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.
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.
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
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.
Key ESG Activity Themes in FY2023
|Environmental initiatives aimed at achieving Vision
|Environment Action subcommittee
|Initiatives on respect for human rights
Environment, Safety & Health Committee
|Supply chain rollout
|Supply Chain subcommittee
|Continuous review of the governance system
|Social Contribution Activities
|Social Contribution Activities subcommittee
FY2022 ESG Management Committee Achievements
|Topics of discussion
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.
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.
|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.
|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.
|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.
|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.
|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.
|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.
|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.
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.
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.
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.
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.
Scope 3 GHG Emissions
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.
Other Initiatives We Participate In
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.
|Value provided by the NGK Group
|End poverty in all its forms everywhere
|End hunger, achieve food security and improved nutrition, and promote sustainable agriculture
|Ensure healthy lives and promote well-being for all at all ages
|Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
|Achieve gender equality and empower all women and girls
|Ensure availability and sustainable management of water and sanitation for all
|Ensure access to affordable, reliable, sustainable, and modern energy for all
|Promote sustained, inclusive and sustainable economic growth, full and productive employment, and decent work for all
|Build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation
|Reduce inequality within and among countries
|Make cities and human settlements inclusive, safe, resilient, and sustainable
|Ensure sustainable consumption and production patterns
|Take urgent action to combat climate change and its impacts
|Conserve and sustainably use the oceans, seas, and marine resources for sustainable development
|Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
|Promote peaceful and inclusive societies for sustainable development, provide access to justice for all, and build effective, accountable and inclusive institutions at all levels
|Strengthen the means of implementation and revitalize the global partnership for sustainable development