．Evaluation by internal and external stakeholders
We comprehensively evaluated the importance of the materiality candidates by consolidating opinions from executive directors, outside directors, executive officers, presidents of subsidiaries, and other parties along the two axes of importance to the Group and importance to stakeholders.
We extracted 18 items that we should prioritize.
STEP4．Reorganization of material issues and determination of final draft
We reorganized and grouped 18 materiality items from the perspective of the environment, society, human capital, governance, and our Company, and decided on a final materiality draft with five items.
We set key themes that connect to specific initiatives, and decided on a draft list of KGIs.
STEP5．Identification of material issues
After confirmation of the final draft by the Sustainability Committee and resolution by the Board of Directors, we identified our material issues.
