Toray Group Corporate Social ResponsibilityMateriality
Toray Group established its CSR material issues in 2015 and revised them in 2017. In June 2023, the Group reevaluated these issues in response to changes in the business environment and developments affecting the global community. Discussions on the need for material issue revision are held annually, considering both internal and external changes.
Materiality Assessment Process
Toray Group has identified CSR material issues based on the concept of double materiality, conducting research and analysis from both the perspective of importance to stakeholders (impact on stakeholders) and importance to Toray Group (impact on Toray Group) and incorporating advice from external thought leaders.
Materiality Review Process from 2022 to 2023
In order to realize the Toray Philosophy and vision, the Group has identified important issues that need to be prioritized and focused on over the next three to five years, as part of its Medium-Term Management Program.
❶Identifying social issues
The Group selected 35 relevant social issues by referring to range of guidelines including non-financial information disclosure standards (GRI Standards, SASB, and TCFD, etc.), the SDGs, ISO 26000, the United Nations Global Compact, and the OECD Guidelines for Multinational Enterprises.
❷Analyzing and assessing levels of importance
To assess the importance of identified social issues to stakeholders and measure their impact on society, Toray Industries conducted questionnaires, interviews, and desk research targeting major stakeholders, including customers, employees, stockholders, and investors. Internal surveys were also carried out to confirm the significance of these social issues to Toray Group. The results from both assessments were then analyzed and evaluated.
Survey and Evaluation Methods
Toray Group
| Survey/Research Name | Target | Survey/Evaluation Method |
|---|---|---|
| Executive Survey on Materiality | Toray Industries executives | Quantitatively evaluated results of survey of all executive officers at the level of vice president or higher, corporate auditors, and CSR Committee members |
| Survey on Risk Management | Toray Industries department heads and group company presidents | Utilized and quantitatively evaluated existing data from survey that identified priority risks for Toray Group |
| Survey on Long-Term Corporate Vision and Medium-Term Management Program | Long-term Corporate Vision and Medium-Term Management Program materials | Qualitatively evaluated content of the Long-Term Corporate Vision “TORAY VISION 2030” and Medium-Term Management Program “Project AP-G 2025” for alignment with business strategy |
Stakeholders
| Survey/Research Name | Target | Survey/Evaluation Method |
|---|---|---|
| Employee Survey on Materiality | Toray Industries Employees | Quantitatively evaluated results of a survey of department managers and mid-level employees at Toray Industries |
| Analysis of CSR Procurement Surveys / Customer Interviews | Customers | Qualitatively evaluated content of CSR procurement surveys received from client companies during 2022. Interviews conducted with several key customers |
| Analysis of Engagement with Stockholders and Investors | Stockholders and Investors | Qualitatively evaluated opinions of stockholders and investors, collected through dialogue sessions held in 2022 by the Toray Industries Senior Vice President in charge of IR |
| Survey on Global Risks | International Community | Qualitatively evaluated Global Risks Report 2022 from the World Economic Forum |
| Survey on Corporate ESG Activities | General Public | Qualitatively evaluated report on a representative survey of the general public regarding corporate ESG activities |
❸Checking validity and narrowing down key issues
A conversation was held with outside thought leaders through web conferencing, and opinions were exchanged regarding the issues Toray Group should focus more attention on. The thought leaders also provided their opinions regarding the appropriateness of the issue selection process, as well as their expectations for Toray Group.
| Date | November 24, 2022 |
|---|---|
| Participants |
Thought Leaders
Shunsuke Managi
Toray Industries, Inc.Distinguished Professor Kyushu University Sachiko Kishimoto Representative Director and Managing Director Public Resources Foundation Ryusuke Tanaka Programme Officer ILO Office for Japan
Shigeki Matsui
General Manager, CSR Operation Dept. Sadao Kato Assistant General Manager, CSR Operation Dept.
Noriko Osada
Senior Staff, CSR Operation Dept. * Organization names and
positions as of the date above |
Main Opinions from Outside Thought Leaders
Shunsuke ManagiI think Toray's keywords going forward should be supply chain and global. Furthermore, the importance of biodiversity conservation and nature positivity is increasing. There are many areas in which Toray Group can contribute through new technologies and products. So the Group should consider the kinds of risks inherent in its supply chain, which risks can be minimized, and which opportunities can be increased through new product development. In addition, it will become increasingly important to consider trade-offs between the key issues.
Next, I think the Group’s current materiality selection process is excellent, including the fact that it uses weighting based on levels of importance. It was a good idea to group together the items selected for analysis and evaluation, and then narrow them down.
It will also be important to provide feedback within the company about the differences between the internal and external perspectives.
Sachiko KishimotoI believe that the broad perspectives provided by diverse human resources, including those with various gender identities, nationalities, physical characteristics, and disabilities, will lead to greater corporate growth and respect for human rights. I see this as an important theme along with global environmental conservation.
I also think that the aging and shrinking population is Japan's biggest social issue, while healthy longevity is a global issue. As a leading country facing these problems, Japan is in a position to help solve them.
When it comes to conveying material issues, it is important to use frame these issues in a way that shows Toray Group's awareness of the issues and what it can do to help solve them. I also believe it is important that the term “human rights” be used prominently to express the company's stance. In addition, the process for selecting issues seems to be appropriately transparent and objective. It would also be a good idea to summarize material issues and include detailed information in the explanation.
Next time, the Group might host a conversation that includes representatives of international organizations, NGOs, and consumer groups.
Ryusuke TanakaGiven the current trend, companies will soon be required to ensure that all workers' human rights are legally protected. This is based on the growing expectations of the international community for responsible corporate behavior. In order for Toray Group's business to remain sustainable, respect for human rights must be viewed as a pertinent matter and included in material issues. To achieve internationally recognized human rights protection, the Group needs to consider the human rights of those working in all positions wherever the company has influence, including the supply chain. This also includes other workplace aspects such as diversity promotion, working environment improvement, and occupational health and safety.
Therefore, I think it is important to clearly explain and provide visuals illustrating how Toray Group manufactures products across its supply chain, and how it identifies and protects vulnerable workers.
I believe that the Group’s selection process was highly objective. Next time, I think it is important to obtain the opinions of government representatives and industry groups to better understand social expectations, and as a global company, to get more input from relevant stakeholders outside Japan.
Based on the opinions and comments received from thought leaders, 35 social issues were mapped from two perspectives: importance to stakeholders and importance to the Toray Group. Next, these were narrowed down to the 20 candidate material issues shown in the table below.
Finally, considering priorities such as the Toray Philosophy, the results were further consolidated into 11 key issues.
❹Deliberation and approval by Board of Directors
The material issues were selected based on discussion by the Executive Committee, which is a deliberative body of the Board of Directors. The issues were then approved by the Board of Directors.
Toray Group Material CSR Issues
Toray Group has selected a total of 11 material issues for its CSR activities, including five issues relating to the Group's Corporate Philosophy of contributing to society through the creation of new value. The other six issues represent key management foundation points that are consistently necessary to address as important issues.
Contribution to Society through the Creation of New Value
| Accelerating Climate Change Mitigation Accelerate the shift to carbon neutrality by contributing to reduction of global greenhouse gas emissions through innovative technologies and advanced materials and by pursuing emissions reduction across the Toray Group. |
| Promoting a Circular Economy Promote sustainable, circular resource use and production by increasing recycling, using biomass-based raw materials, and converting CO2 into resources. |
| Taking a Nature-Positive Approach Contribute to restoration of the natural environment by offering products that help provide clean water and air, reduce environmental impact, and otherwise benefit the environment and by working to preserve green spaces and properly manage chemical substances. |
| Committed to Healthier Lives Contribute to healthy, hygienic lifestyles by providing advanced materials that promote health and longevity, reduce the burden on nursing care and healthcare providers, improve the quality of medical care, and contribute to human safety. |
| Developing in Collaboration with Stakeholders Focus on sustainable development for both the Group and society by pursuing co-creation with stakeholders and contributing solutions to social issues. Appropriately disclose information and promote dialogue with stakeholders. |
Management Foundation
| Ensuring Safety and Fire Accident Prevention Protect public safety and the personal safety of employees by pursuing zero accidents, thoroughly practicing disaster and fire prevention, and ensuring safe work environments. |
| Ensuring Ethics and Compliance Act with fairness, high ethical standards and a strong sense of responsibility while complying with laws, regulations and social norms to earn trust and meet social expectations. |
| Enhancing Product Quality and Safety Provide safe, high-quality products by further strengthening quality control, quality assurance, and product safety management. |
| Strengthening Corporate Governance Maintain sound management across the Toray Group by reviewing management systems and programs, strengthening internal controls, and implementing risk management (managing risks related to business activities such as economic security, security trade, and information security). |
| Establishing Sustainable Supply Chain Focus on building a stable, sustainable supply chain by promoting environmental conservation and respect for human rights throughout the supply chain. |
| Respecting Human Rights and Promoting Human Resource Diversity Respect internationally recognized human rights and create work environments that allow a diverse pool of human resources to demonstrate their creativity. |
Approach to Materiality
Material Issues and Impact on Toray Group's Businesses (Examples)
| Materiality | Impact on Business |
|---|---|
| Accelerating Climate Change Mitigation |
<Opportunities> Market expansion in the following areas:
Carbon tax and other burdens Soaring energy costs |
| Promoting a Circular Economy |
<Opportunities> Market expansion in the following areas:
Increased waste disposal costs Lost opportunities due to delayed response to circular economy |
| Taking a Nature-Positive Approach |
<Opportunities> Market expansion in the following areas:
Increased costs for further efforts to reduce waste Increased costs for further efforts to reduce industrial water usage |
| Committed to Healthier Lives |
<Opportunities> Market expansion in the following areas:
|
For quantitative analysis results concerning the impact of climate change on Toray Group’s businesses, please refer to Toray Group TCFD Report Ver. 2.1.
Risks related to adopted material issues are comprehensively managed as part of group-wide risk management efforts.
- * For more information on Toray Group's initiatives related to materiality, please see the Materiality View of CSR Roadmap 2025.
CSR Roadmap
In order to promote CSR systematically, Toray Group creates three-year medium-term CSR plans that incorporates materiality.
The 8th medium-term plan, CSR Roadmap 2025, was released in June 2023, based on a resolution of the Board of Directors.
CSR Roadmap 2025 defines activity goals, main initiatives, and key performance indicators (KPIs) for each of the ten CSR guidelines.
＞CSR Roadmap 2025 (Fiscal 2023-Fiscal 2025)
Materiality View of the CSR Roadmap
The relationships between materiality, associated CSR Roadmap 2025 main initiatives, KPIs are described in this table.
Materiality View of CSR Roadmap 2025
