Materiality (issues actively addressed through business)

Duskin assesses various social issues, including SDGs, in the context of the Duskin Group value chain and business model, and reviews them in response to changes in society.

Within a rapidly changing environment, we aim for improvement in corporate value via the promotion of CSV (Creating Shared Value) efforts aimed at resolving economic, societal, and environmental issues through our business activities and the strengthening of governance that mutually actualizes those three values (economic value, societal value, an environmental value). To this end, we reviewed materiality with strong CSR elements to date, advanced the transforming of this into materiality that aims for CSV value creation, and, through deliberation in the Sustainability Committee and the Board of Directors for each creation value that also took contribution to SDGs into consideration, we finalized our materiality array on June 2021.

CSV efforts and KPI

Material issues in management

Material issues	Major activities	CSV	KPI targets for the end of FY2023
Expand products and services in the hygiene domain	●Broaden the lineup of disinfection, antibacterial and antiviral products and services	Economic value	●Share of hygiene-related sales in total sales: 55%
Expand Care Service and Senior Care Businesses with franchise recruitment	●Open new company-owned offices based on the urban franchise package (Care Service) ●Recruit more franchisees (Care Service and Senior Care)		●Newly opened locations in Care Service Businesses: 367 ●Newly opened locations in Senior Care Businesses: 71
Adapt shops and shop operations to new lifestyles	●Encourage shops to offer delivery service		●Delivery service available at 635 shops
Co-exist and co-prosper with communities	●Offer on-site lessons to help children learn the importance of cleaning ●Work with local governments in such areas as infection control, hygiene management, child and elderly welfare and promotion of local specialties	Social value	●500 on-site lessons per year; seminars for schoolteachers at 25 sites per year ●Ongoing efforts with local governments
Provide safe, reliable and sustainable products and services	●Ensure the implementation of the quality assurance system		●Rate of periodic inspections at contracted food processing plants: 100%
Promote diversity and inclusion	●Establish a third action plan under the Act on Promotion of Women's Participation and Advancement in the Workplace ●Hire more people with disabilities		●Ratio of female managers: 13% or more ●Obtain "Eruboshi" certification under the government program to recognize companies committed to woman empowerment ●Employment ratio of people with disabilities: 3% or higher
Support employees' growth and career development	●Set clear objectives for group training and e-learning and establish and enhance well-coordinated training systems		●Hours of training per person per year: 20 hours or more ●Rate of respondents feeling fulfilled in their career in employee surveys: 80% or higher in all generations
Promote work-style reform and health-focused management	●Encourage diverse work styles and adjust annual working hours to adequate levels ●Make the entire Duskin Group certified as a Health & Productivity Management Organization		●Total annual hours worked per employee: 1,800 hours or less ●Affiliates certified as Health & Productivity Management Organizations: 27
Contribute to the creation of a recycling-oriented society	●Maintain the rate of reused mops and mats (plants) ●Reduce food loss and recycle food waste ●Implement the 3Rs (reduce, reuse, recycle) for plastics; switch to renewable materials	Environmental value	●Maintain a rate of reused mops and mats: 97% ●Rate of recycling food waste: 60% Year 2030 targets ●Reduce food loss by half from the FY2000 level ●Rate of recycling containers and packaging: 60% ●Reduce fossil-based plastic waste by 25% from the FY2020 level
Address climate change	●Encourage introduction of certified low-emission automobiles ●Use more renewable energy in addition to meeting the CO₂ emission reduction targets ●Identify climate change risks and opportunities; disclose financial impact		●Register brand-new 3,760 certified low-emission automobiles Year 2030 targets ●Reduce CO₂ emissions by 46% from the FY2013 level at Duskin Group locations ●Share of renewable energy in total energy use: 50%

Material issues in Material issues in management management systems

Material issues	Major activities	CSV	KPI targets for the end of FY2023
Achieve more effective governance	●Enhance the function of the Board of Directors ●Implement appropriate financial capital policies ●Foster stakeholder engagement	Governance	●Comply with Japan's revised Corporate Governance Code ●Increase the total shareholder return (TSR), using TOPIX including dividends as an index for comparison ●Become included in all ESG stock indices selected by GPIF
Achieve more effective governance	●Ensure compliance and manage associated risks	Governance	●Build and operate a system for protecting and managing personal information ●Continue the improvement of the preparedness manual for large-scale natural disasters, which serves as the BCP for the franchisor and franchisees