Sustainability

Materiality

Sun*'s Material Issues

Purpose and Overview of Materiality Analysis

Sun* has established a global team to promote digital technology and creativity, and operates creative studios to accelerate digitalization across all industries. Through these activities, It has been made clear to us that our stakeholders are expecting us to demonstrate our firm commitment and actions to address issues related to society and the environment.

In 2001, we decided to systemically review the sustainability promotion activities we had previously been carrying out rather intuitively. We conducted an overall assessment incorporating stakeholder perspectives to identify materiality themes (material issues) that form the foundation of Sun* to create value in the long term. We took a 3 step approach in our materiality analysis: 1. Identification and Review of Potential Issues, 2. Assessment from Company and Stakeholder Perspectives, 3. Final Selection of Materiality Themes.

Step1

Identification and Review of Potential Issues

We selected potential Materiality themes most relevant to Sun* based on internal and external information and other material. In doing so, we referenced the global standards for sustainability reports, GRI "Sustainability Reporting Standard," SASB "Accounting Standard for Sustainability," the social responsibility international standard "ISO 26000" as well as the common global goals for the realization of a sustainable society, the SDGs (Sustainable Development Goals).

GRIのサステナビリティ・レポーティング・スタンダード、SASBのサステナビリティ会計基準、ISO26000、持続可能な社会に向けた世界共通のゴールであるSDGs (持続可能な開発目標) のロゴ

Step2

Assessment from Company and Stakeholder Perspectives

We assessed the themes identified in Step 1 from company and stakeholder perspectives. Officers and employees responsible for each potential materiality theme conducted the following assessments. 1) The materiality of the theme to the company from the viewpoint of the necessity of adopting strengthened initiatives i) to adapt to possible changes in society and technology in the medium to long term and ii) for the Company to achieve its ideals, 2) The materiality of the item from the perspective of stakeholders based on published materials such as by NGOs, investors, sustainability assessment institutions and media companies, and 3) Assessment from stakeholder perspective through exchanges of opinion with investors and outside experts.

Step3

Final Selection of Materiality Themes.

Based on the evaluation results of Step 2, we obtained management approval on the final selection of the Materiality themes.

The Result of the Review and Sun*'s Materiality Themes

Through the overall evaluation process mentioned above, we identified 10 Materiality Themes which are categorized into 5 areas, Digital Transformation and Business Co-Creation, Talent & Team, Community, Corporate Governance and Environment. We regard these 5 areas as material activity areas that underpin Sun*'s long-term value creation. Digital Transformation & Business Co-Creation is the value created through Sun*'s Digital Creative Studio itself, Talent & Team and Corporate Governance forms the basis, and Community and Environment are prerequisites for value creation. These items are deeply related to the 17 SDGs, making us believe that we can contribute to the achievement of the goals through our business activities. We will continue into the future to strengthen our efforts in relation to these materiality themes in order for us to achieve long-term value creation.

Category	Materiality Themes
Digital Transformation/Business Co-creation	Promoting Digital Transformation Across All Industries
	Developing Value Chains with Various Partners
	Improving Client Experience and Service Quality
Talent・Team	Identifying, Developing and Promoting Value Creation Talent and Teams
Talent・Team	Promoting Diversity and Inclusion
Community	Contributing to Society and Local Communities
Corporate Governance	Enhancing Corporate Governance and Risk Management
	Ensuring Business Ethics, Compliance and Anti-corruption
	Protecting Privacy and Information Security
Environment	Contributing to Address Climate Change, Environmental Pollution and Other Global Issues

Materiality

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