Review of Materiality
JLL identified materiality for the first time in FY3/2021. Approximately four years have passed since then, and as the social climate and JLL’s business environment have changed, we reviewed our materiality in March 2025 following the process below.
Materiality Identification Process
Step 1: Identifying Social and Company Issues
Social issues identified based on international sustainability guidelines (GRI, SASB, SDGs, etc.) and company-specific issues identified through internal interviews were organized into 43 items.
Step 2: Evaluating the Issues
The issues identified were assessed based on two axes: The company axis (key values, relevance to medium- and long-term management strategy) and the stakeholder axis (patients, medical professionals, business partners, local communities, shareholders/investors and employees).
Step 3: Prioritizing and Classifying the Issues
The issues highly evaluated on the two axes, "Level of Importance to JLL" and "Level of Importance to Stakeholders," were grouped according to relevance, and seven materiality candidates were selected.
Step 4: Identifying Materiality The new materiality (key issues) were identified by the Sustainability Committee and approved at a Board of Directors Meeting.
Identified Materialities
Philosophy
| Material Topics | Major Themes | KPIs | Medium-term Targets (to be achieved by FY3/2028) |
|---|---|---|---|
| Social Issue Resolution through Innovative Medical Devices | Customer Needs Response System Development |
Needs Collection System Enhancement | ・Operation of the needs proposal system and establishing a review structure |
| Research and Development and Technological Innovation | Patent Count |
・From April 2025 to March 2028, we will apply for 114 domestic and 54 overseas patents |
|
| Healthcare Worker Workload Reduction | Healthcare Worker High-Burden Task Identification |
・Identification of high-burden tasks for medical professionals ・Review and implementation of improvement measures for identified operations |
|
| Appropriate Marketing and Labeling Implementation | Appropriate Marketing and Labeling Training Enhancement |
・Implementation of training on the Medical Device Industry Promotion Code and evaluation of its effectiveness |
Environmental
| Material Topics | Major Themes | KPIs | Medium-term Targets (to be achieved by FY3/2028) |
|---|---|---|---|
| Environmental Impact Reduction |
GHG Emissions Reduction | CO₂ Emissions |
・Promotion of energy-saving activities and introduction of energy-efficient equipment ・Collaboration with business partners to reduce CO₂ emissions through Scope 3 refinement |
| Circular Economy Advancement | Circular Economy Advancement |
・Maintain industrial waste recycling rate ・Initiatives for reuse, such as converting waste to valuable resources ・Promotion of proper use of water resources |
Social
Governance
| Material Topics | Major Themes | KPIs | Medium-term Targets (to be achieved by FY3/2028) |
|---|---|---|---|
| Governance Enhancement | Stakeholder Engagement | Stakeholder Engagement Enhancement |
・Review of establishing a whistleblowing hotline for stakeholders |
| Discrimination and Harassment Prevention | Human Rights Risk Reduction Initiative Enhancement |
・Implementation and effectiveness verification of risk reduction measures in important human rights themes ・Implementation and effectiveness verification of anti-discrimination and harassment prevention training and comprehension tests |
|
| Risk Management Systems Development | Risk Management Advancement | ・Regular updates of enterprise-wide risk assessments ・Regular review of the company-wide Risk Management System |
|
| Compliance Systems Enhancement | Compliance Enhancement Effort Advancement |
・Holding explanatory meetings on fair competition regulations ・Implementation of initiatives to prevent bribery and verification of their effectiveness |
Materiality and KPIs (FYE3/2023 to FYE3/2025)
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Solve medical issues through innovative medical devices
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Our mission is "Contributing to a healthier society through cutting-edge medical technologies," and the continuous delivery of innovative medical devices to medical professionals forms the foundation of our value creation.
We will secure our technological competitive advantage by developing new proprietary technologies through focused investment in R&D and patenting the results. We would like to meet the needs of medical professionals by introducing overseas advanced medical devices in Japan,applying our proprietary technologies to the development of products in other fields besides cardiovascular diseases.
Improve technology for in-house products
KPIs Major Medium-Term Targets (to be achieved by FY3/2025) FY3/2023 Results FY3/2024 Results FY3/2025 Results R&D expense Bring about increases in R&D expenses R&D expenses (non-consolidated) of 2,316 million yen
(year-on-year increase of 7.3%)(Non-consolidated) R&D expenses 2,358 million yen, up 1.8% YoY (Non-consolidated) R&D expenses 2,851 million yen, up 20.9% YoY Number of patent applications Number of patent applications: 100 (total for FY3/2023-FY3/2025) 34 patents (non-consolidated) 41 patents
(Cumulative total of 75 cases from FY3/2023 to FY3/2024)33 patents
(Cumulative total of 108 cases from FY3/2023 to FY3/2025)Exploring new areas of business from Intellectual Property Planning and implementation of measures ー Continued implementation The introduction of a system to propose the needs of the medical field. Related pages
≫ Research and DevelopmentIntroduce medical devices with high clinical value
KPIs Major Medium-Term Targets (to be achieved by FY3/2025) FY3/2023 Results FY3/2024 Results FY3/2025 Results Introduction of user-friendly products
Application and Expansion of proprietary technologies to other fields・Identify needs of the medical field and develop products that meet those needs
・Explore highly novel productsー Continued implementation Creation and Utilization of a User-Friendly Checklist
Regular implementation of development project inventory meetingsRelated pages
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Reduce environmental impact
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The impact of environmental problems on sustainability, such as an increase in natural disasters due to global warming and marine pollution caused by plastic waste, has become a major social issue.
We are actively working to reduce our environmental impact over the medium to long term by establishing policies and systems for environmental preservation. We will contribute to the preservation of the global environment by reducing CO2 emissions and improving the industrial waste recycling rate through our business activities.
Use resources efficiently
KPIs Major Medium-Term Targets (to be achieved by FY3/2025) FY3/2023 Results FY3/2024 Results FY3/2025 Results Establishment of an environmental policy and promotion system ・Establish an environmental promotion system Formulation of Environmental Conservation Policy Establishment of Green Procurement Standards Formulation of chemical substance management procedures Related pages
≫ Environmental Management
≫ Harmony with NatureReduce greenhouse gases
KPIs Major Medium-Term Targets (to be achieved by FY3/2025) FY3/2023 Results FY3/2024 Results FY3/2025 Results CO2 emissions ・Reduce CO₂ emissions by 50% by FY3/2031
(compared to FY3/2021 levels)・Scope 1 & 2 Emissions (consolidated): 6,612 t
(year-on-year decrease of 1.6%)(Consolidated) Scope1 and 2 emissions 5,866 tons, down 11.3% YoY (Consolidated) Scope1 and 2 emissions 5,810 tons, down 0.9% YoY Related pages
Reduce waste / Process waste properly
KPIs Major Medium-Term Targets (to be achieved by FY3/2025) FY3/2023 Results FY3/2024 Results FY3/2025 Results Industrial waste recycling rate ・Achieve 90% industrial waste recycling rate 96% (non-consolidated) (Non-consolidated / R&D & Manufacturing Headquarters) 97% (Non-consolidated/R&D & Manufacturing Headquarters) 99% Related pages
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Create a workplace where employees can work with comfort
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Employees are an important management resource supporting our business activities, and an environment in which all employees can work while making the most of their diversity is important for the sustainable growth of the company.
We are committed to creating an environment where each employee can work with vitality and enthusiasm by improving work-life balance and promoting understanding of diversity. In addition, we will formulate policies to respect the human rights of all stakeholders involved in our business and promote educational activities.
Create a comfortable work environment
KPIs Major Medium-Term Targets (to be achieved by FY3/2025) FY3/2023 Results FY3/2024 Results FY3/2025 Results Assessment on the current status and implementation of measures to improve work-life balance Monitor and improve of actual working hours Grasped the actual working hours per person per year (1941.7 hrs.) (non-consolidated) Grasping the actual working hours per person per year（1828.6h） Analysis of hearing results for long-working-hour employees and consideration of measures Related pages
≫ Employee Health and SafetyRespect human diversity
KPIs Major Medium-Term Targets (to be achieved by FY3/2025) FY3/2023 Results FY3/2024 Results FY3/2025 Results Ratio of female managers ・Achieve a female manager ratio 15% by FY3/2031
・Increase ratio of female employees
・Study and implement measures to support women
2.6% (non-consolidated) (Consolidated）4.5% （Non-consolidated）3.6% (Consolidated）4.5% （Non-consolidated）3.1% Related pages
Respect human rights
KPIs Major Medium-Term Targets (to be achieved by FY3/2025) FY3/2023 Results FY3/2024 Results FY3/2025 Results Reinforcement on efforts to reduce human rights risks ・Conduct risk assessments on human rights Formulation of human rights policy Training on human rights risks
Implementation of human rights due diligenceRevision of the Human Rights Policy
Formulation of the Anti-Bribery PolicyRelated pages
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Develop human resources and provide opportunities for them to play an active role
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Employees are important management resources that create the company's competitive advantage, and their growth through new challenges will enhance the company's corporate value over the long term.
We will continue to actively invest in human resources by establishing policies and systems for human resource development. By implementing measures to improve employee satisfaction and providing training opportunities that promote growth, we will continue to create an environment in which each employee can work with a sense of fulfillment.
Support employees to achieve specialized skills and personal goals
KPIs Major Medium-Term Targets (to be achieved by FY3/2025) FY3/2023 Results FY3/2024 Results FY3/2025 Results Formulation of human resources policy and establishment of human resources development promotion system Formulate a human resources policy and promote human resources development Establishment of human resources development promotion system Establishment of human resources development promotion system Consideration of Human Resource Policy Improvement of employee satisfaction Improve employee satisfaction ・Conducted employee satisfaction surveys
・Analyzed survey results and formulated measures to improve employee satisfactionAnalysis of survey results
Formulation and implementation of action plansImplementation and follow-up of the Action Plan Related pages
≫ Human Resource InvestmentStrengthen education and training
KPIs Major Medium-Term Targets (to be achieved by FY3/2025) FY3/2023 Results FY3/2024 Results FY3/2025 Results Education and training expenses per employee Increase education and training expenses per employee by 5% year-on-year Education and training expenses per employee (non-consolidated): 97,142 yen (year-on-year increase of 39.8%) (Non-consolidated) 79,108 yen, down 18.6% YoY (Non-consolidated) 83,986yen, up 6.2% YoY Related pages
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Secure product quality and stable supply
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The medical devices we handle include many products that may affect the lives of patients.Therefore, ensuring the reliability of their quality is an important management issue. We will promote efforts to continuously improve the quality of our products by complying with not only Japanese domestic standards but also global regulatory requirements.
The medical devices we handle include one-of-a-kind products, and it is our social mission to continue to provide a stable supply of products to the medical field. We will strengthen our product supply chain system by promoting supplier risk management and the duplication of production lines.
Strengthen the quality control system
KPI Major Medium-Term Targets (to be achieved by FY3/2025) FY3/2023 Results FY3/2024 Results FY3/2025 Results Compliance with global regulatory requirements (Acquire MDSAP certificate) ・Obtain MDSAP* certificate
・Improve our surveillance evaluationCompletion of MDSAP application Acquisition of MDSAP certification Expansion of the scope of 13485 certification
Expansion of the scope of MDSAP recognitionMaintain and improve the quality of our in-house products Analyze complaint reports and conduct surveys for doctors ー Questionnaire survey for physicians 1 item Implementation of quality improvement and preventive measures *Medical Device Single Audit Program
MDSAP is a program that verifies the conformity and adequacy of a manufacturer's QMS to the regulatory requirements of regulatory authorities in five countries (the United States, Australia, Brazil, Canada, and Japan) in a single survey by an accredited survey organization.Related pages
≫ Product Quality Management and Stable SupplySecure stable supply of products
KPI Major Medium-Term Targets (to be achieved by FY3/2025) FY3/2023 Results FY3/2024 Results FY3/2025 Results Promotion of production line duplication ・Promote the use of multiple production lines
・Promote multifunctional workforceCommenced production line duplication work for multiple items Continuation of double-tracking of core in-house products Continuation of double-tracking of core in-house products Diversification and internalization of outsourcing of critical components and subcontracted processing Increase coverage of multiple production lines and in-house production by 5% (compared to FY3/2024 Results) ー Selection of important components
Considering the priority of double-track membersImplementation of supplier BCP surveys and creation of a BCP map Related pages
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Strengthen corporate governance
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In order to achieve sustainable growth in the midst of a drastically changing external environment, it is necessary to establish a corporate governance system that increases management transparency and ensures prompt decision-making and its execution and supervision. We aim to enhance our corporate value by steadily promoting compliance with the Corporate Governance Code.
In recent years, the diversification of risks surrounding companies has made risk management more important than ever. We will strive to reduce risks by reassessing and deciding on measures to address company-wide risks and by strengthening information security measures.
Strengthen auditing and supervisory functions
Execute management decision and operation with objectivity and transparencyKPI Major Medium-Term Targets (to be achieved by FY3/2025) FY3/2023 Results FY3/2024 Results FY3/2025 Results Implementation of measures to comply with the Corporate Governance Code Comply with the Corporate Governance Code • Appointment of one additional outside director to the Nomination and Remuneration Advisory Committee Revision of Composition and Calculation Methods of Executive Compensation Disclosure of "Measures for Realizing Management Aware of Capital Cost and Stock Price"
Publication of Integrated ReportImplementation of training for board members
Enhancement of information disclosureRelated pages
≫ Corporate Governance
≫ DirectorsStrengthen risk management initiatives
KPI Major Medium-Term Targets (to be achieved by FY3/2025) FY3/2023 Results FY3/2024 Results FY3/2025 Results Promotion of risk management Reassess company-wide risks, determine countermeasures, verify and implement reviews continuously ・BCP development at all sites
・Creation of company-wide risk listBCP briefing for all employees
Review of Company-Wide Risk AssessmentImplementation of exercises based on the BCP
Updating of the risk listReinforcement on information security measures Create and implement a five-year roadmap based on the results of company-wide risk analysis Conducted training for all employees (2 times) Training for employees (2 times)
Implementation of vulnerability diagnosis and preparation of a two-year roadmap based on the results of the diagnosisExecution of the first year of the roadmap Related pages
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Promote compliance
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As a company that handles medical devices that can affect the lives of patients, we recognize that each of our employees is required to not only comply with laws and regulations, but also to have a higher sense of ethics in their actions.
We believe that practicing compliance means meeting the expectations of all stakeholders involved in our business, and we aim to be a company that continues to be trusted by society through compliance awareness activities.
Ensure fairness and transparency in corporate activities
KPI Major Medium-Term Targets (to be achieved by FY3/2025) FY3/2023 Results FY3/2024 Results FY3/2025 Results Strengthening of the compliance system Implement various training programs and raise awareness of compliance Conducted various training programs designed for employees as well as job-specific training programs Conducting various training programs for all employees and job-specific
Strengthening the scholarship donation screening systemImplementation of various training programs for employees and by job type
Commencement of donation review operationsPromotion of efforts to improve understanding of the whistleblower system ・Establish a whistleblower system that complies with the Whistleblower Protection Act
・Ensure that the whistleblower system is known throughout the Company to promote its appropriate use・Established a whistleblower system that complies with the Whistleblower Protection Act
・Conducted whistleblower system-related training programs and awareness surveys for employeesConducting a survey on the level of awareness and understanding of the whistle-blowing system
Briefings on the whistle-blowing system for subsidiaries (Malaysia, South Korea)Implementation of training for personnel involved in handling public interest whistleblowing
Addition of the Indonesian language to the whistle-blowing system for subsidiaries (Malaysia)Related pages
≫ Compliance
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