Risks and Opportunities Pertaining to Each Material Issue

Material Issues Risks Opportunities
Evolve Businesses through Technological Innovation
  • Obsolescence of existing business models resulting from the emergence of new technologies, such as IoT and AI.
  • Labor shortage in developed countries, loss of excellent human resources in businesses in which efficiency improvement is delayed.
  • Creation of new markets and provision of innovative services.
  • Utilizing new technologies for optimizing human resources and logistics, increasing competitiveness by promoting work style reform.
Address Climate Change (Contribute to Realization of a Decarbonized Society)

Transition Risk

  • Reduction in demand for fossil fuels due to business restrictions on greenhouse gas emissions.

Physical Risk

  • Damage to business due to the increase in abnormal weather (e.g., droughts, flooding, typhoons and hurricanes).
  • Increase in renewable energy and other business opportunities which will contribute to alleviating climate change.
  • Retention and acquisition of customers by strengthening supply structures that can adapt to abnormal weather.
Cultivate a Motivating Workplace Environment
  • Decline in labor productivity, loss of excellent human resources, missed business opportunities, increase in health-related expenses, and other events that would result from failure to take appropriate measures.
  • Improvement of labor productivity, health and motivation, securing of excellent human resources, enhanced capability of responding to changes and business opportunities, and other events that will result from providing a motivating workplace environment.
Respect Human Rights
  • Business delay or business continuity risk resulting from the occurrence of a human rights problem in business activities that expands (geographically).
  • Decline in credibility that may result from defects in the social infrastructure services we provide.
  • Stabilization of business or securing of excellent human resources resulting from harmonious coexistence with local communities.
  • Establishment of safe, stable supply system for product enabled by the consideration of human rights and improvement of work environment in the supply chain.
Contribute to Healthier and More Enriched Lifestyles
  • Decline in credibility that would result from the occurrence of consumers and service users' safety or health issues.
  • Impact on business of destabilization of the market or social security system based on policy change.
  • Increase in demand for food safety and security and health improvement.
  • Expansion of information, financial and logistics services resulting from an increase in consumer spending or penetration of the internet.
Ensure Stable Procurement and Supply
  • Impact of opposition movement resulting from the occurrence of an environmental problem and worsening relationship with local communities.
  • Structural exhaustion of the overall industry caused by the occurrence of price competition, mainly in the consumer-related sector.
  • Increase in resource demand attributed to an increase in population and improvement of living standard in emerging countries.
  • Winning customer trust or creating new businesses with a stable supply of environmentally friendly resources and materials.
Maintain Rigorous Governance Structures
  • Occurrence of business continuity risk or unexpected loss resulting from the malfunction of corporate governance or internal control.
  • Improvement of transparency in decision-making, appropriate response to changes and establishment of a stable basis of growth enabled by the establishment of a firm governance system.