Identification of Materiality (key social issues to be solved by YAMADA) and SDG mapping

Our approach to sustainability is to solve social issues that will enable us to realize a sustainable society through our core business. We understand that we are required to identify what social issues need to be solved to realize sustainable growth of our company and society, and to put them into practice. To this end, we have begun by identifying materiality as the key social issues that we must resolve and developing policies and guidelines to move toward their resolution. The purpose of this section is to demonstrate the process by which we identified materiality, to show the origins of our sustainability efforts, and to help all stakeholders understand our policies.

Materiality Identification Process

1. Identification of three axes for consideration
   We have examined the axes that we need to focus on in order to continue our business.
   First, solving our customers' problems is a prerequisite for them to continue choosing our products. We also agreed within the company that these three axes are to recognize our social influence as a company and fulfill our responsibilities as a company, and to strengthen our own management base, as stated in the message from the top management.
   
   Three axes of consideration: customers' important issues, society's expectations, and a sustainable management foundation.
2. Identification of key points for each axis of consideration
   Next, in identifying social issues, we examined the points required by society for each of the three axes of consideration. The process up to this point was conducted by the Administration Division and used as a basis for discussion in the following process.
3. Identification of important social issues to be solved by YAMADA
   Members selected from various divisions within the company identified social issues that YAMADA, as a manufacturer of products that enrich people's lives, should take responsibility for resolving.
   
   We believe that if the process of providing our products contributes to sustainable growth, then the customers who buy our products and the end-users who use them can also contribute to improving sustainability in their transactions and in the use of our products in their daily lives.
   
   From this perspective, the members of the selection committee discussed and identified social issues that we should solve through our core business.
   
   

   Solving social issues through YAMADA's business

   No	Axis of consideration	Points to consider	Solving social issues through YAMADA's business
   1	Customers' important issues	Providing high quality products	Development of products that contribute to the realization of an affluent society and social progress Improvement of the standard of living through the long-term use of good products
   2		Providing safety and security	Maintain health and safety in daily life
   3		Providing environmentally friendly products	Reduction of CO2 emissions in the supply chain to curb global warming Effective use of global resources through material reduction and conversion to renewable materials, and promotion of plastic recycling and reduction of plastic usage Reduction of environmental impact by limiting the use of specific environmentally hazardous substances
   4		Reduction of waste volume	Reduction of waste by promoting digitization of materials
   5	Society's expectations	Sustainable procurement practices	Strengthening supply chains through fair and equitable transactions Reduce supply chain risk by ensuring human rights, labor, and anti-corruption practices.
   6		Reduction of GHG emissions	Reduction of CO2 emissions in the supply chain to curb global warming
   7		Effective use of Earth's resources	Promote the use of clean energy through photovoltaic power generation Sustainable forest management through the use of FSC certified paper
   8		Effective use of water resources	Water circulation system at the plant to reduce water stress in the intake area
   9		Coexistence with Nature	Preservation of the waterside environment through business-related social contribution activities
   10		Contribution to the local economy	Contribute to the development of young people by accepting student interns Contribute to human resource development for young people by accepting student interns
   11	Sustainable management foundation	Employees’ health and safety	Strengthen the management base by securing human resources with expertise in providing long and healthy workplaces.
   12		Employee working conditions/career development	Strengthen the management base by securing human resources with knowledge and experience by promoting motivation to work. Cultivate human resources who can strive to deliver success, satisfaction, and inspiration to our customers by providing them with the best services, products, technologies, and solutions. Cultivate human resources who can demonstrate not only their technical skills but also all of their accumulated experience. Develop human resources who can find value in taking on challenges and growing together with others.
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   14		Securing the right to collective bargaining	Strengthen the management foundation by creating a safe and motivating workplace that respects the basic rights of workers.
   15		Forced/child labor prohibited	Ensure management that can continue or expand transactions by reducing reputation risk, etc.
   16		Diversity, Equity & Inclusion	Strengthen the management foundation as a source of sustainable growth by creating a workplace where diversity leads to new ideas and the creation of attractive products. Create an internal environment and systems that enable employees of various ages, nationalities, backgrounds, values, family environments, etc., to work in a fulfilling manner while making the most of their individuality.
   17		Anti-harassment	Strengthen the management base by securing human resources with expertise by providing a safe and secure workplace

4. Creation of Materiality Map
   Once YAMADA had identified the issues to be addressed for the points to be considered, a materiality map was created to identify the level of importance. Based on the recognition that all of these issues need to be addressed, we identified the material issues that should be prioritized.
   
   
   
5. Determination of materiality
   Through the process described so far, we have determined six materialities. For each of these, we will define how we will resolve the issue based on the content of our internal discussions and disseminate this information internally and externally.

Materiality of YAMADA

This section describes the six materialities and their definitions.

1. Contribute to the improvement of living standards and social progress of our customers and end-users through the pursuit of quality

   YAMADA believes that the products we provide can contribute to enriching people's lives. To this end, YAMADA will contribute to the improvement of living standards of end-users and the progress of society by constantly improving its technological and developmental capabilities and providing customers with a sense of safety, security, and satisfaction through innovation.

   There is no end to the number of cases in which people's health and safety are threatened due to poor quality in their daily lives. When the products and services we purchase to enrich our lives are threatened, we lose the peace of mind that is fundamental to our lives, and our quality of life, let alone our progress, regresses.

   We recognize the importance of constantly pursuing quality in order to fulfill our responsibilities as a manufacturer. We believe that this will lead to customer satisfaction, and that by ensuring the safe use of Yamada's products, innovation will emerge from the ongoing communication between our company and our customers, and in turn, our products will contribute to the advancement of society.

2. Reduce environmental impact by giving consideration to global environmental conservation throughout the supply chain

   YAMADA will give consideration to the preservation of the global environment throughout the entire supply chain. In particular, we will reduce our impact on the global environment through the reduction of greenhouse gas emissions and the effective use of global resources, which are common issues worldwide, and we will take responsibility for sustainable growth as a company that produces products from the earth's resources.

   If future climate change threatens life on Earth, life as we know it will not be possible for many people. The depletion of natural resources will also make it impossible to use the same resources, resulting in lower quality and higher costs.

   Recognizing that we are also a member of the community that is affected by climate change and resource depletion, we recognize the importance of environmental conservation efforts throughout our company and the supply chain that makes up our company, in order to minimize the impact of climate change and resource depletion. We are also committed to working through our business to help our customers reduce their environmental impact by choosing Yamada products.

3. Respect human rights and diversity to fulfill our responsibilities as a company and strengthen our management foundation

   YAMADA respects the human rights and diversity of all people with whom we interact through our business. We strive to create mutually respectful relationships not only with our employees, but also with our suppliers with whom we do business, and with people in local communities with whom we communicate regularly, so that we can continue our business activities based on good relationships into the future.

   When human rights violations come to light, not only within our company but also at our suppliers, it is not unreasonable for end users to perceive that our products are built on human rights violations. Recognizing that companies sometimes have powerful power over individuals, we believe that it is our social responsibility to continue our efforts to eliminate human rights violations and harassment with disregard for diversity.

   We are also convinced that only in a climate of mutual respect between our company and the people with whom we interact will new ideas emerge and lead to the creation of attractive products, which will also strengthen our management foundation. We recognize that respect for human rights and diversity is an essential element for the sustainable growth of our business, and we will continue our efforts to ensure that this respect is upheld.

4. Ensuring the health and safety of our employees, fulfilling our responsibilities as a company, and strengthening our business foundation

   The health and safety of our employees is the most important element of any company, and we at YAMADA also believe that our employees are the most important and will make the utmost efforts required of us as a company. We believe that this will strengthen our business foundation and, in turn, enable us to continue to provide products that satisfy our customers.

   Our employees spend a large percentage of their lives in our business. Therefore, they need to ensure their health and safety not only in their personal lives, but also in the time they spend in our business. We believe it is important to continue to strive to make our employees happy to work for us, above and beyond our legal obligations.

   Whatever the working style, as a company, we will put the health and safety of our employees first so that they can devote themselves to our business as members of YAMADA, and we will continue to make necessary improvements to strengthen our management base with employees who have a wealth of knowledge and experience.

5. Communicate with the local community to work toward mutual development

   Coexistence with local communities is essential for YAMADA to continue its business. We believe that deepening communication with the local people and recognizing on both sides the significance of doing business in the area will support our sustainable growth.

   If a company is destructive to the local environment, or if it is resented by the local people, it will be difficult for it to continue its business. We understand that sustainable growth can only be achieved through relationships that allow us to receive human resources from the community, contribute to the local economy, and grow with the community.

   We are actively involved in the community and act when our business can benefit the community. We also engage in regular communication and constantly seek out development possibilities for both parties. We believe that our company's development is based on the continuation of such activities.

6. Reduce risks and minimize impact when they occur by strengthening governance

   Recognizing the importance of fulfilling its social responsibility by continuing its business, YAMADA believes that responsible management is to identify possible risks in its business operations and prepare for the occurrence of risks. To this end, we will continue to strengthen our governance and constantly strive to minimize our impact.

   The occurrence of corruption or corruption in business dealings or information security incidents can cause inconvenience to our business partners, betray end users, and eventually develop into cases that make it difficult for us to continue our business. We recognize the importance of always taking measures against possible risks that may occur in the course of our business activities.

   Based on the recognition that not only our management but also each and every employee in our business must be aware of the risks and respond to them, we have established a code of conduct and provide education to prevent incidents and accidents to the greatest extent possible, and have also established a response plan in advance in the event of an accident, thereby strengthening our system for business continuity even further. In addition, we will strengthen our system for business continuity more than ever by taking the utmost measures to prevent incidents and accidents before they occur, as well as by establishing a response in advance in the event of an accident.

Materiality and SDGs Mapping

We believe that YAMADA's efforts to address each materiality will contribute to the achievement of the targets of the SDGs, the Sustainable Development Goals. Below is a mapping of the identified materialities to the 169 targets of the SDGs. We will fulfill our social responsibility as a corporation by being aware that each of our efforts through our business activities will lead to the achievement of these targets.

1. Contribute to the improvement of living standards and social progress of our customers and end-users through the pursuit of quality

   	12.8 By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony with nature
   	3.9 By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination

2. Reduce environmental impact by giving consideration to global environmental conservation throughout the supply chain

   	13.1 Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries
   	13.3 Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning
   	12.4 By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle, in accordance with agreed international frameworks, and significantly reduce their release to air, water and soil in order to minimize their adverse impacts on human health and the environment
   	12.2 By 2030, achieve the sustainable management and efficient use of natural resources
   	12.5 By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse
   	7.1 By 2030, ensure universal access to affordable, reliable and modern energy services

3. Respect human rights and diversity to fulfill our responsibilities as a company and strengthen our management foundation

   	5.1 End all forms of discrimination against all women and girls everywhere
   	5.2 Eliminate all forms of violence against all women and girls in the public and private spheres, including trafficking and sexual and other types of exploitation
   	5.5 Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life
   	10.2 By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status
   	8.5 By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value
   	8.6 By 2020, substantially reduce the proportion of youth not in employment, education or training

4. Ensuring the health and safety of our employees, fulfilling our responsibilities as a company, and strengthening our business foundation

   	3.4 By 2030, reduce by one third premature mortality from non-communicable diseases through prevention and treatment and promote mental health and well-being
   	3.8 Achieve universal health coverage, including financial risk protection, access to quality essential health-care services and access to safe, effective, quality and affordable essential medicines and vaccines for all

5. Communicate with the local community to work toward mutual development

   	3.9 By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination
   	4.4 By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship
   	14.1 By 2025, prevent and significantly reduce marine pollution of all kinds, in particular from land-based activities, including marine debris and nutrient pollution

6. Reduce risks and minimize impact when they occur by strengthening governance

   	8.7 Take immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labour, including recruitment and use of child soldiers, and by 2025 end child labour in all its forms
   	16.2 End abuse, exploitation, trafficking and all forms of violence against and torture of children
   	16.4 By 2030, significantly reduce illicit financial and arms flows, strengthen the recovery and return of stolen assets and combat all forms of organized crime
   	16.5 Substantially reduce corruption and bribery in all their forms