In the context of corporate sustainability, materiality refers to the “key issues” that a company should prioritize in its efforts. Originally, the term was used by investors to assess corporate value based on financial indicators during an era focused on economic growth.
However, as times have changed, non-financial indicators—such as environmental and social considerations—have become essential in evaluating companies. As a result, materiality now encompasses a broader range of issues.
By actively disclosing which issues we consider critical and what actions we take to address them, we demonstrate our commitment and earn the trust of stakeholders.
Here, we present Okada Aiyon’s Materiality (Key Issues), Commitments, and KPIs (Key Performance Indicators).
Our Four Material Issues
To continue operating responsibly on this planet, Okada Aiyon embraces sustainability and strives to fulfill our management philosophy: “a company with value to society.”
We prioritize the following four material issues:
- Achieving Carbon Neutrality
- Supporting Recycling Systems in Society
- Conserving and Effectively Utilizing Mountain and Forest Resources
- Promoting Workstyle Reform and Diversity
Materiality, Commitments, and KPIs
1. Achieving Carbon Neutrality
Commitment
- Minimize energy consumption and promote the use of next-generation renewable energy to realize a decarbonized society.
- Recognize the high importance of CO₂ emissions from demolition sites, forestry, and large-scale civil engineering projects where our products are used, and advance product development and improvements toward electrification and higher energy efficiency.
- Reduce CO₂ emissions in indirect operations and production processes.
KPI Outcomes
- Group (Scope 1 & 2):
- Net-zero CO₂ emissions by 2050 (excluding overseas sales companies)
- 50% reduction by 2030 compared to 2018 (excluding overseas sales companies)
- Scope 3:
- Establish frameworks and set targets for reducing CO₂ emissions
2. Supporting Recycling Systems in Society
Commitment
- Promote efficient resource utilization and recycling, critical for resource-scarce nations.
- Contribute to demolition site efficiency and a circular economy through waste material recycling.
KPI Outcomes
- Improve productivity of attachment-based demolition operations by 10% by 2030 (compared to 2020)
- Maintain a recycling rate of 98% or higher for construction waste such as concrete
3. Conserving and Effectively Utilizing Mountain and Forest Resources
Commitment
- Enhance efficiency in forestry operations
- Promote effective utilization of timber resources
- Provide equipment for transporting materials in difficult-to-access areas to enable effective land use
KPI Outcomes
- Improve productivity of forestry-related equipment by 10% by 2030 (compared to 2020)
- Contribute to maintaining hydropower generation capacity at 250 million kWh/year by 2030
4. Promoting Workstyle Reform and Diversity
Commitment
- Address declining domestic workforce through DX-driven productivity improvements and automation
- Create inclusive workplaces by improving recruitment, training, and promotion systems
- Ensure labor and human rights considerations extend to partner companies
- Strengthen corporate governance to support workstyle reform and diversity
KPI Outcomes
- Introduce systems to measure and improve employee well-being
- Increase female employee ratio from 13% (2021) to 25% (2030)
- Increase female director ratio from 12.5% (2021) to 25% (2030)
- Implement labor and human rights considerations in supplier selection
Materiality and Departmental Policies
1. Achieving Carbon Neutrality
Domestic Demolition Attachment Division
- Reduce CO₂ emissions in production processes
- Develop electrification technologies (fuel cells, hydrogen engines)
- Improve attachment performance to enhance productivity
Domestic Forestry Division
- Reduce CO₂ emissions in production processes
- Maintain forest resources for CO₂ absorption
- Contribute to biomass power generation through chipper delivery
Overseas Division
- Reduce CO₂ emissions at overseas sales companies
Administrative Division
- Reduce CO₂ emissions at headquarters, branches, and factories
2. Supporting Recycling Systems in Society
Domestic Demolition Attachment Division
- Improve attachment performance and productivity through coupler installation
- Reduce product failure rates
- Minimize downtime through repair and maintenance systems
3. Conserving and Effectively Utilizing Mountain and Forest Resources
Domestic Forestry Division
- Develop equipment for effective forest resource utilization
- Improve productivity of related machinery
- Reduce failure rates and downtime through maintenance systems
- Contribute to resource utilization through cable crane construction
4. Promoting Workstyle Reform and Diversity
Domestic Demolition Attachment Division
- Implement human rights considerations for suppliers
- Develop automation and remote operation technologies to reduce labor accidents
Domestic Forestry Division
- Develop automation and remote operation technologies to reduce labor accidents
Overseas Division
- Create environments that enable paid leave and safe working conditions
- Expand equal opportunity and career support
Administrative Division
- Promote equal opportunity and career development
- Strengthen environments that respect human rights
