Sustainability

Materiality and SDGs

In order to realize our ideal state in 2050 as set out in our long-term business plan “Atelier2050”, to be “a future-creating company that grows through seeking to enrich people and nature”, and “a group of co-creators that face challenges for change with a strong passion”, in FY2022, we reviewed the materiality that we need to address. With the aim of achieving sustainable development for society and the Nissan Chemical Group, we are managing our progress on an annual basis by using the KPIs up to FY2027 set in our mid-term business plan for “Vista2027” as indicators for sustainable management.

Materiality Identification Process

1. Gain Understanding About Social Issues and Social Changes

Social issues and social changes looking ahead to 2050 and issues to be addressed by Nissan Chemical were discussed across the Company in the “Business Planning Project” led by the President and the Vice President, and it was confirmed that there have been no major changes in social issues and social changes since the previous formulation.

Social Issues and Social Changes

2. Review of Materiality and Materiality Factors

With reference to evaluation items of ESG-related evaluation organizations such as SDGs, DJSI, and FTSE, and sustainability information disclosure guidelines such as SASB, we reviewed materiality and materiality elements based on the risks and opportunities of the Company. As a result, the Company has determined that materiality identified in the previous medium-term management plan" "Vista2021" "remains an important issue for the Company. On the other hand, in light of the priority of Nissan Chemical’s business base and the results of our activities under Vista2021, we have added “safety and disaster prevention” as a new materiality factor, and summarized into 30 materiality factors.

3. Management of Impact on Our Group

In regards to the 30 materiality factors, we considered and analyzed the social issues and social changes, and then made arrangements to manage the impact on the Group.

4. Exchange of Opinions with Directors and Audit & Supervisory Board Members, including Outside Officers

From the perspective of incorporating outside opinions, we exchanged opinions in intensive discussions with directors and audit & supervisory board members, including outside officers, regarding the materiality and materiality factors that had been reviewed in the Business Planning Project.

5. Identification of Materiality and Materiality Factors (through resolution at the Board of Directors)

The Board of Directors confirmed and resolved the appropriateness of the materiality, materiality factors, and key performance indicators (KPIs) for each materiality factor, which were identified based on the discussions in the Business Planning Project and the opinions of the officers.

Materiality

Efforts for Materiality and KPIs

Materiality	Materiality Factor	Major Initiatives	Target for FY2027	FY2022 Result
Provision of New Value for Helping to Enrich People’s Lives	Supply of environmental-friendly products and services	・Develop materials that contribute to the expansion of renewable energy ・Develop materials that contribute to the achievement of a circular economy ・Reduce the application amount of agrochemicals ・Introduce recyclable packaging materials ・Supply exhaust gas removal materials ・Supply disinfectants for water purification tanks ・Supply materials that enable reduction of oil and fat waste	Net Sales: +10％	・Net sales: +16% compared to FY2021
	Contribution to smart society	・Supply materials that contribute to higher capacity/speed of data communication and sensing	Net Sales: +55％	・Net sales: +6% compared to FY2021
	Contribution to food issues	・Supply agrochemicals to increase crop yields and conserve agricultural labor in food production ・Contribute to the maintenance of health of livestock	Net Sales: +15％	・Net sales: +22% compared to FY2021
	Contribution to improvement of the quality of life	・Supply disinfectants for drinking water ・Contribute to maintaining the health of companion animals	Net Sales: +15％	・Net sales: +34% compared to FY2021
	Contribution to health issues	・Supply generic drugs ・Offer contracted manufacturing and service for pharmaceuticals ・Develop materials for regenerative medicine market ・Develop drugs for intractable diseases	Net Sales: +5％	・Net sales: +4% compared to FY2021
	Rate of total sales of products and services that contribute to solving social issues in consolidated net sales Nissan Chemical Sustainable Agenda		Maintain at least 55%	・Above 55%
Strengthening of Nissan Chemical’s Business Base	Enhancement of R&D capability	・Accelerate R&D through the use of AI ・Expand core technologies ・Use open innovation further	Total number of patent applications (FY2022 to 2027): 2,500	・Number of patent applications: 378
	Improvement of products quality	・Prevent serious complaints ・Prevent quality fraud and data tampering	Number of serious complaints: Zero Attendance rate of quality training: At least 90%	・Number of serious complaints: 1 ・Attendance rate of quality training: 85%
	Maintenance and improvement of employees' health	・Promote measures against lifestyle-related diseases ・Implement mental health measures ・Conduct awareness activities for employees on maintaining their health ・Promote female's health	Rate of employees within appropriate weight※:At least 70% ※BMI (body mass index): 18.5 to 25.0	・68%
	Creation of a comfortable workplace	・Promote work-life balance ・Implement measures against harassment ・Provide support for childcare and nursing care, encourage male employees to take parental leave	Utilization rate for annual paid leaves: At least 80%	・81%
	Personnel retention and trainings	・Introduce a new personnel system (role evaluation system) ・Strengthen career development ・Enhance self-development support programs	Positive response rate in survey of employee attitude on human resource development: At least 65%	・60.5%
	Promotion of diversity	・Promote female's activities ・Recruit international students ・Promote employment of persons with disabilities	・Proportion of females in the regular position: At least 13% ・Proportion of female researchers: At least 18%	・Proportion of females in the regular position: 11.0% ・Proportion of female researchers in the regular position: 14.8%
	Promotion of fair-trading	・Hold in-house training sessions, and conduct other educational and awareness activities ・Conduct compliance educational and awareness activities	・Zero violations of antitrust laws ・Zero bribery of foreign public officials	・Number of violations of antitrust laws: 0 ・Number of bribery of foreign public officials: 0
	Promotion of CSR procurement	・Provide feedbacks on results of sustainable procurement survey ・Provide supports in improvement for suppliers that don’t meet the Company’s standards	Provision rate of supports in improvement for suppliers that don't meet the Company's standards: At least 90%	・Provided feedback to suppliers who responded to the previous mid-term business plan and those who responded in the first half of FY2022
	Adaptation to climate change	・Maintain and improve the resilience of business activities in the event of natural disasters	Update and maintain BCPs for products that account for 50% of ordinary income	・Updated or maintained BCPs for products that account for 41% of ordinary income
Continuous improvement of responsible care activities	Mitigation of climate change	・Reduce GHG emissions	GHG emissions: Reduce by at least 30% compared to FY2018 (3 years ahead of the target for FY2030)	・GHG emissions: Reduced by 9.8% from FY2018 level
	Promotion of occupational health and safety	・Strengthen occupational safety management	・Zero accidents requiring staff time off from work ・Number of occupational accidents: Reduce by half compared to FY2020	・Number of accidents requiring staff time off from work: 2 ・Number of occupational accidents: 7 (FY2020: 8) ・Held e-learning course on occupational safety (at Nissan Chemical and 2 Group companies)
	Biodiversity conservation	・Promote biodiversity conservation activities	Establish and operate Bio-Parks at Nissan Chemical’s plants	・Established the Saitama Plant Bio-Garden
	Management of chemical substances	・Comply with laws and regulations regarding the use of chemical substances	Continue zero serious violations of laws and regulations	・Number of serious violations of laws and regulations: 0 (maintained)
	Reduction of industrial waste and pollutant emissions	・Reduce industrial waste and pollutant emissions for final disposal	Reduce final disposal ratio at Nissan Chemical's plants (compared to FY2020)	・22.6% (FY2020: 14.3%)
	Sasety and disaster prevention	・Strengthen the management of safety and disaster prevention	・Zero fires, explosions and chemical spills ・Zero safety accidents	・Number of fire: 1, Number of explosions: 0, Number of chemical spills: 0 ・Number of safety accidents: 1

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