Materiality Analysis

The DIC Group recently once again abstracted and analyzed material issues, that is, issues with the potential to negatively affect its performance, and has identified those of particular significance. Guided by its medium-term management plan, DIC111, 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.

Materiality Analysis Process

1.Abstraction of Issues

DIC has abstracted material issues of particular significance to the DIC Group based on, among others, the GRI’s G4 Sustainability Reporting Guidelines, issues delineated in DIC111, and principal risks and opportunities.

2.Materiality Analysis

Sustainability Committee members, heads of departments that spearhead the implementation of initiatives related to sustainability themes, site general managers, and senior management from Group companies in the United States, Asia and elsewhere assessed abstracted issues from the perspectives of importance to DIC Group businesses and importance to stakeholders. Based on the results of this process, and of extensive subsequent deliberations by the Sustainability Working Group and the Sustainability Committee, issues of particular significance to the Group were determined.
As a result of this process, issues of fundamental importance to DIC Group businesses, including occupational health and safety, respect for human rights and compliance, are presented separate from the DIC Group’s Materiality Matrix.

(a) Importance to DIC Group businesses

Issues were assessed for potential to negatively affect the DIC Group now or in the future, with consideration given to both risks and business opportunities.

(b) Importance to stakeholders

The DIC Group recognizes four major external stakeholder groups (customers, suppliers, local communities and society, and investors). Issues were examined in terms of both level of interest on the part of stakeholders and potential impact. Key criteria from external assessment organizations (the Dow Jones Sustainability Indices (DJSI), FTSE, MSCI, the Sustainability Accounting Standards Board (SASB) of the United States and Sustainalytics) were also referenced, adding an objective perspective.

Key DIC Group Materiality Issues

The DIC Group’s Materiality Matrix

DIC has organized the issues abstracted and assessed through the process above into 28 general materiality categories. The materiality of these issues was scored and a materiality matrix created by plotting the scores using two scales, i.e., importance to stakeholders and importance to DIC Group businesses. In May 2019, this matrix, together with the separate issues of fundamental importance to DIC Group businesses, were approved by the Sustainability Committee and finalized.

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