AEON delight

Material Issues

We promote ESG management that enhances corporate value and contributes to solving social issues through our core business. In particular, we have identified material issues in 12 priority items.
We will make group-wide efforts to tackle issues in the three areas outlined in our Management Principle and AEON delight Vision 2025 – “Safety and Security,” “Labor shortage,” and “Environment” – as well as the supporting areas of “Use of Technology” and “Corporate Governance”.
These efforts to address material issues will also contribute to fulfilling the SDGs.

12 Material Issues

5 Areas 12 Material Issues Opportunities for our Group Risks to our Group Related SDGs
Safety and Security Providing safe living environments Growing need for facilities/equipment resilient against disasters and infrastructure outages
Growing demand for high-quality services in Japan and abroad
Difficulties in continuing operations due to disaster or infrastructure outage 11. SUSTAINABLE CITIES AND COMMUNITIES
Providing hygienic/healthy living environments Growing need for hygienic/healthy living environments Decline in corporate image if infectious disease impact is not prevented
Growing health risks accompanying increased employment of elderly personnel
3. GOOD HEALTH AND WELL-BEING6. CLEAN WATER AND SANITATION
5 Areas 12 Material Issues Opportunities for our Group Risks to our Group Related SDGs
Labor Shortage Resolving labor shortages Promote recruitment of diverse personnel
Growing need for improved productivity and operational efficiency
Risk of contract non-fulfillment and lost opportunities due to lack of personnel 8. DECENT WORK AND ECONOMIC GROWTH
Improving productivity through efficient allocation of talent Expand AEON delight Economic Zone by strengthening relationships with Group management and partner companies Risk of decline in service quality due to insufficient personnel training 4. QUALITY EDUCATION8. DECENT WORK AND ECONOMIC GROWTH
Promoting diversity and inclusion Improve quality and productivity by securing diverse personnel
Expanding need for services as women enter the workforce
Risk of contract non-fulfillment and lost opportunities due to lack of personnel
Decline in corporate power due to inadequate communication skills and multicultural understanding
5. GENDER EQUALITY8. DECENT WORK AND ECONOMIC GROWTH
Promoting multi-stakeholder engagement Develop new services by strengthening relationships with local communities, partner companies, and relevant government agencies Risk of non-compliance, including affiliates and partner companies
Risk of not gaining trust/understanding when expanding overseas due to inadequate handling of target country risks (changes in political, economic, and social environments)
17. PARTNERSHIPS FOR THE GOALS
Appropriate labor management Improve productivity and job satisfaction by reducing employee infection rates and providing comfortable work environments Risk of difficulties in securing personnel due to inadequate enforcement of proper labor management
Employee accident and mental health risks during work
8. DECENT WORK AND ECONOMIC GROWTH
5 Areas 12 Material Issues Opportunities for our Group Risks to our Group Related SDGs
Environment Climate change and global warming countermeasures Growing need for energy-saving and renewable energy use Increased cost burden due to environmental measures and soaring energy prices 7. AFFORDABLE AND CLEAN ENERGY9. INDUSTRY, INNOVATION AND INFRASTRUCTURE13. CLIMATE ACTION
Nature conservation and environmental impact reduction Growing need for environmentally friendly products and services Decline in corporate image and brand power due to water pollution, increased plastic waste, etc.
Stricter laws and regulations related to waste, etc.
12. RESPONSIBLE CONSUMPTION AND PRODUCTION14. LIFE BELOW WATER15. LIFE ON LAND
5 Areas 12 Material Issues Opportunities for our Group Risks to our Group Related SDGs
Use of Technology Use of Technology Raise productivity, improve operational efficiency, and develop new services through digital transformation driven by IoT, sensors, AI, etc. Decline in service quality and market share due to lagging digital transformation
Risk of information leaks
9. INDUSTRY, INNOVATION AND INFRASTRUCTURE
Addressing information society risks Growing need to strengthen facility information security Risk of cyber-attacks leading to operational shutdown or information leak 16. PEACE, JUSTICE AND STRONG INSTITUTIONS
5 Areas 12 Material Issues Opportunities for our Group Risks to our Group Related SDGs
Corporate Governance Strengthening Group governance Curtail costs with prompt problem detection/resolution through strengthened governance Adverse effect on corporate activities and damage to social reputation due to inadequate governance systems
Risk of harm to business performance due to inability to handle target country risks when expanding overseas (changes in political, economic, and social environments)
16. PEACE, JUSTICE AND STRONG INSTITUTIONS17. PARTNERSHIPS FOR THE GOALS

Materiality identification process

STEP 1Examine and identify social issues
Drawing on materials including the SDGs, FTSE, and Global Risks Report, we selected 275 issues from environmental, social and economic challenges based on future megatrends. We then identified 59 issues of particular relevance to our Group.
STEP 2Assess issue importance
We conducted materiality analysis on the 59 issues, using 5 dimensions to assess the risks and opportunities for all businesses and group companies through interviews with relevant personnel. Also rated the importance of risks and opportunities to stakeholders on a three-point scale.
STEP 3Create materiality matrix
We created a matrix of highly important issues with importance to stakeholders and importance to the Group as the two axes.
STEP 4Discussion and identification by top management
Management deliberated and approved the results within management and ESG/KPI review meetings.
STEP 5Develop materiality KPIs
Developed targets for 2030 based the 12 material issues
Materiality Matrix

Targets

Material Issues 2030 Targets
Safety and Security
  1. Providing safe and secure living environments
  2. Providing hygienic/healthy living environments
Expand provision of safe and secure services
  • BCP and infection control-related services comprise 20% of sales (1.9% of FY2020 sales)
Labor Shortage
  1. Resolving labor shortages
  2. Improving productivity through efficient allocation of talent
  3. Promoting diversity and inclusion
  4. Promoting multi-stakeholder engagement
  5. Appropriate labor management
Improve business continuity by solving labor shortages
  • 30% female and non-Japanese managers (FY2020 6%)
  • Reduce permanent employee turnover by 50% (FY2020 5.6%)
  • Reduce overtime hours per person by 50% (FY2020 137 hours/person)
  • Zero major work-related accidents per year (FY2020 0 incidents)
Environment
  1. Climate change and global warming countermeasures
  2. Nature conservation and environmental impact reduction
Expand environmentally-friendly business
  • GHG emission reduction-related services comprise 10% of sales (2.1% of FY2020 sales)
  • Zero gasoline-powered work vehicles (AD non-consolidated FY2020: 118 gasoline vehicles out of 289 (40%))
  • Environmentally-friendly products comprise 50% of materials business sales (13% of FY2020 sales)
  • 50% recycling circulation (bottle to bottle) rate for installed vending machines (FY2020 10%)
Material Issues Initiatives to support the above activities
Use of Technology
  1. Use of Technology
  2. Addressing information society risks
Leverage the latest technology to research and develop new services
  • Enable unmanned management through robotization of facilities
  • Reduce facility lifecycle costs by using FM big data and AI to diagnose buildings
  • Develop solutions business leveraging our unique FM data
Corporate Governance
  1. Strengthening Group governance
Establish robust Group governance system in Japan and abroad
  • Establish a ‘three lines of defense’ structure
  • Corporate Culture Committee and Group Governance Enhancement Promotion Committee continue to operate