Social Impact Research Launches Materiality Support Service Focused on Investor Needs: Achieving 6-Month Consulting Process in Just 2 Months

Social Impact Research Co., Ltd. has launched a support service to disclose materiality and formulate corporate value improvement stories requested by investors. The service organizes the relationship between materiality, non-financial KPIs, financial results, and corporate value, based on the perspective of 'excellent sustainability disclosure' emphasized by the Government Pension Investment Fund (GPIF). A key feature is the ability to execute the disclosure improvement process in 2 months, which can take up to 6 months at major consulting firms.

### Background of the Service In recent years, corporate sustainability disclosure has reached a major turning point. Previous disclosures focused on broadly explaining initiatives related to environmental, social, and governance issues. However, investors today are not looking for simple exhaustiveness of ESG items. What is important is to demonstrate, as a causal relationship, what materiality is truly important to the company and how it leads to business strategy, competitive advantage, profitability, capital efficiency, risk reduction, and corporate value improvement.

In particular, 'excellent sustainability disclosure' evaluated by GPIF and domestic equity investment institutions requires the ability to explain how sustainability issues are linked to the company's business and growth strategies, and how non-financial KPIs affect financial indicators such as sales, profit margins, ROIC, and cost of capital.

### Overview of the New Service: Corporate Value Improvement Story Construction Support This service analyzes a company's integrated reports, IR materials, sustainability reports, and securities reports to reconstruct them into corporate value improvement stories that resonate with investors. Based on existing materials, we organize the connections between materiality, business strategy, non-financial capital, financial KPIs, and corporate value, and present directions for disclosure improvement in a short period.

### Strengths of the Service: Completing 6 Months' Worth of Improvement in 2 Months The greatest strength is the ability to execute the process in as little as 2 months. While general projects often take a long time for status analysis, interviews, materiality organization, KPI design, and financial impact analysis, we utilize a proprietary analytical framework and investor-perspective checklists to identify disclosure issues and clarify improvement directions quickly starting from existing materials.

1. **Materiality and Business Strategy Connectivity Diagnosis** We diagnose whether the currently disclosed materiality is more than just a list of general social issues. We reorganize it into a form that communicates to investors by aligning it with the company's business model, competitive advantage, business portfolio, and growth strategy.

2. **Non-financial KPI and Financial Impact Connectivity Analysis** We analyze how non-financial capital, such as human capital, intellectual capital, natural capital, and social relationship capital, affects financial results. Specifically, we organize connections such as: - How human capital investment leads to productivity improvement, lower turnover, stronger recruitment, and improved profit margins. - How R&D and intellectual capital lead to new product sales, profit margins, and growth options. - How environmental responsiveness affects raw material costs, carbon costs, regulatory compliance, brand value, and cost of capital. - How strengthening supply chains leads to supply stability, quality, customer trust, and revenue growth.