Material Issues
SoftBank Corp. has identified six material issues to address in order to develop both a sustainable society and sustainable growth based on the concept of “a world where all things, information, and minds are connected”. We believe these six material issues embody our corporate philosophy “Information Revolution - Happiness for Everyone” and serve as an important compass connected to our “Beyond Carrier” growth strategy.
Through the identification of and response to material issues, SoftBank will accelerate the implementation of its management strategy and contribute to the realization of a sustainable society.
Sustainability strategy
Six material issues
The material issues are divided into those related to resolving social issues through business activities, namely “building society and industry through digital transformation (DX),” “connecting people and information to create new excitement” and “creating new businesses through open innovation,” as well as those related to solving social issues through corporate activities, namely “contributing to the global environment with the power of technology,” “building high-quality social infrastructure” and “developing a resilient management foundation.”
We also view materiality not only as an opportunity to mitigate risks in our corporate and operational activities, but also to accelerate our sustainable growth.
Combining a visionary perspective for the future with SoftBank's unique point of view, the six material issues originate from contemporary society and our business, as well as from our focus on the future social environment and its challenges.
Target KPIs
The KPIs listed here are representative KPIs for each materiality.
Please refer to the Sustainability Report 2023
for the targets and results of Material Issue KPIs for FY2023.
| Material Issue | Target KPIs |
|---|---|
| Building Society and Industry through DX |
|
| Connecting People and Information to Create New Excitement |
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| Creating New Business through Open Innovation |
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| Contributing to the Global Environment with the Power of Technology |
|
| Building High-quality Social Infrastructure |
5G deployment plan
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| Developing a Resilient Management Foundation |
|
[Notes]
- *1
CAGR: Compound annual growth rate, calculated by the group
- *2
Figure for PayPay Corporation only
- *3
Large Language Model
- *4
Scope 1 (direct greenhouse gas emissions by the company itself) and scope 2 (indirect emissions from the use of electricity, heat, and steam supplied by other companies) emissions are included in the total.
- *5
Total for SoftBank Corp. and Wireless City Planning, Inc.
- *
Unless otherwise specified, the KPI metrics and targets are for SoftBank Corp. on a non-consolidated basis.
Identifying
material issues
Issues are identified from the external (stakeholder) level of importance, including international guidelines such as the GRI Standards and SDGs, discussions at international conferences, investor opinions, and the views of experts representing external stakeholders, as well as our own level of importance based on discussions within each general manager, division, and subsidiary-related company, and are evaluated and set based on both perspectives.
In addition, we review material issues in each fiscal year in light of changing expectations from external stakeholders and societal trends toward ensuring the effectiveness of ESG promotion.
In implementing the material issues identification and verification process, the ESG Promotion Committee discusses the results of several discussions based on materiality assessments made by the ESG promotion managers of each division and group company based on their short-, medium-, and long-term plans, and the results of materiality assessments are approved by the Board of Directors.
In the process of materiality and its identification and verification, in addition to the impact of our business on changes in society and the external environment*1, the outlook, status and importance*2 of our business, based on the principle of double materiality, our positive and negative impacts on society and the environment are also reflected in our materiality and the value we create.
The entire company, including directors, senior management, and employees, reaffirms that these initiatives will further accelerate our management strategy and are important key drivers for becoming a comprehensive digital platform provider, and we will continue to promote both the realization of a sustainable society and the sustainable growth of our company.
[Notes]
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*1
The increased importance of climate strategy, and natural capital (including biodiversity); and the increased importance of information security and the protection of data and personal information, and human capital
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*2
The further promotion of the practical implementation of digital technologies and corporate and social DX; the creation of new lifestyle value and pursuit of customer value; global-scale business expansion; energy sector initiatives;advancement of AI Governance, and the increased importance of coordination with group companies and strengthening of synergy
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*
The adoption of the international target “Nature Positive” at the Conference of the Parties to the Convention on Biological Diversity (COP15), the publication of the final recommendations of TNFD, and other international efforts aimed at enhancing global significance are evaluated. Starting from the FY2024, we will position “Contribution to Biodiversity Conservation” as an important materiality and manage its value creation
-
*
Obtained third-party assurance for materiality identification process (Japan Quality Assurance Organization)
External Importance
Based on the requests for various issues from international guidelines (GRI, SASB, SDGs, etc.), international reports (WBCSD VISION2050, etc.), stakeholders such as experts (university professors, industry celebrities, etc.) and investors, and external initiatives such as ESG ratings, we identify our materiality considering both the impact of society and the environment on the Company and the Group, as well as the impact of the Company and the Group on society and the environment.
Internal Importance
Based on our and our group's short- and medium-term plans and their importance in the long-term future, as well as international reports such as WBCD VISION2050 (Macro Trends and Disruptions Shaping 2020~2030) and future forecast reports issued by the Japanese Cabinet Office, importance is determined considering both the impact of society and the environment on the Company and the Group, as well as the impact of the Company and the Group on society and the environment, and we identify our materiality after discussions by the ESG Promotion Committee.
- Building society and industry through DX
-
Connecting people and information to create
new excitement - Creating new business through open innovation
- Contributing to the global environment with the power of technology
- Building high-quality social infrastructure
- Developing a resilient management foundation
[Note]
-
*3
Environmental and social impacts on the company and the company's impacts on the environment and society
- 1Expand and enhance the efficiency of the industrial base through cutting-edge technologies
- 2Create new industries through DX
- 3Revitalize local communities (regional revitalization)
- 4Realize attractive customer value through the spread of smart devices
- 5Provide an environment in which everyone can access information
- 6Leveraging ICT to create new lifestyles and enhance the foundations for daily life
- 7Develop new business with cutting-edge technologies
- 8Incubate and spiral-up cutting-edge businesses overseas
- 9Build systems to recruit and develop human resources to lead growth and create new businesses
- 10Contribution to climate change policy/measures through technology and business
- 11Promote a recycling-based society (circular economy)
- 12Contribution to biodiversity conservation
- 13Realize a prosperous society through the spread of renewable energy
- 14Prepare sustainable life infrastructure
- 15Construct robust communications infrastructure to contribute to disaster prevention and mitigation
- 16Promotion of data security and privacy protection initiatives
- 17Enhance corporate governance and ensure its effectiveness
- 18Sustainable growth through cooperation with stakeholders
- 19Promoting employee well-being and advancing DE&I to maximize human capital
- 20Enhance productivity with advanced workplace environments
Principle of double materiality
The principle of double materiality is the concept that importance should be considered from two aspects: the financial impacts of society and the environment on the company, as well as the impacts of corporate activities on society and the environment.
The concept is advocated in international guidelines and others. We identify our material issues based on the principle of double materiality, considering not only the impacts of society and the environment on the Company and the Group but also the impacts of our corporate and business activities on society and the environment. The impacts of the company are considered with respect to both positive and negative impacts on each stakeholder.
| Material issues | Impact on society and the environment | Major Stakeholders | |
|---|---|---|---|
| Building Society and Industry through DX | Positive |
|
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| Negative |
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| Connecting people and information to create new excitement | Positive |
|
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| Negative |
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| Creating new business through open innovation | Positive |
|
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| Negative |
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| Contributing to the global environment with the power of technology | Positive |
|
|
| Negative |
|
||
| Building high-quality social infrastructure | Positive |
|
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| Negative |
|
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| Developing a resilient management foundation | Positive |
|
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| Negative |
|
||
Integrate sustainability-related risks into enterprise-wide risk management
We integrate sustainability risks related to identified material issues (e.g., climate change, human resource development and retention, etc.)into company-wide risk management.
Every half year, the Risk Management Committee, whose members include the president, vice presidents, CFO, etc., and which is attended by corporate auditors and the heads of related departments, is held to evaluate and monitor risks and to review risks. Please refer to Risk Management for specific risk descriptions and management systems.
Social impact measurement and evaluation
In addition to monitoring the outputs related to the identified material issues through Material Issue KPIs, we measure and evaluate the impact on society (social impact) of some of the materiality-related projects.
| Initiatives | Impact on external stakeholders | Amount of money | Related material issues |
|---|---|---|---|
| Smartphone classes |
|
4710 million yen*1 | “Connecting People and Information to Create New Excitement” (2) Provide an environment in which everyone can access information |
| Mobile phone recycling |
|
1057 million yen*2 | “Contributing to the Global Environment with the Power of Technology” (2) Promote a recycling-based society (circular economy) |
[Notes]
- *1
Societal costs associated with learning how to use smartphones and economic benefits from the Increase of Smartphone Users
- *2
Social cost associated with industrial waste management and value of useful metals returned to society through mobile phone recycling
Please refer to the Sustainability Report 2023 for the targets and results of Material Issue KPIs for FY2023.