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CSR activities in FY2021

Identify Materiality

UN Global Compact

In March 2015, we signed the United Nations Global Compact, which is a global framework for the international community to achieve sustainable growth, and we are aiming to realize the SDGs. In December 2020, we identified 13 items of materiality that our group should prioritize toward the realization of the SDGs. The materiality is linked to the two perspectives of "Contribute to society through creation of original technologies" and "Form management systems / corporate organization which are essential for NTN, as a global company" set forth in our corporate philosophy. The former is to meet the expectations of society through our products and services, and the latter is the foundation to support ESG management. In the fiscal year ended March 31, 2022, we established measures and KPIs for each materiality and are working to achieve these goals. These initiatives have been reported to the Board of Directors based on consideration by the Sustainability Committee, which is organized across departments.

Identification process
Materiality

Identification process

Step 1　Extraction of materiality candidates

  • Extract social issues with reference to the GRI Standard, which is an international framework in the field of sustainability.
  • Extract items that are candidates for materiality based on the direction of structural changes that have a major impact on the economy / environment / society and the company's efforts.

Step 2　Evaluation and analysis of materiality candidates

  • Evaluate the 99 items extracted in Step 1 on a three-point scale from the perspectives of "expectations from society" and "relevance to our business."
  • Regard items with high evaluations as materiality proposals and organize them into "positive impact" and "negative impact."

Evaluation and analysis of materiality candidates

Step 3　Dialog with academics and experts

  • Collect suggestions and opinions from academics and experts in the field of CSR / sustainability, as well as Outside Directors regarding ideas about materiality identification and ESG strategies that should be focused on.

Step 4　Validity assessment in overseas affiliated companies

  • Conduct a questionnaire survey targeting the presidents of our overseas affiliated companies and confirm that all overseas affiliated companies agree with the materiality proposals.

Step 5　Identify materiality

  • The Board of Directors resolved 13 items of materiality.

Materiality

Contribute to society through creation of original technologies (Strengthen positive impacts)

Materiality KPIs and targets for the fiscal year ending March 31, 2023
Environment Reduce energy loss
  • Development related to low friction, miniaturization and weight reduction of products for automobiles and industrial machinery: Completion of development themes
  • Development related to module products for EVs and electrification: Completion of development themes
Realize a sustainable society using natural energy
  • Development related to products and services that contribute to the stable operation of wind turbines: Completion of development themes
Social Provide safety and comfort
  • Development related to robot-related modules: Completion of development themes
  • Raise awareness of independent power supply units and implement proposal activities for disaster mitigation and disaster prevention

Form management systems / corporate organization which are essential for NTN, as a global company (Reduce negative impacts)

Materiality KPIs and targets for the fiscal year ending March 31, 2023
Environment Respond to climate change
  • Reduce CO2 emissions in business activities (Scope 1 and 2): 50% reduction by the fiscal year 2030 (compared to the fiscal year 2018)
  • Reduce CO2 emissions in business activities (Scope 1 and 2): Achieve carbon neutrality by the fiscal year 2035
  • Reduce CO2 emissions in business activities (Scope 3): Achieve carbon neutrality by the fiscal year 2050
Resource recycling and pollution prevention
  • Water consumption intensity: 4.30 ㎥/million yen (Japan) 3.14 ㎥/million yen (Overseas)
  • Waste generation intensity: 164 kg/million yen (Japan) 279.4 kg/million yen (Overseas)
  • Recycling rate: 97.9% (Japan) 96.9% (Overseas)
Social Improve the reliability of products and services (Quality assurance, stable supply)
  • Maintain high level of customer satisfaction: More than 90% of responses for "Excellent" and "Good"
  • Maintain 100% certification for quality management systems (ISO9001/IATF16949)
    *Applies to domestic and overseas consolidated manufacturing subsidiaries (excluding bases that have not started mass production).
  • Number of participants in specialized quality education courses: 100 or more
  • Progress in restructuring the domestic core systems
    [1] Sales and logistics, financial accounting, human resources and salaries, and technology areas: Introduction completed as of the fiscal year ended March 31, 2022
    [2] Production area: Introducing by site (completed at all sites in March 2024)
Procurement activities with an emphasis on environment and society
  • Conduct CSR questionnaires for suppliers continuously and maintain and improve achievement level of results
Respect for human rights
  • Analyze and evaluate the results of questionnaires of overseas affiliates
  • Survey on the situation of foreign workers working in Japan (Monitoring)
Promote safety and health
  • Operate occupational safety and health management system continuously: 6 domestic manufacturing affiliates have acquired GSC certification (as of March 2022, 2 companies have acquired certification)
  • Maintain "White 500" certification for Health and Productivity Management Organization (Large enterprise category)
  • Achievement of the annual plan of the Risk Survey targeting manufacturing sites: 100%
Human resource development
  • Number of participants in "NTN Next Leader Program": 50
  • Holding of "NTN PROUD AWARD," as ESG Corporate Award
Promote diversity
  • Ratio of female managers: 9% for NTN (target for the fiscal year ending March 31, 2024)
  • Ratio of male childcare leave acquisition: 30% (target for December 2024)
Governance Thorough compliance
  • Annual number of Compliance Committee meetings held: 2
  • Helpline recognition level in survey of compliance awareness: 85% or more
Strengthen governance
  • Assessment of effectiveness of the Board of Directors and improvement