Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Maintained a recycling and resource reuse rate of 99.9% at Nissha bases in Japan.
• Reduced waste generation by approximately 16% compared to FY2011.

Social Achievements

• Achieved a 22% reduction in overtime work compared to the previous fiscal year.
• Won a Comprehensive Award of "Japan Business Federation Recommended Company Magazine" for their in-house magazine, IN.

Governance Achievements

• Joined the United Nations Global Compact in April 2012.
• Revised Environmental Policy in April 2012 to align with UN Global Compact and improve EMS.

Climate Goals & Targets

Environmental Challenges

• Poor business performance leading to decreased production volume and increased CO2 emissions.
• Harsh business environment necessitating personnel structure optimization.

Mitigation Strategies

• Implemented emergency measures to reduce fixed and variable costs.
• Undertook structural reforms, including cost reform, factory reorganization, workforce reduction, and increased overseas purchasing.

Supply Chain Management

Supplier Audits: Tours or audits of eight suppliers’ factories.

Responsible Procurement

• CSR procurement initiatives, including Supplier Self-Check Sheet and Supplier Data Sheet.
• Basic Purchasing Policy emphasizing respect for human rights and environmental considerations.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Application Level C

Certifications: ISO 14001 (various factories), ISO 9001:2008 (various factories)

Awards & Recognition

• Comprehensive Award of "Japan Business Federation Recommended Company Magazine"
• Kinki Region Honorary Certificate for Traffic Safety

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• CSR

Environmental Achievements

• Not disclosed

Social Achievements

• Established CSR Committee with subcommittees dedicated to areas such as labor and human rights and environmental conservation.
• Launched Nissha Academy for human resource development.
• Conducted CSR audits of major suppliers based on the EICC Code of Conduct.

Governance Achievements

• Published Corporate Governance Policy.
• Established Nominating and Remuneration Committee.
• Increased number of Independent Directors to 50% of the board.
• Launched evaluations of Board of Directors effectiveness.
• Adopted performance-based stock compensation plan for Directors and corporate officers.

Climate Goals & Targets

Environmental Challenges

• Overdependence on the consumer electronics industry for Industrial Materials and Devices businesses.
• Declining demand for printed materials in the Information and Communication business.
• Fluctuations in product demand and falling unit prices in the consumer electronics field.
• Rapid appreciation of the yen.
• Risk of weakening the objective standpoint of independent officers due to lengthy discussions.

Mitigation Strategies

• Reorganization of business portfolio through M&As and expansion into growth markets (automotive, metallized paper, medical).
• Split-off of Information and Communication Business and production tie-up with another printing company.
• Cost restructuring and improved productivity.
• Securing long-term funds through issuance of convertible bonds.
• Strengthening risk management system covering the entire global Nissha Group.

Supply Chain Management

Supplier Audits: CSR audits of major suppliers since 2015

Responsible Procurement

• Compliance with EICC Code of Conduct and customer CSR requirements

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4, UN Global Compact, ISO 26000, EICC Code of Conduct

Certifications: Null

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

• Compliance
• Occupational health and safety
• Respect for human rights of employees
• Climate change
• Diversity and equal opportunity
• Social and environmental assessment of suppliers
• Protection of customer information
• Responsibility for product and service continuity

Environmental Achievements

• Reduced CO2 emissions per unit production from 1.14 in 2016 to 0.92 in 2017, despite an overall increase in CO2 emissions due to mass production of a large project.
• Achieved "Outstanding Enterprise in Health and Productivity Management, White 500" award for the second consecutive year.

Social Achievements

• Acquired third "Kurumin" mark in 2016 (certifies companies supporting child rearing).
• Launched a project team for the promotion of women’s advancement in April 2014.
• Established an action plan for the advancement of female employees based on the Act on Promotion of Women’s Participation and Advancement in the Workplace.

Governance Achievements

• Increased the number of Independent Outside Directors on the Board to four.
• Implemented evaluations of the effectiveness of the Board of Directors.
• Introduced performance-based compensation for Internal Directors and Vice Presidents.

Climate Goals & Targets

Environmental Challenges

• Over-dependence on the volatile consumer electronics (IT) market.
• Fluctuations in product demand and dropping prices in the IT market.
• Decreasing volume of printed matter in the Information and Communication Business Unit.
• Intense competition for orders in the Information and Communication Business Unit.
• Exchange rate fluctuations impacting overseas sales.
• Climate change risks.
• Maintaining sufficient profitability in the Information and Communication Business Unit.

Mitigation Strategies

• Accelerating business development in steadily growing markets (automotive, medical devices, high-function packaging materials).
• Aggressive M&A strategy for reorganizing and optimizing the business portfolio.
• Withdrawal from unprofitable fields (notebook PC business).
• Company split-up and production partnership with Kyodo Printing (Information and Communication Business Unit).
• Cost restructuring through reduction of manufacturing and variable costs (Information and Communication Business Unit).
• Focusing business resources on customers and industries where strengths can be leveraged.
• Developing a balanced management strategy across four priority markets.
• Implementing risk management through subcommittees within the CSR Committee.
• Implementing forward exchange contracts to mitigate exchange rate risk.
• Strengthening credit management and inventory control.
• Setting targets for CO2 emissions reduction per unit production.

Supply Chain Management

Supplier Audits: conducted since 2015, based on the RBA Code of Conduct

Responsible Procurement

• CSR audits of major suppliers covering labor and human rights, safety and health, environmental conservation, ethics, and management systems.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Global Compact, ISO 26000

Certifications: ISO 14001

Awards & Recognition

• "Outstanding Enterprise in Health and Productivity Management, White 500" award (2018)
• Bronze prize in the Graphic Design category at the 11th IDA International Design Awards.

Environmental Metrics

ESG Focus Areas

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

Environmental Achievements

• Reduced CO2 emissions by 9% compared to 2020 (Scope 1 & 2)
• Switched all electricity used at NII Koka Factory to renewable energy sources
• Achieved 99.9% recycling and resource reuse rate in Japan

Social Achievements

• Launched a fundraising program to support the people of Ukraine
• Implemented various initiatives to improve employee engagement and work-life balance
• Extended training for foreign technical interns due to the COVID-19 pandemic

Governance Achievements

• Established a Risk Management and Compliance Committee
• Revised the human resources system to focus on roles and abilities
• Maintained AEO certification for Nissha Co., Ltd. and Nissha Precision Technologies Malaysia Sdn. Bhd.

Climate Goals & Targets

Environmental Challenges

• Increased CO2 emissions at some overseas production bases
• Occupational accidents in Japan
• Supply chain disruptions due to the COVID-19 pandemic

Mitigation Strategies

• Implementing energy conservation measures and switching to renewable energy
• Conducting risk assessments and providing safety training
• Developing business continuity plans and implementing telework system

Supply Chain Management

Supplier Audits: 19 companies audited since FY2015; 40 companies surveyed in Europe and Asia in 2021

Responsible Procurement

• CSR Procurement Guidelines based on RBA code of conduct
• Self Assessment Questionnaires (SAQs)

Climate-Related Risks & Opportunities

Physical Risks

• Intensifying weather disasters
• Flooding

Transition Risks

• Introduction or strengthening of carbon taxes
• Tightening restrictions on the use of specific substances
• Increase in requests from customers to reduce CO2 emissions

Opportunities

• Increase in net sales of automotive products due to expansion of EV market
• Increase in sales opportunities for gas sensor modules for refrigerant detection

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO 13485, IATF 16949, ISO 27001, FSC COC, PEFC, EN15593, EC93/42/EEC

Third-party Assurance: DNV Business Assurance Japan K.K. (for CO2 emissions data)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Hydrogen detectors
• Coolant sensors
• Touch sensors for vehicles
• Gas sensor modules for refrigerant detection

Awards & Recognition

• FTSE Blossom Japan Index constituent stock
• FTSE Blossom Japan Sector Relative Index constituent stock
• S&P/JPX Carbon Efficient Index constituent stock
• SOMPO Sustainability Index constituent stock
• White 500 company in the Health and Productivity Management Organization Program
• Platinum Kurumin certification

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Rights
• Human Resources
• Fair Operating Practices
• Corporate Governance
• Quality Management
• Sustainable Procurement
• Data Security
• Circular Economy
• Biodiversity

Environmental Achievements

• Achieved an 18.7% reduction in CO2 emissions in 2023, surpassing the target reduction ratio of 9% (compared to 2020).
• Promoted switch to renewable electricity at domestic and overseas production bases and promoted energy conservation measures.
• Implemented Scope 3 emissions tracking, and third-party verification was obtained for some of them.

Social Achievements

• Global consolidated female manager ratio: 22.7%; Nissha non-consolidated: 7.1%
• Selection rate of leader candidates in selective training programs Nissha non-consolidated: 41.5%
• Number of serious quality incidents: 0
• Conducted regular annual survey of target suppliers using the CSR survey form, and all suppliers scored above the threshold. Site audits were carried out for some selected suppliers. Minor issues noted were given pointers on how to improve them, and the results were confirmed at a later date.

Governance Achievements

• Put into practice the Desirable Relationship between Internal Directors and Outside Directors.
• Reconfirmed the standard for agenda items submitted to the Board of Directors and review operation of reporting items.
• Implemented actions in response to internal control checklist.
• Understood the compliance status of the RBA Code of Conduct (Malaysia and China regions).

Climate Goals & Targets

Environmental Challenges

• Planned reduction of 39,000 hours/year in working hours through the use of efficiency tools and automation such as RPA was not achieved.

Mitigation Strategies

• Initiatives in the Nissha Group in Japan have made a certain level of progress, and we are planning to expand the use to overseas Nissha Group companies.
• Made work more efficient using a work designer.

Supply Chain Management

Responsible Procurement

• Promote sustainable procurement
• CSR survey (Self Assessment Questionnaire: SAQ) and audit

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, TCFD, UN Global Compact, RBA

Certifications: ISO 13485, IATF 16949, Kurumin, Platinum Kurumin, DX-Certified Operator, Certified Health & Productivity Management Outstanding Organizations

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions (Specific figures need further calculation from the provided data)
• Improved recycling and resource reuse rate (Specific figures are available in the report)

Social Achievements

• Improved employee engagement scores (Specific figures are available in the report)
• Increased health screening rates (Specific figures are available in the report)

Governance Achievements

• Maintained a diverse board of directors (Specific figures are available in the report)
• Implemented a group-wide hotline for reporting unethical behavior

Climate Goals & Targets

Environmental Challenges

• Reducing environmental impact of manufacturing processes
• Maintaining high employee engagement and satisfaction

Mitigation Strategies

• Implementing various environmental initiatives (detailed in the report)
• Investing in employee training and development programs (detailed in the report)

Supply Chain Management

Responsible Procurement

• Purchasing Principles (detailed in the report)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO9001, ISO13485, ISO22716, IATF16949, ISO14001, ISO50001, OHSAS18001・ISO45001, ISO27001, FSC COC, PEFC, EN15593, EC93/42/EEC