Integrated Report 2025Formulating new material issues linked to management plans

In FY2024, the artience Group reviewed its Group Materiality (material issues) for the first time in seven years.

To review our material issues, we held a group-wide workshop in October 2024. Department heads from the corporate planning, production, sales, and engineering departments were invited to share their opinions and suggestions. During the discussions, many teams expressed awareness of the importance of coexisting with society, which was particularly impressive since it reflects the values of our Brand Promise. We also interviewed experts in finance, diversity, equity, and inclusion (DE&I,) and the environment, and reflected their insights in the formulation of our Group Materiality.

To increase effectiveness, quantitative indicators have been established for each material issue wherever possible. For issues that are difficult to quantify, we try to use expressions that each responsible employee can easily understand, even if they are qualitative. We also emphasize the importance of internal instillment, so that everyone can understand and relate to the material issues. Currently, around two-thirds of our Group employees are overseas personnel. At the Global Management Forum (GMF,) which is held twice a year and attended by executives from overseas bases, simultaneous interpretation is provided in English and Chinese. We are also focusing on communication with regard to sustainability. We also feel that it is crucial to reflect the opinions of employees working at overseas locations, and are currently developing a system to do so.

Human capital — one of the pillars of the new Group Materiality — was a key point in this review. Building on our previous Group Materiality, which focused on coexistence and co-prosperity with the supply chain, as well as employee happiness and motivation, we have revised our material issues from a human perspective. This clearly demonstrates our commitment to valuing everyone involved in the Group’s business activities.

I have been the manager of a manufacturing plant for a long time, but I still feel that there are many issues to be addressed in the workplace. Driving automation and labor saving, creating a safe and secure working environment, and improving productivity through DX are all issues that require immediate action.

There are also many other elements that have been incorporated into this revision. We have incorporated environmental items that are still insufficient, such as resource recycling, water management, and Scope 4 emissions, as well as themes that we want to develop further, such as DX and fostering a culture of co-creation.

There are many challenges involved in promoting sustainability that are difficult for the Company to tackle alone. As a chemical manufacturer, our company has always contributed to society by supporting customers’ businesses and services from behind the scenes. With a history spanning 129 years since our founding, we will continue moving forward toward our goals by cherishing the relationships we have built with our customers, business partners, local communities, and other stakeholders, while at the same time seeking to collaborate with new partners.