Identified Materiality

Key Performance Indicators (KPIs)

To properly manage the progress of our materiality and promote disclosure in our annual reports, we have established key performance indicators (KPIs) for our major initiatives.

List described in "Identified materiality"

Materiality	Materiality (priority issues)	Risks	Oppotunities	Key Performance Indicators (KPIs) and Goals & Results
Contributing to the multi-dimensional values of sports	Physical and mental health through sports Developing communities based on sports Equality and diversity through sports	Decrease in the population of sports competitors Stagnation of the domestic sports market	Providing the value of sports’ power by leveraging understanding, know-how, technology, and network related to sports	Total number of users of products and services that contribute to maintaining and enhancing health (cumulative number) FY 2022 actuals: 31.2 million people (no target set) FY 2023 target: Over 33.8 million people (exceeding the number of users before the pandemic) Sales area of long-pile artificial turf in sports facilities FY 2022 actuals: 170,000 square meters (no target set) FY 2023 target: 200,000 square meters (118% compared to 2022)
Contributing to the resolution of social issue	Extension of healthy life expectancy through the maintenance of motor function Improving physical fitness and athletic abilities of children Contributing to the SDGs by applying Mizuno’s technologies	Diversification of hobbies and preferences due to the advancement of the information society Reduction of safe and accessible outdoor play areas	Development, deployment, and promotion of unique exercise programs Fostering diverse community communication through the use of sports facilities Expanding opportunities for physical activity in daily life due to changes in work styles	Work Business Revenue FY 2022 Results: 9.7 billion yen FY 2025 Target: 17.0 billion yen Support for societal health enhancement through walking ability and walking type analysis system "Motion DNA," number of measurement sessions conducted FY 2022 Results: 30 times FY 2023 Target: 50 times
Responsible procurement with due respect for human rights	Supply Chain Management	Human rights and labor safety risks due to procurement from new overseas suppliers	Realization of high-quality and stable procurement and expansion of competitiveness by implementing pre-evaluation of new suppliers Expansion of sales opportunities for products and services that respond to ethical consumption	Correction rate of critical and major non-conformance items implemented in FY 2022 FY 2022 Goal/Results: 65%/31% Correction rate of critical and major non-conformance items to be implemented in FY 2023 FY 2023 Goal: 65%
Responsibility for global environmental issues throughout the product lifecycle	Climate Change Reduction of hazardous chemical substances Reduction of waste	Physical damage to business locations, stores, and administrative facilities due to climate change Suspension of operations by suppliers and delays in raw material procurement due to climate change Increased compliance costs due to tightened environmental regulations Increased costs associated with the adoption of renewable energy Reduction in outdoor sports due to rising temperatures and increased risk of heatstroke Increased disposal costs due to increased waste emissions Risks of harmful chemical leaks	Cost reduction through energy conservation, introduction of renewable energy, waste reduction, and promotion of recycling Expansion of sales through the development and sale of environmentally friendly products and products that respond to climate change	Apparel 100% of products to be environmentally friendly by 2028 (in all categories of new products) Footwear 100% of products to be environmentally friendly products by 2027 (in all categories of new products) Equipment Reduce material loss in the manufacturing process, reduce energy consumption during manufacturing, and reduce / streamline use of subsidiary materials to achieve 30% reduction by 2030 (compared to 2018)
Responsible business practices	Compliance / Anti-corruption Protection of intellectual property Protection of personal information	Compliance violations such as corruption and bribery Infringement of third-party intellectual property rights Expansion of cybercrime and cybersecurity incidents	Creation of sustainable corporate value through building trust with stakeholders	Improvement in Employee Awareness of the Internal Reporting Hotline Fiscal Year 2022 Goals / Results: ①Mizuno Fair Play Hotline awareness among Mizuno employees: 100% / Not surveyed＊ ②Harassment Hotline awareness: 100% / 90% (survey respondents: 915 people) Fiscal Year 2023 Goals: ① 100%, ② 100% ＊ Mizuno Fair Play Hotline awareness was not surveyed in fiscal year 2022.
Responsibility for Safe and High-Quality Products	Ensuring of the safety and quality of products Communication related to products Engagement with Customers	Diversification of products handled and complexity of the supply chain due to entry into new markets Compliance with global strengthening of chemical substance regulations	Rapid product introduction and expansion of sales opportunities through the construction of a more flexible quality assurance system Production and sales of safe products in accordance with the laws of various countries Development of human resources through the creation of opportunities to acquire quality knowledge tailored to diverse working arrangements	Quality Objectives (Defect Rate Related to Claim Returns＊) FY 2022 Results: Achievement Rate ①Global Footwear Product Division: 140% ②Global Apparel Product Division: 153% ③Global Equipment Product Division: 106% FY 2023 Target: Achievement Rate 100% ＊ Calculated by dividing the number of defective returns for which manufacturing is responsible by the number of items shipped, and compared with the target values set by each division.

46 issues applicable to Mizuno

When identifying priority issues (materiality) in 2015, we selected the following 46 issues. These issues were considered as applicable to us and were organized under six pillars at that time in reference to ISO 26000, the SDGs, the GRI G4 Guidelines, and other international standards deemed important as well as various reports from NGOs and research agencies.
This time, we reviewed the materiality based on these 46 issues. When reviewing the materiality, we sorted out social issues deeply related to our company and our past achievements. After much discussion on our strengths, business domains and social value provided by us with management and employees of related divisions according to the proposals of outside experts, we selected new materiality from the 46 issues.
Please refer to the following for the process of updating the materiality disclosed in the fiscal year 2021.

Promotion of sports	CSR procurement	Environment
Improvement of the physical strength and athletic ability of children Health promotion of the elderly through sports Promotion of local sports through cooperation with schools and local communities Support for promotion of sports for the disabled Support for promotion of amateur sports Training of sports instructors Support for promotion of sports in developing countries	Environmental impacts of Tier 1 suppliers Treatment of workers at Tier 1 suppliers Other risks at Tier 1 suppliers Prohibition and elimination of child labor Environmental impacts of Tier 2 and Tier 3 suppliers Treatment of workers at Tier 2 and Tier 3 suppliers Understanding of other risks at Tier 2 and Tier 3 suppliers Supplier capacity building Disclosure of information on CSR efforts and ensuring of transparency of the information in the supply chain Freedom of association and collective bargaining rights in the supply chain Establishment of a complaint-handling mechanism in the supply chain Disclosure of supplier information related to products	Reduction of greenhouse gas emissions Reducation and proper control / disposal od waste Reduction and proper control of chemicals hazardous to humans and the environment Reduction of energy consumption Increase in efficiensy of water consumption and water consumption management Research and development aimed at reducing the environmental impacts of products Disclosure of information on the environmental impacts of products Environmental considerations when holding sporting events Collection and recycling of Misuno's used products
Fairness in business practices	Product liability	Employment and human resource utilization
Enhancement of governance Practice of compliance Enhancement of internal control Anti-corruption Prevention of anti-competitive behavior Protection of intellectual property Protection of personal information	Product quality control Provision of information on safe product use to consumers Ensuring of the appropriateness of advertising materials Ensuring of the appropriateness of product labeling Responses to inquiries from consumers Sincere responses regarding defective products	Fair evaluation system Safety and headlth in workplaces Realization of diverse working styles Diversity Wages and welfare of employees