SustainabilityMateriality
The Daicel Group identified its materiality in FY2021/3 as key sustainability issues toward achieving the Accelerate 2025 Mid-Term Management Strategy. We will carry out the CAPD cycle* according to this materiality and contribute to realizing a sustainable society in the Daicel way.
* Instead of a Plan, Do, Check, and Act (PDCA) cycle, the most widely known approach to continuous improvement, Daicel Group has adopted a CAPD improvement cycle to avoid the risk of overlooking crucial facts and realities that often lie hidden in the initial planning stage.
Background and Approach to Identifying Our Materiality
The Daicel Group’s materiality consists of two main categories.
For "materiality aimed at achieving growth of the Daicel Group and value co-creation," our aim is to leverage the strengths of the Group to address the SDGs and other social issues and actively create value in line with the "Product, Process, and People" concept in our Sustainable Management Policy.
For "materiality related to the foundations of the Daicel Group’s continuity and governance," we established respective considerations of prime importance for value creation, including safety, quality, and compliance, for E (environment), S (society), and G (governance).
Process of Identifying Materiality
STEP1Extract social issues
We referenced international guidelines, SDGs, the principles of the United Nations Global Compact and guidelines published by industry organizations to extract social issues that Daicel Group should address.
STEP2Prioritize
We assessed items extracted in Step 1 by giving consideration to the following aspects to identify key themes with high priority by plotting them on the materiality map according to “Importance to stakeholders” and “Importance to the Daicel Group.” We then sorted them into the two categories of “Growth of the Daicel Group and value co-creation” and “Foundations of the Daicel Group’s continuity and governance.”
- Consistency with the Long-Term Vision and Mid-Term Management Strategy
- Consistency with related policies such as the Sustainable Management Policy, the Daicel Group Code of Conduct, and the Ethical Standards of Daicel Group
- Consolidation of opinions from relevant departments
Materiality Map
STEP3Confirm validity
The Corporate Sustainability and other relevant divisions discussed the validity of important themes identified through Steps 1 and 2. The results were reported and approved at the Management Meetings and subsequently endorsed by the Board of Directors.
STEP4Formulate materiality and KPIs
By going through Steps 1 to 3, we identified 15 material issues. We designate a key performance indicator (KPI) and target for each. We will review our materiality, KPIs and targets in response to future changes in society and our business.
Monitoring Materiality
The progress toward identified materiality is regularly monitored by the Sustainable Management Committee via evaluation of the KPIs and targets set as well as with supervision from the Board of Directors.