Materiality

2026.4.1

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The Japan Steel Works Group Basic Sustainability Policy

Non-financial data

In November 2022, the Company’s Board of Directors identified six key issues (Materiality) to prioritize in order to embody our Purpose. Before formulating the new medium-term management plan JGP2028, we established sustainability targets as a scenario for achieving sales of 500 billion yen in fiscal 2033, a decade from now. We believe resolving material issues is vital to achieving this.
Of JGP2028’s four basic policies, we view “sustainable improvement of value of existing businesses” and “creating and nurturing new businesses” as leading to the resolution of three material issues, “realization of a plastic-resource-recycling society,” “contribution to a low-carbon society,” and “contribution to a super-smart society.” We believe that attempting to solving social issues through business will create both social and economic value, allowing for sustainable growth.

To help stakeholders understand how the Group’s products are positioned within the three materialities for “Creating value and solving social issues through JSW Group’s businesses,” how we are contributing to their resolution, and how we plan to further enhance our contributions going forward, we have prepared special feature pages for each (see the linked pages below).
Details on the three materialities related to “Bolstering JSW Group’s management foundation for sustainable growth” are provided on the corresponding linked pages.

Materiality (Important Issues)

Materiality Reasons why considered to be of high importance State of major initiatives Related SDGs
Creating value and solving social issues through JSW Group's businesses Realization of a Plastic-Resources-Recycling Society
 		As a general manufacturer of plastic processing machinery, JSW Group believes it extremely important to supply society with all manner of plastics processing machinery that achieves the 3Rs and is renewable.
Leveraging our core competence to the maximum, we can demonstrate our strengths in the development and creation of plastic processing machinery that meets the demand of society. This is also a highpriority business expansion opportunity.
Renewable
  • Twin-screw extruders (TEX) for biodegradable plastics
Reduce
  • Physical foaming injection molding machines (SOFIT, MuCell)
  • Plastic injection molding machines for ultra-thin molding
  • TEX for biocomposites such as wood biomass
Recycle
  • TEX for chemical and mechanical recycling
  • Injection molding machines, blow molding machines, and film/sheet production equipment compatible with recycled materials
  • Twin-screw extrusion dechlorination system
  • Mono-material film manufacturing equipment
  • Industry, innovation, infrastructure
  • Responsible consumption, production
  • Life below water
Integrated Report 2025 p.30 Special Feature: Realization of a Plastic-Resource-Recycling Society
Contribution to a Low-Carbon Society
 		The realization of a low-carbon society is one of the most important challenges worldwide. Products created by JSW Group’s industrial machinery and products featuring its new materials have contributed to the reduction of CO2 emissions. Demand for such products is expected to increase in the future, which makes it a matter of high importance for the Group.
In addition, our responsibilities include the reduction of energy consumption of our industrial machinery products and the curbing of CO2 emissions from the operations of our manufacturing sites.
Zero CO2 emissions
  • Materials for major nuclear power generation components
  • Separator film manufacturing equipment for LiB in electric vehicles
  • Pelletizers for solar panel protection sheet materials
  • Materials for offshore wind turbine construction
Reduce CO2 emissions
  • All-electric plastic injection molding machines (reduced power consumption)
  • All-electric rubber injection molding machines (reduced power consumption)
  • Materials for high-efficiency GTCC power generation key components
    (GTCC: Gas Turbine Combined Cycle)
  • Large injection molding machines for large automotive parts (plastic/Mg)
  • Reduce CO2 emissions from business activities (Scope 1, 2)
  • Affordable and clean energy
  • Climate action
Integrated Report 2025 p.32 Special Feature: Contribution to a Low-Carbon Society
Contribution to a Super-Smart Society
 		In a super-smart society, such social issues as environmental problems and declining birthrates are expected to be resolved.
JSW Group’s industrial machinery and new materials are involved in the manufacturing of electronic devices that make up digital infrastructure. Robotics with AI and intelligent industrial machinery will also play a central role in a supersmart society.
That is why the Group’s product lines could serve as an essential part of a super-smart society. This is also considered to be a highly important business expansion opportunity for the Group.
Electronic Devices
  • Excimer laser annealing (ELA) systems for displays
  • Vacuum laminators and vacuum press for electronic circuit boards
  • 3-stage vacuum laminators for semiconductor package substrates
  • Laser heat treatment equipment for power semiconductors
  • Micro LA systems for sensors
  • Deposition systems for 5G-compatible LCP flexible substrates
  • Lithium niobate (LN), synthetic quartz materials
  • Gallium nitride (GaN) crystal materials
Industrial Machinery
  • J-WiSe equipped injection molding machines, film and sheet manufacturing equipment
  • AI robotics and industrial machinery (under development)
  • Sustainable cities and communities
Integrated Report 2025 p.34 Special Feature: Contribution to a Super-Smart Society
Bolstering JSW Group's Management Foundation for Sustainable Growth Human Capital Improvement and DEI&B
 		The diversification and expansion of our human capital, including the human resources capable of driving the Group’s growth, generating innovation, and creating value, is a matter of the highest priority and importance for strengthening JSW Group's management foundation. It is also important to create a work environment that enhances engagement.
Human resource strategy to achieve the business portfolio strategy
Securing human resources that match the business strategy
  • Year-round hiring of young employees and experienced workers with different backgrounds and attributes
Developing individual skills and strengthening organizational (management) capabilities
  • Management training focused on strengthening organizational ability to promote “taking on challenges”
Creating a work environment that increases engagement
Reform towards an organizational culture that encourages challenge
  • Include challenge targets in managers’ annual goals (revision of evaluation system)
Spreading the purpose and promoting DEI&B
  • Strengthen DEI&B initiatives such as creating work environments where workers can demonstrate individuality in work and development measures to accommodate individuality
  • Gender equality
  • Decent work and economic growth
Integrated Report 2025 p.26 Human Capital Strategy Integrated Report 2025 p.54 Human Capital Management
Investment in the Future with Innovation Management
 		In order for JSW Group to continue contributing to society, it is essential to maintain and strengthen its technological superiority by refining its core competence and expanding its business.
Innovation is an essential factor for sustainable growth. It is important to promote digital transformation which supports data-based, rapid decisionmaking, business model innovation, and the creation of new value.
Innovation management

Established Innovation Management Headquarters (April 2023)

Strengthen existing businesses through elemental technology development

  • Build companywide system for formulating business-specific IP strategies
  • Partner with domestic and international universities and research institutes, obtain doctoral degrees (develop human resources, strengthen technological ability)
Create innovative technologies through basic technology research
  • Formulate plans to establish new R&D centers for developing innovative technologies
  • Strengthen IP landscape system for efficient new product and market development
Promote DX
  • Continue promoting DX strategy following DX certification acquisition in August 2024
  • Responsible consumption, production
  • Partnerships for the goals
Integrated Report 2025 p.22 Innovation Management Strategy Integrated Report 2025 p.24 DX Strategy
Governance Reinforcement of JSW Group
 		For the sustained growth of JSW Group, it is important not only to further strengthen compliance and governance, but also to engage in dialogue with stakeholders.
And supplying society with industrial machinery and new materials of high quality and superior reliability is the very foundation of JSW Group’s business and important to the further strengthening of its quality assurance structure and system.
Corporate governance
  • Review officers’ remuneration system
  • Increase diversity of Board of Directors and Audit & Supervisory Board (outside officers and female officers)
  • Establish Risk Management Group in Corporate Planning Office
  • Reduce cross-shareholdings
Strengthen quality assurance system
  • Continue implementing measures for quality assurance system reform, organizational culture reform, process reform, and governance reform
  • Reduced inequalities
  • Peace, justice and strong institutions
Integrated Report 2025 p.60 Corporate Governance Integrated Report 2025 p.52 Quality Management

Creating Value and Solving Social Issues through JSW Group’s Businesses

Materiality Realization of a Plastic-Resources-Recycling Society
Reasons why considered to be of high importance
As a general manufacturer of plastic processing machinery, JSW Group believes it extremely important to supply society with all manner of plastics processing machinery that achieves the 3Rs and is renewable.
Leveraging our core competence to the maximum, we can demonstrate our strengths in the development and creation of plastic processing machinery that meets the demand of society. This is also a highpriority business expansion opportunity.
State of major initiatives
Renewable
  • Twin-screw extruders (TEX) for biodegradable plastics
Reduce
  • Physical foaming injection molding machines (SOFIT, MuCell)
  • Plastic injection molding machines for ultra-thin molding
  • TEX for biocomposites such as wood biomass
Recycle
  • TEX for chemical and mechanical recycling
  • Injection molding machines, blow molding machines, and film/sheet production equipment compatible with recycled materials
  • Twin-screw extrusion dechlorination system
  • Mono-material film manufacturing equipment
Related SDGs
  • Industry, innovation, infrastructure
  • Responsible consumption, production
  • Life below water
Integrated Report 2025 p.30 Special Feature: Realization of a Plastic-Resource-Recycling Society
Materiality Contribution to a Low-Carbon Society
Reasons why considered to be of high importance
The realization of a low-carbon society is one of the most important challenges worldwide. Products created by JSW Group’s industrial machinery and products featuring its new materials have contributed to the reduction of CO2 emissions. Demand for such products is expected to increase in the future, which makes it a matter of high importance for the Group.
In addition, our responsibilities include the reduction of energy consumption of our industrial machinery products and the curbing of CO2 emissions from the operations of our manufacturing sites.
State of major initiatives
Zero CO2 emissions
  • Materials for major nuclear power generation components
  • Separator film manufacturing equipment for LiB in electric vehicles
  • Pelletizers for solar panel protection sheet materials
  • Materials for offshore wind turbine construction
Reduce CO2 emissions
  • All-electric plastic injection molding machines (reduced power consumption)
  • All-electric rubber injection molding machines (reduced power consumption)
  • Materials for high-efficiency GTCC power generation key components
    (GTCC: Gas Turbine Combined Cycle)
  • Large injection molding machines for large automotive parts (plastic/Mg)
  • Reduce CO2 emissions from business activities (Scope 1, 2)
Under development
Reduce CO2 emissions
  • Large injection molding machines for large automotive parts (plastic/Mg)
Related SDGs
  • Affordable and clean energy
  • Climate action
Integrated Report 2025 p.32 Special Feature: Contribution to a Low-Carbon Society
Materiality Contribution to a Super-Smart Society
Reasons why considered to be of high importance
In a super-smart society, such social issues as environmental problems and declining birthrates are expected to be resolved.
JSW Group’s industrial machinery and new materials are involved in the manufacturing of electronic devices that make up digital infrastructure. Robotics with AI and intelligent industrial machinery will also play a central role in a supersmart society.
That is why the Group’s product lines could serve as an essential part of a super-smart society. This is also considered to be a highly important business expansion opportunity for the Group.
State of major initiatives
Electronic Devices
  • Excimer laser annealing (ELA) systems for displays
  • Vacuum laminators and vacuum press for electronic circuit boards
  • 3-stage vacuum laminators for semiconductor package substrates
  • Laser heat treatment equipment for power semiconductors
  • Micro LA systems for sensors
  • Deposition systems for 5G-compatible LCP flexible substrates
  • Lithium niobate (LN), synthetic quartz materials
  • Gallium nitride (GaN) crystal materials
Industrial Machinery
  • J-WiSe equipped injection molding machines, film and sheet manufacturing equipment
  • AI robotics and industrial machinery (under development)
Related SDGs
  • Sustainable cities and communities
Integrated Report 2025 p.34 Special Feature: Contribution to a Super-Smart Society

Bolstering JSW Group's Management Foundation for Sustainable Growth

Materiality Human Capital Improvement and DEI&B
Reasons why considered to be of high importance
The diversification and expansion of our human capital, including the human resources capable of driving the Group’s growth, generating innovation, and creating value, is a matter of the highest priority and importance for strengthening JSW Group's management foundation. It is also important to create a work environment that enhances engagement.
State of major initiatives
Human resource strategy to achieve the business portfolio strategy
Securing human resources that match the business strategy
  • Year-round hiring of young employees and experienced workers with different backgrounds and attributes
Developing individual skills and strengthening organizational (management) capabilities
  • Management training focused on strengthening organizational ability to promote “taking on challenges”
Creating a work environment that increases engagement
Reform towards an organizational culture that encourages challenge
  • Include challenge targets in managers’ annual goals (revision of evaluation system)
Spreading the purpose and promoting DEI&B
  • Strengthen DEI&B initiatives such as creating work environments where workers can demonstrate individuality in work and development measures to accommodate individuality
Related SDGs
  • Gender equality
  • Decent work and economic growth
Integrated Report 2025 p.26 Human Capital Strategy Integrated Report 2025 p.54 Human Capital Management
Materiality Investment in the future with innovation management
Investment in the Future with Innovation Management
In order for JSW Group to continue contributing to society, it is essential to maintain and strengthen its technological superiority by refining its core competence and expanding its business.
Innovation is an essential factor for sustainable growth. It is important to promote digital transformation which supports data-based, rapid decisionmaking, business model innovation, and the creation of new value.
State of major initiatives
Innovation management
Established Innovation Management Headquarters (April 2023)
Strengthen existing businesses through elemental technology development
  • Build companywide system for formulating business-specific IP strategies
  • Partner with domestic and international universities and research institutes, obtain doctoral degrees (develop human resources, strengthen technological ability)
Create innovative technologies through basic technology research
  • Formulate plans to establish new R&D centers for developing innovative technologies
  • Strengthen IP landscape system for efficient new product and market development
Promote DX
  • Continue promoting DX strategy following DX certification acquisition in August 2024
Related SDGs
  • Responsible consumption, production
  • Partnerships for the goals
Integrated Report 2025 p.22 Innovation Management Strategy Integrated Report 2025 p.24 DX Strategy
Materiality Governance Reinforcement of JSW Group
Reasons why considered to be of high importance
For the sustained growth of JSW Group, it is important not only to further strengthen compliance and governance, but also to engage in dialogue with stakeholders.
And supplying society with industrial machinery and new materials of high quality and superior reliability is the very foundation of JSW Group’s business and important to the further strengthening of its quality assurance structure and system.
State of major initiatives
Corporate governance
  • Review officers’ remuneration system
  • Increase diversity of Board of Directors and Audit & Supervisory Board (outside officers and female officers)
  • Establish Risk Management Group in Corporate Planning Office
  • Reduce cross-shareholdings
Strengthen quality assurance system
  • Continue implementing measures for quality assurance system reform, organizational culture reform, process reform, and governance reform
Related SDGs
  • Reduced inequalities
  • Peace, justice and strong institutions
Integrated Report 2025 p.60 Corporate Governance Integrated Report 2025 p.52 Quality Management

Identification Process

Identification Process Identification Process

Assumed External Environment and
Related Risks and Opportunities

Assumed External Environment and Related Risks and Opportunities Assumed External Environment and Related Risks and Opportunities

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