The SUNDRUG Group has identified material issues (materiality) to prioritize in order to fulfil our social and economic role as a social entity.
1. Background behind identification of material issues (materiality)
The Group aims to “create good cheer and fun in daily life to realize healthy, rich lives for the Japanese people,” which is our Corporate Philosophy, through drugstore, dispensing pharmacy, cosmetics store, and variety store operations.
In order to realize this Corporate Philosophy, the Group has come together to fulfill our mission as a part of the service infrastructure in the local community from both a short-term and long-term perspective.
For the Group to improve both social and corporate value, it will be necessary to identify management issues and to plan and implement appropriate measures to solve those issues after accurately ascertaining business opportunities and risks. As a part of this process, we identified material issues.
2. Identified material issues
The Group identified five material issues.
As our initiatives for solving material issues will lead to solving not only social issues but also management issues facing the Group, which then will result in further strengthening of the corporate structure, we will work on every issue in a balanced manner.
3. Process of identifying material issues
We selected material issues from a variety of perspectives, referencing international guidelines and sustainable development goals (SDGs) and considering current and future changes in the social structure, importance in the Group’s management, opportunities and risks, based on reaffirming the Corporate Philosophy.
On the basis of a list of these selected issues, the ESG Promotion Committee reviewed rough plans for each environmental, social and governance item. These were then discussed by the Board of Directors at a meeting chaired by the President for identification and approval.
4. Integration of material issues in management
The Group will pursue both its vision for society and business opportunities by integrating the identified material issues in management plans and management. Specifically, we will reflect them in an action plan for contributing to achievement of SDGs through strategic allocation of management resources and value creating activities.
Recognizing that the Group is both an economic and a social entity, we will develop strong connections with various stakeholders in society and enthusiastically fulfill our responsibilities to contribute to the creation of a sustainable society and ensure sustainable growth of the Group.
