Process for Compiling Material Issues

the SCSK Group evaluated a range of issues faced by society from a business perspective, seeking to achieve its corporate philosophy of “Create Our Future of Dreams,” and specified the issues that it views as particularly important and that it should prioritize taking action on to achieve growth together with society as material issues.

STEP1

Identification of social issues

Identified social issues from the perspectives of social value creation and management foundation

Perspective of social value creation (Business opportunities/CSV)

Identified social issues to address from the perspective of achieving sustainable growth by resolving social issues through business (Co-creation with clients and society)

Perspective of management foundation (Risk controls/ESG)

Identified social issues to consider from the perspective of mitigating negative impacts that business has on the environment and society (ISO 26000, SASB, GRI, ESG, SDGs)

STEP2

Assessment of importance of social issues from long-term perspective and mapping of materiality matrix

Held discussions on social issues identified in Step 1 from the perspectives of social value creation and management foundation to assess importance

Discussions from a Social Value Creation Perspective

Each business division examined services and business ideas that contribute to solutions to social issues and the business growth of clients from a long-term perspective through co-creation with clients and society. From the examined services and business ideas, social issues that SCSK should address for its sustainable growth were identified after considering social impacts and needs.

Each social issue was discussed from multiple perspectives including expectations of clients and society and SCSK’s strengths to establish importance through relative assessment.

In-house review in progress

Discussions from Management Foundation Perspective

Referencing international guidelines such as ISO 26000 and SASB, discussions were held on social issues that SCSK should address, and the impacts on management were categorized as positive impacts from initiatives (business expansion) and negative impacts from no initiatives (risks).

The level of importance was determined based on a relative assessment of the positive and negative impacts that each issue has on management from internal and external perspectives.

Mapping of Materiality Matrix

Each social issue evaluated from the perspectives of social value creation and management foundation was mapped out on a materiality matrix from the perspectives of management and stakeholders. Discussions were also held with outside experts regarding the materiality matrix and a survey of employees was conducted .

STEP3

Preparation of draft material issues

Prepared draft material issues considering importance for both management and stakeholders

STEP4

Dialogue with stakeholders

Conducted interviews of employees and outside experts, etc., to solicit stakeholder opinions

STEP5

Formulation of material issues

Formulated material issues after resolution passed by Management Committee and Board of Directors

Materiality Matrix

Comments from Employees Who Participated in the Material Issue Compilation Process
Arata Sakaguchi General Manager IT Outsourcing Services Dept II Nishinihon IT Management Business Div.

Arata Sakaguchi
General Manager
IT Outsourcing Services Dept II
Nishinihon IT Management Business Div.

When I participated in the project, I became aware that clients I had previously covered were utilizing sustainability in their own management. Their approach was to make society a more vibrant place with a long-term perspective, and I remember this resonating with me greatly. At the same time, I felt this same approach was needed by SCSK, too, as we move forward.

During the project, I spoke in detail with other participants about how SCSK can contribute to society. Because SCSK engages in BtoB business, rather than contributing directly to society, we found it important to co-create with various companies while combining our eco systems. These discussions proved to be a valuable experience for thinking about what is needed for our mediumto long-term vision.

Building Trust for a Safe and Secure Society is one of the material issues we identified during this project. The presence of safe and secure infrastructure is an important factor for diversity and inclusion in society and the workplace. Knowing that we play an important role in a safe and secure society, I hope to continually contribute to society in the future.

SEri Usami Manager Accounting Solution Section Administrative Systems Management Dept. II SC Systems Business Div.

Eri Usami
Manager
Accounting Solution Section
Administrative Systems
Management Dept. II
SC Systems Business Div.

I’m grateful to have participated in such an exciting project.

Unlike my daily work, where I often think with a micro perspective, this project mainly involved a very macro world, such as resolving social issues with a timeline of 10 years in the future and no restrictions on location. The review process had me escape momentarily from my daily routine to examine the future. This process of considering what exactly makes people happy was almost spiritual.

From this macro perspective, we asked such questions as why does SCSK exist and what can we offer that is unique. I was very grateful to have the chance to discuss this with people from other divisions. It was a valuable and eye-opening experience in terms of our vision and goals.

Using this experience, I look forward to approaching my job with awareness of taking small steps toward large goals.

Employee Survey Results

During the material issue compilation process, SCSK shared proposed material issues with a broad range of executives and employees, and conducted a survey with the goal of soliciting many different opinions.

The many opinions provided by executives and employees were utilized in the compilation process, and reported to the Management Committee and Board of Directors.

The survey results show a good understanding of the importance and significance of material issues as well as a high level of resonance with the approach that social issues link to discovery and exploitation of new business opportunities. Meanwhile, some employees noted views that ongoing efforts were needed for better penetration internally. Toward this end, going forward we plan to implement initiatives to foster greater understanding.

Understanding of the
importance and significance
of material issues

I understand 94%

Social issues link to
discoveryand exploitation of newbusiness
opportunities

It resonates with me 96%

Note: The response rate to the survey was 97% of all executives and employees.