Materiality

Materiality Overview

Seiko Group has established key actions to respond to social challenges, using as a guide a framework we call WITH (W: Well-being, A Better Life / I: Inclusion, For All People / T: Trust, Certainty and Trust / H: Harmony, with the Earth).

Well-Being—A Better Life

Aiming for a society where all stakeholders embrace diverse values, and work and live with pride and a sense of purpose.

Materiality Overview	Key Actions	Major Initiatives	SDGs Goals
Contribute to greater job satisfaction and active participation by diverse individuals	Develop human resources as a pillar of our growth strategy, and work to improve engagement and promote diversity	Develop human resources (take measures to develop entrepreneurial and digital transformation resources, and environmental improvement, including systems) Conduct engagement surveys Emphasize diversity in hiring and set goals to promote active adoption Promote health management
Promote mental and physical health and achieve social welfare	Develop products to enter medical and healthcare businesses	Enter healthcare field through the development and sale of devices and materials for medical applications in cooperation with third parties
Implement initiatives for respecting human rights	Conduct thorough investigations regarding human rights	Establish and continuously promote a due diligence system for human rights Promote in-house education on human rights
Cultivate and support the next generation	Support the growth and development of the next generation through hands-on events, classes, etc.	Continued implementation of the Seiko School Organization of the Seiko Summer Jazz Camp

Inclusion—For All People

We aim to support a variety of diverse lifestyles in this new era by using our corporate strengths, such as manufacturing and digital technology, to help create the essential infrastructure, always working towards the realization of a safe and secure society.

Materiality Overview	Key Actions	Major Initiatives	SDGs Goals
Contribute to the creation of a safe, secure, and inclusive social infrastructure	Create and provide digital solutions to help realize a new age of society, where all people and goods are connected	Provide Cloud- / AI- / IoT-enabled platforms to improve social infrastructure Provide products and services that bring about an inclusive world
Contribute to a prosperous society through support for culture and sports	Promote sports, music, and cultural activities that enrich people's lives and enhance our corporate value	Sharing the Seiko Museum Ginza’s concept of Time Culture with the world Continue sports timing activities, sponsorship of sporting events, and support for athletes Host concerts to support the recovery of East Japan
Contribute to local communities	Support activities in local communities that promote social revitalization at all our facilities, both inside and outside Japan	Promote socially beneficial sports events and beautification activities in collaboration with local residents and communities

Trust—Certainty and Trust

Because our fundamental guiding principle says, “Be a company trusted by society,” we consider legal compliance, transparency in management, and respect for social ethics as crucial management responsibilities.

Materiality Overview	Key Actions	Major Initiatives	SDGs Goals
Provide high-quality products and services that are trusted by society	Develop high-quality, high-added-value products and services by leveraging the strengths of each business domain to increase sustainable business activities	Provide highly reliable products and service infrastructure that generates digital trust (trust in security, privacy, safety, etc. of our services) Enhance after-sales service system and expand quality improvement program globally Strengthen quality assurance system Inheriting and passing on skills and craftsmanship
Promote responsible procurement and supply chains	Establish and operate a sustainable supply chain management system that addresses social issues, including human rights and the environment	Revise Procurement Policy Establish and implement procurement guidelines
Strengthen corporate governance and the compliance structure	Maintain and improve corporate governance and compliance operations based on respect for all relevant laws and regulations	Further strengthen the operations of the Corporate Governance Committee, Corporate Ethics Committee, Risk Management Committee, and other bodies

Harmony—Harmony with the Earth

We will contribute to the creation of a sustainable society by employing environmental technology to reduce greenhouse gas emissions and conserve biodiversity. Moreover, working closely with local communities, we will strive to foster sustainable symbiosis with the global environment.

Materiality Overview	Key Actions	Major Initiatives	SDGs Goals
Implement initiatives for climate change and decarbonization	Planning and promoting reduction initiatives in line with the Seiko Group’s long-term greenhouse gas emissions targets Provide products and services that contribute to realizing a decarbonized society	Promote group-wide energy conservation and active introduction of renewable energy Introduce environmental support systems
Help to realize a recyclingoriented society	Create and expand lineup of environmentally friendly products and services Promote 3Rs (Reduce, Reuse, Recycle)	Create resource-saving and eco-friendly products Simplify packaging materials and shift to using renewable materials Reduce losses in raw materials and waste products Increase use of reusable parts and recycled materials
Coexist and harmonize with nature	Aim for coexistence with nature by increasing activities to conserve biodiversity and natural capital in each of our business locations	Working together with local residents and outside experts to promote nature conservation (e.g., tree planting and preservation of marine resources)

Explanation of Specific Processes for Determining Materiality

We determine materiality according to four specific processes.

Materiality Identification Process

1. STEP 1 Understanding and Identifying Social Issues
   • Identify and list up social issues that impact our Group, our stakeholders, and our supply chain, both domestically and internationally, now and in the future. This process involves identifying social issues, with a focus on standards such as GRI, the SDGs, ISO 26000, and other metrics relevant to our business.
   • In the identification process, we also take into consideration the opinions of external experts to ensure an unbiased examination and narrow the focus of our inquiry.
2. STEP 2 Identifying Materiality Candidates
   • We selected a diverse range of employees in Group companies and related departments, including people of different ages, genders, and positions, to be ESG and SDGs supervisors. We used a workshop format to discuss what form our initiatives should take, focussing on the social issues that the Group felt it should tackle and stakeholders’ expectations regarding our response to these issues (a total of 5 workshop sessions were held).
   • At the same time, within each company and department, the relevant groups held discussions and began listing up likely initiatives for the specified materiality candidates.
3. STEP 3 Assessing the Importance of Candidates
   • Following the above steps, we conducted a stakeholder survey* to gauge the expectations of stakeholders regarding the materiality candidates that we identified through this process, particularly those in which our company is expected to contribute solutions.

   * We conducted an online monitoring survey, targeting our customers (both B2C and B2B); suppliers; shareholders, bondholders, and securities analysts; NPOs; and people in regions where our company conducts business, and also conducted interviews with specific stakeholders,

4. STEP 4 The Identification of Materiality
   • A Materiality Identification Review Committee, consisting of full-time directors and auditors, as well as the presidents of each Group company, held six meetings to discuss and identify material issues.
   • Based on expectations and feedback from external stakeholders, we conducted an internal reassessment and revised the relative importance of various materiality candidates.
   • We then identified the specific issues that our Group should address, taking into account our corporate philosophy, Purpose, and long-term vision. The Board of Directors then passed a resolution on this matter.

Materiality Matrix

A matrix illustrating the importance of 13 key materiality items

Seiko Group Materiality Matrix