Materiality and Identification Process

Sustainability

Materiality

Materiality of SMAS

Based on our management philosophy and from the perspectives of ESG (Environment, Social, and Governance), SMAS has identified key material issues and is promoting company-wide initiatives aimed at building a sustainable future.

Materiality

Our Six Material Issues

  • Industry, innovation and infrastructure
  • Sustainable cities and communities
  • Responsible consumption and production
  • Climate action

Realizing a Global Environment Where Future
Generations Can Live with Peace of Mind

The global environment is a shared asset of all humankind and must be passed on to future generations. Through our business activities, we are committed to contributing to a decarbonized and circular society in the future, while also engaging in environmental conservation initiatives beyond our business operations. In doing so, we aim to help build a society where future generations can live with peace of mind.

  • Good health and well-being
  • Industry, innovation and infrastructure
  • Sustainable cities and communities

Advancing a Mobility Society through
the Creation of New Value

The automotive industry is said to be undergoing a once-in-a-century transformation. Amid this rapidly changing mobility market, we aim to contribute to the evolution of the mobility society by continuously providing customers with new value and ever-advancing services.

  • Industry, innovation and infrastructure
  • Peace, justice and strong institutions
  • Partnerships for the goals

Mutual Growth through Co-creation with Partners

For a company to achieve sustainable growth, collaboration with diverse stakeholders is essential. We aim to deepen our relationships with partners and take on new challenges together, continually creating value and achieving mutual growth.

  • Good health and well-being
  • Industry, innovation and infrastructure
  • Sustainable cities and communities

Coexistence and Collaboration with Local Communities

Our business activities have a wide-ranging impact on local communities. Recognizing this fact, we aim as a responsible corporate citizen to contribute continuously to the development and revitalization of local communities through both our business operations and social contribution initiatives.

  • Gender equality
  • Decent work and economic growth
  • Reduced inequalities

Respect for Human Rights and
Strengthening of Human Resource Foundations

We recognize that our people are the key to sustaining growth. Positioning respect for human rights and the strengthening of our human resource foundations as a material issue, we strive to create an environment where every individual can perform to their fullest potential and where diverse perspectives and values are embraced.

  • Peace, justice and strong institutions

Ensuring Sound and Sustainable Corporate Activities

To remain a sound and trustworthy company, we conduct our business activities proactively based on strong corporate governance, compliance, and risk management, with the aim of earning the continued trust of our stakeholders. To this end, we recognize the importance of closely monitoring changes in the external environment and responding appropriately through active dialogue with shareholders and external experts.

Materiality Identification Process

In 2021, we reviewed our material issues (materiality) to focus resources on the most critical areas and achieve sustainable growth. Drawing on our corporate vision, management philosophy, and code of conduct, as well as international frameworks such as the United Nations Global Compact’s Ten Principles across four areas, the Sustainable Development Goals (SDGs), and other relevant guidelines, we assessed our current situation and evaluated the significance of each issue for our business and stakeholders. From an ESG perspective, we identified key challenges and clarified their priorities. We then formulated specific actions to contribute to the global environment and society while advancing a sustainable future. We also review these material issues regularly, ensuring a flexible response to changes in the external environment, emerging risks, and new opportunities, and continuously strengthening initiatives that enhance corporate value and fulfill our social responsibilities.

Medium- to Long-term Targets and Business Plan

To enhance the effectiveness of our material issues, we have established medium- to long-term environmental and social targets: environmental goals on climate change in 2017, and social goals addressing safety and human resources in 2021. We have been steadily promoting activities aligned with these targets. In April 2025, we launched a new business plan titled SMAS Evolution 2025∞, aiming to become a mobility platform provider for a sustainable society. This plan links our business plan with our material issues, fostering greater employee awareness of sustainability and contributing to the realization of a sustainable society. Furthermore, through technological innovation and digital transformation, we are working to reduce environmental impact, enhance safety, and strengthen relationships of trust with our stakeholders.

Materiality Initiatives Items Indicators Target year Goal
E

Realizing a Global Environment Where Future Generations Can Live with Peace of Mind

  • Initiatives toward a decarbonized and circular society
Promoting the use of EVs for company vehicles Ratio of EVs in company vehicles FY2030 100%
S

Advancing a Mobility Society through the Creation of New Value

  • Evolution into a mobility platform provider
  • Building a safe and secure society for the mobility of people and goods
Provision of hardware and development of permanent solutions for a safer and more secure society Number of serious traffic accidents (fatal accidents) FY2030 0

Mutual Growth through Co-creation with Partners

  • Strengthening relationships with partners
  • Implementing fair and equitable business practices

Coexistence and Collaboration with Local Communities

  • Providing solutions that contribute to local community development
  • Active participation in social contribution activities

Respect for Human Rights and Strengthening of Human Resource Foundations

  • Creating a fulfilling and rewarding workplace environment
  • Promoting diversity and inclusion
Promotion of women’s empowerment Ratio of female managers FY2027 15%
Human resource development Training hours per employee FY2027 30 hours or more per person
G

Ensuring Sound and Sustainable Corporate Activities

  • Maintaining and enhancing corporate governance
  • Strengthening compliance
  • Enhancing risk management

ISO initiatives

  • ISO 14001 (Environmental Management Systems) certified at all 29 branches and offices
  • ISO 39001 (Road Traffic Safety Management Systems) certified at Tokyo and Osaka Head Offices

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