Sustainable Management
Background to Sustainable Business Strategy
In 2022, we established the Sustainable Business Strategy. For many years, our CSR Charter had served as a basic set of principles guiding our efforts to fulfill our corporate social responsibility (CSR). However, we decided to reformulate the charter as a sustainable business strategy that would bridge our long-term vision (the overarching concept) with our policy on stakeholder engagement (a subconcept).
Sustainable Business Strategy
To build a self-directed, collaborative society, we will present a tomorrow you can’t wait for and lead the way in sustainable business practices.
To balance social value and economic value, we will address social and environmental challenges and offer inspiration in work, learning, and living.
Organizational infrastructure for sustainability
Previously, the Environment Committee led efforts to address environmental issues and monitor social trends and issues. However, in 2022, the committee was consolidated into the new Sustainability Committee as part of a shift to a new organizational framework for sustainability. Under the present framework, we have publicly committed to accomplishing the goals for our upgraded set of material issues, and senior management (executives and board members) have taken on the leading role in integrating sustainability through a PDCA cycle. The Sustainability Committee is chaired by the Managing Officer of CSV Division, and it consists of four subcommittees: the Environment Subcommittee (what once was the Environment Committee), Wellbeing Subcommittee, Procurement Subcommittee, and Forest-Type Management Model Subcommittee.
Learn about our risk management.
The decision-making process in our sustainability strategy
Decision-making Process for Material Issues
In FY2022, we updated our material issues. We had identified a set of material issues back in FY2020 based on a standard materiality analysis. However, we subsequently decided to conduct a more thorough materiality analysis so that our material issues would align with the kind of society we envisage: a self-directed, collaborative society. For the FY2022 materiality analysis, we performed a gap analysis. Specifically, we reassessed the current societal impacts of our two strategic business domains defined in our long-term vision (CCC 2030) and third medium-term plan (Field Expansion 2024). We then back-casted from the 2030 society we envisage to determine the gap between current impacts and desired impacts. With this information, we identified issues that we need to proactively address. We divided these issues into economic and social categories.
Learn about the decision-making process we followed before 2022.
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Step 1: Identify issues
The process of updating the material issues began with a review of the existing issues we had defined in 2020. In that review, we thought about the strategic issues we will need to address if we are to lead the way toward a self-directed, collaborative society* and become a company in which no idea goes to waste. Through the review, we sought to identify a new set of material issues.
A self-directed, collaborative society is a society that respects personal values and cherishes social bonds. In this society, horizontal connections between people, tools, and environments provide new opportunities to collaborate for a better world.
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Step 2: Divide issues into economic and social categories
In light of the findings of the review conducted in 1 and the strategic themes outlined in the medium-term plan, we identified specific issues to make up for the inadequate elements in the previous materiality analysis. We divided these issues into economic and social categories and then plotted these issues onto the graph shown on the right.
SC: supply chain
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Step 3: Reconceptualize materiality
Previously, we had conceptualized material issues as issues that were important to the SDG agenda. In this step, we reconceptualized them as issues that are important to our strategic agenda for creating the ideal society we envisage. We then created organizational infrastructure aligned with this new conception. For the reconceptualized material issues, we set key performance indicators (KPIs) aligned with our vision for 2030.
Learn about these KPIs here.
KPI(Key Performance Indicator)
Material Issues Outcome
Improve wellbeing
Innovation is created, leading to better wellbeing among diverse individuals and communities
Expand business fields through
the Forest-Like
Management ModelCollaborative approach in all businesses contributes positively to the environment and society,
extending empathy outward in society and addressing social issuesRespond to
the climate crisisFind out more
Contribute toward
a circular economyFind out more
Contribute toward
a society that
coexists with natureFind out more
Safeguard the planet as
a place for work and life- Our collaboration with partners contributes toward carbon neutrality throughout our supply chain
- Our collaboration with partners and customers leads the way toward a zero-waste society by reducing, reusing, and recycling
- We safeguard the planet by balancing business activities with natural capital
2021 onward
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Step 4: Final review of material issues by Sustainability Committee
The Sustainability Committee, chaired by the Managing Officer of CSV Division, will conduct a review and make the final decision on the material issues. Under the framework provided in Japan’s Guidance for Collaborative Value Creation, we will engage with investors and incorporate their feedback. We will iteratively update the material issues to reflect changes in the social and economic landscape.
Return to step 1
