Kyuden Holdings | Materiality (Major Issues)

Basic Approach

The Kyuden Group is promoting sustainability management to simultaneously create social value and economic value through our business, and in April 2022, we identified the major management issues in achieving that goal as materiality.
Through initiatives to address materiality, we will contribute to a sustainable society and achieve growth for our Group over the medium to long term.
Additionally, we will continuously review our materiality in light of changes in social conditions and the business environment.

Materiality and Key Issues

Creation
of economic value and social value through business

１The challenge to achieve carbon negativity

With focus on the carbon reduction and decarbonization of power sources and the promotion of electrification, we will accelerate our initiatives toward becoming carbon negative.

２Advancing solutions
that meet diverse needs

To meet the ever-changing needs of our customers, we will expand and evolve our service domains, including platform-based businesses.

３Value creation and growth
through regional co-creation

To achieve further growth and development for both local communities and the Kyuden Group, we will promote regional co-creation initiatives that simultaneously create social value and economic value.

Further
enhancement of the management foundation

４Human capital management for value creation

We promote human capital management that connects the will of the individual with the vision of the Kyuden Group, enabling people and organizations to grow together and create value.

５Promoting DX to lead corporate reform

We will fully leverage digital technologies to promote improvements to productivity and to streamline, advance, and automate business operation processes.

６Governance enhancements to support innovation and growth

We will accelerate the autonomous management of each business, evolve more sophisticated business portfolio management, and improve capital efficiency across the Group.

Materiality	Key issues
The challenge to achieve carbon negativity	Carbon reduction and decarbonization of power sources (making renewable energy a main power source, safe and stable operation of nuclear power, overseas business, etc.) Promotion of electrification Involvement in and recommendations for energy policy Promotion of energy conservation Contributions to a circular economy Contributions to a nature-positive economy Promotion of environmental management
Advancing solutions that meet diverse needs	Stable energy supply More sophisticated solutions
Value creationand growth through regional co- creation	Comfortable and sustainable community development Revitalization of regional economies
Human capital management for value creation	Value creation through the evolution of people and organizations Acquisition and cultivation of the human resources needed to achieve the business strategy Creating mechanisms that enable individuals to realize their potential Creating an environment where diverse human resources can thrive Creating a foundation for working with peace of mind
Promoting DX to lead corporate reform	Fundamental business operation transformation leveraging digital technologies Promotion of data utilization to support corporate reform Cultivating and securing human resources to promote DX and system development.
Governance enhancements to support innovation and growth	Improvements to the effectiveness of corporate governance Enhancements to the risk management system Strict compliance Enhancements to supply chain management Ensuring information security Expanded stakeholder engagement (building trust with stakeholders) Improvements and enhancements to the financial standing

Materiality Identification Process

Step 1Identifying issues

To simultaneously create social value and economic value (corporate value), we identified issues from two perspectives: "social issues" such as the SDGs and Kyushu's growth strategy, and "Kyuden Group-specific issues" such as realizing the Kyuden Group Strategic Vision.

Step 2Assessing issues

We assessed the items identified in Step 1 on two axes: social value (importance to society) and economic value (importance to the Kyuden Group).

A scatter plot evaluating the importance of each issue based on the two axes of social value and economic value.

Step 3Drafting the materiality proposal

We extracted the issues deemed to be highly important in Step 2 as key issues and categorized them. We then discussed them at the Sustainability Promotion Committee and organized them into a materiality proposal.

Step 4Verifying the validity

We verified the validity of the materiality proposal from Step 3 and the identification process by exchanging opinions with external experts who are well versed in the perspectives of various stakeholders as well as other means.

Step 5Identifying materiality

After the Sustainability Promotion Committee discussed the final materiality proposal, the Board of Directors approved it. In addition, taking into account changes in social conditions and the business conditions of our Group, the Board of Directors discusses the need to review materiality each year.

Materiality (Major Issues)