Seeing the various issues related to the sustainability of society not only as risks but also as opportunities for the sustained growth of both the Group and society as a whole, the Tohoku Electric Power Group is taking on the challenges of realizing Working alongside next, the Tohoku Electric Power Group’s Medium- to Long-Term Vision and of the Tohoku Electric Power Group Carbon Neutral Challenge 2050.
Recognizing the importance of clearly identifying specific priorities (materiality topics) in order to promote sustainability through realizing the vision of Working alongside next, the Group has identified eight sustainability priorities through the following process, based on deliberations in the Sustainability Promotion Committee and with reference to the recommendations of outside experts. These priorities will be monitored from now on through deliberations in the Sustainability Promotion Committee and the Board of Directors and used to steer management’s course toward realization of the vision of Working alongside next.

Sustainability priority (materiality topic) identification process

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• To choose topics related to the businesses of the Tohoku Electric Power Group and its stakeholders, the current states of both external and internal environmental conditions were analyzed. Based on the findings of such analysis, a list was prepared of 63 topics to be considered.

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• In cooperation with related internal sections, the topics chosen in Step 1 were assessed along the two axes of their importance to the Tohoku Electric Power Group and their importance to stakeholders. These assessments also were discussed in the Sustainability Promotion Committee, and the views of management were reflected in the assessment process as well. On the subject of importance to stakeholders, comments from five classes of stakeholders considered important to the Group?customers, local communities, shareholders and investors, trading partners, and employees?were collected through means such as surveys and dialogues for use in the assessment process.
  Based on the findings of this process, particularly important topics were narrowed down and grouped. Then, a list of proposed priorities consisting of 29 individual topics and eight materiality topics was prepared.

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• The proposed priorities prepared in Step 2 were validated from the perspective of stakeholders through means including exchange of opinions with outside experts.
  Major opinions of outside experts
  Sustainability priorities should be expressed more from the perspective of stakeholders. In promoting sustainability initiatives, it is important to utilize digital transformation (DX) and promote diversity, centered on promoting women in the workplace, and to participate actively in domestic and international initiatives and other activities. There also is a need for consideration of human rights throughout the entire supply chain, which is a subject of increasing interest in society.

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• Based on the results of Step 3, final proposed materiality topics were discussed in the Sustainability Promotion Committee and then decided on by the Board of Directors. From now on, together with setting targets and key performance indicators (KPIs) regarding the identified materiality topics and monitoring these, the materiality topics will be reviewed as necessary in light of factors such as changes to the business environment and social issues.