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Actions on Materiality

Opinions on Identified Materiality from Stakeholders

Stakeholder Views on Validity of Identified Materiality (FY2014)

Views from an expert on CSR management

Dr. Katsuhiko Kokubu

Dr. Katsuhiko Kokubu
Professor, Dean of Graduate School of Business Administration, Kobe University

I would like to express my respect for the Daigas Group's efforts to identify important aspects as materiality in an advanced and sincere manner. Such efforts will be meaningful only if they are continued. I hope that in the future your company will establish a PDCA cycle to identify materiality. Suppliers to your company are wide-ranging and are capable of having significant effects on their regional communities, which makes it extremely important for the Group to appropriately manage its supply chains if it is to pursue sustainable growth. In light of expanding overseas operations, it will be important for the Group to endeavor to create social values through business activities as well as undertaking business operations while heeding each region's situation, if it is to promote global operations. Striking a balance between the fulfillment of CSR and the creation of social values is necessary. I hope that the newly crafted materiality analysis map will be utilized so as to strike such a balance.

Views from a customer

Mr. Hideo Iida

Mr. Hideo Iida
Representative of organizers, Council of the Kansai Consumers' Association

Projects to develop energy-saving devices and technologies to improve the efficiency of such devices are already under way. For such technologies to be further enhanced and spread to society, appropriate dissemination of relevant information is necessary. What kind of philosophies the Daigas Group — a company having much to do with people's lives — would have regarding workplace safety, environmental preservation and protection of privacy when it conducts business activities is important for winning confidence from customers. I therefore believe that the Group should formulate training programs and compile a code of conduct for employees of affiliated companies and outsourcing companies. Voices from consumers and people, and cases of consumption-related accidents should be regarded as a treasure house that provides sources of innovative business projects in the future. What is important for the Group is to become wise enough to listen to such voices sincerely. I hope that the Daigas Group will keep responding to the needs and demands of consumers and customers.

Views from an expert on the environment

Dr. Koji Shimada

Dr. Koji Shimada
Professor, Department of Economics at Ritsumeikan University

Energy consumption and greenhouse gas (GHG) emissions are expected to rise in view of expanding power-generation businesses by the Daigas Group, which makes it imperative for the Group to appropriately manage GHG emissions toward their reduction. Meanwhile, the demand side has a significant role to play in reducing GHG emissions through the shift to alternative energy sources and energy conservation efforts, which makes it necessary for the Daigas Group to join hands with stakeholders in developing products and services. The Group is likely to be asked to give consideration to possible effects on the environment in terms of biodiversity of the ballast water used by LNG tankers. In the future, the Group is expected to expand its overseas energy business, including acquiring rights to develop shale gas fields in the United States. Under these circumstances, I hope that the Daigas Group and its suppliers will collaboratively promote environmental assessment and management at stages of resources development, LNG processing and LNG transportation.

Views from an NGO

Ms. Kaori Kuroda

Ms. Kaori Kuroda
Executive Director of CSO Network Japan

An internationally active business corporation is asked to recognize both the positive and negative effects on the local society, the environment and the economy from its business activities. If necessary, such a company needs to explain its activities' possible impact on the local community, take preventive measures, and respond appropriately to problems. Taking remedial measures for affected individuals and local communities is necessary. In that case, involvement by stakeholders such as local experts, local municipalities and local people is indispensable, because any actions need to be backed by full understanding of local practices, tradition and culture, as well as relevant local law. In addition, it is advisable to establish a mechanism through which complaints from local people on matters other than products and services are acceptable. I hope that the Daigas Group will become a company that can contribute to local development by providing solutions to local problems.

Views from a human rights expert

Ms. Emi Sugawara

Ms. Emi Sugawara
Associate Professor at Faculty of Law, Osaka University of Economics and Law

A due diligence process on human rights is necessary in the case of human rights violation both in the event of rights being directly violated by a business operator or its business activity, and in the event of rights violation resulting from its relations with suppliers. In that sense, it is necessary to incorporate the evaluation of a company's human rights situation in the management of internal auditing, risk management and supply-chain operations. Recently, companies have been required to grasp human rights situations at their main suppliers in order of priority. They are now required to clarify what percentage of their suppliers are covered by their efforts to recognize human rights situations. If there are no human rights violations, companies are even required to explain how they can claim that to be the case. What I hope for the Daigas Group is that it will provide human rights education not only for the interest of its employees and those being employed but also for the interest of customers and local people the Group is meeting on a daily basis.

Views from an expert on diversity of human resources

Mr. Taro Tamura

Mr. Taro Tamura
Representative Director, Institute for Human Diversity Japan

The Daigas Group is doing more than the average Japanese company regarding the issue of diversity of human resources, such as disclosure of the percentage share of women with managerial positions and the recruitment of handicapped people in excess of the minimum legal requirement, all of which domestic stakeholders are interested in addressing. But challenges remain intact in terms of issues international stakeholders want to see addressed. Such issues include the possibility of disclosing more about human diversity in the fields of employment and labor affairs, and the attitude of the entire supply chain in responding to problems. Regarding diversity, issues and goals related to LGBT and Ethnicity, and disclosure of improvement processes are the fields drawing keen attention from overseas observers. Japanese companies are being encouraged to cover not only their head offices in Japan but also group companies in the diversification of human resources. I hope that the Daigas Group will work out its policy direction for human diversity while broadening the scope of fields and matters covered by the policy.

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