Sustainability Management

Basic Approach

Based on the NGK Group Philosophy of Enriching Human Life by Adding New Value to Society, we aim to provide new value through our unique ceramic technologies to contribute to the realization of a sustainable society and earn the trust of society by meeting its expectations toward us.
We have made this our basic philosophy with respect to the sustainability of the NGK Group. And in order to achieve the NGK Group Philosophy, we will contribute to bring about a carbon neutrality and digital society while keeping ESG (Environmental, Social, Governance) and the Sustainable Development Goals (SDGs) in mind. In this way, we aim to improve our sustainable value creation.

NGK Group Basic Sustainability Policy

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Governance

The NGK Group positions ESG at the center of our corporate management. Amidst ongoing overseas business expansion, we seek to ensure greater managerial transparency and autonomy in 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.
The risks and opportunities related to our Group’s sustainability issues that include ESG elements, are collected and confirmed by the Sustainability Management Committee. The details of Sustainability Management Committee activities are then reported to the Board of Directors at least once a year, and necessary items are discussed and reported at meetings of the Board of Directors and the Executive Committee before being implemented as policies. In addition, the Risk Management Committee monitors the formulation of policies, development of frameworks, and status of execution relating to risk management. Various committees, etc. also perform risk management for individual risk items. The President serves as the chair of the Sustainability Management Committee and Risk Management Committee, and the executive officers and department managers in-charge of head office divisions and business divisions serve as its members.

Risk Management

Sustainability Promotion Framework

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FY2024 ESG Management Committee (currently Sustainability Management Committee) Achievements

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Risk Management

The risks and opportunities related to the NGK Group’s sustainability issues are identified and handled as important material items by the Board of Directors and the Executive Committee.
When identifying materiality, we evaluated various environmental and social issues that were candidates for materiality along the two axes of “impact on our business” and “demands and expectations of stakeholders/impact on people and the environment” then used this to create a materiality map. Based on this, the Sustainability Management Committee extracted materiality candidates, then the Board of Directors and the Executive Committee considered the risks, opportunities, and primary initiatives for each, and determined them to be material items.
These items are handled by each of the related committees, then brought together by the Sustainability Management Committee. Meanwhile the risks and opportunities are monitored, managed (governance), identified, and evaluated (risk management) through reports, etc. to the Board of Directors and the Executive Committee.

Risk Management

Materiality

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Strategies, Indicators, and Objectives

We have set KPIs for all of our material items, and are pursuing relevant initiatives.

Materiality

Core Themes of Sustainability Activities

We identify 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

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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.

Basic Approach

In the NGK Group Corporate Business Principles and 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

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

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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
	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	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 AMB and DCB 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 AMB and DCB 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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