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. |
Results of sustainability strategy in the 13th Medium-Term Management Plan
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.
| Materiality | Target for FY2025/3 | FY2024 results |
|---|---|---|
| (1) Sustainable business growth | Ratio of new product and market sales: 30% | 24％ |
| (2) Product quality improvement | Defect cost ratio: 15％ reduction against the average during the 12th Medium-Term Management Plan period | 32% increase |
| (3) Proper supply chain management | SAQ survey on key suppliers: 100％ | 76％ |
| (4) Compliance | Compliance training: 100％ | 96％ |
| (5) Fulfilling workplace | ①(Global) Improvement of employee survey implementation score: 3 pt/year ②(Japan) Diversity promotion Ratios of female, non-Japanese, and mid-career employees in managerial positions: 10%, 5%, 50% |
①±0pt ②8.3％、1.8％、39.1％ |
| (6) Co-existence with local community | Social contribution cost: 1% or more of ordinary profit | 1.2％ |
| (7) Environmental protection & contribution to realization of a decarbonized society | ①Ratio of sustainability-contributing product sales: 27% ②Greenhouse gas (Scope 1, 2) reduction: 33% or higher (compared to 2013; standard values are adjusted for conditions at individual factories) |
①24％ ②38％ |
| (8) Proactive information disclosure | ①Publication of integrated report ②Climate related disclosure based on TCFD |
①issued ②disclosed |
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.