Sustainability Promotion Plan and KPIs

The Nisshinbo Group implemented CSR activities since FY2008 when it established the CSR Plan. In FY2016, the Group set KPIs to measure progress toward achieving its CSR goals. In FY2022, Nisshinbo renamed the plan to the Sustainability Promotion Plan and is promoting activities to achieve sustainability through its business activities.

Sustainability Promotion Plan

The Nisshinbo Group established three-year targets in its sustainability promotion plan and is promoting initiatives throughout the entire group, both in Japan and overseas, to achieve these targets.

Achievement Status of the 5th Sustainability Promotion Plan and Targets for the 6th Sustainability Promotion Plan

Achievement Status of the 5th Sustainability Promotion Plan and Targets for the 6th Sustainability Promotion Plan1

*1 Products that contribute to a sustainable society: Company standards

*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"

Achievement Status of the 5th Sustainability Promotion Plan and Targets for the 6th Sustainability Promotion Plan2

*4 KPIs are those of Nisshinbo Holdings Inc.

Achievement Status of the 5th Sustainability Promotion Plan and Targets for the 6th Sustainability Promotion Plan3

Assessment of the 5th Three-Year Environmental Targets (to be achieved by FY2024)

In the "5th 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.

Materiality: Contribution to the Environmental and Energy Field

In the contribution to the environmental and energy field, Nisshinbo confirmed the achievements of its targets in six of the eight initiatives.

The Nisshinbo Group's greenhouse gas emissions for the FY2024 were reduced by 55% compared to the FY2014, which significantly exceeded the target of a 35% reduction compared to the FY2014. The main factors that contributed to this reduction include the transfer of the TMD Group, which was previously a consolidated subsidiary, and the installation of additional equipment for the removal of perfluorocarbon (PFC) gases and a decline in production in the microdevice business. Activities related to reducing GHG emissions and five other targets progressed smoothly, and the targets were achieved.

Products that contribute to a sustainable society accounted for 47% of sales in FY2024; however, Nisshinbo did not achieve its target of 60% or more of sales. Promotion of life cycle assessment (LCA) accounted for 51% of the Group's sales in FY2024, but the Group did not achieve its target of 60% or more of sales. This was because the Kokusai Denki Electric Group, which started activities in FY2024, was included in the scope.

Materiality: Creation of a Safe and Secure Society

In terms of creation of a safe and secure society, the Nisshinbo Group confirmed that it generally achieved the 13 quantitative targets that were set, excluding two targets related to the promotion of sustainable procurement.

Regarding respect for human rights, Nisshinbo established a Human Rights Statement in August 2023 and conducted group-wide human rights training aimed at raising awareness and deepening the understanding of the statement. Additionally, in FY2023 and FY2024, Nisshinbo conducted surveys of domestic and international group companies to assess the status of systems and measures related to human rights as part of its efforts to establish the foundation for human rights due diligence activities.

In terms of human resource acquisition and development, Nisshinbo established the Group HR Policy 2026, which recognized that human resources would play an important role in the transformation of the business portfolio. Specific measures included improving the participation rate in the successor program and strengthening career recruitment to correct the age composition of the Nisshinbo workforce.

In order to promote diversity, Nisshinbo implemented measures to eliminate the gender gap, promote diversity and inclusion, and develop female leaders based on a leadership development program for women. In FY2024, the ratio of career hires to managers at Nisshinbo Holdings Inc. was 19%, and the ratio of female managers was 7.8%, which exceeded the targets set by the Company. In addition, the training implementation rate for psychological safety reached 100% and achieved the target.

Materiality: Global Compliance

In global compliance, Nisshinbo confirmed that the Company generally achieved all three quantitative targets set by the Group.

To put into practice the Group's Corporate Philosophy, VALUE, and the Business Conduct Guidelines, Nisshinbo communicated messages from management based on the Group's corporate philosophy. In addition, in order to enhance compliance awareness, Nisshinbo provided compliance training for managers and improved the corporate ethics reporting system and thus achieved a 100% response rate for corporate ethics reports in FY2024.

Regarding the strengthening of information security measures, the Company continued to implement measures to enhance responses to external threats and provide information security education to employees.

6th Sustainability Promotion Plan (to be achieved by FY2027)

In October 2024, Nisshinbo formulated the 6th Sustainability Promotion Plan (FY2025–2027) and revised upward the KPIs for two of the four medium-term environmental targets (target year: 2030) that were expected to be achieved by the end of FY2024: Reduction of Greenhouse Gas Emissions and Reduction of Water Usage Per Sales.

Regarding the social goals of the 6th Sustainability Promotion Plan, Nisshinbo reviewed its initiatives to enhance activities in response to external demands by primarily expanding its goals and raising KPI values. For the environmental goals, the Company continued the initiatives from the 5th plan as milestones toward achieving the medium-term environmental goals and only raised the KPI values.

Management Message
Sustainability Management
Contribution to the Environment and Energy Sector
Creating a Safe and Secure Society
Global Compliance
Sustainability Data