Process for Identifying Materiality
To realize the four societies that DNP aims for as a "better future," it identifies material issues from a double materiality perspective (both impact on society and the environment, and impact on corporate value), taking into account changes in the economy, society, and environment, as well as the expectations of stakeholders.
Analysis of the external environment and business environment
- Understanding international frameworks and trends
- Analysis of social issues and megatrends
- Understanding stakeholders' expectations and concerns
- Analysis of DNP's business environment
Related stakeholders
Employees, local communities, business partners,
shareholders/institutional investors,
education/research institutions, NPOs/NGOs, various organizations, etc.
International frameworks considered
SDGs, GRI Standards, SASB Standards,
United Nations Global Compact, TCFD, TNFD,
UN Guiding Principles on Business and Human Rights, etc.
Identifying the factors causing fluctuations
We are identifying the factors that influence the DNP Group's business operations.
Identifying risks and opportunities
From a medium- to long-term perspective, we broadly identify the negative impacts (risks) and opportunities brought about by fluctuating factors.
Identifying material issues (determining key issues)
Based on the impact on society and the environment, as well as the expectations of stakeholders, we identify material issues based on a double materiality framework.
Importance assessment (matrix assessment)
DNP conducts materiality assessments of risks and opportunities that may affect its business from perspectives such as "magnitude of financial impact (over 10 billion yen, over 1 billion yen, under 1 billion yen/year)", "timing of occurrence (5-10 years, within 5 years, materialization)", "likelihood of occurrence (high, medium, low)", and "degree of social and environmental impact (high, medium, low)". The assessment results are deliberated by Sustainability Committee, and items with a particularly large impact on management are identified as "significant risks and opportunities".
Approval and Disclosure
Decisions are made after approval by Management Committee and Board of Directors, and then disclosed to stakeholders.
Implementation and progress management of business activities
Based on materiality, key risks, and opportunities, we drive value creation aligned with our strategies and objectives, and continuously monitor progress.