EBARA Group's Material ESG Issues
The EBARA Group’s Views on Materiality
Since its founding, the EBARA Group has continued to provide products and services for water and energy supply and other elements of the social and industrial infrastructure that are crucial to our daily lives. Over the years, we have grown our business while improving our corporate value by catering to contemporary social needs and addressing social issues through our business activities. To guide the Group’s quest to continue growing with society and improving corporate value, we have identified eight environmental, social, and governance (ESG) issues material to our sustainable development and determined six action policies for initiatives pertaining to these issues. In addition, we have set key performance indicators (KPIs) to monitor and confirm the progress of these policies.
Process for Identifying Material ESG Issues
The EBARA Group has taken steps to clarify how it will create value for the environment and society through its business and the explicit and implicit risks present in its business activities. We decided to identify ESG issues material to our business in order to shape initiatives addressing value creation and risk concerns that are of particular importance. We identified these issues through the four-step process indicated below, with input from the CSR Committee *1.
|*1||The committee membership comprises the president, who serves as chairman, all executive officers, and outside attorneys, and meets four times annually. Outside directors also attend committee meetings to offer their objective opinions.|
Step 1: Selection of candidate material ESG issues
More than 100 candidate issues were selected while considering social issues that represent growth opportunities or risks for the EBARA Group based on its business goals and values. In this process, we referenced a range of global guidelines, such as the standards put forth by the Global Reporting Initiative and the Sustainability Accounting Standards Board, as well as ISO 26000, the United Nations Sustainable Development Goals (SDGs), and others.
Step 2: Identification of eight material ESG issues
We then looked at each candidate issue identified in Step 1 and evaluated the relative level of importance to stakeholders using the evaluation criteria of several external rating institutions as a reference point and their degree of relevance to EBARA’s business. We thus identified eight material ESG issues with very high importance to stakeholders that are also highly relevant to the Company’s business.
Step 3: Establishment of material ESG issues, action policies, and KPIs
Six action policies were established to guide comprehensive, companywide efforts to address the eight identified material issues along with targets and KPIs to confirm our progress in implementing these policies.
Step 4: Verification of material ESG issues, action policies, and KPIs
When identifying the material ESG issues, these issues were discussed at several CSR Committee meeting while incorporating the opinions of outside directors and external experts. As the final step in the identification process, the Board of Directors verified the appropriateness of the material ESG issues, action policies, and KPIs.
Ongoing Initiatives for Addressing Material ESG Issues
In order to address the material ESG issues, initiatives aimed at accomplishing KPI targets will be advanced by businesses and Company divisions and the progress of these initiatives will be reported to the CSR Committee. Based on these reports, we will periodically revise the action policies and KPIs and reflect these revisions in business activities in order to ensure the effectiveness of our initiatives. Going forward, we will cyclically enact and continue to improve and revise our processes and initiatives for responding to material ESG issues.
Eight Material Issues and Six Action Policies
The eight material ESG issues each correlate to different wide-scale environmental, social, and governance concerns, and the six action policies tackle these eight issues in a comprehensive manner. By implementing these action policies, we will endeavor to improve our corporate value.
Relationship between Action Policies and the SDGs
During the process of identifying the candidate material ESG issues, we referenced the United Nations SDGs, a set of shared global targets. We were therefore able to discuss just how EBARA’s business will contribute to the accomplishment of the SDGs during the identification process. After establishing the six action policies for guiding initiatives to comprehensively address our material ESG issues, we then examined and judged the degree to which these policies were relevant to the 17 SDGs and their 169 targets.