Materiality

The corporate philosophy of the Nisshinbo Group is "Change and Challenge! For the creation of the future of Earth and People." Since its inception, the Group has passed down through the generations its basic belief as a public entity that contributing to society is companies’ reason for being, and that contribution is the engine that drives their growth.

In February 2015, the Nisshinbo Group identified material issues for the Group in order to clarify issues that required action to achieve sustainable growth for the Nisshinbo Group’s business together with society. In 2023, materiality was reviewed in consideration of changes in the external environment and other factors; as a result, it was decided that the three materialities would remain unchanged and continue to be promoted.

Process of Determining Materiality

After organizing social issues based on the global guidelines and the different opinions of internal and external stakeholders, the Nisshinbo Group evaluated the relevance of the issues to the Nisshinbo Group's business and identified the social issues to consider. The issues were then prioritized from two perspectives: importance to stakeholders and importance to the Nisshinbo Group. From among these issues, the three items listed above were approved as the materiality at the Board of Management chaired by the president of the Nisshinbo Group.

Addressing Materiality

The Nisshinbo Group has established priority action items based on identified materiality, formulated initiatives, targets, and KPIs, and is promoting these activities across the entire Group, both domestically and internationally.

Please refer to "Sustainability Promotion Plan and KPIs" for details regarding our Group’s initiatives, goals, and KPIs.

• Sustainability Promotion Plan and KPIs

Contributing to SDGs

The Nisshinbo Group will contribute to the achievement of the SDGs, whose aims dovetail with its intended direction, in all processes in the value chain. The Group identified the core goals that Nisshinbo believes are directly linked to contributing to the achievement of the SDGs through business, and the Group is actively pursuing initiatives in these areas.

	Core SDG goals that contributed by all corporate activities
	E Environment	S Society	G Governance
Procurement of raw materials	Promotion of LCA activities to reduce emissions of chemical substances and waste and to develop products that contribute to a sustainable society Promotion of activities for chemical substance management	Formulation of Sustainable Procurement Guidelines and disseminate to suppliers. Furthermore, we use supplier questionnaires.	Formulation of Anti-Corruption Guide and using it for anti-bribery measures, including at the Group’s overseas companies.
Manufacturing	Development of zero-emission (recycling rate of 99% or more) activities Waste reduction activities with the goal of achieving a 95% recycling rate Conducting water risk assessments for business sites and major supply chains. In addition, conducting water consumption surveys and management.	Respect diversity in all aspects, including human rights and employment, and promote work-family life balance. Health and Safety Activities Promotion of health management through the Group Health Management Division Meeting Active participation by employees in environmental contribution activities and environmental beautification activities
Logistics	Promotion of efficient use of natural resources such as fuel by reducing transportation volume
Sales	Increasing the ratio of products that contribute to a sustainable society Promotion of reuse of packaging materials and reduction of usage	Planned measures to achieve continuous promotion of measures to improve customer satisfaction	Operation of corporate ethics reporting system, early detection of legal violations, correction and prevention of recurrence

	Core SDG goals that contributed by all corporate activities
Procurement of raw materials	E Environment Promotion of LCA activities to reduce emissions of chemical substances and waste and to develop products that contribute to a sustainable society Promotion of activities for chemical substance management S Society Formulation of Sustainable Procurement Guidelines and disseminate to suppliers. Furthermore, we use supplier questionnaires. G Governance Formulation of Anti-Corruption Guide and using it for anti-bribery measures, including at the Group’s overseas companies
Manufacturing	E Environment Development of zero-emission (recycling rate of 99% or more) activities Waste reduction activities with the goal of achieving a 95% recycling rate Conducting water risk assessments for business sites and major supply chains. In addition, conducting water consumption surveys and management. S Society Respect diversity in all aspects, including human rights and employment, and promote work-family life balance. Health and Safety Activities Promotion of health management through the Group Health Management Division Meeting Active participation by employees in environmental contribution activities and environmental beautification activities
Logistics	E Environment Promotion of efficient use of natural resources such as fuel by reducing transportation volume
Sales	E Environment Increasing the ratio of products that contribute to a sustainable society Promotion of reuse of packaging materials and reduction of usage. S Society Planned measures to achieve continuous promotion of measures to improve customer satisfaction G Governance Operation of corporate ethics reporting system, early detection of legal violations, correction and prevention of recurrence