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-FY2024)"
In the "Fifth Sustainability Promotion Plan (FY2022-FY2024)," 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.
Regarding the status of activities up to the end of FY2023, in the area of the promotion of environmental management, all eight of the stated goals are going well with four of them achieving their FY2024 targets ahead of schedule. With regard to the most important issue of reducing greenhouse gas emissions in order to achieve carbon neutrality, Nisshinbo Group is on track to achieve the 2030 target by reducing greenhouse gas emissions by 46% from the fiscal year 2014 level, thanks to the expansion of solar power generation facilities and the switch to renewable energy-derived electricity in Japan and overseas.
With respect to human rights, the Nisshinbo Group Human Rights Policy was formulated in August 2023. In order to disseminate and deepen the understanding of the human rights policy, Nisshinbo Group created video materials in which the president delivers a message about the background, thoughts, and goals of the human rights policy formulation as part of the Group human rights training and distributed the materials throughout the company. In addition, based on the human rights policy, Nisshinbo Group started a full-scale human rights due diligence program. In the areas of the acquisition and development of human resources and the promotion of diversity, the Group launched a female leader development program as a measure to increase the ratio of female managers and is working to create a corporate culture that facilitates the use of childcare leave regardless of gender.
Fifth Sustainability Promotion Plan
The revised targets and KPIs for FY2023 and actual results for FY2023 are as follows. On December 27, 2023, Nisshinbo Holdings Inc. included HVJ Holdings Inc. and its subsidiary Hitachi Kokusai Electric and seven other companies in the scope of consolidation, but they are not included in the data table for FY2023.
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 | FY2023 Results*1 |
|---|---|---|---|---|
| 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 | 53% |
| Reduction of greenhouse gas emissions | Reduce by 35% or more compared to FY2014 | 46% | ||
| Reinforcement of the maintenance of biodiversity | Activities in Japan and abroad at more than 5 new sites | Active at 3 sites (cumulative since FY2022) | ||
| Reduction of water usage per unit of sales | Reduce by 65% or more compared to FY2014 | 78% | ||
| Promote Life Cycle Assessment (LCA)*2 | 60% or more of total sales | 60% | ||
| Reduction of the energy consumption per unit of sales | Reduce by 15% or more compared to FY2014 | 24% | ||
| Reduction of the volume of PRTR substances*3 emissions per unit of sales | Reduce by 30% or more compared to FY2014 | 38% | ||
| Improvement of recycling rate | Increase the recycling rate to 90% or more | 88% |
Social (S) Materiality：Creation of a Safe and Secure Society
| Key Action Items | The Nisshinbo Group’s Initiatives | Targets・KPI (Achievement year 2024) |
Coverage | FY2023 Results |
|---|---|---|---|---|
| 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 | 97% |
| 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 |
— | ||
| 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 a) Mid-carrier：Administrative occupations, 50% b) New graduate：Office occupations, 50% c) New graduate：Technical occupations, 20% |
All companies in Japan*4 |
a) 25% b) 50% c) 23% |
|
| Promoting diverse human resources |
Rate of managers hired as mid-career employees to total managers, 11% (Target value as of the end of FY2024) Note: 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*4 | 15% | |
|
Rate of female managers to total managers, 6% (Target value as of the end of FY2024) Note: By FY2030, the goal is to have this ratio equal to the rate of female employees to all full-time employees. |
7.4% | |||
| Rate of training on psychological safety, 100% | All companies in Japan | 99.6% | ||
| Create a comfortable workplace environment for employees | Rate of taking annual paid leave, 70% or more | All companies in Japan*4 | 71% | |
| Rate of male employees taking childcare leave, 30% or more of eligible male employees | 100% | |||
| Engagement | Conduct global survey |
[Qualitative Target] Continue to conduct global survey |
All companies in Japan and overseas | — |
| 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 | Japan and overseas 0 cases |
|
[Qualitative Target] Understand and share the status of quality claims for each segment |
— | |||
| Promote activities for occupational safety and health | Prevent occupational injuries | The number of serious accidents "0" | All companies in Japan and overseas | 0 cases |
| 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 | Activities as planned |
| 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% | 46% | ||
| Cultivate employee health | Promoting health management | Rate of patients receiving detailed examinations after regular health checkups, 85% or more | All companies in Japan | 76% |
| Implementation rate of health guidance for high-risk workers, 100% | 95% | |||
| 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 | FY2023 Results |
|---|---|---|---|---|
| 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 |
68% affirmation rate in Japan |
| Thorough compliance | Raising awareness of compliance | Rate of compliance training participation by management-level personnel, 100% | All companies in Japan and overseas | 98% |
| Operating the corporate ethics reporting systems | Response rate to corporate ethics reporting system, 100% | Company with a Corporate Ethics Reporting System | 100% | |
| 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 | — |
*1 Because of the transfer of all shares of TMD FRICTION GROUP S.A. (TMD), a subsidiary in the Automobile Brakes business, on November 30, 2023, and for other factors, TMD and 21 other companies were excluded from the scope of consolidation. Therefore, TMD and 21 other companies are included in the data until November 2023.
*2 Life Cycle Assessment: Grasping the amount of environmental impact throughout the product life cycle, from raw materials to production, use, and disposal.
*3 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"
*4 KPIs are those of Nisshinbo Holdings Inc.