Materiality and KPIs
We introduce the five material issues of the Teijin Group, and the key performance indicators (KPIs) and target values.
Materiality of the Teijin Group
Materiality is social issues that we prioritize in our actions to realize our long-term vision of being a company that supports the society of the future.
In the Medium-Term Management Plan 2020-2022, based on global social issues and the goals set forth in the SDGs, we have organized risks and opportunities that our company faces and identified five material issues to be addressed as management issues from fiscal 2020 onward.
Materiality and SDGs
Learn more about materiality here
Process of identifying materiality
The Teijin Group grasps a wide range of social issues and screens them by conducting a materiality analysis from the perspective of their degree of importance to the Teijin Group and degree of impact on stakeholders. The Chief Social Responsibility Officer then consults with external experts. The Teijin’s Group Management Committee finally identifies the materiality to the Teijin Group.
STEP1 Grasp and screen
Grasp the trends of a wide range of social issues including the SDGs, and digest them
STEP2 Analyze materiality
The digested social issues are analyzed and mapped two-dimensionally, with importance of the social issues to the Teijin Group in ascending order along the horizontal axis, and impact on stakeholders in ascending order along the vertical axis.
STEP3 Select material issues
From the issues analyzed in STEP2, we select those which have a particularly high importance to the Teijin Group and a high degree of impact on stakeholders.
STEP4 Dialogues with external experts
We conduct dialogues with external experts about the Teijin Group’s process of identifying Materiality and the selected issues.
Details of Implementation
We conducted dialogues about the Group’s process of identifying materiality and the selected issues in October 2019, and received inputs from external experts from a wide range of perspectives.
Connecting business fields with solutions helps improve corporate value
When organizing its materiality with a focus on the SDGs, I believe Teijin can establish a greater sense of a narrative by showing how its three solutions, which are created as a result of its business activities, contribute to society. In addition, Teijin should be able to enhance its corporate value to an even greater extent by extending a particular material or business across multiple solutions. I also think it is important for each employee to gain an understanding on the kind of business opportunities that are created by responding to the SDGs.
Backcasting from the future with a view to the next 100 years is important
From the viewpoint of a long-term investor, the purpose of a corporation’s efforts toward ESG and the SDGs is to achieve sustainable value creation over the long term. To that end, it is important to accumulate existing businesses and make commitments to the future and then think backwards on how to accomplish them. In addition to considering “what” actions it should undertake, Teijin should think about “why” they are pursuing a particular action. I therefore would like to see Teijin promote backcasting with a focus on the next 100 years. Going forward, the extent to which Teijin can ascertain changes in the business environment and consider aspects outside the perspective of its past successes will become increasingly more important.
Looking forward to long-term value creation related to climate change
From a short-term perspective too, Teijin deserves praise for supporting the Task Force on Climate-related Financial Disclosures (TCFD). I think the Company could benefit from adopting a more long-term perspective with its vision and strategies. I would like to see Teijin establish goals for 2030 through a backcasting approach that considers the kind of company Teijin aims to be by its 150-year anniversary. If Teijin’s management is able to indicate the direction toward which the Company is heading, I believe that knowledge of this path will spur various ideas from employees on how to reduce CO2 emissions and other matters. To survive as a company going forward, it is crucial to pursue efforts from the perspective of value creation related to climate change.
Key dialogues held in the past
- Dialogue on human rights with external experts (FY2020)
- Dialogue on human rights with external expert (FY 2019)
- Corporate Governance Talk (FY 2018)
- Promoting of Diversity & Inclusion (FY 2017)
- Materiality Initiatives (FY2016)
- Holding a consultation about CSR procurement (FY2015)
- Identify Material CSR Issues (FY2014)
- True Diversity -- The Next Step in the Advancement of Female Employees (FY2013)
- How Teijin Aramid Creates Qualitative Value in the Chain (FY2012)
- CSR in Disasters (FY2011)
- How Should Environmental Initiatives for China be Structured? (FY2010)
- Toward Better Home Oxygen Therapy (FY2009)
- Toward Expanding ECO-CIRCLE® (FY2008)
- Operation of the Environmentally Friendly Design Guidelines (FY2007)
- Promotion of “ECO-CIRCLE®” (FY2006)
STEP5 Identify material issues
The Group Management Committee deliberates, checks, and identifies the Teijin Group’s Materiality. The current five material issues were identified at the Group Management Committee in December 2019.
KPIs & Targets
The KPIs for each material issue set by the Teijin Group are indicated below.
|126.96.36.199||Sales ratio of the three solutions||by FY2030||75% or more of total sales||Newly created in April 2020|
|1||Avoided CO2*1 emissions*2||by FY2030||Avoided emissions > Total emissions||Newly created in April 2020|
30% reduction vs. FY2018(total amount)
|Revised in July 2021|
|FY2050||Net Zero Emissions||Newly created in April 2020|
|1||Climate Change (Supply Chain CO2*1 emissions*3)
15% reduction vs. FY2018(total amount)
|Newly created in July 2021|
|2||Water (Freshwater Intake)
30% improvement vs. FY2018(volume of freshwater intake per sales unit)
|Newly created in April 2020|
20% improvement vs. FY2018(hazardous chemical substance emissions per sales unit )
|Updated in April 2020|
10% improvement vs. FY2018(volume of landfill waste per sales unit)
|Updated in June 2020|
|5||Diversity & Inclusion|
|Diversity of Executives*4||No. of female executives||April 1, 2031||10+||Updated in April 2020|
|No. of non-Japanese executives||April 1, 2031||12+||Update in April 2020|
|Women’s advancement key goals*5||Japan*6||No. of managers (or higher)||April 1, 2031||300+||Update in April 2020|
||No. of senior managers*7||April 1, 2031||10||Newly created in April 2020|
|EU||No. of global core talents*8||April 1, 2031||10||Newly created in April 2020|
|China||No. of senior managers*7||April 1, 2031||12||Newly created in September 2020|
|ASEAN||No. of senior managers*7||April 1, 2031||8+||Newly created in September 2020|
- *1Calculated as the amount of avoided effect of CO2 emissions that the Company's products have contributed to in the supply chain downstream reduction in the downstream supply chain due to the use of our products
- *2Includes CO2, methane and nitrous oxide
- *3Covers Scope 3 emissions in Category 1 (purchased goods and services). However, this excludes Category 1 emissions related to products purchased for sale in the Textiles & Products business
- *4Total number of board directors, statutory auditors, group executive officers, and group corporate officers
- *5Key goals are set based on regional situations
- *6Four major companies in Japan: Teijin Limited, Teijin Pharma Limited, Teijin Frontier Co., Ltd., Infocom Corporation
- *7President or his/her direct report in a Group company
- *8Human resources of female senior managers selected and certified as executive candidate