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

Initiatives and targets for each materiality for FY2024 were determined as follows.

1. Be Eco-Friendly

Materiality

What Amano Group Aims For

Initiatives for the FY2024

(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&D and Manufacture Unit】

Energy consumption : reduce rate of energy consumption by 1% or more compared to the previous fiscal year (Headquarters, Sagamihara factory, and Hosoe factory)
Water consumption : reduce water consumption by 1% compared to the previous fiscal year (Headquarters, Sagamihara factory, and Hosoe factory)
Waste output : reduce total water output by 1% compared to the previous fiscal year (Headquarters, Sagamihara factory, and Hosoe factory)
: Achieve 100% recycling rate, including general waste (Sagamihara factory)
: Reduce paint waste by 5% compared to the previous fiscal year, by purchasing appropriate quantities of paint (Hosoe factory)

【Clean Systems business】

Develop a model with electrolytic water unit as standard equipment (both cleaning robot and automatic floor scrubber)
　 Electrolytic water unit (Japanese only)

【Environmental Systems business】

Develop new energy-saving products
: Variable airflow with inverter function, reducing power consumption during use

(2)Respond to Climate Change / Contribute to the Realization of a Decarbonized Society

Initiatives for reducing CO₂ emissions / Disclosure in line with TCFD Recommendations

【Whole Company】

Reduce CO₂ emissions : reduce CO₂ emissions by 1% compared to the previous fiscal year
Disclosure in line with TCFD Recommendations : expand the scope of TCFD application to domestic group companies

2. Be People-Friendly

Materiality

What Amano Group Aims For

Initiatives for the FY2024

(1)Promote Diversity / Respect Human Rights
(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

【Whole Company】

Promote Diverse Human Resources :

New Graduate Recruitment (college graduates) : achieve 100% of the April 2025 recruitment plan
Overseas IT Human Resouces: Continued to work in the R&D Division

Strengthen Responsiveness to Mid-to long-term Changes :

Diversity Promotion Training by e-learning: achieve 95% or higher of a training participation rate

Creating a Workplace for Diversity :

Well-being Management : Achieve 100% of health checkup rate in FY2024

Numerical Targets for Diversity :

Female Employment ratio	June 2023 : 16.2% → March 2026 : achieve 20.0% or higher
Ratio of Female Manager	March 2023 : 1.9% → March 2026 : achieve 5.0% or higher
Manager ratio among female employees	March 2023 : 2.4% → March 2026 : achieve 10.0% or higher
Male Childcare Leave ratio : achieve 50% or higher in FY2024

(2)Response to Diverse Work Style

Achieving compliance with laws and regulations, prevention of health hazards, and increased business efficiency by providing products and solutions for diverse work styles

【Information Systems business】

Develop New Time & Attendance Software : Development Investment over 1 billion yen, to enhance security and multi-device support for diversified work styles and locations
　Time & Attendance Software (Japanese only)

3. Provide Safety and Security

Materiality

What Amano Group Aims For

Initiatives for the FY2024

(1)Provide Safe & Secure Products and Services

Developing high-quality products and services that customers can use safely

【R&D and Manufacture Unit】

Improve Safety and Quality : Strengthen front-loading through collaboration between R&D and Manufacturing Unit from the early stages of development

(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

【Information Systems business】

Expand Alliances : peripheral services for Time & Attendance, etc

【Parking Systems business】

Expand ETCGO contract sites ETCGO (Japanese only)
Expand cashless business sites
Strengthen and expand recurring revenue model : provide new solutions such as ETCGO and MIRAIRO ID 　　MIRAIRO ID (Japanese only)

【Clean Systems business】

Expand cloud services
Increase sales of cleaning robots　　Cleaning robots and cloud services (Japanese only)

【R&D and Manufacture Unit】

Expand cloud compatible services : develop web application for regular contracts and mobile payment in Paking Systems business, and enhance robot linked cloud systems in Clean Systems business

4. Responsible Corporate Activities

Materiality

What Amano Group Aims For

Initiatives for the FY2024

(1)Reinforce Corporate Governance / Compliance

Eradication of Forced labor, Excessive labor, and Illegal labor

【Procurement Unit】

Survey of Due Diligence on Human Rights initiatives : conduct by 90 companies aiming to cover approximately 80% of Amano's non-consolidated transaction value in Japan by the end of FY2025

【Whole Company】

Establish an External Reporting Hotline for Stakeholders (∗)
Strengthen the operation of both the Internal Reporting Hotline for Employees and the External Reporting Hotline for Stakeholders (∗)
Conduct human rights training for both executives and employees

Preventing Corruption and Bribery

【Whole Company】

Compliance training for all employees : At least once
Incidents of Corruption and Bribery : None
Establish an External Reporting Hotline for Stakeholders (∗ same as above)
Strengthen the operation of both the Internal Reporting Hotline for Employees and the External Reporting Hotline for Stakeholders (∗ same as above)

(2)Reinforce Risk Management / Dsaster Readiness

Strengthening Disaster Preparedness

【Whole Company】

Formulate a BCP plan for each site
Conduct various trainings : firefighting and evacuation drills, and safety confirmation operations in case of earthquake and fire, each at least once
Continue to arrange necessary supplies in case of disaster

【Information System Unit】

Conduct an IT-BCP training : At least once

Strengthening Cyber Security Measures

【Information System Unit】

Control Critical Incident : Zero occurrences
Conduct Information Security Training by e-learning : At least twice, with 100% of a training participation rate
Conduct Drills to respond to suspicious e-mails : At least twice

Materiality and Initiatives