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

The NGK Group identified its Materiality in April 2023 based on the NGK Group Basic Sustainability Policy. Our overall perspective on materiality is laid out below.


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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 a body reporting to the Board of Directors for strengthening initiatives on sustainability issues that incorporate elements of ESG and the SDGs.

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.

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NGK Group ESG Management

The NGK Group views ESG (Environmental, Social, Governance) as the core of business management. We define materiality based on the NGK Group Basic Sustainability Policy. And we work to enhance the effectiveness of governance to serve as the foundation of value creation as we promote environmental and societal initiatives.

NGK Group Basic Sustainability Policy Materiality

Key ESG Activity Themes in FY2023

Key themes Main activities Activity leader
Environmental initiatives aimed at achieving Vision
  • Internal carbon pricing towards net zero CO2 emissions, energy-saving, shift to non-fossil fuels, use of renewable energy
  • 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
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
  • Reviewing purchasing policy and Supply-Chain CSR Guidelines
  • Implementation of CSR procurement (human rights, labor, environment, and fair business activities, etc.)
  • Supply chain human rights due diligence
  • 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
  • Formulating and revising policies related to the Corporate Business Principles, Code of Conduct and sustainability
  • Ensuring of appropriate information disclosure and transparency (complying with domestic and international standards for disclosure)
Governance subcommittee
Social Contribution Activities
  • Formulating, implementing, and carrying out NGK Group social contribution activities policy
  • Support for foreign nationals
Social Contribution Activities subcommittee

FY2022 ESG Management Committee Achievements

Times Date Topics of discussion
1st April 2022
  • Positioning of ESG Management Committee
  • Awareness of sustainability issues facing our group
  • Annual action plans for each subcommittee
2nd May 2022
  • ESG Management Lecture "Sustainability Management to Increase Corporate Value"
  • Handling prime market requirements in revised corporate governance code
  • Governance report
3rd June 2022
  • Fifth 5-Year Environmental Action Plan
  • Green bond reporting
  • Handling ESG assessment
  • Production status report on NGK Report 2022
4th September 2022
  • Status of response to Group ESG issues
  • Environmental Value Acquisition Plan
  • Organizing policy structure with regards to sustainability
  • Identifying materiality
5th December 2022
  • Status of activities towards updating TFCD disclosure
  • Identifying materiality (interim discussion)
  • Formulating Basic Sustainability Policy (interim report)
  • Organization of policy system for sustainability (status report)
  • Formulation of NGK Group Tax Policy
  • Sustainability information disclosure through annual securities report
6th March 2023
  • Formulation of Sustainability Policy
  • Identifying materiality
  • Information disclosure based on TCFD recommendations
  • Social contribution activities
  • Creation of NGK Report 2023 integrated report

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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 Corporate Business Principles, 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
Suppliers 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 suppliers 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

Any report on potential concerns pertaining any of our Business activities will be handled confidentially and will not lead to any negative consequences for anyone who wishes to make such a report.

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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

This is the logo of the 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)

This is the logo data for the 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 (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.


This is the logo of the 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.

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
  • 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

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