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Material issues

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.

ThemeActivitiesRelated SDGs
Promotion of environmental management(E) ● Reduction of greenhouse gas emissions from business activities
  • ・Installation of solar power generation equipment
  • ・Introduction of CFC-free refrigeration and freezing cases
  • ・Installation of air-conditioning systems
  • ・Installation of LED lighting
  • ・Promoting development of environmentally-friendly private brand products

● Appropriate information disclosures
  • ・Disclosure of scope 1, 2 & 3 emissions

● Contribution to environmental activities, environmental awareness, and educational activities
  • ・Collection of discarded plastic bottles in store
  • ・Education about the environment through visits to elementary schools
 [Goal 7] Affordable and Clean Energy[Goal 12] Responsible Consumption and Production[Goal 13] Climate Action[Goal 14] Life Below Water[Goal 15] Life On Land[Goal 17] Partnerships for the Goals
Implementation of human capital management（S） ● Promoting the active participation of women
● Promoting the employment of persons with disabilities
● Initiatives to enhance work-life balance
● Promotion of investment for health		 [Goal 5] Gender Equality[Goal 8] Decent Work and Economic Growth[Goal 10] Reduced Inequality
Quality, safety, and convenience of products and services（S） ● Medication safety / Strengthening medical adherence at dispensing pharmacies
● Appropriate information disclosure
● Participation in drone delivery experiments that can help people who have difficulty shopping		 [Goal 9] Industry, Innovation and Infrastructure[Goal 12] Responsible Consumption and Production[Goal 13] Climate Action[Goal 15] Life On Land
Coexistence with society and local communities（S） ● Training supporters for people who suffer from dementia
● Working closely with local governments/comprehensive community support centers
● Participation in drone delivery experiments that can help people who have difficulty shopping
● Education about the environment through visits to elementary schools		 [Goal 3] Good Health and Well-Being[Goal 11] Sustainable Cities and Communities[Goal 17] Partnerships for the Goals
Promotion of governance management(G) ● Appointment of Independent External Directors to at least one-third of Director positions (3 of 7 Directors to be External Directors)
● Establishment of voluntary Nomination and Compensation Advisory Committee
● Establishment of whistle-blowing system
● White Logistics – Representation of support for the declaration of voluntary actions/Declaration of Partnership Building
● Disclosure of the Code of Conduct for Business Partners/Conduct surveys about business transactions
● Building and operation of BCP with logistics operators and other business partners
● Recognition, selection, and appropriate evaluation of risks to overall business, including IT, development of countermeasures against such risks, and operation of such countermeasures using the PDCA cycle		 [Goal 8] Decent Work and Economic Growth[Goal 10] Reduced Inequalities[Goal 12] Responsible Consumption and Production[Goal 16] Peace, Justice and Strong Institutions[Goal 17] Partnerships for the Goals