Sustainability Promotion Plan and KPIs

The Nisshinbo Group has formulated a CSR Plan since FY2008 and has been promoting activities with Key performance indicators (KPIs) since FY2016. From FY2022, the plan has been renamed the "Sustainability Promotion Plan," and all employees are working toward the goal of achieving sustainability in society and business.

Progress of the “Fifth Sustainability Promotion Plan (FY2022-2024)”

In the “Fifth Sustainability Promotion Plan (FY2022-2024),” which began in FY2022, the content of the plan and KPIs were revised based on the degree of achievement and results of the 20 targets set in the fourth period plan. Furthermore, from FY2023, the plan has been revised as a goal to promote activities that demonstrate both internally and externally the Group's management stance toward sustainability management. In particular, in the social field, the Group added “Human resource acquisition and development” and “Engagement” as key action items, reviewed KPIs for each target item, set qualitative targets, and expanded the scope of targets.

With regard to the priority activity items by the end of FY2022 in the “Fifth Sustainability Promotion Plan” before the revision, in the “Promote environmental management,” the Group achieved the target for FY2024 ahead of schedule by reducing greenhouse gas emissions by 36% compared to FY2014, due to the suspension of coal boilers at PT. Nikawa Textile Industry, a subsidiary of Nisshinbo Textile Inc., and to switch to green power at PT. Nisshinbo Indonesia, PT. Naigai Shirts Indonesia, and PT. Nikawa Textile Industry. Meanwhile, in “Promote activities for occupational safety and health,” the Group achieved the target for occupational accident prevention, and “Cultivate employee health” is also on track to meet the target. In addition, although activities for the action plan under the Law for Measures to Promote the Advancement of Women and Support the Development of the Next Generation were carried out as planned, the targets have been expanded in view of the need to acquire and develop even more diverse human resources for the creation of future innovations.

Fifth Sustainability Promotion Plan

The revised targets and KPIs for FY2023 and actual results for FY2022 are as follows.

Revised Fifth Sustainability Promotion Plan

Environment(E)
Materiality:Contribution in the Areas of Environment and Energy
Key Action Items The Nisshinbo Group’s Initiatives Targets・KPI
(Achievement year 2024)
Coverage
Promote environmental management Improvement of the sales percentage by the products that contribute to the development of sustainable society  60% or more of total sales All companies in Japan and overseas
Reduction of greenhouse gas emissions Reduce by 35% or more compared to FY2014
Reinforcement of the maintenance of biodiversity Activities in Japan and overseas at more than 5 new sites
Reduction of water usage per unit of sales Reduce by 65% or more compared to FY2014
Promote Life Cycle Assessment (LCA)*1 60% or more of total sales
Reduction of the energy consumption per unit of sales Reduce by 15% or more compared to FY2014
Reduction of the volume of PRTR substances*2 emissions per unit of sales Reduce by 30% or more compared to FY2014
Improvement of recycling rate Increase the recycling rate to 90% or more
Social(S)
Materiality:Creation of a Safe and Secure Society
Key Action Items The Nisshinbo Group’s Initiatives Targets・KPI
(Achievement year 2024)
Coverage
Respect human rights Promoting human rights awareness-raising activities (In Japan) Rate of implementation of Group Human Rights Training, 100%
(In overseas)[Qualitative Target]
Implementation of human rights awareness-raising activities
All companies in Japan and overseas
Promoting business and human rights activities [Qualitative Target]
Develop human rights policy, introduce and promote Human Rights Due Diligence in fields with high human rights risks
Human resource acquisition and training Training of management candidates necessary for business promotion [Qualitative Target]
Increase the rate of participants in the Successor Program in senior management posts (executive officers and above)
All core companies
Strengthen mid-career recruitment to improve the age structure of human resources [Qualitative Target]
Strengthen mid-career recruitment to improve the age structure of human resources
Engagement Conduct global survey [Qualitative Target]
Continue to conduct global survey
All companies in Japan and overseas
Promote diversity Group-wide D&I penetration initiatives [Qualitative Target]
Communicating the top management message and implementing measures that contribute to the success of diverse human resources
All companies in Japan and overseas
Securing diverse human resources Ratio of female recruitment to total recruits
Mid-carrier:Administrative occupations, 50%
New graduate:Office occupations, 50%
Technical occupations, 20%
All companies in Japan*3
Promoting diverse human resources Rate of managers hired as mid-career employees to total managers, 11%
(Target value as of the end of FY2024)
※By FY2030, the goal is to have this ratio equal to the rate of employees hired through mid-career recruitment to all full-time employees.
All companies in Japan*3
Rate of female managers to total managers, 6%
(Target value as of the end of FY2024)
※By FY2030, the goal is to have this ratio equal to the rate of female employees to all full-time employees.
Rate of training on psychological safety, 100% All companies in Japan
Create a comfortable workplace environment for employees Rate of taking annual paid leave, 70% or more All companies in Japan*3
Rate of male employees taking childcare leave, 30% or more of eligible male employees
Promote activities for occupational safety and health Prevent occupational injuries The number of serious accidents “0” All companies in Japan and overseas
Cultivate employee health Promoting health management Rate of patients receiving detailed examinations after regular health checkups, 85% or more All companies in Japan
Implementation rate of health guidance for high-risk workers, 100%
Improve quality and customer satisfaction Continuously promote measures to improve customer satisfaction The number of violations of the Product Liability Act “0” All companies in Japan and overseas
[Qualitative Target]
Understand and share the status of quality claims for each segment
Development of social contribution activities Participate in local contribution activities [Qualitative Target]
Expand participation in local contribution activities
All companies in Japan and overseas
Governance(G)
Materiality:Global Compliance
Key Action Items The Nisshinbo Group’s Initiatives Targets・KPI
(Achievement year 2024)
Coverage
Practice the Group's Corporate Philosophy Communicating management’s messages based on the Group's Corporate Philosophy Promote the practice of the Group's Corporate Philosophy, VALUE, and Business Conduct Guidelines
(Affirmation rate in global survey, 80% or more)
All companies in Japan
Review survey results and consider the target affirmation rate, including overseas
Thorough compliance Raising awareness of compliance Rate of compliance training participation by management-level personnel, 100% All companies in Japan and overseas
Operating the corporate ethics reporting systems Response rate to corporate ethics reporting system, 100% Company with a Corporate Ethics Reporting System
Strengthen internal controls Development and operation of internal control systems [Qualitative Target]
Continuously developing and operating internal control systems
All companies in Japan and overseas
Promote risk management activities Operating a risk management system that responds to the external environment [Qualitative Target]
Continuous operation of the risk management system in response to the external environment
All companies in Japan and overseas
Strengthen information security measures Defending against external threats [Qualitative Target]
Strengthen protection against external threats and continuously training employees on information security
All companies in Japan and overseas
Promotion of sustainable procurement Improving sustainable procurement in collaboration with suppliers Evaluation of improvement efforts based on the results of the sustainable survey to major suppliers (more than 80% of transaction amount), 100% Internal control assessment critical business locations, and all companies in Japan with 301 or more employees
Implementation of global response [Qualitative Target]
Consideration and implementation of deployment methods to the supply chain at overseas business connection and critical overseas locations
All companies in Japan and overseas
Expanding internal awareness-raising activities Implementation rate of training for purchasing staff (annual theme), 100%

*1 Life Cycle Assessment:Grasping the amount of environmental impact throughout the product life cycle, from raw materials to production, use, and disposal.

*2 PRTR substances:Substances subject to the Pollutant Release and Transfer Register (PRTR) system pursuant to the “Act on the Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment and Promotion of Improvements to the Management Thereof”

*3 KPIs are those of Nisshinbo Holdings Inc.

Fifth Sustainability Promotion Plan before the Revision and its Results

Environment(E)
Materiality:Contribution in the Areas of Environment and Energy
Key Action Items The Nisshinbo Group’s Initiatives Targets・KPI
(Achievement year 2024)
Coverage FY2022 Results
Promote environmental management Improvement of the sales percentage by the products that contribute to the development of sustainable society  60% or more of total sales All companies in Japan and overseas 55%
Reduction of greenhouse gas emissions Reduce by 35% or more Compared to FY2014 Reduced by 36%
Reinforcement of the maintenance of biodiversity Activities in Japan and overseas At more than 5 new sites 2 new registrations
Reduction of water usage per unit of sales Reduce by 65% or more Compared to FY2014 Reduced by 78%
Promote Life Cycle Assessment (LCA)*1 60% or more of total sales Reduced by 64%
Reduction of the energy consumption per unit of sales Reduce by 15% or more Compared to FY2014 Reduced by 19%
Reduction of the volume of PRTR substances*2 emissions per unit of sales Reduce by 30% or more Compared to FY2014 Reduced by 42%
Improvement of recycling rate Increase the recycling rate to 90% or more 84%
Social(S)
Materiality:Creation of a Safe and Secure Society
Key Action Items The Nisshinbo Group’s Initiatives Targets・KPI
(Achievement year 2024)
Coverage FY2022 Results
Respect human rights Enhance human rights awareness-raising activities and prevent harassment Rate of companies that conducted overall training (theme by fiscal year), 100% All companies in Japan 91%
Promote diversity Increase employment rate of disable persons Employment rate of persons with disabilities (Ratio of achieving companies), 100% Japan companies with 43.5 or more employees 100%
Promotion of globalization of human resources - - -
Create a comfortable workplace environment for employees Achievement rate of FY2024 targets in accordance with the Act on Promotion of Women’s Participation and Advancement in the Workplace – General Business Operator Action Plans (Ratio of companies that achieved), 100% Japan companies with 301 or more employees Activities as planned
Achievement rate of FY2024 targets in accordance with the Act on Advancement of Measures to Support Raising Next-Generation Children – General Business Operator Action Plan (Ratio of companies that achieved), 100% Japan companies with 101 or more employees Activities as planned
Promote activities for occupational safety and health Prevent occupational injuries The number of serious accidents “0” All companies in Japan and overseas 0件
Cultivate employee health Promote health management Participation rate of regular health examination, 100% All companies in Japan 99%
Implementation rate of stress check, 95% All companies in Japan with 50 or more employees 96%
Improve quality and customer satisfaction Continuously promote measures to improve customer satisfaction The number of violations of the Product Liability Act “0” - 0件
Development of social contribution activities Participate in local contribution activities - - -
Governance(G)
Materiality:Global Compliance
Key Action Items The Nisshinbo Group’s Initiatives Targets・KPI
(Achievement year 2024)
Coverage FY2022 Results
Instill the Corporate Philosophy Instill the revised Group Corporate Philosophy Rate of companies that have released management messages based on the Group’s corporate philosophy, 100% All companies in Japan and overseas 98%
Thorough compliance Regularly implement compliance training Participation rate of compliance training for managers, 100% All companies in Japan and overseas 100%
Operate a corporate ethics reporting system Response rate to corporate ethics reporting system, 100% Company with a Corporate Ethics Reporting System 100%
Strengthen internal controls Continuously develop and operate an internal control system - - -
Promote risk management activities Improve the effectiveness of risk management - - -
Strengthen information security measures Defend against external threats - - -
Promote of sustainable procurement Improve sustainable procurement in collaboration with suppliers Evaluation of improvements based on the results of sustainability survey of major suppliers (covering 70% of transaction value), 100% Internal control assessment critical business locations, and all companies in Japan with 301 or more employees Activities as planned