Materiality

Identification of materiality (Key issues)

Based on our management philosophy of “contributing to healthcare through the development and sale of leading-edge, superior medical devices,” we have identified six materialities, classified into “materiality in business activities” and “materiality in business infrastructure,” as environmental and social issues that need to be addressed as a priority.

Identification process of materiality

  • 【STEP1】Grasp of issues(Listing)

    We extensively listed environmental, social, and economic issues, referring to international frameworks and guidelines such as the GRI Standards and SDGs, which are frameworks for ESG information disclosure. In identifying materiality, we considered a wide range of social and environmental changes, regulatory and policy trends, and requests from stakeholders, covering our group’s business domains and supply chains.

  • 【STEP2】Extraction and prioritization of materiality(Materiality assessment)

    Among the issues listed (221 elements), areas particularly relevant to our business domain were extracted and evaluated for materiality. Materiality analysis was assessed and prioritized on the two axes of “materiality to stakeholders” and “materiality to our company” while integrating issues with high affinity.

  • 【STEP3】Validation of materiality

    The Sustainability Committee reviewed the evaluation process and the validity of the evaluation results for these materiality candidates. After reviewing the high-priority materiality candidates, we finally identified six materialities. For each identified materiality, we appointed a committee member responsible for developing an action plan, identifying risks and opportunities, and setting long-term targets, KPIs, and target achievement years.

    Type Attribute Materiality
    Business
    activities
    S Contribution to medical care
    Business
    infrastructure
    E Reduction of environmental impact
    S Initiatives to respect human rights
    Promotion of diverse human resources
    (CMS: Career Management System)
    G Quality response to medical needs
    Promotion of corporate governance
  • 【STEP4】 Identification of materiality

    The Sustainability Committee has adopted the identified materiality after deliberation by committee members composed of executive officers. A responsible department in charge reports the progress of the identified materiality initiatives to the Sustainability Committee and continuously works to resolve issues through the PDCA cycle.

Identified materiality

Type Attribute Materiality Action
Business
activities
S

Improving patients’ QOL

Development of products and services that contribute to improving patients’ QOL and enhancement of product procurement capabilities
①Enhancement of development and procurement capabilities
②Conduct seminars and educational training programs
Business
infrastructure
E Reduction of environmental impact Respond to climate change initiatives (Reduce and disclose GHG emissions)
①Calculation and disclosure of GHG emissions
②Environmental impact reduction activities
③Respond to climate change initiatives
S Initiatives to respect human rights Respect human rights based on international norms
①Education and seminars on human rights
②Implementation of human rights due diligence
Promotion of diverse human resources
(CMS: Career Management System)
Diversity & Inclusion
①Disclosure of various systems and data of human resource development
②Creation of an environment where all employees can work productively regardless of their attributes
Human resources development initiatives
①Execution of various measures for human resources development
G Quality response to medical needs Stable supply of safe and reliable medical devices
①Quality management initiatives
②Countermeasures for risks of logistics delays caused by climate change
Promotion of corporate governance Initiatives for the Corporate Governance Code
①Compliance with the Corporate Governance Code
②Regular internal audit (J-SOX)
Initiatives for risk management
①Maintain and follow through on a risk list and practice self-assessment
Promotion of compliance management
①Initiatives for the prevention of compliance violations

Iprogress status

Type Attribute Materiality Progress results for FYE2024 Progress results for FYE2025
Business
activities
S Improving
patients’ QOL
  • Introduction of products that contribute to improving the quality of life for locomotive syndrome (locomotive syndrome)
    :2 cases conducted field of artificial joints
  • Editorial Program for Orthopedic Surgeons
    :6 cases conducted
  • Introduction of products that contribute to improving quality of life for patients with locomotive syndrome
    :3 cases in the field of artificial joints
  • Education program for orthopedic surgeons
    :2 cases implemented
Business
infrastructure
E Reduction of
environmental impact
  • Reduction of GHG emissions (Scope 1 + Scope 2) 
    Result: 1,743t CO2
    (11.5% decrease from the base year of FY2020)
    (Year on year: -18.3% decrease)
  • GHG emissions reduction (Scope 3)
    Result: 22,240t
    (CO₂ Year on year: -20.7%)
  • Introduction of renewable energy
    Result: 28% (consolidated)
  • Domestic waste
    Result: 54.9 (t)
    (FY Mar.2023 70.7 (t) Year on year: -19.9%)
  • Achieved “B-” management level in CDP2023 survey results
    • GHG emissions reduction (Scope 1 + Scope 2)
      Achievement: 1,555 t CO₂
      (21% reduction compared to the base year of March 2020, 10% reduction compared to the previous year)
    • GHG emissions reduction (Scope 3)
      Achievement: 22,060 t CO₂
      (8% reduction compared to the previous year)
      Renewable energy adoption rate: 28% (consolidated)
    • Domestic waste
    • Achievement: 58.0 tons
      (March 2024 fiscal year: 54.9 tons, +5% compared to the previous fiscal year)
      CDP 2024 Survey Results
      Climate Change Survey Results: “B”
      Water Security Survey Results: “B-”
    S Initiatives to
    respect human rights
    • Implementation of human rights education
      Implementation of harassment training for manager 
    • Implement human rights due diligence
      stablishment of human rights due diligence process Creation of human rights due diligence questionnaire for internal use
    • Implementation of human rights education
    • Compliance training
      (For supervisors: Harassment)
    • Results of internal human rights due diligence
       
    Promotion of
    diverse human
    resources
    (CMS: Career Management System)
    • Percentage of female workers in management positions: 10.7%

    • Percentage of men and women taking childcare leave: Men: 28.6%, Women: 100%.

    • Based on the internal environment improvement policy, the following initiatives were initiated by the Human Capital Committee: FY March 2024: (1) Health management: 3 meetings of the Human Capital Committee were held.

    Utilization rate of systems related to work styles: 92.1%

    (Note: Percentage of all full-time employees (excluding sales staff) who use any of the systems (time off by the hour, flextime work, telecommuting, combined work, limited area work, etc.)

    • Percentage of mid-career hires in management positions: 66.7%
    • Percentage of foreign workers: 1.3%
    • Number of free comments on My Voice : 214
    • Percentage of MyCareer updated: 100%
    • Percentage of female workers in management positions: 11.5%
       
    • Childcare leave utilization rate by gender: Men 16.7%, Women 100%
       
    • Based on our internal environment improvement policy, the Human Capital Committee implemented the following initiatives.
      Human Capital Committee meetings held twice
    • 1. Health management
      1-1. Promotion of work styles and lifestyles that suit each individual
      ・Collected information on work style systems at several other companies
      (External environment survey)
      1-2. Promotion of physical and mental health
        Assessment of current smoking status within the company
      (Smokers: 81, Respondents: 254, Smoking rate among respondents: 31.8%)
    • Distribution of leaflets on the dangers of smoking
    • Conducted a company-wide smoking survey.
      (52 out of 81 smokers expressed a desire to quit, with two out of three smokers expressing this desire)
    • Environmental improvements: Posting of smoking separation posters at the headquarters
    • Utilization rate of work-related systems: 92%
      (Note) Percentage of employees (excluding sales staff) utilizing the systems (time-based leave, flexible working hours, telework, combined work)
    • Percentage of mid-career hires among managers: 67.9%
    • Percentage of foreign national employees: 1.3%
    • Number of free comments in My Voice: 115
      (Scores improved in the “Workplace Environment,” “Organization,” and “Vacation” categories of My Voice, and the number of free comments regarding requests or dissatisfaction related to these areas decreased by
    • My Career Update Rate: 100%
    • In accordance with the human resource development policy, including ensuring diversity of human resources, the following initiatives were initiated by the Human Capital Committee.
      (1) Improve engagement (2) Succession planning (talent management) Human Capital Committee held 3 meetings
    • Based on our human resource development policy, which includes ensuring diversity in the workforce,
    • the Human Capital Committee implemented the following initiatives.
      Human Capital Committee met twice
      1. Talent Management
      1-1. Succession planning for managers and above
        Creation of job descriptions for key positions (clarification of requirements)
        Succession planning for key positions (preparation for implementation)
      1-2. Development of global talent
        Selection of global talent candidates
        Administering TOEIC tests for global talent candidates and internal applicants.
      1-3. Promotion of employment for people with disabilities
        Conducting an internal seminar to gather information on creating a supportive work environment and identifying tasks that can be assigned to employees with disabilities.
      2. Strengthening employee engagement
      2-1. CMS (Career Management System)
        Raising awareness of CMS: Introducing our CMS in the Diversity Management Newsletter
    • Implementing a self-career development program for all employees
    • Implementation of My Career   My Voice
    G Quality response
    to medical needs
    • ISO13485 maintenance audit: 3 cases (minor issues)
    •  ISO13485 maintenance audit: 0 cases (minor issues)
    • Measures against the risk of logistics delays due to climate change
      The Osaka Satellite, a new logistics base, was established as a BCP measure and as a countermeasure against logistics delays due to climate change, etc. The new base reduces the risk of logistics delays due to climate change disasters, etc.

    • ①Climate change logistics delay risk countermeasures
      As part of BCP measures and countermeasures against logistics delays caused by climate change, we are promoting the use of satellite logistics hubs.
    • ②Frequent delivery delays in certain areas (Chugoku and Shikoku regions)
      Delivery delays have been significantly reduced.
    Promotion of
    corporate governance
    • Compliance with the Corporate Governance Code
      [Explain] [Supplemental Principle 4-1-3] in “documenting succession planning”.
    • Internal audit (J-SOX)
      Internal control report disclosure
    • “Analysis of causes for failure to achieve management plan targets” is “Explain” [Supplementary Principle 4-1②].
    • Compliance with the Corporate Governance Code[Explain] [Supplemental Principle 4-1-3] in documenting succession planning.
    • Internal control report disclosure
       
    • Risk list management and assessment
      Conducted 2 risk management committee meetings
      Update risk list 
      Implementation of countermeasures against risks
    • Risk list management and assessment
      Conducted 2 risk management committee meetings
      Update risk list 
      Implementation of countermeasures against risks
    • Efforts to Prevent Compliance Violations
      Compliance Committee meetings held 3 times
      Compliance training for new employees
      Training for directors (FY2023 Top Management Seminar/March)
      Training for code instructors twice
      – (25th Fair Competition Code briefing /October)
      – (14th Corporate Ethics Awareness Seminar /February)
      Sharing of JFTC notices (FAQs), etc. as needed
    • Compliance Committee meetings held four times
      New employee training conducted
      Regulations Instructor Training (26th Fair Competition Regulations Briefing Session / October)
      Regulations Instructor Training (15th Corporate Ethics Awareness Seminar / February)