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Gate 1 Continuous Value Creation

Megatrends and Business Environment

In addition to the growing importance of sustainability, the megatrends that may impact our businesses are changing by the moment. With an awareness of the internal and external environments of each Business Unit, we have identified the risks and opportunities facing our businesses and formulated strategies for sustainable growth accordingly. In this manner, we aim to not only achieve sustainable growth in corporate value but also contribute to the sustainable development of the environment and society as a whole.

Megatrends

  • Change in demographic structure
  • Widening gap in income between rich and poor
  • Climate change, more frequent extreme weather
  • Energy and water shortages
  • Food security
  • Growing needs for healthcare
  • Rapid pace of urbanization
  • Increase in and diversification of infrastructure need
  • Diversification of consumer needs
  • Changes in work style
  • Further consideration for human rights
  • Acceleration of digital technology
  • Growing security risks and progress of society focused on information management
  • Spread of infectious diseases
  • Changes in supply chains
  • Fragmentation of economy and society, less international cooperation

Business Environment

Segments Awareness of Internal and External Environments
Iron &
Steel Products
  • Slower growth in crude steel output worldwide
  • More sophisticated needs for materials for mobility applications
  • Acceleration toward a low-carbon society and a circular economy
Mineral &
Metal Resources
  • Evidence of climate change and growing needs to reduce environmental load
Energy
  • Increase in importance of addressing climate change, acceleration toward a low-carbon society
  • Expanding demand for clean energy and renewable energy
  • Weaker demand for transportation fuel, risk of prolonged low prices for crude oil and gas
Machinery &
Infrastructure
  • Increase in core infrastructure demand and digital infrastructure demand
  • Shift to the 3Ds (decarbonization, decentralization, and digitalization)
  • Stronger demand for transportation and mobility infrastructure services
  • Acceleration of changes in industry structures from diversification of user needs
Chemicals
  • Increase in importance of addressing climate change
  • Acceleration toward a circular economy
  • Acceleration of digital technology
  • Greater awareness of health, needs for high-value-added foods
Lifestyle
  • Increase in sophistication and diversification of food consumption and consumer needs
  • Faster acceleration of digital technology
  • Structural changes in business due to climate change and technological innovation
  • Expansion in healthcare service gap in emerging countries, growth of medical value chain into wellness field
Innovation & Corporate
Development
  • Business development using digital data
  • Increasing needs for contactless services
  • Expansion in business related to digital infrastructure as data traffic increases
  • Increase in importance of addressing climate change
Overseas Regional
Business Units
  • Increase in importance of addressing climate change
  • Acceleration of digital technology