Nissin Electric Group’s materiality in promoting the SDGs

Our SDGs policy is guided by the Nissin Electric Group corporate philosophy, which stresses “through corporate activities that support the foundations of society and industry, the Nissin Electric Group will harmonize with the environment and contribute toward realizing a vibrant society.” In order to achieve this corporate philosophy, in April 2019 we reevaluated our Corporate Behavior Charter to include the prominent social issues of “taking action on global environmental problems,” “respect for human rights and diversity,” and “thorough risk management.” Group materiality is guided by the addition to the Corporate Behavior Charter of the “situation after undergoing significant change” that we are determined to achieve by 2050 and which is part of VISION2025.

Materiality consists of two elements: “products and services that create value” and “actions to strengthen the business foundation.” In “products and services that create value,” the six growth strategies set in VISION2025 aim to contribute to solving global environmental problems such as reducing greenhouse gas emissions and social issues as “contribute to technological innovation through eco-friendly and earth-friendly products” and “contribute to global environmental problems.” “Actions to strengthen the business foundation” refers to our efforts to strengthen Group business sustainability by “reform of fair corporate activities that respect human rights,” “reform into a safe and worker-friendly workplace that respects diversity,” and “improving BCP with stronger risk response capabilities.”

We have specified KPIs for the main activities behind each of these materiality factors, and we will move them forward by monitoring their progress and disclosing appropriate information both inside and outside the company.

「VISION2025」datails

Materiality of Products and Services that Create Value

Contribute to Technological Innovation Through Eco-friendly and Earth-friendly Products

Contribute to building a foundation for technological innovation and achieving sustained growth by providing high-quality products that are safe and friendly for people and the environment.

Measures	KPI	Target SDGs
Six growth strategies contribute to solving social issues GLOBAL	Achieve a six growth strategies sales ratio of 40% by FY2025	8.1

Measures	Six growth strategies contribute to solving social issues GLOBAL
KPI	Achieve a six growth strategies sales ratio of 40% by FY2025
Target SDGs	8.1

Six Growth Strategies	Main Activities		Contribute to Solving Social Issues	Related SDGs
Expansion of environmentally friendly products		Develop and introduce to market SF₆ gas-free, environmentally friendly electron beam processing systems	Reduce SF₆ gas emissions (in-house, product users)	13.1
Expansion of environmentally friendly products	S	Develop and introduce to market SF₆ gas-free, environmentally friendly market equipment (gas insulated switchgears, etc.)	Reduce SF₆ gas emissions (in-house, product users)	13.1
Response to distributed energy		Distributed energy resource control system uses energy efficiently and expands renewable energy and energy conservation	Reduce CO₂ emissions (product users)	7.2, 7.3 13.1
Response to renewable energy		Promote renewable energy as a main power source through electrical power grid stabilization system and area aggregation system
Response to renewable energy		Expand the introduction of wind power by providing safe and reliable wind power generation package systems (grid connection equipment)
Adoption of DX to products and business		Implement smart maintenance utilizing AI and IoT to improve safety, reliability, and BCP capability of social infrastructure	Achieve robust social infrastructure	9.4
Adoption of DX to products and business		Provide communication services linked to the community using easy-to-operate ICT devices	Achieve an elderly-friendly society	12.8
Identifying demand resulting from increasing environmental awareness in emerging countries		Business growth in the core ASEAN industry of manufacturing	Sustained economic growth in developing countries	8.1
		Develop and introduce to market environmentally responsive products that meet local needs	Improve the environment and living standards in the ASEAN region	3.9 6.3 14.1 15.1
Expand business in step with the growth of EV market		Expand DLC for eco-friendly cars	Reduce CO₂ emissions (product users)	7.3 13.1
Expand business in step with the growth of EV market		Expand sales of ion implanter for SiC power semiconductor	Reduce CO₂ emissions (product users)	7.3 13.1

Six Growth Strategies
Expansion of environmentally friendly products
Main Activities		Develop and introduce to market SF₆ gas-free, environmentally friendly electron beam processing systems
Main Activities	S	S Develop and introduce to market SF₆ gas-free, environmentally friendly market equipment (gas insulated switchgears, etc.)
Contribute to Solving Social Issues	Reduce SF₆ gas emissions (in-house, product users)
Related SDGs	13.1

Six Growth Strategies
Response to distributed energy
Main Activities	S	S Distributed energy resource control system uses energy efficiently and expands renewable energy and energy conservation
Contribute to Solving Social Issues	Reduce CO₂ emissions (product users)
Related SDGs	7.2, 7.3 13.1

Six Growth Strategies
Response to renewable energy
Main Activities	S	S Promote renewable energy as a main power source through electrical power grid stabilization system and area aggregation system
Main Activities	S	S Expand the introduction of wind power by providing safe and reliable wind power generation package systems (grid connection equipment)
Contribute to Solving Social Issues	Reduce CO₂ emissions (product users)
Related SDGs	7.2, 7.3 13.1

Six Growth Strategies
Adoption of DX to products and business
Main Activities	S	S Implement smart maintenance utilizing AI and IoT to improve safety, reliability, and BCP capability of social infrastructure
Contribute to Solving Social Issues	Achieve robust social infrastructure
Related SDGs	9.4

Main Activities		Provide communication services linked to the community using easy-to-operate ICT devices
Contribute to Solving Social Issues	Achieve an elderly-friendly society
Related SDGs	12.8

Six Growth Strategies
Identifying demand resulting from increasing environmental awareness in emerging countries
Main Activities		Business growth in the core ASEAN industry of manufacturing
Contribute to Solving Social Issues	Sustained economic growth in developing countries
Related SDGs	8.1

Main Activities		Develop and introduce to market environmentally responsive products that meet local needs
Contribute to Solving Social Issues	Improve the environment and living standards in the ASEAN region
Related SDGs	3.9 6.3 14.1 15.1

Six Growth Strategies
Expand business in step with the growth of EV market
Main Activities		Expand DLC for eco-friendly cars
Main Activities		Expand sales of ion implanter for SiC power semiconductor
Contribute to Solving Social Issues	Reduce CO₂ emissions (product users)
Related SDGs	7.3 13.1

Power Supply and Environment System Business（SSPSS）

Beam and Plasma Business

Equipment and Parts Solution Business

Contribute to Global Environmental Problems

We are contributing to preventing global warming and making every effort to avoid a climate crisis by working energetically to prevent environmental pollution and use resources efficiently.

Measures

KPI

Target SDGs

Reduce greenhouse gas emissions (SBTi certification reduction plan) GLOBAL

Scope1+2：	reduce 35% compared with FY2018 by FY2030
Scope3　：	reduce 30% compared with FY2018 by FY2030

Promote resource conservation and reduce and reuse waste materials GLOBAL

Reduce waste volume per unit by 7% compared with FY2018 by FY2025
Reduce water consumption per unit by 7% compared with FY2018 by FY2025

Prevent environmental pollution due to chemical substance discharge, leaks, and the like GLOBAL

Reduce volatile organic compound (VOC) emissions per unit by 7% compared with FY2018 by FY2025

Measures

Reduce greenhouse gas emissions (SBTi certification reduction plan) GLOBAL

KPI

Scope1+2：	reduce 35% compared with FY2018 by FY2030
Scope3　：	reduce 30% compared with FY2018 by FY2030

Target SDGs

Measures	Promote resource conservation and reduce and reuse waste materials GLOBAL
KPI	Reduce waste volume per unit by 7% compared with FY2018 by FY2025 Reduce water consumption per unit by 7% compared with FY2018 by FY2025
Target SDGs	12.5

Measures	Prevent environmental pollution due to chemical substance discharge, leaks, and the like GLOBAL
KPI	Reduce volatile organic compound (VOC) emissions per unit by 7% compared with FY2018 by FY2025
Target SDGs	3.9 12.4

Scope 1:	Direct emissions from in-house fuel combustion and manufacturing processes
Scope 2:	Indirect emissions produced by electricity and heat purchased by the Group
Scope 3:	Indirect emissions not included in Scope 1 and Scope 2 (raw materials procurement, product use, employee commuting, etc.)

Materiality of Actions to Strengthen the Business Foundation

Reform of Fair Corporate Activities That Respect Human Rights

Our corporate activities worldwide strive to build an equal society that respect the human rights of every person, that observe national laws, including international law, and that respect cultures and values.

Measures	KPI	Target SDGs
Thorough global compliance GLOBAL	Periodically and continuously conduct effective training at every Group company site in Japan and overseas, strive for thorough compliance, and keep occurrence of major violations (antitrust and competition law violations, violations accompanying suspension of business procedures) at zero	16.3, 16.5
Apply a thorough human rights policy within the Group (apply human rights due diligence^*) GLOBAL	Build a mechanism capable of periodic self-assessment of the risk of human rights violations and establish the practice of human rights due diligence	8.7, 8.8 10.2

Measures	Thorough global compliance GLOBAL
KPI	Periodically and continuously conduct effective training at every Group company site in Japan and overseas, strive for thorough compliance, and keep occurrence of major violations (antitrust and competition law violations, violations accompanying suspension of business procedures) at zero
Target SDGs	16.3, 16.5

Measures	Apply a thorough human rights policy within the Group (apply human rights due diligence^*) GLOBAL
KPI	Build a mechanism capable of periodic self-assessment of the risk of human rights violations and establish the practice of human rights due diligence
Target SDGs	8.7, 8.8 10.2

*	Human rights due diligence: the ongoing process of companies to implement appropriate measures to prevent and address the risk of adverse impacts on human rights

Reform into a Worker-Friendly Workplace That Respects Diversity

We will build a workplace environment in which each individual’s characteristics, personality, and potential are respected and everyone, as a main actor, can fully display their abilities regardless of differences in nationality and gender and the existence of disabilities.

Measures

KPI

Target SDGs

Promote diversity & inclusion

Regardless of differences in nationality and gender and the existence of disabilities, support the potential and growth of every person and build a workplace culture in which everyone thrives

・FY2030

Rate of female managers (Japan) over 10%
Rate of female employees hired (Japan) over 30%

Safe and healthy workplace

■Safety targets GLOBAL

・FY2025

Workplace accidents: Japan: 3 or fewer / Overseas: 6 or fewer
Zero serious accidents and residual disability accidents

■Health targets
The Nissin Electric Group has issued a declaration stating its commitment to a workplace where every employee can work in conditions that safeguard their physical and mental health

・	Health Management Declaration issued FY2022 (Japan)

A worker-friendly and fulfilling workplace

In an environment that enables everyone to safely express their opinion, respects diversity, and encourages taking on challenges, create a workplace (workplace that contributes to well-being) where individuals can feel their self-growth and their contribution to the company and society through their work and aim to enhance the degree of employee satisfaction

Promoting Smart Factory

・	Focus on worker-friendly factories that produce safe and high-quality products
・	In FY2022, establish objective evaluation methods and set performance targets

Measures

Promote diversity & inclusion

KPI

Regardless of differences in nationality and gender and the existence of disabilities, support the potential and growth of every person and build a workplace culture in which everyone thrives

・FY2030

Rate of female managers (Japan) over 10%
Rate of female employees hired (Japan) over 30%

Target SDGs

Measures

Safe and healthy workplace

KPI

■Safety targets GLOBAL

・FY2025

Workplace accidents: Japan: 3 or fewer / Overseas: 6 or fewer
Zero serious accidents and residual disability accidents

Target SDGs

Measures

Safe and healthy workplace

KPI

■Health targets
The Nissin Electric Group has issued a declaration stating its commitment to a workplace where every employee can work in conditions that safeguard their physical and mental health

・	Health Management Declaration issued FY2022 (Japan)

Target SDGs

Measures	A worker-friendly and fulfilling workplace
KPI	In an environment that enables everyone to safely express their opinion, respects diversity, and encourages taking on challenges, create a workplace (workplace that contributes to well-being) where individuals can feel their self-growth and their contribution to the company and society through their work and aim to enhance the degree of employee satisfaction
Target SDGs	8.5

Measures

Promoting Smart Factory

KPI

・	Focus on worker-friendly factories that produce safe and high-quality products
・	In FY2022, establish objective evaluation methods and set performance targets

Target SDGs

Improve BCP with Stronger Risk Response Capabilities

Ensure that we endure for the next 100 years by maintaining supply chains even when sudden risks―including natural disasters and conflict―occur.

Measures

KPI

Target SDGs

Strengthen sustainability of entire supply chain

Strengthen partner sustainability GLOBAL

・	In order to strengthen partner sustainability, through FY2025, for partners who account for 90% of the acceptance amount for all production bases^*, perform compliance surveys in accordance with CSR Procurement Guidelines, and then analyze the results and give guidance for improvements
・	Build a partner CSR objective (quantitative) evaluation framework by FY2030 that can identify partners that are high risk

Strengthen Group risk response capability

Build a natural disaster rapid recovery support framework for our customers

Measures

Strengthen sustainability of entire supply chain

Strengthen partner sustainability GLOBAL

KPI

・	In order to strengthen partner sustainability, through FY2025, for partners who account for 90% of the acceptance amount for all production bases^*, perform compliance surveys in accordance with CSR Procurement Guidelines, and then analyze the results and give guidance for improvements
・	Build a partner CSR objective (quantitative) evaluation framework by FY2030 that can identify partners that are high risk

Target SDGs

*	Overseas, includes main partners that are subject to this policy

Measures	Strengthen sustainability of entire supply chain
Measures	Strengthen Group risk response capability
KPI	Build a natural disaster rapid recovery support framework for our customers
Target SDGs	13.1