Materiality

In 2023, SMK has identified material issues for sustainable enhancement of corporate value.
We will advance specific initiatives for each materiality based on prioritization established by organizing and assessing stakeholder interest and the impact on our business.

Materiality Assessment

1. Medium Term Business Planning Committee, CSR Committee*, Corporate Planning Dept.
   Organized the business environment, opportunities, and risks, based on our Philosophy, Vision, Charter for Corporate Behavior, Employee Code of Conduct, and Medium-Term Business Plan.
2. Executive Officers' Meeting, Outside Officers' Meeting
   Identified key issues,taking into account stakeholder engagement.
3. Board of Directors' Meeting
   Using a double materiality approach, prioritized key issues using a three-level matrix based on their impact on our business and stakeholder interest, including social and environmental impacts.

• *

  Currently called the CSR/Sustainability Committee.

Materiality Matrix

*

　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　Deliberated and approved at the Board of Directors Meeting in November 2023.

• *

  Stakeholder interest is an indicator that comprehensively reflects the level of social and environmental impact.