Nippon Denko

Materiality

Materiality in the Nippon Denko Group

Our management philosophy is to help create an affluent future through sustainable growth by developing and providing distinctive products, technologies, and services. Under this philosophy, we consider sustainability to be a key management strategy for achieving the dual aims of “contributing to the resolution of societal issues through our business activities” and “increasing our corporate value through sustainable growth.”

Our process and approach for identifying materiality

We undergo the following formulation process to clarify materiality -those that could impact our corporate value and the course of our management over the long term-in addition to identifying critical risks and opportunities.
We recognize that in order to realize our management philosophy-"helping create an affluent future” by “developing and providing distinctive products, technologies, and services”-we must contribute to a sustainable society through business activities that facilitate decarbonization and the transition to a circular economy in addition to reducing the environmental impact of our activities.
We are also aware of the support we receive from our diverse stakeholders toward making those contributions, and understand that maintaining good relationships with them on all aspects is essential for the Group’s sustainability. We will invest proactively in our human capital-uthe source of our competitiveness-incorporate diversity, and strengthen relations with our business partners while increasing our corporate value over the medium-to long-term through constructive communication with investors, local communities, and other stakeholders.

Step 1

List the impacts of environmental changes on our businesses in terms of our management philosophy

List closely linked changes to the environment to which the long-term direction of our businesses toward achieving our management philosophy, and list the material issues for the Group to tackle

Step 2

Consult guidelines and other resources to create exhaustive lists to accompany the lists from Step 1

  • Sustainable development goals (SDGs)
  • GRI Standards
Step 3

Discussion and approval by management

Discuss the lists from Step 2 and identify material issues at the Sustainability Committee

Materiality in the Nippon Denko Group

Details

  • Conduct initiatives to achieve carbon neutrality (reducing CO2 emissions)
  • Promote energy-saving
  • Use renewable energy
  • Use carbon offsets flexibly
Risk
  • Increased costs due to the introduction of carbon pricing, etc.
  • Increased production costs due to the introduction of decarbonization technology
  • Increased cost of procuring low-carbon raw materials and fuels
Opportunity
  • Enhance marketability by leveraging acclaim for our proactive approach and by responding to changes in market values
  • Promote research and development for decarbonization
  • Conduct activities to improve production efficiency
  • Environmental contribution activities for carbon offsets
Key Activity
  • Participation in the “platform for town development through decarbonization and reconstruction”
    (Ministry of the Environment)
  • Participation in the GX League
    (Ministry of Economy, Trade and Industry)
  • Full-scale adoption of virtually CO2-free electricity at the Koriyama Plant
  • Research on new reduction technologies for ferroalloy production
  • Adopted in the PS research phase of NEDO publicly solicited project in FY2023

Details

  • Contribute to society-wide CO2 reduction through business activities
  • Expand eco-friendly products
  • Create new businesses toward creating a sustainable society
  • Promote R&D to advance our technical capacity and enhance our ability to meet needs
Risk
  • Geopolitical risks in raw material procurement
    (impediments to dependable supply)
  • Obsolescence of existing technologies
  • Competitive deficits due to delays in accommodating a circular economy
Opportunity
  • Respond to increased environmental focus in purchasing behavior
  • Respond to increased need for recycling technology
  • Respond to expanding demand for materials that help save energy
  • Respond to expanding demand for relevant materials due to electrification of automobiles
  • Provision of products, technologies, and services that contribute to a decarbonized society
Key Activity
  • Allocate resources optimally for creating new businesses
  • Stable operations and production
  • Quality inspections
  • Invest in R&D proactively
  • Consider collaboration through M&As and with other companies, universities, and research institutions

Details

  • Hire and cultivate human resources, ensuring consistency between medium- to long-term management strategy and human resources strategy
  • Provide environments in which a wide variety of people can adapt and find their own ways to work with peace of mind
  • Conduct business management with respect for everyone’s human rights
Risk
  • Reduced production capacity due to turnover and lack of successors
  • Lowered social reputation due to delays in accepting diversity
  • Lost opportunities due to work-related accidents
  • Diminished trust from stakeholders due to a lack of consideration for human rights
Opportunity
  • Strategic hiring of the people the Group needs
  • Cultivation of human resources capable of adapting to changes in the business environment
  • Improvement of retention rates and employees’ will to contribute by taking the initiative to exhibit their skills
  • Improvement of corporate value by securing diversity and fostering inclusion in human resourcess
Key Activity
  • Strategically sustain and strengthen the hiring of new graduates and mid-career transferees
  • Improve employee engagement
  • Establish systems and environments that encourage diverse human resources to succeed
  • Efforts to encourage more active participation by women
  • Rigorous occupational safety and health
  • Establish trust-based relationships between labor and management
  • Promote awareness of human rights

Details

  • Raw material procurement with consideration for human rights and the environment
  • Efforts toward sustainable, dependable procurement
Risk
  • Difficulties in procurement
    (due to delays in response to social/ environmental issues)
  • Rising commodity prices
  • Incidents in supply chains caused by lack of consideration for society and the environment
  • Supply chain interruptions and surging raw material prices caused by abnormal/unseasonable weather
Opportunity
  • Strengthen supply chains
  • Increase in opportunities for fair and equitable trade
  • Increased demand for eco-friendly products based on awareness of green procurement
  • Formation of new markets
  • Stronger partnerships with dependable suppliers
Key Activity
  • Request cooperation from suppliers regarding our procurement policy
  • Evaluate and select suppliers
  • Evaluate procured materials (raw/finished materials)

Details

  • Enhance information pertaining to business policies, business strategies, sustainability, compliance, etc.
  • Improve corporate value through proactive disclosures
  • Disclosures to a broad range of stakeholders
Risk
  • Reduced corporate value due to insufficient quality or quantity of disclosures
Opportunity
  • Improvement of stakeholder trust through the enriched disclosure materials and enhanced transparency of disclosures
  • Improvement of corporate value through appropriate disclosures and dialogue
  • Increase in foreign investors through extensive of English language disclosures
Key Activity
  • Release of videos and transcripts of financial results briefing sessions
  • Disclosure regarding “Action to Implement Management that is Conscious of Cost of Capital and Stock Price”
  • Expansion of the range of information disclosed in English (such as brief reports on financial results, reference materials for financial results briefing sessions, and corporate governance reports)

Inquiries about Sustainability

  • For inquiries by phone

    +81-3-6860-6800

  • For inquiries via email

    Contact Form
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