Identification of Material Issues

Identification Process of Material Issues

Due to the fact that FamilyMart operates convenience stores with a close connection to people’s lives, we believe it is important to adapt to social changes and steadily respond to the needs and expectations of stakeholders.

We therefore identified our material issues for the first time in fiscal 2017 to reassess and manage the social impact of our business. In fiscal 2019 following adoption of a corporate structure focused solely on convenience store business, we reviewed our external environment, social issues, and stakeholder needs and expectations, as we reexamined the material issues. The process of reviewing the five material issues we identified and four foundations supporting solutions brought clarity to our policy of addressing social issues through our business to achieve the SDGs, which in turn makes the FamilyMart Basic Principles a reality.

We will continue making our sustainability activities more effective through PDCA cycles guided by the Sustainability Committee, as the Sustainability Promotion Department works with relevant divisions on targets and KPIs set based on medium-to long-term environmental targets in FamilyMart Environmental Vision 2050 and material issues.

Material Issues Revision and Identification Process

Figure out, organize, and extract issues

Analyze the internal and external environment and extract issues relevant to FamilyMart.

Analysis of external environment

Comprehensively analyze SDGs and other international standards, norms, and initiatives, ESG evaluations, customer demands, activity indicators of benchmark companies, etc.

Major analysis indicators: SDGs, Paris Agreement, United Nations Global Compact, ISO 26000, GRI Standards, SRI/ESG evaluations, SASB, industry targets, etc.

Analysis of internal environment

Analyze FamilyMart’s Corporate Message, norms, business strategy, etc.

Corporate Message, business plan, policies, etc.

Evaluate Materiality

Evaluate and verify the Materiality of the extracted issues’ impact on society and on FamilyMart and identify material issues (in draft form).

Evaluate Materiality graph

Evaluate Appropriateness

Discuss views with departments confer on each issue, ask for advices from external experts, and evaluate appropriateness as well as consistency of resolution to create final draft of Material Issues Matrix.

Identify Material Issues

The “final draft of Material Issues Matrix” created in STEP 3 was classified into five major themes and four basic themes that support each resolution, considering the relationship with the basic philosophy, contribution to the SDGs, penetration into internal and external of the company, explicitness, etc.

They were approved by the Management Meeting and identified after confirmation by the Board of Directors.

Set Material Issue Targets and KPIs

For each material issue theme, proposed targets and KPIs were studied by relevant departments and the Sustainability Promotion Department in view of industry trends, needs of stakeholders and society, and our progress in relevant activities. Decisions were reached after discussion and determination of suitability by the Sustainability Committee. This will be followed by regular reports and reviews of our progress toward targets, as we make these efforts more effective.