SENKO HOLDINGS

SENKO Group materiality (material factors)

Against the backdrop of the growing global importance of sustainability-related initiatives such as Environment-Social-Governance (ESG) management and the Sustainable Development Goals (SDGs), we analyzed material factors (materiality) based on the continual evolution of megatrends with the potential to impact the Group’s businesses. Specifically, we consulted standards published by the Sustainability Accounting Standards Board (SASB) and determined that our operations span 28 of the 77 industries identified by the SASB. We estimated each industries’ importance as a percentage of our sales and its potential impact on our businesses and then identified issues that need to be addressed through our businesses based on the materiality required for those 28 sectors. We have established the following priorities addressing material factors (materiality) related to environment (E), social/safety (S), governance (G), and health (H) management based on a close examination of their relationships with key measures in the Group’s management: