As part of our mission "To innovate business procurement network", we aim to help our business customers streamline their MRO supply procurement processes and increase productivity. The sustainability of the customers, suppliers and employees who support our growth—as well as the society that forms their foundation—is essential to achieving that goal. We conduct sound business activities and aim to contribute to the advancement of industry and society based on appropriate corporate governance, with an emphasis on the foundations of society, including the environment and human rights. This is our basic thinking in addressing sustainability issues and identifying material issues.

In addition, we have identified the most impactful material issues from two perspectives: expectations from society and importance to MonotaRO. Furthermore, we determined areas of focus as a new initiative to contribute to the sustainability of business growth.

Note: Our sustainability initiatives cover only MonotaRO Co., Ltd. (Japan), which accounts for approximately 95% of the Group's sales.

　

Material Issue Identification Process
To ensure that our business can continue to grow in harmony with society, we deepened our discussions from various perspectives, and determined material issues in terms of sustainability through the process shown in the chart below.We periodically review the material issues, taking into account changes in the business environment and society.

1. Perception of societal issues and selection of potential material issues
In consultation with outside experts, project members and management aligned their awareness of social issues, and selected potential material issues.
　
2. Identification of material issues and selection of areas of focus
・Identification of material issues
The project members and management plotted out a matrix of potential material issues from two perspectives: expectations from society (vertical axis) and importance to MonotaRO (horizontal axis). The Sustainability Committee then organized and assessed these items, and identified 13 material issues (amended to 14 in 2025).　
・Selection of areas of focus
Among the material issues, we also set items that require cross-departmental efforts in the sustainability category as areas of focus, apart from what we do in daily business activities. Concrete initiatives in the areas of focus selected by the Sustainability Committee are being implemented by the relevant working groups in collaboration with the Sustainability Committee.
　
3. Approval
Following a resolution by the Board of Directors, the material issues and areas of focus were identified and announced.

Reassessment of Material Issues
In 2024, about three years since identifying material issues in 2021, we carried out are assessment of the issues, referring to changes in the external environment and international sustainability standards (SASB, GRI and ISO 26000). As a result of our reassessment, “product quality, reliability and safety”—an important factor for us to address as a distributor—was added as the 14th material issue in 2025. We will continue to monitor changes in the business environment and society, and conduct further reassessments periodically.

Reduction of GHG emissions
The total amount of GHG emissions (Scope 1 + Scope 2) from business activities must be reduced to 50% of 2020 levels by 2030.

• * The CO₂ emissions calculation results are independently assured by The Association for NFI-Assurance (ANFIA). Figures marked with an asterisk (*), based on location criteria (Scope2 from 2020 to 2022), are reference verified in-house.
  
• * Scope 1 mainly covers direct emissions from fuel consumption at distribution centers,offices and by goods transferring among distribution centers.
  
• * Scope 2 mainly covers emissions from the use of electric power and air-conditioning heat at distribution centers and offices.
  
• * In addition to an increase in shipment volume due to business expansion, electricity usage increased with the start of operations at Ibaraki Central SC in 2021, Inagawa DC Phase 1 in 2022, and Inagawa DC Phase 2 in 2023.
  
• * The use of renewable energy has been applied in Kasama DC and Ibaraki Central SC from July 2022 (changed to a renewable energy plan with tracking). From January 2023, this was also applied in Inagawa DC (by purchasing non-fossil certificates with tracking).
  

・Promotion of Women's Advancement
As part of our Diversity & Inclusion (D&I) initiatives, our company aims to increase the percentage of female manager-class leader to 25% by 2030, recognizing the importance of employing and nurturing diverse talents. To achieve this goal, we are enhancing our internal systems and hosting various seminars to further embrace diversity. Additionally, we are actively communicating our initiatives externally to strengthen our recruitment pool.

• * Assistant Manager: Refers to Team Leader positions. Managerial positions: Include Group Leader, Office Head, Center Head, Deputy Division Manager, or Division Manager roles.
  

　
　
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