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Materiality of Kuraray Group

Materiality

 The Kuraray Group identifies material issues related to us as materiality. The Kuraray Group reviewed its materiality in 2019, for five domains along with specific examples: “improving the natural environment,” “improving the living environment,” “effective use of resources and reduction of environmental impact,” “improving supply chain management,” and “building a ‘company that people can take pride in’.” Contributions to these revised material domains are being incorporated into the initiatives and targets of their respective Medium-Term Management Plan "PASSION 2026.”

Materiality of the Kuraray Group

Materiality of the Kuraray Group

SDGs Linked to Kuraray's Materiality

 In line with the review of materiality, material issues that the Kuraray Group should address have been identified from the terms of the SDGs, as shown below in “Procedure to identify materiality.”
 Each material issue has been linked with the SDGs to clarify the relationship. This allows the Group’s sustainability activities to not only address the Group’s material issues but also contribute to achieving the target of the SDGs.

Linking Materiality with SDGs Creating Value through Business
Linking Materiality with SDGs Creating Value to Strengthen the Foundation of Kuraray

Relationships with stakeholders

 The Kuraray Group’s business activities are supported by engagement with a broad range of stakeholders, including customers and consumers, shareholders and investors, suppliers and business partners, employees, local communities and government bodies. The Group will further deepen dialogue and collaboration with these stakeholders to enhance the value of our corporate activities as we work to solve our materiality.

Involvement with Stakeholders
Shareholders and Investors
>IR
General shareholders’meetings, Business site tours (IR), Financial results briefings, Kuraray report, Sustainability website
Suppliers and Partners
>Supply Chain Management
Purchasing activities, Safety councils, Sustainability evaluation of suppliers, etc.
Employees
>HR Strategy
Global engagement survey, Labor-management consultations, Health and safety councils, Performance review, Internal newsletters, Trainings, Various events, etc.
Local Communities
>Interaction with Society
Meetings with local community associations, Plant tours, Chemistry classes for boys and girls, etc.
Central and Local Government, NPOs and NGOs
>Interaction with Society
Plant tours, Fire drills, Volunteer activities, etc.
Customers and ConsumersSales activities, Trade shows, Web sites, Questionnaires, etc.

Materiality Specific Procedure

 Material issues (materiality) that the Kuraray Group should deal with on a priority basis have been identified in accordance with the following procedure. Materiality will be reviewed periodically in accordance with developments in the international community, changes in the business environment, and so on.

Procedure to Identify Materiality

Step 1

 The details of international guidelines and studies by sustainability assessment institutions that are used in extracting and summarizing social issues are as follows.

GRI, Environmental Reporting Guidelines (2012 Version), RBA, MSCI, FTSE4Good, DJSI, ISO26000, UN Global Compact, Green Paper EU, European Commission Strategy on CSR, German Stability Code, Circular Economy Package, American Chemistry Council

Step 2

 The four aspects extracted from the “The Chemical Sector SDG Roadmap” of the World Business Council for Sustainable Development (WBCSD) are as follows:

Food disposal, water processing, climate change, and people’s health and wellness

Step 3

 The materiality matrix of the Kuraray Group, which evaluates comprehensively by using the two axes of the “materiality for stakeholders” and “materiality for the Kuraray Group” is shown below.

The materiality matrix of the Kuraray Group

Materiality Matrix of the Kuraray Group

 “Corporate governance,” “CSR management,” “ethics/code of conduct,” “risk management,” “relationships with stakeholders,” and “top statement” are to be dealt with separately from materiality.
 As a result, materiality that the Kuraray Group is expected to deal with on a priority basis were identified as the following 19 aspects:

12345
Diversity and inclusionEmission of GHG and harmful substances to the environmentEnergy saving /
Use of renewable energy
Working smarter and
human resource development
Occupational safety and health
678910
Marine plastics
and plastic waste
Product stewardshipRespect for human rightsFood lossMeasures to water shortage
1112131415
Circular EconomyClimate changePeople’s health and wellnessBiodiversityInnovation
16171819
Sustainable ProcurementSupply chain managementReduction of wastesUse of water resources

Step 4

 The 19 aspects identified in Step 3 were grouped to determine the following five items of “improving the natural environment,” “improving the living environment,” “effective use of resources and reduction of environmental impact,” “improving supply chain management,” and “building a ‘company that people can take pride in’” as materiality candidates.
 In addition, “improving the natural environment” and “improving the living environment” were grouped under the broad category of “creating value through business,” with “effective use of resources and reduction of environmental impact,” “improving supply chain management,” and “building a ‘company that people can take pride in’” under “creating value to strengthen the foundation of Kuraray.”

 MaterialityThe 19 aspects identified in the materiality matrix
Creating Value
through Business
Improving the Natural Environment2, 3, 6, 10, 11, 12, 14, 15
Improving the Living Environment9, 10, 11, 13, 15
Creating Value to Strengthen
the foundation of Kuraray
Effective Use of Resources and Reduction of Environmental Impact2, 3, 6, 10, 11, 18, 19
Improving supply chain management7, 16, 17
Building a "company culture we can be proud of"1, 4, 5, 8

Step 5

 The materiality candidates determined in Step 4 were reported to and approved by the Board of Directors.