Identifying and Reviewing Material Issues
MITSUBISHI MOTORS, with recognition of importance of the United Nations Sustainable Development Goals (SDGs), identified material issues as the important issue that we should wrestle from various challenges in the fields of environment, social and governance in FY2018.
During the identification process, we conducted repeated examinations from the perspective of stakeholders’ concern and impact on the Company, and held hearings with experts. After that, we repeated discussions about our material issues at the Sustainability Committee, and the decision was made at the Executive Committee.
In recent years, social trends related to sustainability have changed substantially and rapidly. After carefully considering the most salient impacts our Company has on the economy, environment and human rights, we are flexibly reviewing material issues and enacting measures as necessary. We aim to respond to stakeholders’ needs and expectations as a result.
Process of Identification and Review
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STEP 1
Sorting through Issues and Setting Evaluation Standards
We selected candidates, taking into consideration the SDGs, the GRI standards and external assessments of the Company’s sustainability activities. Furthermore, we have set evaluation criteria to determine priorities based on the scope of impact of our activities (boundary) and consistency with business risks.
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STEP 2
Internal investigation
The secretariat, in consultation with related internal departments, confirmed the priority of the initiatives from the viewpoint of impact on the Company’s business.
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STEP 3
Interviews with outside experts
Interviews were conducted by the secretariat with an expert familiar with social issues. The expert reviewed important issues that the Company should address from the perspective of its impact on society (economy, environment and people).
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STEP 4
Deciding the Materiality and Setting KPIs
The Sustainability Committee deliberated on material issues that reflects internal and external opinions, and the Board of Directors and other bodies gave their final approval. We also set KPIs for each material issue and assigned people to oversee them.
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STEP 5
Reviewing Materiality
After carefully considering the impacts the Company has on the economy, environment and people, including human rights, we flexibly reviews material issues in response to the latest social conditions and the needs and expectations of our stakeholders. These material issues were then deliberated by the Sustainability Committee, and the Board of Directors and other bodies gave their final approval.
History of Materiality Identification and Review
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| FY2019 |
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| FY2020 |
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| FY2021 |
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| FY2022 |
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The Material Issues We Identified
Reflecting Medium- to Long-term Perspectives when Setting Annual Targets Related to Materiality
MITSUBISHI MOTORS needs to reinforce its management base in order to respond to the various changes taking place in the automotive industry, look at the business environment from a long-term perspective, and respond to medium- to long-term risks and opportunities. To achieve these goals, we recognize the importance of setting annual targets on materiality initiatives from a medium- to long-term perspective.
In FY2021, we took the following steps to set annual targets for individual materiality initiatives.
First, we took a long-term perspective, using 30 years as our time horizon (the period used when formulating Environmental Vision 2050) for responding to environmental issues we consider essential in order to conduct business activities. In the Environmental Policy, we particularly focused on climate change, resource circulation and pollution prevention. For other material issues, we looked ahead to 2030, which is the target year for the United Nations’ Sustainable Development Goals (SDGs). We clarified the social issues (risks) the Company recognizes from a long-term perspective, as well as the effects (opportunities) that could be obtained by addressing these issues. After deliberating with the division general managers in charge of implementing the material issues, we clarified the direction of response.
Looking from the medium-term perspective, or three years into the future, we worked with the division general managers responsible for implementing the material issues to identify the external environment and stakeholders’ needs and expectations. We then set medium-term action targets. The Sustainability Committee deliberated the medium- to longterm aspects of respective material issues, including risks and opportunities, as well as the appropriateness of the annual targets and indicators.
Starting FY2022, we have been reviewing the medium to long-term aspects of each material issue and setting annual targets and indicators. We are progressing with our initiatives based on this review.
