Process of Identification and Review of Materiality
Since FY 2017, the CITIZEN Group has identified materiality to address with priority in realizing sustained growth while fulfilling its responsibilities as a member of the international community and a true global enterprise.
In identifying materiality, we have referred to the principles and guidelines regarding corporate social responsibility (CSR) and sustainability, such as the Sustainable Development Goals (SDGs), the United Nations Global Compact, ISO 26000, Responsible Business Alliances (RBA), and the Global Reporting Initiative (GRI) standards, while comprehensively ascertaining the social issues that are important to society and stakeholders. We also referred to the CITIZEN Group’s corporate philosophy, Code of Conduct, medium-term management plans, and other business strategies, and ascertained the positive and negative impacts of our business activities on the SDGs throughout the value chain, in line with the needles of the SDG Compass. We then mapped these along the two axes of social impact and business importance, identifying as the five components of materiality in FY 2020 outlined in red below, which have been found to be highly important in terms of both of these axes.
In FY 2020, in order to enhance quality-related compliance throughout the Group, we revised the materiality of quality initiatives into that of enhancing quality compliance. Furthermore, we revised the materiality of promoting responsible procurement into that of promoting sustainable procurement, since procurement activities are intended not only to fulfill our social responsibilities but also to create new value.
To carry out more effective initiatives related to four of these aspects of materiality, we prepared a roadmap for the period through 2030 and established clear goals, key performance indicators, and measures.
New materiality in FY 2020
|Materiality||SDGs aimed at contributions|
|Enhancing corporate governance||Aiming to grow the corporate value of the CITIZEN Group continually through the maintenance of internal control systems to secure the transparency and soundness of management and the efficient business execution and appropriate supervision throughout the group|
|Enhancing quality compliance||Striving to ensure thorough quality compliance in all manufacturing processes in accordance with the Group Quality Code based on the corporate philosophy “Loved by citizens, working for citizens”|
|Respect for human rights and labor practices||Striving to respect and contribute to human rights throughout the entire value chain as a global business enterprise; also, strengthening our corporate culture based on respect for diversity and empowering one another to build workplaces where all members of the organization can work with safety and peace of mind|
|Promoting sustainable procurement||Aiming both to optimize procurement activities throughout the group and to resolve social issues throughout the entire value chain|
|Promoting environmental innovation||Striving to create new value through eco-friendly business activities in all products of the CITIZEN Group and in the entire process of the value chain|