Materiality

SMFL Group's Materiality (Key Issues)

SMFL identified and has continued to address the Environment, Next Generation, Community, and Job Satisfaction as its four materialities (key issues). Selected based on two perspectives—their importance to stakeholders and importance to the SMFL Group—these key issues were identified following advice from external experts.
We have also reviewed some of our SDGs focus measures and key measures to align them with our initiatives, such as "activities as a leader in realizing the circular economy" and "contributing to societyʼs priorities beyond business," which are key components of our current Medium-Term Management Plan. Going forward, we will promote initiatives designed to address materiality, while identifying changes in the SMFL Group's strategies and society as well as reviewing them as necessary.

Graphic showing four SMFL materiality themes: Environment (decarbonization and circular economy), Community (sustainable local development), Next generation (development of people and companies), and Job satisfaction (creating opportunities for active involvement), each linked to relevant SDGs icons.

Selection Process for Material Issues

Selection process for material issues

  1. Step1
    Selecting SDGs focus items    		 After taking a high-level view of the 169 targets of the SDGs and incorporating advice from experts, we selected items that are closely related to the business strategies of each business unit and that are especially worth focusing on.
  2. Step2
    Including shareholder/stakeholder perspectives in evaluation    		 While taking into account material issues for both our shareholders, we evaluated and prioritized issues that are closely aligned with the SMFL Group's business.
  3. Step3
    Selecting material issues    		 We selected three material issues in priority areas where we can leverage our strengths through business activities, and selected one material issue as the basis for resolving these issues.
  4. Step4
    Internal approval procedure    		 The selected issues are submitted for discussion by the SDGs Promotion Committee, approved by the Management Committee, and determined as materiality for the SMFL Group.

Positioning of Material Issues

Diagram showing SMFL's four materiality themes for sustainable growth: Next generation, Environment, and Community linked under 'Addressing societal issues through business activities,' with Job satisfaction as the foundation.

Materiality Initiatives

Materiality Environment

Contributing to achieving decarbonization and a circular economy

 Next generation

Contributing to the development of people and companies that progress to the next generation

 Community

Contributing to the sustainable development of local communities

 Job satisfaction

Creating opportunities for everybody to be actively involved in a better future
Course of action
  • Support customer initiatives to reduce environmental impacts while operating our environmental management system in an appropriate manner.
  • Contribute to the realization of a circular economy through businesses that leverage the characteristics of a leasing company that handles equipment.
  • Work to develop and introduce new technologies, thereby contributing to the development and growth of companies as we move toward a society with a declining population.
  • Contribute to building of sustainable communities through the development and maintenance of infrastructure essential to the region.
  • Promote diversity and encourage the active participation of diverse human resources amid the declining birthrate and aging population.
  • Create an open and productive workplace environment and foster a corporate culture in which employees can experience the joy of working.
SDGs focus measures
7：Ensure access to affordable, reliable, sustainable and modern energy for all. 12：Ensure sustainable consumption and production patterns. 13：Take urgent action to combat climate change and its impacts.
1：End poverty in all its forms everywhere. 8：Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. 9：Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.
8：Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. 9：Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation. 11：Make cities and human settlements inclusive, safe, resilient and sustainable.
5：Achieve gender equality and empower all women and girls. 8：Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
Key measures
  • Promoting initiatives for renewable energy
  • Expanding our offering of products that contribute to decarbonization
  • Promoting a circular economy business
  • Restrict the use of electricity and paper within our businesses
  • Promote innovation in areas such as digital technology and robots
  • Support the children who will become the platform for the next generation
  • Provide solutions for sustainable urban development
  • Contribute to the development of the economies of all countries by supporting capital investments on a global basis
  • Promote an active role for women and senior citizens
  • Promote workstyle reforms
  • Improve operational efficiency through the use of digital technology
FY2024 Initiative Results
  • Development of an on-site PPA scheme facilitating surplus power generation sharing
  • Certified by Japan's Ministry of the Environment as a designated leasing company that has secured outstanding achievements under its ESG Lease Promotion Project for a second consecutive year
  • Concluded a business agreement aimed at promoting the use of sorting and processing equipment for used disposable diapers
  • Released “InnovAIte,” our in house-developed generative AI tool
  • Received the IT Encouragement Award for building and utilizing Intelligence Hub (a business intelligence platform developed in-house)
  • Supported camping events and factory tours geared toward children from disadvantaged families
  • Contributed to infrastructure projects that support society through the establishment of comprehensive infrastructure funds and investment in privatized domestic airport
  • Participated in the operation of the Japan National Stadium
  • Supported orphanages and undertook river cleanup activities in Malaysia
  • Secured a year-on-year increase in the percentage of women in management positions
  • Introduced a Work-life challenge system (12 working days per month)
  • Received a four-star rating in the Nikkei Sustainable Management Survey (Smart Work Edition)