Materiality

In order to contribute to the development of people and society and to achieve sustainable growth in the future, we have identified the materiality that we should prioritize by leveraging our strengths.

Positioning of Sustainability Strategy

Corporate Philosophy

Corporate
Mission

1. To further build company credibility with the public and to contribute to society by providing products and services that achieve customer satisfaction.
2. To build on our knowledge and strive for technological innovations in order to improve the companyʼs performance.
3. To harness the collective efforts of all individuals in order to maximize company returns.

Mission
Statement

We leverage superior technology to contribute to our Customers and Society, in sustainable manner, with innovative Products and Services, through a competent workforce, built on a culture of Customer Focus, Integrity and Respect to our Stakeholders.

Business, Management

Core Values
（i care !）

Integrity, Customer Focus,
Accountability, Respect,
Entrepreneurial Mindset, Innovation

Business Model
Value Creation
Process

Global Automotive Business, Japan Business,
International Business, Production・SCM・Procurement,
Corporate Planning, Corporate R&D

Business Strategy
Mid-term Plan

Sustainability

Sustainability Strategy
Materiality (Long-term goal)

1. Realizing decarbonization
2. Improvement of QOL (Quality of Life)
3. Enhancement of achieving resources
and economic circulation
4. Transform into a Group where
diverse people play active roles

Growth Strategy

"Good to Great"

Process of specifying materiality (Long-term Goal) – Overall picture

Future we choose (Opportunity)

Spirit of foundation

・Seek profit and contribute to
development of society.
・Stay faithful and build a relationship
of mutual trust with the customer.
・Make big-picuture decisions without
chasing short-term profits.
・Put importance on morality and the
public nature.

Profit
and
Fairness

Opportunity

- ESG/SDGs
- Green Deal
- Innovation
- Japan
- India
- Mobility

・Seek profit and contribute to
development of society.
・Stay faithful and build a
relationship of mutual trust with
the customer.
・Make big-picture decisions
without chasing short-term
profits.
・Put importance on morality and
the public nature.

- ESG/SDGs
- Green Deal
- Innovation
- Japan
- India
- Mobility

Return to the spirit of foundation
and challenge opportunities.

Values KP should aim at

７Keys to "Good to Great"

The 7 Keys are the key themes that will help us become a Great company, and embody our value creation process.

Identifying social issues and customer needs

Social issues

・Climate change
・Biodiversity conservation
・Population growth and urbanization
・Cyber security

Global changes

・Decarbonization
・Increasing demand for mobility
・New demand due to IT innovation
・Innovation

Customer needs

・High quality
・Safety and security
・Productivity improvement (process saving)
・Environmental friendliness

1Continuous Profitable Growth
2Strategic concentrated Investment
3Expansion of Partnerships
4Thorough Improvement of Profitability

5Reorganization based on characteristic
of each business
6Talent Development
7Strengthening Infrastructure

Vision：Balance the development of people and society with the pursuit of profit
with the aim of achieving a sustainable society.

Social values

・QOL
・Contribution to local communities
・Promotion of diversity

Enviromental values

・Decarbonization
・Circular Economy
・GHG reduction

Economic values

・Sustained improvement in performance
・Appropriate redistribution of added value
・Strong financial position
・High level of competitiveness

Prioritized material issues = Materiality

Process of specifying
materiality (Long term Goal) Details

Our specific issues

Solve social issue
Business, Products

General Issue

Environment, Social
(CSR)

Compliance
Governance

Tasks of Social Contribution (offence)
- Realize the sustainable society through business

“Health, Medical”
“Mobility”
“Infection”
“Strong social infra.”
“Industry/tech. dev.”
“Sustainable consumption”
“City and living”
“Climate change”

Tasks of Social Responsibility (defense)
- Execute the social responsibility through activities

“Climate Change”
“Labor practices, Safety”
“Resource circulation”
“Hire/retain diverse people”
“Control chemical”
“Corporate action
“Human rights”
guideline, Compliance”

Initial Evaluation, Self Recognition
Materiality Evaluation
Commitment, KPI
(External Expression)
Re-new Business Model
Re-allocate Management
Resource
(Reflect non-financial risk
/opportunity)
Monitoring
Disclosure, Internal penetration

Driving structure Strategies

Establish ESG working team	Initial analysis	External Advisor (MURC)	Specify and extract social issue around our business	Management workshop	Organize our issues and prepare structure	Establish “Sustainability Committee”	Prioritize business risk and opportunity from both financial / non financial	Management mtg./BOD mtg.	17th MTP
								Advise from outside directors

DX to realize the strategy

Plan and conduct the implementation strategy
with the respective companies

Co-work with Japan IBM

Materiality

Realizing
decarbonization
Enhancement of achieving resources
and economic circulation
Improvement of QOL
(Quality of Life)
Transform into a Group where
diverse people play active roles

Materiality Map of Kansai Paint

Social capital

A. Human Rights and Community Relations
B. Data Security and Customer Privacy
C. Product Quality and Safety

Human Capital

D. Labor Practice
E. Employee Health and Safety
F. Employee Engagement, Diversity
and Inclusion

Business Model and Innovation

G. Business Model Resilience
H. Supply Chain Management
I. Material Sourcing and Efficiency
J. Product Design and Lifecycle Management

Environment

K. GHG Emissions
L. Energy Management
M. Waste and Hazardous Materials Management
N. Water and Wastewater Management

Leadership and Governance

O. Business Ethics
P. Management of the Legal and
Regulatory Environment
Q. Systemic Risk Management

Our Materiality

Realizing decarbonization	K. GHG Emissions
Improvement of QOL (Quality of Life)	C. Product Quality and Safety E. Employee Health and Safety J. Product Design and Lifecycle Management F. Employee Engagement, Diversity and Inclusion
Enhancement of achieving resources and economic circulation	H. Supply Chain Management J. Product Design and Lifecycle Management M. Waste and Hazardous Materials Management N. Water and Wastewater Management
Transform into a Group where diverse people play active roles	F. Employee Engagement, Diversity and Inclusion

Select Materiality highly important to both stakeholders and us

Four key issues

Four items of Materiality (long-term goals) that the Kansai Paint Group sets globally from the perspective of social contribution and social responsibility.