Indicators for materiality (KPIs)

Indicators for materiality (KPIs) in Medium-term Plan 2027

The Environment

Materiality

Major Initiatives

Indicators (KPIs)

Targets

Creating a resource-recycling society

Enhancing products and services that reduce social and environmental risks

Further strengthening the recycling-oriented business model

Number of themes for creating arteriovenous collaborative businesses

3 new themes or higher

(FY2027)

Expansion of items of recycled metals and metal products

Number of recycled metal certified items (FY2024:8 items)

15 items or higher

(FY2027)

Promotion of recycling that contributes to green transformation (GX)

Volume of spent lithium-ion batteries recycled and processed (FY2024=100%)

400%

(FY2027)

Responding to climate change

Management for GHG reduction

GHG emissions (Scope 1 and 2)

Reduction by 22% compared to FY2013 (FY2027)

Creating and expanding products and services that contribute to society's measures to combat climate change

Number of items of DOWA Green Action (FY2024:22 items)

50 items or higher

(FY2027)

Protecting the environment

Strengthening environmental management system that compliant with ISO 14001 and EA21 certification

Ratio of business locations operating under the DOWA’s EHS-MS (environmental, health, and safety management system)

100%

(FY2027)

Prevention of pollution and environmental accidents

Number of environmental accidents

0

Conservation of biodiversity

Information disclosure based on the TNFD

Establishment a system to approach to biodiversity

Social

Materiality

Major Initiatives

Indicators (KPIs)

Targets

Ensuring occupational safety and health

Strengthening health and safety management system that compliant with ISO 45001 certification

Ratio of business locations operating under the DOWA’s EHS-MS (environmental, health, and safety management system)

100%

(FY2027)

Prevention of recurrence of work-related accidents

Frequency rate (including dispatch workers and contractors)

0.7

Severity rate (including dispatch workers and contractors)

0.01

Permeating of health and productivity management

Ratio of employees who received regular medical examinations (Groupwide)

100%

Strengthening the promotion framework of health and productivity management

Expansion of the quality and quantity of health and productivity management

Enhancing human capital

Reduction of resignation rate

Retention rate of new hires three years after employment (HD employees)(*)

100%

Greater support for balancing childcare and nursing care with work

Ratio of male employees taking childcare leave (HD employees)(*)

100%

(FY2027)

Reduction of working hours

Ratio of employees taking paid leave

80%

Promotion of the participation and advancement of women

Ratio of new hires who are women (HD employees)(*)

30%

Respecting human rights

Strengthening the Group's human rights response

Identification of key human rights risks in the value chain

Identifying and addressing salient human rights issues

Spreading awareness of human rights

Implementation of education on key human rights risks

Continuous implementation and expansion of contents

(*)HD employees include those seconded from DOWA HOLDINGS to group companies, excluding those seconded to DOWA HOLDINGS from group companies.

Governance

Materiality

Major Initiatives

Indicators (KPIs)

Targets

Strengthening corporate governance

Promoting risk management

Cultivating a control environment

Strengthening internal control education

Expansion of hierarchical education

Upgrading the quality assurance

Strengthening quality management system that compliant with ISO 9001 certification

Compliance rate of domestic business locations with products

100%

(FY2027)

Strengthening quality assurance education

Number of participants

500 total

(FY2025-FY2027)

Driving DX (data utilization)

Business transformation through DX, AI and cloud utilization

DX Promotion Indicators (management side) (FY2024:3.0)(*)

3.3

(FY2027)

Strengthening IT governance

DX Promotion Indicators (IT side)

(FY2024:2.7)(*)

3.0

(FY2027)

Development of DX-proficient human resources

Number of DX engineers trained

150 total

(FY2025-FY2027)

(*) DX promotion indicators are based on those created by the Ministry of Economy, Trade and Industry

Indicators for materiality (KPIs) in Medium-term Plan 2024

The Environment

Materiality

Major Initiatives

Indicators (KPIs)

FY2023 Results

Targets

Materiality 1

Creating a resource-recycling society

Increase collection of recycled raw materials

Volume of recycled raw materials collected by Kosaka Smelting & Refining (FY2021 = 100)

108

110

(FY2024)

Volume of spent catalysts from automobile exhaust purification collected (FY2021 = 100)

70

140

(FY2024)

Volume of spent lithium-ion batteries recycled and processed (FY2021 = 100)

202

400

(FY2024)

Increase ratio of metals derived from recycled raw materials(*)

Ratio of metals derived from recycling that are used in production (based on sales in the Nonferrous Metals Business)

58%

70%

(FY2024)

Materiality 2

Enhancing products and services that reduce social and environmental risks

Expansion of sales of key products and services based on customer needs

Materiality 3

Responding to climate change

Promotion of company-wide activities to combat climate change

Establishment of a system to promote climate change response

- Publication of roadmap for responding to climate change

- Developed contribution targets for our products and services that contribute to the reduction of GHG emissions in society

- Publication of TCFD Report

- Create a roadmap for climate change response

Establishment of company-wide policies and targets for climate change response

TCFD initiatives

Materiality 4

Protecting the environment

Establishment of an environmental management system (Establish and maintain an ISO 14001- or EA21-compliant systems)

Ratio of business locations operating under DOWA’s EHS-MS (environment, health, and safety management system) that compliant with

ISO-certification

80%

100%

(by March 31, 2025)

Improvement of risk management

(Minimize risk of environmental accidents and improve response capabilities)

Number of environmental accidents

4

0

(*) “Recycled raw materials” in this item includes secondary smelting raw materials other than recycled raw materials for Kosaka Smelting and Refining Co., Ltd.

Social

Materiality

Major Initiatives

Indicators (KPIs)

FY2023 Results

Targets

Materiality 5

Ensuring occupational safety and health

Improvement of management system

Ratio of business locations operating under the DOWA’s EHS-MS

13%

100%

(by March 31, 2025)

Prevention of recurrence of work-related accidents

Frequency rate

(including dispatch workers, excluding contractors)

1.63

0.7

(FY2024)

Severity rate

(including dispatch workers, excluding contractors)

0.03

0.01

(FY2024)

Promoting Health Management

Ratio of employees who received regular medical examinations

96.9%

(Tokyo area)

100%

(Groupwide)

Materiality 6

Increasing organizational power

(including promotion of diversity, job security, and human resource development)

Reduction of resignation rate

Average retention rate three years after joining the Company (for new graduates at DOWA HOLDINGS)

94%

Maintain 100% rate

Implement job satisfaction surveys for employees

Continued survey implementation

Conduct surveys on a regular basis

Disclosure of Policy for Human Resources Development (Formulate policy and disseminate via the DOWA corporate website and the in-Company portal site)

Formulation of a human resource development policy and to be published inside and outside the Company

Developed an education management system under the Policy for Human Resources Development

Announce and disseminate policy

Development of global human resources (Build a system to impart basic knowledge necessary foroverseas assignments to be implemented one year prior to assignment)

Implementation of education before overseas assignments and expansion to include post-assignment education

Continued post-assignment online education

Continue implementation of educational programs

Greater support for balancing childcare and nursing care with work

Increase in the ratio of men that take childcare leave (HD employees)(*)

73.7%

100%

(FY2024)

Reduction of working hours

Increase in the ratio of annual paid leave days taken

88.6%

80% or higher

Promotion of the participation and advancement of women

Increase in the ratio of new hires who are women (HD employees)(*)

27%

30% or higher

Promotion of the participation and advancement of employees up to the age of 65

Introduction of an option to postpone retirement

Introduced at business subsidiaries (98% introduction rate)

Introduce at all subsidiaries

Protection of human rights

Elimination of harassment

Began diversity, equity, and inclusion training

Continue to implement training

Promotion of the participation and advancement of people with disabilities

Ratio of employment of people with disabilities

2.5% (DOWA HOLDINGS)

2.3% or higher (Groupwide)

(*)HD employees include those seconded from DOWA HOLDINGS to group companies, excluding those seconded to DOWA HOLDINGS from group companies.

Governance

Materiality

Major Initiatives

Indicators (KPIs)

FY2023 Results

Targets

Materiality 7

Promoting risk management

Creation of an ISO 9001 compliant system

Compliance rate of business locations that create products

78%

80%

(FY2024)

Establishment of quality assurance education

Number of participants

166

(total of 335)

350 total

(FY2022 to FY2024)

Materiality 8

Strengthening corporate governance

Effective and efficient development and operation of internal control systems

Materiality 9

Driving DX (data utilization)

Building of IT infrastructure

Operation of a Groupwide cloud platform

Start of operation

(August 2023)

Start operation in the second half of FY2023

Development of DX-proficient human resources

Number of personnel trained

54

(total of 121)

80 total

(FY2022 to FY2024)