Key Sustainability Issues

Sustainability Material Issues and SDGs
Process for Identifying Material Issues
2023 Medium-Term Sustainability KPI
Targets and Results of CSR Material Issues

Sustainability Material Issues and SDGs

To earn the trust of our stakeholders and continue to be a company that contributes to achieving a sustainable society, we have identified and categorized sustainability issues and identified our material issues, considering both the impact on Glory and our stakeholders. We have also categorized our material issues by linking them to the SDGs. We will contribute to achieving a sustainable society by sincerely addressing various issues facing the world and promoting materiality initiatives.

Process for Identifying Material Issues

We identified material issues based on the following process and set KPIs and have promoted related initiatives. We also linked the identified material issues to the SDGs to which they contribute.

Material Issues and KPIs

In line with the start of the 2023 Medium-Term Management Plan, covering the three-year period from April 2021, we have put together the 2023 Sustainability Policy and identified new material issues from fiscal 2021. We have set KPIs for fiscal 2023 and are implementing various initiatives to achieve them.

Sustainability Policy　Contribute to the sustainable growth of society and promote measures to improve corporate value

The Glory Group aims to realize a sustainable society by working to solve social issues with advanced technologies under Long-Term Vision 2028, which states “We enable a confident world."

Material Issues Map

2023 Medium-Term Sustainability KPI

Material Issues	FY2023 KPIs	FY2021 KPIs	FY2021 results
Promote businesses contributing to a carbon-free society	CO₂ emissions from business activities	15% reduction (vs. FY2013)	25.9% reduction
Development and spread environmentally friendly products contributing to a carbon-free society	Reduce CO₂ emissions in product usage	20,000 tons (vs. FY2013)	8,499tons
Enhance the contribution to biodiversity preservation	Biological and botanical survey Forest conservation activity (plant and thin out trees)	Disclose results 100% as planned	・Implementation of vegetation surveys, and 18%/ 10-year improvement in carbon fixation amounts ・Thinning : 0.94 ha; planting (trees): 13 trees Plan achievement rate : 100 %
Respect for human rights and diversity	Ensure the diversity of directors	Disclose results	One female board member
	Ratio of female employees at time of hire	25% or more (FY2025 Target)	15.6%
	Number of female managers	44 (FY2025 Target)	28
	Number of foreign employees (including number of managers)	Disclose results	13
	Ratio of mid-career hires in management positions	Disclose results	23.1%
	Ratio of Employees with Disabilities	Above 2.3%	2.46%
	Training on human rights	100%	Attendance rate 99.8%
	Number of consultations on human rights	Disclose results	13 cases
	Training costs per employee (education investment)	Disclose results	48,203yen
	Number of whistleblowing cases	Disclose results	13 cases
Maintain a healthy and safe workplace	Annual actual working hours per employee	Disclose results	2,025 hours
	Promote health management	Implementation of health management initiatives	Initiatives such as prevention of and response to COVID-19 and promotion of vaccinations
	Number of days taken paid leave per employee	More than the previous year	14 days
	Lost-time injury frequency rate	Less than the previous year	0.52
	Lost-time injury severity rate	Less than the previous year	0.005
Further promotion of global sustainable procurement	Implement the voluntary checklist (new business partners and primary business partners)	Response rate of 100%	Response rate of 100%
Ensure product safety and quality	Number of occurrences of serious product accidents (PL)	0 cases	0 cases
	Number of severe incidents of non-compliance with laws and regulations (product safety)	0 cases	0 cases
	Number of PL litigations about quality	0 cases	0 cases
	Implementation rate of product safety assessment of newly developed products	100%	100%
Dialogue with Stakeholders	Number of call center tours (customers)	Disclose results	19 cases
	Number of monitoring center visits (customers)	Disclose results	55 cases
	Number of showroom visits (Head Office, Tokyo Office)	Disclose results	55 cases
	Number of factory tours (Head Office and Saitama Factory)	Disclose results	275 cases
	Number of meetings with investors	Disclose results	216 cases
Strengthen corporate governance	Analysis and evaluation relating to effectiveness of Board of Directors	Disclose results	Implemented third -party evaluations
Strengthen corporate governance	Number of meetings of Board of Directors	Disclose results	17 times
Risk identification and management from a global perspective	Number of serious information security accidents	0 cases	0 cases
	Information security education	100%	99.8%
Corporate ethics, legal compliance, and anti-corruption initiatives	Number of serious compliance violations	0 cases	1 case
Promote extension from core business domain	Provide retail solutions that meet contactless and self-service needs	Disclose case studies	Supported retailers' promotion of self-checkout
Build and expand new business models	Support the promotion of DX in restaurants and retail outlets	Disclose case studies	Active development of the DMP business and the kiosk business
Promote IP (Intellectual Property) strategies	Number of domestic patent filed / registered	Disclose results	Number acquired in Japan: 1,085 cases Number of applications in Japan: 171 cases
Promote IP (Intellectual Property) strategies	Number of overseas patent filed / registered	Disclose results	Number acquired overseas: 1,057 cases Number of applications overseas : 75 cases

CSR Material Issues Targets and Results

This section summarizes and analyzes the results of our efforts to address key CSR material issues through fiscal 2020. We categorized 11 material issues into five Priority CSR Themes and organized them into ESG (Environment, Society, and Governance) and New value creation.

Creating new value

Priority CSR Themes: New value creation through business

CSR Material Issues	Targets for FY2020	Results for FY2020
・Build a business model that contributes to the advancement of customers’ business and helps them boost their operational efficiency	・Implementing external proof of concept (PoC) for the facial recognition payment system ・Provide electronic know your customer (eKYC) solutions	・Preparation for implementation of facial recognition payment service PoC at cafes in university facilities, etc. ・Propose eKYC system to financial institutions
・Aim to be a reliable partner to customers, and establish a scheme for periodically confirming progress and customer satisfaction	・Conduct regular reviews with model customers based on big data analysis	・Implementation of customer-initiated PoC (to confirm the effects of behavior change data analysis using in-store beacons) (October 2020)

Environment

Priority CSR Themes: Environmental protection

CSR Material Issues	Targets for FY2020	Results for FY2020
・Reduce energy consumption per employee	・Reduce energy consumption per employee by 1% (base year: FY2010)	・Reduce energy consumption per employee by an average of 1.8% per year (based on FY2010 levels)
・Reduce CO₂ emissions from new products	・Improve energy efficiency of newly developed products by at least 15% compared to previous models	・Increased by 32.4% (Target achieved for nine out of 35 models, of which six products were certified as G-Eco products)
・Carry out biodiversity preservation activities in cooperation with stakeholders	・Carry out 100% of activities planned for this fiscal year	Himeji ・We reduced collaborative activities * ・Forest conservation activity completed as planned: 1 ha of thinning completed ・Formulate a 10-year plan for forest conservation activities (FY2021 - FY2030) ・Continuation of forest conservation activity and biodiversity learning program Kanto Region ・Refrain from forest conservation activities in Tokyo* ・Refrain from cleaning up the riverbanks of the Arakawa River in Tokyo* * Due to preventing the spread of COVID-19

CSR Material Issues

Targets for FY2020

Results for FY2020

・Reduce energy consumption per employee

・Reduce energy consumption per employee by 1% (base year: FY2010)

・Reduce energy consumption per employee by an average of 1.8% per year (based on FY2010 levels)

・Reduce CO₂ emissions from new products

・Improve energy efficiency of newly developed products by at least 15% compared to previous models

・Increased by 32.4% (Target achieved for nine out of 35 models, of which six products were certified as G-Eco products)

・Carry out biodiversity preservation activities in cooperation with stakeholders

・Carry out 100% of activities planned for this fiscal year

Himeji

・We reduced collaborative activities *
・Forest conservation activity completed as planned: 1 ha of thinning completed
・Formulate a 10-year plan for forest conservation activities (FY2021 - FY2030)
・Continuation of forest conservation activity and biodiversity learning program

Kanto Region

・Refrain from forest conservation activities in Tokyo*
・Refrain from cleaning up the riverbanks of the Arakawa River in Tokyo*
* Due to preventing the spread of COVID-19

Society

Priority CSR Themes: Human resource initiatives

CSR Material Issues	Targets for FY2020	Results for FY2020
・Promote work-style reform	・Implement and establish new ways of working ・Further promote of health	・Introduction of new work style (October 2020) Company-wide introduction of flextime system and revision of operational rules for telecommuting ・Continued to be certified as a Health and Productivity Management Organization 2021 (Large-Enterprise Category). ・Implementation of measures against passive smoking (No smoking day at the end of the month and No smoking during working hours every Wednesday) ・Health Promotion Support Event (Walking event)
・Support and secure human resources essential to Glory’s business	・Offer job-level-specific training and support candidates who can lead the company in the future	・Follow-up training for GLORY Business College to develop the next generation of executives

Priority CSR Themes: Promotion of CSR in the supply chain

CSR Material Issues	Targets for FY2020	Results for FY2020
・Conduct CSR-oriented procurement worldwide	・Continue to use the CSR voluntary checklist, and work to improve assessment score ・Pursue activities at the purchasing division at Glory Global Solutions (Singapore) Pte. Ltd.	・Implementation the CSR voluntary checklist (433 primary business partners) and feedback to responding companies Response rate: 98% ・Implementation of CSR voluntary checklist (60 primary business partners) at GLORY Products Ltd. Response rate: 100% ・Implementation of CSR voluntary checklist in the purchasing department of Glory Global Solutions (Singapore) Pte. Ltd. (17 primary business partners) Response rate: 100% ・Implementation of CSR self-inspection checklist at GLORY IPO China Ltd. (65 primary business partners) Response rate: 92%

Governance

Priority CSR Themes: Strengthening of governance

CSR Material Issues	Targets for FY2020	Results for FY2020
・Strengthen corporate governance	・Strengthen supervisory functions of the Board and accelerate decision-making in line with the transition to a company with an Audit & Supervisory Committee (delegation of authority) ・Amend the Corporate Governance Guidelines (June 2020) ・Revitalize Board meetings further and streamlining proposals	・Transition to a Company with an Audit & Supervisory Committee (June 2020) ・Revision of the Corporate Governance Guidelines (June 2020) ・Speed up decision-making by delegating decision-making authority
・Strengthen risk management activities and communicate to Glory Group companies	・Develop risk assessment items further with overseas Group companies ・Response to the COVID-19 pandemic	・Enhancement of risk management activities ・Establishment of a COVID-19 task force and activity development
・Strengthen compliance management and communicate to Glory Group companies	・Enhance and strengthen legal functions in line with business development ・Enhance of the global compliance system ・Implement job-level-specific compliance education for Glory and Group companies in Japan and overseas	・Enhancement of whistleblowing system ・Conducting employee engagement surveys ・Implementation of compliance education within the Group