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Material Issues and KPIs of the Asahi Group

In 2022, alongside settling on "Cheer the Future," our promise to the future, and "Sustainability Stories," we have also reviewed our material issues. While the material issues themselves will remain the same, we have established objectives to accelerate the integration of sustainability into management, and reorganize our initiatives. We subsequently set key initiatives to which we will focus our management resources from among those initiatives.

Material Issues

KPIs for Individual Material Issues

The Group has also established KPIs for each of its material issues and is closely monitoring the progress of efforts to address these issues under the sustainability governance structure. We have established task forces on the key initiatives in the governance system and have incorporated the groupwide targets into the targets of each Regional Headquarters (RHQ).

Background for Identifying Material Issues

The Asahi Group revised its material issues in 2020 and, in 2022, reevaluated our material issues in line with the formulation of a new Medium- to-Long-Term Management Policy that includes long-term strategies. As a result, while the material issues themselves remain unchanged, we have organized the initiatives and determined key initiatives on which to focus management resources.
When revising material issues, we incorporated perspectives on future trends, such as backcasting from megatrends and future projections, and chose what is needed in terms of sustainability to achieve the Asahi Group Philosophy. In identifying key initiatives, we emphasized the perspective of "whether we can create unique value" of importance to the Asahi Group.

Processes for Identifying Material Issues

1. Identifying social issues

A broad range of social issues were identified for consideration based on the following perspectives.

  • Sustainability report guidelines (GRI standard / SASB)
  • ESG assessments (FTSE / MSCI / Sustainalytics / CDP)
  • SDGs
  • World Economic Forum (WEF) Global Risks Report
  • Global megatrends, future predictions
  • Other social issues unique to the businesses of the Asahi Group

2. Mapping of the identified social issues

The Asahi Group mapped the identified social issues from the viewpoints of their importance to society, stakeholders, and the Asahi Group, and the issues that were classified as falling into similar categories were reviewed for material issues.

Mapping of the identified social issues

3. Evaluating adequacy

After discussions with each RHQ, top management of the Asahi Group Holdings evaluated the adequacy of the material issues through deliberations by the Corporate Strategy Board and Board of Directors.

4. Identifying and periodically assessing material issues

Through the processes described in 1 through 3 above, in 2020 the Asahi Group identified five material issues to be addressed as management issues and the overall initiatives to be tackled. In 2022, the Asahi Group reevaluated our material issues in line with the formulation of a new Medium- to-Long-Term Management Policy that includes long-term strategies and assessed our material issues. We confirmed that there was no need to change the material issues themselves. However, we recognized that the scope of our initiatives was too broad and the allocation of management resources was too scattered. As such, we decided to focus on key initiatives that would create more unique value for the Asahi Group. The Asahi Group will implement the PDCA cycle by setting KPIs for each initiative, focusing on key initiatives, and periodically assessing achievements.

Progress on Material Issue Initiatives

The statuses of initiatives addressing material issues in 2021 are as detailed in the Data Book below. Under our sustainability promotion framework, reasons will be identified for unachieved targets and efforts promoted toward achievement.