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1. What’s Materiality?

Materiality refers to strategically important issues for companies aiming to create sustainable value. Identifying materiality enables companies to improve the quality of decision-making and capital allocation, while communicating the concise information required by investors and other external stakeholders for their decision-making.

2. Materiality at TBM

TBM has identified 12 material themes, which we classify into four groups explained below. The three elements of E: Environment, S: Social Issues, and G: Governance used by investors aiming for long-term responsible investment, and BE: Business Enabler, which holistically strengthens our business activities, are the four groups. In addition, by identifying the SDGs and KPIs associated with each of the 12 material themes, we clarify how material issues are involved in creating a sustainable world and to measure the performance of TBM with regard to those issues. We plan to disclose KPIs after we accumulate and analyse the measurement results.

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Based on our model of interpreting the world (see here for more information), TBM has mapped the material issues on the realms of “Natural environment”, “External Stakeholders”, “TBM”, and “Relations/Bridges”. This enables us to grasp the issues spatially and to organise and view materiality from perspectives other than ESG.

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<Materiality Identification Process>
he core of TBM’s materiality identification process is continuous improvement.
As the first attempt, we have conducted the four steps below from 2018 to 2019.
・Internal and external environment analysis
・Interviews with sustainability experts
・Reviewing reporting standards: IIRC (International Integrated Reporting Initiatives), GRI (Global Reporting Initiative), SASB (Sustainability Accounting Standards Board) etc.
・Benchmark studies on the material issues of industry leaders: Chemicals, Containers and Packagings, Paper and Forest-based Products, and Building Materials
We are currently considering the materiality mapping through consultations with a wide range of stakeholders, which is often implemented in the materiality identification process of large-scale companies.