ESG Management

Communication with Stakeholders

In addition to promoting understanding regarding the NGK Group among customers, suppliers, shareholders, investors, regional communities, governments, international organizations, universities, research institutes, and employees, we are continuously improving our activities and initiatives through dialogue with all of our stakeholders.

Basic Approach

In the NGK Group Corporate Business Principles, our commitment to “Disclosure of Company Information and Accountability” as a part of stakeholder communication is expressed through the following.

Endorsement and Participation in Initiatives

Based on our corporate policy, NGK is striving to provide better value through our business activities to help achieve a sustainable society. We are actively involved in international initiatives to help resolve global social challenges as a responsible corporate citizen.

NGK Group Signs UN Global Compact

The NGK Group is a signatory to the United Nations Global Compact, which advocates for independent action on the part of companies, endorsed by the United Nations. We believe that addressing a broad range of social problems through our business activities, while measuring progress against indicators such as the Sustainable Development Goals (SDGs), is an important corporate social responsibility.

UN Global Compact

Task Force on Climate-Related Financial Disclosures (TCFD)

In February 2020, the NGK Group announced our support for recommendations issued by the Task Force on Climate-Related Financial Disclosures (TCFD) created by the Financial Stability Board (FSB). Since then, we have evaluated how to apply the TCFD framework towards resolving issues facing NGK Group operations, such as the risks and opportunities posed by climate change, and towards necessary information disclosure.
Below, we disclose information related to scenario-specific analyses conducted based on the four themes outlined in the TCFD recommendations: governance, strategy, risk management, and metrics and targets.
We will continue to expand analysis work and enhance information disclosure as part of our commitment to communicating with our stakeholders. We will accurately identify climate change-related influences on Group operations and implement response measures to promote sustainable growth for our business.

Information Disclosure Based on TCFD Recommendations

Task Force on Climate-Related Financial Disclosures (TCFD)

SBTi（Science Based Targets initiative）

In April 2022, NGK submitted a commitment letter to the SBTi (Science Based Targets initiative), the certification organization for Science Based Targets (SBT). Going forward, we will formulate a reduction plan for Scope 3 in addition to Scope 1 and 2. Once our science based targets (SBT) have been approved, we will actively encourage our suppliers to pursue CO₂ emissions reductions.

SBTi（Science Based Targets initiative）

Scope 3 GHG Emissions

Environmental Data Collection

RE100

RE100 (100% Renewable Electricity) is a global initiative made up of companies that aim to use renewable energy to power all of their operations. We joined the initiative in October 2022. The NGK Group identified carbon neutrality as one of the social issues to be addressed in its mid- to long-term vision “NGK Group Vision: Road to 2050.” In the “NGK Group Environmental Vision” formulated at the same time, the Group set the target of net zero CO₂ emissions by 2050 and has been working on expanding its use of renewable energy as a strategy to achieve this target.

RE100

Other Initiatives We Participate In

Japan Climate Leaders’ Partnership（JCLP）

Keidanren Initiative for Biodiversity Conservation

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Position on SDGs

Ever since its foundation, the NGK Group has pursued business in the energy, ecology, and electronics sectors in an effort to keep nature’s air and water clean and thus help people live a comfortable, healthy life. Many of our technologies and products contribute to the SDGs, and we will continue to provide new value by leveraging our unique ceramic technologies towards the realization of a sustainable society.

Goals		Value provided by the NGK Group
	End poverty in all its forms everywhere	Creating appropriate employment helps to end poverty The NGK Group’s climate change countermeasures help mitigate natural disasters
	End hunger, achieve food security and improved nutrition, and promote sustainable agriculture	The social infrastructure created by the NGK Group’s products helps secure equal access to work opportunities
	Ensure healthy lives and promote well-being for all at all ages	High-output, high-efficiency semiconductor lasers using gallium nitride (GaN) wafers are a substitute for ultra-high-pressure mercury lamps, thus contributing to reduced use of mercury Micro-lenses are increasingly used instead of mercury in UV LED light sources for applications such as the sterilization of water and air, thus contributing to reduced use of mercury Ceramics for purifying automobile exhaust make exhaust gas clean
	Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all	Creating appropriate employment gives people the chance to have equal access to education
	Achieve gender equality and empower all women and girls	The social infrastructure created by the NGK Group’s products helps provide more opportunities for women to enhance their abilities Securing equal opportunities for women to participate and be leaders in society
	Ensure availability and sustainable management of water and sanitation for all	Ceramic membrane filters provide highly safe water Ceramic membrane filters purify wastewater
	Ensure access to affordable, reliable, sustainable, and modern energy for all	Insulators are indispensable to stable power supply NAS batteries allow stable supply of renewable energy Ceramics for purifying automobile exhaust make exhaust gas clean, thus enabling clean usage of fossil fuels DCB and AMB substrates support stable power supply in EVs and renewable energy applications that use power modules
	Promote sustained, inclusive and sustainable economic growth, full and productive employment, and decent work for all	Creating appropriate employment and providing employees with a satisfying work environment contributes to economic growth
	Build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation	Thin lithium-ion rechargeable batteries provide power for the new IoT generation Ceramics used in electronics make ICT cheap and ubiquitous Ceramics for semiconductor manufacturing equipment let the semiconductor industry be the foundation for modern daily life Metal-related products are widely used in mobile phones, automobiles, industrial equipment, and other devices that undergird modern life
	Reduce inequality within and among countries	We prevent discrimination and take prompt and appropriate action when violations occur
	Make cities and human settlements inclusive, safe, resilient, and sustainable	NAS batteries enable innovation in urban energy management for the creation of sustainable cities
	Ensure sustainable consumption and production patterns	We efficiently use the natural resources used to make ceramics
	Take urgent action to combat climate change and its impacts	NAS batteries aid in the fight against climate change by allowing stable supply of renewable energy DCB and AMB substrates support stable power supply in renewable energy applications that use power modules
	Conserve and sustainably use the oceans, seas, and marine resources for sustainable development	Ceramic membrane filters purify wastewater to prevent marine pollution
	Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss	We protect biodiversity on land owned by the NGK Group
	Promote peaceful and inclusive societies for sustainable development, provide access to justice for all, and build effective, accountable and inclusive institutions at all levels	We comply with the rules and regulations of the countries and regions in which we do business, and ensure respect for and strict compliance with international treaties
	Strengthen the means of implementation and revitalize the global partnership for sustainable development	We encourage and promote effective partnerships among governments, corporations, and society as a whole