Materiality | MEC COMPANY LTD.

Identifying Material Issues (“Materiality”)

MEC sets out its goal under the “Vision for 2030” to open up the future through collaboration and co-creation with stakeholders, create a virtuous cycle of social value and economic value, and contribute to the creation of an affluent society. In Phase 2 of the “Medium-term Management Plan 2025-2027”, we continue to promote this policy. To achieve this virtuous cycle, we have identified materiality issues (materiality) and are promoting initiatives in terms of both our product and service offerings and business processes.
Materiality is periodically reviewed in conjunction with the formulation of the three-year medium-term management plan.

Research and development to open up the future
Proper procurement, production, and logistics
Environmental preservation
Quality and safety
Utilization of diverse human resources
Reinforcement of management foundations

Six Material Issues and Related SDGs Actions《FY2024》

Research and development to open up the future

Efforts to Address Material Issues	KPIs for FY2024	Action Items and Measures Implemented	Goals for 2030	Related SDGs actions
Development of products that reduce environmental impact	Promotion of sustainable product development	As mid- to long-term activities for the next generation, we develop products that help improve social issues and disseminate solutions. In FY2024, we developed prototypes that reduce environmental impact as well as ensure performance. Performance evaluation is in progress.	Establish chemical adhesion technology Reduce the burden of waste treatment
Development of new business	Promotion of rechargeable battery-related business	Technology development and issue identification	Launch a new core business

Proper procurement, production, and logistics

Efforts to Address Material Issues	KPIs for FY2024	Action Items and Measures Implemented	Goals for 2030
SCM (supply chain management)	Visit raw material manufacturers, hold technical review meetings, and conduct exchanges between presidents to deepen relationships	Visits to raw material manufacturers: 12 companies Technical exchange meetings: 2 companies Meetings for exchange between presidents: 1 company	Taking into consideration the natural environment and human rights, we will procure environmentally friendly raw materials and engage in recycling of raw materials and containers. We will also continue to strive for responsible resource procurement
CSR procurement	Promotion of the diversification of suppliers of main raw materials	Promoting diversification of suppliers of main raw materials is under way according to plan
Creation of global production and supply system	Improvements to production and supply capabilities at each production site.	Execution of operations related to securing production capacity and improving efficiency	Establish global production system/Establish consolidated BCP system
BCP responses	Establishment of a stable production system	Reinforcement of pilot factory functions at Amagasaki Factory, reinforcement of global production control functions, etc.

Environmental preservation

Efforts to Address Material Issues	KPIs for FY2024	Action Items and Measures Implemented	Goals for 2030
Appropriate chemical substance management	Promote non-use of prohibited substances	Properly handling various chemical substances in accordance with laws including the maintenance of a system that does not use prohibited substances and compliance with environmental laws and regulations.	Minimize the impact on the health of those who handle chemical substances by thorough management
Appropriate chemical substance management	Provide education and share information	As a chemical manufacturer, planning to provide education on domestic and international chemical substance laws and regulations for implementation starting in 2025. In addition, sharing of appropriate hazard information with employees who use and manage chemical substances.
Address climate change issues	Strengthening of information disclosure in line with TCFD recommendations	In February 2025, identification of opportunities associated with change through "transition", increase of contents for public disclosure and posting of information on the company website	Earnestly address global environmental issues for sustainable growth of society
Address climate change issues	Disclosure of information regarding Scope 3 emissions	For Scope 3, disclosure of information on all categories	Reduce energy use and work toward net zero

Quality and safety

Efforts to Address Material Issues	KPIs for FY2024	Action Items and Measures Implemented	Goals for 2030
Health and safety management	Zero accidents resulting in lost time	Maintained zero accidents resulting in lost time. (Zero accidents not accompanied by lost time)	Provide a safe and secure working environment (Maintain zero accidents resulting in lost time)
Quality assurance	Rebuilding and improving quality assurance systems	Continued efforts to rebuild the quality assurance system and completed measures as planned.	Continue to provide customers with satisfactory goods and services globally
Improvement of corporate value through appropriate information disclosure	Implementation of appropriate information disclosure	Disclosure of information without delay and expansion of disclosure in English language, and communication with investors and shareholders	Strive to further enhance corporate value

Utilization of diverse human resources

Efforts to Address Material Issues	KPIs for FY2024	Action Items and Measures Implemented	Goals for 2030
Health management	Maintain the rate of employees having a medical checkup	・Maintained 100% medical checkup rate ・Implementation of online health seminars	Maintain a high level of employee satisfaction by promoting health management and implementing various vacation programs [ Increase the child-rearing leave take-up rate among male employees to at least 85% by 2030 (non-consolidated target for the Company) ]
Work-life balance	Increase male employees who take child-rearing leave	FY2023: 4 employees FY2024: 9 employees took leave (Average length of childcare leave taken is 83 days)
Improving the working environment	Improvement of the workplase environment	・Bicycle safety training for all relevant persons ・Lifesaving and first aid training at Amagasaki District Office ・Consideration of periodic training programs on money and health	Create a work environment that accommodates diverse work styles
Career development	Have all employees receive mandatory training	Attendance rate of mandatory training: Approximately 100% Establishment of programs to enable each employee to maximize his or her potential, and promoting diversification and enrichment of education	Aiming to develop human resources capable of self-reliance and self-discipline, and achievement of a fair and highly satisfying work environment
Diversity	Recruitment of diverse human resources	Hired 26 persons in 2024: 12 women, 1 foreign national, 1 disabled person
Engagement	Building a relationship where employees and the company are equals and can grow together	Implementation of measures to deepen employee understanding of the medium-term management plan to help employees understand and empathize with the company's vision and direction

Reinforcement of management foundations

Efforts to Address Material Issues	KPIs for FY2024	Action Items and Measures Implemented	Goals for 2030
Governance	Attendance at Board of Directors meetings: 85% or more (Outside Directors)	Attendance of Outside Directors: 100%	Carry out corporate management that is trusted by society by strengthening governance
Information security	Zero serious security incidents	Zero serious security incidents In order to appropriately manage and utilize the information assets held, determined the basic matters to be strictly adhered to, and made efforts to realize uniform information security management through appropriate operation.	Avoid losses associated with confidential information leaks
Information security	Have all employees perform self-check and achieve the pass rate of 100%	・Had all employees perform self-check and achieved a pass rate of 100% ・Number of IT literacy training sessions: 10 　Conducted online education as planned on IT systems and information security that employees should understand.	Avoid losses associated with confidential information leaks
Risk management	Visualize management risks and implement countermeasures	Review management risks as appropriate and implement countermeasures Visualized various risks and countermeasures that impede the MEC Group’s sustainable growth and reported and discussed them at the Risk Management Committee.	Ensure thorough understanding of risks and opportunities in order for the MEC Group to grow sustainably