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ANA Group's Recognition of Opportunities and Risks

Identification of Materiality

The ANA Group has targeted becoming the world's leading airline group. We believe that we should be a corporate citizen that develops in tandem with society by resolving global issues in a way that is commensurate with the ANA Group identity. We have identified material issues for the Group to address, and is working to resolve these through incorporation in business strategies, plans, etc.

When defining material issues to be addressed by the Group, we refer to our Mission Statement and Corporate Strategy, ANA Group strengths, and social trends, identifying long-term issues in global society and determining whether these issues are consistent and constant with our vision and strategy and whether we can contribute solutions through our business activities.(Figure1)

Figure1 Identifying Materiality

Conceptual diagram in which three circles, Management Philosophy / Management Strategy, ANA Group's Strengths, and Social Trends, are drawn, and the overlapping areas of the three circles are important issues.

We use a two-axis analysis to determine importance for each issue: the degree of impact on our business (management axis), and the degree of impact on and interest from society (society axis).(Figure2)

Figure2 Society and Management Axes

We identified material issues that are subject to scrutiny and determination of their validity through a continuous cycle of steps which included information collection and discussions with external persons.(Figure3)

Figure3 Confirmation Steps

STEP1 Comprehending / Identifying Issues Understanding Global Trends Regarding Social Issues, STEP2 Assigning Issue Priorities Wide-Ranging Stakeholder Engagement, STEP3 Validity Confirmation Management Management

Materiality in the Present Medium-Term ANA Group Corporate Strategy Period

In the current ANA Group Corporate Strategy, the ANA Group explored material issues in the drafting of its strategy in the assumption that it would target sincere promotion of its ESG management and simultaneous creation of social and economic value in the execution of its strategy. Specifically, we have used a process of understanding the opportunities and risks in executing our corporate strategy(Figure4) and taking the specific identification and confirmation steps laid out on the opposite page to identify material issues given a multifaceted perspective of global trends for societal issues, the economic conditions for our own company, and expectations from stakeholders.(Figure5)

Figure4 Opportunities and Risks in Executing the ANA Group Corporate Strategy

Figure5 Materiality Matrix

The vertical axis (the more important the higher, the social axis consisting of stakeholder interests and impact on society and the environment), and the horizontal axis (the more important the right, the impact on the business of the ANA Group (business philosophy and vision, There is a management axis consisting of the direction of management strategy, business opportunities and risks, and regional revitalization (decline in rural areas in Japan, income and education disparities in emerging countries) slightly below and slightly to the right of the center. The environment (climate change / environmental pollution) is slightly upper right. To the right are human rights (human rights violations in the supply chain) and diversity and inclusion (diversity between customers and employees).

Rationale for Identification as Material Issues

For the ANA Group For Society Major Initiatives Contribution to the SDGs
Environment
  • Suppression of fuel expenses
  • Suppression of future emissions credit purchasing costs
  • Maintaining / improving evaluations by avoiding environmental risk
  • Reducing environmental footprint
  • Introduction of fuel-efficient aircraft
  • Introduction of biojet fuel
Contributions to SDGs 7: AFFORDABLE AND CLEAN ENERGY 13:CLIMATE ACTION
Regional Revitalization
  • Improving profitability by generating new inbound tourism demand
  • Maintaining / improving profitability of domestic airline business
  • Improving profits of international airline business
  • Revitalize regional economies
  • Promoting international exchange
  • Strategic use of group resources
  • Social contribution activities in international and domestic service regions
Contributions to SDGs 8: DECENT WORK AND ECONOMIC GROWTH 9: INDUSTRY, INNOVATION, AND INFRASTRUCTURE 11: SUSTAINABLE CITIES AND COMMUNITIES
Human Rights
  • Maintaining / improving evaluations through avoiding human rights risk
  • Realizing a world that respects human rights
  • Executing human rights due diligence
  • Developing and training group employees
Contributions to SDGs 5: GENDER EQUALITY 8: DECENT WORK AND ECONOMIC GROWTH 10. REDUCED INEQUALITIES
Diversity and Inclusion
  • Improving profitability by generating new demand
  • Providing an issue resolution system to strengthen capacity to respond to customers
  • Realizing an inclusive society
  • Developing / implementing services focusing on customer diversity
  • Developing and training group employees
Contributions to SDGs 5: GENDER EQUALITY 8: DECENT WORK AND ECONOMIC GROWTH
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