Priority Subjects (Materiality)
USS identifies the economic, social and environmental impact its businesses and priority subjects it needs to address. The Board of Directors approved reforms in the fiscal year ended March 31, 2023 from the perspective of long-term USS financial risks and opportunities. We have set key performance indicators (KPIs) for each priority subject in the fiscal year ended March 31, 2024.
Process to identify KPIs
Priority subjects (Materiality)
| Priority subjects (Materiality) |
Reason | Long-term financial impact R : Risk O : Opportunity |
Main initiatives |
|---|---|---|---|
| Resource recycling | In the pursuit of securing the circular economy required by society at large:
|
O : Stable demand of used vehicles (auto auction business) O : Broader dismantling and recycling needs for automobiles and plants (recycling business) R : Shrinking used car market due to a sharing economy and other shifts in values |
|
| Climate change | In the pursuit of carbon neutrality throughout society at large:
|
O : Demand to shift to EV alternatives energizing the used car market R : Increasing costs related to the reduction of greenhouse gas emissions (net zero emissions) at USS and throughout the value chain |
|
| Human resources management | The auto auction business must secure automotive inspectors, digital professionals, and other diverse human resources to foster long-term growth as the workforce in Japan dwindles. | O : Recruitment of human capital with a wide range of skills R : Lower number of job seekers due to a smaller workforce R : Business stagnation due to an aging employee base |
|
| Information management | The auto auction business handles personal member information and confidential information. | O : Business expansion versatilely capitalizing on big data R : Loss of reputation and decline in membership in the event of any personal or confidential information leaks |
|
| Fair and equitable business dealings | Unfair and unequal auctions due to preferential treatment of some members or other inappropriate behavior. | O : Enhanced brand power made possible by securing and promoting a fair and equal standing for everyone R : Loss of reputation and decline in membership in the event of any improper business dealings |
|
Key performance indicators (KPIs)
| Priority subjects (Materiality) |
Key performance indicators (KPIs) | Scope | Actual (fiscal year) | Target | Relevant SDGs | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2019 | 2020 | 2021 | 2022 | 2023 | ||||||
| Resource recycling | Waste rate (tons of waste produced / tons of receivables) | (%) | ARBIZ Co., Ltd. | 16.3 | 13.1 | 8.3 | 6 | 3.6 | 15% or less in receivables |  |
| Metal recycling rate (tons of metal shipments / tons of metal receivables) | (%) | 50.2 | 45.7 | 43.7 | 52.4 | 54.2 | Over 40% in receivables | |||
| R2 certification | (%) | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100% | |||
| End-of-life vehicle recycling rate | Yes | Yes | Yes | Yes | Yes | Maintain certification | ||||
| Recycling rate (excluding materials containing asbestos) | (%) | SMART Inc. | 97.7 | 95.6 | 94.3 | 94.3 | 96.0 | Over 90% | ||
| Digital consignment rate | (%) | USS Co., Ltd. | 0 | 0 | 10 | 20 | 30 | |||
| Climate change | Scope 3 CO2 emissions | (t-CO2) | USS Group | － | 16,838 | 16,735 | 15,703 | 14,076 | 42% reduction by FY2030 (Base year: FY2021) |
  |
| Total Scope 1 and 2 CO2 emissions | (%) | － | 295,535 | 300,465 | 307,006 | 267,692 | 25% reduction by FY2030 (Base year: FY2021) |
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| Human resources management | Employees with a level three or higher vehicle inspector certification | (people) | USS Co., Ltd. | 250 | 258 | 261 | 255 | 272 |   |
|
| Average length of time necessary to acquire a level three vehicle inspector certification | (months) | 26 | 26 | 26 | 26 | 15 | 8 months | |||
| Women appointed as executive officers (deputy senior staff or above) | (%) | 5.4 | 5.9 | 6.8 | 7.6 | 8.8*2 | Over 8% of all employees | |||
| Number of occupational accidents | (%) | 0 | 0 | 0 | 0 | 2.6*2 | Over 5% by FY2025 Over 10% by FY2030 |
|||
| Turnover rate | (%) | 50 | 50.6 | 64.4 | 63.3 | 69.6 | Maintain an acquisition rate over 60% | |||
| Employment ratio of persons with disabilities | (%) | 1.57 | 1.63 | 2.09 | 2.48 | 2.25 | Maintain an employment rate at or above that mandated by law (2.3%) | |||
| Acquisition rate of paid leave | (%) | 4.6 | 2.9 | 4.7 | 6.0 | 6.0 | 5% or less | |||
| Ratio of women in management | (incidents) | ARBIZ Co., Ltd. | 6 | 3 | 2 | 3 | 2 | 0 | ||
| Frequency rate of occupational accidents requiring leave | 16.03 | 9.47 | 6.53 | 9.33 | 6.27 | 6.0 or less | ||||
| Severity rate of occupational accidents requiring leave | 0.37 | 1.55 | 0.99 | 0.05 | 0.00 | 00.5 or less | ||||
| Ratio of employees attending external training (regular employee or above excluding those seconded)*1 | 0 | 3.5 | 48.2 | 100.0 | 46.0 | Over 50% | ||||
| Information management | Ratio of employees attending PrivacyMark training | (%) | USS Co., Ltd. | － | － | 100.0 | 100.0 | 100.0 | 100% |  |
| ISO 27001 certification | ARBIZ Co., Ltd. | Yes | Yes | Yes | Yes | Yes | Maintain certification | |||
| Fair and equitable business dealings | Wrongful acts by employees | (incidents) | USS Co., Ltd. | 0 | 0 | 0 | 0 | 0 | 0 | |
*1 The training format changed from group training to e-learning in fiscal 2023, which encourages greater employee participation.
*2 Data current as of April 1, 2024.