Risks and Opportunities Pertaining to Each Material Issue

Material Issues Risks Opportunities
Reinvent businesses through technological innovation
  • Obsolescence of existing business models accompanying the rise of new technologies such as IoT and AI
  • Labor shortages in developed countries; flight of excellent talent from businesses that are slow to streamline
  • Creation of new markets; provision of innovative services
  • Optimization of human resources and logistics by utilizing new technology; enhanced competitiveness by reforming how we work
Address climate change (contribute to realization of a low-carbon 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
  • Failure to handle the issue properly could lower worker productivity, cause excellent talent to leave, erase business opportunities, and add to health-related expenses
  • Providing a motivating workplace environment raises worker productivity, improves health and motivation, retains excellent talent, and enhances adaptability to change and new business opportunities
Respect human rights
  • Human rights problems occurring in more geographically expansive business activities could delay operations or pose a continuity risk
  • Insufficient provision of social infrastructure services could erode trust in the company
  • Co-existence with local communities stabilizes business and retains excellent talent
  • Consideration for human rights in the supply chain and improved working environments will build a safer and steadier product supply network
Contribute to healthier and more enriched lifestyles
  • Safety and health issues affecting consumers and service users could erode trust in the company
  • Changes in government policy could impact business by destabilizing markets or social insurance systems
  • Advancing food safety/reliability and health will boost demand
  • Growth in individual consumption and the spread of the internet will expand services in information, finance and distribution
Ensure stable procurement and supply
  • Impact from a backlash accompanying the outbreak of environmental problems or worsening relations with local communities
  • A price-cutting war in consumer goods could structurally batter the entire industry
  • Higher demand for resources due to population growth and higher living standards in emerging countries
  • A steady, environmentally-friendly supply of resources and materials wins client trust and creates new business
Maintain rigorous governance structures
  • Business continuity risks and unanticipated losses arising from dysfunctional corporate governance or internal controls
  • Establishing robust governance will raise decision-making transparency, enable proper adaptation to change, and lay the foundation for steady growth