Third-Party Opinion

Noteworthy points in NTN Report 2025

In March 2025, the SSBJ published sustainability disclosure standards. These standards share the same perspective as NTN Report 2025 (hereinafter, ”NTN Report”), which targets capital markets. Therefore, based on the SSBJ standards, the three notable points of the NTN Report are as follows.

(1) Analysis of risks and opportunities

Under the SSBJ standards, material sustainability-related risks and opportunities are subject to disclosure. In the NTN Report, risks and opportunities are classified by business environment, with disclosure of their timing of occurrence, degree of impact, and countermeasures for each. Additionally, materiality and the Medium-term Management Plan are presented in an integrated manner, including human capital management (P.18-19). This makes visible the connections to core content, which are specific disclosure items related to risks and opportunities.

(2) Story-based core content

The NTN Report centers on a story toward value creation, with disclosure of four ”core contents” developed around this narrative.
Regarding ”governance” and ”risk management,” the report discloses company-wide integrated governance and risk management systems that include sustainability responses. Going forward, I believe the overall story of the report will be further deepened by demonstrating the relationship with ongoing structural reforms and the attitude of actively utilizing ”opportunities” to enhance corporate value, in addition to risk response.
The disclosure content corresponding to ”strategy” spans a wide range of areas, including the long-term vision in ”Our Story” (P.21), strategies supporting transformation (P.22), business strategies (P.32, 36), the roadmap in ”Co-creation with Stakeholders” (P.45), and human resource strategy (P.53). In particular, by considering the impact of risks and opportunities (P.18–19) on business models and value chains, their impact on strategy and decision-making, and even resilience perspectives, this is expected to lead to supply chain strengthening in response to sustainability challenges, as well as business structure transformation and business model reinforcement.
From the ”metrics and targets” and their results (P.20, 54, 78), it can be seen that FY2024 targets have been steadily achieved. Additionally, future directions are specifically indicated, including roadmaps for measures toward CO₂ emissions reduction.

(3) Initiatives for water resources and biodiversity

In the NTN Report, initiatives for water resource management and biodiversity conservation, which are attracting attention as the next themes of sustainability disclosure standards, have been newly disclosed (p.51). The report introduces initiatives such as water risk management based on water stress analysis and the construction of reuse systems in areas with high water stress. Additionally, the identification of business sites with high risk from a biodiversity perspective and the advancement of specific countermeasures can be said to contribute to the transformation to sustainable and resilient business models.

Management changes brought about by sustainability standards

Disclosure has the power to change corporate behavior. For example, information disclosure related to value chains, such as Scope 3 CO₂ emissions, leads to supply chain reviews. This simultaneously becomes an opportunity to discover new business opportunities. Collaboration beyond the framework of corporate groups is essential for achieving carbon neutrality, and sustainability disclosure standards provide an opportunity to review business approaches across the entire value chain.
What these standards require is the reconstruction of strategies and business models that maximize revenue opportunities while controlling sustainability-related risks. By enhancing both economic value and sustainability value, I expect NTN will further strengthen its competitiveness and contribute significantly to the realization of a sustainable economic society.