Materiality

Daido Steel's Materiality

Since identifying materiality through the process below in fiscal 2020, we have been revising it every year due to various changes in the external environment and the increasing complexity of sustainability issues.
For fiscal 2025, we have referred to the World Economic Forum’s Global Risks Report 2025 and other sources, and after considering the progress of the 2026 Medium-Term Management Plan, we have decided, after discussions at the Sustainability Committee, to set the same materiality as for fiscal 2024.

Theme Materiality Related SDGs
Preservation of the Global Environment (Business activities/product supply)

E1Steady implementation of a roadmap to achieve carbon neutrality in the production process
  • 6.Ensure availability and sustainable management of water and sanitation for all
  • 7.Ensure access to affordable, reliable, sustainable and modern energy for all
  • 9.Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
  • 11.Make cities and human settlements inclusive, safe, resilient and sustainable
  • 12.Ensure sustainable consumption and production patterns
  • 13.Take urgent action to combat climate change and its impacts
  • 14.Conserve and sustainably use the oceans, seas and marine resources for sustainable development
  • 15.Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

E2Expansion of businesses that contribute to the realization of a sustainable society

E3Coexistence with nature and reduction of environmental impact as a manufacturing company
Responsibilities and Contributions to Society

S1Development of human resources who embody our Management Philosophy and Conduct Guidelines, and promotion of DE&I (*)
  • 3.Ensure healthy lives and promote well-being for all at all ages
  • 4.Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
  • 5.Achieve gender equality and empower all women and girls
  • 6.Ensure availability and sustainable management of water and sanitation for all
  • 8.Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
  • 10.Reduce inequality within and among countries
  • 12.Ensure sustainable consumption and production patterns
  • 15.Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
  • 16.Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

S2Contribution to solving social issues and fulfilling our corporate responsibilities
Enhancing Our System of Governance

G1Strengthening the corporate foundation that bolsters reliability and security, and enhancing the governance system
  • 8.Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
  • 11.Make cities and human settlements inclusive, safe, resilient and sustainable
  • 13.Take urgent action to combat climate change and its impacts
  • 16.Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels
  • 17.Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development
  • * DE&I: Diversity, Equity & Inclusion
    Aiming for an environment where all diverse talents are guaranteed fairness, mutually recognize each other, and can maximize their abilities and thrive

Materiality Identification Process

  1. Identifying social issues

    By comparing the SDG targets with the global risks in the Global Risks Report 2019, excluding overlapping issues, and adding issues of high social interest, 95 social issues were identified

  2. Evaluation from a business perspective

    Evaluated the level of importance of issues in terms of the risks and opportunities they present to our business in the present, medium, and long term

  3. Evaluation from a stakeholder perspective

    Evaluated the relationship between issues considered important by stakeholders in each business field and the evaluation criteria of ESG rating institutions

  4. Creating and identifying materiality matrices

    Business evaluation and stakeholder evaluation were integrated to create a materiality matrix. Daido Steel’s materiality was identified after two discussions at the Sustainability Committee