Materiality

As part of activities observing its 200th anniversary, the TODA KOGYO Group has identified its material issues.
In conjunction with our newly defined purpose, we will aim to achieve sustainability at the corporate, societal and global environmental level through the integrated management of our Management Principle, Management Policy, Medium-term Business Plan, materiality, metrics and targets.

The Structure of Materiality

The ten material issues we have identified are consistent with the four management policy items designed to achieve our management principle. The material issues of TODA KOGYO serve not only to mitigate the risks of our business activities but also as metrics of medium- to long-term management and human resource strategy, and also function as a guidepost for the daily decision-making of all employees.

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Management Policy(Our Vision)		Material Issues	Value We Bring to Society
We will establish the business foundations of a manufacturer that will continue to develop beyond its centenary and will bring benefits to society.	We will refine our unique technologies to consistently offer high value-added products and solutions.	Product Innovation Process Innovation Value-centric Marketing	Contributing to future society through innovative fine particle synthesis technologies
	We will become indispensable to the world to increase the corporate value of the Group.	Stable Supply Climate Change Financial Base	Building a sustainable supply chain
	We will seek the happiness of employees and their families and aspire to be trusted by stakeholders at all times.	DE＆I Personnel Development Governance Information Management	Being a better corporate citizen and a better social institution

Material Issue Formulation Process

The process for identifying material issues was in accordance with the GRI Standards (GRI 3: Material Items 2021), a set of international guidelines. In considering these items we not only took risks into account, but also feedback from stakeholders and the Group's management strategies.

Step 1: Understanding the Internal and External Environments

Based on reports issued by international organizations, the Japanese government and various governmental agencies, the representatives of each division verified the external environment in which the Group lies with regard to global trends and changes to the social environment. Next, they reviewed the values of the Group, its business activities, and its relationships with stakeholders.

Step 2: Identifying Impacts

We considered risks that have materialized and potential risks from a medium- and long-term perspective. We organized the risk items according to our interests, categorizing them as either "impacts from external sources" or "impacts on external sources." Moreover, in addition to negative impacts such as risks, we considered positive impacts such as customer expectations, and the Group's unique ability to provide chemical materials.

Step 3: Assessing the Effects of the Impacts

We gauged the scale, extent and difficulty of responding to the effects of each impact, and prioritized them. In the process of prioritizing the impacts, we identified those impacts that were material in terms of both "impacts from external sources" and "impacts on external sources," thus identifying them as material items. To enhance effectiveness through management of the PDCA cycle, we set specific initiatives, metrics and targets for the identified material items.

Step 4: Approval of the Board of Directors

After verifying their consistency with the values and management strategies of the TODA KOGYO Group in the Management Conference, the material issues were finalized upon receiving approval of the Board of Directors.

The 10 Material Issues and Grounds for Identification

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Material Issues	Grounds for Identification
Product Innovation	We regard innovation itself as a solution to social issues and a source of corporate growth, and believe that it is the Group's mission to maximize the potential of fine particles and support the development of society with the materials we provide.
Process Innovation	We regarding environmentally friendly manufacturing methods as a source of corporate competitiveness, and believe it is important to continue to refine fine particle synthesis technologies as a core competence of the Group.
Value-centric Marketing	We regard solving customer issues and supporting customer innovation as the source of business creation, and believe it is important to seek out business opportunities in the global market.
Stable Supply	We believe it is important to enhance reliability in terms of safety, quality and logistics to ensure that all interested parties including suppliers, customers and end users can use the products of the Group with peace of mind.
Climate Change	Achieving a low-carbon society is seen as one of the most important issues worldwide, and as a corporate group in an energy-intensive industry, we believe that working to reduce CO2 emissions is an important responsibility.
Financial Base	To earn the trust of all stakeholders in an environment of volatility, uncertainty, complexity and ambiguity (VUCA), we believe it is essential to ensure sustainable revenue and maintain sound financial capital.
DE＆I	We see the diversity of human capital, including personnel who forge connections between people, discover various issues and lead the way to solving them, as a source of innovation, and believe that this diversity should be tackled with the highest priority in the management of the Group.
Personnel Development	As a company founded on technology, we believe it is essential to develop by carrying on existing technologies and principles while simultaneously incorporating new methods and concepts, and having each person continually change by putting those technologies, principles, methods and concepts into practice.
Governance	In addition to observing global rules and compliance requirements, we believe it is important to be introspective regarding our own activities through dialogue with stakeholders, which leads to high-quality decision making.
Information Management	As a Group doing business with customer and suppliers around the world, we believe that developing high-quality information infrastructure and ensuring information security is essential.