Materiality (Key Issues)

The Tamura Group fulfills its corporate social responsibility by promoting strategies in six sustainability areas: compliance and ethics, risk management, human rights and labor, the environment, quality, and social contribution.
For its 14th Medium-Term Management Plan, the Group established a sustainability policy and reviewed its materiality in response to changes in the social environment and to further integrate its management strategies. In this review, the issues Tamura is addressing were evaluated from three perspectives: (1) importance to stakeholders, (2) importance to the Tamura Group, and (3) the impact of the Tamura Group's corporate activities on the economy, society, and the environment. A matrix was created with the overall evaluation of (2) and (3) on the horizontal axis and the evaluation of (1) on the vertical axis to identify materiality.
The newly established materiality will further strengthen the management foundation that supports growth, reform the corporate culture, and strengthen governance, compliance, and risk management to enhance corporate value.

Tamura Group’s materiality and goals

Major Category Subcategory KPI Target for FY2027
Promoting Growth Strategy Contributing to the realization of a decarbonized society GHG(Scope 1&2)Reduction Rate* Reduction of 25% or more
Renewable Energy Procurement Ratio 35% or more
Ratio of Sales in Key Markets 36%
Pursuit of job satisfaction Global Engagement Score 3pt / year
Strengthening Management Foundation Strenghening Corporate Governance Evaluation of the effectiveness of the Board of Directors Continuous Implementation Improved Effectiveness
(Qualitative Assessment)
For Group Managers Compliance Training
Participation Rate
100%
Strengthening company-wide risk management Stable PDCA by the Risk Management Committee Improved Execution
Information Disclosure Enhancement of Risk Disclosure
Fostering a culture that emphasizes quality Customer Satisfaction YoY Improvement

※Compared to fiscal year 2021

The Process of Identifying Materiality

Step 1
Identifying issues to be evaluated
We have extracted approximately 30 items to be evaluated based on the business domains of the Tamura Group, while referring to the requirements of international guidelines and evaluation indicators related to CSR and ESG, such as the United Nations Global Compact, ISO 26000, and GRI Standards.
Step 2
Materiality assessment
The items extracted in Step 1 were evaluated along two axes: importance to stakeholders and importance to the Tamura Group. Importance to stakeholders was assessed based on various surveys of stakeholders and feedback information from the departments that handle those stakeholders. Importance to the Tamura Group was assessed by analyzing the impact on business activities and management from both the risk and opportunity perspectives.
Step 3 Identifying materiality
The evaluation results were visualized in the form of a materiality matrix, and material issues were identified from among those deemed important to both stakeholders and the Tamura Group through deliberation at the Board of Directors meeting.
【Evaluation criteria】

Progress on Sustainability Strategy

We have steadily implemented measures to realize job satisfaction and a decarbonized society, making progress toward our goals. Regarding greenhouse gas reduction, we have achieved 100% renewable energy usage at our five major domestic bases (head office, Sakado, Iruma, Sayama, and Kodama), making progress toward our goal. Furthermore, as part of our job satisfaction reforms, we promoted a psychological safety program in which internal volunteers participate, and conducted a global employee engagement survey.
The results of each KPI is as follows.

Major Category Subcategory KPI 2025
KPI Target KPI Result
Promoting Growth Strategy Contributing to the realization of a decarbonized society GHG(Scope 1&2)Reduction Rate* 17% reduction 35% reduction
Renewable Energy Procurement Ratio 24% 36%
Ratio of Sales in Key Markets 34% 34%
Pursuit of job satisfaction Global Engagement Score Improvement of 3 points (58 points) ±0 points (56 points)
Strengthening Management Foundation Strenghening Corporate Governance Evaluation of the effectiveness of the Board of Directors Continuous Implementation Improve effectiveness Conduct effectiveness evaluation and implement improvements
For Group Managers Compliance Training Participation Rate 100% 100%
Strengthening company-wide risk management Stable PDCA by the Risk Management Committee Improve effectiveness Address key risks and reassess the risk assessment
Information Disclosure Enhance risk disclosures Enhance disclosures in the Annual Securities Report and Integrated Report
Fostering a culture that emphasizes quality Customer Satisfaction New customer satisfaction indicator Launch survey

*Compared to fiscal year 2021

Future Efforts and Initiatives

We expect major changes in the business environment to continue, including global environmental changes, geopolitical changes, technological advancements and the increasing importance of human capital.
The Tamura Group will view these changes in the business environment as an opportunity and proactively respond to them, and will come together as a company to confront the uncertain future while deepening the integration of our sustainability and business strategies toward the realization of our ideal situation in 2050.