Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Conservation
• Social Responsibility
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 20.0% (domestic) and 6.3% (overseas) from FY2009 levels on a basic unit basis.
• Reduced waste disposal volume by 7.1% (domestic) and 6.4% (overseas) from FY2009 levels on a basic unit basis.

Social Achievements

• High employee satisfaction survey response rate (86%).
• Continued CSR correspondence education programs, including introduction to newly established sites.
• Planted 3,400 trees in Thailand, the Philippines, and China.
• CSR audits completed at numerous supplier factories in Thailand, Philippines, and China.
• Participation in Plan Sponsorship program supporting children in developing countries.

Governance Achievements

• Established CSR Charter based on UN Global Compact and EICC principles.
• Implemented CSR Management System at main Japanese and overseas business sites.
• Active IR activities, including presentations for individual investors.
• Received awards for excellence in corporate disclosure.

Climate Goals & Targets

Environmental Challenges

• Great East Japan Earthquake and large-scale flooding in Thailand disrupted operations and supply chains.
• High concentration of HDD motor production in Thailand (62%).
• High dependence on HDD motors for sales and earnings.
• Risks associated with sourcing rare earth minerals.

Mitigation Strategies

• Diversification of production risks by spreading HDD motor production across Thailand, China, and the Philippines.
• Diversification of purchasing risks through multiple sourcing and review of Business Contingency Plan (BCP).
• Diversification of customer and regional risks through business portfolio transformation ('Vision 2015') and M&A activities.
• Development of rare-earth-free SR motors.

Supply Chain Management

Supplier Audits: CSR audits completed at 32 supplier factories in Thailand, 20 in the Philippines, and 21 in China.

Responsible Procurement

• CSR procurement policy; 'Nidec Supply Chain CSR Promotion Guidebook'; Quarterly Business Reviews (QBRs) with suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (earthquakes, flooding)

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, OHSAS 18001

Sustainable Products & Innovation

• High-efficiency motors; rare-earth-free SR motors

Awards & Recognition

• Excellent Supplier of the Year and Excellent Quality Supplier of the Year from LG Electronics (Huizhou)
• Awards for Excellence in Corporate Disclosure

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 23.8% (domestic) and 16.6% (overseas) from the FY2009 level on a basic unit basis. Reduced final waste disposal volume by 0.9% (domestic) and 6.4% (overseas) from the FY2009 level on a basic unit basis.
• Successful completion of the third Mid-term Environmental Conservation Plan, exceeding targets.

Social Achievements

• Introduced a new HR system to evaluate employees based on absolute criteria and provide remuneration that matches duties and performance.
• Launched an “employee challenge” program and correspondence education system to support employee self-improvement.
• Number of Nidec shareholders exceeded 50,000.

Governance Achievements

• Established Nidec Corporation CSR Charter in 2008, establishing a company-wide CSR Committee and promoting CSR activities.
• Introduced an international standard-based CSR management system to major domestic and overseas facilities, aiming for 80% coverage by FY2015.

Climate Goals & Targets

Environmental Challenges

• Expanding the CSR management area to encompass rapidly growing global business due to M&A activities.
• Need to improve on-site audit rate of business partners in China for CSR procurement.
• Minimizing environmental burden and adapting the environmental management system to rapid changes in the business environment.

Mitigation Strategies

• Aiming to raise CSR awareness in all Nidec Group companies and expand the CSR management area to 70% by the end of FY2014 and 80% by FY2015.
• Increasing on-site audits of business partners in China (from 4 in FY2012 to 12 in FY2013).
• Implementing ISO 14001 and other international standards for environmental management.

Supply Chain Management

Supplier Audits: Approximately 10% on-site audit rate in China in FY2012, aiming to increase.

Responsible Procurement

• Nidec’s CSR Charter stipulated in Basic Business Agreement.
• Nidec Supply Chain CSR Promotion Guidebook.
• Self-check and reporting system by business partners.
• On-site audits by Nidec.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and renewable energy technologies.

Reporting Standards

Frameworks Used: GRI, Ministry of the Environment of Japan’s Environmental Reporting Guidelines 2012, Sustainability Reporting Guidelines 2006 (Third Edition)

Certifications: ISO 14001, OHSAS 18001

Sustainable Products & Innovation

• Energy-efficient motors
• Power source system for mobile phone base stations (combining wind and solar power)
• Power-assisted bicycle motor kit

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Reduced water intake and discharge intensity by 9.8% at production sites and 38.9% at non-production sites (FY2010-FY2015 compared to FY2009)
• 95.5% recycled waste rate
• Mangrove planting in Thailand (9,110 trees planted since FY2007)

Social Achievements

• Opened Nagamori Business School and Nidec Global Business Management University for employee development
• Donation to a facility for the disabled in Germany by Nidec Motors & Actuators (Germany)
• CSR activities promoted across approximately 75% of Group companies as of March 31, 2016

Governance Achievements

• Established Corporate Governance Policy (May 2006) and announced intention to comply with the Tokyo Stock Exchange’s 73-principle Corporate Governance Code
• Implemented EICC-based CSR management system covering 80% of operations worldwide
• Held compliance seminars for employees on topics such as cartels and bribery

Climate Goals & Targets

Environmental Challenges

• Missed targets in the fourth medium-term environmental conservation plan for final waste disposal, greenhouse gases, and electricity consumption
• Expanding the scope of CSR management across the growing number of Group companies

Mitigation Strategies

• Launched the fifth medium-term environmental conservation plan (FY2016-FY2018) with expanded coverage and a focus on quantifying environmental contribution from product use
• Intensive efforts to expand the area of CSR management, increasing coverage to approximately 75% of Group companies

Supply Chain Management

Supplier Audits: 21 major production sites in Asia audited as of FY2015; planning to audit North American and European sites in FY2016

Responsible Procurement

• CSR-based procurement

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 14001

Sustainable Products & Innovation

• Solar-powered irrigation pump system
• Spring-based music boxes

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced environmental impact through FSC®-certified paper, vegetable oil ink, and waterless printing process.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

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: FSC®

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental load reduction
• Environmental contribution through products
• Environmental conservation
• Diversity
• Globally competent talents
• Corporate ethics
• Internal control
• Risk management

Environmental Achievements

• In FY2019, greenhouse gas emissions and water consumption were reduced by 10% and 16%, respectively, at production sites from the FY2015 benchmark.
• Mangrove-planting project in Thailand (600 trees planted in FY2019)

Social Achievements

• Ratio of female managerial employees increased from 2.8% in FY2016 to 5.5% in FY2019.
• Establishment of Women's Activity Promotion Office (Diversity & Inclusion Office), introduction of flexible work systems
• Nidec Global Business School established, training programs implemented

Governance Achievements

• Formulation of Nidec Group’s CSR Declaration on the Conduct (FY2017), issuance of Nidec Compliance Handbook (FY2018)
• CSR audits conducted at 21 major production bases in Asia and Southeast Asia (FY2018, postponed in FY2019 due to COVID-19)
• BCP simulation drills held, 3,026 employees participated

Climate Goals & Targets

Environmental Challenges

• Disruption of the supply chain due to the COVID-19 pandemic
• Global climate change and the need for decarbonization

Mitigation Strategies

• Launched SMART 2030 project to reduce total CO2 emissions by 30% by FY2030 compared to FY2017
• Focus on energy-efficient operations and renewable energy adoption
• Development of energy-efficient and environmentally friendly products

Supply Chain Management

Supplier Audits: CSR audits conducted at 21 major production bases in Asia and Southeast Asia (FY2018)

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Strengthened environmental regulations

Opportunities

• Development of energy-efficient products and renewable energy solutions

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standard

Certifications: ISO 14001 (acquired in 1998)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 13 (Climate action)

Nidec contributes through energy-efficient products and renewable energy solutions

Sustainable Products & Innovation

• Energy-efficient brushless DC motors
• Traction motors for EVs
• Battery energy storage systems (BESSs)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental load reduction
• Environmental contribution through products
• Environmental conservation
• Diversity
• Globally competent talents
• Corporate ethics
• Internal control
• Risk management

Environmental Achievements

• In FY2019, greenhouse gas emissions and water consumption were reduced by 10% and 16%, respectively, at production sites from the FY2015 benchmark. The Smart 2030 Project was launched.
• Mangrove-planting project in Thailand (600 trees planted in FY2019)
• Eco-classes for elementary school students (eleven times in Kyoto Prefecture)

Social Achievements

• Establishment of Women's Activity Promotion Office (now Diversity & Inclusion Office) and introduction of flexible work systems
• Introduction of spouse transfer leave system and revision of comeback system
• Ratio of female managerial employees increased from 2.8% in FY2016 to 5.5% in FY2019
• Nidec Global Business School established, training programs implemented

Governance Achievements

• Formulation of Nidec Group’s CSR Declaration on the Conduct
• Issuance of Nidec Compliance Handbook
• CSR audits conducted at 21 major production bases in Asia and Southeast Asia (FY2019 audit postponed due to COVID-19)

Climate Goals & Targets

Environmental Challenges

• Disruption of the supply chain due to the COVID-19 pandemic
• Global climate change and the need for decarbonization
• Intensifying labor shortage due to dwindling birthrate and aging population

Mitigation Strategies

• SMART 2030 Project launched to reduce total CO2 emissions by 30% by FY2030
• Development of energy-efficient products and adoption of renewable energies
• Development of S-CART autonomous transport carts to address labor shortages
• Development of Battery Energy Storage Systems (BESSs) to support renewable energy

Supply Chain Management

Supplier Audits: CSR audits conducted at 21 major production bases in Asia and Southeast Asia (FY2019 audit postponed due to COVID-19)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standard

Certifications: ISO 14001

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 13 (Climate action)

Nidec's initiatives in energy-efficient motors, renewable energy solutions, and electric vehicle technology contribute to these goals.

Sustainable Products & Innovation

• Energy-efficient brushless DC motors
• Traction motors for EVs
• Battery Energy Storage Systems (BESSs)
• S-CART autonomous transport carts

Environmental Metrics

ESG Focus Areas

• Climate change
• Human resources
• Supply chain
• Corporate governance

Environmental Achievements

• Reduced the volume of final waste disposal at production sites by around 7% from the FY2019 level in FY2020 due to efforts to improve the recycling rate and reduce the use of paper.
• Reduced the total amount of water discharge at production sites by around 11% from the FY2019 level in FY2020 mainly due to the lower plant operation rate as a result of the spread of COVID-19 infection.

Social Achievements

• Certified as an Outstanding Health and Productivity Management Organization 2021 (in the large enterprise category) by the Ministry of Economy, Trade and Industry (METI) in March 2021.
• Increased the number of female managerial employees and candidates for managerial positions and more male employees participating in child-rearing.

Governance Achievements

• Shifted to a company with an Audit and Supervisory Committee in June 2020 and established the Remuneration Committee in February 2021.

Climate Goals & Targets

Environmental Challenges

• A drastic decrease in the operation rate of its production site in Vietnam caused by the spread of the COVID-19 pandemic.
• Rising prices of raw materials.
• Decreased demand for HDD motors.

Mitigation Strategies

• Implemented necessary reforms for sustainable growth, including personnel system reforms and enhancement of the governance system.
• Streamlined business operations to maintain operating profit.
• Shifted growth focus to automotive, appliance, and commercial and industrial products through M&As.

Supply Chain Management

Supplier Audits: 138 on-site audits in FY2020

Responsible Procurement

• Compliance with Nidec Group CSR Charter; Nidec Group Supply-Chain CSR Promotion Guidebook shared with business partners; sustainable procurement considering environmental and social aspects.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products (e.g., E-Axle, EPS motors)

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, GRI Standards, ISO 26000

Sustainable Products & Innovation

• E-Axle EV traction motor system
• EPS motors
• Electric oil pump motors
• HDD motors
• Cooling devices (vapor chambers, etc.)

Awards & Recognition

• Three-star “eruboshi” status (2018)
• Gomez IR Site Ranking 2020 Silver Award
• Daiwa IR Internet IR Commendation Award 2017
• Grade AAA site in Nikko Investor Relations Co., Ltd.’s annual survey (FY2020)
• Sixth in Electric/Precision section in 2020 Awards for Excellence in Corporate Disclosure

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Rights
• Diversity & Inclusion
• Supply Chain Sustainability
• Governance

Environmental Achievements

• Reduced CO2 emissions by 23% (2018-2021)
• Achieved 10.5% renewable energy share in 2021
• Reduced CO2 emissions by 155,000t in 2021 through E-Axle adoption
• 11,700,000t CO2 reduction target by 2025 through E-Axle adoption
• 26,261,000t CO2 reduction target by 2025 through EPS motor adoption

Social Achievements

• Established a Sustainability Committee
• Launched a global talent development program
• Implemented job-type personnel system
• Improved employee safety and health management
• Promoted diversity and inclusion initiatives

Governance Achievements

• Established a Sustainability Committee with 5 members (3 external)
• Increased the ratio of outside directors to 50% or more
• Increased the ratio of female directors to 20% or more
• Implemented a robust internal reporting system
• Strengthened compliance training and education

Climate Goals & Targets

Environmental Challenges

• Fluctuations in raw material prices (non-ferrous and rare earth metals)
• Supply chain disruptions due to COVID-19 and geopolitical factors
• Global energy shortages
• Decreasing demand for HDD motors
• Securing a stable supply of semiconductors

Mitigation Strategies

• R&D to reduce reliance on high-risk raw materials
• Building a resilient supply chain through vertical integration and global production network
• Active introduction of renewable energy
• Shifting business focus to high-growth areas (EV, robotics, etc.)
• Establishing a Semiconductor Solutions Center to secure stable supply

Supply Chain Management

Supplier Audits: 132 (2021)

Responsible Procurement

• Compliance with Nidec Group CSR Charter
• Human rights due diligence

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Power/gas supply disruptions
• Water shortages
• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts
• Increased cost of raw materials

Opportunities

• Increased demand for EV components
• Increased demand for energy-efficient products
• Development of energy storage systems

Reporting Standards

Frameworks Used: IFRS Foundation's International , Ministry of Economy, Trade and Industry's Guidance for Value Co-creation, GRI Standards, TCFD

Sustainable Products & Innovation

• E-Axle
• High-efficiency motors
• Energy storage systems

Awards & Recognition

• Nadeshiko Brand
• FTSE4Good Index Series
• FTSE Blossom Japan Index
• MSCI Japan Empowering Women Index
• Gomez IR Site Ranking 2021 (Bronze)
• Nikko IR Homepage Completeness Ranking (Top Site)
• Daiwa IR 2017 Internet IR Award (Excellent Award)

Environmental Metrics

ESG Focus Areas

• Realize a carbon-free society
• Maintain and foster globally competitive human resources

Environmental Achievements

• Announced support for TCFD recommendations and conducted scenario analysis of climate change impacts on Automotive products Business Unit.
• Set a goal of achieving carbon neutrality by FY2040.
• Aim to substantially reduce Scope 1 and Scope 2 CO2 emissions by improving energy efficiency and introducing renewable energy.

Social Achievements

• Introduced a new grade and remuneration system based on performance.
• Established the Remuneration Committee and the Nomination Committee to enhance corporate governance.
• Formulated the Nidec Group Basic Policies on Human Rights to clarify stance and initiatives regarding respect for human rights.
• Implemented various training measures to cultivate future leaders.

Governance Achievements

• Established the ESG Materiality Steering Committee and the Sustainability Committee.
• Appointed two non-Japanese executives to the Board of Directors.
• Established the Remuneration Committee and the Nomination Committee.

Climate Goals & Targets

Environmental Challenges

• Supply chain instability due to geopolitical risks and rising material and distribution costs.
• Decreasing demand for HDD motors due to structural changes in the storage market.
• Fierce competition in automotive and appliance components markets.
• Risks related to prior investments for anticipated customer demands.
• Risks related to M&A integration.
• Risks related to compliance with various laws and regulations.
• Risks related to recruiting and retaining highly skilled personnel.
• Risks related to the quality of products.
• Risks related to procurement of raw materials or components.
• Risks related to operations in overseas countries.
• Risks related to intellectual property protection.
• Risks related to leaks of confidential information.
• Risks related to pension plans.
• Risks related to fluctuations of foreign currency exchange rates.
• Risks related to fluctuations of interest rates.
• Risks related to liquidity of funds.
• Risks related to recoverability of deferred tax assets.
• Risks related to dependence on founder.
• Risks related to internal controls over financial reporting.
• Risks related to natural and human disasters.
• Climate change risks (transition and physical risks).

Mitigation Strategies

• Strengthening partnerships with key companies in the EV market.
• Accelerating business portfolio transformation.
• Continuous investment in R&D, expanding production, sales, and marketing capabilities.
• Cost reduction efforts.
• Ordered and efficient integration of acquired businesses.
• Strengthening compliance policies and procedures.
• Implementing three reforms of its personnel system.
• Maintaining various types of third-party insurances.
• Reviewing product design and development to reduce raw material usage.
• Diversifying business bases.
• Strengthening information security measures.
• Integrating retirement benefit plans into defined contribution pension plans.
• Matching currency of revenue with currency of expense.
• Diversifying funding sources.
• Regularly reviewing and rolling the mid-term business plan.
• Strengthening the supervisory function of the Board of Directors.
• Establishing a governance structure for pension plans.
• Implementing a BCP (Business Continuity Plan).
• Diversification of production risk through global location strategy.
• Visualization of supply chains and enhancement of their flexibility.
• Continuation of BCP trainings at domestic and overseas offices.

Supply Chain Management

Responsible Procurement

• RBA Code of Conduct (reference)

Climate-Related Risks & Opportunities

Physical Risks

• Flooding, torrential rains, typhoons
• Drought
• Rising temperatures

Transition Risks

• Carbon tax
• Stricter fuel economy and ZEV regulations
• Rising raw material costs
• Increased competition

Opportunities

• Expanding markets for products that contribute to decarbonization (E-Axle, etc.)
• Expansion of the EV market

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• E-Axle
• Magnet-free drive motors for next-generation EVs
• SR motors (switched reluctance motors)

Environmental Metrics

ESG Focus Areas

• Circular Society
• Energy Efficiency
• Sustainable Infrastructure
• AI Society
• Mobility Innovation
• Efficient Manufacturing
• Human Capital Development
• Technological Advancement

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Establishment of three new committees: Technology Strategy Committee, Global HR Strategy Committee, and All for Dreams Committee to improve technological capabilities, global personnel structure, and corporate culture.

Climate Goals & Targets

Environmental Challenges

• Labor shortages
• Uneven distribution of technological know-how within the group
• Difficulty incorporating diversity into management perspectives

Mitigation Strategies

• Establishment of the Technology Strategy Committee to consolidate technological capabilities and discover core competencies.
• Establishment of the Global HR Strategy Committee to reform business management mechanisms, analyze diverse human resources, and facilitate employee interaction.
• Establishment of the All for Dreams Committee to explore the significance of working for the NIDEC Group and define its purpose.

Supply Chain Management

Supplier Audits: Not disclosed

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

• Water-cooling modules for servers
• High-efficiency motors
• Server cooling systems
• High-precision reducers for medical and nursing care robots
• Heat pump solutions

Awards & Recognition

• Not disclosed