Climate Change Data

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

Total Carbon Emissions:93.5 million tCO2e/year (FY2012)
Total Energy Consumption:1,086 PJ/year (FY2012)
Water Consumption:6 billion m3/year (freshwater)
Waste Generated:310,000 tons/year (final disposal)

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

Long-term Goals:
  • Achieve world’s highest level in resources and energy efficiency in steelmaking by 2050.
Medium-term Goals:
  • Commercialize COURSE 50 technology by around 2030.
Short-term Goals:
  • 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

Water Consumption:0.62 billion m3/year
Waste Generated:230,000 tons/year

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

Medium-term Goals:
  • 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

Total Carbon Emissions:88 million tons of CO2 in FY2017 (preliminary)
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:1,018 PJ (NSSMC and affiliated companies)
Water Consumption:approximately 6 billion m3/year
Waste Generated:230,000 tons/year (final disposal)
Carbon Intensity:Reduced CO2 emissions per ton of crude steel.

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

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve 3 million tons CO2 emission reduction by 2020 (Action Plans for a Low-Carbon Society).
Short-term Goals:
  • 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

Total Carbon Emissions:94 million tons (preliminary)
Scope 3 Emissions:17,632 thousand tons-CO2
Total Energy Consumption:1,089 PJ
Water Consumption:6.5 billion m3
Waste Generated:289,000 tons
Carbon Intensity:2.06 t-CO2/ton in FY2019

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

Long-term Goals:
  • Achieve zero-carbon steel by 2100
Medium-term Goals:
  • 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)
Short-term Goals:
  • 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

Total Carbon Emissions:76 million tons (preliminary)
Scope 1 Emissions:62,860 thousand tons-CO2
Scope 2 Emissions:10,846 thousand tons-CO2
Scope 3 Emissions:14,379 thousand tons-CO2 + other indirect emissions
Total Energy Consumption:896 PJ
Water Consumption:5.9 billion m3
Waste Generated:229,000 tons

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

Long-term Goals:
  • Achieve carbon neutrality by 2050
Medium-term Goals:
  • Reduce CO2 emissions by 30% compared to 2013 by 2030
  • Increase the number of female employees in management positions
Short-term Goals:
  • 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

Total Carbon Emissions:87 million tons CO2e (preliminary)
Scope 1 Emissions:1071292 thousand tons CO2
Scope 2 Emissions:12478 thousand tons CO2
Scope 3 Emissions:15994 thousand tons CO2
Total Energy Consumption:1025 PJ
Water Consumption:6.0 billion m3
Waste Generated:307,000 tons

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

Long-term Goals:
  • [object Object]
Medium-term Goals:
  • Develop technology to produce high-grade steel using large EAFs and direct reduced iron with hydrogen by 2030
Short-term Goals:
  • 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

Total Carbon Emissions:78 million t-CO2 (FY2022, preliminary)
Scope 3 Emissions:12,939 thousand t-CO2 (FY2022)
Total Energy Consumption:926 PJ (FY2022)
Water Consumption:approx. 600 mn m³/yr (non-consol.)
Waste Generated:271,000 tons (FY2022)
Carbon Intensity:1.92 t-CO2/t (FY2022)

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

Long-term Goals:
  • Achieve carbon neutrality by 2050.
Medium-term Goals:
  • 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.
Short-term Goals:
  • 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

Total Carbon Emissions:18,465 tCO2e/year (Scope 1+2)
Scope 1 Emissions:94 tCO2e/year
Scope 2 Emissions:18,371 tCO2e/year
Scope 3 Emissions:297,735 tCO2e/year

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

Long-term Goals:
  • Achieve carbon neutrality (net zero emissions) by 2050
Medium-term Goals:
  • 50% reduction in Scope 1+2 GHG emissions by 2030
  • Achieve carbon neutrality (net zero emissions) by 2050
Short-term Goals:
  • 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