Amano Sustainability

Materiality Formulation

The Amano Group is engaged in the fields of "People & Time" and "People & Air," and we believe it is important to contribute to solving social issues through these businesses while coexisting with all stakeholders.
In order to identify the key issues for the Amano Group, the Sustainability Committee and the Corporate Planning Division conducted a series of studies and deliberations, and in July 2023, identified the following Four Themes and Eight Materialities.
Going forward, the issues and the KPIs will be set in accordance with the materialities in each division and we will promote the efforts to address them.

Materiality Identification Process

To identify materiality, we first extracted social issues by referring to the SDGs and GRI guidelines, and then selected possible materialities by taking into consideration our management philosophy, businesses, and medium- long-term vision.
The selected possible materialities were narrowed down based on what we consider important and what stakeholders expect from us, taking into consideration both business opportunities and its risks, and with this in mind, we held meetings with each department to confirm their recognitions and to listen to their thoughts.
The Sustainability Committee Secretariat and the Corporate Planning Division then compiled and prepared a draft proposal. The draft proposal was then finalized by the Sustainability Committee (Chairman: President and Representative Director), and the Four Themes and Eight Materialities listed above were reported and acknowledged by the Board of Directors.

Management Cycle for Materiality-conscious Management

Materiality and Initiatives

The outcomes of initiatives for each materiality in FY2024 have been reviewed, and the initiatives and targets for FY2025 have been established.

1. Be Eco-Friendly
			FY2024 Performance Self-Assessment : ◎→Achieved、〇→Partially Achieved、△→Not Achieved / Delayed Progress
Materiality	What Amano Group Aims For	Risks or Opportunities (R or O)	FY2024 Performance Self-Assessment	Initiatives for the FY2024 ⇒ Planned Initiatives for the FY2025
(1) Environmental Protection / Reduction of Environmental Impact	Development, manufacture, and sales of products that contribute to reducing CO₂ emissions and the use of hazardous chemicals Improvement of energy efficiency and waste reduction in both user use and manufacturing processes of products	R	R&D and Manufacture Unit
			〇	Energy consumption : reduce rate of energy consumption by 1% or more compared to the previous fiscal year ⇒ In Progress
			△	Water consumption : reduce water consumption by 1% compared to the previous fiscal year ⇒ In Progress
			〇	Waste output : reduce total waste output by 1% compared to the previous fiscal year ⇒ In Progress
			◎	Achieve 100% recycling rate, including general waste (Sagamihara factory) ⇒ In Progress
			△	Reduce paint waste by 5% compared to the previous fiscal year, by purchasing appropriate quantities of paint (Hosoe factory) ⇒ Reduce paint waste by 5% annually compared to the five-year average, by purchasing appropriate quantities of paint (Hosoe Factory)
		O	Clean Systems business
			△	Develop a model with electrolytic water unit as standard equipment (both cleaning robot and automatic floor scrubber) ⇒ Lead-free: 100% adoption rate of lithium-ion batteries in cleaning robots *The page at this link is displayed only in Japanese.
			Environmental Systems business
			◎	Develop new energy-saving products ：Variable airflow with inverter function, reducing power consumption during use ⇒ Expand sales of 14 energy-saving product models
(2) Respond to Climate Change / Contribute to the Realization of a Decarbonized Society	Initiatives for reducing CO₂ emissions / Disclosure in line with TCFD Recommendations	R	Whole Company
			◎	Reduce CO2 emissions : reduce CO2 emissions by 1% compared to the previous fiscal year ⇒ In Progress
			◎	Disclosure in line with TCFD Recommendations : expand the scope of TCFD application to domestic group companies ⇒ Initiated efforts to calculate Scope 3 emissions

2. Be People-Friendly
Materiality	What Amano Group Aims For	Risks or Opportunities (R or O)	FY2024 Performance Self-Assessment	Initiatives for the FY2024 ⇒ Planned Initiatives for the FY2025
(1) Promote Diversity (2) Response to Diverse Work Style	Promoting Diversity and Inclusion Eliminating Gender Discrimination / Protecting Human Rights : prohibiting discrimination based on gender, nationality, disability and other factors	R	Whole Company
			◎	Promote Diverse Human Resources : Recruitment of new graduates (university level) : achieve 100% of the April 2025 recruitment plan ⇒ Achieve 100% of the April 2026 recruitment plan
			◎	Overseas IT Human Resources: Continued to work in the R&D Division ⇒ In Progress
			◎	Strengthen Responsiveness to Mid-to long-term Changes : Diversity Promotion Training by e-learning：achieve 95% or higher of a training participation rate ⇒ Implementation of reskilling training
			◎	Numerical Targets for Diversity : Creating a Workplace for Diversity : Well-being Management : Achieve 100% of health checkup rate in FY2024 ⇒ In Progress
			△	Female Employment ratio (March 2024 : 16.9% → March 2026 : achieve 20.0%) ⇒ In Progress
			◎	Ratio of Female Manager (March 2024 : 2.7% → March 2026 : achieve 5.0%) ⇒ In Progress
			◎	Manager ratio among female employees (March 2024 : 3.6% → March 2026 : achieve 10.0%） ⇒ In Progress
			◎	Male Childcare Leave ratio : achieve 50% or higher in FY2025 ⇒ In Progress
	Achieving compliance with laws and regulations, prevention of health hazards, and increased business efficiency by providing products and solutions for diverse work styles	O	Information System Unit
		O	◎	Develop New Time & Attendance Software : Development Investment over 1 billion yen, to enhance security and multi-device support for diversified work styles and locations ⇒ In Progress *The page at this link is displayed only in Japanese.

3. Provide Safety and Security
Materiality	What Amano Group Aims For	Risks or Opportunities (R or O)	FY2024 Performance Self-Assessment	Initiatives for the FY2024 ⇒ Planned Initiatives for the FY2025
(1) Provide Safe & Secure Products and Services	Developing high-quality products and services that customers can use safely	O	R&D and Manufacture Unit
(1) Provide Safe & Secure Products and Services		O	◎	Improve Safety and Quality : Strengthen front-loading through collaboration between R&D and Manufacturing Unit from the early stages of development ⇒ In Progress
(2) Respond to New Technologies / Be Innovative	Enhancement of software, cloud, IoT, AI, and robotics businesses: : Improving convenience / Adapting to new technologies and diversified operations / Providing appropriate support based on an understanding each customer situation / Improving profitability by expanding stock business	O	Information System Unit
			△	Expand Alliances : peripheral services for Time & Attendance, etc ⇒ In Progress
			Parking Systems business
			△	Expand ETCGO contract sites ⇒ In Progress *The page at this link is displayed only in Japanese.
			◎	Expand cashless business sites ⇒ In Progress
			〇	Strengthen and expand recurring revenue model : provide new solutions such as ETCGO and MIRAIRO ID ⇒ In Progress *The page at this link is displayed only in Japanese.
			Clean Systems business
			◎	Expand cloud services ⇒ In Progress *The page at this link is displayed only in Japanese.
			◎	Increase sales of cleaning robots ⇒ In Progress *The page at this link is displayed only in Japanese.
			R&D and Manufacture Unit
			〇	Expand cloud compatible services : develop web application for regular contracts and mobile payment in Parking Systems business, and enhance robot linked cloud systems in Clean Systems business ⇒ Expand cloud compatible services : integrate tablet applications and LINE-based digital parking tickets in the Parking Systems business

4. Responsible Corporate Activities
Materiality	What Amano Group Aims For	Risks or Opportunities (R or O)	FY2024 Performance Self-Assessment	Initiatives for the FY2024 ⇒ Planned Initiatives for the FY2025
(1) Reinforce Corporate Governance / Compliance	Eradication of Forced labor, Excessive labor, and Illegal labor	R	Procurement Unit
			◎	Survey of Due Diligence on Human Rights initiatives : conducted with 90 companies ⇒ Cover approximately 80% of Amano's domestic non-consolidated transaction value
			Whole Company
			◎	Establish an External Reporting Hotline for Stakeholders ⇒ Ensure continued and appropriate operation of the external reporting hotline for stakeholders
			◎	Strengthen the operation of both the Internal Reporting Hotline for Employees and the External Reporting Hotline for Stakeholders ⇒ In Progress
			◎	Conduct human rights training for both executives and employees ⇒ In Progress
	Eradication of Forced labor, Excessive labor, and Illegal labor	R	Whole Company
			◎	Implementation of compliance training for all employees ⇒ In Progress
			◎	Maintain zero incidents of corruption and bribery ⇒ In Progress
			◎	Establish an External Reporting Hotline for Stakeholders（same as above） ⇒ Ensure continued and appropriate operation of the external reporting hotline for stakeholders
			◎	Strengthen the operation of both the Internal Reporting Hotline for Employees and the External Reporting Hotline for Stakeholders（same as above） ⇒ In Progress
(2) Reinforce Risk Management / Disaster Readiness	Strengthening Disaster Preparedness	R	Whole Company
			◎	Formulate a BCP plan for each site ⇒ In Progress
			◎	Implement disaster response training, including scenarios for earthquakes and fires ⇒ In Progress
			◎	Continue to arrange necessary supplies in case of disaster ⇒ In Progress
			Information System Unit
			◎	Conduct IT-BCP training ⇒ In Progress
	Strengthening Cyber Security Measures	R	Information System Unit
			◎	Continue to record zero critical incidents ⇒ In Progress
			◎	Implement information security training, ensuring full participation (100%) ⇒ In Progress
			◎	Implement response drills for suspicious e-mails ⇒ In Progress