The Role of Materialities in Sustainability
The ID Group has identified the following issues as materialities. These materialities are defined as the variety of issues confronted in modern society that are evaluated through the lens of business and found to be vital and high-priority for the growth of society and the Group.
The materialities of the ID Group are the following:
- Advances in DX
- Acceleration of diversity
- Intensifying demands for privacy
- Growing seriousness of threats of cyberattacks
- Advance of climate change
- Intensifying demands for zero carbon
Procedure for formulating materialities
The ID Group uses the following procedure to formulate materialities.
- Extraction of important items
- Classification of extracted issues
- Evaluation of importance (mapping of extracted important issues)
- Evaluation of appropriateness
- Identification of materialities
The ID Group evaluates the risks and opportunities to itself based on social issues and megatrends surrounding sustainability and extracts important items for examination.
The Group classifies the extracted issues with reference to the corporate philosophy, policy and strategy, as well as to international guidelines such as ISO 26000.
To evaluate the degree of impact of each extracted important issue, a “materiality map” is prepared that plots the important issues requiring consideration along two axes: importance to society and importance to the ID Group. The issues are then assessed using a reference index called a risk assessment evaluation index.
Through deliberation by the Sustainability Committee, the ID Group evaluates the appropriateness of each important issue as an issue for the Group to address.
Taking the deliberations of the Board of Directors into consideration, the ID Group identifies as Group materials the six items that rank highest along the two axes of the materiality map.
By solving materialities through its business activities, the ID Group will strive to create environmental, social and economic value.