MATERIALITY（KEY CORPORATE SUSTAINABILITY ISSUES）OF NORITSU KOKI GROUP
In moving towards the realisation of a sustainable society,
the Noritsu Koki Group has identified 4 corporate materialities.
We have set targets and developed a Materiality Action Plan
for achieving our identified material issues.
|Materiality||Relevant affiliated companies||Our actions||Goals
Contribution to society and community through business operations
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||Conducting quality audits, identifying issues to be addressed, and finding solutions||To create a quality control policy and improve our existing framework||Developed a quality control policy
Set standards for a quality management reporting process to the Board
|To monitor Group response to customers in regards to any quality issues|
|NK||Providing continuous support for local communities and their culture||－||Carried out various business activities which made a contribution to local communities||－|
|TB･AT･JL||Investing in research and development to create new technology and associated values||R&D investment of ¥3.3 billion||Invested ¥3.4 billion in R&D||R&D investment of ¥4 billion|
Enhancing our supply chain framework to make it more environmentally and socially friendly
|TB･AT･JL||Providing eco-friendly products||To build a medium-to-long term plan to develop eco-friendly products||Finalised a new eco-friendly product development plan||To make efforts to be environmentally conscious in relation to new eco-friendly products throughout their entire life cycle|
|NK･TB･AT･JL||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||Calculated actual Group greenhouse gas emissions
Developed a greenhouse gas emissions reduction plan※For actual Group greenhouse gas emissions, click here
|To implement the greenhouse gas emissions reduction plan|
|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)||Developed a procurement policy||To inform all our key suppliers about our procurement policy|
Establishing robust corporate foundations for supporting our business
Creating inclusive workplaces where diversity is respected and all employees work proactively, successfully, and in a future-facing fashion
|NK･TB･AT･JL||Providing diversity and inclusion education training||To create a human rights policy and its ground rules to be adopted at all workplaces||Developed a human rights policy
Created a human rights training programme for FY2023 and onwards
Designed a framework to carry out human rights due diligence
|To provide human rights training annually or more often|
|NK･TB･AT･JL||Promoting health and productivity management||To create a health and productivity management policy and improve our existing employees' wellbeing support system||Developed a health management policy
Designed a monitoring and support system
|To monitor the level of health and productivity management being promoted
To respond to challenges based on the monitoring results
|NK･TB･AT･JL||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||Developed a human resource development policy
Designed a system to support the implementation of education and training aligning with the policy
|To provide an average of 22.4 hours of training per employee per year|
Enhancing our sound corporate governance framework for sustainable growth
|NK･TB･AT･JL||Promoting more diverse and flexible working practices||To improve the current working environment and conditions depending on company type, employment and tasks||Developed a new way of working in the wake of COVID-19
Developed a monitoring process to measure the promotion of different categories of diverse and flexible working practices
|To monitor the level of diverse and flexible working practices being promoted
To respond to challenges based on the monitoring results
|NK||Assessing board effectiveness and providing more information about the assessment result||－||Carried out an assessment of board effectiveness||To address issues based on the assessment results of FY2022
To continue to assess board effectiveness
|NK･TB･AT･JL||Providing information security training to all employees at all levels||To provide training annually or more often||Carried out information security training (once)||To provide information security training annually or more often|
- *Company names indicated above are those as of end February 2023.
- *Full names of the abbreviated company names are shown below.
NK：Noritsu Koki Co., Ltd.
JL：PEAG, LLC dba JLab
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.
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
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 3 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.
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.
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.
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.