Sustainability
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
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)
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

Key ESG Activity Themes in FY2022
Key themes | Main activities | Activity leader |
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Environmental initiatives aimed at achieving NGK Group Environmental Vision |
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Environment Action subcommittee |
Climate change countermeasures |
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TCFD subcommittee |
Initiatives on respect for human rights |
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HR Committee Environment, Safety & Health Committee |
Supply chain rollout |
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Supply Chain subcommittee HR Committee |
Continuous review of the governance system |
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Governance subcommittee |
Social Contribution Activities |
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Social Contribution Activities subcommittee |
FY2021 ESG Committee Achievements
Times | Date | Topics of discussion |
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1st | April 2021 |
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2nd | June 2021 |
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3rd | July 2021 |
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4th | October 2021 |
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5th | November 2021 |
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6th | December 2021 |
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7th | February 2022 |
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8th | March 2022 |
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9th | March 2022 |
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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.

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 Code of Conduct, our commitment to “Disclosure of Company Information and Accountability” as a part of stakeholder communication is expressed through the following.
Disclosure of Company Information and Accountability
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We will increase healthy and transparent management by active disclosure of information and discussion with stakeholders.
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Stakeholder Engagement
Stakeholders | Approach | Communication (objectives) | Communication (methods) |
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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. |
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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. |
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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. |
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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. |
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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. |
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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. |
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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. |
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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 | |
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End poverty in all its forms everywhere |
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End hunger, achieve food security and improved nutrition, and promote sustainable agriculture |
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Ensure healthy lives and promote well-being for all at all ages |
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Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all |
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Achieve gender equality and empower all women and girls |
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Ensure availability and sustainable management of water and sanitation for all |
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Ensure access to affordable, reliable, sustainable, and modern energy for all |
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Promote sustained, inclusive and sustainable economic growth, full and productive employment, and decent work for all |
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Build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation |
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Reduce inequality within and among countries |
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Make cities and human settlements inclusive, safe, resilient, and sustainable |
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Ensure sustainable consumption and production patterns |
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Take urgent action to combat climate change and its impacts |
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Conserve and sustainably use the oceans, seas, and marine resources for sustainable development |
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Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss |
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Promote peaceful and inclusive societies for sustainable development, provide access to justice for all, and build effective, accountable and inclusive institutions at all levels |
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Strengthen the means of implementation and revitalize the global partnership for sustainable development |
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