Materiality
SPARX Group ( "the Group" ) has established three materialities to achieve our corporate purpose of "to make the world wealthier, healthier, and happier(through investment)." In other words, we aim to realize a society where theglobal environment and all people involved in business and economicactivities stay healthy. These three materialities (important key issues) are thecompass we use to enrich the world in our role as "capital navigator" andguide our clients' assets to where they need to go. We will make betterinvestments that suit our corporate philosophy to realize a sustainablesociety, as outlined in the SDGs, and simultaneously continue to grow theGroup while maintaining a high level of profitability.
- To make the world wealthier, healthier, and happier
- To be the most trusted and respected investment company in the world
Sustainability strategy
Materiality (important key issue)Solving environmental and social issues through investment business and corporate activities
Business Plan
Materiality Selection Process
- Formulating Materiality Selection Process Policy
We compiled the Group' s past efforts and its policy while assessing our key stakeholders. We adopted a comprehensive and objective quantitativeapproach on issues and select assessment based on objective quantificationreferencing the GRI and SDGs.
- Preparing and Refining Materiality Candidates
By using the GRI requirements and SDGs as a materiality master list, which includes key elements of sustainability activities such as economic, social,environmental, and governance, we have identified more appropriatematerialities based on our industry and business activities.
- Prioritizing and Rating Materiality Candidates
We quantitatively rated the identified materialities on the two axes of "material to stakeholders" and "material to the Group' s business." For material to stakeholders,we have set shareholders, investors, employees, local communities, and theenvironment as stakeholders and their expectations and interests are evaluated.
Material to the Group's business are to be considered and evaluated with the Group'sinitiatives and their importance in future strategies. Then, the materiality priorities areset based on these which are ultimately important to both parties.
Final Materiality Selection
Through its priority evaluation process, the materiality candidates were narrowed down to 13 and the validity of the materiality candidates was verifiedat the Management Meeting. Ultimately, the Board of Directors carefullyselected the final 3 that we consider to be the most important issue.
3 Materialities (important key issues)
Practicing broad-based responsible investing
The Group will continue to contribute to the realization of a sustainable society by helping to solve the aforementioned environmental and social issues through itsinvestment activities.
Specifically, the Group uses an ESG perspective to invest in businesses that addresssuch issues and engage with existing portfolio companies. Furthermore, asshareholders, we support portfolio companies in improving their ESG responses whennecessary. Furthermore, as society increasingly demands our tradition of responsibleinvesting, we believe that advancing, growing, and spreading value-generatingresponsible investing is our natural responsibility as a long-established investmentcompany aiming to realize sound capital markets and a sustainable society.
High, sustainable profitability and the professionals to support it
The Group believes that we need to maintain specific conditions to solidify the foundations of our independence and realize our purpose. Namely, we must maintainhigh profitability to remain the first choice of our clients and other stakeholders anddevelop and retain the professionals needed to support these efforts.
Specifically, we can create unique investment ideas and create unique strategies bysharing investment philosophies through the Buffett Club and other study sessions. Inaddition to conducting client-oriented operations as we unify across front- andback-division and clarifying and disseminating desirable behaviors within the company.
All divisions and levels come together to package investment ideas in concrete form aswe aim to establish a management structure to realize higher, more sustainableprofitability than other companies with each distinctive strategy we pursue.
Governance that leverages our strengths as an independent Company
The Group is building an effective, efficient, sound, and highly transparent governance structure by leveraging our strengths as an independent company.
Specifically, we are building and maintaining sophisticated governance to gain supportfrom our clients and set an example for capital markets. While developing variousinvestment strategies, we conduct appropriate risk management, particularly inmanaging conflicts of interest among intercompany, investment strategies and funds.