Material Issues for the Ryoyo Group

The Ryoyo Group has identified the following four material issues (key management issues) for its sustainability efforts. We have also identified the priority areas we will address under each of these issues to pave the way for sustainable growth.

Ｅ Environment	Material Issue	Addressing environmental issues (New technologies and concepts for the next generation)	Relevant SDGs
	Reasons for Selection	Helping to reduce environmental impact caused by various activities of companies and individuals by providing unique semiconductors and IT services Responding to climate change, and maintaining and strengthening the business continuity framework to deal with natural disasters
	Priority Areas	Developing and trading in products with low environmental impact Addressing climate change issues

Ｓ Society	Material Issue	Helping to solve social issues (Addressing problems and fostering expectations and anticipation for the future)	Relevant SDGs
	Reasons for Selection	Helping to solve customer problems related to social issues by providing proprietary products Offering security, safety, and fairness to customers and stakeholders through our business
	Priority Areas	Developing and trading in products that contribute to society Strengthening information security Strengthening quality and safety

Ｇ Governance	Material Issue	Strengthening management and sales foundations (Building organizational strength to achieve sustainable growth)	Relevant SDGs
	Reasons for Selection	Reinforcing needed governance that will enable us to help resolve environmental and social issues
	Priority Areas	Developing infrastructure Strengthening management personnel

Ｈ Human Resources	Material Issue	Ensuring diversity of human resources and reforming working styles (Investing in human capital to foster three aspects of our corporate culture*1)	Relevant SDGs
	Reasons for Selection	Achieving sustainable growth by cultivating motivation and a sense of reward (contributing, collaborating, and praise) for every employee
	Priority Areas	Strengthening sales capabilities Empowering women in the workplace Ensuring employee rights

The process used to identify the Group’s material issues is as follows.

Step 1: The issues, risks, and opportunities that affect the Group’s financial and non-financial activities are identified in a thorough review.

Step 2: Multiple relevant departments that promote internal sustainability initiatives evaluate the importance of the issues identified in Step 1 from the perspectives of management and each stakeholder group (customers, employees, and shareholders).

Step 3: Based on the results of individual assessments of the importance of each of the issues, those that are important to both stakeholders and management are selected as the Group’s material issues.

*1 Three aspects of our corporate culture: A culture that is uninhibited and open-minded, that produces results as a team, and (as a result) abounds with a sense of contributing, collaborating, and praise.

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