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.

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
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

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
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.

Confirmation of Status and Reviews as Appropriate

The progress of initiatives to address material issues is shared with the Group Sustainability Committee and the Group Sustainability Subcommittee. The entire Group is working toward the goal of building a sustainable society.

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