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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 ending 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:
  • The auto auction business will contribute to the reuse of automobiles.
  • The recycling business will contribute to the resource recovery and recycling of automobiles and plant facilities.
 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
  • The auto auction business will enhance the efficiency and member convenience of automotive inspections through the use of digital technologies.
  • The recycling business will promote plant recycling through SMART Inc.
Climate change In the pursuit of carbon neutrality throughout society at large:
  • An increase in the EV share of the new car market could have a financial impact on the auto auction business.
  • USS and everyone throughout the value chain must engage in initiatives to reduce greenhouse gas emissions.
 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
  • Surveys and research on handling EV
  • Identification and reduction of greenhouse gas emissions (In the process of promoting activities to reduce Scope 1, 2, and 3)
  • Introduction of energy-saving measures, renewable energy, and solar power generation at business sites
Poverty There are people in the world who cannot escape from poverty due to a lack of access to an automobile and in turn a loss of employment opportunities. O : Increase in people taking out loans using financial technology
  • Support of loans for people without access to traditional financing through a capital business alliance with Global Mobility Service (launched in April 2023)
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 : Adverse health effects of work on employees
  • Respect of human rights and diversity
  • Fair and equal treatment and working conditions
  • A higher level of education and training
  • Occupational health and safety management
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
  • Establishment of a privacy policy
  • Proper management of member information
  • Acquisition of the PrivacyMark
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
  • Thorough awareness-raising about the corporate philosophy to create a fair market
  • Operation of a unique system to monitor inappropriate transactions
  • Formulation and distribution of anti-corruption and other basic policies on websites

Key performance indicators (KPIs)

Priority subjects
(Materiality)		 Key performance indicators (KPIs) Scope Actual (fiscal year) Target Relevant SDGs
2018 2019 2020 2021 2022
Resource recycling Waste rate (tons of waste produced / tons of receivables) (%) ARBIZ Co., Ltd. 12.4 16.3 13.1 8.3 6 15% or less in receivables
Metal recycling rate (tons of metal shipments / tons of metal receivables) (%) 45.6 50.2 45.7 43.7 52.4 Over 40% in receivables
R2 certification (%) 100 100 100 100 100 100%
End-of-life vehicle recycling rate － ◯ ◯ ◯ ◯ Maintain certification
Recycling rate (excluding materials containing asbestos) (%) SMART Inc. － 97.7 95.6 94.3 94.3 Over 90%
Digital consignment rate (%) USS Co., Ltd. 0 0 0 10 20
Climate change Scope 3 CO2 emissions (t-CO2) USS Group － － 16,838 16,735 15,703 42% reduction by FY2030
(Base year: FY2021)
Total Scope 1 and 2 CO2 emissions (%) － － 295,535 300,465 307,006 25% reduction by FY2030
(Base year: FY2021)
Poverty GMS (number of loan contracts) USS Support Service Co., Ltd. 3,000 in FY2023
Human resources management Employees with a level three or higher vehicle inspector certification (people) USS Co., Ltd. 246 250 258 261 255
Average length of time necessary to acquire a level three vehicle inspector certification (months) 26 26 26 26 26 8 months
Women appointed as executive officers (deputy senior staff or above) (%) 4.6 5.4 5.9 6.8 7.6 Over 8% of all employees
Number of occupational accidents (%) 0 0 0 0 0 Over 5% by FY2025
Over 10% by FY2030
Turnover rate (%) 54.8 50 50.6 64.4 63.3 Maintain an acquisition rate over 60%
Employment ratio of persons with disabilities (%) 1.4 1.57 1.63 2.09 2.48 Maintain an employment rate at or above that mandated by law (2.3%)
Acquisition rate of paid leave (%) 4.8 4.6 2.9 4.7 6.0 5% or less
Ratio of women in management (incidents) ARBIZ Co., Ltd. 5 6 3 2 3 0
Frequency rate of occupational accidents requiring leave 13.69 16.03 9.47 6.53 9.33 6.0 or less
Severity rate of occupational accidents requiring leave 0.03 0.37 1.55 0.99 0.05 00.5 or less
Ratio of employees attending external training (regular employee or above excluding those seconded) 0 0 3.5 48.2 100 Over 50%
Information management Ratio of employees attending PrivacyMark training (%) USS Co., Ltd. － － － 100 100 100%
ISO 27001 certification ARBIZ Co., Ltd. ◯ ◯ ◯ ◯ ◯ Maintain certification
Fair and equitable business dealings Wrongful acts by employees (incidents) USS Co., Ltd. 0 0 0 0 0 0
Sustainability
Top Commitment
USS’s Sustainability
Priority Subjects (Materiality)
GRI Standards Content Index
External Evaluations