SHO-BOND’s Materiality
The SHO-BOND Group has designated four Materialities based on social demands and the expectations of stakeholders. The Materialities are our priorities in order to achieve sustainable growth with our stakeholders as the SHO-BOND Group plays a role in solving social issues while continuing to increase corporate value.
The Materialities involve internal activities and how business activities affect society. We believe that all of these activities contribute to accomplishing the Sustainable Development Goals and achieving the SHO-BOND Group’s Corporate Philosophy.
The SHO-BOND Group will continue to leverage business activities for constant progress concerning these Materialities in order to contribute to long-term sustainable growth and the development of a sustainable society.
Process to Identify Materiality
In April 2020, the SHO-BOND Group identified materiality with the participation of employees, senior management and prominent individuals outside the group.
The SHO-BOND Group will continue to upgrade Materiality initiatives with the input of the group’s internal and external stakeholders.
Identification of social issues | To identify materiality, we first identified 55 social issues to be examined. This process incorporated the SHO-BOND Group’s policies, social demands, the expectations of stakeholders and other factors. |
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Establishment of priorities | The 55 issues were ranked by using the perspectives of stakeholders and the group’s businesses. The top 22 issues were then chosen as the priority social issues. | |
Materiality proposal | The 22 issues were divided into four groups based on their characteristics in order to establish a materiality proposal. | |
Confirmation of suitability | The suitability of the materiality proposal, including the process used to create the proposal, was checked with the participation of senior management and the input of prominent individuals outside the SHO-BOND Group. | |
Identification and disclosure of materiality | Final conceptual diagram of materiality, with external input, and approval by the Board of Directors. |
Materiality Matrix
To identify materiality, a materiality matrix was created by evaluating social issues from the standpoints of the importance to stakeholders and the importance to business operations. Then 22 social issues that were very important from both standpoints were selected as the issues that the SHO-BOND Group should target.
To determine importance to stakeholders, evaluations were performed by using the perspectives of shareholders and other investors in Japan and other countries, local governments, government agencies and other sources of orders for the SHO-BOND Group, manufacturers of building materials, chemicals and other materials procured by the group, construction firms and other subcontractors, residents near business sites and other members of society, government actions and policies, and other stakeholders. For importance to business operations, evaluations were performed by the group’s senior management, including outside directors, and employees.
Materiality and the Sustainable Development Goals
The priority social issues were divided into four categories based on their characteristics in order to determine materiality. We also identified SDGs that have strong ties with this materiality.
Social issues | Materiality | Corresponding SDGs | |
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Comprehensive maintenance system backed by the organizational capabilities Contribute to the development of social infrastructure by using partner companies interactions and the group’s aggregate resources for all maintenance processes, whether large or small. |
Ensure sustainable consumption and production patterns. |
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Strengthen the means of implementation and revitalize the global partnership for sustainable development. |
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Productivity improvement through technology development Improve productivity by combining chemical and civil engineering technologies to create new technologies and by conducting training and education programs. |
Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. |
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Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation. |
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Sound governance and measures for more improvements Make sound and transparent governance to maintain the foundation for relationships with all stakeholders. |
Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and bulid effective, accountable and inclusive institutions at all levels. |
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Contribution to the development of sustainable cities Position the social infrastructure maintenance business as a key component of the development of sustainable cities that are environmentally responsible. |
Make cities and human settlements inclusive, safe, resilient and sustainable. |
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Take urgent action to combat climate change and its impacts. |
- Environment
- Governance
Sustainability Policy
The SHO-BOND Group has established a Sustainability Policy to improve the medium to long-term corporate value, and contribute to creating a sustainable society by continuously implementing initiatives in accordance with materiality priorities.
Comprehensive Maintenance System backed by the organizational capabilities
Productivity improvement through technology development
Sound governance and measures for more improvements
- Strengthen corporate governance
- To meet the expectations of stakeholders for sustainable growth, our corporate governance is structured for transparency, fairness, and the ability to make management decisions with speed and confidence.
- Strengthen risk management
- Numerous measures are taken for the proper management of risk, including a system of internal controls, a culture of recognizing and prudently taking on risk, and a risk identification, evaluation and monitoring system that incorporates ESG considerations.
- Strict compliance with laws and regulations/fair and ethical business practices
- There are extensive education and training programs about compliance for employees as well as monitoring and other activities in order to maintain a framework for fair business practices.
- Information security measures
- IT systems and other measures are used for information security and there are strict measures for the protection of personal and other confidential information. In addition, education and training programs are provided to employees in order to reinforce their commitment to information security.
- Proper management of intellectual property
- We properly manage and protect our intellectual property rights and perform surveys and other procedures to prevent the infringement of the rights of others.
Contribution to the development of sustainable cities
- Sustainable use of resources
- We contribute to the sustainability of public-sector resources by using advanced maintenance technologies for life extension of infrastructure.
- We are dedicated to playing a role in creating a society where resources are recycled. We use renewable resources and parts across the entire supply chain as much as possible and utilize resources in a manner that supports sustainability.
- Proper management of waste materials
- We use proper and responsible activities for the management and disposal of waste materials created by our business operations.
- Measures to combat climate change
- We are contributing to the fight against climate change by constantly working on the reduction of greenhouse gases generated by our business operations.
- We understand that life extension of infrastructure helps lower greenhouse gas emissions. Skills as an infrastructure maintenance specialist are used for the utilization of business operations to play a part in combating climate change.
- We are committed to using infrastructure reinforcement for natural disaster resilience and other business activities in order to play a role in the fight against climate change on the entire society.
- Assessment of environmental impact of projects
- We will comply with the environmental requirements of every project and take other actions for minimizing the effects of our activities on the environment and society.
Non-Financial Information Summary
Materiality | Policies | KPI | FY2022 | FY2023 | FY2024 | ||
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Target year | |||||||
Contribution to the development of sustainable cities
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0 | Every year | 0 | 0 | 0 | |
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3,929t [-25%] |
FY2031 | 5,238t [±0.0%] (6.5t-CO2 /100 million yen) |
5,474t [+4.5%] (6.5t-CO2 /100 million yen) |
5,012t [-4.3%] (5.9t-CO2 /100 million yen) |
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Comprehensive maintenance system backed by the organizational capabilities
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MLIT:78 or higher NEXCO:80 or higher |
Every year | MLIT:80.0 NEXCO:86.0 |
MLIT:80.6 NEXCO:86.5 |
MLIT:80.1 NEXCO:86.5 |
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100% | Every year | 85.9% | 94.3% | 96.3% | ||
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0 | Every year | 0 | 0 | 0 | ||
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0.7 or lower | Every year | 0.67 | 0.00 | 1.13 | ||
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15% or more | Every year | 9.5% | 16.2% | 25.8% | ||
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42 | FY2025 | 26 | 30 | 36 (Target: 38) |
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2.8% or more | Every year | 3.3% | 3.1% | 4.3% | ||
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100% | Every year | 100.0% | 74.0% | 66.0% | ||
Sound governance and measures for more improvements
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100% | Every year | 100% | 100% | 100% | |
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100% | Every year | 98.8% | 100% | 100% | ||
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0 | Every year | 0 | 0 | 0 | ||
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100% | Every year | 90.3% | 100% | 100% |