Materiality-Related Initiatives and Targets
Risks, Opportunities and Promotion Strategies Related to Materiality
We are improving the effectiveness of our materiality initiatives by focusing on more specific actions through analyzing the impacts that the Group aims to reduce and identifying opportunities for each identified materiality theme.
We are also working to achieve sustainability management through the execution of Medium-Term Management Plan.
| Materiality themes | Impacts to be reduced | Opportunities to be seized |
|---|---|---|
| 1. Create a society in which diverse human resources are engaged and thrive | • Labor shortages that reduce productivity • Inability to input the necessary human resources causing business growth to be impeded • Lack of technology for new areas • Less creativity and imagination among employees • Less intra-Group and intra-organizational synergy |
Boost value creation capacity
• Enhance innovation abilities • Secure human resources • Boost productivity through greater employee engagement |
| 2. Create a comfortable society through innovation and joint activities | • Opportunities lost through stagnation of R&D, etc. • Weak framework for considering new business causing lost business opportunities • Environmental burden triggering natural disasters, which in turn damage social infrastructure • Changes to environmental regulations |
Construct a sustainable profit model
• Shift to a better profit structure • Market growth • Global environmental protection and climate change adaptation |
| 3. Create a safe society through high-quality services | • Productivity and quality reduced due to lack of manufacturing capacity • Deterioration in business sentiment causing customers and business partners to go bankrupt and existing customers to fall away • Lack of understanding of technological trends and customer needs, among other deficiencies, creating the risk of providing services of inappropriate quality and safety, and reducing competitiveness • Information leaks and cyberattacks • Intellectual property lawsuits |
Boost market competitiveness
• More attractive products and services • Optimization of manufacturing costs • Responses to country risk and technological advance |
| 4. Enhance corporate governance and earn the trust of society | • Group governance deficiencies causing vulnerabilities (compliance, risk management, and IT governance) • Fund planning failures • Credibility affected by fraudulent transactions |
Enhance corporate credibility
• Better management quality • Eradication of misconduct |
Materiality-Related Initiatives
The Group promotes initiatives across its major companies for each materiality identified.
Below are some examples of specific initiatives.
| Theme | Status of Fiscal 2024 Initiatives |
|---|---|
| 1. Create a society in which diverse human resources are engaged and thrive | • Introduction and start of operation of a personnel system based on the Must/Will/Can framework, with the aim of aligning the aspirations of the Company and individuals. • Clarification of position roles, responsibilities, and personnel requirements through the introduction of job descriptions • Visualization of talent using career frames and their use in human resources portfolio management • Focused on strategic job rotation to strengthen consulting skills • Continued creation of an environment for career formation that allows diverse human resources to both play an active role and achieve work-life balance |
| 2. Create a comfortable society through innovation and joint activities | • Formulated new strategic domains based on the themes of solving social issues and co-creation • Set long-term goals for new strategic domains • Supported NPOs that focus on eliminating the digital divide and worked to cultivate a market where digital technology can be used safely. |
| 3. Create a safe society through high-quality services | • Analyzing surveys and implementing improvement measures to increase client satisfaction • Activities to strengthen relationships with business partners, such as holding exchange meetings and forums, to increase business partner satisfaction • Rolled out personal information protection measures based on the latest global perspectives to the Group • Internal roll out of OUR Quality, the TIS INTEC Group's common philosophy on quality • Supported the establishment of quality management systems at major Group companies • Strengthened the cycle of intellectual property creation with the aim of improving points of client contact |
| 4. Enhance corporate governance and earn the trust of society | • Promoted BCP by conducting disaster preparedness drills and initial response drills in case of emergency • Implemented Self-Assessment Questionnaire (SAQ) for business partners • Implemented training to entrench OUR PHILOSOPHY • Implemented study sessions to raise the level and awareness of the whistleblower system • Implemented e-learning on human rights • Implemented measures to reduce GHG emissions, such as data center consolidation and planned switchover to renewable energy |
Materiality-Related Indicators and Targets in the Medium-Term Management Plan
We have established sustainability indicators to monitor progress in promoting materiality, and aim to reach each target through the roadmap laid out in our medium-term management plan.
| Theme | Perspectives on Progress Measurement | Indicators | Scope*1 |
Fiscal 2024
Results |
Fiscal 2027
Targets |
|---|---|---|---|---|---|
| 1. Create a society in which diverse human resources are engaged and thrive | Demonstration of employees' capabilities | Job satisfaction | B | 52% | 58% or more |
| Number of consultants | B | 510 | 700 or more |
||
| Percentage of female employees in management positions | B | 12% | 15% or more |
||
| 2. Create a comfortable society through innovation and joint activities | Providing value to society | Strategic domain ratio*2 | A | 48% (New standard) |
52% (New standard) |
| Operating income per person | A | ¥2.9 million | Over ¥3.5 million |
||
| Growth investment | A | Three-year cumulative total ¥72.0 billion |
Three-year cumulative total ¥100 billion |
||
| 3. Create a safe society through high-quality services | Quality demanded by society | Client and service satisfaction | C | 54% | 59% |
| Business partner satisfaction | D | 77% | 81% | ||
| 4. Enhance corporate governance and earn the trust of society | A company chosen by society | GHG emissions (Scope 1 + 2)*3 [Compared to fiscal 2020] |
A | 60% reduction |
70% reduction |
| Renewable energy utilization rate*3
(Offices and data centers) |
B | 57% introduction |
100% introduction in fiscal 2031 |
*1 TIS INTEC Group consolidated; B: TIS and consolidated companies (domestic); C: TIS, INTEC, AGREX, QUALICA, AJS, and TIS Solution Link; D: TIS and INTEC
*2 New standard ratio based on the review of strategic domain in Medium-Term Management Plan (2024-2026)
*3 Scope of fiscal 2024: TIS, INTEC, AGREX, QUALICA, AJS, TIS Solution Link, TIS System Service, TIS Tohoku, TIS Nagano, TIS West Japan, TIS Hokkaido, TIS Business Service, SorunPure, MFEC Public, Business Application, Motif Technology Public, Hongson, MISO Digital, Prain Fintech, Msyne Innovations, and Playtorium Solutions