Strategy
Identifying Environmental Material Issues
Environmental Targets of the Medium-Term Environmental Plan 2025
Environmental Material Issue Evaluation and Identification Process
Companies must address a wide range of environmental issues, such as climate change, resource depletion, plastic pollution, water, and biodiversity. In light of recent changes in society and the evolving business environment, Konica Minolta has identified material issues related to the environment. The Company aims to prioritize these issues and promote initiatives to help solve them while also achieving business goals. Konica Minolta has identified five material issues from the perspective of sustainability and has analyzed them in more detail — “addressing climate change,” “using limited resources effectively,” and “ensuring social safety and security (safety of chemical substances)” — to set specific measures.
To identify its material issues, the Group first compiled a comprehensive list of environmental issues by incorporating international guidelines, as well as various stakeholder requirements. It then identified key issues based on their importance to stakeholders and their relevance to the business. To determine the importance of each issue to the business, impacts were quantitatively evaluated using five levels. Risk analysis was used to calculate the potential profit loss if a certain risk materialized, as well as the potential profit gain if a potential opportunity was seized. In determining the importance of each issue, the Group maintained objectivity by seeking the opinions of outside experts. The Group Environmental Officer, who chairs the Group Environmental Promotion Committee, verified this evaluation process and the resulting material environmental issues before identifying those that should be prioritized.
Identifying Material Issues from Both Risks and Opportunities
When evaluating and identifying material issues related to the environment, Konica Minolta identified various environmental factors related to its business in terms of both risks and opportunities. Based on these findings, material issues were selected where solutions can lead to business growth. The Company reviews each material issue annually to ensure the issues selected and related plans are appropriate.
Through this process, goals for reinforcing the business are matched with environmental targets. The plan then becomes a commitment for both top management and the entire organization, resulting in effective environmental management.
The Medium-Term Environmental Plan 2025 identifies the three most important issues as “addressing climate change,” “using limited resources effectively,” and “ensuring social safety and security (safety of chemical substances).”
【Opportunities for Each Material Issue】
* Items marked in purple are reduction beyond scope of Konica Minolta responsibility and items marked in blue are reduction for which Konica Minolta is responsible.
| Materiality Items (Opportunity) | |
|---|---|
| 1 | Digital solutions that transform the supply chains of the printing and apparel industries |
| 2 | Transform customer manufacturing processes with inkjet technology |
| 3 | Sensing technology that contributes to the sorting and recycling of used plastics |
| 4 | Ecosystem that helps companies solve environmental issues and create new innovations |
| 5 | Promote energy reduction and renewable energy with suppliers |
| 6 | Expand business through gas monitoring to prevent leaks |
| 7 | Early introduction of renewable energy |
| 8 | Reduce costs through energy reduction |
| 9 | Develop new markets and strengthen competitiveness through recovery and effective utilization of Konica Minolta products |
| 10 | Provide materials, parts, and product services with a low carbon footprint |
| 11 | Utilize renewable resources |
| 12 | Reduce energy and paper consumption through work style reforms in offices and other locations |
| 13 | Cut costs by improving resource efficiency |
| 14 | Contribute to water infrastructure, help to counter obsolescence, and support monitoring |
| 15 | Create technologies that contribute to use of renewable energy and new energy |
| 16 | Create technologies that contribute to ecosystem recovery |
【Risks for Each Material Issue】
| Materiality Items (Risks) | |
|---|---|
| 1 | Ban on substances that contaminate ecosystems and damage the health of people (response to stricter regulation on chemical substances) |
| 2 | New emissions regulations and tax system, rising energy prices, rising manufacturing costs due to fossil fuel alternatives |
| 3 | Delay in introduction of renewable energy |
| 4 | 1.5℃/net zero target and inadequate performance |
| 5 | Delayed introduction of internal carbon pricing and linked officer compensation |
| 6 | Delayed provision and disclosure of carbon footprint and footprint reduction |
| 7 | Declining competitiveness due to unsustainable resource use, insufficient supply of natural resources, and restricted access to forest resources |
| 8 | Supply chain interruptions due to large-scale natural disasters |
| 9 | Inadequate support for low carbonization and energy-saving Konica Minolta components |
| 10 | Delay in supporting products and components for the circular economy |
| 11 | Delay in supporting containers and packaging for the circular economy |
| 12 | Decline in stakeholder assessment due to lack of support for non-financial disclosure |
| 13 | Costs incurred for measures to prevent soil contamination |
| 14 | Depletion of resources (precious metals) |
| 15 | Delays or stoppages in procurement and production due to depletion of water resources and water risks |
| 16 | Costing of virtual water |
| 17 | Impact of ecosystem destruction due to manufacturing and use of raw materials |
| 18 | Soil contamination |
| 19 | Water contamination |
| 20 | Legal compliance and management of waste |
Important Environmental Issues for Product Life Cycles
Konica Minolta identifies material environmental issues, including risks and opportunities, throughout its value chains. These issues need to be specifically addressed by the responsible departments within each business segment, including product planning and development, procurement and production, as well as sales and service. The Group also determines when business risks and opportunities related to important environmental issues are likely to materialize, based on short, medium, and long-term perspectives.
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Impact of Business Risks and Opportunities Related to Important Environmental Issues
As current environmental and social issues become even more serious, risks may materialize and affect Konica Minolta’s business activities. In the long term, manufacturing will face even greater risks, such as the substitution of fossil resources and fossil fuels, supply shortages of natural resources due to changes in climate patterns, depletion of water resources and water withdrawal restrictions, and limited access to forest resources. These risks need to be addressed.
In the short and medium terms, there are also risks such as the procurement of renewable energy, rising fossil resource and fossil fuel prices, new emissions regulations and taxation systems/product energy efficiency regulations and market responses, reduced use of paper in the office, and supply chain interruptions caused by major climate disasters. Unless suitable measures are taken now, the Group could face higher costs, loss of business opportunities, and shutdowns due to damage to facilities and the labor environment. Furthermore, failure to comply with new chemical control regulations, including those that restrict certain chemical content in products, could lead to lost sales opportunities and lower revenues.
On the other hand, Konica Minolta believes it can create business opportunities by providing solutions to help solve these environmental issues. By actively introducing cutting-edge technology and combining it with Konica Minolta's strengths in imaging IoT technology and digital input and output, the Group is transforming itself into a digital company with insight into implicit challenges. The aim is to create solutions that help resolve social and environmental issues, including climate change.
With regard to the global environment, the Group is working to address issues such as climate change, resource depletion, waste, water, and biodiversity by incorporating them into its medium and long-term business strategies. For example, environmental impact can be lowered by reducing production, transportation, inventory, and disposal in the manufacturing industry. Konica Minolta believes that it is contributing to this solution by providing on-demand equipment for industrial printing of materials such as packaging, labels, and textiles. In addition, providing products and solutions that reduce the environmental impact of our customers’ production processes will lead to opportunities in industries that are subject to diverse environmental demands. These efforts illustrate how Konica Minolta sees environmental management as a key business strategy. In short, the Company believes the purpose of environmental management is both to achieve business expansion and improve environmental issues.
Target Setting Process
The President and CEO has ultimate responsibility for and authority over all environmental management including climate change issues and is also accountable for its effectiveness. The President and CEO appoints the Group Environmental Officer to execute environmental management and handle environmental measures. The Group Environmental Officer formulates a medium-term plan for environment, which is then approved by the Board of Directors as a corporate management plan. In addition, the Group Environmental Officer reports monthly to the President and CEO, the chairperson of the Board of Directors, and the Audit Committee established by the Board of Directors to report progress made on environmental management and on issues including climate change. The Audit Committee summarizes the important issues from those reported as matters to report at the Board of Directors meetings.
Konica Minolta has established a Group Environmental Promotion Committee headed by the General Manager of the Corporate Planning Department, which serves as the organization implement the medium-term environmental plan for the whole Group. The committee, in which persons responsible for environmental promotion in each key division participate, deliberates the Group’s medium-term environmental plan and annual plans. It also checks quarterly progress and conducts investigations related to the Group’s environmental issues.
