Basic Concept
erex has previously formulated materialities related to “Environment”, “Society,” and “Governance”, but in light of changes in the business environment and social conditions, we have recently conducted a review. As a result of the review, the materialities have been broken down into more specific details and classified into two categories: “Financial Materiality” and “Environmental and Social Materiality”. Through efforts to resolve these materialities, we aim to contribute to a sustainable society and achieve medium- to long-term growth of the Group. We will continue to review materiality on an ongoing basis.
Materiality Identified
- Promote stable procurement of sustainable fuels
- Stimulate renewable energy needs and expand demand
- Contribute to reducing environmental impact
- Establish new decarbonized power business
- Balancing Economic Growth and GHG Reduction with Biomass
- Promotion of local industry and agriculture and forestry sectors
- Job Creation
- Contribute to the diffusion of natural energy and energy self-sufficiency
Materiality Details
| Materiality | What we aim to be | Highly important items | ||
|---|---|---|---|---|
| Financial Materiality |
Promote stable procurement of sustainable fuels | Stable supply of renewable energy to customers in a sustainable manner | Risks | Cost measures due to fuel regulation changes. Responding to the risk of fuel price fluctuations. Addressing concerns about fuel procurement stability. |
| Stimulate renewable energy needs and expand demand | Proactively encourage customers to work toward a carbon-neutral world in 2050. | Opportunities | Change in sales due to increase/decrease in output curtailment. Sales change due to increased demand for renewable energy. Energy management efficiency systems such as storage batteries and aggregation. |
|
| Contribute to reducing environmental impact. | Building an efficient, environmentally friendly, circular economy. | Opportunities | Reduction of in-house GHGs. Coal Transition Business. Reduction of energy consumption in commercial distribution. |
|
| Establish new decarbonized power business. | Developing new customers for a carbon neutral world in 2050. | Opportunities | Carbon Credit Business. Energy management efficiency systems such as storage batteries and aggregation. |
|
| Environmental and Social Materiality |
Balancing Economic Growth and GHG Reduction with Biomass | Leveraging our expertise to decarbonize Southeast Asia. | Opportunities | Coal Transition Business. Fuel plant development projects. Biomass power plant development project. Reduction of own GHGs. Reduction of energy consumption in commercial distribution. |
| Promotion of local industry and agriculture and forestry sectors. | ||||
| Job Creation. | ||||
| Contribute to the diffusion of natural energy and energy self-sufficiency. | ||||
Materiality Identification Process
We analyzed our business environment with reference to international standards such as SASB (Sustainability Accounting Standards) and identified material issues that are highly relevant to management challenges aimed at enhancing corporate value.
The items extracted in STEP 1 were evaluated based on two axes: social value (contribution to the world) and economic value (importance to erex).
Issues rated as highly important in STEP 2 were extracted as major issues, organized into the following categories, and discussed by the Sustainability Committee and organized into a materiality proposal.
- Promotion of stable procurement of sustainable fuels.
- Stimulation of renewable energy needs and expansion of demand.
- Contribution to environmental impact reduction.
- Establishment of a new decarbonized power business.
We verified the appropriateness of the STEP3 materiality proposal and identification process through exchanges of opinions with experts familiar with each stakeholder's viewpoints. Based on the results, we have changed the position of our investment in Southeast Asia, which is positioned as one of our important projects in the STEP2 materiality plan, to one of our major issues.
The Sustainability Committee deliberated on the final draft of the Materiality, and the Board of Directors adopted the resolution. The Board of Directors deliberates the need to review the materiality every year, taking into consideration changes in social conditions and the Group's business situation.