Materiality Identification Process

Initiatives toward reviewing materiality in 2023
Deepening materiality
Targeting activities
Prioritization
Identifying social issues to be considered

Initiatives toward reviewing materiality in 2023

assignment	The growing importance of sustainability strategies (materiality identification) that address social and environmental issues such as climate change and human rights Due to the revision of the Sixth Mid-term Management Plan (extending the target year by two years), there is a discrepancy with the current materiality target year (2024).
STEP 1	Identifying and organizing social issues Social issues are extracted from global social issues, the requests and guidelines of each ESG evaluation organization, the materiality of benchmark companies, our corporate philosophy system, past materiality, etc. List of candidate materiality items (long list of 100 items)
STEP 2	Aggregation of social issues and impact assessment of materiality candidates To identify the impact on the Company on financial and non-financial matters, as well as the relevance of the Company's corporate philosophy, medium-term management plan, and business, a survey was conducted of internal and external stakeholders, and interviews were conducted with the Company's management. The results of the questionnaire and interviews are scored and reflected in the list of candidate materiality items. Considering the evaluation indicators that should be emphasized and the number of survey responses by type of stakeholder, weighting is adjusted based on various guidelines and opinions from stakeholders, the impact on stakeholders and the company is analyzed, and a materiality map is created.
STEP 3	Redefining materiality and organizing candidate materialities The materiality was narrowed down to 38 items, and a materiality analysis (importance assessment) was conducted along two axes: "important initiatives as perceived by stakeholders" and "important initiatives as perceived by the company," and a materiality map was created. What is materiality for our company? (Redefinition) Issues that require priority response in order for the Company to pursue profits while achieving sustainable growth and to increase corporate value in order to resolve social issues (ESG issues).
STEP 4	Verification of validity by management and identification of materiality The directors discussed the suitability of the 15 candidate material issues, and after further deliberation at the Management Meeting, four material issues were ultimately identified. After the decision is made at the Management Meeting, it is reported to the Board of Directors for approval. Involved in business strategy Materiality Realizing a sustainable society through a stable food supply Contributing to the well-being of all people through food safety and security Material issues related to our business foundation Respect for diversity and improving employee job satisfaction Strengthening corporate governance
from now on	Organizing sub-materiality and setting goal images and KPIs Organizing sub-materiality linked to each materiality area Setting goals and KPIs based on revised materiality New KPI progress management ~ PDCA cycle started

Deepening materiality (2021)

In April 2021, in conjunction with the establishment of a new corporate philosophy system (vision, mission, values/purpose), a cross-departmental corporate philosophy system formulation team and a materiality review team centered on corporate departments such as the Corporate Planning Department and the Corporate Communications Department joined forces to begin discussions on reconstructing materiality.
In order to newly combine the values that our company holds dear and the activities of each division to solve social issues, we compared the materiality candidates proposed by the review team with our corporate philosophy system and the Joy for Life^® Map, which shows the future we should aim for, and considered new materiality to ensure sustainable growth in both economic and social value.
Materiality is a highly important factor that has a significant impact on our corporate value, and it is important that it is thoroughly examined not only by the practical staff but also by management members, and that its positioning is identified as the will of management. At our company, the final candidate proposal for materiality compiled by a review team consisting of practical staff from across departments was submitted to the Management Meeting, where management members further discussed it. The final proposal was then approved at the Management Meeting, leading to the identification of materiality. Materiality is an important issue for realizing the image that our company should aim to be. We will continue to regularly review the identified materiality in the future, taking into account social trends and changes in issues and needs.

J-Oil Mills' Materiality
(Things I want to cherish)

Activity goals (2020)

We integrated materiality into business plans and the activities of each division, and designated a person responsible for each issue. We also set goals for activities linked to each materiality, and discussed efforts toward those goals, the status of activities, and each issue.

Prioritization (2019)

The 60 issues extracted in STEP 1 were discussed over the course of a year by the relevant departments from two perspectives: their importance to the company and the importance expected from stakeholders. External organizations were also assisted in these analyses, and ultimately the issues that the company should prioritize were narrowed down to 16 issues.

Identifying social issues to be considered (2018)

We formulated our corporate philosophy, "Joy for Life^®," in October 2017. Since our founding, we have created various values through our business, but in order to continue to develop as a company, we have begun to consider how to link these values to the resolution of social issues, identify particularly important issues for realizing our corporate philosophy, and make them widely known both inside and outside the company.