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 for FY2022|
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|
|NK||Providing continuous support for local communities and their culture||－|
|TB･AT･JL||Investing in research and development to create new technology and associated values||R&D investment of ¥3.3 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|
|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|
|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
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|
|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|
|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|
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|
|NK||Assessing board effectiveness and providing more information about the assessment result||－|
|NK･TB･AT･JL||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
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.