Identification of Key Sustainability Issues

Materiality at the IINO Group

Our Group has identified five key sustainability priorities (materialities)--Safety & Quality, Environment, Human Capital, Innovation, and Governance & Management Foundation--based on the impacts of our business activities on society and the expectations of our stakeholders.

These areas encompass a range of important issues, including the provision of safe and reliable services and the enhancement of competitiveness through environmental initiatives. Taking into account the relationship between our business activities and sustainability challenges, these materialities serve to clarify the priority issues that our Group should address.

Furthermore, in integrating the identified materialities into our management strategy, we recognize the importance not only of company-wide discussions on how to address social challenges through ongoing dialogue with stakeholders, but also of strengthening the organizational capabilities needed to put these discussions into action. Specifically, we will promote highly effective initiatives by developing workplace environments in which diverse talent can thrive both on land and at sea, and by building organizations composed of individuals with diverse backgrounds and perspectives.

Going forward, we will advance concrete initiatives tailored to the characteristics of each business based on these five materiality areas, striving to achieve both the resolution of social challenges and the enhancement of corporate value.

purpose

Materiality Issue Identification Process

Step.01 Identify social issues: To recognize social issues that relate to our business, we extracted a list of 40 social issues by referring to general social issues (Charter of Corporate Behavior, SDGs), issues unique to Japan (revised Corporate Governance Code), and issues unique to the industry (SASB). Step.02 Gathering feedback from stakeholders: We compiled information on the social issues that are important to stakeholders based on dialogue with each stakeholder (customers, business partners, shareholders, financial institutions, officers, and employees, etc.) and individual questionnaires. Step.03 Internal discussion and evaluation: Members of the Board of Directors discussed and evaluated the compiled social issues based on four perspectives, namely (1) degree of impact on society, (2) degree of impact on business, (3) level of importance, and (4) the Company's response status. Step.04 Determining the goals to be tackled by the Company: Nine social issues identified through discussion and evaluation were set as goals to be tackled by the Company. They were arranged into four groups based on their characteristics, and materiality categories were determined for these groups. Step.05 Determining the appropriateness of the goals: The opinions of stakeholders were again summarized, and the appropriateness of the determined goals was discussed and evaluated by the Board of Directors.

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