Sustainability Site

Materiality Identification Process

Aiming to further enhance the effectiveness of CSR activities, since 2010 the Group has taken steps to address and periodically review the Bandai Namco Group’s Important CSR Themes. The Bandai Namco Group takes into consideration the changes in its business environment as well as the expanding expectations and demands of communities. As a member of society, we strive to support the realization of a sustainable world. Accordingly, since 2019, in order to develop CSR activities into sustainability activities, we have specified the Group’s materiality (material issues) (reviewed the appropriateness of important CSR themes) based on the Bandai Namco Group Sustainability Policy. Starting in April 2022, we have been working to establish targets and implement initiatives based on the five material issues that we identified.

Three Steps for Identification of Materiality

The Bandai Namco Group has been advancing sustainability initiatives under its important CSR themes established in 2010. We began verifying the appropriateness of these themes in October 2019 based on the latest trends and societal demands in Japan and around the world. During this process, the Group identified its materiality using the steps presented below.

STEP 01
Listing of Social Issues

From the perspectives outlined below, we created a list of social issues to be analyzed and narrowed the list to 20 items.

The Bandai Namco Group’s Approach and Policies

  • The Bandai Namco Group Purpose
  • The Bandai Namco Group Sustainability Policy
  • The Bandai Namco Group Compliance Charter
  • The Bandai Namco Group Mid-term Plan
  • Related Group policies/guidelines

Trends and Demands of Society in Japan and Around the World

  • Various policies and guidelines from international organizations, research institutions, and governments
    Examples: Sustainable Development Goals (SDGs), Ministry of the Environment’s Environmental Reporting Guidelines, GRI Guidelines, TCFD recommendations, SASB Standards, ESG evaluation institution guidelines and reports (CDP, MSCI, Sustainalytics, FTSE), etc.
  • Interviews with outside experts
  • Consumer surveys (implemented at irregular intervals)
  • Initiatives of companies that are advanced in regard to sustainability
STEP 02
Mapping of Identified Social Issues

We mapped these items on two axes: importance to stakeholders and importance to the Bandai Namco Group. Issues with a high degree of importance on each axis were identified as potential material issues.

Materiality Map

A diagram assessing the identified social issues. We examined each issue after assigning scores to their importance to stakeholders and importance to the Bandai Namco Group. The list of material issues that were identified is as follows.

Harmonious Coexistence with the Natural Environment

  1. Enhanced response to climate change
  2. Sustainable use of resources and raw materials
  3. Supply chain management (environment)

Provision of Appropriate Products and Services

  1. Safety and security of products and services
  2. Enhanced customer satisfaction
  3. Consideration for labeling

Appropriate Utilization and Protection of Intellectual Property

  1. Utilization and protection of intellectual properties (IP of characters, etc.)

Establishment of Work Environments That Facilitate Mutual Respect

  1. Respect for human rights
  2. Human resources development
  3. Occupational health and safety management
  4. Promotion of diversity and inclusion
  5. Promotion of work-life balance
  6. Supply chain management (labor)

Harmonious Coexistence with Communities

  1. Support for community development
  2. Contribution to development of culture and sports
  3. Educational assistance utilizing the Company’s strengths
STEP 03
Verifying Appropriateness and Identifying Materiality

The Group’s internal stakeholders reviewed the content of findings. Next, we identified materiality following management-level deliberations.

We also received comments from outside experts to verify the appropriateness of the material issues identified.

Comments from Outside Experts

Peter David Pedersen, Co-Founder, E-Square Inc.

General Assessment

The material issues provide good coverage.
The Company’s next mid-term plan should be formulated in an integrated manner with a focus on sustainability rather than CSR. This is vital not only for outside stakeholders, but internal ones as well.


Masao Seki, Visiting Professor, The Open University of Japan

Harmonious Coexistence with the Natural Environment

Formulation of business strategy along with action targets up to 2030 for a decarbonized society is now required by the investment community and society as a whole.

Provision of Appropriate Products and Services

Safe and secure products and services is an extremely important perspective.

Harmonious Coexistence with Communities

Development of the next-generation is important for the Bandai Namco Group and will have a positive impact. The Company should focus on children’s healthy development and education for the happiness of future generations.


Makiko Akabane, Director Japan, CSR Asia

Appropriate Utilization and Protection of Intellectual Property

IP should be a material issue. The fact there is an IP column indicates just how important this is to the Bandai Namco Group.

Establishment of Work Environments That Facilitate Mutual Respect

Workplace environment and employees include all employees working in the supply chain, and recently this item is a hot topic second only to the environment.

Risks and Opportunities

The Group Sustainability Committee discusses risks and opportunities related to sustainability, identifies material issues that the Group should address, and promotes sustainability activities throughout the Group. In this process, the committee cooperates with the Group Risk Compliance Committee, which oversees the Group’s risk and crisis management system.

Risks and Opportunities Related to the Five Material Issues of the Bandai Namco Group
Material Issues Risks Opportunities
Harmonious Coexistence with the Natural Environment
  • Higher raw materials costs as well as production and procurement costs due to carbon regulations and plastic use regulations
  • Higher costs due to the introduction of new technologies, investment in R&D, or capital investment
  • Property damage, supply chain interruption, or resource depletion due to natural disasters
  • Decline in revenue from live events and store operations due to decreased willingness to go out
  • Lower electricity costs due to energy saving
  • Lower costs due to the introduction of efficient production/transportation processes
  • Creation of new markets due to changes in customer preferences
  • Enhancing the corporate image through environmental initiatives
  • Creating business opportunities through environmental commitment
  • Improved engagement of Group employees
Provision of Appropriate Products and Services
  • Diminished sales due to changes in customer preferences
  • Increased investment in the development of new technologies
  • Increased number of defects in terms of the quality of products and services
  • Reputational risk caused by defects
  • Promotion of the development of new products and services
  • Increased efforts to develop new technologies
  • Improved skills by enhancing employee training
  • Improvement of brand value through improved customer satisfaction
Appropriate Utilization and Protection of Intellectual Property
  • Intensification of competition in IP creation
  • Increased investment related to IP creation, acquisition, and protection
  • Damage to IP value, such as IP infringement
  • Sustainable development of entertainment through effective utilization and protection of IP
  • Expanding potential for the creation of new IP
Establishment of Work Environments That Facilitate Mutual Respect
  • Intensifying competition to secure human resources to promote IP-based strategy
  • Increased investment in securing and developing human resources
  • Decline of engagement among Group employees and exodus
  • Adverse impact on business due to shortage of human resources
  • Increased business risks due to delays in responding to stricter laws and regulations globally
  • Diminished productivity due to human rights violations in the supply chain
  • Building of good relationships with business partners and improved productivity
  • Improved engagement of Group employees
Harmonious Coexistence with Communities
  • Reputational risk caused by insufficient initiatives for social contribution and regional revitalization
  • Enhancement of corporate value resulting from the revitalization of local communities
  • Improved engagement of Group employees

Confirmation of Status and Reviews as Appropriate

Each Group company is implementing measures tailored to the characteristics of its own business in accordance with its material issues. The results are analyzed for each fiscal year, for the entire Group and for each business segment, leading to improved measures for the following fiscal year and beyond. The results of analyses are discussed by the Group Sustainability Committee, and then reports are made to the Board of Directors, which deliberates and supervises as necessary.

Indicators and Targets for the Five Material Issues of the Bandai Namco Group
Material Issues Important Themes Objective
Harmonious Coexistence with the Natural Environment
  • Enhanced response to climate change
  • Supply chain management (environment)
  • Initiatives for decarbonization
  • Reduction of CO2 emissions in Scope 1 and Scope 2
      FY2030: 35% reduction compared to FY2019
      FY2050: Net zero emissions
  • Promotion of response in Scope 3
  • Sustainable use of resources and raw materials
  • Promotion of the circular economy
  • Establishment of plastic recycling systems
  • Promotion of product recycling
  • Promotion of environmentally friendly products
  • Reduction in petroleum-based plastic use
  • Creation of eco-friendly products
  • Waste reduction
  • Recycling of waste at each business site
Provision of Appropriate Products and Services
  • Provision of products and services based on appropriate ethical representation
  • Establishment and operation of system for Groupwide sharing of information
  • Implementation of employee training
  • Safety and security of products and services
  • Initiatives toward safe and secure manufacturing
  • Improvement in product quality in Japan and overseas
  • Implementation of employee training
  • Enhanced customer satisfaction
  • Initiatives toward preventing defects
  • Promotion of swift and detailed customer support
Appropriate Utilization and Protection of Intellectual Property
  • Appropriate use of IP and mutual use of patents
  • Promotion of efforts to resolve social issues through the utilization of IPs and technologies
  • Protection of IP
  • Enhanced intellectual property protection
Establishment of Work Environments That Facilitate Mutual Respect
  • Realizing employee-friendly workplace environments
  • Promotion of work-life balance
  • Promotion of childcare leave acquisition
  • Review of paid leave structure
  • Human resources development
  • Cultivation of diverse human resources who can promote the IP axis strategy
  • Cultivation of diverse human resources who can realize our Purpose
  • Promotion of diversity and inclusion
  • Promotion of employment for people with disabilities
  • Fostering of a corporate culture where employees with diverse backgrounds play an active role
  • Supply chain management (labor)
  • Initiatives toward building an optimized supply chain
  • Establishment of a supply chain that respects human rights
  • Implementation of employee training
Harmonious Coexistence with Communities
  • Collaboration with local communities
  • Invigoration of fan communities
  • Implementation of social contribution activities deeply rooted in local communities
  • Educational assistance for the next generation
  • Educational support for children
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