ESG Management

NGK Group Basic Sustainability Policy

Since our founding, the NGK Group has worked to solve social issues through our unique ceramic technologies. Based on the NGK Group Philosophy of "Enriching Human Life by Adding New Value to Society," we aim to continue contributing to the achievement of a sustainable society and to earn the trust of society by meeting its expectations toward us. We have incorporated this thinking into the NGK Group Basic Sustainability Policy in April 2023.

NGK Group Basic Sustainability Policy

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Identification of Materiality

NGK Group’s Materiality

Based on our Basic Policy on Sustainability, the NGK Group identified its Materiality in April 2023. We have identified these as issues that are important to both our Group and the stakeholders and as social issues on which our Group should particularly place focus. By efficiently and effectively utilizing our limited management resources to address these material issues, our Group seeks to maximize value creation for both the Group and our stakeholders. We believe that doing so will lead to the realization of our NGK Group Vision.

Materiality identification process

Step 1: Listing of issues

With reference to evaluations by ESG evaluation bodies, international frameworks and guidelines such as the GRI Standards and the SDGs, and other resources, we created a list of environmental, social, and governance issues. Of these, we listed those environmental and social issues that have a significant relevance to our Group's business, while excluding governance issues as items that should naturally be addressed by the organization as a whole.

Step 2: Evaluation of the importance of issues

We established a working group composed of representatives from different departments within the Company. The working group mapped the listed issues along two axes of "degree of impact on business" and "demands and expectations of stakeholders," and then conducted evaluations of the issues. (Evaluation of the latter axis included evaluation by outside experts.)
Based on the evaluation results, the ESG Management Committee held deliberations and identified candidates for Materiality.
For these candidates, the working group organized the risks and opportunities posed to the NGK Group, particularly in terms of degree of impact on our business, and reviewed our major initiatives.

Step 3: Confirmation of validity and identification of Materiality

For all of the materiality candidates, the working group discussed what sort of value the NGK Group wishes to bring to society by addressing the issues. To check for omissions in the scope of consideration as well as consistency with company-wide targets, the working group then laid out the relationships between the issues and our Group Vision, and prepared a draft version of the materiality items.
Based on that draft, the items were then deliberated by the ESG Management Committee in terms of their validity, after which the Board of Directors held deliberations and issued a resolution.

Materiality system

Materiality system (PDF: 203 KB)

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ESG Action System

ESG (Environmental, Social, Governance) is central to the management of the NGK Group. Amidst ongoing overseas business expansion, we seek to ensure greater managerial transparency and autonomy within an environment which cultivates within every member of the NGK Group a sense of fairness accompanied by decision-making and action in accordance with international norms.
In 2019, the ESG Committee was established as a body for information sharing, opinion exchange and policy discussion among senior management. In 2021, the ESG Management Department was established in order to handle lateral implementation of ESG-related activities across the NGK Group and to strengthen information dissemination about the activities. Furthermore, in April 2022, the ESG Committee was reorganized as the ESG Management Committee, which is chaired by the President, as an enhanced body to handle initiatives on sustainability issues that incorporate elements of ESG and the SDGs and oversee the Board of Directors.

ESG Action System

This is a diagram of the ESG Action Framework. Under the ESG Management Committee chaired by the President, seven committees discuss ESG issues.

Key ESG Activity Themes in FY2022

Key themes Main activities Activity leader
Environmental initiatives aimed at achieving NGK Group Environmental Vision
  • Internal carbon pricing towards net zero CO2 emissions, energy-saving, shift to non-fossil fuels, use of renewable energy
  • Visualization of greenhouse gas emissions during the lifecycle of main products
  • Formulation and follow-up on 5-Year Environmental Action Plan and annual plan
  • Response to a recycling-oriented society
  • Response to biodiversity
Environment Action subcommittee
Climate change countermeasures
  • Specific initiatives on the four themes outlined in the TCFD recommendations: governance, strategy, risk management, and metrics and targets
TCFD subcommittee
Initiatives on respect for human rights
  • NGK Group human rights due diligence
  • Promotion of hiring, cultivation of human resources and improvement of labor practices
  • Diversity and inclusion
HR Committee
Environment, Safety & Health Committee
Supply chain rollout
  • Implementation of CSR procurement (human rights, labor, environment, and fair business activities, etc.)
  • Assessment of Scope 3 in carbon neutrality
Supply Chain subcommittee
HR Committee
Continuous review of the governance system
  • Integration of management with sustainability issues
  • Strengthening of the supervisory function of the Board of Directors
  • Compliance with Corporate Governance Code
  • Ensuring of appropriate information disclosure and transparency
Governance subcommittee
Social Contribution Activities
  • Summary and disclosure on NGK Group’s social contribution activities
  • Support for foreign nationals
Social Contribution Activities subcommittee

FY2021 ESG Committee Achievements

Times Date Topics of discussion
1st April 2021
  • Decisions on FY2021 action plans and key themes
2nd June 2021
  • Review of the operations of the Board of Directors and Executive Committee
3rd July 2021
  • Planning and progress of FY2021 Net Zero CO2 Emissions project
  • Summary of the fourth 5-Year Environmental Action Plan, and annual targets of the fifth 5-Year Environmental Action Plan
4th October 2021
  • Planning and progress of the FY2021 Carbon Neutrality (CN) new business promotion project
5th November 2021
  • Social Contribution Activities
  • Compliance with the revised Corporate Governance Code
6th December 2021
  • Report on Net Zero CO2 Emissions project
  • Progress report on the TCFD Task Force
7th February 2022
  • Towards achieving ESG management (activity outline for next fiscal year)
8th March 2022
  • Measures to improve ESG rating
9th March 2022
  • Information disclosure based on TCFD recommendations
  • Support for Science Based Targets (SBT) and Renewable Energy 100 (RE100)

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.

This is the logo of the UN Global Compact

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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.

This diagram illustrates the relationship between the NGK Group and its stakeholders. NGK Group is surrounded by customers, suppliers, shareholders, investors, regional communities, governments, international organizations, universities, research institutes, and employees.

Basic approach

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

Stakeholder Engagement

Stakeholders Approach Communication (objectives) Communication (methods)
Customers To earn and maintain the trust of customers, we engage in the creation of new value through the provision of products and services realizing global environmental conservation and social safety and peace of mind from a long-term and global perspective.
  • Enhancement of customer satisfaction
  • Quality improvement
  • Official website
  • Contact desk
  • Participation in exhibitions
  • Open innovation
Procurement Partners With a basic policy centered on the three principles of openness and fairness, partnership, and relationship with society, the NGK Group is engaged in fair, free, and transparent business transactions with the procurement partners in our supply chain. We also established a supplier helpline to provide unwavering support for important inquiries in an effort to build and maintain fair supplier relationships.
  • Realize fair, free, and transparent transactions
  • Exchange information with suppliers
  • Establish better supply chain
  • Financial results presentations
  • Supplier helpline
  • Individual visits to suppliers in Japan and overseas
Shareholders and Investors The NGK Group aims to meet expectations for enhanced corporate value through dialogues and efforts to disclose information pertaining to management, finance, products, and services in a timely and appropriate manner.
  • Enhancement of corporate value
  • General Meeting of Shareholders
  • Information sessions
  • Individual visits and interviews
  • Participation in IR events
  • Responding to ESG investment
  • Official website
Employees The NGK Group strives to create a safe and comfortable workplace environment with respect for employee humanity. We also support the growth of human resources and fair treatment enabling each employee to maximize their skills.
  • Respect for the human rights of employees
  • Development of safe and comfortable workplace environments
  • Conducting of surveys on workplace environment and employee satisfaction
  • Penetration of corporate philosophy and policies
  • Company newsletter
  • Global MIZUHO English-version company newsletter
  • In-house video newsletter
  • Intranet
  • Labor-Management Advisory Board meetings, regular Labor-Management Council meetings
  • Survey on workplace vitality
  • CRS (Corporate Risk Survey)
  • Helpline
  • Hotline
Regional Communities We proactively engage in social contribution activities in response to community needs with the intent of becoming a corporate citizen trusted by society with concern for social issues in all countries and regions where we do business.
  • Contribution to regional communities as a trusted corporate citizen
  • Collaborative activities with NPOs, etc.
  • Volunteer activities by employees
  • Social contribution activities in cooperation with labor unions
  • Invitation to plant tours and events
Governments and International Organizations We proactively participate in international initiatives and other activities in order to realize mutual cooperation as key actors seeking to resolve social issues.
  • Promotion of initiatives to resolve social issues
  • Participation in international initiatives
Universities and Research Institutes Through research and educational activities based on industry–academia collaboration, we have been pushing forward with the development of scientific technologies and other technologies that will contribute to resolving social issues.
  • Development of scientific technologies
  • Development of technologies that will contribute to solving social issues
  • Joint research

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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.

This is the logo of the SDGs.
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
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
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

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