Sustainability
Materiality
Basic Approach
The NGK Group identified its Materiality in April 2023 based on the NGK Group Basic Sustainability Policy. 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 materialities, the NGK 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.
Going forward, we are planning to formulate concrete action plans for identified materialities and KPIs serving as indicators to operate such plans. Since we also recognize that along with the change in the environment, importance of issues can change, or new issues can arise, we will revise our materialities as necessary.
| Materiality |
|---|
| Initiatives for climate change |
| Promotion of resource recycling |
| Prevention of environmental pollution |
| Conservation and restoration of biodiversity |
| Pursuit of quality and product safety |
| Contribution to digital social infrastructure |
| Enhancing value of human resource |
| Respecting human rights |
| Promotion of sustainable procurement |
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 them along 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
Management Approach for Each Materiality
The articles linked below explains about the NGK Group's basic approach to each materiality, risks and opportunities, and how we approach issues.