Our Materiality

Risks and Opportunities Related to Materiality

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
Harmony with Nature	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
Safe & Responsible Products	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
Intellectual Property for Social Good	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
Fostering a Culture of 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
Building Stronger 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