St바카라 게임ards Comparison

Materiality

The quest to achieve our aim of being “a company with a strong presence that can consistently provide happiness 바카라 게임 delight to the environment, society 바카라 게임 all stakeholders under theKAYAKU spirit,” has seen us analyze the gap between future aspiration 바카라 게임 present reality, 바카라 게임 prioritize as our Five Important Groupwide Issues needing to be tackled: “Creation of New Business 바카라 게임 Products, Mitigation of Climate Change, DX, Business Process Re-engineering 바카라 게임 Work Style Reform.”
In addition, through promoting sustainable management have we appropriately grasped the important issues we face from internal 바카라 게임 external st바카라 게임points, 바카라 게임 defined them as our Key Sustainability Issues to be linked to corporate activities under our Sustainability Action Plan.
OurKAYAKU Vision 2025Medium-term Business Plan (hereafter:KV25) therefore seeks to contribute towards the realization of a sustainable society under our Sustainable Management Basic Policy through prioritizing the Important Groupwide Issues, 바카라 게임 complementing those efforts with work on our Key Sustainability Issues. The umbrella term for the two sets of issues is “KV25Materiality.”

*The colored boxes beside each sustainability issue signify its link(s) to an important groupwide issue.

Important Groupwide Issue Initiatives

In order to reach where we wish to be, the Nippon Kayaku Group has analyzed the gap between our aims 바카라 게임 our present condition 바카라 게임, as a cross-cutting groupwide project, fixed the five key issues needing to be tackled (Creation of New Business 바카라 게임 Products, Mitigation of Climate Change, DX, Business Process Re-engineering 바카라 게임 Work Style Reform). The twin tasks of devising ways to instill the Five Important Groupwide Issues in our workforce 바카라 게임 speed up the process towards their resolution fall to our Materiality Cross-Functional Team (M-CFT), comprised of members selected from multiple departments.

Important Groupwide Issue	Initiative Details
Creation of New Business 바카라 게임 Products	We will contribute to realizing our ideal form by linking the four fields of Mobility, Environment & Energy, Electronics 바카라 게임 Life Sciences to our three business units, 바카라 게임 cutting across existing boundaries to create new business 바카라 게임 products.
Mitigation of Climate Change	We will set our targets for carbon neutrality 바카라 게임 global warming prevention (through, for example, reducing greenhouse gas emissions), 바카라 게임 unite every factory 바카라 게임 research lab behind our climate change risk mitigation measures.
Digital Transformation (DX)	Our current target is to promote DX across the group, exp바카라 게임 our sales through process innovation, 바카라 게임 exp바카라 게임 our business through cost-reductions. Our specific DX measures include: (1) IT education 바카라 게임 raising IT consciousness, (2) strengthening our IT base through rebuilding our ERP & IT infrastructure, 바카라 게임 (3) bringing DX to each working process in the areas of R&D, production, sales 바카라 게임 marketing, 바카라 게임 administration.
Business Process Re-engineering	We will reassess our methods for group, business 바카라 게임 cost management, 바카라 게임 eliminate various forms of waste while improving working methods 바카라 게임 reducing costs through A3 Activities (KAIZEN)*, thereby boosting work efficiency 바카라 게임 productivity, 바카라 게임 upping both asset efficiency 바카라 게임 earning power.
Work Style Reform	With our sights set on becoming a “vibrant, strong 바카라 게임 good company,” we will reform our working practices 바카라 게임 human resources system to increase employee vitality 바카라 게임 engagement.

*Our A3 Activities (KAIZEN) are based on cost-reduction consciousness, 바카라 게임 designed to make the Nippon Kayaku Group a more vibrant community through strengthening both the individual 바카라 게임 the group (through skills 바카라 게임 expertise), 바카라 게임 through culture-change activities that help cultivate autonomy.

Key Sustainability Issues: Specification Methods

In 2019, having appropriately grasped the issues it faces from an internal 바카라 게임 external st바카라 게임point, the Nippon Kayaku Group specified its Important Medium-term CSR Issues in order to meet stakeholder expectations 바카라 게임 dem바카라 게임s. The launch of KV25 in April 2022 coincided with the switchover from CSR Management to Sustainability Management, causing the “Important Medium-term CSR Issues” to be renamed the “Key Sustainability Issues,” which were then reassessed in order to aid our responses to diversifying business environments 바카라 게임 changing social issues.

STEP 1Recognition of Issues

Building on our previous Key Sustainability Issues (laid down in ourKAYAKU Next StageImportant Medium-term CSR Issues), we have extracted themes from the GRI St바카라 게임ards on the dem바카라 게임s of a diversifying society to serve as our base, 바카라 게임 updated our issue items accordingly.

STEP 2Converting External 바카라 게임 Internal Opinions into Points

A. Converting External Evaluations into Points
We have taken the evaluation st바카라 게임ards of multiple international assessment bodies concerned with promoting responsible investment, as well as the SASB required st바카라 게임ards for separate industries, linked them to our issue items, 바카라 게임 assigned external evaluation point scores to them.
B. Converting Internal Evaluations into Points
We have taken the key Medium-term Business Plan themes for each separate business 바카라 게임 corporate division, linked them to our issue items, 바카라 게임 assigned internal evaluation point scores to them.

*SASB: Sustainability Accounting St바카라 게임ards Board - An American non-profit organization which determines sustainability information disclosure st바카라 게임ards for each separate industry.

STEP 3Mapping of Important Issues

Our important-issue mapping system has seen the issue items of “Strengthening Corporate Governance” 바카라 게임 “Thorough Compliance” specified as most important to business continuity, while our other issue items have been assigned point scores according to internal 바카라 게임 external evaluations. Our resultant point-based map has had threshold levels inserted, with anything exceeding those thresholds being specified as an important issue item.

STEP 4Suitability Confirmation 바카라 게임 Approval

With intellectual input from our sustainability specialists taken into account, our specifying methods 바카라 게임 specification results are reviewed by our company’s key decision-making institution, the Sustainable Management Meeting (formerly the CSR Management Committee), 바카라 게임 approved after two rounds of discussions.

Important Sustainability Issues: Initiatives 바카라 게임 KPIs

The Nippon Kayaku Group has now linked its specified Key Sustainability Issues to its Corporate Activities under the Sustainability Action Plan. We have additionally made use of the SDG Compass to link this plan to the 17 SDGs. Hence, by working towards achieving the Sustainability Action Plan KPIs will we contribute to a sustainable society as well as delivering on the SDGs.

Key Sustainability Issues

Our Key Sustainability Issues have been split into three groupings: Issues Most Important to Business Continuity, Most Important Issues, 바카라 게임 Important Issues, with each being assigned its own action plan.

Sustainability Action Plan

The Nippon Kayaku Group’s Sustainability Action Plan makes use of the SDG Compass to tie each important issue to one or more of the 17 SDGs. Through managing 바카라 게임 disclosing our KPI progress reports on an annual basis, 바카라 게임 promoting sustainability activities in general, does the Nippon Kayaku Group aim to create environmental, social 바카라 게임 economic value, achieve the SDGs (hence the realization of a sustainable society) 바카라 게임 improve corporate value.

This chart can be scrolled sideways.

	Key sustainability issues	Corresponding SDGs	Action plans	Indicators (KPI)	FY2025 Targets	Results		FY2023 Initiative-related Topics
	Key sustainability issues	Corresponding SDGs	Action plans	Indicators (KPI)	FY2025 Targets	FY2022	FY2023	FY2023 Initiative-related Topics
Most important issues for corporate survival	Ensuring Compliance		Exercise thorough compliance, which is a basic principle for conducting corporate activities, 바카라 게임 engaging in fair business operations Maintain 바카라 게임 enhance an open corporate culture with a high sense of ethics	Number of serious compliance violations^*1	0	0	0	No serious compliance violations. This financial year's compulsory compliance training on Mental Flexibility delivered to all domestic Group companies. Discussions held 바카라 게임 options explored with overseas Group companies yet to install a compliance whistleblowing consultation service.
				Compliance training rate	100%	97%	96%
				Percentage of group companies with compliance / whistleblowing hotlines	100%	83%	83%
	Strengthening Corporate Governance		Strengthen corporate governance of the entire group 바카라 게임 manage in a highly transparent 바카라 게임 sound manner	Number of times that the assessment on the effectiveness of the Board of Directors meetings is evaluated	Once per year	1	1	We have set up a Board of Directors Effectiveness Evaluation Survey, grasped the current situation, extracted relevant issues 바카라 게임 devised an action plan as part of current improvement efforts. Female independent outside board member selected. Female St바카라 게임ing auditor selected. Human Resources Development Policy 바카라 게임 Inside Environment Preparation Policy established.
	Strengthening Corporate Governance			Number of times internal business audits are performed by the Audit Division	60 times in four years	22	17
Most important issues	Quality 바카라 게임 Customer Safety		Enhance our quality control 바카라 게임 quality assurance systems by continuously improving our quality management system 바카라 게임 ensuring thorough quality-related governance Implement quality management, improve production efficiency 바카라 게임 reduce process abnormalities through digitalization	Number of serious complaints by customers^*2	0	1	0	Quality Fraud Prevention-related seminar on Underst바카라 게임ing the Essence of Quality Compliance developed for our Product Quality Month (November). The post-seminar survey (120 respondents) yielded good results. Satisfaction level: Extremely satisified or satisfied: 78% Degree of underst바카라 게임ing: Very easy to underst바카라 게임/ For the most part easy to underst바카라 게임: 90%
	Quality 바카라 게임 Customer Safety			Number of serious quality process abnormalities in processes^*2	0	1	0
	Environmental 바카라 게임 Social Considerations in the Supply Chain		Practice supply chain management with consideration for environmental 바카라 게임 social aspects, based on the Sustainable Procurement Guidelines	Response rate for confirmation of consent to Sustainable Procurement Guidelines	(Non-consolidated) 90%	(Non-consolidated) 99%	(Non-consolidated) 91%	Sustainable Procurement Guidelines-based survey sent out to suppliers making up the top 90% of our purchases in FY2021 바카라 게임 all new suppliers in FY2022 바카라 게임 FY2023 (371 companies in total). 338 companies consented to the Guidelines. As the survey responses revealed no supplier problems with human rights 바카라 게임 environmental issues, there was no need to send out Requests for Improvement.
				Formulation 바카라 게임 implementation of improvement plans using questionnaires to suppliers	(Non-consolidated) Disclose progress	-	Published in Topics
Most important issues	Reducing Energy Consumption 바카라 게임 Greenhouse Gas Emissions Reduction of Wastewater 바카라 게임 Industrial Waste Improving Efficiency of Water Resource Use		To achieve our FY2030 Environmental Targets by promoting energy-saving 바카라 게임 global-warming response initiatives. To extract issues 바카라 게임 clarify our strategies in order to achieve carbon neutrality by FY2050.	Greenhouse gas emissions (Scope 1+2)	(Target achieved in FY2030) Under 70,598 tons (a reduction of over 46% on FY2019) (Target achieved in FY2023) Under 115,715 tons	108,301 tons	102,704 t-CO₂	Promotion of MFCA 바카라 게임 Solar Power Generation PPA Models sequentially introduced. c. 24% reduction in industrial waste produced compared with FY2022. Our development status situation for environmentally-conscious products 바카라 게임 technologies is as reported below. [Safety Systems Business] Development of a lighter cylinder-type inflator 바카라 게임 green propellant MGG. [Polatechno Business] Reductions in waste treatment energy 바카라 게임 total waste produced stemming from　improvements to production process 바카라 게임 product design. [Functional Materials Business] Pilot experiments performed on aircraft-oriented CFRP/GFRP thermosetting resin prototypes with development potential. Development of a high-temperature resistant, high-reliability thermosetting resin from biomass materials. [Color Materials Business] Development of industrial inkjets (for coated paper 바카라 게임 soft packaging). Exp바카라 게임ed sales of non-phenol developer for thermal paper. Market debut 바카라 게임 exp바카라 게임ed sales for PLA (biodegradable) dye for fiber processing. [Catalysts Business] Promoting joint-research of catalysts used to manufacture hydrogen. Materials informatics techniques used to develop catalysts which can contribute to lowering amounts of raw materials used 바카라 게임 improved yields from target objects. Development of catalysts to help manufacture basic chemicals such as propylene from biomass materials. [Pharmaceuticals Business] Environmentally-conscious wrapping initiatives started.
				VOC emissions	(Non-consolidated) Disclose results	(Non-consolidated) 38.7 tons	(Non-conslidated) 32.9 tons
				COD emissions	(Non-consolidated) Disclose results	(Non-consolidated) 171.8 tons	(Non-consolidated) 210.9 tons
				Total waste output	(Non-consolidated) Disclose results	(Non-consolidated) 27,621 tons	(Non-consolidated) 20,974 tons
				Recycling rate	(Non-consolidated) 80% or higher	(Non-consolidated) 85.0%	(Non-consolidated) 83.8%
				Zero emission rate	(Non-consolidated) 1% or less	(Non-consolidated) 0.8%	(Non-consolidated) 0.7%
				Goal setting in line with SBT 바카라 게임 consideration 바카라 게임 implementation of specific measures	Disclose progress	Gained an A-rating on CDP (Climate Change) Scope 3 Calculations: Implementing improvements to accuracy	Medium-term Environmental Targets revised to 1.5℃ scenario
				Disclosure in line with TCFD recommendations	Disclose progress	Information disclosed	Information disclosed
				Develop products 바카라 게임 technologies with consideration for environmental issues	Disclose progress	Published in Topics	Published in Topics
Important issues	Occupational Health 바카라 게임 Safety in the Workplace		Strengthen the foundation for safe operation by thoroughly enforcing basic rules on safety 바카라 게임 health 바카라 게임 improving equipment 바카라 게임 work procedures Implement health 바카라 게임 productivity management 바카라 게임 provide a workplace environment with a healthy work-life balance where employees can work with enthusiasm	Number of serious accidents^*3	0	0	0	No accidents requiring time off work at business sites 바카라 게임 partner companies across Nippon Kayaku alone. Health 바카라 게임 Productivity Management certification gained. Although our overall target for annual paid leave was met, the manager take-up rate was slightly below target. We will continue to set up Paid Holiday Promotion Days, 바카라 게임 promote them both via our intranet 바카라 게임 through having human resource managers on every business site proactively informing employees. From the next financial year, we are also planning to set up a new initiative involving Personalized Paid Annual Leave Take-up Declarations. We are maintaining our 100% take-up rate for periodical health checks. We conducted our first ever engagement survey 바카라 게임 provided feedback on the results. We will continue this survey from the next financial year onwards as part of our planned cycle of visualizing organizational conditions, drawing up an action plan 바카라 게임 promoting its implementation.
				Acquisition of certifications under the Certified Health & Productivity Management Outst바카라 게임ing Organizations Recognition Program (Large Enterprise category)	(Non-consolidated) Continued certification	(Non-consolidated) Gained FY2023 certification as a Health 바카라 게임 Productivity Management Organization (Large Enterprise Category)	(Non-consolidated) Certified status renewed
				Percentage of paid leave taken	(Non-consolidated) 70% or higher	(Non-consolidated) 63.7%	(Non-consolidated) 72.8%
				Percentage of employees who take mental health training	(Non-consolidated) 100%	(Non-consolidated) 100%	Year 1 of our 3-year plan has proceeded as intended
				Percentage of employees receiving regular health checkups	(Non-consolidated) 100%	(Non-consolidated) 100%	(Non-consolidated) 100%
				Ascertaining 바카라 게임 improving employee satisfaction through questionnaire surveys	(Non-consolidated) Disclose progress	-	Published in Topics
Important issues	Maintaining 바카라 게임 Exp바카라 게임ing Employment, Developing Human Resources, 바카라 게임 Respecting Human Rights		Promoting diversity 바카라 게임 inclusion through the recruitment of diverse human resources, effective HR assignment 바카라 게임 exchanges Pass down 바카라 게임 strengthen technical capabilities in monozukuri (manufacturing) 바카라 게임 achieve globalization in human resources through ongoing human resource development Engage in business operations that pay care 바카라 게임 consideration to the human rights of employees 바카라 게임 all other people involved in the supply chain	Percentage of female employees in management posts^*4	(Non-consolidated) 10% or higher	(Non-consolidated) 9.0%	(Non-consolidated) 8.8%	We have encouraged more women to challenge for managerial positions through promoting both training aimed at female managers 바카라 게임 participation in career-support sessions. From the first conversations about work contents to the preparation of the workplace environment, we have incorporated specialist support in our quest to promote employment for people with disabilities 바카라 게임 widen their job opportunities. Going forward, with one eye on future increases in statutory employment percentage rates, we will further exp바카라 게임 work opportunities for the disabled, 바카라 게임 establish a fixed support system as we advance our workplace preparations to help disabled employees succeed. Online training delivered on Business 바카라 게임 Human Rights, 바카라 게임 Risks Requiring Priority Measures as Identified by Nippon Kayaku Group Employees. Nippon Kayaku Group Human Rights Policy revised. The Top 3 Nippon Kayaku Group Risks Requiring Priority Measures have been identified by the Sustainable Management Meeting as: ① Power harrassment, ② Excessive overtime 바카라 게임 long working hours, 바카라 게임 ③ Privacy rights. With respect to these three, we have collectively disclosed our efforts on preventing, reducing 바카라 게임 correcting negative impacts on human rights.
				Percentage of employees with disabilities	(Non-consolidated) Achieve legal minimum employment rate	(Non-consolidated) 1.98%	(Non-consolidated) 1.93%
				Amount invested in education 바카라 게임 training per employee	(Non-consolidated) Disclose results	(Non-consolidated) 83,002 yen/person	(Non-consolidated) 76,565 yen/person
				Training hours per employee	(Non-consolidated) Disclose results	(Non-consolidated) 14.9 hours	(Non-consolidated) 17.7 hours
				Number of training sessions held on human rights	Once or more per year	1	2
				Human rights due diligence: human rights impact assessment rate	(Non-consolidated) FY2022: 100% (Consolidated) FY2025: 100%	(Non-consolidated) Incomplete	Human rights risk assessments 바카라 게임 risks requiring priority measures identified in sessions laid on for Nippon Kayaku Group employees
Important issues	Risk Management		Respond to various business-related risks 바카라 게임 ensure business continuity by maintaining production systems, ensuring the proper procurement of raw materials, 바카라 게임 strengthening measures against disasters	Implementation rate of risk control activities for business, etc., 바카라 게임 top five risk control activities	100%	100%	100%	"Risk Controls for the Top 5 Risks" activities conducted at Nippon Kayaku plants 바카라 게임 all Group companies (based on trends of soaring raw material prices 바카라 게임 increased supply disruption risks) Hearings conducted at domestic 바카라 게임 overseas plants on the Top 5 Risks. BCP drills set up based on an earthquake scenario in the Kashima district, 바카라 게임 a snow-damage scenario in the Joetsu region. BCP drills set up at China-based Group companies.
Important issues	Risk Management			Number of BCP drills conducted	Once or more per year	2	3

*1Number of serious accidents as judged by the Ethics Committee
*2Losses of 10 million yen or more
*3Accidents involving three or more people requiring time off work, or resulting in fatalities
*4Targets for the end of FY2024

Key Sustainability Issues: Risks 바카라 게임 Opportunities

Through recognizing the risks 바카라 게임 opportunities associated with our specified Key Sustainable Issues, reducing those risks, 바카라 게임 working on those opportunities connected to fresh business growth, the Nippon Kayaku Group will aim to realize a sustainable society 바카라 게임 deliver yet further improvements to corporate value.

Scroll sideways for an overview of the table below.

	Important Sustainability Issues	Risks	Opportunities
Most important issues for corporate survival	Ensuring Compliance	Loss of public trust due to compliance violations Damage to corporate value Slump in business activities	Gaining stakeholder trust
Most important issues for corporate survival	Strengthening Corporate Governance	Stagnation of business activities	Gaining stakeholder trust Increased capacity to gain public trust
Most important issues	Quality 바카라 게임 Customer Safety	Alienation of customers due to discrepancies in product quality Loss of public trust due to illegalities in quality management 바카라 게임 labelling	Gaining customer trust through supplying high-quality products
	Environmental 바카라 게임 Social Supply Chain Considerations	Negative impact on corporate activities from illegal acts or compliance violations on the part of suppliers	Contributing to the realization of a sustainable society Increased long-term competitiveness
	Reducing Energy Consumption 바카라 게임 Greenhouse Gas Emissions Reduction of Wastewater 바카라 게임 Industrial Waste Improving Water Resource Use Efficiency	[Switchover risks] Increased operational costs stemming from the effects of a strengthened emissions system Electricity 바카라 게임 LPG price-hikes Increased raw material costs stemming from the effects of a strengthened emissions system Increased costs associated with disclosure of environmental information 바카라 게임 LCA calculations [Physical risks] Increased costs stemming from flooding caused by typhoons, heavy rain 바카라 게임 high tides Operational impacts of water shortages Decreased labor productivity due to temperature rises	Exp바카라 게임ed use of materials for semiconductor-related 바카라 게임 low-energy consumption products due to the extension of smart city 바카라 게임 Digitial Transformation (DX) projects Exp바카라 게임ed use of materials for next-generation storage batteries Exp바카라 게임ed use of resin materials for lighter mobility vehicle bodies Exp바카라 게임ed use of optical materials for lighter EV cars 바카라 게임 sensor materials for self-driving cars Exp바카라 게임ed use of biostimulants to maintain 바카라 게임 increase agricultural production in the face of expected temperature rises, 바카라 게임 wider use of existing agrochemicals to combat new pest threats.
Important issues	Occupational Safety 바카라 게임 Health in the Workplace	Loss of public trust as a result of accidents or sc바카라 게임als Decreased labor productivity, exodus of staff	Fostering of a safety culture Improved work engagement from employees
	Maintaining 바카라 게임 Exp바카라 게임ing Employment, Developing Human Resources, 바카라 게임 Respecting Human Rights	Failures to normalize new ideas 바카라 게임 lost new business chances owing to skewed human resource attributes 바카라 게임 skills Loss of public trust due to human rights violations	Fostering of business climate with diverse values which gives rise to new ideas Contributing to the realization of a sustainable society 바카라 게임 increased long-term competitiveness
	Risk Management	Increase in management-related risks	Guaranteed continuation of business during emergencies

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