Material Issues and KPIs

Material Issues (Metrics and Targets)

As part of strengthening the sustainability management of the THK Group, an interdepartmental project to review material issues in light of the most recent state of society and changes to THK’s internal environment was launched in 2021. Specifically, project members deliberated together about the social issues that surround the THK Group, evaluating and examining these issues based on two axes: impact on business (horizontal axis) and societal demands and expectations (vertical axis). The result was graphed into a matrix, and 13 topics under four themes received final approval by the Board of Directors.

Defining Material Issues

Matrix

Themes and Topics Related to Material Issues

Metrics and Targets

Five working groups were established for the defined themes to pursue concrete initiatives for the material issues. After several rounds of deliberation among these working groups, the official metrics and targets were decided at a Sustainability Committee meeting held in October 2023. The entire THK Group will pursue activities aimed at the achievement of these metrics and targets.

Organization Structure

Metrics and Targets Related to Material Issues

• *1 Zero emissions: An emissions rate (volume of waste disposed/total discharged)
• *2 Severity rate: The severity of accidents (number of lost workdays multiplied by 1,000 and divided by the total number of hours worked). Incident rate: The frequency of accidents (number of deaths or injuries multiplied by 1,000,000 and divided by the total number of hours worked).