Materiality | GALILEI CO. LTD.

Materiality of the GALILEI Group
Material Issues Identification Process

Materiality of the GALILEI Group

The GALILEI Group identified material issues in September 2023 that the Group must address in order to achieve our purpose, “Shape a future of food and life,” and our four visions.
By tackiling these material issues, the GALILEI Group strives to achieve two missions: creating a sustainable society and enhancing our medium to long-term company value.

Four Visions	Material issues and the value we offer
Shape a future of delicious and delightful food	【Value we offer】 Share the joy and excitement of tasty food with people
Shape a future of delicious and delightful food	■Material issues 1. Improve consumers’ lives
Shape a future of quality of life	【Value we offer】 Support a food lifeline for better living
Shape a future of quality of life	■Material issues 2. Reduce food loss 3.Achieve a sustainable supply chain
Shape a future of lives	【Value we offer】 Ensure the vitality and health of people and all life on our planet
Shape a future of lives	■Material issues 4. Support a healthy lifestyle 5. Achieve a carbon-free society
Shape a future of happiness	【Value we offer】 Contribute to the happiness of people around the world
Shape a future of happiness	■Material issues 6. Live in harmony with local communities 7. Develop human resources 8. Encourage people from diverse backgrounds to play active roles in the workplace

For detailed information on specific initiatives, indicators, and targets related to materiality, please refer to this PDF.

Materiality of the GALILEI Group

The value we offer	Material issues	Related opportunities and risks
Share the joy and excitement of tasty food with people	1. Improve consumers’ lives	Opportunities	Short to medium term	Co-creation of value through external collaboration Development of specialized fields through technological innovation Competitiveness improved in anticipation of changes Reform of the business foundation driven by digital disruption
			Medium to long term
			Short to medium term
			Medium to long term
		Risks	Short to medium term	Loss of opportunities and weakened competitiveness due to lack of investment Emergence of many competitors due to the inability to build robust market entry barriers
		Risks	Short to medium term
Support a food lifeline for better living	2. Reduce food loss	Opportunities	Medium to long term	More stringent laws and regulations and rules applicable to food loss Development of freezing and defrosting technologies Increased need for the development of cold chains in developing countries
			Short to medium term
			Short to medium term
		Risks	Medium to long term	Loss of business opportunities due to delay in complying with food loss regulations
	3. Achieve a sustainable supply chain	Opportunities	Short to medium term	Creation of business opportunities through resources recycling and the development of environmentally friendly products Enhanced brand trust through improved customer satisfaction New value created by optimizing supply chains
			Short to medium term
			Short to medium term
		Risks	Short to medium term	Failure to procure parts or collect products due to quality issues in the supply chain Failure to procure parts or damage to corporate value due to delay in responding to social or environmental issues in the supply chain Supply chain disruptions caused by failure to respond to natural disasters, pandemics, or export restrictions in specific regions
			Short to medium term
			Short to medium term
Keep all forms of life on the planet vibrant and healthy	4. Support a healthy lifestyle	Opportunities	Short to medium term	Advances in regenerative medicine Eating habits reassessed as a result of serious or diverse health issues Growth of the precooked frozen food market Increased need for the development of cold chains for the medical and elderly care industries in developing countries
			Medium to long term
			Short to medium term
			Short to medium term
		Risks	Medium to long term	Intense competition in the medical and healthcare industries
	5. Achieve a carbon-free society	Opportunities	Short to medium term	More stringent laws and regulations and rules related to environmental and decarbonization issues Increased need for products with high environmental performance More efforts to achieve net zero carbon emissions, Collaboration with customers Greater brand trust
			Short to medium term
			Medium to long term
			Short to medium term
		Risks	Short to medium term	Corporate value damaged due to delay in combating climate change Loss of business opportunities due to delay in complying with regulations on greenhouse gas emissions
		Risks	Short to medium term
Contribute to the happiness of people around the world	6. Live in harmony with local communities	Opportunities	Short to medium term	Increased employee motivation, improved human resources development Connectivity with ESG-oriented younger people, greater opportunities to attract talent Improved corporate reputation through communication of the joy of eating and playing sports Business opportunities created through external collaboration
			Medium to long term
			Medium to long term
			Medium to long term
		Risks	Short to medium term	Corporate brand seriously tarnished due to failure to be recognized as a good corporate citizen in local communities
	7. Develop human resources	Opportunities	Short to medium term	Ability to maintain excellent technological capabilities due to lower employee turnover and passing on of technologies to future generations Improved corporate reputation due to training workers supporting cold chains
		Opportunities	Short to medium term
		Risks	Short to medium term	Weakened competitiveness due to lack of human resources development Corporate reputation decreased due to a higher employee turnover Decline in competitiveness in overseas markets due to failure to attract global talent
			Short to medium term
			Medium to long term
	8. Encourage people from diverse backgrounds to play an active part in the workplace	Opportunities	Short to medium term	Company grew as a result of improved job satisfaction Creation of an environment that facilitates innovation Successful recruitment of diverse talent, more promotion opportunities Employee motivation and productivity increased through good mental and physical health
			Medium to long term
			Short to medium term
			Short to medium term
		Risks	Short to medium term	Corporate reputation decreased due to higher costs caused by intense recruitment competition and inability to attract diverse personnel

Material Issues Identification Process

Step１	Identification of potential material issues
Step１	In line with our corporate philosophy and purpose, as well as international standards such as the SDGs (Sustainable Development Goals) and the GRI (Global Reporting Initiative) Standards, we chose social issues that we aim to address through our business activities. To further this goal, we established a project team comprised of leaders from each value chain and other members, to discuss and identify approximately 80 potential material issues.
Step２	Assessment of importance levels
Step２	We assessed the importance levels of the potential material issues from three persepctives: significance in terms of business management issues, impact on social issues, and stakeholder expectations. Through this evaluation, we reduced the potential material issues to 24, ranked by level of importance.
Step３	Validation of material issues
Step３	We validated the potential material issues through discussions with our outside directors and experts, integrating their external perspectives. This process allowed us to re-examine the potential material issues that may have more significant impacts on both our business activities and society at large. Following this review, we refined our focus to eight issues.
Step４	Identification of material issues and establishment of indicators and goals
Step４	We identified eight key material issues following a resolution of the Board of Directors. We also identified specific initiatives, established indicators, and set goals for the medium to long term.