Materiality: GMO Payment Gateway,Inc.

As a leading company in the payment industry, the Company promotes business activities that support online and cashless migration, paperless operations, digital transformation (DX) and financial inclusion by building payment infrastructures as well as providing payment and financial-related solutions and platform. These are based on the “GMO-ism” shared with GMO Internet Group, under which the Company upholds the management principle of “contributing to society to pursue both spiritual and material prosperity for our partners.”
The Company is engaged in resolving a wide array of societal issues such as socioeconomic revitalization and enhancement of corporate competitiveness through the Company’s businesses that leverage innovations centered on payment to support a diverse range of corporate activities.
Together with our stakeholders who support the Company’s business activities, we stive to contribute to the realization of a sustainable society and our customers’ growth that in turn enhances the Company’s corporate value and a sustainable high growth rate.

In order to contribute to the sustainable advancement of society and achieve a sustainable improvement in corporate value by resolving various social issues through our business activities, the Company has identified material issues, using the procedure stated below, that need to be prioritized for their medium-to-longer term impact to the Company’s business.

Identify those social issues that have high relevance to the Company’s business by assessing societal trends and by referencing international indicators such as SDGs, GRI standards and SASB (Sustainability Accounting Standards Board).

We have evaluated these issues based on our own perspective by taking into account the business opportunities and risks such as contribution to financial performance and business growth as well as incorporating perspectives of external stakeholders through dialogues with shareholders, institutional investors and ESG rating agencies.

Based on this analysis and after discussions among management including External Directors and by resolutions voted at the Board, the Company has identified the materiality issues and compiled key themes of sustainability management.

Materiality Matrix

The materiality issues identified have been grouped into 5 domains to clarify and stipulate the key themes of sustainability management. The Company will strive to contribute to a sustainable socioeconomic advancement and a sustainable improvement in corporate value along these 5 themes.

	1 Innovation ～Social advancement and customer’s growth through creation of payment innovations～ Beginning with payment, a step in the flow of many economic activities, the Company provides a wide array of innovations to corporates that support operational efficiencies such as invoicing, cash management and salary payment to enhance corporate’s competitiveness. In addition, this contributes to realize a more convenient and comfortable society by promoting cashless adoption. ・Reconfiguring operational processes and commercial flows from a payment perspective ・Service quality improvement and better customer experience through a seamless payment process ・Respond to the decline in labor population with payment automation ・Reduction of social costs by promoting cashless adoption ・Promote financial inclusion by offering various payment methods and financial access ・Revitalization of local communities by building out payment infrastructure
2 Reliability ～Sustainable operation of payment infrastructure to support society ～ As a company responsible for the social infrastructure of payment, the Company strives to improve the stability and reliability of our operations in order to secure safety and security of the socioeconomic activity of payment. ・Stable and uninterrupted operation of the payment system infrastructure ・Strengthen information security, the bedrock of a secure payment transaction ・Eliminate fraudulent transactions including Act on Prevention of Transfer of Criminal Proceeds
3 Decarbonization ～Contribute to the Earth’s environment through cashless adoption～ Focus on CO2 emissions reductions through the transformation of paper-based and cash-based processes. ・Reduce environmental footprint through cashless adoption.
	4 People～Pursue organizational capability that embraces challenges and the commitment to 25% growth～ Focus on expanding the critically important human capital base as the highest priority undertaking of the organization as we seek to achieve sustainable growth that can overcome changes in the environment. ・Drastic empowerment of human capital capable to driving a 25% growth ・Support self-realization by providing work environment that is healthy and motivating ・Realize diversity and inclusion to further strengthen the organization
5 Governance～Institute a sound and responsible management～ Strengthen the governance structure to enhance the effectiveness of oversight from external bodies and risk-taking, in order to continue on a sound and stable path of high growth ・Constructing a corporate governance structure that secures sound and a high growth rate ・Thoroughly adopt preventative risk management to supports high growth ・Secure a fair and transparent management through information disclosure

Social contribution through the sustainable growth of businesses centered on payment

1 Innovation ～Social advancement and customer’s growth through creation of payment innovations～

Beginning with payment, a step in the flow of many economic activities, the Company provides a wide array of innovations to corporates that support operational efficiencies such as invoicing, cash management and salary payment to enhance corporate’s competitiveness. In addition, this contributes to realize a more convenient and comfortable society by promoting cashless adoption.

・Reconfiguring operational processes and commercial flows from a payment perspective
・Service quality improvement and better customer experience through a seamless payment process
・Respond to the decline in labor population with payment automation
・Reduction of social costs by promoting cashless adoption
・Promote financial inclusion by offering various payment methods and financial access
・Revitalization of local communities by building out payment infrastructure

2 Reliability ～Sustainable operation of payment infrastructure to support society ～

As a company responsible for the social infrastructure of payment, the Company strives to improve the stability and reliability of our operations in order to secure safety and security of the socioeconomic activity of payment.

・Stable and uninterrupted operation of the payment system infrastructure
・Strengthen information security, the bedrock of a secure payment transaction
・Eliminate fraudulent transactions including Act on Prevention of Transfer of Criminal Proceeds

3 Decarbonization ～Contribute to the Earth’s environment through cashless adoption～

Focus on CO2 emissions reductions through the transformation of paper-based and cash-based processes.

・Reduce environmental footprint through cashless adoption.

Management foundation to support sustainable growth

4 People～Pursue organizational capability that embraces challenges and the commitment to 25% growth～

Focus on expanding the critically important human capital base as the highest priority undertaking of the organization as we seek to achieve sustainable growth that can overcome changes in the environment.

・Drastic empowerment of human capital capable to driving a 25% growth
・Support self-realization by providing work environment that is healthy and motivating
・Realize diversity and inclusion to further strengthen the organization

5 Governance～Institute a sound and responsible management～

Strengthen the governance structure to enhance the effectiveness of oversight from external bodies and risk-taking, in order to continue on a sound and stable path of high growth

・Constructing a corporate governance structure that secures sound and a high growth rate
・Thoroughly adopt preventative risk management to supports high growth
・Secure a fair and transparent management through information disclosure

Sustainability

Materiality

Basic Approach to Sustainability

Identification Process of Material Issues

Materiality Matrix

Key Themes of Sustainability Management