Proterial believes that promoting business activities that contribute to social and environmental sustainability is the foundation of its business continuation and presents important business opportunities for the Group's growth.
The Group has long carried out business activities with a strong consciousness of ESG issues. To further accelerate our efforts, we have identified materialities to which to devote our energy. In addition, we have also organized measures and key management indicators related to each materiality. We have also presented SDG goals related to each materiality.

Approach for Identifying Materiality

Process of Identifying Materiality

Materialities of Proterial

The identified materialities are classified into six categories. All materialities are reflected in concrete management measures, implemented based on the Group's Value of "Unfaltering integrity" and Vision of "Leading sustainability by high performance." Furthermore, by continuously improving and deepening our engagements in these materialities, we will embody our Mission of "Make the best quality available to everyone."

1. *1.Energy consumption unit: Energy consumption divided by sales
2. *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. *3.Frequency rate of occupational accidents: Number of fatalities and injuries due to occupational accidents divided by total actual working hours x 1,000,000 (number of accidents per 1 million working hours in a calendar year).
4. *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. *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. *6.Non-consolidated data.
7. *7.Major quality incident index: Index of accidents that caused serious damage to customersʼ bodies or property, or serious damage to society (including violations of laws and regulations), with FY2020 set as 1.
8. *8.Indicators that are not suitable and those with a non-disclosure policy are indicated with “—”.
9. *9.Ratio of positive evaluation: Changes to the survey framework and engagement indicator target questions in FY2022.
10. *10.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.
11. *11.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.
12. *12.TBU: To be updated