Overview of Materiality
With the aim of ensuring it achieves the targets of its DIC Vision 2030 long-term management plan, which kicks off in fiscal year 2022, the DIC Group has once again identified material issues, that is, issues with the potential to significantly affect its performance.
Abstracting Material Issues and Identifying Priority Materiality Themes
The DIC Group conducted its first materiality assessment in fiscal year 2019. In fiscal year 2021, the Group once again abstracted material issues, referencing GRI’s G4 Sustainability Reporting Guidelines— considered the global standard—and items weighed by ESG assessment organizations, and also considering issues delineated in DIC Vision 2030 and The DIC Way, as well as social imperatives. Based on the results of this process, which also involves discussions with objective outside experts, and extensive deliberations by the Sustainability Working Group, which is responsible for the implementation of concrete strategies, and the Sustainability Committee, which functions as an advisory body regarding sustainable management, the Group identified eight material issues.
|Material issues||Principal related initiatives|
|Material issues (issues with the potential to significantly affect the DIC Group’s performance)|
|1||Transformation to a business portfolio that will help achieve sustainable prosperity for society||Shift to a business portfolio focused on five priority business areas that deliver social value (set forth in DIC Vision 2030) through the promotion of efforts to reinforce management of human capital , establishment of a more global management configuration, and promotion of IT and DX—identified as material issues—and by enhancing the technology platform and making strategic investments.|
|2||Contribution to the realization of a carbon-neutral society||Work to reduce CO2 emissions in Scope 1, 2 and 3 (purchase of raw materials, etc.) and to lower carbon footprint; use the DIC Sustainability Index to promote CO2 emissions reductions in the market and provide products and services that contribute to decarbonization.|
|3||Creation of new businesses with the potential to become mainstays||Identify areas at the intersection of ESH-related issues/social changes and the DIC Group’s core competencies and foster new businesses with the potential to become mainstays by enhancing the technology platform and making strategic investments.|
|4||Promotion of efforts to maximize the value of human capital||Build a strategic human resources portfolio that maximizes the value of human capital through medium- to long-term efforts to foster human resources, ensure mobility, and improve engagement and organizational cohesiveness, as well as ongoing, basic efforts to promote diversity and inclusion, and bolster job satisfaction.|
|5||Establishment of a more global management configuration||Advance global management governance, efforts to foster and strengthen management personnel, and create a global ERP system.|
|6||Promotion of DX||Promote transformation of corporate culture and structure through innovation of business process, workstyle and business model, making use of digital technology and data.|
|7||Response to a circular economy||Foster products that contribute to the 5Rs, help reduce COx2 emissions in categories 1 and 12 of Scope 3, and advance chemical and material recycling, thereby contributing to the realization of a circular economy.|
|8||Promotion of efforts to ensure the stable procurement of raw materials||Promote awareness of the current status of various raw materials of concern (i.e., subject to country risk or various supply failure risks, or for which there are issues regarding sustainability, including environmental soundness).|
|Cornerstones of business continuity|
|2||Security and disaster prevention, occupational safety and health|
|4||Respect for human rights|
DIC Group Management Issues Recognized in the Identification of Priority Materiality Themes
The DIC Group has recognized each of the following as management issues with the potential to impact management that will require continuous efforts to strengthen/address through its business activities: Product stewardship,* reduction of environmental impact (emissions into air and water), ability to optimize capital efficiency, strengthening of partnerships, communication with customers and markets, business continuity (business continuity planning (BCP)), political and geopolitical change (country risk), information security, intellectual property strategies, contribution to local communities, response to tax-related risks, response to pandemics, response to currency fluctuations, and realization of colorful and comfortable lifestyles.
- The DIC Group identified product stewardship as a material issue in its fiscal year 2019 materiality assessment. However, thanks to the Group’s steady progress in the implementation of the Global Chemical Information Project (GCIP) and the full-scale deployment of the DIC Sustainability Index, it is not among material issues identified in fiscal year 2021.
For each material issue identified in fiscal year 2021, the DIC Group has set key performance indicators (KPIs) and reported the progress of related initiatives. The Group will continue working to address material issues from a long-term perspective, positioning it to drive the expansion of its businesses, with the aim of achieving the targets of DIC Vision 2030 and ensuring sustainable growth further into the future.