Sustainability Vision

Hamada’s Materiality (Important Issues) and KPI

At Hamada Co., Ltd., from the Fifth Medium-Term Management Plan onward, we have identified eight important issues that are significant to stakeholders such as employees, families, and the environment and society, and that at the same time have a large management impact on our company.
Determining our company-wide management policy and strategy based on these important issues and working steadfastly on them leads to responding to the expectations and trust of stakeholders, and at the same time to embodying our purpose, “Transform environmental issues into value and inspire the world.” In addition, in order to work toward the 17 goals of the United Nations “Sustainable Development Goals (SDGs),” we will link our important issues with the SDGs and promote our business and activities.

Eight Important Issues (Materiality)

1

Transition from a recycling business to a resourcing business and improvement of productivity

KPI: Added value per employee

Reason

This is the most important indicator for measuring the total economic value generated by all of our business activities and the productivity of the “human capital” that is its source. It objectively shows how much the transition to a “resourcing business” is leading to value creation.

Background / Philosophy

We define added value as “operating profit + personnel expenses.” Personnel expenses include education, training, and welfare expenses, reflecting the fundamental concept of our human capital management: viewing spending for employee growth and happiness not as mere “costs,” but as “investments” to create future value.

2

Realization of the success of diverse human resources and diverse working styles

KPI: Employee engagement score

Reason

We believe that the state in which each employee takes pride and finds meaning in their work and truly wants to contribute to the organization (engagement) is the foundation for innovation and the creation of new customer value.

Background / Philosophy

We sincerely understand, through the voices of employees, whether an environment in which “diverse human resources can thrive” is truly being realized, and connect it to continuous organizational improvement.

3

Human resource development capable of creating new value

KPI: Education cost per employee

Reason

Developing professional human resources capable of creating new value is the most important issue for making the leap to a mid-sized company.

Background / Philosophy

Being a “company where people grow” is the source of the resilience that enables us to keep responding to changes in the external environment.

4

Realization of carbon neutrality

KPI: GHG (greenhouse gas) emissions

Reason

We believe that it is a fundamental promise to society for companies whose core business is the environment to understand their own environmental burden and visualize their reduction efforts.

Background / Philosophy

For our company, which upholds the purpose of “transforming environmental challenges into value,” this is a benchmark that represents the first step in inspiring the entire industry and, ultimately, society by becoming a frontrunner in achieving carbon neutrality ourselves.

5

Strengthening business continuity through disaster preparedness and coexistence with the local community

KPI: 【Designing】Implementation rate and evaluation score of BCP (Business Continuity Plan) training

Reason

In Japan, where natural disasters occur frequently, business continuity is the responsibility of companies that form part of social infrastructure. Enhancing the effectiveness of the BCP through training and improving its evaluation score are indispensable for fulfilling our responsibility to provide a stable supply.

Background / Philosophy

A resilient system that enables rapid business recovery in times of emergency is, of course, essential for ensuring employee safety and maintaining employment; for our company, which upholds “coexistence with the local community,” it is also the foundation for contributing to the resilience of the local community.

6

Achieving both efficiency through DX and resilient information security

KPI: Pass rate of internal IT tests / Number of major security incidents

Reason

While promoting DX is key to improving productivity, it also increases the risk of cyberattacks. In addition to technical defenses, raising the awareness of “people,” who can be the greatest vulnerability, is essential.

Background / Philosophy

By continuously improving IT literacy and building a “human firewall,” we protect information entrusted to us by customers and our own technical information, ensuring the reliability of our business.

7

Further strengthening of compliance and deepening of cooperative relationships across the entire industry

KPI: Pass rate of internal legal tests

Reason

As the “first-call company for environmental solutions,” thorough observance of laws and regulations is an absolute condition for the company’s survival. The high ethical standards of each and every employee support the soundness of the entire organization.

Background / Philosophy

This is a declaration that we place compliance as the top priority in management. Continuing zero legal violations solidifies trust from society and leads the way in improving the image of the entire industry.

8

Strengthening the value of environmental business in society as a whole

KPI: Number of information dissemination to stakeholders

Reason

It is important to contribute to improving the image of the entire industry and establishing its social status through activities such as media interviews, factory tours, and environmental education, and it is indispensable for our own sustainable growth as well.

Background / Philosophy

This is the very activity that embodies our purpose, “Transform environmental issues into value and inspire the world.” It is an indicator symbolizing our open stance as we increase transparency in an industry that tends to be seen as closed and aim to co-create new value through dialogue with society.

Sustainability Report

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