Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• Compliance
• Risk Management

Environmental Achievements

• Reduced annual emissions (converted to CO2) per net sales by 29% compared to fiscal 2002 levels.
• Achieved 21% reduction in waste generation compared to fiscal 2000 levels.
• 100% use of Eco-glass in new optical designs for consumer products and 96.5% for industrial products.
• 100% use of lead-free printed circuit boards for electronic components in consumer products and 67% in industrial products.

Social Achievements

• Established Nikon Tsubasa Inc. to support employment of disabled individuals.
• Achieved 1.86% employment rate for disabled individuals, exceeding the statutory 1.8% target.
• Introduced the “Active Senior Employee System” for continued employment of employees aged 60 and above.
• Implemented various campaigns to improve work-life balance and reduce stress.

Governance Achievements

• Established the CSR Committee in January 2006 to consolidate and promote CSR activities.
• Established the Risk Management Committee in April 2006 to manage and respond to risks.
• Established the Internal Audit Department in 2005 to monitor internal controls.
• Implemented the Code of Conduct Hotline for anonymous reporting of ethical concerns.

Climate Goals & Targets

Environmental Challenges

• Overheating of EN-EL3 Li-ion rechargeable batteries (addressed through product recall).
• Insufficient information sharing and skill variations among customer support individuals.
• Need to improve green procurement practices among suppliers.

Mitigation Strategies

• Voluntarily recalled EN-EL3 batteries to prevent fire risks.
• Implemented measures to establish an appropriate in-house structure and system for handling customer inquiries.
• Held orientation sessions for vendors to promote understanding of Nikon Green Procurement Standards.

Supply Chain Management

Responsible Procurement

• Green procurement standards
• Fair and honest procurement practices

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, Japanese Ministry of the Environment guidelines

Certifications: ISO 9001, ISO 14001 (in progress)

Sustainable Products & Innovation

• Eco-glass

Awards & Recognition

• Top company for after-service satisfaction in the Digital Camera Section of Nikkei Business magazine's 2006 After Service Survey

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Compliance
• Risk Management
• Environmental Management
• Social Contribution
• Respect for Human Rights

Environmental Achievements

• Achieved zero emissions in 12 domestic business locations.
• Reduced CO2 emissions per unit of sales by 20% compared to 2002.
• Maintained 100% eco-glass usage in consumer products.
• Achieved a 98% eco-glass ratio in all outgoing glass materials.
• Increased lead-free solder usage in new circuit boards.

Social Achievements

• Established a system for supporting the return to work of employees on sick leave.
• Introduced a system for continued employment after retirement.
• Established Nikon Tsubasa Workshop, a special subsidiary employing people with intellectual disabilities.
• Consistently ranked #1 in digital camera after-sales service satisfaction in Japan.

Governance Achievements

• Established a CSR committee in 2006 to integrate CSR activities.
• Revised the Nikon Code of Conduct in 2007.
• Established a risk management committee in 2006.
• Implemented an ethics hotline.

Climate Goals & Targets

Environmental Challenges

• Meeting the increasing demands of environmental regulations (RoHS, etc.)
• Balancing economic growth with environmental sustainability.
• Waste reduction despite increased production.
• Global expansion of CSR activities.

Mitigation Strategies

• Developed and implemented the Nikon Product Assessment system.
• Developed and implemented the Nikon Green Procurement Standards.
• Established a comprehensive environmental management system (EMS) based on ISO 14001.
• Implemented various initiatives to reduce energy consumption and CO2 emissions.
• Actively engaged in stakeholder communication and feedback.

Supply Chain Management

Supplier Audits: Approximately 320 suppliers participated in environmental management system surveys in 2007.

Responsible Procurement

• Nikon Green Procurement Standards (2005)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Guidelines 2002, Ministry of the Environment's Environmental Report Guidelines (2003)

Certifications: ISO 14001 (multiple locations)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-glass
• Lead-free solder
• Hexavalent chromium-free surface treatments

Awards & Recognition

• Nikon Inc. received the Manufacturer Service Support Award from NAPET for six consecutive years.
• NSR-S609B received the Nikkei Excellent Product/Service Award.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance
• Social
• Product Quality and Safety
• Supply Chain Responsibility

Environmental Achievements

• Reduced CO2 emissions by 7.1% compared to 2007 (domestic operations), 6% reduction in CO2 emissions per unit of sales compared to 2006 (major Asian production companies)
• Improved energy efficiency of new products by an average of 42%
• Maintained 100% eco-glass ratio in consumer products and 97.4% in industrial products
• Achieved 100% lead-free solder in new consumer electronics and 97% in new industrial electronics
• Phased out HCFC refrigerants in semiconductor and LCD exposure equipment

Social Achievements

• Implemented a dual-track personnel system to support employee career development
• Launched a diversity blog to promote inclusivity
• Established a new Nikon Tsubasa Kobo facility for employees with intellectual disabilities
• Increased the re-employment rate of retirees to 61%
• Conducted employee surveys on CSR and climate change awareness

Governance Achievements

• Strengthened internal control systems in compliance with the Japanese SOX Act (J-SOX)
• Established a global compliance system for overseas subsidiaries
• Implemented a comprehensive risk management system
• Established an ethics hotline

Climate Goals & Targets

Environmental Challenges

• Economic slowdown impacting business operations
• Insufficient employee engagement in environmental initiatives
• Need for improved supply chain CSR practices
• Maintaining high quality and safety standards in a globalized manufacturing environment

Mitigation Strategies

• Continued focus on CSR despite economic challenges
• Implemented employee awareness campaigns and training programs on CSR and climate change
• Developed and implemented the Nikon Procurement Partner CSR Guidelines
• Strengthened quality control systems and processes

Supply Chain Management

Responsible Procurement

• Nikon Procurement Partner CSR Guidelines
• Nikon Green Procurement Guidelines

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3, Japanese Ministry of the Environment's Environmental Reporting Guidelines (2007)

Certifications: ISO 14001

Sustainable Products & Innovation

• Eco-glass lenses
• Lead-free solder
• Energy-efficient products

Awards & Recognition

• TIPA Awards
• Camera Grand Prix
• EISA Awards
• Good Design Award
• Intel SCQI Award
• NAPET Best Support Award
• PMA Hall of Fame Award

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Compliance
• Human Rights and Labor Practices
• Diversity
• Social Contribution

Environmental Achievements

• Reduced CO2 emissions by 14.7% (domestic) and 14% (Asia) compared to 2007.
• Achieved 99.4% recycling rate and 0.23% final disposal rate at Nikon's domestic facilities.
• Lead-free solder used in all new circuit boards.
• Lead and arsenic-free eco-glass used in almost all products.

Social Achievements

• Launched employee well-being program (TABLE FOR TWO) in employee cafeterias and vending machines.
• Implemented global human rights training for all employees (91.4% completion rate).
• Expanded the Nikon Shanti scholarship program in Thailand.

Governance Achievements

• Established a Remuneration Deliberation Committee with external experts.
• Revised Nikon Code of Conduct for global consistency.
• Strengthened internal control systems.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the Great East Japan Earthquake.
• Power shortages.
• Meeting evolving global chemical regulations (REACH, RoHS).
• Maintaining high levels of compliance across global operations.
• Improving diversity and inclusion.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Implemented energy-saving measures.
• Strengthened BCP and crisis management.
• Provided training and support to suppliers on environmental management systems.
• Implemented global compliance training.
• Launched diversity and inclusion initiatives, including management training.

Supply Chain Management

Supplier Audits: 33 supplier audits (including 1 overseas)

Responsible Procurement

• Nikon Green Procurement Standards
• Environmental Management System (EMS) requirements for suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Evolving environmental regulations

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G3, ISO 26000, UN Global Compact

Certifications: ISO 14001

Sustainable Products & Innovation

• Eco-glass
• Energy-efficient products

Awards & Recognition

• UN Global Compact Notable COP (2008, 2009)
• Good Practice selection by UN Global Compact Japan Network (2009)
• Meseana Award 2010 (Nikon Salon)

Environmental Metrics

ESG Focus Areas

• Environmental Management Enhancement and Promotion
• Compliance Activities
• Respect for Human Rights and Labor Practices, and Promotion of Diverse Employee Activities
• Social Contribution Activities
• Supply Chain CSR Promotion

Environmental Achievements

• Reduced CO2 emissions by 12.8万トン-CO2 (Nikon and domestic group production companies), achieving the target of 13.6万トン-CO2 or less.
• Maintained 2011 March period emission levels for waste reduction (Nikon and domestic group production companies).
• Achieved 100% compliance with RoHS Directive for target products.
• Introduced a vaporless air conditioning system at Tochigi Nikon Precision, reducing CO2 emissions.

Social Achievements

• Launched a mentoring program for women to support their career development.
• Implemented corporate culture training to improve employee motivation and unity.
• Conducted monitoring surveys of 62 group companies to identify human rights and labor practice issues.
• Supported disaster relief efforts in the Tohoku region through employee volunteer activities and the "Junior High School Photobook Project".

Governance Achievements

• Established a remuneration deliberation committee with external experts.
• Strengthened internal control systems and conducted internal audits.
• Implemented compliance training for employees in 42 companies (excluding Europe).

Climate Goals & Targets

Environmental Challenges

• Supply chain challenges related to conflict minerals and responsible paper sourcing.
• Difficulties in ensuring consistent CSR understanding and implementation across global operations.
• Maintaining high levels of safety and health across all global operations.
• Achieving gender balance in employee numbers and management positions.

Mitigation Strategies

• Established cross-functional project teams to address conflict minerals and developed a paper procurement policy.
• Strengthened CSR promotion systems in China/Hong Kong and Europe, with plans for expansion to other regions.
• Implemented safety and health management systems, including mental health support programs and risk assessments.
• Implemented various initiatives to promote women's advancement, including mentoring programs and targeted recruitment.

Supply Chain Management

Supplier Audits: 150 audits conducted in 2013 (domestic and international suppliers)

Responsible Procurement

• Nikon Procurement Partner CSR Guidelines
• Nikon Green Procurement Standards
• Conflict Minerals Response Policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Guidelines (G3.1), Ministry of the Environment's Environmental Reporting Guidelines (2012 edition), ISO 26000:2010

Certifications: ISO 14001 (Environmental Management), ISO 9001 (Quality Management)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-glass lenses, lead-free solder, and energy-efficient products.

Awards & Recognition

• 2012 Golden Bee Corporate Social Responsibility Award (China)
• 2012 After-Sales Service Satisfaction Ranking (Nikkei Business)
• 2012 IR Excellent Company Award
• 2013 Nadeshiko Brand (METI and TSE)

Environmental Metrics

ESG Focus Areas

• Expansion and promotion of environmental management
• Implementation of compliance activities
• Respect for human rights and labor practices, and promotion of diversity in the workforce
• Promotion of social contribution activities
• Promotion of CSR activities in the supply chain

Environmental Achievements

• Total CO2 emissions from Nikon Corporation and Group manufacturing companies in Japan: 124 thousand tons (achieved target of 135 thousand tons)
• CO2 emissions per unit of real output from Group manufacturing companies outside Japan: Reduced by 7.5% from the baseline emissions
• Waste from Nikon Corporation and Group manufacturing companies in Japan: Maintained levels of the year ended March 31, 2011 (3,796 tons)
• Improved average power consumption efficiency for all models of newly released products (e.g., D3300 power consumption efficiency improved by 25% compared to D3200)

Social Achievements

• Achieved target of increasing the rate of female employees to at least 10% of the total number (permanent employees and non-regular staff) by the end of March 2014
• Achieved target of doubling the number of female managers from 22 as of the end of March 2010 to 44 by the end of March 2015 (reached 47)
• Implemented a mentor system for career development of 20 female employees
• Organized 17 rounds of employee volunteer activities in disaster-affected areas

Governance Achievements

• Established the Nikon Anti-Bribery Policy in April 2014
• Revised the Nikon CSR Charter in February 2013 to clarify corporate social responsibility in the supply chain
• Implemented compliance education through e-learning and group training

Climate Goals & Targets

Environmental Challenges

• Increasingly important to develop CSR activities at Group companies outside Japan while working with different social factors
• Differences in languages and legal systems, geographical distances, and varying levels of CSR awareness at individual Group companies
• Need to check its overall health and safety management standards in accordance with an increase in the number of Group bases outside Japan
• Large differences between the numbers of male and female employees and managers in Japan

Mitigation Strategies

• Established systems to enable three holding companies in Asia-Oceania, Europe and the Americas to supervise and promote CSR in each region
• Developed regional management and promotion framework
• Established CSR sections at holding companies
• Conducted employee awareness surveys to gauge the levels of compliance awareness
• Formulated a standardized regional code of conduct in Europe
• Implemented measures to help female employees reach their potential
• Introduced a mentor system
• Participated in joint job fairs for women and held events for women

Supply Chain Management

Supplier Audits: 36 on-site inspections in Japan; 12 CSR surveys outside Japan

Responsible Procurement

• Nikon Procurement Partners' CSR Guidelines
• Paper Procurement Policy
• Nikon Green Procurement Standards

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1, Japanese Ministry of the Environment's Environmental Reporting Guidelines (2012), ISO 26000:2010

Certifications: ISO 14001 (multiple locations), OHSAS 18001 (multiple locations)

Third-party Assurance: Independent practitioner's assurance provided

Sustainable Products & Innovation

• Lead- and arsenic-free glass
• Energy-efficient products (e.g., D3300 camera)

Awards & Recognition

• FTSE4Good Index Series
• Morningstar Socially Responsible Investment Index (MS-SRI)
• ECPI Ethical Index Global
• Ethibel EXCELLENCE
• Nadeshiko Brand (2 consecutive years)

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Resource Circulation
• Preventing Pollution and Conserving Ecosystems
• Strengthening Supply Chain Management
• Respecting Human Rights
• Diversity and Inclusion
• Employees' Health and Safety
• Thorough Compliance
• Strengthening Corporate Governance
• Strengthening Risk Management
• Creating Social Value Through Core Technologies
• Ensuring Trustworthiness by Maintaining and Increasing Quality

Environmental Achievements

• Reduced greenhouse gas emissions from business activities by 1.3% year-on-year for the entire Nikon Group
• Achieved a 7.8% renewable energy share of electricity used for business activities
• Reduced total amount of waste generated from operations by 2.2% year-on-year
• Reduced water withdrawal year-on-year by 2.6%
• Improved water reuse rate year-on-year by 0.6%
• Achieved Level S in zero emissions at Nikon and Group manufacturing companies in Japan
• Achieved Level 1 in zero emissions at Group manufacturing companies in China

Social Achievements

• Launched joint research combining Nikon and Oxford Nanopore Technologies Limited’s technologies
• Increased the ratio of females recruited through the regular annual recruitment process to 31.2%
• Increased the ratio of female managers to 7.2% as of March 31, 2022
• Implemented human rights education for employees in all regions of the world with a 93% participation rate in Japan
• Completed corrective actions for all critical procurement partners to comply with CSR procurement management standards

Governance Achievements

• Revised the content of documents used to disseminate the Nikon Code of Conduct and implemented related education
• Reviewed the latest information on key anti-bribery laws and regulations
• Reinforced the reporting and consulting system through compliance education and an employee awareness survey

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to soaring resource prices, tightness in material procurement, and logistics disruptions
• Increased Scope 3 emissions due to recovery in production volumes
• Need to further reduce greenhouse gas emissions to achieve carbon neutrality by 2051
• Need to further strengthen suppliers’ CSR management systems
• Need to prevent recurrence of incidents like the discovery of restricted substances in product components

Mitigation Strategies

• Established a Total Supply Chain Management system to visualize the supply chain and manage risks
• Implemented energy-saving measures and adopted renewable energy
• Promoted modal shifts in distribution to reduce greenhouse gas emissions
• Provided assistance for improvements at suppliers failing to achieve compliance with CSR standards
• Revised the management system for hazardous chemical substances contained in products
• Re-educated relevant employees regarding the REACH regulation and strengthened processes

Supply Chain Management

Supplier Audits: 211 critical procurement partners assessed; 15 new suppliers assessed

Responsible Procurement

• Nikon CSR Procurement Standards
• Responsible Minerals Sourcing Policy
• Nikon Basic Green Procurement Policy
• Nikon Green Procurement Standards

Climate-Related Risks & Opportunities

Physical Risks

• Disruption of supply/operations or reduced asset values due to weather-related disasters
• Increased electricity costs due to higher cooling loads
• Constraints on water resources due to changes in precipitation patterns

Transition Risks

• Increased operating costs due to carbon pricing policies
• Higher electricity prices due to changes in national energy policies
• Reduced sales opportunities due to failure to meet customers' decarbonization requirements
• Damage to reputation due to inadequate response to decarbonization

Opportunities

• Increased sales and higher stock prices due to rising evaluation for decarbonization technologies
• Reduced future carbon taxes and energy costs due to efficiency gains

Reporting Standards

Frameworks Used: GRI Standards, TCFD Recommendations

Certifications: ISO 14001, ISO 9001

Third-party Assurance: TJ

UN Sustainable Development Goals

• Goal 7
• Goal 9
• Goal 12
• Goal 13

Initiatives contribute to these goals through decarbonization, resource circulation, responsible supply chain management, and biodiversity conservation

Sustainable Products & Innovation

• Eco-friendly products
• Z 9 mirrorless camera (weight and volume reduction)
• Lasermeister 102A optical processing machine (use of titanium alloy and recycled powders)

Awards & Recognition

• S&P Global Sustainability Awards 2022 Bronze Class

Environmental Metrics

ESG Focus Areas

• Creating Social Value Through Core Technologies
• Ensuring Trustworthiness by Maintaining and Increasing Quality

Environmental Achievements

• Riblet processing on aircraft, reducing fuel consumption by approximately 2% for ANA's fleet, resulting in an estimated annual CO2 reduction of 300,000 tons and fuel cost savings of approximately 8 billion yen.

Social Achievements

• Development and deployment of ultra-compact smart cameras (LuFact series) for automation in manufacturing, contributing to labor savings and increased productivity.
• Implementation of portable volumetric video capture system for educational purposes, fostering children's powers of discovery and improving learning motivation.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: 88.4% of 84 companies

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Riblet processing technology
• LuFact series ultra-compact smart cameras
• Portable volumetric video capture system

Awards & Recognition

• Not disclosed