Materiality and KPIs | Japan Lifeline

Review of Materiality
Materiality and KPIs

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.

Materiality and KPI

Philosophy

Material Topics	Major Themes	KPIs	Medium-Term Targets (to be achieved by FY3/2028)	FY3/2026 Results
Social Issue Resolution through Innovative Medical Devices	Customer Needs Response System Development	Needs Collection System Enhancement	・Operation of the needs proposal system and creation of outcomes based on needs	・Commencement of operation of the needs proposal system
	Research and Development and Technological Innovation	Patent Count	・From April 2025 to March 2028, we will apply for 114 domestic and 54 overseas patents	・39 cases in Japan and 25 cases overseas
	Healthcare Worker Workload Reduction	Healthcare Worker High-Burden Task Identification	・Identification of high-burden tasks for medical professionals and implementation of improvement measures	・Conducting surveys on high-burden tasks for medical professionals and identification of issues
	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	・Establishment of a review structure for advertising materials and implementation of training on advertising regulations

Environmental

Material Topics	Major Themes	KPIs	Medium-term Targets (to be achieved by FY3/2028)	FY3/2026 Results
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	・6,237 t-CO₂ (-10.3% compared to the base year (FY2021/3)) ・Establishment of a foundation for refining Scope 3 calculations
Environmental Impact Reduction	Circular Economy Advancement	Circular Economy Advancement Metrics	・Maintain industrial waste recycling rate ・Initiatives for reuse, such as converting waste to valuable resources ・Promotion of proper use of water resources	・Maintenance of a 99% industrial waste recycling rate at domestic factories ・Implementation of a survey to identify reuse items ・Survey on water resources

Social

Material Topics	Major Themes	KPIs	Medium-term Targets (to be achieved by FY3/2028)	FY3/2026 Results
Diverse Talent Workplace Creation	Diversity Advancement	Personnel Systems Development and Optimization	・Operation, verification, and formulation of improvement plans for the new human resource system	・Preparation for the introduction of a multiple-track personnel promotion system
Diverse Talent Workplace Creation	Diversity Advancement	Job Satisfaction and Work Ease Initiative Advancement	・Identification of issues and implementation of measures	・Preparation for introducing paid childcare/nursing care leave and a babysitter subsidy system based on issues identified in the current situation analysis
Corporate Competitiveness Enhancement through Talent Development	Human Resource Development for Sustainable Growth	Management Personnel and Young Leader Development	・Review, operation, and verification of training programs	・Commencement of a development program for management candidates
	Human Resource Development for Sustainable Growth	Global Talent Development	・Review, operation, and verification of overseas assignment training programs ・Review and introduction of global talent development programs	・Introduction of pre-assignment training for expatriates ・Enhancement of training for developing global talent
Product Quality Assurance and Supply Systems Enhancement	High-Quality and Safe Product and Service Supply	Global Expansion Certification Acquisition and Maintenance	・Maintenance of QMS systems compliant with domestic and international regulations	・Completion of the MDSAP recertification audit with zero non-conformities
		QMS Maintenance Educational Program Development and Implementation	・Development and introduction of quality management education programs for employees	・Construction of an educational program to maintain QMS and formulation of a curriculum based on competency assessments
		Core Product Group Yield Rate Monitoring, Maintenance, and Improvement	・Monitoring of yield rates ・Implementation and effectiveness verification of yield improvement measures	・Establishment of a management structure by newly creating a quality improvement committee across three domestic factories
	Supply Chain Management Enhancement	CSR Procurement Guidelines Development	・Conducting CSR surveys of major suppliers and implementation of improvements	・Formulation of CSR procurement guidelines and promotion of sustainable procurement through distribution to domestic suppliers
	Supply Chain Management Enhancement	Supply Chain Enhancement Initiative Advancement	・Review and implementation of measures to improve inventory management and logistics processes	・Identification of issues for inventory optimization
Digitalization Advancement	New Technology Adaptation	AI Usage Rate Improvement	・AI Usage Rate: 80%	・AI Usage Rate: 80%
		External AI Training Session and Lecture Count	・Semi-Annual Frequency	・Twice a year
		Document Digitization Count	・Advancing digitization of internal documents	・Promotion of paperless operations through the introduction of electronic FAX in order receipt operations and the digitization of analog documents

Governance

Material Topics	Major Themes	KPIs	Medium-term Targets (to be achieved by FY3/2028)	FY3/2026 Results
Governance Enhancement	Stakeholder Engagement	Stakeholder Engagement Enhancement	・Determining target stakeholders for enhancement each period and implementing measures	・Preparation for establishing a compliance whistleblowing hotline for business partners
	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	・Expansion of the scope of human rights due diligence to overseas subsidiaries, and identification and assessment of human rights risks ・Implementation of harassment prevention training including overseas subsidiaries
	Risk Management Systems Development	Risk Management Advancement	・Regular updates of enterprise-wide risk assessments ・Regular review of the company-wide Risk Management System	・Implementation of enterprise risk assessments
	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	・Implementation of briefing sessions and individual study groups on Fair Competition Codes