Integrated Report 2025 Formulation of new materiality linked to the Management Plan

In fiscal 2024, artience group reviewed the Group's materiality for the first time in seven years.

In October 2024, we held a Group-wide workshop to gather opinions and suggestions from the heads of the Corporate Planning, Production, Sales, and Technology Divisions. During the discussions, many of the teams showed their awareness of "coexistence with society," which was particularly impressive as a value that is also common to Brand Promise. We also conduct interviews with experts in the fields of finance, DE&I, and the environment, and reflect their knowledge in formulating the plan.

In order to increase effectiveness, we have established quantitative indicators for each material issue as much as possible. For issues that are difficult to quantify, we are conscious of expressions that are easy to convey to each and every employee who is the main body of the initiative, even if they are qualitative. We also place importance on instilling information within the company so that everyone can see it as their own matter. In particular, about two-thirds of the Group's employees are currently overseas. At the Global Management Forum (GMF), which is held twice a year for executives from overseas bases, we have introduced simultaneous interpretation in English and Chinese, and we are also focusing on disseminating information about sustainability. In addition, we feel that it is essential to reflect the voices of employees working at overseas bases, and we are currently working to create a system for this.

Human capital, one of the pillars of the new Group materiality, was an important point in this review. From the previous report, which focused on coexistence and co-prosperity with the supply chain and the happiness and job satisfaction of employees, we have reorganized the policy from the perspective of "people" and clarified our stance of valuing all people involved in the Group's corporate activities.

I have been in charge of a factory for a long time, but I feel that there are still many issues related to workplace creation at the site. The promotion of automation and labor-saving, the creation of a safe and secure work environment, and the improvement of productivity through DX are all issues that require immediate action.

There are many other elements that have been incorporated in this review. We have incorporated environment-related items such as resource recycling, water management, and Scope 4, which are still not sufficient, as well as themes that we would like to further develop, such as DX promotion and a culture of co-creation.

In promoting sustainability, there are many issues that are difficult for us to tackle on our own. Originally, as a chemical manufacturer, we supported our customers' businesses and services and contributed to society. Based on our 129-year history since our founding, we value the relationships we have cultivated with diverse stakeholders such as customers, business partners, and local communities, and move forward to achieve our goals, including co-creation with new partners.