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Material CSR Issues

Identifying material CSR issues

The JFE Group identified material CSR issues that strongly impact where and how it should invest its resources, making every effort to minimize negative societal impact and maximize the societal value as only the JFE Group can.

The following table summarizes five areas of focus and 13 specific issues identified as material CSR issues.
The JFE Group will respect human rights as a fundamental aspect of its business and activities contributing to society and will advance its efforts to address these material CSR issues based on fair and transparent corporate governance. Such initiatives will demonstrate the Group’s vision of “Contributing to society with the world’s most innovative technology” and will contribute to its sustainable growth as well as the sustainability of society.

Contribution to the Sustainability Development Goals (SDGs) through Business Activity

Development Goals (SDGs)

In September 2015, a UN Summit adopted 17 SDGs to be addressed through worldwide efforts to achieve sustainable development. The JFE Group is responding to this call through contributions achieved by its business activities.

Corporate philosophy

Process for Identifying Material Issues

STEP1Identification

By measuring the businesses of the JFE Group against the following yardsticks, we have identified 35 core issues with respect to society’s expectations for our CSR initiatives.

  • GRI G4 Sustainability Reporting Guideline
  • ISO 26000
  • Sustainability Development Goals (SDGs)
  • ESG survey via external assessment organization
  • Internal documents on employee satisfaction surveys, etc.
  • Benchmark surveys conducted to the three businesses

35 Core Issues

Economy
  1. 1.Thorough compliance
  2. 2.Appropriate disclosure
  3. 3.Corporate governance
  4. 4.CSR management
  5. 5.Customer satisfaction
  6. 6.Supply chain management
  7. 7.Risk management
  8. 8.Transparent resource management
  9. 9.Tax management
  10. 10.Financial performance improvement
  11. 11.Innovation management
  12. 12.Provision of quality products
  13. 13.Information-security management
Environment
  1. 14.Environment management
  2. 15.Financial benefits through environmental investment
  3. 16.Eco-friendly products
  4. 17.Global warming mitigation
  5. 18.Energy efficiency improvement
  6. 19.Efficient use of water resources
  7. 20.Air pollutant emissions control
  8. 21.Resource recycling
  9. 22.Biodiversity
  10. 23.Renewable energy
  11. 24.Chemical substances management and release control
Society
  1. 25.Ensure occupational safety and health
  2. 26.Stakeholder engagement
  3. 27.Sound labor-management relations
  4. 28.Respect for human rights
  5. 29.Human resources diversity
  6. 30.Fair valuation and compensation for employees
  7. 31.Securing and cultivating outstanding human resources
  8. 32.Employee satisfaction improvement
  9. 33.Societal contribution through business
  10. 34.Societal contribution activities
  11. 35.Work-life balance
STEP2Prioritization (Group-wide Meeting)

The 35 core issues identified in STEP 1 are prioritized through two criteria:
(1) Vertical axis: Stakeholder expectations
(2) Horizontal axis: Relevance to business (societal impact)

(1) We identified 13 issues in 5 focus areas by measuring the impact of decision-making on stakeholders for (1), and holding a Group-wide review meeting for (2).

Group-wide Meeting to Prioritize Material CSR Issues
Held on November 29, 2016

Managers from each operating company discussed the prioritization of the 35 core issues from the perspectives of group management and their respective operating companies’ interests.

  • Group-wide Meeting to Prioritize Material CSR Issues-1
  • Group-wide Meeting to Prioritize Material CSR Issues-2
  • Group-wide Meeting to Prioritize Material CSR Issues-3
STEP3Validation

The following process validated 13 material CSR
issues in five focus areas:

  • Confirmation and examination by each operating company
  • Examination and approval by the JFE Group CSR Council*
  • * Participants: president of JFE Holdings (chairperson), executive vice president, corporate officers, full-time Audit & Supervisory Board members, presidents of operating companies, etc.
Higher priority
STEP4Review and Set KPIs

We reviewed material CSR issues identified in FY2016 and set KPIs in FY2017.

  • Review
    • Review by the JFE Group CSR Council
    • Examine comments by third-party experts on the CSR report
  • Set KPIs
    Set KPIs in accordance with the following process and implement PDCA cycles
    • Review at each operating company
    • Submit draft KPIs to the JFE Group Environmental Committee for deliberation
    • Examination and approval by the JFE Group CSR Council

KPIs for Material Issues

KPIs for Material CSR Issues
-Results for FY2019 and Revision to be Applied on and after FY2020-

The JFE Group has established KPIs to address the CSR issues identified in FY2016. It tackles these KPIs by focusing the power of the entire Group.

In FY2020, the Group assessed the previous year’s KPI results. Assessment results together with opinions exchanged with stakeholders were used to further review the KPIs.

The Group will efficiently implement PDCA cycles and promote effective CSR management by setting KPIs that take into consideration the business characteristics of each operating company.

■ KPIs for Material CSR Issues
-Results for FY2019 and Revision to be Applied on and after FY2020-

KPIs for Material CSR Issues