Value creation process and Materiality Mnanagement
Value creation process
To achieve the balanced creation of both social value and economic value, we need to organically combine the process of creating a positive impact while maximizing stakeholder value based on our “Purpose” with the process of sustainably strengthening our own financial and non-financial management foundation (six types of capital). Additionally, we must establish a system to appropriately manage these processes at the management level. We call this system “value creation process.”
SuMi TRUST Group has identified high-priority issues (materiality) that affect our value creation process over the medium to long term, and we have classified them into three categories: (1) impact materiality—issues that are conducive to the creation of social value from social-issue-solving business; (2) governance and management framework materiality—issues that have an impact on the core elements of our value creation; and (3) financial materiality—issues that directly affect our f inancial performance. We implement materiality management so as to appropriately control the impacts of these issues within the constructs of a risk appetite framework (RAF).
Our Sustainability Management Department engages in dialogue with relevant departments with respect to non f inancial materiality items in the finance sector that ESG investors are most interested in and for which the Group’s initiatives may face challenges in order to improve our approaches and enhance information disclosure. We refer to this initiative as internal engagement and consider it as a check and balance function based on an external perspective on day-to-day operations, different from the supervisory function of the Board of Directors from a management perspective.