During the period of the New Medium-Term Plan that 
started in FY2021, we will further push forward with speciﬁc 
actions based on the ESG agenda linked to materiality.
        For the response to “Climate change,” we will 
steadily work to reduce CO2 emissions while shifting to 
renewable energy and replacing equipment with 
energy-saving and electriﬁed models. In high-growth 
countries where markets are expanding, we will focus 
on reducing emissions per intensity to achieve the net 
zero targets set by each country.
        For “Innovation for a sustainable future,” we will 
contribute to customer needs by providing coatings for 
offshore wind turbine systems and the next-generation 
ship bottom antifouling paint FASTAR, since low-footprint 
products are a very important category in the BtoB 
business. On the other hand, as the global expansion of 
COVID-19 from 2020 has led to a growing need for paints 
with anti-viral and anti-bacterial functions, we plan to 
continue releasing new products one after another 
under the PROTECTON brand.
Placing SDGs and ESG at the core of management, we 
established the ESG Committee in 2020 to have 
Group-wide discussions on creating and improving 
sustainable corporate value, as well as accelerating ESG 
promotion activities.
        Chaired by the Representative Executive Ofﬁcer & 
Co-President, the ESG Committee formulates strategies, 
policies and action plans regarding the Group’s “vision” 
based on the perspective of SDGs and ESG, alongside 
assessing and promoting ESG activities.
        In order to progress with our efforts for materiality 
that was reviewed in August 2020, we have established 
working teams that directly report to the ESG Committee 
and consist of members from major partner companies 
around the world. The working teams are sharing the 
situations in various regions where our Group operates, 
learning from each other advanced cases within our 
Group, working on setting targets to be achieved on a 
global basis, and formulating measures suited to the 
circumstances in each operating region.
Further commitment to SDGs and ESG
Commitment of a Corporate Officer in charge of ESG promotion
Efforts to formulate KPIs
Working teams' activities
ESG management system
Safe people and
operations
Growth with
communities
Diversity & Inclusion
Resources and
environment
Innovation for
a sustainable future
Climate change
Global 
Promotion 
Team 1
ESG Agenda
Materiality (Relevant SDGs)
ESG Action Examples
Business Opportunities
•CO2 reduction (Scope 1 & 2)
•Started to calculate global Scope 3 emissions
•Started TCFD scenario analysis 
(identifying risks and opportunities, etc.)
•New opportunities emerging 
within the low-footprint 
product market
•Facilitate production line 
restructuring/automation to 
address aging and 
obsolescent parts in plants 
and improve profitability
•Identify customer needs and 
strengthen branding
•Revenue growth through 
acceleration of innovation
(Example)
• Anti-viral and anti-bacterial 
paint brand PROTECTON
• Coatings for offshore wind 
turbine systems
• FASTAR next-generation 
antifouling paint on ship 
bottom
•Promoting gender diversification on 
Board/management team
•Percentage of women (2020)
The Board of Directors (NPHD) 
12.5%
Employees (global) 
24.0%
Management posts (global) 
23.8%
•Establishment of the NIPPON PAINT Group 
Global Outreach Program
•Enhancement of Education/Empowerment/
Engagement, and data collection
•Development of anti-viral and 
marine-environment-friendly products
•Expansion of the lineup of products with 
social benefits
        In addition, coexistence with local communities is 
an important theme for our Group's business operations. 
For “Growth with communities,” we are accelerating 
social contribution activities through business on a 
global scale. For example, we launched the global 
initiative for social contribution activities, the NIPPON 
PAINT Group Global Outreach Program, in FY2021. We 
believe that the promotion of this initiative consisting of 
three pillars — Education, Empowerment, and 
Engagement — will make signiﬁcant contribution to the 
sustainability of our business.
        As mentioned above, our 
Group will expand our business 
opportunities and contribute to 
social sustainability through 
management based on the 
perspectives of SDGs and ESG.
Our Group has operations in 30 countries and 
geographical locations around the globe. Currently, 
we are working with partner companies to formulate 
speciﬁc KPIs for progressing with materiality and the 
ESG agenda. For initiatives toward "Reduction of 
greenhouse gas (GHG) emissions," for instance, we 
are seriously working to identify issues and measures 
based on the circumstances in each country and 
region, as the use of renewable energy and certiﬁcates 
differs among countries and regions.
The ﬁve working teams established under the ESG 
Committee, respectively composed of executives and 
persons engaged in actual work from Nippon Paint 
Holdings and overseas partner companies, are 
holding global discussions and implementing 
measures for each topic. The Global Promotion Team 
1 shares the progress toward net zero at each location 
with the theme of “Climate change.” The Global 
Promotion Team 3 is discussing KPIs and their 
aggregation for the social contribution activity 
framework “NIPPON PAINT Group Global Outreach 
Program” under the theme of “Growth with 
communities.”
ESG management system chart
Report (quarterly)
Entrustment
Nomination /
 Entrustment
Proposals
Dialogue
Dialogue
Board of Directors
Representative Executive Ofﬁcer
& Co-President
Working teams
Domestic and overseas partner
companies, functional divisions
ESG Committee
Committee Chair: Representative
Executive Ofﬁcer & Co-President
External experts
Stakeholders
ESG Promotion
Department
Global 
Promotion 
Team 3
Sustainability Strategy
Expanding business opportunities 
through ESG initiatives 
for sustainable growth
•Reduction of greenhouse gas 
(GHG) emissions
•Identification of risks and 
opportunities
•Waste/energy consumption 
(efficient consumption)/water 
resource consumption/pollution 
management, product stewardship
•Increase the percentage of 
women in management posts
•Improvement of employee 
engagement
•Disaster (fire accident) prevention 
and process safety
•Fatality and injury prevention
•Policy development for the 
company’s social contribution
•Strategic implementation of social 
contribution activities
•Promotion of cross-industrial 
collaboration
•Development of products that 
benefit society
Yoshiaki Kuroda
Managing Executive Officer
and CAO
(                                              )
Through June: Internal discussion on a global basis
FY2020
Through July: Dialogue with stakeholders
Through August: Deliberation at the ESG Committee 
and approval by the Board of Directors
August: Review of materiality
March: Formulation of the New Medium-Term Plan and 
setting of the ESG agenda
FY2021
Through September: Identiﬁcation of issues and measures 
based on the actual situations in each country and region
Through December: Deliberation at the ESG Committee 
and approval by the Board of Directors
Capital and 
Business Model
Message from 
Management
Medium- and Long-term 
Growth Strategy
Sustainability 
Information
Financial and 
Corporate Information
Nippon Paint Holdings Integrated Report 2021
77
Nippon Paint Holdings Integrated Report 2021
78