Identifying Materiality

Based on the Corporate Philosophy, the DNP Group aims to realize “a sustainable, better society and well-being lives” as a sustainable management concept and is taking the initiative in conducting business activities to create a “better future.”To realize the four interrelated societies that it aims for as a “better future,” in March 2024 DNP identified materiality as important for it to continuously grow together with society by specifying what DNP should do and what value it will create with an eye toward 2030-35.

A “better future” aimed for by DNP

Process for identifying materiality

In identifying materiality, DNP comprehensively ascertains social issues and megatrends related to the environment, society and the economy, and evaluates and analyzes medium- to long-term risks (variable factors) and the impact of these on our business based on factors such as the impact on our own business activities, the value we can provide, and our strengths.
Considering these external trends, DNP has specified the four types of societies that it aims for, and to realize these we have specified what DNP should do and the value it should provide and identified these as materiality.

  • Ascertaining
    social issues

    DNP comprehensively ascertains social issues from the perspectives of market changes and megatrends and the materiality of these for each stakeholder as well as international frameworks such as SDGs, the GRI standards and ESG social evaluation items.

    Related stakeholders

    Employees, local communities, business partners,
    shareholders/institutional investors, education/research
    institutions, NPOs/NGOs, various organizations, etc.

    International frameworks considered

    SDGs, the GRI Standards, SASB Standards, United Nations
    Global Compact, TCFD, TNFD, UN Guiding Principles on
    Business and Human Rights, etc.

  • Identifying and
    prioritizing
    social issues
    Based on the relationship with our Corporate Philosophy and Business Strategy, identification of short-, medium- and long-term risks and opportunities and an assessment of the impact of these on management, DNP has specified the four societies it aims for as its “better future” and has outlined what it should do to realize this and the value it will provide.
  • Identifying
    materiality
    DNP holds opinion exchanges with relevant internal divisions, external experts and outside directors. We identify DNP’s materiality after discussion with and approval by the Sustainability Committee, Management Committee and Board of Directors.

Business activities based on materiality

As business activities based on materiality, we are promoting cross-company new value creation, primarily in our focus business areas, through the evolution and cultivation of the strengths of DNPʼs unique Printing & Information (P&I).
Concurrently, we are strengthening our business base and thoroughly managing risks as we minimize negative impacts from the dual perspectives of increasing corporate value and strengthening business competitiveness.

Impact of extracted risks (variable factors) on business activities and reflecting these in business opportunities

Economic risks (variables) closely associated with business activities
• Market changes, acceleration of development of new products and technologies
• Acceleration of DX and establishment of a global network, etc.
• Geopolitical influences, rapid changes in various economic indicators
• Changes in financial and information infrastructures
• Depletion of/shortages/restrictions on resources, etc.
Expected impact on business • Changes in business structure, intensifying competition in new businesses and development
• Human rights violations in using AI, spread of false information
• Stagnation and sudden changes in economic and consumer trends, changes in the supply and demand balance
• Intensifying threats to information security
• Impacts on stable procurement, soaring prices, etc.
Reflect in business opportunities • Value creation centered on focus business areas, strengthening collaboration with partners
• Commercialization/efficiency enhancement through AI innovation, accelerate AI utilization
• Integration of cyberspace and physical space
• Provision of highly reliable and transparent information
• Strengthen IT governance, sophisticate security measures, etc.
Social risks (variables) closely associated with business activities
• Labor shortages, employment mobility
• Diversity, changing conditions for people to live comfortably
• Globalization of supply chains, geopolitical risks, etc.
Expected impact on business • Difficulties in securing and developing specialist human resources, rising labor expenses
• Diversification of values, awareness of diversity
• Increasing supply chain risks, including human rights
• Strengthened regulations, manifestation of the impact of geopolitical risks, etc.
Reflect in business opportunities • Build a robust human resources portfolio
• Eliminate labor shortages by improving operational efficiency
• Promote D&I, utilize diverse human resources, and respect the work environment and human rights
• Improve reliability by enhancing the transparency of the supply chain, etc.
Environment risks (variables) closely associated with business activities
• Intensifying disasters and increasing water risks due to climate change
• Accelerating plastic pollution and biodiversity loss
• Accelerating the transition to being nature positive, carbon neutrality and a circular economy
• Expanding environmentally positive markets, accelerating technology innovation, etc.
Expected impact on business • Suspension of operations and disruption of supply chains due to social infrastructure destruction
• Tightening of regulations on GHG emissions, etc.
• Expansion of reuse and recycling, rise in demand for switching to alternative materials
• Reforming business structure toward being nature positive
• Intensifying competition in new businesses and development, changing market trends, etc.
Reflect in business opportunities • Deal with natural disasters through BCP and BCM, multiple production bases
• Provide low-carbon products, services and products made from alternative materials, and effectively utilize resources
• Expand markets through early technology development and product design changes, etc.

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