Materiality(Priority Issues）

MAX has identified five materiality issues that are important to stakeholders while also having a significant impact on the management of the Company.

Identified materiality (priority issues)

Materiality	Focus themes	Company goals	Indicators	Fiscal 2020	Fiscal 2021	Fiscal 2022	Targets
Materiality	Focus themes	Company goals	Indicators	Results			Targets
Realize a company that allows people to participate	Human resources development Diversity Respect for human rights Work-life balance Occupational safety and health	Continuously producing human resources as described in "our ideal personnel" Ensuring diversity, including active participation of women By respecting people, the development of people will result in growth for the company Maintaining balance between work and life Supporting the development of mental and physical health that will allow our employees to be active over the long term	Engagement survey	－	－	〇	Above-average scores
			Consolidated ratio of women in management positions	－	6.4%	6.1%	10% by 2030
			Non-consolidated ratio of female recruitment for new graduates	24.4%	12.8%	18.9%	20%
			Number of major human rights incidents	0	0	0	0
			Average total annual working hours (Unit: hours)	1,929	1,941	1,901	Below 1,900
Contribute to a sustainable global environment	Environmental management and compliance Development of environmentally friendly products Response to climate change Resource recycling and waste	Harmony between our business and the environment Promoting the development of environmentally friendly products Reduction in greenhouse gas (CO₂) emissions Waste reduction based on the 3Rs	SCOPES 1 and 2 (Unit: tons)	15,177	15,236	15,428	50% reduction by 2030 vs.FY2018
			SCOPE 3 Category 11 (Unit:1,000 tons)	2,482	2,589	2,515	30% reduction by 2030 vs.FY2018
			Recycling rate	95.5%	95.2%	93.6%	－
Drive innovation to realize "Making work life easier and more enjoyable"	Innovation Digital transformation（DX）	Creation of environment and culture that promotes challenges, and continuous challenges to innovate and develop new markets Supply of products and services and organization creation to realize DX vision	R&D ratio R&D expenses (Unit: billions of yen)	4.89% 3.12	4.68% 3.46	4.60% 3.87	－－
Ensure responsible supply	Quality and safety Supply chain management Disaster prevention and recovery	Ensuring high quality in products and operations Promotion of responsible procurement Rapid recovery from large-scale natural disasters, etc.	Number of major product incidents	0	0	0	0
Maintain and strengthen governance	Corporate governance Compliance and risk management Information security	Taking initiatives to enhance corporate governance Internal promotion of compliance and implementation of risk management Protection of information assets	Continuous effectiveness evaluation of Board of Directors	Implemented	Implemented	Implemented	Ongoing
Maintain and strengthen governance			Number of serious compliance violations	0	0	0	0

Materiality (priority issues) identification process

In identifying materiality, we have referred to international frameworks such as the SDGs, the United Nations Global Compact, ISO 26000, and the GRI Standards, as well as wide-ranging stakeholder perspectives and the perspective of impact on the Company.
In addition, we conducted questionnaires for officers and employees and held multiple active discussions, both internally and externally, such as exchanging opinions with outside directors and outside experts, and then identified materiality by receiving approval from the Board of Directors.

STEP1

Selection of social issues

We established the Sustainability Subcommittee, primarily consisting of executive officers, which referenced and analyzed international guidelines such as ISO 26000, the GRI Standards, and the SDGs, to select social issues.

STEP2

Evaluation of the importance of social issues

From among the social issues selected in Step 1, highly important issues were determined from the two perspectives of "importance to stakeholders (society)" and "importance to the MAX Group."

STEP3

Examination of measures and evaluation of appropriateness

We examined measures for the issues determined in Step 2, while also considering their relevance to the Medium-Term Management Plan. At the same time, to confirm the appropriateness of the evaluation, we requested the opinion of outside experts and conducted a review of the issues.

STEP4

Identification of materiality (priority issues)

On the basis of the deliberation and examination by the Board of Directors, MAX identified the materiality (priority issues) that it should engage with through its business. We will continuously review these going forward, based on the status of the initiatives and the business environment.