Identification of Materiality
Material Issue Review
We first identified material issues in 2015 (People, Environment, and Regional Revitalization), making partial revisions in the interim. In response to the significant changes in social and economic conditions (megatrends, risks and opportunities, business strategies, stakeholder demands, etc.) over recent years, we decided to completely revise our material issues, taking about one year for the process. We plan to deliberate and formalize medium-term strategies and measures based on eight newly identified material issues.
Material Issue Review Framework
The Corporate Sustainability Department, Corporate Planning Department, and Finance, Accounting, & Investor Relations Department came together to formulate a plan, which they submitted to management. The plan emphasized integration with the ANA Group value creation and corporate strategy.
The Specific Review Process
We conducted our material issue review according to the process detailed below. We performed an impact assessment to identify material issues, incorporating the concept of double materiality. We then consulted with various internal and external stakeholders, including employees, executives, investors, and experts. We intend to consider initiatives and KPIs to address these new material issues in conjunction with the next ANA Group Corporate Strategy.
Identify and Finalize Issues (Long List)
Based on the following information and other sources, we identified issues closely related to the ANA Group and created a long list of initial candidates for material issues.
Interna
- Initial discussions of the next ANA Group Corporate Strategy
- Interviews with members of relevant departments
External
- Opinions from investors, experts, etc.
- Legal disclosure standards and guidelines (ESRS*1, ISO 26000, etc.)
- World Economic Forum Global Risks Report
- *1. ESRS: Specific standards for companies to disclose sustainability-related information based on the EU Corporate Sustainability Reporting Directive (CSRD)
Conduct Impact Assessment
We conducted an impact assessment on the Company (impact of social issues on the ANA Group) and impact on society (impact of our business activities on the environment and society) for each item in the long list (Double Materiality Assessment).
We considered three factors in our impact assessment: (1) Impact of management decision-making; (2) Tiein to the next ANA Group Corporate Strategy; and (3) Measurability.
| Assessment Method | Overview | |
|---|---|---|
| Interviews | Officers | We conducted interviews with the chair, president, other directors, Audit & Supervisory Board members, and executive officers. |
| Questionnaires and Interviews | Employees Responsible for ESG | We issued questionnaires and conducted interviews related to risks and opportunities (risk and opportunity details; degree of impact) with 17 departments, group companies, EPOs, and EPLs*2 most closely related to the material issue candidates. Based on this information, we designated candidates as most important where the likelihood of occurrence was high and fiscal single-year impact was likely to be ¥50 billion or greater. |
| Workshop | Employees | We held a workshop bringing together employees from 35 departments and group companies engaged with human rights and environmental initiatives. We discussed and identified the risks inherent in day-to-day operations. (FY2022) |
| Survey | We conducted a risk assessment on climate change and biodiversity based on TCFD/TNFD scenario analysis. | |
| Other | We performed importance assessments by comparing candidates with management discussions for consistency (e.g., initial discussions regarding the next ANA Group Corporate Strategy). | |
| Assessment Method | Overview | |
|---|---|---|
| Survey | Civil Society | We collected information in connection with our airline-related business from data published directly by 14,000 major NGOs worldwide, conducting an analysis and assessment based on information volume and content in the context of social issues. We designated the top ten issues in terms of information volume as most important. |
| External Dialogue | Business Partners, Business Partner Employees | We obtained information through dialogue with suppliers, which we have conducted to date as part of our business and human rights initiatives. |
- *2. EPO: Employee(s) responsible for promoting ESG management
EPL: Employee(s) responsible for driving organization ESG management
Dialogue With Experts
We conducted a dialogue with three experts, our director in charge, and the material issue formulation team to confirm the validity of our identification process and social impact assessment.
Experts*
ADACHI Eiichiro
Senior Counselor, The Japan Research Institute, Limited
ISHIDA Hiroshi
Executive Director, Caux Round Table Japan
HIBI Yasushi
Director, Conservation International Japan
- Title at the time (December 2024)
Key Comments from the Experts
- The company is proceeding under an appropriate identification process.
- Not all issues can be addressed, so prioritization is the best course of action.
- When assessing the material issue matrix, it would be helpful to tell a story about how each item is expected to change over time.
Management Discussion and Approval
Management discussed material issues selected via the material issues assessment and based on dialogue with experts at the Management Committee on two separate occasions. The Board of Directors also discussed material issues in two separate meetings. After certain revisions, the Company selected eight material issues.
Key Comments from Management
- It is important that executives recognize the significance of increasing the number of material issues from the current three to eight. The reasons for this increase must be communicated widely and understood by employees. (Board Chair)
- Safety is paramount. From that understanding, we must express clearly that safety encompasses not only flight operations, but also employees and information security. (ANA HD President)
- We must think through the potential KPIs to ensure the effectiveness of this initiative. (Outside Director)
