Materialities (Key Issues) and KPIs

To realize our Sustainability Vision, the Nissha Group identifies particularly important items as materialities. We also set and engage in specific strategy items, KPIs, and action items reverse-calculated to achieve 2030 goals.

Materialities are evaluated from the 4 perspectives of, creating business opportunities, risk reduction, strengthening management foundation, and corporate governance, using the two axes of importance to society and stakeholders, and importance to Nissha. In addition, we hold dialogues with stakeholders including customers, shareholders and investors, and include that insights in “importance to society and stakeholders”. The identified issues and their positioning within the Group are discussed by the Sustainability Committee, and materialities are identified through deliberations and resolutions by the Board of Directors.

Materiality Identification Process

Identify related social issues
Identify social and management issues related to the realization of the Nissha Group's Sustainability Vision by referencing SDGs, GRI Standards, RBA (Responsible Business Alliance), etc..
Incorporate knowledge gained through dialogue with customers, shareholders, investors, and other stakeholders regarding the social and management issues identified in Step 1, while analyzing and prioritizing on two axes: “importance to society and stakeholders” and “importance to Nissha”.
Verify validity
Examine the validity of the priorities via interviews conducted with business divisions involved in the Sustainability Committee, Task Force and other organizations.
Establish materialities,
KPIs, and action items
Based on Steps 1 to 3, materialities are identified through deliberations and resolutions by the Board of Directors. In addition, business divisions, organizations, and the Task Force incorporate strategy items, KPIs, and action items which are then approved by the Sustainability Committee.

Creating Business Opportunities

Identified based on important social issues (needs) in the priority markets as stipulated in Sustainability Vision
Materialities Strategy Items
(Scenario for achieving materialities)
KPIs and Action Items
Solve medical issues (Medical Devices) Expansion of business for Medical Devices / Healthcare market
  • Net sales of Medical Technologies business
  • S
Contribute to the safety and comfort of transportation and logistics, and the reduction of environmental impact (Mobility) Expansion of business for Mobility market
  • Net sales of Mobility segment
  • E
  • S
Promotion of circular economy (Sustainable Materials) Expansion of business for Sustainable Materials market
  • Net sales of Sustainable Materials segment
  • E

Risk Reduction

Evaluated and identified environmental and social risks that impede business continuity in aiming to achieve Sustainability Vision
Materialities Strategy Items
(Scenario for achieving materialities)
KPIs and Action Items
Respect for human rights Reduction of labor and human rights risks
  • Number of child labor and forced labor cases at primary suppliers in areas with high labor and human rights risks : 0
  • S
Responding to climate change Realization of Sustainability Vision (Reduction of CO2 emissions)
  • Reduction of total CO2 emissions -9% (compared to 2020)
  • E
Providing responsible products and services
  • Maintain and expand quality management system in accordance with our business strategy
  • Improvement of quality assurance levels by incorporating quality-oriented designing
  • Fostering and improving the quality mindset
  • Number of serious quality incidents: 0
  • S
Sustainable procurement Establishment and operationalization of stable procurement
  • 100% implementation rate of risk reduction measures for major components
  • S

Strengthening Management Foundation / Corporate Governance

Identified major business foundation elements in the quest for realizing our Sustainability Vision and accelerating business activities

  Materialities Strategy Items
(Scenario for achieving materialities)
KPIs and Action Items
Strengthening Management Foundation Utilizing diverse human resources and developing global and management human resources Promote activities for female employee
  • Female manager ratio
    Global consolidated: 21% Nissha non-consolidated: 8%
  • S
Enhancement of trainings for management / strategic human resources, and rotation
  • Selection rate of leader candidates
    Nissha non-consolidated: 36%
  • S
Efficiency and productivity improvement Improve efficiency and productivity by digitalization of value creation processes
  • Reduction of working hours by automation and efficiency tools such as RPA (compared to 2020) by 100,000 hours/year
  • Conduct training to improve AI/DX education and IT literacy: 20 subjects/year
  • S
Creating technologies to achieve business strategies Create a product platforms aimed at increasing development efficiency in priority markets
  • Build product platforms:
    3 platforms/year
  • S
Corporate Governance Improving the effectiveness of the Board of Directors Upgrade systems related to corporate governance and group governance
  • Improve the evaluation of the effectiveness of the Board of Directors (compared to previous year)
  • Percentage of actions on the internal control checklist that were implemented: 100%
  • G
Advancement of global governance

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