Materiality

Sustainability Management Regime

The Sustainability Committee is the highest decision-making body for sustainability management issues. It is chaired by the CEO, and its members comprise each department head across the group. The Committee, made of the top management, directs company policy and plan implementation on measures against a variety of sustainability issues, including Climate Change.

The Daifuku Group will make our contribution to achieve the SDGs with the efforts all of our employees are making towards materiality through all facets of our business. We aim to achieve a sustainable society and improve our corporate value.

Sustainability vision

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Sustainability vision

Materiality

Initiatives Materiality Reason for importance
Contribute to a smart society Promote innovative technological development and invention In terms of deploying our corporate activities through manufacturing, intellectual property is the most crucial asset to both strengthening our competitive edge and supporting our business going into the future. We will promote constant invention, such as with investment into innovation, to create new value and solve salient problems.
Develop new business domains Making efforts to expand existing fields and carve out new business fields is essential to operating a sustainable company as a materials handling manufacturer. To these ends we actively engage in open innovation with universities and other companies, and promote synergistic M&As.
Cater to customer needs through smart logistics The introduction of cutting-edge technology like AI, IoT, 5G, and robotics to material handling systems has allows us to dramatically increase the value we provide to our customers, such as through the optimization of costs and time spent on distribution, a reduction in our environmental footprint, and improvements to information security. Moreover, by effectively integrating these technologies into not only our products and systems but the entirety of our value chain—from procurement to services and disposal—we are contributing to the early adoption of smart logistics.
Maintain and improve the quality of products and services Optimize production through globalization Considering that overseas sales accounts for 60% of our overall sales, pursuing the optimal production site for each stage of our processes, from procurement to construction and services, is indispensable to solving a host of issues like maintaining quality, as well as reducing our environmental footprint and manufacturing costs. We bring in localized labor, goods and systems to establish a genuine global production system.
Pursue product quality and safety We believe that, as a leading materials handling company, it is crucial for us to continue to make efforts at all of our sites to sustain and improve product and service quality so that we may gain the trust of our customers and provide the most suitable and optimized solutions to every region in the world. We also consider it a critical mission of ours as a mechanical device manufacturer to take every possible precaution in our processes, from design to servicing, to provide for the safe use of our products by our customers.
Enhance operational framework Strengthen governance For Daifuku to achieve the sustainable business we envision for ourselves we cannot do without corporate governance, which builds a fair management system, and internal controls, which govern business through company-internal rules. The strengthening of governance through the sound execution of these two systems is a crucial issue in running our business so that we may gain the confidence of the stakeholders involved with the company and improve our corporate value.
Ensure compliance Laws and regulations are being established and revised on a daily basis, according to the social context and regional characteristics. Even if there is no conflict with laws and regulations, a deviation from corporate ethics and an inability to meet the expectations of society could result in harm to our credibility, as well as decreased corporate value. Activities to counter any tendencies towards corruption that threaten the continuity of business operations must be implemented for all employees without fail.
Manage risk We must assume and take all conceivable measures against the various risks that may threaten business continuity, such as natural disasters, lapses in compliance, hindrances to the acquisition of personnel, problems with safety and product quality, etc. It is important to build a resilient corporate structure that is capable of minimizing the impact of such emergencies.
Ensure responsible procurement in the supply chain In developing our business, it is essential to execute with certainty initiatives together with business partners who provide goods and services. In doing so, we go beyond legal compliance and respond to social demands in areas such as labor, human rights, the environment etc. This kind of long-term relationship with stakeholders leads to true trust building.
Strengthen information security The threat to information security is becoming increasingly sophisticated and malicious, meaning it is important for us to establish and properly utilize a system that enables sufficient protection and management of information about our company and various stakeholders.
Ensure transparent information disclosure and strategic communication As the business environment expands to a global scale, the relationship of trust we have with the stakeholders involved with Daifuku, including our customers, shareholders and investors, employees, business partners, and municipal and regional societies, is the bedrock of our operations. Therefore, we must engage in a dialogue with them in constant good faith and from a multifaceted perspective, and we must disclose information in a transparent manner.
Respect human dignity Protect employee health and safety Based on the concept that safety is the ultimate priority, Daifuku strongly believes that sound business operations are only possible by establishing a corporate culture that gives top priority to workers' safety and health at all workplaces. As a result of this belief, we provide a safe and healthy work environment to all of our employees.
Achieve diversity and inclusion To launch business in multiple regions around the world and continuously grow while producing new value, it is essential that we value diversity, not only by gender and race, but by creed, religion, nationality, educational background, disability, or values.
Create a workplace environment that motivates employees To foster the open and transparent corporate culture that is part of our management philosophy and to contribute to the advancement of customers and society, each employee must be able to experience job satisfaction and feel that their work is rewarding. Moreover, the happiness of our employees provides the corporate value-boosting synergistic effects of improved competitive edge and gaining the best talent.
Cultivate human resources The capabilities required of each employee differ considerably by job category, position, country or region, etc. In order to enable departments and individuals to fully develop their performance potential, the company must support and enhance these capabilities through a suitable framework for human resources training, based on a clear understanding of what is required.
Respect human rights Many people on the Earth currently suffer from human rights (rights that humans are born with to allow them to live the life they wish) abuses. Respect for human rights is a major responsibility that we must take on as a corporate organization active around the world.
Contribute to the environment through our business Keep business operations environmentally friendly Daifuku's various business activities have a considerable impact on issues of global concern, such as climate change and biodiversity conservation. There are also legal risks directly linked to business opportunities related to energy, resources, hazardous chemical substances, etc, which require appropriate countermeasures.
Expand environmentally friendly products and services Products and services that Daifuku offers to society through our customers are affecting the global environment through the use of electricity and resources. As we move into the future, responding to the demand for environmentally sound products and services across national and organizational barriers is a very important task for business continuity.

Determining Materiality

In April 2021, with the aim of both achieving the sustained growth of our business and the sustainable society envisioned by the SDGs, Daifuku reviewed and re-identified the critical issues (materiality*1 ) that make up the core for all of our CSR activities that we identified in June 2014. We have launched a company-wide Sustainability Action Plan that incorporates KPI*2 for each of the issues of the materiality that we have newly identified. Materiality will be revised based on changes in the business environment and social trends at the time of formulation of the Group's medium-term management plan.

  • *1Issues that need to be addressed as top priorities, as they have a significant influence on the environment, society and governance or the evaluation and decision making of stakeholders.
  • *2Key Performance Indicator, a quantitative performance evaluation index that measures target achievement.

Determination process

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Determination process

Input information

After taking international guidelines and the opinions of stakeholders into consideration, we took time to gain an understanding of and organize issues, after which we confirmed their consistency with our company’s policies, including our company’s creed and management philosophy.

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Daifuku's CSR

Evaluation result

We conducted an evaluation of the materiality candidates extracted by internal the project team according to the following methods, and identified 18 materiality aspects.

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Evaluation Result