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.
Identifying
material issues
We re-examine materiality and value creation on an annual basis in light of changes in business conditions, changes in expectations from external stakeholders, and societal trends toward ensuring the effectiveness of ESG promotion. Our materiality and the value creation are based on the concept of double materiality, considering not only the impact of society and the environment on our company, but also the impact of our company on each stakeholder.
Based on the risks and opportunities identified through the company's comprehensive risk assessment for short-, medium-, and long-term perspectives, we evaluate our own significance (likelihood of occurrence and impact). Additionally, we recognize the importance as outlined in international guidelines and reports, and assess external significance by considering the positive and negative impacts (scale, severity, likelihood of occurrence, etc.) on stakeholders such as investors, NGOs/NPOs, customers, employees, and suppliers. We evaluate from the perspectives of both internal and external significance, taking into account the opinions of experts and other third parties. After discussions within the ESG Promotion Committee, we identify and determine the priorities with the approval of the Board of Directors.
Each materiality consists of multiple value creation (values generated through our business activities and initiatives) and contributes to the creation of business and business opportunities.
[Notes]
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Created with reference to the ESRS Materiality Assessment Implementation Guidance framework
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Obtained third-party assurance for materiality identification process (Japan Quality Assurance Organization)
Internal Importance
Based on the significance (likelihood of occurrence/frequency and impact) of short-, medium-, and long-term risks and opportunities identified through the company's comprehensive risk assessment, we assess the importance of various issues within our company and our group. We then formulate our approach after considering dialogues with experts and investors, and engaging in discussions within the ESG Promotion Committee.
External Importance
Based on the significance of issues identified in international guidelines (such as GRI, SASB, and the SDGs), international reports (such as WBCSD Vision 2050), and ESG rating agencies, as well as the potential impact on stakeholders-including investors, NGOs/NPOs, customers, employees, and suppliers (scale, severity, likelihood of occurrence, etc.) -we have formulated our strategy by assessing both the impact of society and the environment on our company and group, and the impact of our company and group on society and the environment.
Materiality map
- Building society and industry through DX
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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]
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*1
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
- 7Building a foundation to support business transformation through AI
- 8Development of next-generation business initiatives through cutting-edge technologies and business collaborations
- 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)
- 12Contribute 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 development 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 |
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| Negative |
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| 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 |
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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.
Monetary quantification of social impact
We recognize the importance of evaluating and analyzing the impact of our business activities and social contribution initiatives on society, and we quantify these impacts in monetary terms.
The impact of materiality-related business activities on society
We conduct monetary quantification of the impact on society (social impact) of some of the materiality-related projects.
| Monetized items | Impact on external stakeholders | Amount of money | Related material issues |
|---|---|---|---|
| Smartphone classes |
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¥6,437 million*1 | “Connecting People and Information to Create New Excitement” (2) Provide an environment in which everyone can access information |
| Mobile phone recycling |
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¥1,273 million*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
Trial with SK Telecom and CSES
We signed a Memorandum of Understanding (MOU) with SK Telecom Co., Ltd., a leading mobile communications operator in South Korea, and CSES (Center for Social value Enhancement Studies)
, a non-profit foundation established by South Korea's SK Group for the purpose of social value research. Using DBL (Double Bottom Line)
, SK Group's social value measurement framework, we collaboratively quantified the monetary impact of our group's activities on society.
For approximately 250 indicators related to our group's business and sustainability efforts, we defined the inputs, outputs, and outcomes for each, and developed a monetary conversion logic to assess whether the social impact could be quantified in financial terms. As a result, in the FY2023 performance, we conducted trials to quantify both the positive and negative aspects for 14 items across the economic, environmental, and social categories in monetary terms.
For more details on the monetary quantification of social impact, please refer here.
