Material Issue

T-Gaia has set a mid- to long-term aspiration of “Creating a better future for our customers and contributing to society through 'the desire to connect'”. We have named the five key issues that we must address in order to realize this ideal “TG Material Issues”.

The TG Material Issues, which was first identified in 2021, was reviewed in light of changes in the external environment, and some of its contents were revised in April 2024. We have also set KPIs for each of the TG Materiality items. We will continue to regularly observe the progress of KPIs and make improvements. In addition, we are organizing the relationship between each item and the SDGs, and we will make company-wide efforts to ensure that the resolution of TG Material Issues will also lead to the achievement of the SDGs.

TG Material Issues

TG Material Issues Sub-categories KPIs SDG Action Items
1
Creating shared value as a member of local communities
Coexistence with local communities through business Number of social Innovationbusiness projects
Raise customer satisfaction and provide inspiring experiences NPS (customer loyalty index)
Create a digital society where no one is left behind Number of store customers, number of remote customer contacts, number of e-caravans held (number of participants), number of smartphone classes held (number of participants), etc.
2
Sustainably developing through collaboration with business partners
Build sustainable supply chains CSR survey response rate
Strengthen relationships with business partners Number of services provided per company, number of new clients acquired
Create enriching lifestyles through the use of digital technologies DX promotion index score, ratio of digital investment amount to new sales
3
Respecting diversity and pursuing job satisfaction
Build a human resource portfolio linked to business strategies Number of employees hired (recent graduates and mid-career), training time and expenditures, number of digital human resources hired
Implement DEIB Acquisition of external evaluations, percentage of managers who are women, percentage of men who take childcare leave, gender pay disparity, percentage of workforce who are have disabilities
Promote engagement Engagement score, employee retention rate, paid leave utilization rate, average duration of employment
4
Proactive approach toenvironmental issues andclimate change
Reduce greenhouse gas emissions Scope 1 and 2 greenhouse gas emissions reduction rates (compared to FY 2019), percentage of electricity used derived from renewable energy
Promote Renewable Energy Business Renewable energy capacity
Provide support in the event of a disaster using our network Examples of support during emergencies (qualitative)
5
Enhancing corporate governance
Rigorous compliance Compliance training participation rate (number), number of serious compliance violations
Maintain and advance governance Board of Directors self-evaluation (qualitative), contribution to autonomy of Group companies and sustainable growth (qualitative)
Enhance information disclosure Disclosure of various KPI, active disclosures in English (qualitative)

Identification Process

TG Material Issues is identified by analyzing our company's risks and opportunities in relation to the external environment and multiplying them by the level of importance in our company.

*Includes issues related to Group companies.

Step 1 Identification of social issues

Based on materials from think tanks and other sources, we discussed social changes envisioned for the next 10 years and identified social issues.

Step 2 Identification of issues to be addressed by the Company

Based on Step 1, we discussed the risks and opportunities for the Company in relation to each social issue and social change.

Step3 Discussion of key issues to be prioritized

Based on Step 2, we discussed the important issues that should be prioritized from among the many social issues and changes in society. We discussed materiality KPIs as indicators of progress toward resolving these important issues. We also confirmed the consistency of the materiality KPIs with various existing philosophies, including the corporate philosophy.

Step 4: Determination of Material Issues

Based on Step 3, after discussion at the Sustainability Committee, the appropriateness of material issues and KPIs were confirmed and decided by the Management Conference and the Board of Directors.

Step5 Check and review progress

The progress of materiality KPIs is regularly observed and improved.

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