Integrated Report 2026: Creating Management Value through Materiality Practice
Published on June 30, 2026
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Looking Back on the First Year of New Materiality Management
Yoshimoto Nakajima
Our group positions sustainability as a foundation linked to management. Based on this philosophy, during the management plan artience 2027/2030 "GROWTH" period, we aim to promote "creating management value" that integrates our core missions of "creating value through business and providing it to customers" with "creating value through sustainability activities and contributing to the improvement of social sustainability." In February 2025, we redefined materiality.
Currently, although various headwinds are emerging regarding ESG, our group does not intend to significantly change the direction of materiality we have summarized so far. Instead, we aim to accurately grasp societal needs, improve their accuracy, and link them to growth strategies to achieve highly effective sustainability.
Furthermore, materiality is not something that is defined once and then stops; rather, it is something that is continuously reviewed and verified as societal demands rise year by year, taking into account business progress and environmental changes. One of the most significant market demands is stakeholder confirmation regarding changes in business structures, including those related to EVs. Since sustainability is integrated with business, we believe it is natural that sustainability initiatives will evolve as soon as the business structure changes.
In fiscal year 2025, the first year of our New Materiality Operations, we keenly felt that the theme of "providing 'value that resonates with the senses' through products and services to contribute to future sustainability" has made it a crucial condition for manufacturers to survive. Focusing on strategic priority business groups, we have set materiality goals such as expanding the lineup of sustainability-contributing products and increasing sales, and this is a top priority in investment decisions. In that sense, we recognize that reviewing materiality led to a year in which the integration of sustainability and management progressed even further.
Aiming to create 'value that resonates with the senses' through the promotion of materiality
I believe that when practicing materiality, it is necessary to always confirm that sustainability and management are inseparable when making decisions. Although I have only just taken up the official role in sustainability, I have been involved in sustainability through business operations at manufacturing sites. Through experience in sales and market engagement, I have come to personally understand what kind of sustainability the market seeks through dialogues with customers and business owners.
Evaluating ESG impact is essential in investment decisions, ensuring alignment with business strategy and firmly integrating it into the decision-making process. Our company is engaged in sustainability initiatives across many product areas, but the expression and communication are insufficient, and we believe further efforts are needed to make communication more understandable.
Currently, we are reviewing the progress and providing feedback on materiality, but we believe the challenge is how to identify risks and opportunities in line with our strategy and how to integrate them into the next medium-term management plan.
It is my responsibility as a sustainability officer to always maintain a sustainability perspective in management decisions, and how to define this perspective is a key challenge. Furthermore, in the "Creation of value that resonates with the senses" outlined in Brand Promise, what we want to focus on is personnel with a hands-on manufacturing mindset. Through the practice of materiality, we aim to improve the accuracy of on-site decision-making alongside management decisions, and in the process, foster on-site talent who possess both sustainability and management perspectives, thereby building an organization that directly connects to management value.
Our core value lies in leveraging our unique strengths in the fusion of our company name, ART, and science, and we believe that through 'creating value that resonates with the senses,' we can contribute to solving social issues.
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