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 key 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.

Rohto Group Materiality Matrix

most importantimportant

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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 health and safety	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

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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 health and safety
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, our goal has been to contribute to the physical and mental well-being of consumers and guide them toward a state of well-being, delivering beauty and health to people around the world through our products and services. When we align our business activities with the SDGs, we believe that our business activities themselves are an essential element in creating a sustainable society, and that this represents Rohto's commitment to the SDGs. Moving forward, while responding to consumers' needs regarding beauty and health, we will further advance our environmental initiatives, such as developing environmentally friendly products, and fulfill our social responsibility to contribute to achieving the SDGs through our business activities. However, recognizing that there are limits to what one company can do alone, we will promote these initiatives together with those who share our vision.

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 FY2025	the goal FY2030
Sustainable Contributing to the global environment [Environment (E)]	Contribution to a decarbonized society (Reduction of greenhouse gas emissions)	Reduction in total greenhouse gas emissions (Scope 1 & 2) (compared to FY2013)	41.0％	Over 46%
		CO2-free electricity purchase ratio at major business locations	84.1％	100％
		Reduction of plastic usage in containers and packaging (adoption rate of recycled and biomass plastics ) Applies to products in the top 80% by total resin weight.	35.1% (FY2024)	Over 70%
	Contribution to a circular economy (Promoting recycling, reducing waste)	Usage rate of environmentally friendly paper in containers and packaging	82.8％	Over 90%
		Green purchasing ratio of office supplies	51.8％	Over 90%
		Green purchasing ratio of office printing paper	100％	100% continuation
	Considerations for the environment	“R・eco” mark (Marking rate)	58.9％	100％
	Considerations for the environment	Switching to sustainable palm oil	68.4％	100％
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)	Rate of men taking paternity leave	92.3％	100％
		Employment rate for people with disabilities	3.0％	3.0% or more
		Career training for employees aged 50 and over	implementation	Continue to implement every year
		Percentage of employees putting learning into practice	61.2％	100％
		Installation of gender-neutral restrooms within company-owned business premises	Already installed	Installation
		Overtime work (hours/month)	11.7 hours	0 hours
		Paid leave utilization rate	80.5％	Over 80%
		Rate of taking five or more consecutive days of paid leave	37.8％	Over 80%
	Ensuring Occupational health and safety	Number of serious industrial accidents	0 items	0 items
	Improved employee engagement	Well-being survey score (engagement rating)	5 items average 6.99pt	Full marks in all categories
	Promoting Health and Productivity Management	Certified as Certified Health & Productivity Management Outstanding Organization (White 500)	Continuing Certification	Continuing Certification
		Sports Yell Company Certification	Continuing Certification	Continuing Certification
		Health checkup participation rate	100％	100％
		Stress check participation rate	99.8％	100％
		39 messages *6 sending rate	68.4％	100％
		Rate of Employees with Metabolic Syndrome (Breakdown into Metabolic and Pre-Metabolic)	14.9％（6.5％＋8.4％）	0％
		Percentage of women with anemia *1	14.5％	0％
		Percentage of people whose healthy age is less than their actual age *2	64.0％	80％
		Percentage of employees who smoke	2.0％	0％
		Percentage of people who adhere to a moderate alcohol consumption limit *3	76.5％	100％
		Sleep satisfaction rate *4 (Percentage of people who slept for 6 hours or more)	49.9％	80％
		Percentage pf employees engaging in at least 30 minutes of exercise at least twice a week	44.2％	50％
		Achievement Rate: 8,000 Steps/day & 20 min Brisk Walking/day	11.8％（48.8※5）	50％
	Promoting CSR Procurement	Supplier CSR Procurement Self-Assessment Implementation	Conducted by 70 companies (90% of the amount raised)	Expanded implementation to domestic and international group companies
	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	Scandals/serious violations of laws and regulations	0 items	0 cases continue
		Compliance training for all employees Implementation	implementation	Continue to implement every year
		Supplier reporting and consultation service	Establishment of domestic and international contact points	－

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

*1: Anemia is defined as a hemoglobin level of less than 12.0 g/dL.
*2: "Health Age < Actual Age" is defined as when two or more items from the physical fitness test results (physical fitness age, walking age, brain fitness®) are younger than the actual age.
*3: The appropriate amount of alcohol to drink is defined as less than 2 go (approximately 360ml) for men and less than 1 go (approximately 360ml) for women per occasion.
*4: Percentage of respondents who answered "Very satisfied" or "Somewhat satisfied" on a 4-point scale. In fiscal year 2022, a 5-point scale including "Neither satisfied nor dissatisfied" was used.
*5: Average over the period during which the event was held.
*6: An internal messaging tool that allows employees to express their gratitude to one another.