Materiality

Sanyo responds to the demands of the fashion industry for addressing social issues and stakeholders' expectations.
We have identified materiality among a wide range of issues, including climate change and resource recycling.
In addition, we will monitor progress by setting concrete action plans and KPI (quantitative targets).

Identification of Materiality

In identifying materiality, we first listed a wide range of issues, reflecting international guidelines and requests from stakeholders.
We then assessed ESG issues identified through a survey of our managers from two perspectives:
the level of importance to stakeholders and the level of importance to the business.

The Sustainability Committee verifies the validity of the evaluation process and the evaluation results for these materialities,
The Executive Committee has identified important environmental and social issues that need to be addressed as a priority.

Process for identifying materiality

Step 1

Identifying ESG issues

Referring to international frameworks such as GRI Standards, SASB Standards, ISO26000, and the 10 Principles of the United Nations Global Compact, we identify issues that are highly relevant to us from a wide range of ESG issues.

Step 2

Prioritizing Issues from Stakeholder Perspective

Based on the examples of our sustainability activities and benchmark companies, we selected priority issues at the Sustainability Committee based on a survey of 119 managers and the results of dialogues at SR meetings.

Step 3

Identification of Materiality by Management

Identifying material materiality related to our business at the Executive Committee

Step 4

Activity planning and KPI setting

Set specific sustainability promotion activities and KPI as medium-term targets in line with the identified materiality

Activity Planning and KPI

We discussed the ideal state of our company in 2030, and reviewed the sustainability activities
we have been conducting so far in response to the four materialities identified in our medium-term vision.

We will reestablish a KPI that will enable us to confirm the progress of our initiatives for materiality and monitor our performance.
The Sustainability Committee verifies and checks the results and discloses them on the corporate website.

Contribution to a sustainable global environment

Activity Plan KPIs FY2023
Results
Reduction of GHG emissions
  • (1) Scopes 1 & 2: 50% reduction
    Scope 3: 30% reduction
    * Compared to FY2019 (FY2030)
  • (2) Scopes 1 & 2: Net zero
    (FY2050)
  • Scopes 1 & 2: 26% reduction
  • Scope 3: 38% reduction

* Compared to FY2019

* Estimated figures

Reduction of plastic use
  • (1) Switch to 100% use ofenvironmental friendly materials in paper shopping bags
    (FY2030)
  • (2) Eliminate all plastic rain covers
    (FY2030)
  • (1) 96.8%
  • (2) 639kg
Manufacturing products using environmentally friendly materials Usage rate of environmental friendly materials in total production volume: 30%
(FY2030)
19.4%

Efforts toward a circular economy

Activity Plan KPIs FY2023
Results
Green logistics Material recycling rate of plastic packaging for hanger covers and cut-and-sew knitwears: 50%
(FY2030)
11.5%

Further promotion of CSR procurement

Activity Plan KPIs FY2023
Results
CSR procurement CSR factory audits Ratio of rank-A factories: At least 90%
(FY2030)
84.9%

Creating a rewarding workplace that respects diversity

Activity Plan KPIs FY2023
Results
Development of Human Resources who will create the future Ratio of new graduate general-track employees reaching the age of 30 and working in two or more job titles and two or more brands: 100%
(FY2027)
66.7%
Ratio of new graduate general-track employees reaching the age of 40 and working in three or more job titles and two or more brands: 100%
(FY2027)
100%
Number of new graduate career-track employees aged 35 or younger with back-office department experience: 5 or more
(FY2027)
2 people
Number of IT training participants/participation rate: 100%
(FY2027)
Training not implemented
Establishment of a personnel infrastructure to provide job satisfaction Ratio of women in manageria positions: 20%
(FY2026)
9.4%
Gender wage gap: 72%
(FY2026 / ratio of women when men=1 /all job types*)
  • all job types:Main career track, Specialists, General employees, and Full-time sales staff
68.9%
Ratio of men taking childcare leave: 100%
(FY2026)
Men: 25.0%
(Women: 100%)
Foreign employment rate: 3%
(FY2027)
0.96%
Employee engagement score: 55.0
(FY2027)
50.8
Number of employees in their 20s and 30s (total of new graduate hires and mid-career hires) : 20 people/year
(FY2027)
17 people
3-year retention rate for new graduates: 85% or higher
(FY2027)
80.0%
Employee health management Regular health checkup rate: 95%
(FY2026)
93.0%

* Estimated figures

Stress check participation rate: 95%
(FY2026)
92.7%