We listed up 34 items of environmental, social, and governance issues in a broad range, referring to international frameworks and guidelines such as the GRI Standards^*1 and SASB^*2, as well as megatrends.
In the extraction process, we considered social and environmental changes, regulatory and policy trends, and requests from stakeholders in the scope of business areas and their value chains that the Samty Group is or may be related to.

• *1 GRI Standards is a framework for reporting on the economic, environmental, and social impact of a reporting entity and explaining its contribution to sustainable development.
• *2 SASB stands for Sustainability Accounting Standards Board, a non-profit organization based in San Francisco, USA, which was established in 2011.

We performed priority ratings for the listed issues. In the Materiality analysis this time, we evaluated and prioritized the issues on two axes: the importance to society and the environment, and the importance to the business.
In terms of the importance to society and the environment, each is quantified using five-point evaluation criteria based on the requirements of ESG evaluation organizations. As for the importance to the business, the five-point evaluation criteria are established according to the magnitude of profit lost or generated, i.e., financial impact, when each issue arises.

We verify the validity of the Materiality evaluation process and analysis results to confirm our Materiality that should be prioritized.
This identification process of Materiality is reviewed on a regular basis, and this review ensures the validity of the issue setting and the plans for them.