Business Foundation
SDGs in Business Management
Sustainability promotion framework
In its current Mid-Term Management Plan, the Sompo Group has positioned “SDGs in Business Management” as one of our Group Business Foundations to create economic and social value by using its core business to resolve social challenges. To do this, we have designated seven Materialities—or priority issues—for realizing SOMPO’s Purpose. We have also set KPIs for each Materiality to facilitate the creation of highly effective PDCA cycles, visualizing our progress and identifying issues.
By driving Value Creation Cycle through this SDGs in Business Management framework, we seek to promote Group-wide initiatives for realizing SOMPO’s Purpose.
Promotion structure
SOMPO has established a system of sustainability governance whereby Executive Officers execute measures in line with Group-wide strategies and policies aimed at realizing SOMPO’s Purpose, and the Board of Directors monitors their performance.
The Group Chief Sustainability Officer (Group CSuO) is in overall charge of sustainability at the Group, and is responsible for formulating and executing strategies related to sustainable management, and for overseeing the sustainability functions of the entire Group.,
As a promotion structure, we have positioned the “Group Sustainable Management Committee” (hereinafter “Committee”) as a body to promote sustainability for the entire Group. The Committee, whose members include the CSuO and CSO for the four main businesses in Japan and overseas, discusses and makes decisions on climate change and other ESG issues. Under the Committee are the “Climate Change Working Group” and the “Sustainable Management Promotion Liaison Committee,” whereby they have established a system to review individual issues, share information, and implement measures based on discussions by the Committee.
Discussions at the Committee are regularly reported to the Global ExCo (Global Executive Committee), which is the Group’s top executive committee body, the MAC (Managerial Administrative Committee), and the Board of Directors.
Identifying Materiality
The Sompo Group has identified social challenges based both on international norms and on its mission to realize SOMPO’s Purpose. After assessing their importance according to their relevance to SDGs, we have identified priority social challenges, and organized, integrated, and systematized them as Materiality.
PROCESS 1 |
Identify social challenges surrounding our business | Comprehensively identify social challenges surrounding SOMPO from the perspective of both their importance to management and their impact on stakeholders based on our value creation story and international norms, such as the United Nations Global Compact and ISO 26000 |
|---|---|---|
PROCESS 2 |
Identify social challenges to be prioritized | Evaluate the importance of social challenges surrounding SOMPO based on their relationships with the SDGs (which represent a universal language) to identify social challenges the Group should prioritize through its business |
PROCESS 3 |
Organize into seven Materialities (Key management themes) |
Organize and integrate priority social challenges from the perspective of the Group’s management strategy approach and organize them into seven Materialities as key management themes |
Integrating Materiality KPIs and the Value Creation Cycle
We have established Materiality KPIs to measure the progress of our efforts to achieve Materiality goals. In setting these KPIs, we structure the implementation of our Value Creation Cycle through SDGs Management by integrating the important levers for the Value Creation Cycle and its KPIs.
SDGs matrix: Social challenges and SDGs addressed by SOMPO
This matrix follows ISO 26000 frameworks to clarify the relationship between the social challenges facing SOMPO, which were identified in Process 1 of the Materiality Identification Process, and the core subjects of ESG and ISO 26000. It also indicates which of the 169 SDG Targets the Sompo Group will contribute to through the provision of its products and services. In Process 2, we narrowed down Materiality candidates based on their level of importance, and identified which social challenges to prioritize through our business. Finally, in Process 3, we organized, integrated, and systematized these social challenges according to our strategies. We have termed these challenges “Materialities,” or priority issues for realizing SOMPO’s Purpose.
Please click here to see the SDGs matrix table
View and download PDF: SDGs matrix: Social challenges and SDGs addressed by SOMPO(PDF/640KB)
Materiality KPIs
In addition to organizing key management issues in the way of realizing the Group’s Purpose into seven Materialities, KPIs have been set for each materiality to define what actions need to be done and to ensure that they were penetrated in the field and that their progress is monitored.
Besides using materiality KPIs as indicators to take on day-to-day challenges in each business and field, the Group also reviews, updates, and expands them according to evolving and changing of the Group’s initiatives and strategies. Changes were made in 2023, such as the creation of new KPIs related to its “egaku” business launched in April.
By defining not only financial but also non-financial indicators and promoting a common framework, the Group will work together as one to realize SOMPO’s Purpose.
Please click here to see the materiality KPI table
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