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Process for Identifying Materiality

In identifying materiality, DNP comprehensively ascertains social issues and megatrends related to the environment, society and the economy, and evaluates and analyzes medium- to long-term risks (variable factors) and the impact of these on our business based on factors such as the impact on our own business activities, the value we can provide, and our strengths. Considering these external trends, DNP has specified the four types of societies that it aims for, and to realize these we have specified what DNP should do and the value it should provide and identified these as materiality.

Process for Identifying Materiality

Ascertaining social issues

DNP comprehensively ascertains social issues from the perspectives of market changes and megatrends and the materiality of these for each stakeholder as well as international frameworks such as SDGs, the GRI standards and ESG social evaluation items.

Related stakeholders

Employees, local communities, business partners,
shareholders/institutional investors,
education/research institutions, NPOs/NGOs, various organizations, etc.

Related stakeholders

SDGs, GRI Standards, SASB Standards,
United Nations Global Compact, TCFD, TNFD,
UN Guiding Principles on Business and Human Rights, etc.

Identifying and prioritizing social issues

Based on the relationship with our Corporate Philosophy and Business Strategy, identification of short-, medium- and long-term risks and opportunities and an assessment of the impact of these on management, DNP has specified the four societies it aims for as its “better future” and has outlined what it should do to realize this and the value it will provide.

Identifying materiality

DNP holds opinion exchanges with relevant internal divisions, external experts and outside directors. We identify DNP’s materiality after discussion with and approval by the Sustainability Committee, Management Committee and Board of Directors.

Business Activities Based on Materiality

As business activities based on materiality, we are promoting cross-company new value creation, primarily in our focus business areas, through the evolution and cultivation of the strengths of DNP’s unique Printing & Information (P&I). Concurrently, we are strengthening our business base and thoroughly managing risks as we minimize negative impacts from the dual perspectives of increasing corporate value and strengthening business competitiveness.

Identifying risks and opportunities

DNP believes that a healthy society and economy, as well as comfortable and well-being lives for people, can only be sustained on a sustainable earth. In recent years, rapid environmental, social and economic changes have created diverse management challenges. DNP recognizes the importance of accurately identifying these factors, evaluating associated risks, and incorporating them into medium- to long-term management strategies. By anticipating change and driving transformation, DNP seeks to turn risks into business opportunities, thereby advancing both corporate sustainability and the sustainability of society as a whole.

This chart categorizes the impact of three variables—economic, social, and environmental—on the DNP Group's business activities, categorizing them into risks and opportunities. Economic variables include technology trends such as digital transformation, AI, and security, and economic activity-related variables such as globalization, geopolitical risks, and legal regulations. These variables present risks such as cyberattacks and supply chain disruptions, as well as opportunities such as improving business efficiency and creating new markets. Social variables include human capital-related variables such as demographics, securing talent, and human rights awareness, and value chain-related variables such as culture, systems, and ethics. These variables present risks such as delays in securing and developing talent and human rights issues, as well as opportunities such as optimally allocating talent and strengthening trust. Environmental variables include climate change, resources, and environmental regulations, presenting risks from natural disasters and delayed environmental responses, as well as opportunities such as increased demand for environmentally friendly products and services.

Identifying materiality

In March 2024, DNP identified its materiality̶priority issues to be addressed̶as key challenges for realizing the four interrelated societies that it envisions as a “better future.”
Based on this materiality, DNP has defined priority areas for value creation in its business activities from a global and long-term perspective.
To achieve both enhanced corporate value and strengthened competitiveness, DNP also focuses on strengthening its business base and thorough risk management, aiming to minimize potential negative impacts.

This diagram explains the relationship between DNP's "four societies" and their materiality, and its business activities. Based on materiality, DNP has established priority items for value creation as key issues in its business activities. In applying these priorities to its business activities, it has established three areas of activity: value creation, strengthening business base, and thorough risk management. Value creation covers six related businesses, including information security, photo imaging, mobility, industrial high-performance materials, digital interfaces, and semiconductors. Strengthening its management foundation covers human capital, intellectual capital, and the environment. Thorough risk management covers seven key themes, including fair operating practices, human rights and labor.