Materiality｜SATAKE Group

Materiality Assessment Process

Based on its Sustainability Policy, the SATAKE Group identifies its material issues (materiality) through the following process.

Identify Sustainability Issues

Based on our business activities and medium- to long-term strategy, we identify sustainability issues that may have a significant impact on society, the environment, and our business. We consider global sustainability priorities, including the SDGs and relevant international guidelines, as well as ESG trends, regulatory developments, and the expectations of our key stakeholders.

Assess the Significance of Each Issue

We evaluate each identified issue through dialogue with key stakeholders and an assessment of the related risks and opportunities. We consider both the potential impact of our business on society and the environment and the potential impact of each issue on our business.

Determine Material Issues

Based on this assessment, we identify the sustainability issues that are most significant to the SATAKE Group and its stakeholders as our material issues. These priorities are reviewed and approved by the Board of Directors and communicated throughout the Group through the Executive Officers’ Committee.

Review Material Issues Periodically

We regularly review our material issues to ensure they remain relevant as our business environment, sustainability priorities, regulatory requirements, and stakeholder expectations evolve.

In this way, the SATAKE Group regularly verifies the validity of its materiality in light of the progress of its business strategy and changes in the external environment, and strives for continuous review and improvement.

Identified materiality

Materiality Category		Key Initiatives
Value creation through business	Contributing to a Sustainable Food System	Advancing grain processing technology Reducing food loss; providing labor-saving and labor-reducing solutions Contributing to the development of food culture
	Creating Customer Value Through Technological Innovation and DX	Product development using AI and sensing technology Providing productivity-improving solutions through data utilization Providing predictive-maintenance and optimal-operation support services Improving customer value through after-sales service
	Contributing to Food Safety and Quality Assurance	Providing grain quality analysis and evaluation services Ensuring analytical quality based on ISO/IEC 17025 Developing and providing technologies to reduce food safety risks Providing technical support through the Sorting and Processing Center Maintaining and improving quality assurance systems
	Advancing Food and Agriculture Globally	Providing solutions that address regional food challenges Contributing to stable food supply through grain processing technology Deploying products and services suited to regional characteristics Supporting agricultural development in partnership with local communities
	Providing Products and Services That Create Environmental Value	Developing and providing energy-saving equipment; reducing environmental impact across the product lifecycle Contributing to reduced greenhouse gas emissions Supporting customers' decarbonization
Building the Foundation That Supports Value Creation	Promoting Talent Development and the Success of Diverse Talent	Respecting human rights and building a comfortable work environment Enhancing education by level and job type Promoting reskilling Promoting the hiring and success of diverse talent
	Building a DX/Data Utilization Foundation and Management Innovation	Promoting digitalization of business processes Improving operational efficiency through AI Visualizing and utilizing management data Enhancing data-driven decision-making
	Strengthening Corporate Governance	Strengthening internal control systems Enhancing risk management structure Providing compliance education; appropriately operating the internal reporting system Strengthening information security measures
	Strengthening Supply Chain Resilience	Developing and continuously improving BCP Assessing and diversifying supplier risk Building stable procurement and supply structures Managing quality and risk across the entire supply chain
	Building a Safe and Rewarding Workplace	Promoting occupational health and safety activities Strengthening disaster and accident prevention activities Fostering a safety culture Promoting health-oriented management Promoting diverse work styles Improving employee engagement

Relationship Between Materiality and Business Strategy

The SATAKE Group positions its identified materiality as an important guide to be reflected in its medium- to long-term business strategy and management decisions. Among these, materiality related to its management foundation is positioned as the basis that supports the continuity and reliability of its business. In addition, materiality related to value creation through business is linked to SATAKE’s growth strategy, including the provision of products and services, technological innovation, and global expansion.