Materiality and Goals

Identifying materiality

In order to promote efforts to resolve priority sustainability issues, we have identified five material issues from the perspective of ESG/SDGs as issues that should be prioritized through our business activities. By promoting efforts for each material issue, we aim to improve corporate value and achieve sustainable growth.

Materiality Identification Process

Step 1:Identifying social issues: The Sustainability Committee will analyze global social issues and ESG trends and identify issues, referring to various guidelines and standards such as the SDGs and GRI standards.

Step 2Narrowing down important issues

The identified issues are discussed among management, including outside directors, to determine materiality.

Points of emphasis

Will it contribute to the realization of a well-being society and contribute to the development of our company and society?
What is the extent of the impact on our business, including its alignment with our growth strategy?
Are these ESG measures worth strengthening and will contribute to increasing our corporate value?

Step 3:Evaluate validity and identify materiality: As a result of STEP 2, the identified materiality issues are finally identified by the Sustainability Committee and approved by the Management Meeting.

Roh Group Materiality Matrix

most importantimportant

*If the right edge of the table is cut off, please scroll horizontally to check.

Impact on stakeholders

Respect for human rights Improving employee well-being (health and productivity management and engagement) Contributing to a decarbonized society Environmental Considerations in Products Promoting waste reduction and recycling Water resources and biodiversity conservation Strengthening corporate governance systems and raising awareness of compliance Strengthening risk management	Contributing to solving social issues in the fields of medicine, healthcare, and beauty High quality products and services at reasonable prices Responsible response to consumers (ensuring safety and security)
Strengthening the financial base to support stable management Promoting CSR Procurement Coexistence with local communities and support for future generations Improving social trust and reputation through dialogue with stakeholders and information disclosure Ensuring Occupational safety and health	Supporting the growth of independent individuals Promoting diversity (diverse human resources and work styles) Building a business and human resources portfolio Improve productivity and profitability through efficient use of expenses and review of business processes (including promotion of digital transformation)

Impact on the sustainable development of the Rohto Group

Five Material Issues

Realization of “Well-being” through business
Maximizing human capital to enhance corporate value
Contributing to a sustainable global environment
Coexistence with society　
Further strengthening of business foundations

Materiality and related SDGs

*If the right edge of the table is cut off, please scroll horizontally to check.

Materiality (related SDGs)	Key challenges
Realization of “Well-being” through business Strengthening the development capabilities and competitiveness of businesses, well-being products and services that contribute to the realization of a well-being society Safe and secure quality Business Introduction	Contributing to solving social issues in the fields of medicine, healthcare, and beauty High quality products and services at reasonable prices Improve productivity and profitability through efficient use of expenses and review of business processes (including promotion of digital transformation)
Maximizing human capital to enhance corporate value Promoting mutual growth between the company and its employees Human Resources and Working Environment Initiatives	Building a personnel system that supports the independent growth of individuals Improving employee well-being (health and productivity management /Engagement) Promoting diversity (Diverse human resources and work styles) Ensuring Occupational safety and health
Contributing to a sustainable global environment Preventing global warming and living in harmony with the natural environment Towards a sustainable global environment	Contributing to a decarbonized society Environmental Considerations in Products Promoting waste reduction and recycling Water resources and biodiversity conservation
Coexistence with society　 Building trust with stakeholders to become a company that is needed and trusted by society Coexistence with society　 Achieving well-being (mental and physical health)	Responsible consumer behavior (Ensuring safety and security) Respect for human rights Promoting CSR Procurement Coexistence with local communities and support for future generations
Further strengthening of business foundations Strengthening the financial and organizational foundation to support sustainable growth Rohto Group's Sustainability Governance	Strengthening corporate governance systems and raising awareness of compliance Strengthening risk management Building a business and human resources portfolio with a long-term perspective Strengthening the financial base to support stable management Improving social trust and reputation through dialogue with stakeholders and information disclosure

Initiatives for SDGs

Since our founding, we have delivered beauty and health to people around the world through our products and services, with the goal of contributing to the physical and mental health of consumers and guiding them to a state of well-being. When comparing our business activities with the SDGs, we believe that our business activities themselves are essential elements for creating a sustainable society and can be said to be a uniquely Rohto approach to the SDGs. Going forward, we will continue to respond to consumers' beauty and health needs while further promoting our environmental efforts, such as developing eco-friendly products, and fulfilling our social responsibility to address issues that can contribute to achieving the SDGs through our business activities. However, because we believe that there is only so much that one company can do, we will work together with others who share our vision to promote these efforts.

Sustainability Targets 2030

We have identified five material issues (important issues) to prioritize through our business activities: "Realization of well-being through business" "Maximizing human capital to enhance corporate value" "Contributing to a sustainable global environment" "Coexistence with society" "Further strengthening of business foundations" We believe that thoroughly pursuing the realization of a "well-being" society through our business will ultimately lead to sustainable growth. In our business fields, we have set and promoted the "ROHTO Group Comprehensive Management Vision 2030" In non-financial fields (environmental and social axes), we have identified the following areas as particular priorities for achieving our vision by 2030. We have set targets for each of these as "Sustainability Targets 2030" and are promoting initiatives while monitoring progress toward achieving them. We aim to realize a well-being society by adding and revising goals in response to future environmental changes and the expansion of our initiatives.

Materiality	social issues	Non-financial KPI	Achievements FY2024	the goal FY2030
Sustainable Contributing to the global environment [Environment (E)]	Contributing to a decarbonized society (reducing greenhouse gas emissions)	Reduction of total greenhouse gas emissions (Scope 1 & 2, non-consolidated) (compared to fiscal 2013)	35.4％	Over 46%
		CO2-free electricity purchase ratio at major business locations	75.8％	100％
		Reducing the amount of plastic used in domestic containers and packaging	5,659t	Setting reduction targets
	Contributing to a recycling-oriented society (promoting recycling and reducing waste)	Percentage of environmentally friendly paper used in paper containers and packaging	67.0％	Over 90%
		Green purchasing ratio for office stationery at domestic business sites	51.4％	Over 90%
		Green purchasing ratio for office printing paper at domestic business sites	100％	Over 90%
	Considerations for the environment	Establishment of standards for using “R・eco” mark	Mark award rate: 48.5%	Mark grant rate target setting
	Considerations for the environment	Switching to certified palm oil	27.8％	100% switching
Maximizing human capital Coexistence with society [Society (S)]	Respect for human rights	Conducting human rights and harassment education for all employees	Implemented (100% participation rate)	Continued every year
	Promoting diversity (including work style reform)	Male parental leave take-up rate	97.5％	100％
		Legal employment rate for people with disabilities	2.6％	3.0% or more
		Career training for employees aged 50 and over	implementation	Held annually
		Learning practice rate	62.7％
		Installation of gender-neutral restrooms within company-owned business premises	Already installed
		Overtime work (month)	12.3 hours
		Paid leave utilization rate	76.5％	Over 80%
		Rate of taking five or more consecutive days of paid leave	24.7％	Over 80%
	Ensuring Occupational safety and health	Number of serious work-related accidents (leaving work time off work)	1 item	0 items
	Improved employee engagement	Well-being survey score (engagement rating)	5 items average 6.98pt	Full marks in all categories
	Promoting health and productivity management (*The figures within the bold frame are health and productivity management targets for 2023)	Certified as Certified Health & Productivity Management Outstanding Organization (White 500)	Continuation of certification in 2024	Continuing Certification
		Sports Yell Company Certification	Continuation of certification in 2024	Continuing Certification
		Health checkup attendance rate	100％	100％
		Stress check participation rate	99.8％	100％
		39 Message sending rate	68.9％	100％
		Rate of Employees with Metabolic Syndrome (Breakdown into Metabolic and Pre-Metabolic)	15.4％（5.9％＋9.5％）	0％
		Percentage of women with anemia	14.5％	0％
		Percentage of healthy age < actual age	67.2％	80％
		Percentage of smokers	2.6％	0％
		Percentage of people who adhere to appropriate alcohol intake	77.2％	100％
		Percentage of people satisfied with their sleep	47.5％	80％
		Percentage of people who exercise for 30 minutes at least twice a week	43.1％	50％
		Achievement Rate: 8,000 Steps/day & 20 min Brisk Walking/day	11.7％	50％
	Promoting CSR Procurement	Conducting a sustainable procurement survey of suppliers	Conducted by 70 companies (90% of the amount raised)	Expanding implementation
	Promoting CSR Procurement	Expanded implementation of sustainable procurement surveys targeting suppliers of domestic and overseas group companies	To be implemented as soon as possible by fiscal year 2030
	Responsible consumer behavior	Product liability accidents and serious quality incidents	0 items	0 cases continue
Strengthening the management foundation [Governance (G)]	Risk Management Strengthening the compliance system	Further improving compliance awareness to achieve zero scandals and serious legal violations	1 item (Measures Order for Violation of the Act against Unjustifiable Premiums and Misleading Representations)	0 cases continue
		Compliance education for all employees (including e-learning)	implementation	Continue to implement every year
		Establishment of a hotline for suppliers to report and receive advice	Establishment of a counter