Materiality identification process

Process

Step1

Identifying candidate material issues

Selecting candidate issues based on reporting guidelines from SASB, etc. and sector-specific material issues of the TOKAI Group's main businesses that are deemed important by MSCI and other major ESG research companies, by attaching importance to ESG investors’ perspective and in light of regional characteristics and industry trends.

Nest Step

Step2

Evaluating the candidate issues based on corporate value and stakeholders' perspective

Evaluating items identified in Step 1 from the two perspectives of the impact on the Group's medium- to long-term corporate value and the impact that the Group gives on society

Nest Step

Step3

Creating a materiality map

Creating a scatter plot (materiality map) based on evaluations made in Step 2. Positioning items in the range with the highest level of materiality as top priority ESG issues.

Nest Step

Step4

Identifying material issues

Moving forward, the material issues will be reviewed on a regular basis in consideration of changes in industry trends and new ESG issues, after the Board of Directors' resolutions.