Materiality
- Identification process of important issues (Materiality) for the Ajinomoto Group
- Material issues (materiality) for the Ajinomoto Group
- Risks and opportunities relating to important issues (Materiality) for the Ajinomoto Group
- Key initiatives, goals, and KPIs related to risks and opportunities relating to important issues (Materiality) for the Ajinomoto Group
Identification process of important issues (Materiality) for the Ajinomoto Group
The Ajinomoto Group identifies its important issues (Materiality) that have a substantial impact on our ability to create value in the short, medium, and long term through ASV management, taking into account changes in the macro environment for 2050. Once we identify opportunities and risks from materiality, we clarify their importance and priority, and then reflect these matters in our business activities.
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Material issues (materiality) for the Ajinomoto Group
In 2024, the Ajinomoto Group is tasked with addressing the following six key themes, based on expectations from multiple stakeholders and the value that it provides to society. These themes were determined utilizing the Value Creation Framework established in 2023 after several rounds of dialogue with a variety of stakeholders and based on the report from the Sustainability Advisory Council, which is mainly composed of outside experts.
(1) Achievement of a sustainable global environment, (2) Achievement of well-being through food,
(3) Contribution to advanced medicine and prevention, (4) Contribution to the evolution of a smart society*1,
(5) Respect for diverse values and human rights, (6) Reinforcement of our management foundation
*1 A society in which companies, government administration, consumers, etc. connect through networks to solve social issues.
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Risks and opportunities relating to important issues (Materiality) for the Ajinomoto Group
The Ajinomoto Group has identified Group-wide risks and opportunities that require cross-organizational management by analyzing changes in the macro environment, the likelihood of occurrence (high (H), medium (M), and low (L)), and the magnitude of the impact, as detailed in the table below.
The Ajinomoto Group is taking various measures and creating mechanisms to minimize management and business risks while also leveraging them as new opportunities. However, the below table is not exhaustive, and the Ajinomoto Group may be affected in the future by risks that are currently unforeseeable or not currently considered as significant.
Furthermore, future-related matters mentioned in the text are those based on the Ajinomoto Group’s judgement as of the end of this consolidated fiscal year.
Please note that last year, “Financial risks and opportunities” and “Risks and opportunities relating to important issues (Materiality) for the Ajinomoto Group” were disclosed separately. Starting this year, these are integrated and disclosed as business-related risks and opportunities for the Ajinomoto Group.
Characters ● and 〇 indicate risks and opportunities in the table below.
Major risks and opportunities | Likelihood | Magnitude | Significance | |
---|---|---|---|---|
Category | Content | |||
#1 "AminoScience" |
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H | H | Highly significant |
#2 It security and intellectual property |
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H | H | Highly significant |
#3 Brand |
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H | H | Highly significant |
#4 Technological innovation |
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H | H | Highly significant |
#5 Human resources and human rights |
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H | H | Highly significant |
#6 Climate change, natural capital /biodiversity, and resource depletion |
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H | H | Highly significant |
#7 Conflicts, wars, terrorism, riots, and social unrest |
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H | H | Highly significant |
#8 Finance, accounting, and tax |
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H | H | Highly significant |
#9 Utilization of non-financial data |
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M | H | Significant |
#10 Pandemics and natural disasters |
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M | H | Significant |
#11 Consumer preferences and values |
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M | H | Significant |
#12 Population growth, aging population, and capital inflows to developing countries |
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M | H | Significant |
#13 Governance and compliance |
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M | H | Significant |
#14 Economic security (with regards to semiconductors) |
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M | M | Significant |
Key initiatives, goals, and KPIs related to risks and opportunities relating to important issues (Materiality) for the Ajinomoto Group
As described in the “Important issues (Materiality) for the Ajinomoto Group” of “Section 2 Business Status”, the Ajinomoto Group is working on six “Material Themes”, which are (1) Achievement of a sustainable global environment, (2) Achievement of well-being through food, (3) Contribution to advanced medicine and prevention, (4) Contribution to the evolution of a Smart Society, (5) Respect for diverse values and human rights, (6) Reinforcement of our management foundation. The table below shows key initiatives, goals, and KPIs under each Material Theme. The risks and opportunities in the table below are the summary of the aforementioned “Major risks and opportunities, with # in the parenthesis corresponding with the category number of the abovementioned “Major risks and opportunities”.
Major risks and opportunities, key initiatives, goals, and KPIs related to Material Themes (# in the parenthesis in the row “Risks and opportunities” correspond with the category number of the abovementioned “Major risks and opportunities”)
Material Themes | Risks and opportunities (# correspond with the category number of the “Major risks and opportunities”) | Key initiatives | Goals and KPIs |
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Achievement of a sustainable global environment |
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Achievement of well-being through food |
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Contribution to advanced medicine and prevention |
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Contribution to the evolution of Smart Society |
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Respect for diverse values and human rights |
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Reinforcement of our management foundation |
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