Amano’s 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 FY2025 have been reviewed, and the initiatives and targets for FY2026 have been established.

1. Be Eco-Friendly
FY2025 Performance Self-Assessment: ◎=Achieved, 〇=Partially Achieved, △=Not Achieved / Delayed Progress These linked pages are available only in Japanese.
Materiality	What Amano Group Aims For	Risks or Opportunities (R or O)	FY2025 Performance Self-Assessment	Initiatives for the FY2025 ⇒ Planned Initiatives for the FY2026
(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
			◎	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% annually compared to the five-year average, by purchasing appropriate quantities of paint (Hosoe Factory) ⇒ In Progress
		O	Clean Systems business
			〇	Lead-free: 100% adoption rate of lithium-ion batteries in cleaning robots ⇒ In Progress
			Environmental Systems business
			◎	Expand sales of 14 energy-saving product models ⇒ Expand sales of 15 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 ⇒ Continue initiatives toward achieving carbon neutrality by 2050.
			◎	Initiated efforts to calculate Scope 3 emissions ⇒ Establish a data collection framework for Scope 3 calculation.

2. Be People-Friendly
Materiality	What Amano Group Aims For	Risks or Opportunities (R or O)	FY2025 Performance Self-Assessment	Initiatives for the FY2025 ⇒ Planned Initiatives for the FY2026
(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 : Achieve 100% of the April 2026 recruitment plan ⇒ Achieve 100% of the April 2027 recruitment plan
			◎	Overseas IT Human Resources: Continued to work in the R&D Division ⇒ Continue implementation comprehensively under the new HR system revised in April 2026
			◎	Strengthen Responsiveness to Mid-to long-term Changes : Implementation of reskilling training ⇒ Continue implementation comprehensively under the new HR system revised in April 2026
			◎	Creating a Workplace for Diversity : Well-being Management : Achieve 100% of health checkup rate in FY2025 ⇒ In Progress
			〇	Numerical Targets for Diversity : Female Employment ratio (March 2024 : 16.9% → March 2026 : achieve 20.0%) ⇒ March 2029 : achieve 20.0%
			◎	Ratio of Female Manager (March 2024 : 2.7% → March 2026 : achieve 5.0%) ⇒ March 2029 : achieve 6.0%
			〇	Manager ratio among female employees （March 2024 : 3.6% → March 2026 : achieve 10.0%） ⇒ March 2029 : achieve 10.0%
			◎	Male Childcare Leave ratio : （FY2023 : 40.0% → FY2025 :achieve 50% or higher） ⇒ Average acquisition rate of 65% or higher over the three years from FY2026 to FY2028.
	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 Systems business
		O	〇	Develop New Time & Attendance Software : Development Investment over 1 billion yen, to enhance security and multi-device support for diversified work styles and locations ⇒ Expand sales of the AI Time & Attendance Management System "TimePro-eX" and enhance its functions to improve convenience

3. Provide Safety and Security
Materiality	What Amano Group Aims For	Risks or Opportunities (R or O)	FY2025 Performance Self-Assessment	Initiatives for the FY2025 ⇒ Planned Initiatives for the FY2026
(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	〇	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 Systems business
			◎	Expand Alliances : peripheral services for Time & Attendance, etc ⇒ Enhancement of AI Solution Capabilities in the AI Time & Attendance Management System "TimePro-eX"
			Parking Systems business
			△	Expand ETCGO contract sites ⇒ In Progress
			◎	Expand cashless business sites ⇒ In Progress
			〇	Strengthen and expand recurring revenue model : provide new solutions such as ETCGO and MIRAIRO ID ⇒ Strengthen and expand recurring revenue model : provide new solutions such as LINE-based Digital Parking Tickets and Discount Coupons and Web Commuter Passes, and ETCGO etc.
			Clean Systems business
			〇	Expand cloud services ⇒ In Progress
			△	Increase sales of cleaning robots ⇒ In Progress
			R&D and Manufacture Unit
			◎	Expand cloud compatible services : integrate tablet applications and LINE-based digital parking tickets in the Parking Systems business ⇒ Expand cloud compatible services : LINE-based Digital Parking Tickets and Discount Coupons in the Parking Systems business

4. Responsible Corporate Activities
Materiality	What Amano Group Aims For	Risks or Opportunities (R or O)	FY2025 Performance Self-Assessment	Initiatives for the FY2025 ⇒ Planned Initiatives for the FY2026
(1) Reinforce Corporate Governance / Compliance	Eradication of Forced labor, Excessive labor, and Illegal labor	R	Procurement Unit
			◎	Cover approximately 80% of Amano's domestic non-consolidated transaction value ⇒ Promote improvements based on the results of human rights assessments conducted among suppliers
			Whole Company
			◎	Ensure continued and appropriate operation of the external reporting hotline for stakeholders ⇒ In Progress
			◎	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
	Preventing Corruption and Bribery	R	Whole Company
			◎	Implementation of compliance training for all employees ⇒ In Progress
			◎	Maintain zero incidents of corruption and bribery ⇒ In Progress
			◎	Ensure continued and appropriate operation of the external reporting hotline for stakeholders ⇒ In Progress
			◎	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 ⇒ Develop and update simplified BCPs for each site
			〇	Implement disaster response training, including scenarios for earthquakes and fires ⇒ In Progress
			〇	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%) ⇒ Continue conducting information security training
			◎	Implement response drills for suspicious e-mails ⇒ In Progress