Materiality

The USS Group uses the concept of materiality to establish a number of key issues concerning the economic, social and environmental impact of business operations as well as the group's reputation among stakeholders and the demands of these stakeholders.
We use these issues as the basis for discussions with stakeholders and within the group in order to reexamine these key issues constantly. Based on items used by ESG evaluation institutions and other considerations, the following three materiality issues have been added following a discussion of this subject by the Board of Directors at the June 2020 shareholders meeting: Proper information management, corporate governance and environmental protection.

Key Issues	Actions	Associated Actions
Ensure the fairness and reliability of automobile auctions	Properly manage data about vehicles submitted to auctions Prevent improper vehicle auction transactions Design auto auction sites that are easy to use Build sound relationships with members and companies that do business with the USS Group	Activities with Customers Contributing to Local Communities and Society
Benefit from advanced technologies and increase our market share in Japan (Responses to the decline in demand in Japan)	Benefit from advanced technologies (self-driving vehicles, electric vehicles, fuel cell vehicles) Provide more digital services Increase the convenience of auto auction sites Measures that reflect the diversity of customers	Activities with Employees
Advancement and utilization of human resources	Respect the human rights and diversity of the USS Group's workforce Ensure that employees are properly evaluated and compensated Upgrade and expand education and other training programs A strong commitment to workplace health and safety	Activities with Employees
Proper information management	Proper management of the information of auction members	Activities with Customers
Corporate governance	Prevention of illegal and other improper activities Risk management (business continuity planning)	Corporate Governance Compliance
Environmental protection	Activities to combat climate change Reduce GHG emissions, such as by transporting vehicles more efficiently, and reducing energy consumption by operating auctions more efficiently Use resources effectively and manage waste materials	Activities to combat climate change Initiatives for reducing environmental load

Materiality

Ensure the fairness and reliability of automobile auctions

Benefit from advanced technologies and increase our market share in Japan (Responses to the decline in demand in Japan)

Advancement and utilization of human resources

Proper information management

Corporate governance

Environmental protection

Ensure the fairness and reliability
of automobile auctions

Benefit from advanced
technologies and increase our
market share in Japan
(Responses to the decline in demand in
Japan)

Advancement and utilization of
human resources