Identification of Materiality

When defining material issues to be addressed by the Group, we refer to our Mission Statement and Corporate Strategy, ANA Group strengths, and social trends, identifying long-term issues in global society and determining whether these issues are consistent and constant with our vision and strategy and whether we can contribute solutions through our business activities.(Figure1)

We determine degree of importance and identify materiality through mapping issues on two axes: one representing the impact on group business (management axis), and the other representing the impact on society and the environment, or stakeholder interest (society axis).(Figure2)

We conduct an annual review to ensure that identified material issues align with the global landscape, environmental changes, and the ANA Group's business strategy. The review process involves verifying the validity of the newly identified issues by engaging in discussions with internal and external stakeholders and gathering relevant information.

The ANA Group explored material issues in the assumption that it would target sincere promotion of its ESG management and simultaneous creation of social and economic value in the execution of its management strategy. Specifically, we have used a process of understanding the opportunities and risks in executing our corporate strategy(Figure4) and taking the specific identification and confirmation steps laid out on the opposite page to identify material issues given a multifaceted perspective of global trends for societal issues, the economic conditions for our own company, and expectations from stakeholders. The identified material issues are discussed and deliberated upon at the Group Management Committee before being passed on to the Board of Directors.

In fiscal 2022, the ANA Group reviewed the materiality to be addressed through redefining the FY2023-25 ANA Group Corporate Strategy, which was also set to realize its new management vision.
Since fiscal 2020, we have united as a group and overcome company crises among impacts of COVID-19 and unpredictable changes in the global environment through the ingenuity, motivation, and autonomy of each employee. The power of people and the capabilities of our organization stems from our human resources. We believe that strengthening the investment in our human capital will enable them to leverage their individual and diverse strengths to drive change, thus supporting the medium- to long-term sustainable growth of the Company. In light of this, we added human resources as a material issue, as they have also historically served as the foundation of value creation for the ANA Group. Other materiality identified include environment, people (human resources, DEI, and human rights), and regional development. (Figure5)