Materiality Issues
In line with the Mid-term Business Plan (started in fiscal 2025) for fiscal 2027, after reviewing the status of the value chain surrounding the Group’s activities, its impact on the environment and society, and other issues to be taken into account, the Tokyo Seimitsu Group has revised its materiality as follows. It is composed of 6 themes and 23 material issues, aiming to "contribute to the realization of a prosperous society" through "contributing to a sustainable society" and "earning the trust and confidence of stakeholders." We will continue to revise our materiality as necessary and appropriate.
Process of defining materiality issues
Tokyo Seimitsu considers sustainability initiatives to be essential for further strengthening its management foundation and ensuring mid- and long-term stable value creation. We have identified key materiality issues from among diverse sustainability challenges and incorporated them into the group's management policy. We use these issues as a basis for appropriate information disclosure.
The materiality issues have been identified, with the scope of responsibility encompassing the value chain of the entire financially consolidated group. In addition to the issues that have already surfaced, we have extracted potential issues based on the expected mid- and long-term social and environmental changes. We have also conducted a multifaceted analysis to organize the issues that we need to address for each major stakeholder.
Based on these analysis results, we have evaluated the impacts from the following two perspectives:
1) Impact of Tokyo Seimitsu on the global environment and its stakeholders
2) Impact of sustainability issues on Tokyo Seimitsu's value creation and management strategy
The issues deemed highly important from these perspectives have been identified as materiality issues.
1. Reference to general sustainability issues
Based on the major international guidelines, including GRI standards, SASB standards, and Global Compact, and the evaluation items of ESG rating agencies, among others, we reference the sustainability issues that companies are generally required to address.
2. Analysis phase
(1) Value chain analysis
We analyze the entire value chain from material procurement, manufacturing, and sale to product use and disposal by customers to determine which part of Tokyo Seimitsu's value creation process impacts society and the environment and how they are impacted (positively or negatively). We extract materiality issues from these analysis results. The value chain analysis is mainly intended to identify the sustainability issues that have already surfaced.
(2) Management and business analysis
We analyze the mid-term business plan and other business plans and policies to identify potential sustainability issues inherent to those business plans that are likely to arise in the future, in addition to the existing ones we are currently working on.
(3) Megatrend analysis
We forecast megatrends of the factors considered to significantly impact the future business environment, such as climate change, technological advancement, and economic changes, and predict the roles we will need to fulfill for society and the environment in the future, as well as the challenges we may have to overcome. The megatrend analysis is mainly intended to identify potential sustainability issues that we think will need to be addressed in the future.
(4) Stakeholder analysis
We investigate and analyze each major stakeholder to identify their issues and concerns and what they expect from us, as well as to consider how we address those issues, concerns, and expectations. Conducting an analysis on an individual stakeholder basis provides a deeper understanding of their needs and clarifies the specific issues that we need to work on. The stakeholder analysis is intended to identify the sustainability issues that have already surfaced as well as potential ones that will likely need to be addressed in the future.
3. Evaluation phase
(1) Evaluation of impact on the global environment and stakeholders
We evaluate the impact of our business activities on the global environment and individual stakeholders in terms of scale and likelihood to determine their level of impact. An issue that is found to have an impact of a certain magnitude or greater on the global environment and stakeholders as a result of the evaluation is identified as a materiality issue (impact materiality).
(2) Evaluation of impact on value creation and management strategy
We evaluate the impact of sustainability issues on Tokyo Seimitsu's value creation and management strategy in terms of scale and likelihood from the perspectives of risk and opportunity to determine their level of impact. An issue that is found to have a high level of impact as a risk or opportunity or both is identified as our company's materiality issue (financial materiality).
4. Discussion and approval of materiality issues
The issues found to have a high level of impact in the evaluation phase are put into simple terms to appropriately convey the issues to our employees and stakeholders and divided into groups as necessary. We then consolidate them into the final materiality issues. The materiality issues are discussed at the Sustainability Committee and executive management meetings. The Board of Directors reviews these issues and decides whether to approve them.
Tokyo Seimitsu's Materiality Issues and Initiatives
| Theme | Materiality Issues | Prioritized Activities (FY2026) |
| Contributing to the realization of an enriched society | Creation and provision of products that resolve social issues | Increasing products and services that help address environmental issues |
| Contributing to semiconductor manufacturing that creates the future and enriches society | Product development and service provision for cutting-edge devices | |
| Contributing to innovation in manufacturing through precision measurement | Provision of real-time machining measurement for next-generation manufacturing technology | |
| Contribution to semiconductor manufacturing through precision measurement | ||
| Promotion of business activities that contribute to the creation of a sustainable society | Reduction of greenhouse gas emissions in the value chain | Efforts toward carbon neutrality |
| Reducing CO2 emissions from business operations | ||
| Strict energy management | ||
| Creation and provision of products contributing to the global environment | Development of environmentally friendly products | |
| Optimization of environmental conservation and resource management | Water consumption surveys, analysis, and reduction | |
| Control and reduction of harmful substances and substances of very high concern | ||
| Promotion of biodiversity conservation activities | ||
| Realizing a circular economy | Promotion of resource recycling (circular economy) | |
| Advanced environmental management system | Promotion of environment-conscious initiatives based on ISO 14001 | |
| Maintaining and strengthening a corporate attitude that responds to the trust and confidence of stakeholders | Promoting sustainability in the value chain | Promotion of sustainable procurement |
| Respect for human rights and response to conflict minerals | ||
| Securing a stable product supply and enhancing customer support | Improvement in customer satisfaction | |
| Advanced quality control | ||
| Passing down Tokyo Seimitsu's technology | ||
| Promotion of stakeholder engagement | Promotion of investor relations activity | |
| Contribution to technological development through industry-government-academia collaboration | ||
| Promotion of community beautification activities | ||
| Timely and fair information disclosure | ||
| Active use of the website's sustainability section | ||
| Creating a workplace where diverse people can work positively and energetically | Respect for diverse perspectives and values | Promotion of Women's Participation and Advancement (Recruitment and training of women who can become core human resources) |
| Personnel exchanges with overseas group companies | ||
| Creating a workplace environment where people with disabilities can work actively | ||
| Creating a workplace where people can work in good health, both physically and mentally | Increasing awareness and strengthening measures to promote employee health | |
| Prevention of occupational accidents | ||
| Creation of a secure and safe work environment | ||
| Promotion of voluntary safety activities | ||
| Improving employee engagement | Dissemination of the Company's Purpose and the Vision | |
| Creating a corporate culture that encourages people to take on more advanced challenges without hesitation | ||
| Developing a corporate culture of unity that brings together people from different companies and departments | ||
| Strengthening governance as the basis for fair corporate activities | Strengthening corporate governance | Stricter corporate ethics and legal compliance |
| Timely and appropriate information disclosure | ||
| Strengthening the compliance | Maintain and improve internal control systems | |
| Promotion of risk management | Strengthening risk management (BCM/BCP) | |
| Enhancement in group companies' security | ||
| Enhancement in the CSIRT system | ||
| Shift to the next-generation security infrastructure | ||
| Strengthening the business base | Promotion of the human resource recruitment and development | Enhancement in hiring power |
| Provision of more education and training opportunities | ||
| Strengthening R&D capabilities | Reinforcement of capabilities to deal with cutting-edge technologies | |
| Management and utilization of intellectual property | Intellectual property investment and utilization | |
| Securing exclusive business domains | ||
| Promotion of digital transformations (DX) | Work efficiency increase through IT utilization | |
| Promotion of individual digital transformation (DX) projects | ||
| AI promotion measures (creation of guidelines, rules, and environment) | ||
| Promotion of automation and labor saving | ||
| Creating a corporate culture that supports innovation | Dissemination of the Company's Purpose | |
| Realization of sustainable and stable business management | Strengthening the recurring business | |
| Creation of a robust business continuity plan | ||
| Enhancement in inventory management | ||
| Introduction of an investment decision-making format | ||
| Fair profit distribution |
Environment・Society・Governance
