NS Solutions Corporation
Climate Impact & Sustainability Data (2012-04 to 2013-03, 2015, 2017-04 to 2018-03, 2019-04 to 2020-03, 2020-04 to 2021-03, 2021-04 to 2022-03, 2022-04 to 2023-03, 2023-04 to 2024-03)
Reporting Period: 2012-04 to 2013-03
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Reduced energy consumption by 11.2% (CO2 emissions reduction of 11.2%) compared to 1990 levels.
- Recycled 99% of 25.11 million tons of by-products.
- Reduced final disposal of by-products to 310,000 tons/year.
- Recycled approximately 200,000 tons of waste plastics (30% of nationwide recycling) and 80,000 tons of waste tires (10% of nationwide recycling).
Social Achievements
- Concluded environmental conservation agreements with local municipalities.
- Implemented "Hometown Forest" creation projects.
- Offered internship opportunities to 200 students.
- Supported "Training Programs for Educators at Private Companies".
Governance Achievements
- Adopted NSSMC Group Conduct Code.
- Established Employee Action Guidelines.
- Improved IR activities through briefings, meetings, and website updates.
Climate Goals & Targets
- Achieve world’s highest level in resources and energy efficiency in steelmaking by 2050.
- Commercialize COURSE 50 technology by around 2030.
- Reduce final disposal volume of by-products by 330,000 tons by 2015.
Environmental Challenges
- Power supply concerns due to idle nuclear power plants and increased electricity rates.
- Need to further reduce CO2 emissions.
- Managing environmental risks across the group companies.
Mitigation Strategies
- Investing in energy-saving equipment and facilities.
- Improving operations.
- Developing innovative steelmaking processes (COURSE 50).
- Transferring energy-saving technologies overseas.
- Improving logistics efficiency.
Supply Chain Management
Responsible Procurement
- Collaboration with customers and suppliers to specify management standards for hazardous chemical substances.
- Ensuring raw materials do not contain minerals from conflict-affected areas.
Climate-Related Risks & Opportunities
Opportunities
- Development of energy-efficient products
Reporting Standards
Frameworks Used: GRI (Global Reporting Initiative) “Sustainability Reporting Guidelines Version 3.0”, “Environmental Reporting Guidelines,” by the Ministry of the Environment
Certifications: ISO 14001
Sustainable Products & Innovation
- High-performance steel materials for energy conservation equipment and power generation facilities.
- SuperDyma® anticorrosive galvanized steel plate.
- NS Ecospiral® rotary press-fit piled steel pipe.
- High-strength ultra-thin rolled stainless foil for secondary batteries.
Awards & Recognition
- Two Okochi Memorial Production Prizes (FY2012)
- Thomson Reuters 2012 Top 100 Global Innovator Award
- Other awards listed on page 29
Reporting Period: 2015
Environmental Metrics
ESG Focus Areas
- Environmental Initiatives
- Safety
- Corporate Governance
- Human Rights
- Community Engagement
Environmental Achievements
- Reduced CO2 emissions per ton of crude steel (year-over-year improvement shown in graph, specific numbers not provided)
- 90% of industrial water reclaimed and recycled
- 90% of electricity generated by recovered waste energy and by-product gases
- 100% of by-product gases generated in steelworks recycled
- 99% recycling rate of by-products
- Development of eco-friendly steelmaking processes
- Development of eco-friendly products (e.g., SuperDyma™ galvanized sheets, ABREX™ abrasion-resistant steel plate, Ni-7% steel sheet for LNG storage tanks)
Social Achievements
- Launched TAIKAN Program (experience-based safety education program)
- Improved health guidance to employees
- Various welfare benefit programs (dormitories, company housing, worklife support program)
- Increased number of new hires to 1,300 per year
- Efforts to improve skills transfer from veteran to young employees
- Respect for human rights and opposition to forced or child labor
- Community investment through environmental conservation activities, cultural and athletic activities (e.g., “Creation of a Hometown Forest,” support for sports clubs, Kioi Hall activities)
Governance Achievements
- Established a corporate governance structure with a Board of Directors (including Outside Directors) and an Audit & Supervisory Board (including Outside Audit & Supervisory Board Members)
- Implemented an executive officer system
- Established an annual plan on internal controls and risk management
- Established a whistleblower system
- Regular compliance education programs (e.g., Antimonopoly Act Compliance Campaign Month)
- Developed compliance guidelines (e.g., “30 Don’ts of Business Behavior,” “Guidelines to Prevent Sexual and Power Harassment in the Workplace,” “Anti-Bribery Guidelines”)
- Enhanced quality assurance measures (e.g., ISO 9001 and JIS certifications)
Climate Goals & Targets
- Increase return on sales (ROS) from 8.1% to 10% or more
- Increase return on equity (ROE) from 7.6% to 10% or more
- Improve debt-to-equity (D/E) ratio from 0.66 to around 0.5
- Increase overseas production to 19 million tons
- Increase overseas profit by ¥50 billion
- Allocate ¥300 billion for business investment
Environmental Challenges
- Series of accidents at the Nagoya Works in 2014 (four power failures and one coke fire accident)
- Uncertainty of price trends for primary raw materials and steel products
Mitigation Strategies
- Established Crisis Management Headquarters
- Investigated causes of accidents with outside experts
- Implemented measures to prevent recurrence (e.g., doubling power system’s main distribution lines, revising handling standards, installing additional CO detectors, thermo-viewers, and sprinklers)
- Enhanced domestic manufacturing capabilities (investment of ¥1,350 billion over three years)
- Strengthened head office organization and promoted disaster-prevention activities (establishment of new divisions and committees)
- Enhanced development of human resources (holistic and systematic programs)
- Consistent awareness-raising activities and dialog regarding accidents with all employees
- Close monitoring of steel material supply and demand and raw material prices
- Enhanced ability to make product proposals to customers
- Improved overseas supply system
- Revision of steel material prices with customer understanding
Supply Chain Management
Climate-Related Risks & Opportunities
Sustainable Products & Innovation
- Eco-friendly products (e.g., SuperDyma™ galvanized sheets, ABREX™ abrasion-resistant steel plate, Ni-7% steel sheet for LNG storage tanks)
- High-tensile-strength steel materials for automobiles
- Low noise gear units
- Permanent magnet-type retarder
- Titanium alloy connecting rods for supersport motorcycles
- Ring gears
- External-dimension constant H-shape (Hyper-Beam™)
- Wheelsets for high-speed railways
- Steelmaking slag (“KATAMATM” SP)
Awards & Recognition
- Thomson Reuters Top 100 Global Innovator Award (three consecutive years)
- General Motors Supplier of the Year Award (International Crankshaft, Inc.)
- Various other awards for technological innovation (listed in the report)
Reporting Period: 2017-04 to 2018-03
Environmental Metrics
ESG Focus Areas
- Climate Change
- Recycling
- Biodiversity
- Human Rights
- Workforce Diversity
- Community Engagement
- Supply Chain Sustainability
- Governance
Environmental Achievements
- Recycled 99% of 23.29 million tons of by-products, reducing final disposal volume.
- Recycled approximately 210,000 tons of waste plastics (30% of nationwide recycling) and 70,000 tons of discarded tires (10% of nationwide recycling).
- Achieved world's top-class energy efficiency in steelmaking.
- Reduced CO2 emissions per ton of crude steel.
Social Achievements
- Opened 24-hour childcare centers at several worksites.
- Proactively hiring women and non-Japanese employees.
- Implemented various health and safety measures.
- Engaged in community outreach programs, including tree planting and educational initiatives.
- Maintained a high level of employee engagement and satisfaction.
Governance Achievements
- Established a robust corporate governance structure with independent oversight.
- Implemented a comprehensive compliance program.
- Actively engaged with shareholders and investors through various communication channels.
- Implemented the e-Manifest system for enhanced waste management compliance.
Climate Goals & Targets
- Not disclosed
- Achieve 3 million tons CO2 emission reduction by 2020 (Action Plans for a Low-Carbon Society).
- Reduce final disposal volume of by-products by 260,000 tons by 2020.
Environmental Challenges
- Reducing CO2 emissions to meet long-term targets (2050).
- Managing environmental risks associated with air, water, and soil pollution.
- Ensuring sustainable supply chain practices.
- Further enhancing stakeholder engagement.
Mitigation Strategies
- Investing in innovative technologies for CO2 reduction (COURSE50 project).
- Implementing comprehensive environmental risk management strategies.
- Developing and implementing sustainable procurement policies.
- Actively communicating with stakeholders through various channels.
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Thorough compliance
- Product safety and quality
- Consideration of human rights, labor environment, safety, and health
- Environmental conservation
- Information management
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
Transition Risks
- Regulatory changes
- Market shifts
Opportunities
- Development of energy-efficient products and technologies.
Reporting Standards
Frameworks Used: GRI, Null
Certifications: ISO 14001, ISO 9001
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 9 (Industry, Innovation, and Infrastructure)
- Goal 11 (Sustainable Cities and Communities)
- Goal 12 (Responsible Consumption and Production)
- Goal 13 (Climate Action)
- Goal 15 (Life on Land)
- Goal 17 (Partnerships for the Goals)
NSSMC's initiatives contribute to these goals through energy efficiency improvements, sustainable product development, community engagement, and responsible resource management.
Sustainable Products & Innovation
- HRX19™ stainless steel for high-pressure hydrogen environments
- SuperDyma™ electrolytic zinc-coated steel sheet
- ABREX™ Series abrasion-resistant steel plate
- High-strength wires for suspension bridges
- Seamless pipes for geothermal power generation
Awards & Recognition
- Numerous awards from customers, governments, and institutions (listed in the report).
Reporting Period: 2019-04 to 2020-03
Environmental Metrics
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Reduced CO2 emissions by about 12% relative to fiscal 1990 to 94 million tons (preliminary)
- Achieved 100% use of by-product gas
- Achieved 83% use of exhaust heat in steam generation
- Achieved 90% reuse and recycling of water
- Achieved 99% recycling rate of by-products
- Recycled 210,000 tons of waste plastics (equivalent to 32% of Japan’s total plastic waste)
- Reduced final waste disposal to 289,000 tons
- Developed and commercialized ESCAPTM (Energy Saving CO2 Absorption Process) technology
Social Achievements
- Introduced a telework program
- Accident frequency rate of 0.09 (compared to Japan’s steel industry average of 0.89)
- Accident severity rate of 0.08 (vs. 0.21)
- Increased number of women appointed in managerial positions from 48 [21] in 2014 to 123 [39] in 2020
- 81.3% ratio of paid holidays taken in FY2019
- 96.3% ratio of returnees after childcare leave in FY2019
Governance Achievements
- Transitioned to a Company with an Audit & Supervisory Committee in June 2020
- Established a Compliance Consulting Room to receive information on human rights abuses and other compliance issues
Climate Goals & Targets
- Achieve zero-carbon steel by 2100
- Double the number of women in managerial positions by 2020 and triple it by 2025 (compared to 2014)
- Achieve 3 million tons CO2 reduction by FY2020 (JISF target)
- Reduce iron loss by 10% compared to current electrical steel sheets by 2025
Environmental Challenges
- Harsh business environment due to higher raw material prices and lower steel product prices
- Climate change risks, including potential decline in powertrain-related steel demand due to the shift to electric vehicles, and increased operating costs due to carbon pricing
- Supply chain disruptions due to abnormal weather
- Potential water intake restrictions
Mitigation Strategies
- Early transition to an optimal production framework in Japan
- Enhancement of globally-competitive strategic products
- Execution of initiatives to deepen overseas business
- Energy conservation, CO2 emission reduction, and improvement in energy efficiency
- Development of hydrogen reduction steelmaking technology
- Development of technologies to fixate and utilize CO2
- Material sourcing from multiple regions
- Keeping raw material inventories
- BCP measures
- Installation of water storage tanks
Supply Chain Management
Responsible Procurement
- Thorough compliance; product safety, quality, cost, and delivery; technology development; human rights, labor environment, safety and health; environment conservation; information management
Climate-Related Risks & Opportunities
Physical Risks
- Abnormal weather impacting raw material supply and operations
- Natural disasters
Transition Risks
- Decline in powertrain-related steel demand
- Shift to other lightweight materials
- Shift to EAF route
- Increased operating costs due to carbon pricing
Opportunities
- Increased demand for high-performance steel for EVs
- Increased demand for high-strength steel and other materials
- Demand for steel from BF route
- Demand for products and solutions associated with a hydrogen-oriented society
- Demand for energy-efficient products and technology
Reporting Standards
Frameworks Used: GRI Standards, TCFD recommendations
Certifications: ISO 14001, ISO 45001
UN Sustainable Development Goals
- Goal 7 (Affordable and clean energy)
- Goal 9 (Industry, innovation, and infrastructure)
- Goal 11 (Sustainable cities and communities)
- Goal 12 (Responsible consumption and production)
- Goal 13 (Climate action)
- Goal 17 (Partnerships for the goals)
Nippon Steel's initiatives contribute to these goals through eco-friendly steelmaking, sustainable products, community engagement, and technology transfer.
Sustainable Products & Innovation
- High-tensile steel sheets
- Electromagnetic steel sheets
- HRX19TM stainless steel
- Mega NS Hyper BeamTM
- NSafeTM-Hull
Awards & Recognition
- 2019 Steel Sustainability Champion Award
- The 16th LCA Japan Forum Award (Encouragement Award)
- EcoPro Award
- Ichimura Prize
- 2019 MEXT Minister’s Award
- 2019 National Commendation for Invention
- The 8th Monodzukuri Nippon Grand Award
- The 54th JSPMI Award
- The 16th LCA Japan Forum Award
- The 13th IEEJ Prize of Meritorious Deed
- The 66th Okochi Memorial Production Prize
- The 52nd Ichimura Prize in Industry for Distinguished Achievement
- The 52nd Ichimura Prize in Industry against Global Warming for Distinguished Achievement
Reporting Period: 2020-04 to 2021-03
Environmental Metrics
ESG Focus Areas
- Climate Change
- Circular Economy
- Biodiversity
- Safety
- Human Rights
- Diversity & Inclusion
- Supply Chain Management
- Community Engagement
- Corporate Governance
Environmental Achievements
- Achieved a 3.30mn tons-CO2 reduction from BAU in FY2019 (JISF result); achieved the FY2020 target one year ahead
- 100% use of byproduct gas
- 90% use of recycled water
- Reduced final disposal amount to 229,000 tons
- Recycled 210,000 tons of plastic waste
- Acquired the “Eco-Leaf” environmental labels for three products
Social Achievements
- Zero fatal accidents for Nippon Steel employees
- Accident frequency rate of 0.09 (vs. industry average of 0.87)
- Increased number of women in managerial positions to 45
- 31% of office staff and 12% of operators were women in hiring (FY2019-2021 average)
- Launched in-house childcare centers
- Implemented programs to support work-life balance
Governance Achievements
- Transitioned to a Company with an Audit & Supervisory Committee
- Outside Directors account for more than one-third of the Board
- Established a whistleblower system
- Strengthened internal control and risk management systems
Climate Goals & Targets
- Achieve carbon neutrality by 2050
- Reduce CO2 emissions by 30% compared to 2013 by 2030
- Increase the number of female employees in management positions
- Reduce final waste disposal amount to 263,000 tons by 2025
Environmental Challenges
- Reducing CO2 emissions in steelmaking
- Securing stable procurement of hydrogen
- Developing CCUS technology
- Managing risks related to climate change, air, water, and waste
- Maintaining high safety standards
- Promoting diversity and inclusion
- Ensuring responsible supply chain management
Mitigation Strategies
- Announced the Nippon Steel Carbon Neutral Vision 2050
- Established a Zero-Carbon Steel Project
- Investing in improving the capacity and quality of electrical steel sheets
- Developing breakthrough technologies for zero-carbon steel
- Implementing various environmental risk management measures
- Promoting safety training and risk assessments
- Implementing diversity and inclusion initiatives
- Establishing a responsible procurement policy
- Strengthening internal control and risk management systems
Supply Chain Management
Responsible Procurement
- Compliance with laws and regulations
- Consideration of environmental conservation
- Elimination of racial discrimination and human rights abuses
- Confidentiality and thorough information management
Climate-Related Risks & Opportunities
Physical Risks
- Abnormal weather impacting raw material supply and operations
Transition Risks
- Decline in demand for certain steel products due to electrification and shift to lightweight materials
- Increased operating costs due to carbon pricing
Opportunities
- Increased demand for high-performance steel for EVs and hydrogen infrastructure
- Opportunities in providing solutions for national resilience
Reporting Standards
Frameworks Used: GRI Standards, TCFD Recommendations
Certifications: ISO 14001, ISO 45001, Eco-Leaf
Sustainable Products & Innovation
- High-efficiency electrical steel sheets
- Mega NS Hyper Beam™
- HRX19™ stainless steel
- NSafe™-AutoConcept
- NSafe™-Hull
Awards & Recognition
- Good Design Award
- Award for Excellence in Corporate Disclosure
- Japan Open Innovation Grand Prize
- Award for World Class TMP Achievement
- Iwatani Naoji Memorial Award
- Ichimura Prize in Industry for Distinguished Achievement
- Top 100 Global Innovator
- MEXT Minister’s Award
- Equipment Supplier of the Year
Reporting Period: 2021-04 to 2022-03
Environmental Metrics
ESG Focus Areas
- Climate Change
- Circular Economy
- Environmental Risk Management
- Biodiversity
- Human Rights
- Diversity & Inclusion
- Safety
- Disaster Prevention
- Quality
- Supply Chain Management
- Community Relations
- Corporate Governance
Environmental Achievements
- Acquired Eco-Leaf environmental labels for 35 products (over 80% of products)
- Reduced final waste disposal by 263,000 tons
- 100% use of byproduct gas
- Approximately 90% reuse of recycled water
- Reduced VOC emissions by 30% vs. FY2000
- Reduced Benzene emissions to below voluntary targets
- Developed and commercialized ESCAPTM (Energy Saving CO2 Absorption Process)
- Developed VivaryTM iron supply units for seaweed bed regeneration
Social Achievements
- Opened in-house childcare centers at seven manufacturing bases
- Increased number of women in managerial positions to 55 (as of April 2022)
- Achieved 77.8% utilization rate of paid leave days
- Maintained accident frequency rate of 0.08 (vs. industry average of 0.90)
- Zero serious disaster-related accidents
Governance Achievements
- Established Green Transformation Promotion Committee and Green Transformation Development Sector
- Established a whistleblower system
- More than one-third of Board of Directors are outside directors (including one female)
Climate Goals & Targets
- [object Object]
- Develop technology to produce high-grade steel using large EAFs and direct reduced iron with hydrogen by 2030
- Reduce CO2 emissions by 30% compared to 2013 by 2030
Environmental Challenges
- Developing new production processes to radically reduce CO2 emissions
- Securing stable procurement of hydrogen at a low cost
- Addressing workforce shortage in domestic logistics
- Water leakage exceeding wastewater standards from East Nippon Works Kimitsu Area
Mitigation Strategies
- Investing ¥123 billion in improving capacity and quality of electrical steel sheets
- Constructing a next-generation hot strip mill
- Participating in various hydrogen-related councils and collaborating with overseas resource majors
- Building a practical training ship, Reimei, to address workforce shortage
- Investigating the cause of water leakage and implementing preventive measures
Supply Chain Management
Responsible Procurement
- Compliance with laws and regulations
- Consideration of environmental conservation
- Elimination of racial discrimination and human rights abuses
- Management standards for 16 toxic chemical substances
Climate-Related Risks & Opportunities
Physical Risks
- Abnormal weather suspending raw material suppliers’ operations
- Abnormal weather suspending operations and shipments
- Flooding of steelworks
Transition Risks
- Shift to other lightweight materials
- Increased cost due to carbon pricing
- Higher needs for decarbonization in steelmaking process
Opportunities
- Increased demand for high-performance steel products
- Increased demand for low-carbon steel
- Increased demand for eco-friendly technology and products
- Increased demand for products supporting renewable energy and hydrogen
Reporting Standards
Frameworks Used: GRI Standards, TCFD Recommendations
Certifications: ISO 14001, ISO 45001
Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 9 (Industry, Innovation, and Infrastructure)
- Goal 11 (Sustainable Cities and Communities)
- Goal 12 (Responsible Consumption and Production)
- Goal 13 (Climate Action)
- Goal 8 (Decent Work and Economic Growth)
The report details how various initiatives contribute to these SDGs.
Sustainable Products & Innovation
- Eco Products (high-tensile, lightweight, energy-efficient steel sheets)
- HYDEREXELTM stainless steel for high-pressure hydrogen environments
- Reduced-process steel bars and wires
- Blast furnace cement
Awards & Recognition
- 2021 Innovation Award from Schneider Electric
- 2021 Award for Excellence in Corporate Disclosure
- The 68th Okochi Prize
- Environmentally Sustainable Company at the 3rd ESG Finance Awards Japan
- The 54th Ichimura Prize in Industry for Distinguished Achievement and Ichimura Global Environmental Prize in Industry for Distinguished Achievement
- 2021 MEXT Minister’s Award
- 2022 Steel Sustainability Championship
- Red Dot Design Award 2022
- 2022 National Commendation for Invention
Reporting Period: 2022-04 to 2023-03
Environmental Metrics
ESG Focus Areas
- Safety
- Environment (including climate change)
- Disaster Prevention
- Quality
- Human Resources
- Diversity & Inclusion
- Community Relations
- Compliance
Environmental Achievements
- Reduced energy consumption to 926 PJ and energy-derived CO2 emissions to 78 million tons in FY2022 (provisional values), due to energy conservation initiatives and decreased production.
- Reduced final waste disposal to 271,000 tons in FY2022.
- Recycled 200,000 tons of packaging/container plastic waste (equivalent to 30% of Japan’s total plastic waste).
- Acquired J-Blue Credit certification for 49.5 t-CO2 of CO2 absorbed and fixed (blue carbon) over five years.
- Commercial operation of a new electric furnace in the Setouchi Works Hirohata Area (High-grade steel production in large-size EAFs).
Social Achievements
- Increased the number of female employees in management positions to 65 (non-consolidated) in FY2022, aiming to at least double or triple this number by 2025 from 36 in 2020.
- Achieved an 82.9% utilization rate of paid leave days in FY2022.
- Provided 800,000 training hours (28 hours/person/year) in FY2022.
- Launched various initiatives to improve employee engagement.
Governance Achievements
- Reduced the number of directors to 15.
- Adopted the Executive Management System.
- Established the Nomination and Compensation Advisory Committee.
- Increased the number of Outside Directors to five (including one female director).
Climate Goals & Targets
- Achieve carbon neutrality by 2050.
- Achieve a global crude steel production capacity of 100 million tons.
- Achieve consolidated business profit of 1 trillion yen.
- Achieve ROS of 10% and ROE of 10% by FY2025.
- Reduce total CO2 emissions by 30% by 2030 (vs. 2013 baseline).
Environmental Challenges
- Gradual decrease in domestic steel demand.
- Increasing challenges in exporting steel products.
- Market volatility in raw material and product prices.
- Intensifying competition.
- Need to achieve carbon neutrality.
- Declining working-age population.
Mitigation Strategies
- Rebuilding domestic steel business through concentrated production, sophisticated order mix, facility renewal, and margin improvement in direct contract sales.
- Deepening and expanding overseas steel business through capacity expansion and acquisitions.
- Implementing the Carbon Neutral Vision 2050 through breakthrough technologies (hydrogen injection into blast furnaces, hydrogen direct reduction of iron, high-grade steel production in large-size EAFs), and CCUS.
- Promoting digital transformation strategies to improve efficiency and customer responsiveness.
- Evolving into a further vertically-integrated business structure.
- Investing in human capital and public relations to secure human resources.
Supply Chain Management
Responsible Procurement
- Securing raw materials from invested mines (currently approx. 20% of iron ore and coking coal).
Climate-Related Risks & Opportunities
Physical Risks
- Abnormal weather affecting raw material suppliers’ operations
- Natural disasters disrupting operations and shipment
Transition Risks
- Advance in electric vehicles
- Shift to other lightweight materials
- Shift to low-carbon steel
- Higher needs for energy-efficient products and technology
- Higher needs for products and solutions associated with a society based on renewable energy and hydrogen
- Increased cost caused by adoption of carbon pricing
Opportunities
- Demand growth for high-performance steel products for EVs
- Demand growth for high-strength steel
- Demand growth for low-carbon steel
- Demand growth for eco-friendly technology
- Demand growth for products supporting renewable energy and hydrogen societies
Reporting Standards
Frameworks Used: International Integrated Reporting Framework, GRI Standards, ISO 26000
Certifications: ISO 45001
UN Sustainable Development Goals
- Goal 7 (Affordable and clean energy)
- Goal 9 (Industry, innovation, and infrastructure)
- Goal 11 (Sustainable cities and communities)
- Goal 12 (Responsible consumption and production)
- Goal 13 (Climate action)
- Goal 8 (Decent work and economic growth)
Nippon Steel's initiatives contribute to these SDGs through various ESG activities.
Sustainable Products & Innovation
- NSCarbolex™ Neutral and Solution
- High-efficiency electrical steel sheets
- High-tensile steel sheets
- HYDREXEL™ stainless steel
Awards & Recognition
- 69th Okochi Prize
- 55th Ichimura Prize in Industry for Distinguished Achievement
- 2023 MEXT Minister’s Award
- 9th Monodzukuri Nippon Grand Award
- 2022 IEC1906 Award
- Small Cargo Vessel Award of the Ship of the Year 2019
Reporting Period: 2023-04 to 2024-03
Environmental Metrics
ESG Focus Areas
- Human resource management
- Environmental management
- Corporate governance
- Risk management
- Solving social issues through IT
Environmental Achievements
- Reductions of 18,465 t-CO2 in FY2023 (Scope 1+2)
Social Achievements
- 97% rate of childcare leave uptake by male employees in FY2023
- Improved employee engagement scores across multiple key areas in FY2023
Governance Achievements
- Endorsement of the TCFD recommendations
- Established a D&I and Human Rights Committee
Climate Goals & Targets
- Achieve carbon neutrality (net zero emissions) by 2050
- 50% reduction in Scope 1+2 GHG emissions by 2030
- Achieve carbon neutrality (net zero emissions) by 2050
- Increase the number of women in core management positions to more than double the current number by FY2025
- Maintain a rate of at least 30% women among new graduate hires
Environmental Challenges
- Shortage of IT personnel
- Rapid changes in the IT industry
- Climate change risks (extreme weather, power outages)
- Risks related to decarbonization legislation (increased costs)
Mitigation Strategies
- Investing in human capital development
- Implementing work style reforms
- Improving data center efficiency and renewable energy use
- Developing alternative sourcing strategies
- Strengthening risk management systems
Supply Chain Management
Responsible Procurement
- Purchasing green products
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather
- Flooding
- Power outages
Transition Risks
- Increased electricity costs due to carbon pricing
- Increased renewable energy procurement costs
- Stricter regulations on fossil fuels
Opportunities
- Increased demand for GHG emission measuring and management systems
- Increased demand for effective IT systems and DX
- Increased demand for decarbonization of DC facilities
Reporting Standards
Frameworks Used: GRI Standards, SASB, TCFD
Certifications: ISO 14001
Sustainable Products & Innovation
- Digital workplace solutions
- Electronic contract services
- Cloud services
Awards & Recognition
- PRIDE Index Gold certification (2 consecutive years)
- Certified Health & Productivity Management Outstanding Organization