Materiality

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.

Materiality Relation Chart

Important issues (Materiality) for the Ajinomoto Group are essential to the Group’s ability to continue co-creating social value and economic value over the long term. The following is our Materiality Relation Chart, which organizes important issues and their relation to increase corporate value from a long-term perspective. This chart shows how we approach sustainable growth by connecting the power and potential of “AminoScience” (Scientific Possibilities) with the power of stories (Story of Wellbeing) that contribute to the wellbeing of people, society, and our Planet and creating a cycle. We will (1) hone our co-creation capabilities, (2) take the seikatsusha perspective (3) achieve wellbeing, and (4) return co-created shared value through our business activities.
The loop that connects these elements symbolizes infinity. By continuing to connect and rotate elements (1) through (4) on this loop, we will continue to co-create social and economic value in a sustainable manner.

Important issues (Materiality) for the Ajinomoto Group

Important Issues (Materiality) for the Ajinomoto Group (The 12 Requirements of Materiality and Their Explanations)
Important Issues
(The 12 Requirements of Materiality)		 Explanation
1.1
Transformative innovation capability		 Promote the advancement & application of the Amino/Bio Sciences to enable innovations to promote food system quality, resilience & sustainability.
1.2
Transparent & objective		 Promote governance structures essential for creating & promoting social & environmental issue solutions & assume an active role in the setting of standards to evaluate & measure social & economic value creation.
1.3
Constructive engagement for cocreation		 Holistically promote the long-term development of local communities by serving as an honest platformer that enables the efficient use of local assets & resources embedded within platforms of global knowledge.
2.1
Holistic & inclusive perspective		 Create a seikatsusha perspective oriented R&D capability that empowers individuals to realize their own subjective wellbeing.
2.2
Local community perspective		 Create & promote food products & production that enables local rights, promotes interests based upon understanding & respect for culture & values.
2.3
Future generations perspective		 Understand the challenges posed for life stages within future demographics & promote awareness of & enable lifestyles of long-term health through nutrition-based solutions.
3.1
Human wellbeing		 Promote & support human wellbeing as a right through business activity both short & long term.
3.2
Community wellbeing		 Promote & support the wellbeing of individuals by contributing to the attainment of fulfillment & reward in both life & work.
3.3
Planetary wellbeing		 Promote the availability, access & utilization of food in a manner which ensures sustainability on a global scale.
4.1
Living well		 Empower current & future generations to express, co-create & realize healthy lifestyles in a manner free of trade-offs & compromise.
4.2
Co-wellbeing		 Create & promote sustainable business models based on value chains wherein value is created & shared in manner which promotes wellbeing among people regardless of differences in regional location, resources & capabilities.
4.3
Value creating solutions		 Leverage core capabilities as a business to create scalable & collaborative solutions that promote regenerative food systems & societies.
Risks and Opportunities Relating to Important Issues (Materiality) for the Ajinomoto Group
Major risks and opportunities
( Risk Opportunity)		 Related materiality requirements
No.1
“AminoScience”
  • Opportunities for business growth by leveraging the Ajinomoto Group’s strength in “AminoScience,” opportunities to contribute with “AminoScience” anticipating the evolution of modalities in markets
  • Risk of failing to keep pace with the evolution of modalities in markets with “AminoScience” alone
 1.1
No.2
Brand
  • Risk of negative information about MSG and sweeteners spreading, leading to damage to the corporate brand
  • Opportunities for business growth by leveraging strong, locally-rooted brand power
 1.2
No.3
Human resources
  • Risk of inability to secure human resources needed for innovation and business activities due to imbalance between human resource supply and demand
  • Opportunities for human resources who resonate with our purpose to scale co-creation value through proactive investment in human resources focused on diversity and taking on challenges.
 1.1　2.1　3.1　3.2　4.3
No.4
Collection and quantification of on-financial data
  • Opportunities for facilitating participation in the creation and deployment of effective standards through technological innovation enabling the collection of nonfinancial data hat previously could not be measured or analyzed and contributing to the development of quantification methods allowing for opportunity assessment
  • Risk of missing business opportunities due to delays in addressing increasing social value assessment/measurement levels (social demands)
 1.2
No.5
Rise of the SDGs-native generation, spread of social media, and future orientation
  • Risk of being cast aside by young people leading to curtailed business growth and risk of deliciousness no longer being an important element of food
  • Opportunities to facilitate the creation of an ecosystem for realizing regenerative food systems with increased momentum for co-creation of sustainable solutions with other companies and institutions that exist in food systems
 2.3　3.3　4.3
No.6
Climate change, resource depletion
  • Risk of difficulty in procuring raw materials, providing food to seikatsusha (consumers), and continuing business, risk of difficulty in realizing regenerative food systems due to the environmental impact of climate change and animal resource depletion issues (the protein crisis, etc.) making it impossible to ensure global sustainability
 1.3　3.1　3.3　4.1　4.3
No.7
Technological innovation (food, agriculture, environment, digital sector)
  • Opportunities to expand the range of solutions for realizing regenerative food systems, opportunities to promote the spread of technologies that contribute to healthy lifestyles, such as agricultural produce with high nutritional value, opportunities to facilitate the formation of a broad value chain through the shift to digital technologies and the introduction of AI technologies
  • Risk of curtailed business growth or loss of business opportunities due to delays in addressing technological advances related to food (e.g., automated cooking, cultured meat, etc.)
 1.2　2.3　3.2　3.3　4.1　4.2　4.3
No.8
Sustainability consumption/habits
  • Risk of inability to absorb investments/costs due to failure of converting sustainability-related initiatives into economic value as a result of conventionalization of sustainability consumption/habits, and risk of delay in acceptance by consumers and societies in some regions due to the respective advance of sustainability and green technologies that are constantly evolving
 1.1　2.1　2.2　3.1　3.2　3.3　4.3
No.9
Population growth, capital inflows to developing countries
  • Opportunities for increased demand for health and nutrition-based solutions due to global population growth and increased capital inflows from public institutions to developing countries, opportunities for significant expansion of the healthcare market, opportunities to encourage co-creation of solutions, including in emerging countries
 2.3　4.1　4.2　4.3
No.10
Laws and regulations
  • Risk of difficulty in continuing business due to development of regulations and inability to choose renewable energy options in some regions
  • Opportunities for business created by appropriate compliance with laws and regulations related to improving food system resilience
 1.1　1.3　3.1　3.3　4.2
No.11
Governance
  • Risk of discontinuing business due to non-compliance, inadequate quality and safety controls which could lead to poor basic risk management
  • Opportunities that arise from the accumulation of trust from stakeholders through the continuation of safety, quality, and environmental management activities that are unique to our company.
 1.2　2.2　3.1
No.12
Pandemics, political conflicts
  • Risk of difficulty in promoting innovation and conducting business activities due to supply shortages resulting from pandemics, the invasion of Ukraine, etc., risk of stagnation in the penetration and development of Group-wide and business strategies due to restrictions on information sharing across countries resulting from political conflicts, trade wars, etc.
 1.1　1.3　2.2　3.1　3.2　4.1　4.2　4.3
No.13
Terrorism/coups d’etat
  • Risk of local executives and expatriates being detained and risk of being unable to continue business activities in particular countries due to terrorism/coups d’etat
 1.1　1.3　2.2　4.2
No.14
IT Security, Intellectual Property
  • Risk of leak or loss of strategic or confidential information, etc. due to inadequate knowledge management or rapid technological innovation, and risk of security vulnerabilities due to becoming a target of cybercrime
  • Opportunities for further competitive advantage and boosting business growth by strengthening intellectual property strategy, including building an intellectual property portfolio from a global perspective
 1.1　1.2
Key Initiatives and KPIs Related to Important Issues (Materiality) for the Ajinomoto Group

(Click the table to enlarge)