Our Approach to Sustainability Materiality (material issues)
Recognizing that the realization of a sustainable society is essential for CSIF’s sustainable growth and will mitigate CSIF’s business risks, CSIF believes that contributing to the resolution of social issues through its business is in line with CSIF’s basic policies of “building a more sustainable economy and society through achievement of the basic philosophy” and “enhancing unitholder value in the medium and long term.
In specific initiatives, CSIF and CSAM held much discussion based on material issues from the two perspectives (double materiality) of the IIRC (materiality from the investor’s perspective as defined in the Guidance for Collaborative Value Creation published by the Ministry of Economy, Trade and Industry, etc.; environmental and social issues which have a material impact on a company’s value creation so to speak) and GRI (materiality from a multi stakeholder perspective as defined in Global Reporting Initiative, etc.; most significant impacts of an organization’s activities on the economy and environment), taking into consideration the impact on CSIF’s business and performance and stakeholders’ expectations and interest, and they then identified the ESG issues which were especially important for CSIF (materiality) as follows.
Material Issue Identification Process
When identifying materiality, CSAM’s Sustainability Promotion Secretariat, which is made of members from across the organization, holds discussions to extract issues and identify materiality, which is then approved by the Sustainability Committee as the decision-making body.
Step1 Extraction of issues
When extracting issues likely to impact the sustainable growth of the environment, society and the economy, CSIF went beyond the scope covered in this report, widening the scope to include areas in which CSIF's activities have a direct or indirect impact, and held wide ranging discussions with reference to the following external information.
- Global problem-solving framework: SDGs
- Matters of interest to investors and other stakeholders: GRI, SASB Standards, GRESB Infrastructure Asset Assessment criteria, MSCI and other rating criteria used by ESG rating agencies
STEP 2 Identification of Materiality
Each of the extracted issues was put in order of priority based on “impact on CSIF’s investment policy and performance” and “impact on stakeholders and environment and society” and the material issues which CSIF should focus on as a priority were identified.
Step3 Deliberation and Approval by the Sustainability Committee
Each of the material issues was approved by the Sustainability Committee, which is chaired by CSAM’s CEO and Representative Director as the person with final decision authority, following deliberation of their appropriateness.
Step4 Sharing and periodic review of material issues
The identified material issues are shared with all CSAM’s officers and employees and CSIF’s Directors and must be reviewed periodically to ensure flexible adaptation to changes in society and the environment.
Overview of Materiality (Material Issues)
CSIF and CSAM identify issues to be addressed as a priority as materiality (material issues).
As shown in the figure below, CSIF and CSAM are working to achieve their basic philosophy by focusing on the eight material issues that make up the three tiers "The Value We Create," "Sources of Value Creation" and "Management Base and Material Issues Underpinning Sustainable Value Creation."
Our Approach to Materiality (Material Issues)
The material issues we identified, our goals, key issues to be addressed, and the corresponding SDGs are as shown below.
- The Value We Create
- Sources of Value Creation
- Management Base and Material Issues Underpinning Sustainable Value Creation
Going forward, CSIF and CSAM plan to set KPIs based on the progress of initiatives to address each key issue implemented through their business activities.
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| Materiality | Goal | Key issues | Related SDGs | |
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| The Value We Create | Creating and providing renewable energy and contributing to the reduction of GHG emissions | Increased supply of renewable energy to meet the renewable energy needs of consumers and greater contribution to reduction of GHG emissions |
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| Sources of Value Creation | Maximizing the long-term value of assets | Introduction of high-quality, high-efficiency PV power generation equipment, and achievement of stable operation in the long term through high-level O&M services |
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| Cultivating human resources and developing skills | Development of human resources with high levels of expertise and skills in the renewable energy field and provision of great places to work |
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| Ensuring the health and safety of employees | Improvement of productivity and happiness through the physical and mental wellbeing of each employee and the development of a safe working environment |
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| Management Base and Material Issues Underpinning Sustainable Value Creation | Enhancing and strengthening governance, compliance and risk management | Establishment of a sophisticated governance framework that contributes to sustainable growth and the enhancement of unitholder value |
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| Fulfilling social responsibility | Steady fulfilment of social responsibility in cooperation with stakeholders to address issues such as respect for human rights and protection of the environment |
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| Cooperating with local communities | Strengthening of relationships of trust with local communities through active communication and activities that contribute to local communities |
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| Properly disclosing information and ensuring transparency | Timely and accurate provision of information to stakeholders |
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