Material Issues

Proterial’s ESG activities in 2022 largely targeted six specific material issues (critical challenges). In identifying these material issues, we began by selecting social issues and then extracting critical challenges based on an evaluation of their importance to the Company and its stakeholders. Building on the aforementioned, material issues were identified through repeated discussions among all Executive Officers and managers in charge of business divisions with final reviews conducted by the Executive Committee.

Process of Identifying Material Issues

Material Issues (Key Issues)

Material Issues/Major Measures/ Key Management Indicators

Along with setting major measures to respond to the six material issues identified for the environment, society, and governance, the Group has set indicators to manage the progress of major measures. We are implementing steady measures to achieve the target values of these key management indicators by FY2030.
Through achieving these targets, we aim to greatly increase our corporate value as a materials company that leads sustainability by high performance, along with developing superior competitiveness at the top level of industries.
Meanwhile, the responsible executive officer oversees the setting of related targets as well as the planning and implementation of measures for these critical challenges. Matters relating to the achievement of these targets and plans are reported to and deliberated by the Executive Committee, which is presided over by the Representative Director, President and CEO, and managed through reports to the Board of Directors as appropriate.

*1.Energy consumption unit: Energy consumption divided by sales
*2.Environmentally-friendly priority products: Selected products that are being expanded in terms of business strategy and contribute highly to solving environmental issues such as climate change and effective use of resources. To strengthen environmentally-friendly products, we are currently studying definitions of management indicators, target values, and strategies to achieve them.
*3.Frequency rate of occupational accidents: Number of fatalities and injuries due to occupational accidents divided by total number of actual working hours x 1,000,000 (number of accidents per 1 million working hours in a calendar year).
*4.Number of serious accidents: Serious accidents include fatalities, serious injuries equivalent to fatalities (disabling injuries of Severity 7 or higher), and accidents in which three or more persons are injured at the same time.
*5.Ratio of positive evaluation of engagement indicators: Positive response rate of employee survey sustainable engagement indicators. Changes to the survey framework and target questions for engagement indicators in FY2022. With plans to review survey methods, target values are not presented.
*6.Non-consolidated data.
*7.Major quality incident index: Index of accidents that caused serious damage to customers’ bodies or property, or serious damage to society (including violations of laws and regulations), with FY2020 set as 1.
*8.KAIZEN: Activities aimed at improving productivity and quality through continuous streamlining of production sites or company operations
*9.Indicators that are not suitable and those with a non-disclosure policy are indicated with “—”.
*10.Ratio of positive evaluation: Changes to the survey framework and engagement indicator target questions in FY2022.
*11.Manufacturing lead time: Percentage decrease in the time from the start of manufacture to the delivery of products for priority products. FY2022 figures are used as the benchmark.
*12.New product ratio: Ratio of sales of new products to consolidated sales revenue. New products are registered as those that open up new markets or new applications, or have significantly improved performance. A product that has been become generalized three years after registration as a new product is removed from the register.
*13.Effect of measures including portfolio revision decreased significantly.