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 of "Identified Materiality"

Materiality	Materiality (priority issues)	Risks	Oppotunities	Key Performance Indicators (KPIs)
Materiality	Materiality (priority issues)	Risks	Oppotunities	KPIs	Actual results for FY2023	Target for FY2024	Mid-term target
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)	34.84 million people	35.00 million people	ー
Contributing to the multi-dimensional values of sports				Sales area of long-pile artificial turf in sports facilities	200,000 square meters	250,000 square meters	ー
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	111.3 billion yen	ー	2027 Target:18.0 billion yen
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	57%	Over 65%(semi-annually)	ー
Human capital management	Promoting and respecting diversity Health Promotion Initiatives	Decline in the labor population Change on business environment brought about by technological innovation.	Providing opportunities for active participation Diverse ways of working and diverse values.	Ratio of Female Managers Ratio of Mid-Career Hires in Management Positions	7.6% 12.1%	ー	FY2025:10% FY2025:20%
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:environmentally friendly products	17.4%	30%	2028:100%(in all categories of new products)
				Footwear:Environmentally friendly products	49.8%	61.5%	2027:100%(in all categories of new products)
				Equipment:Reduction of material loss in the manufacturing process, reduction of energy consumption during production, and reduction and simplification of secondary materials	ー	Starting from 2024, we will advance and finalize the development of a progress management system.	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(*d)	①Mizuno Fair Play Hotline awareness among Mizuno employees:90.5% ②Harassment Hotline awareness:90.5%(survey respondents:766 people)	①Mizuno Fair Play Hotline awareness among Mizuno employees:100% ②Harassment Hotline awareness:100%	ー
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*	①Global Footwear Product Division:100% ②Global Apparel Product Division:133% ③Global Equipment Product Divisio:101% * 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.	100%	ー

* "Sales of Life & Health Business," which was set as one of the key indicators in "Contribution to solving social issues," is no longer available due to the business restructuring implemented in FY2023.

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.
In fiscal year 2018, 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 FY 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