Materiality (Material Issues)

Materiality Identification Process

Begin exploring SDGs

We formed a cross-functional SDGs Promotion Team to explore and understand SDGs

Confirm the relevance of the SDGs to our business

Based on the principle that our business activities contribute to achieving a sustainable society through the effective use of resources and reduction of the environmental impact in our Precious Metals and Environmental Preservation Businesses, we have comprehensively identified the relationships between our operations and the 17 goals and 169 targets of the SDGs, organizing them in terms of both risks and opportunities.

Consider priority goals and KPIs

We held discussions with corporate officers of business units on matters of high importance and formulated priority themes and KPI proposals for the period through 2030.

Decide priority SDG-related goals

All directors discussed the key goals and KPIs and determined the issues to be addressed by the Group.

Priority Issues to be Addressed (Key SDG Targets)

Business Material Issues

Expand Precious Metals Recycling

Approximately one-fourth* of the world's gold supply is derived from recycling. Recycled precious metals have a minimal environmental impact since they do not require mining. Additionally, their ability to be reused repeatedly makes a significant contribution to sustainability. Recycling also plays a crucial role in ensuring a stable supply of precious metals essential across various industries.

Source: GOLD FOCUS 2022

Notes:

1. Total amount of gold, silver, platinum, palladium and Rhodium

2. Total amount of gold, silver, platinum, palladium, Rhodium and copper

Targets FY2023 Results
Total amount of recycled precious metals1 by FY2030: 1,300 tons 231 tons
CO2 reduction effect: 2,837,000 tons2-CO2 600,000 tons-CO2

Examples of Our Initiatives

Supply Precious Metals in Ways That Are Friendly to People, Society, and the Environment

While precious metals are indispensable to many industries, their mining, production, and distribution processes are often associated with significant social challenges. Businesses involved in the procurement and supply of precious metals are expected to take steps to ensure these issues are not exacerbated.

The gold and silver supplied by ARE Holdings Group are responsibly sourced, meeting the rigorous standards of the LBMA1 and RJC certification, ensuring they are friendly to people, society, and the environment. Moving forward, we will continue to prioritize ethical, social, and environmental considerations in our business activities and initiatives, fulfilling our responsibilities through the sustainable supply of precious metals.

Note: London Bullion Market Association

Reduce CO2 Emissions

Climate change is a serious issue. At ARE Holdings, we are working to reduce CO2 emissions across the Group through energy conservation activities, transitioning to next-generation vehicles at Group sites, and switching to low-CO2 emission electricity plans. Our goal is to achieve a 63% reduction in emissions by 2030, compared to 2015 levels (targets include Scope 1 and Scope 2).

Targets FY2023 Results
63% reduction in emissions by 2030, compare to FY2015 levels (targets include Scope 1 and Scope 2). -31%

Examples of Our Initiatives

Human Resource Development and Contribution to the SDGs

Enhance Work-Life Balance and Employee Diversity

We will strive to enhance job satisfaction by improving the system to help diverse human resources to succeed within the Group. This will be done by reforming working styles, implementing health and productivity management, and promoting diversity.

Note: We have introduced an optional three-day weekend system and a designated 10-day annual leave system. The combined acquisition rate for annual leave and designated days off stands at 80.7%.

Targets FY2023 Results
Achievement rate for rest intervals of at least 11 hours: 100 % every year 99.99%
Percentage of female employees in managerial positions to all female employees: 7.0% by the end of FY2030 5.0%
Percentage of employees with disabilities: Meet or exceed the legally mandated employment rate by the end of FY2030 3.6%
Annual paid leave utilization rate: 70 % by the end of FY 2030 58.8%
Percentage of male employees taking childcare leave: 100 % by the end of FY 2030 76.9%

Encourage and Support SDG-Related Activities

We will encourage and support employee activities outside the Group’s main business areas that contribute to SDGs achievement, including individual and group volunteer activities. This initiative is called ARE Holdings SDGs Activities. All 17 SDGs are the subject of activities that we encourage, and many of our members contribute to the SDGs through activities close to home.

Activity Results and Examples (since 2018)

A total of 346 cases/activities reported

Activity Examples

  • Organizing local events
  • Donating children’s clothing, school backpacks, and other items
  • Volunteering for disaster recovery efforts (Hiroshima, Okayama, Kumamoto, Fukuoka, Oita, Saga)
  • Participating in cleanup activities
  • Engaging in CO2 reduction initiatives (No My Car Day, forest management)

And more

Examples of Our Initiatives