SUSTAINABILITY

Materiality
(Key Corporate Sustainability Issues)
of the Noritsu Koki Group

MATERIALITY
FRAMEWORK

In moving towards the realisation of a sustainable society,
the Noritsu Koki Group has identified 4 corporate materialities.

MATERIALITY
ACTION PLAN

We have set targets and developed a Materiality Action Plan
for achieving our identified material issues.

Materiality Relevant affiliated companies Our actions Goals for FY2022
Contribution to society and community through business operations
01
Shaping the future and making a positive contribution to create a prosperous society and enrich people’s lives through manufacturing products that society needs
TB・AT・JL・PM Conducting quality audits, identifying issues to be addressed, and finding solutions To create a quality control policy and improve our existing framework
NK Providing continuous support for local communities and their culture
TB・AT・JL・PM Investing in research and development to create new technology and associated values *We will inform you of our fiscal investment objectives as soon as they are set
02
Enhancing our supply chain framework to make it more environmentally and socially friendly
TB・AT・JL・PM Providing eco-friendly products To build a medium-to-long term plan to develop eco-friendly products
NK・TB・AT・JL・PM Reducing greenhouse gas emissions (Scope 1,2) by 37% (compared to FY2019's) in 2030 To calculate greenhouse gas emissions produced by each of the affiliated companies and develop an action plan to reduce them
TB・AT・JL Establishing our supply chain framework and promoting risk mitigation To create a procurement policy (including human rights, labour, environment, and corruption prevention)
Establishing robust corporate foundations for supporting our business
03
Creating inclusive workplaces where diversity is respected and all employees work proactively, successfully, and in a future-facing fashion
NK・TB・AT・JL・PM Providing diversity and inclusion education training To create a human rights policy and its ground rules to be adopted at all workplaces
NK・TB・AT・JL・PM Promoting health and productivity management To create a health and productivity management policy and improve our existing employees' wellbeing support system
NK・TB・AT・JL・PM Improving practices in developing talent, skills, a proactive mindset and leadership of all employees at all levels To create a human resource development policy and a system to promote educational opportunities for employees
04
Enhancing our sound corporate governance framework for sustainable growth
NK・TB・AT・JL・PM Promoting more diverse and flexible working practices To improve the current working environment and conditions depending on company type, employment and tasks
NK Assessing board effectiveness and providing more information about the assessment result
NK・TB・AT・JL・PM Providing information security training to all employees at all levels To provide training annually or more often
  • *Company names indicated above are those as of end October 2021.
  • *Full names of the abbreviated company names are shown below.
    NK: Noritsu Koki Co., Ltd. / TB: Teibow Co., Ltd./ AT: AlphaTheta Corporation / JL: PEAG, LLC dba JLab Audio / PM: PreMedica Inc.

MATERIALITY ASSESSMENT PROCESS

We have identified our materialities by conducting our materiality assessment based on the
following processes with cross group co-operation and the help of external advisory experts.

STEP1
Identify potential
social issues
and impacts

Working to incorporate diverse stakeholder expectations, we used 11 different globally-recognised sustainability standards such as ESG disclosure guidelines, evaluation criteria provided by ESG evaluation agencies, and codes of conduct. We performed an analysis on sector-specific material issues and identified 31 potential social issues that impact our business in order to define our materiality.

  • *1 GRI Standards, SASB Standards
  • *2 DJSI (RobecoSAM), FTSE, MSCI
  • *3 SDGs, ISO26000, Ten Principles of the UNGC, OECD Guidelines for Multinational Enterprises
  • *4 World Economic Forum(WEF)“Measuring Stakeholder Capitalism”, “Resolving Societal Issues Through Innovation — Listings of Societal Issues” FOR CO-CREATING THE FUTURE
STEP2
Assess and
prioritise material
topics

The 31 social issues selected in Step 1 were evaluated and weighted using a scoring method, incorporating the views of stakeholders and Group businesses, and prioritised according to the following criteria.

  • 1) Stakeholder Input: assessment based on the relative interests and importance of stakeholders by external advisory experts and scholars.
  • 2) Business Impact and Values: reassessing the evaluation scores provided by our 4 major group businesses based on the business impact and values of the Noritsu Koki Group.

As a result, we identified 15 social issues that matter the most to our business and stakeholders.

STEP3
Define materiality

The 15 potential social topics selected in Step 2 were clustered into groups on the basis of our MVV and business model. We refined a list of core corporate material issues that could highly affect our business.
Having had insightful feedback from external advisory experts and far-reaching discussions with senior management including our CEO, we integrated them into 4 significant material topics that need to be addressed and worked on as a group.

STEP4
Determine and
disclose the
materiality

We designed a materiality matrix and validated the credibility of the identified 4 material issues. Approved by the Board of Directors, we finally defined them as the Noritsu Koki Group’s materialities.

MATERIALITY FRAMEWORK

MATERIALITY MATRIX

We designed the materiality matrix using “Priority for stakeholders” and “Priority for business”.
We selected topics with high scores (i.e. indicating the level of priority) for the social issues that our Group needs to address.