Materiality Analysis

The DIC Group has abstracted and analyzed material issues, that is, issues with the potential to affect its performance, and has identified those of particular significance, and is taking steps to effectively and efficiently address these issues. Guided by its DIC108 medium-term management plan, and by its long-term growth scenario, the Group will continue working to ensure that these efforts are beneficial to the management of its businesses.

1)Materiality Analysis Process

1.Abstraction of Issues

DIC abstracted 91 issues of particular significance to the Group based on the Global Reporting Initiative (GRI)’s G4 Sustainability Reporting Guidelines; its own 11 sustainability themes; and issues delineated in DIC108 or The DIC WAY or added by Sustainability Committee members. The Group has divided these issues into three groupings: Environmental (E), social (S) and governance (including economic issues) (G), which it has combined into 22 general materiality issues.

2.Materiality Analysis

Sustainability Committee members, heads of business units that spearhead the implementation of initiatives related to sustainability themes, and senior management from DIC Group business units in the United States, Asia and elsewhere assessed abstracted issues from the twin perspectives of importance to DIC Group businesses and importance to stakeholders. Based on the results of this process, and having comprehensively reviewed issues identified by external assessment organizations, the Company determined materiality to the DIC Group.

(a) Material importance to DIC Group businesses

DIC assessed issues with the potential to have an impact on the DIC Group, giving consideration to both potential risks and business opportunities.

(b) Material importance to stakeholders

(i) The DIC Group recognizes five key stakeholder groups (customers, suppliers, local communities and society, employees and investors). Assessments looked at level of interest on the part of stakeholders and potential impact.
(ii) To reinforce the role of objective external criteria, materiality issues identified by the DIC Group were analyzed by key independent ESG investment assessment programs/organizations, namely, the Dow Jones Sustainability Indices (DJSI), FTSE, MCSI, the Sustainability Accounting Standards Board (SASB) of the United States and Sustainalytics. )

2)The DIC Group’s Materiality Matrix

DIC has organized the issues abstracted and assessed through the process outlined above into its own 22 general materiality issues. The materiality of each of these issues was scored and a materiality matrix created by plotting the scores using two scales representing importance to DIC Group businesses and importance to stakeholders. Information on the progress of the Group’s materiality-related initiatives in fiscal year 2016 can be found at the end of each section of the Sustainability Report component of both the complete and summary (printed) version of DIC Report 2017.

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