Materiality (Important Issues)
Materiality means issues that a company should focus on, identified from a wide range of CSR activities. While the Lintec Group identified its materiality in 2014, what stakeholders expect from the company has changed significantly since then. In response to this change, the Lintec Group has been in the process of reviewing its materiality and is currently at STEP 2 in the figure to the right. The SDGs*1 point of view will be incorporated into the new materiality, and key performance indicators (KPIs)*2 will be updated at the same time.
- *1 SDGs: SDGs stands for Sustainable Development Goals, comprising 17 goals and 169 targets. They were adopted by the United Nations in September 2015.
- *2 Key performance indicators (KPIs): KPIs are important indicators related to organizational strategies, and quantitatively measure progress toward targets.
Process of reviewing materiality
Identify social demands
We identified and narrowed down important ESG*3 topics based on changes in various international guidelines and frameworks, such as the SDGs, GRI Standards, the United Nations Global Compact, and ISO 26000, as well as on information from ESG rating agencies.
We discuss hypotheses with internal organizations, such as R&D and the New Project Planning Office, and determine the importance.
Identify key initiatives
Based on the results of STEPs 1 and 2, we identify key initiatives, and have them evaluated by and obtain the approval of the president, the final decision maker.
Set KPIs again
Based on the identified materiality, we set performance indicators for our activities and proceed with implementation.
- *ESG: ESG collectively refers to the following three elements: environmental, social, and governance. It is used as an index to judge whether a company can achieve sustainable growth.
Goals and results of CSR activities by theme
- *1 LCA (Life Cycle Assessment): A method for comprehensively assessing effects on the environment by calculating items such as the amount of energy and water input, the amount of raw materials used, and the amount of CO2 and hazardous chemical substances emitted throughout a product's lifecycle.
- *2 Human rights due diligence: A process exercised by an organization not only to comply with laws but also to address and reduce the risk of human rights violations (ISO 26000 6.3.3. Human Rights Issue 1).
- *3 VOCs: VOCs stands for volatile organic compounds. VOCs collectively refers to organic compounds that become gas in the atmosphere.