Materiality (Key Issues) / Goals

Materiality Identification

In order to promote efforts to resolve priority issues in sustainability, we have identified five materialities (key issues) from the perspective of ESG/SDGs that we should prioritize through business activities. We will promote initiatives for each materiality to enhance corporate value and achieve sustainable growth.

Materiality identification process

Step1Identification of social issues: The Sustainability Committee analyzes global social issues and ESG trends with reference to various guidelines and norms such as SDGs and GRI standards, and identifies issues

Step2Narrowing down key issues

Discussions are held among senior management, including outside officers, on the issues identified, and materialities are selected.

Viewpoints emphasized

Does it contribute to the realization of a society with well-being, and contribute to the development of the Company and society?
How much impact does it have on our management, including consistency with our growth strategy?
Is it an ESG measure to be strengthened to contribute to the enhancement of our corporate value?

Step3Assessment of validity and identification of materiality: Materialities identified in step 2 are finalized by the Sustainability Committee and approved by the Management Committee.

Materiality Matrix

Most importantImportant

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

Impact to stakeholders

Respect for human rights
Reduction of greenhouse gas emissions
Reduction of waste and promotion of recycling
Protection of water sources and biodiversity
Strengthening corporate governance and compliance awareness and systems
Strengthening risk management and response capabilities

Contributing to solving social issues in the medical, healthcare, and beauty area
Achieving both high-quality and fair prices in the provision of products and services
Responsible response to consumers (assurance of safety and security of products and services)

Strengthening of financial base to support stable management
Promoting CSR procurement
Coexistence with local communities and support for future generations
Improve social trust and reputation through dialogue with stakeholders and information disclosure
Ensuring occupational safety and health

Developing a personnel system that supports the growth of autonomous individuals
Improvement of employee well-being (promotion of health and productivity management, improvement of engagement
Promotion of diversity (diverse human resources and work styles)
Planning a business and human resources portfolio from a longterm perspective
Improvement of productivity and profitability through cost efficiency, business process review, etc. (including promotion of DX)

Impact on our sustainable business development

Five materialities

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

Materiality and Related SDGs

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

Materiality (related SDGs)	Main issues
Realization of well-being through business Strengthen development capabilities and competitiveness of businesses and well-being products and services to contribute to the realization of a society with well-being Guarantee of quality and safety Our Business	Contributing to solving social issues in the medical, healthcare, and beauty area Achieving both high-quality and fair prices in the provision of products and services Improvement of productivity and profitability through cost efficiency business process review, etc. (including promotion of DX)
Maximizing human capital to enhance corporate value Promoting co-growth between the Company and members Initiatives for Human Resources and Work Environment	Planning a personnel system that supports the growth of autonomous individuals Improvement of employee well-being(promotion of health and productivity management, improvement of engagement) Promotion of diversity (diverse human resources and work styles) Ensuring occupational safety and health
Contributing to a sustainable global environment Prevention of global warming and harmony with the natural environment Towards a Sustainable Global Environment	Reduction of greenhouse gas emissions Reduction of waste and promotion of recycling Protection of water sources and biodiversity
Coexistence with society Building trust with stakeholders to become needed and trusted by society Coexistence with Society Realization of Well-being	Responsible response to consumers (assurance of safety and security of products and services) Respect for human rights Promoting CSR procurement Coexistence with local communities and support for future generations
Further strengthening of business foundations Strengthening financial and organizational foundations to support sustainable growth Our Sustainability Governance	Strengthening risk management and response capabilities Establishing a business and human resources portfolio from a long-term perspective Strengthening of financial base to support stable management Improve 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 leading them to a state of wellbeing. We compare the goals of the SDGs with our business activities, we believe that our business activities themselves are an essential element in the formation of a sustainable society, and it can be said that this is an initiative for the SDGs that is unique to ROHTO. Going forward, we will continue to respond to the beauty and health needs of consumers while further promoting environmental measures such as the development of environmentally friendly products. We will work together with like-minded partners.

Sustainability Targets 2030

At our company, we have identified five key materiality areas, or critical issues, to prioritize through our business activities. These areas are "Realization of well-being through business," "Maximizing human capital to enhance corporate value," "Contributing to a sustainable global environment," "Coexistence with society," and "Further strengthening of business foundations." We believe that relentlessly pursuing the realization of a "Well-being" society through our business is the path to sustainable growth. In the business domain, we are committed to promoting the "ROHTO Group Comprehensive Management Vision 2030." Additionally, in the non-financial domain, specifically in the environmental and social aspects, we have identified the following key areas of focus that we aim to achieve by 2030. We have set specific goals for each of these areas under the "Sustainability Targets 2030" initiative and are actively working towards their achievement while monitoring progress. We are committed to continually adding or modifying goals in response to changing environmental conditions and the expansion of our efforts, all in pursuit of realizing a society characterized by Well-being.

Sustainability Targets 2030