Printed in Japan
2022
Nippon Steel Sustainability Report
Nippon Steel Corporation Sustainability Report 2022  (April 2021 to March 2022)
PS22–0017

Make Our Earth Green
Nippon Steel adopts our own new initiative “Nippon Steel Carbon 
Neutral Vision 2050,” as a part of our widespread efforts toward 
achieving a decarbonized society. We will consider and implement 
various measures as a top priority management issue in order to 
continue to lead the world’s steel industry.
Corporate Philosophy
Management Principles
Nippon Steel Corporation Group will pursue world-leading 
technologies and manufacturing capabilities, and contribute to 
society by providing excellent products and services.
1  We continue to emphasize the importance of integrity and reliability in our actions.
2  We provide products and services that benefit society, and grow in partnership with 
our customers.
3  We pursue world-leading technologies and manufacturing capabilities.
4  We continually anticipate and address future changes, innovate from within, and 
pursue unending progress.
5  We develop and bring out the best in our people to make our Group rich with energy 
and enthusiasm.
CONTENTS
01 Introduction
01 Corporate Philosophy, Management Principles
03 Attractiveness of Steel
05 Nippon Steel Group’s Businesses
07 Nippon Steel Group’s Contribution to SDGs
09 Message from the President
11 Materiality of Sustainability Issues
15 Environmental Initiatives
15 Nippon Steel’s Environmental Management
17 Promotion of Environmental Management System
19 Promotion of Climate Change Measures
35 Contributing to Creation of a Circular Economy
39 Promotion of Environmental Risk Management
43 Promotion of Environmental Relation Activities: Initiatives on 
Conservation of Biodiversity
45 Respect for Human Rights
47 Diversity & Inclusion
53 Human Resources Development
57 Initiatives on Safety and Disaster Prevention
58 Initiatives on Quality
59 Initiatives on Production and Supply Chain Management
61 Together with Local Communities
63 Corporate Governance
65 Independent Assurance Report
66 Awards Received in FY2021
Editorial policy
This Sustainability Report is the 25th since the former Nippon Steel 
Corporation issued what is the first sustainability report by a Japanese 
steel manufacturer, in 1998. We believe it is extremely important 
to promote business activities that contribute to the realization of a 
sustainable society. We are therefore committed to diverse initiatives 
based on this idea.
	
In this report, in order to clearly express our approach toward 
helping realize a sustainable society, we present our sustainability 
initiatives in details with representative examples.
Period covered
The period covered in the report is fiscal 2021 (from April 2021 to 
March 2022). For some activities, the period from April 2022 to June 
2022 is included.
Boundary of report
• Activities of Nippon Steel and its group companies in Japan and 
overseas
• Economic aspects: The Nippon Steel Integrated Report 2022 (issued 
in September 2022) also covers the contents of the economic report.
Reference for guidelines
• GRI (Global Reporting Initiative) Standards
• “Environmental Reporting Guidelines 2018” by the Ministry of the 
Environment
• Final Report: Recommendations of the Task Force on Climate-related 
Financial Disclosures (TCFD), established by the Financial Stability 
Board

Steel is one of the most familiar materials and is indispensable for our daily lives. Thanks to its diverse properties and 
infinite potential, steel will continually contribute to a sustainable society.
Nippon Steel has obtained the “Eco-Leaf” — an ecolabel certified by the 
Sustainable Management Promotion Organization (SuMPO), in compliance 
with the ISO 14025 international standards, for 35 products, representing 
more than 80% of its products.
	
The Eco-Leaf is an EPD3 certification 
program in use in Japan to disclose quan-
titative environmental information about the 
entire life cycle of a product, from resource 
mining and manufacturing to disposal and 
recycling. This allows customers to assess 
the environmental impact of the products 
they use.
3 EPD (Environment Product Declaration): The type III environmental label specified in the ISO 14025 
international standard, which is designed to disclose quantitative environmental data certified by a 
third-party organization.
Acquisition of the “Eco-Leaf” environmental label
Steel is an outstanding material from the Life Cycle Assessment (LCA) perspective
Going forward, with the aim to further reduce environmental impact 
on climate change, Nippon Steel will make development toward 
carbon neutrality in steelmaking process.
Impact in 
manufacturing
LCA overall impact
Impact in use
Environmental impact 
that is often overlooked
Recycling 
effects
Environmental impact 
that is often overlooked
Environmental impact highlighted 
in comparison to other materials
BAD
GOOD
Steel
Steel
Steel
Steel
Lighter weight 
materials than 
steel
Lighter weight 
materials than 
steel
Lighter weight 
materials than steel
Lighter weight materials than steel
GOOD
BAD
High
Low
Environmental impact
Comparing product materials...
LCA-based assessment
Some materials have low environmental impact in use but may have 
high environmental impact in the overall life cycle.
The Life Cycle Assessment (LCA) is therefore important.
Note: Moreover, high-tensile steel is about 25% lighter than conventional steel and has a lower 
environmental impact.
Based on the public data of WorldAutoSteel
990
757
173
230
Comparison of GHG (Green House Gas) emission in producing an automotive 
part that has the same strength as conventional steel (kg-CO2e)
Conventional 
steel materials
High-tensile 
steel
Aluminum
Carbon fiber 
reinforced 
plastics
Functional equivalent 
weight (kg)
100
75
67
45
GHG emissions per unit 
(kg-CO2e/kg)
2.3
2.3
11.3
22.0
Let’s consider the overall life cycle
The Life Cycle Assessment method (LCA) is a way of thinking to 
evaluate environmental impact of a product over its entire life cycle. 
While many aspects of environmental impact cannot be seen, the LCA 
is an attempt to visualize the impact over the life cycle of a product, 
from production of its raw material to use, disposal and recycling of 
the end product.
	
From the LCA perspective, steel’s environmental impact can be 
said to be very low relative to other materials. In order to continue to 
supply steel as a sustainable material, while taking advantage of its 
excellent LCA characteristics, we aim to realize carbon-neutral steel 
production process.
Environmental impacts of steel made via the BF 
and EAF routes, using an LCA approach
The blast furnace (BF) route to reduce iron ore to make steel may 
appear to generate a higher environmental impact than the method 
that melts steel scrap in an electric arc furnace (EAF) to make steel. 
However, the BF route creates steel products that generate scrap that, 
through recycling, has an effect of CO2 emission reduction. As that 
scrap recycling effect offsets the CO2 emissions in the BF process, 
environ-mental impacts of the BF and EAF routes in total terms are the 
same as steel is repeatedly recycled.
	
This approach is recognized in the ISO 20915 and the JIS Q 
20915 and is becoming a global standard.
Steel’s environmental impact in production is extremely lower 
than other materials, some of which are lighter than steel.
Attractiveness of Steel
Steel is easily sorted from a mixture with other materials 
and can be endlessly recycled without causing deterio-
ration in quality — quite a unique characteristic. Steel 
is a perfect material for recycling as it can be recycled 
endlessly into all kinds of steel products after the end of 
its product life.
Theoretical strength1
1 Theoretical strength is said to be 1/5 to 1/7.5 of the modulus of rigidity. The above data uses 1/7.5.
2 Gigapascal (GPa) is a unit to measure tensile strength. Giga denotes a factor of one billion (109).
Potential capacity and present application level of material strength
Diverse properties and a wide range of applications
Infinite potential
Diverse properties that support a wide range of applications
Iron is believed to constitute one-third  
of the Earth’s weight.
Steel is an affordable material and is 
cheaper than water in a plastic bottle
(in comparing price per unit weight).
Steel represents 90% or more of  
metal products, as steel being abundant,  
cheap, and having good workability,  
and has a wide range of applications.
1/3
Other
Steel 90% 
or more
Metal products
Price
Tensile strength (GPa2 )
0
10
3
5
1
6
2
4
Iron and steel
Aluminum and alloy
Concrete (compressive strength)
CFRP
(3.5GPa)
(3.5GPa)
(10.4GPa)
(10.4GPa)
Strength of present 
application level
Strength of sheet materials 
for automobiles
Steel is an abundant, sustainable material that can be reborn endlessly
Steel 
1 kg
Water 
1 kg
Steel is a sustainable material to be reborn in new steel products endlessly
Iron ore
Coal
Resources
Blast 
furnace
Converter
Electric 
furnace
Processing and 
production
Used as various types of 
products by people
Industrial 
product life
Iron scrap
Infinite recycling of steel
Corrosion resistance
Cold resistance
Weather resistance
Strength
Toughness
Robustness
Workability
Weldability
Paintability
Magnetism
Due to diverse advantages such as strength and easiness to work, steel has 
been used in a wide range of applications and deserves recognition as the 
most outstanding material for the infrastructure of society, a material that 
supports people’s lives and overall economic development.
	
Steel is close to us and we cannot live without steel products. Steel is 
for here for all of us now and will be with us in the future.
Steel is a material with great potential due, in part, to its having a much 
higher theoretical strength than other materials.
	
In addition to adjusting carbon and other content to give a certain 
steel product specific desired characteristics, steel’s properties can be 
finely controlled to meet function and performance requirements, including 
requirements that did not exist in the past. We do this by controlling the 
combination of its temperature and rolling at the manufacturing stage or 
by adding alloys. Further development in steel and its usage will push the 
potential horizon further outward.
Heat resistance
Impact when disposed 
or recycled
(Impact of waste disposal 
and recycling effect)
+
+
=
Sustainability report 2022
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03
04
NIPPON STEEL CORPORATION
Attractiveness of Steel
Attractiveness of Steel

Kansai Works
Wakayama Area (Wakayama, Kainan, Sakai)
Amagasaki Area
Osaka Area
Nippon Steel Group’s Businesses
Domestic manufacturing and R&D bases (Nippon Steel)
Nippon Steel is engaged in production at six steelworks — North Nippon, 
East Nippon, Nagoya, Kansai, Setouchi and Kyushu — and R&D activities 
in three centers in Futtsu, Hasaki, and Amagasaki.
Amagasaki R&D Center
East Nippon Works
Naoetsu Area
Kashima Area
Kimitsu Area
Hasaki R&D Center
As of March 2022
Research & Engineering Center (Futtsu)
North Nippon Works
Muroran Area
Kamaishi Area
Nagoya Works
Setouchi Works
Hirohata Area
Kure Area
Hanshin Area (Toyo, Osaka, Kanzaki, Sakai)
Kyushu Works
Yawata Area (Tobata, Yahata, Kokura, 
Hikari Titanium Production Div.)
Oita Area (Oita, Hikari)
Overseas manufacturing bases
The Nippon Steel Group has established a global supply network of 37 
million tons in steel processing capacity, mainly for use of automobiles, 
infrastructure, electric appliances and containers, resources and energy, etc.
Europe
1.1 (163.6)
mln tons/year
Ovako (Sweden)
BNA (China)
AM/NS India (India)
G/GJ Steel (Thailand)
Usiminas (Brazil)
AM/NS Calvert (USA)
Middle East
0.8 (48.3)
mln tons/year
India
10.5 (106.1)
mln tons/year
ASEAN
7.8 (72.6)
mln tons/year
China
3.6 (952.0)
mln tons/year
North and 
Central America
6.2 (136.9)
mln tons/year
Region
NS Group’s 
capacity
(Regional demand)
South America
6.9 (50.7)
mln tons/year
Sales composition by region
Japan
Overseas
Crude steel production capacity  
by sector1 
(mln tons/year)
1 In addition to companies with an equity stake of 30% or higher (including Usiminas), which are included in crude steel production data compiled by the World Steel Association, the capacity of our equity-method affiliates with an equity stake 
of less than 30% in which Nippon Steel plays a significant role in the supply of materials, as well as the capacity of a company whose products are sold by Nippon Steel (AGIS) are fully included.
2 Excluding overlap with the integrated steel mills (Sanyo Special Steel Manufacturing India, Standard Steel, and Ovako) and with a company (STP) which receives raw sheet supplies from other operating companies
3 Steel conversion value (converted to per-ton of crude steel)
Integrated steel mills
21.0
Downstream process bases2
17.0
Automobiles3
12.8
Infrastructure
4.4
Electric appliances, containers, etc.
1.2
Resources and energy
0.4
The Nippon Steel Group’s main business is in steelmaking with annual crude steel production capacity of approximately 
47 million in Japan and 19 million tons overseas, and overseas annual steel processing capacity of 37 million. The Group 
is promoting business in four segments, including steelmaking.
Business segments
Based on the long accumulation of technology through steelmaking, the Nippon Steel Group operates businesses in four areas: steelmaking and fabrication, 
engineering and construction, chemicals and materials, and system solutions, with the core business being steelmaking.
¥279.2 bn
Nippon Steel Engineering Co., Ltd.
Nippon Steel Engineering undertakes numerous 
projects worldwide in various fields: the environment 
and energy-related facilities (i.e., waste, offshore 
wind, biomass, and geothermal power generation); 
various pipelines; building construction and large 
steel structures (i.e., offshore steel structures, port 
construction), and steelmaking plants.
FY2021
consolidated revenue
¥6,808.8 bn
(Elimination of intra-company transactions, etc. −¥145.1 bn)
¥6,153.6 bn
Nippon Steel Corporation
Enhancing technological superiority, Nippon Steel 
provides a variety of high-grade steel products (i.e., 
steel plates; flat products; bars & wire rods; con-
struction products; pipes & tubes; railway, automo-
tive & machinery parts; and titanium stainless steel) 
to many customers in Japan and overseas.
¥249.8 bn
Nippon Steel Chemical & Material Co., Ltd.
Nippon Steel Chemical & Material aims to contribute 
to society by combining chemical and material oper-
ations and utilizing its original material technologies. 
With coal chemicals, chemicals, functional materials 
and composite materials as its four main operating 
sectors, the company pursues sustainable growth 
by creation of new businesses, overseas expansion 
of its core operations, and the further promotion of 
global operations.
¥271.3 bn
NS Solutions Corporation
In keeping with the advent of widespread use of 
digital innovations in IT for business, NS Solutions 
provides IT business solutions, including uses of 
the cloud, IoT, and AI, to a wide range of sectors 
by applying its extensive insight and advanced 
practical IT capabilities acquired in the steel 
manufacturing business.
Revenue (consolidated basis)
Business profit (consolidated basis)
Profit attributable to owners of the parent  
(consolidated basis)
Crude steel production volume (non-consolidated basis)
Number of employees (consolidated basis)
R&D expenditures (consolidated basis)
Chemicals and Materials Business
Engineering and construction business
System solutions business
Steelmaking and steel fabrication business
8,000
6,000
4,000
2,000
0
80
60
40
20
0
120,000
100,000
80,000
60,000
40,000
20,000
0
50
40
30
20
10
0
(million tons)
(¥ billion)
(¥ billion)
(¥ billion)
(FY)
2017
2018
2019
2020
2021
(FY)
(FY)
(FY)
2017
2017
2017
2018
2018
2018
2019
2019
2019
2020
2020
2020
2021
2021
2021
(FY)
(FY)
2017
2017
2018
2018
2019
2019
2020
2020
2021
2021
(¥ billion)
97,996
105,796
106,226
33.00
5,712.9
6,177.9 5,921.5
4,829.2
6,808.8
800
600
400
200
0
-200
-400
-600
1,000
800
600
400
200
0
-200
-400
180.8
251.1
637.3
-431.5
-32.4
288.7
336.9
-284.4
110.0
938.1
74.0
72.0
77.6
65.3
66.4
43.45
43.73
41.85
106,599
106,528
38.68
Regional 
composition:
Asia
57%
North America
13%
Europe
12%
South America
10%
Middle East
5%
Africa
2%
Pacific
0.4%
60%
40%
Sustainability report 2022
Sustainability report 2022
05
06
NIPPON STEEL CORPORATION
Nippon Steel Group’s Businesses
Nippon Steel Group’s Businesses

PICKUP 2021
Nippon Steel Group’s Contribution to SDGs
Steel contributes to make our life more convenient and pleasant, by being 
used everywhere in our life and society, and as an indispensable part of 
resilient infrastructure against natural disasters caused by earthquakes, 
abnormal weather driven by climate change, and other factors. Steel is also 
an indispensable material element for achieving SDGs, as it helps reduce 
environmental impact due to its weight reduction, extension of its product 
life, etc. on top of being abundantly available and able to be recycled.  
As a supplier of steel, we strive to implement our Three Ecos and innovative 
technologies and to advance the Carbon Neutral Vision as measures against 
climate change. We also promote sustainable measures so as to not waste 
resources. These measures include use of by-product gas generated in 
steelmaking, reuse of recycled water, and recycling of by-products and 
waste generated in and out of the company.
Examples of specific initiatives
• Job creation through establishment of operating companies in emerging 
countries  
p. 5
• Reduction of vulnerability to disaster based on use of Nonframe method 
(construction method to stabilize slopes without damaging the natural 
environment)
• Thorough compliance training, such as for the Anti-Monopoly Act
• Eliminating unfair discrimination, based on the respect on human rights  
pp. 45–46
• Expanded hiring of women and non-Japanese  
pp. 45–46
• Use of converter slag fertilizer, a by-product of steelmaking, to improve 
farming productivity and salt damage in farmland  
p. 44
• Provision of titanium and stainless steel, which have excellent seawater 
corrosion resistance, for seawater desalination plants, securing 
agriculture water
• Provision of various indispensable Eco Products for daily lives
• Provision of earthquake-resistance steel products
• Development of Nonframe method, which protects houses from disaster 
while maintaining views of nature
• Promotion of air, water, soil risk management and chemical substance 
management  
pp. 39–41
• Development and provision of steel products that contain no substances 
of concern, such as lead and hexavalent chromium
• Promotion of air, water, soil risk management and chemical substance 
management  
pp. 39–41
• Full recycling of by-products, including slag, dust, and sludge  
pp. 35–36
• Promotion of recycling of waste plastics  
p. 36
• Promotion of employee training to raise skills (i.e., OJT, Off-JT, sending 
trainees to Junior College for Industrial Technology), hosting technology 
triathlon  
pp. 53–54
• Study sessions for teachers, internship for students  
p. 62
• Promotion of measures against climate change by implementing the 
Carbon Neutral Vision  
pp. 21–29
• Development and provision of Eco Products, such as high-tensile, light-
weighted, energy-efficient steel sheets and light-weight railway wheels 
and axles for high-speed railways  
p. 22
• Improvement of working environment for women, support for career 
formation and work-life balance  
pp. 47–48
• Increase in female employment and the number of female employees in 
management  
p. 48
• Prevention of harassment  
p. 52
• Regeneration of seaweed beds with the use of steel slag  
pp. 28, 43
• Promotion of sea area environmental improvement with the use of steel 
slag  
p. 35
• Voluntary clean-up activities at seashore nearby steelworks  
p. 61
• Collaboration with an NPO, “Mori wa Umi no Koibito” (participation in  
tree-planting, etc.)  
p. 61
• Recycling and reuse of limited water resources  
p. 37
• Promotion of water quality risk management  
p. 40
• Provision of titanium and stainless steel for seawater desalination plants
• Provision of lining steel pipes for delivery of clean water
• Promotion of air, water, soil risk management and chemical substance 
management  
pp. 39–41
• “Creation of Hometown Forests” to promote greenery within steelworks  
p. 43
• Site cleaning activities around steelworks
• Efficient use of energy, such as 100% use of by-product gas  
p. 37
• Provision of materials for fuel cells that produce energy from hydrogen
• Development and provision of steel materials for high-pressure hydrogen 
to support a hydrogen-oriented society  
p. 22
• Bribery prevention guidelines to be established and made well known  
p. 62
• Elimination of antisocial forces
• Thorough confirmation of no use of conflict material  
p. 59
• Thorough management of security export control
• Promotion of diversity & inclusion (i.e., female empowerment, how 
to work and how to take time off from work, health promotion, and 
employment of the elderly and the disabled)  
pp. 47–48
• Promotion of DX to improve workstyle, productivity, worker safety 
management, etc.  
pp. 8, 60
• Eco solutions to transfer and spread environmental, energy-saving 
technologies to emerging markets  
p. 30
• Japan-India and Japan-ASEAN regular exchanges among public and 
private steel-related parties  
p. 30
• Support for human resources development to build an energy 
management system in emerging countries
• Pursuit of Eco Processes to help raise resource/energy efficiency and 
reduce environmental impacts  
pp. 37–38
• Introduction of advanced technologies through bilateral cooperation 
(India, ASEAN, etc.)  
p. 30
• Use of steel slag in road materials and materials for civil engineering  
pp. 8, 35
The Nippon Steel Group is committed to SDGs through continually supplying steel, a basic element supporting society, 
in various parts of the world by using its world-leading manufacturing capability.
In order to establish working environments where diverse employees 
can be empowered, Nippon Steel has been taking various measures. For 
supporting shift workers in the childbirth 
and childcare phase, specific measures 
have been implemented in view of the 
child-rearing environment by region. By 
January 2022 we had opened in-house 
childcare centers at seven manufacturing 
bases across Japan.
A childcare center in the Kashima District
Nippon Steel has signed a memorandum of understanding with Vale S.A. 
to strengthen relations and to examine and discuss concrete measures 
for realizing carbon-neutral steelmaking 
processes. The companies will jointly 
research the utilization of direct-reduced 
iron, green-mold pig iron, green briquettes, 
and other materials that contribute to 
carbon-neutral steelmaking processes, 
and pursue their feasibility.
Rendering of a green-mold pig iron plant of Vale’s 
100% subsidiary TECNORED (under construction)
Since December 2019, Nippon Steel has published a total of 35 EcoLeaf 
Environmental Product Declarations (EPD) covering most of our products. 
The EPD enables customers to assess the 
environmental impact of our products they 
use throughout their life cycles. We intend to 
obtain EcoLeaf for other products.
[Products that acquired EcoLeaf since FY2021]
Seamless, high-frequency welded well pipes/line pipes, 
steel plates for building structures, high-tensile strength 
steel plates for building structures, steel bars and wire 
products, steel plates for structure, steel sheets, and 
reduced-process steel bar and wire products
Nippon Steel has obtained a local 5G license from the Ministry of Internal 
Affairs and Communications, and has started testing its application at 
steelmaking sites in the Muroran Area of the North Nippon Works in 
cooperation with NS Solutions. The local 5G accommodates unlimited 
data traffic and can also provide the highest level of security. It also has 
the advantage of a private wireless network that enables communication 
throughout the large premise.
Radio range of 
the private radio 
network (Muroran 
Area of the North 
Nippon Works)
Received the 2021 Innovation Award from 
Schneider Electric for the advanced technology 
of grain-oriented electrical steel sheets 
June 2021
2
Conducted a demonstration experiment 
using the Nippon Steel Group’s steel pipe 
piles and calcia modified material at the site 
of the Expo 2025 Osaka 
May 2021
1
4
Obtained a local 5G radio station license with 
the highest output power in Japan to accelerate 
the DX in steelmaking sites 
Nov. 2021
6
Signed memorandum with Vale, one of the 
world’s leading mineral resource companies, 
for realizing carbon-neutral steelmaking 
processes 
April 2022
3
Expanded acquisition of EcoLeaf environmental 
labels for certification of the environmental 
impact in product life cycles 
July 2021  
Sep. 2021  
Feb. 2022  
April 2022
Transformer
Installation of NS ECO-PILETM 
and calcia modified material
In the demonstration experiment of 
advanced technologies at the planned 
site of the 2025 Osaka-Kansai Expo in 
Yumeshima, Konohana-ku, Osaka, Nippon 
Steel as a representative company will 
carry out an NS ECO-PILETM anchoring and 
extraction experiment and an anchoring 
support improvement experiment using 
calcia modified material.
5
Opened in-house childcare centers at seven 
manufacturing bases nationwide
Dec. 2021  
Jan. 2022
Nippon Steel’s grain-oriented electrical steel sheet 
received the Best Supplier Award in the Innovation 
Category at Schneider Electric’s Supplier Day. 
More than 150 suppliers are invited to this event 
each year. The product was highly praised for 
its contribution to product competitiveness of 
Schneider’s strategically important distribution 
transformers, the contributions including reduction 
in loss of power (energy savings, high efficiency 
and CO2 emissions reduction when transferring 
electrical energy) and the reduction of noise.
 The premises of the Muroran District
 Radio wave coverage
Approximately 3.3 km from east to west
Approximately 2.5 km 
Approximately 2.5 km 
from north to south
from north to south
Products with the EcoLeaf 
environmental label (Cans made 
of Nippon Steel’s tin products)
© Suntory Food International
Sustainability report 2022
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08
NIPPON STEEL CORPORATION
Nippon Steel Group’s Contribution to SDGs
Nippon Steel Group’s Contribution to SDGs

Towards the 
Realization of a 
Sustainable Society, 
and the SDGs
Eiji Hashimoto
Representative Director and President
I would like to thank our shareholders and all other stakeholders for your 
understanding and support to the Nippon Steel Group.
In March 2021, we announced a new medium- to long-term management 
plan, with the aim of continuing to grow to “become the best steel-
maker with world-leading capabilities,” that supports Japan’s industrial 
competitiveness. We have since been undertaking our corporate man-
agement accordingly. By including “Nippon Steel Carbon Neutral Vision 
2050” within the plan, we have identified our efforts concerning climate 
change issues as our greatest priority issue. Our basic approach toward 
realizing a decarbonized society is to win in the development competi-
tion with other countries and continue to lead the world’s steel industry. 
Through these efforts, we are committed to establishing a virtuous cycle 
of environmental sustainability and corporate growth, and improving 
corporate value.
	
In this Sustainability Report 2022 we are pleased to present to you 
the current status of promoting the Carbon Neutral Vision 2050 as well 
as wide-ranging sustainability-related initiatives as we advance toward 
realizing a sustainable society. Specific themes include the environment, 
human rights, diversity & inclusion, safety, disaster prevention, and quality.
next-generation hot-rolling mill at the Nagoya Works. We are steadily 
progressing in making these investments.
	
The second aspect is a challenge of developing new production 
process aimed at radically reducing CO2 emissions in the manufacturing 
process. This requires a challenging advanced technical development, 
that requires us to act in hitherto unexplored areas. This is an enormous 
challenge in the history of the steel industry. We find it crucial to solidify 
our development prospects ahead of others and start actual use of the 
new manufacturing processes at an early stage. We are taking this 
dramatic change in the business environment as a great opportunity to 
reestablish our overwhelming superiority in the world steel industry, and 
we are determined to actively address it as a top management issue. 
Further, we aim to become the first to provide carbon neutral steel to our 
customers and thereby contribute to their reduction of CO2 emissions.
	
Our targets are to reduce CO2 emissions by 30% compared to 
2013 in 2030 and achieve carbon neutrality in 2050. We have already 
launched earnest development efforts toward decarbonizing the 
steelmaking process. As an example, in December 2021 our project 
to develop technologies required for achieving these targets has been 
adopted as a part of the “hydrogen utilization in iron and steelmaking 
processes” project of the government’s Green Innovation Fund.
	
We are determined to boldly take up the challenge toward the 
realization of carbon neutrality through collaboration by the public and 
private sectors in various areas, including the government’s support for 
R&D and equipment installation, the establishment of an infrastructure 
to supply hydrogen, the realization of a low-cost, abundant carbon-free 
power sources, and the establishment of a system for society as a whole 
to bear the enormous costs associated with these.
We also believe that we need to help build a circular economy, from the 
viewpoint of further growing the economy while building a sustainable 
society. Steel is a material which can be easily taken out of a present 
use and endlessly recycled without causing deterioration in quality. 
Steel can be described as a perfect embodiment of a circular economy. 
Nippon Steel is also actively engaged in use of by-products generated in 
steelmaking for achieving zero emission. We also recycle 100% of used 
and discarded plastic containers and packaging generated in society and 
collected by us. In addition, in accordance with the Law for Promoting 
the Recycling of Plastic Resources enforced in April of this year, we are 
considering to expand the recycling volume of plastic waste recycling. 
We are committed to contributing to the realization of a circular economy 
by means of tireless technological innovations.
	
Concerning maintenance and improvement of the living environment 
in our communities, what we focus on is environmental risk manage-
ment, including prevention of accidents and undesirable conditions or 
events. This is our priority issue for continuing business, along with 
safety and disaster prevention. In addition to compliance with laws and 
regulations, we strictly adhere to the ordinances and standards of munic-
ipalities, and give due consideration to the conditions of each base of 
operations, thoroughly taking measures from both hard and soft aspects 
to reduce environmental burden.
	
Having positioned environmental matters as priority issues that 
underlie our corporate management as stated in our Basic Environmental 
Policy, we have pledged to contribute to the creation of a society oriented 
toward environmental preservation and with low environmental impact. 
While we are advancing initiatives for the Sustainable Development Goals 
(SDGs) adopted by the United Nations, we recognize climate change 
issues as a priority problem that may threaten survival of the human 
race. We are proactively undertaking diverse environmental issues con-
cerning various areas of concern, from local communities to the entire 
planet, including climate change issues, creation of a circular economy, 
and promotion of the environmental risk management. We are thereby 
contributing to the realization of a sustainable society.
The ongoing Carbon Neutral Vision 2050 efforts have two aspects.
	
The first aspect is our action to contribute widely to the realization 
of a carbon neutral society through providing users with our advanced 
high-performance steel products and solutions in Japan and overseas. 
This is also a great business opportunity for us. As an upfront invest-
ment in this effort, we have decided to make investment in improving 
the capacity and quality of electrical steel sheets, and in building a 
	
With regard to biodiversity preservation, which we recognize as 
indispensable as part of the base of our business activities, we have long 
been involved in the “Creation of a Hometown Forest” at each steelworks, 
and “blue carbon” activities designed to create seaweed beds and absorb 
CO2 in coastal waters. We are thus developing initiatives that harmonize 
nature protection and production activities. We will continue to use our 
management resources and accelerate various initiatives. We formally 
expressed our support to Keidanren’s Declaration of Biodiversity and 
Action Policy and are promoting its activities in accordance with our pol-
icy of action based on this. As initiatives to establish a society co-existing 
with nature are both regional and global issues, we intend to incorporate 
them in our business activities and to execute environmentally integrated 
management, with the aim of realizing a sustainable society.
We declare in our Corporate Philosophy to pursue world-leading technol-
ogies and manufacturing capabilities, and contribute to society by provid-
ing excellent products and services. This resonates with the concept of 
the United Nations’ Sustainable Development Goals (SDGs). We are eager 
to continue to prevail as a company that helps solve diverse social issues 
through its business activities.
	
In this report, we are presenting our engagement with various 
stakeholders as well as our response to social issues. In addition to the 
environment issues, specific themes include respect for human rights, 
diversity and inclusion, safety, safety and disaster prevention, quality, 
supply chain management, and coexistence with the community and 
society of which we are a part.
	
In particular, the themes we presented in detail include the business 
activities that respect diverse values and human rights issues, and 
the activities related to diversity and inclusion from the perspective to 
becoming a company that allows its workforce to demonstrate their full 
capabilities and be empowered with pride and fulfillment. Based on the 
belief that the development of excellent personnel is a prerequisite for 
the production of excellent products, we are working on strengthening 
our manufacturing capability with emphasis on the development of our 
human assets. In order to live up to our Corporate Philosophy of con-
tributing to the development of society and to be continually trusted by 
everyone, we are committed to fulfilling our social responsibility.
	
Sustainability issues are considered as one of our priority man-
agement issues, which form part of the base that supports sustainable 
corporate growth. We have thereby identified key challenges (materiality) 
of sustainability issues that should be addressed in a focused manner, 
with due consideration to our corporate principles, values, stakeholders’ 
expectation, and our growth strategy. We intend to steadily promote 
its execution and follow-up by checking Key Performance Indicators to 
assess outcomes of our efforts.
We hope that you take a look of this report and let us know your feedback.
Sustainability report 2022
Sustainability report 2022
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10
NIPPON STEEL CORPORATION
Message from the President
Message from the President

1  Safety and health  
p. 57
Target and KPI
Main Initiatives and Achievements in 2021
• Accident frequency rate of 0.10 or less
• Zero fatal accident
• Prevention and risk reduction of accidents, based on safety risk 
evaluation
• Promotion of disaster prevention aimed at prevention of repeated 
disasters (thorough adherence to the six company-wide compliance 
requirements and promotion of greater machine safety)
• Acquisition of ISO45001 for management systems of occupational 
health and safety (OH&S) to enhance safety level
• Accident frequency rate: 0.10
• Number of fatal accidents: 2
1. Safety, environment, and disaster prevention
Nippon Steel recognizes that sustainability initiatives are one of the important issues and form the base that supports 
the very existence and growth of the company. Among the initiatives, the issues to be focused by taking into account 
our shareholders’ expectations and our Corporate Philosophy, Values, and growth strategy have been identified as 
materiality (priority issues).
Generalize the issues in due 
consideration of the company’s 
corporate philosophy and values
Verify the issues from the viewpoint 
of the company’s value creation 
process and strategy
Discuss and approve 
issues in the Board of 
Directors meeting
Consider requests from stakeholders 
on environmental, social issues and 
listing candidate issues
Process to identify materiality
Materiality, KPIs and major initiatives in FY2021
Materiality of Sustainability Issues
2  Environment
1  Promotion of climate change measures
Promotion of the Carbon Neutral Vision 2050 (CO2 emission reduction)  
p. 21
Target and KPI
Main Initiatives and Achievements in FY2021
• Target in 2030: 30% reduction vs. 2013
• Vision for 2050: Carbon neutral
• Selection of the “hydrogen utilization in iron and steelmaking processes” project as a Green Innovation Fund project
• Decision to establish a small test furnace for the manufacture of high-grade steel in an electric arc furnace and direct reduction of 100% hydrogen
• The project, which was established in April 2021, was reorganized into a permanent organization in April 2022 and was expanded to the 
scale of a team of about 90 people.
2  Enhancement of “Eco Products”  
pp. 8, 22
Target and KPI
Main Initiatives and Achievements in FY2021
• Supply of high-performance steel products to help reduce 
CO2 emissions through use of their end products
• Investment in capacity and quality improvement measures to meet 
the growing demand for electrical steel sheets and higher-grade 
products
• Decision to install a next-generation hot rolling mill
• Expansion of products that acquire EcoLeaf environmental labels
• Yawata Area of Kyushu Works and Hirohata Area of Setouchi Works: 
Start of operation in 1H of 2024 (¥123 billion in investment)
• Nagoya Works: Start of operation in 1H of 2026
• Acquisition of EcoLeaf environmental labels for 35 products (more 
than 80% of our products), up from 15
3  Contribute with “Eco Solutions”  
p. 30
Target and KPI
Main Initiatives and Achievements in FY2021 (including some results in FY2020)
• Transfer and dissemination of the world-leading energy-
saving technology to help CO2 emission reduction globally
• Growing cumulative CDQ delivery record by Nippon Steel Engineering 
in the group
• 128 CDQ cumulative units (contributing to 25.81 mn tons-CO2 
reduction, FY2020)
2  Contribution to creation of a circular economy
Realization of zero emissions within the company/recycling of waste generated in society  
pp. 35, 36
Target and KPI
Main Initiatives and Achievements in FY2021
• Reduction in final disposal amount: 263,000 tons  
(FY2025 target)
• Promotion of recycling of byproducts (slag, dust, sludge, etc.)  
in and out of the company
• Final waste disposal: 307 thousand tons
• Establishment of a waste plastics recycling system to 
expand its collection volume
• Aggressive promotion of recycling treatment, according to the 
Chemical Recycling Act
• Packaging/container plastic waste treatment: 220 thousand tons 
(equivalent to 30% of Japan’s total plastic waste)
3  Promotion of environmental risk management
Air environment preservation  
pp. 39, 41
Target and KPI
Main Initiatives and Achievements in FY2021
• Maintaining low-level emissions of NOx and SOx
• Installment of equipment that reduces SOx and NOx emissions; 
shifting to low-sulfur fuel; adoption of low NOx regenerating burners
• SOx: 13 mn Nm3
• NOx: 25 mn Nm3
• Maintaining of lower discharge levels than voluntary 
targets in chemical substances
VOC (volatile organic compounds): 1,106 tons/year
(down 30% vs. FY2000)
Benzene: 172 tons/year
(voluntary target, along with the government target)
• Continual efforts based on the voluntary reduction plan
• VOC: 545 tons/year
• Benzene: 95 tons/year
Contribution by “Three Ecos”
1  Implementation of “Eco Process”  
pp. 18, 37, 38
Target and KPI
Main Initiatives and Achievements in FY2021
• Maintaining high-level effective use of energy
• Effective use of byproduct gas (coke oven gas, blast furnace gas etc.) 
and waste heat
• Use of byproduct gas: 100%
• Use of waste heat in steam generation: 67%
• In-house generated energy use in in-house power generation: 75%
• Promotion of adopting advanced energy-saving technology • Adoption of high-efficiency power generation equipment and 
oxygen plant; regeneration burner in reheating furnace
• Investment cost for energy-saving: ¥8.7 bn
Identified materiality (priority issues)
Nippon Steel’s Materiality
In consideration of our stakeholders’ expectations, we have defined the materiality based on the following principles. We believe that tackling these materiality issues will 
contribute to the achievement of the United Nations’ 2030 Agenda for Sustainable Development, featuring Sustainable Development Goals (SDGs).
1  Materiality with due consideration of the corporate philosophy 
and priorities in manufacturing
Our Corporate Philosophy (Our Values) states: “The Nippon Steel Corporation Group 
will pursue world-leading technologies and manufacturing capabilities, and contrib-
ute to society by providing excellent products and services.”
	
Concerning “provision of excellent products and services,” our critical mission 
as a responsible manufacturing company is to reliably produce and deliver quality 
products that satisfy customers. Needless to say, the prerequisites to enable this 
mission include “safety, environment, and disaster prevention” as well as thorough 
compliance to rules and regulations.
	
The “world-leading technologies and manufacturing capabilities” are realized 
by our human capital. Securing and fostering of outstanding personnel is an 
important challenge to be overcome in order to strengthen overall manufacturing 
capabilities. We firmly believe that respect for human rights and diversity & inclu-
sion, as well as promotion of physical and mental wellness strength are the basics 
for our employees to work vigorously.
	
With regard to the relationship with society, we must maintain good relation-
ship with the community where our steelworks or other facilities are located. This is 
indispensable for us to continue operating business in the future. We are pledged 
to operate in an environmentally-friendly manner and maintain good communica-
tion with local communities, as a corporate citizen.
2  Materiality with due consideration of the company’s value 
creating process and potential changes in business environment
A base of our value creation process is to use a diverse range of financial/
non-financial assets and competitive advantages, and to provide products and 
Water environment preservation  
p. 40
Target and KPI
Main Initiatives and Achievements in FY2021
• Recycling of water; high-level stable use of recycled water • Water treatment, recycling and reuse of freshwater used by the 
company
• Use of recycled water: app. 90%
3. Production
• Stable production 
and supply
1. Safety, environment, and 
disaster prevention
• Safety and health
• Environment
Promotion of climate change measures
Contribution to creation of a circular economy
Promotion of environmental risk management
• Disaster prevention
Thorough implementation of 
compliance
• Adhering to laws and regulations as a 
base of all activities
2. Quality
• Quality control and 
guarantee
• R&D and intellectual 
property management
• Solution that result in 
customer satisfaction
6. Corporate value enhancement 
and profit distribution
• Securing of profit and enhancement of 
corporate value
• Profit distribution
4. Human resources, and 
diversity & inclusion
• Respect for human rights
• Diversity & inclusion
• Human resource development
5. Together with local communities
• Environmental preservation/creation 
activities in communities
• Activities mainly in the support of 
education, sports, and arts
solutions to customers. In order to reproduce such processes, stable production 
and continual profit generation are indispensable.
	
In addition, having positioned environmental matters as priority issues that 
underlie our corporate management, we have pledged to contribute to the creation 
of a society oriented toward environmental conservation and with low environmen-
tal impact. We have also been engaged in building of a circular economy through 
reduction of CO2 emissions by the three “Eco” initiatives and innovative technology 
development, and recycling of industrial waste (such as plastics).
	
Concerning the climate change problems that affect the survival of humanity, 
we are making efforts aimed at carbon neutrality by 2050 from two aspects: 
Provision of high-performance steel products and solutions to reduce CO2 emission 
of the society as a whole, and breakthrough technology development to decarbonize 
steelmaking processes.
3  Corporate value enhancement and profit distribution
We are committed to continuing operations as a sustainably growing company by 
generating profit and raising corporate value from business activities, including 
sustainability initiatives. We will also contribute to society by providing excellent 
products and services, and distributing profit to employees, government, share-
holders, and other stakeholders.
4  Thorough compliance
As a responsible leading company, we thoroughly adhere to laws and regulations, 
which is fundamental to all of our activities. It should be achieved by our indepen-
dent efforts, based on our corporate philosophy, value, code of conduct and alike.
11
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NIPPON STEEL CORPORATION
Materiality of Sustainability Issues
Materiality of Sustainability Issues

5. Together with local communities
Adhering to laws and regulations as a base of all activities
Please see the Corporate Governance section of Nippon Steel’s  
Integrated Report pp. 89–98.
Thorough implementation of compliance
3  Disaster prevention  
p. 57
Target and KPI
Main Initiatives and Achievements in 2021
1  Elimination of disaster risks and group-wide 
sharing of effective measures
• Zero serious disaster-related accident
• Prevention of recurrence via corporate-wide implementation of 
measures against risks emerged from the accidents
• Risk assessment to detect new disaster risks; execution of measures 
from hard/soft aspects to reduce risk and control residual risk
• Self-monitoring (auditing) by those in charge of disaster prevention 
in steelworks; and management by the head office management 
through interviews
• Serious disaster-related accidents: 0
3  Human resource development
Target and KPI
Main Initiatives and Achievements in FY2021
• Promotion of measures to develop human resources
• “Human Resources Development”  
pp. 53–56
• Hours of training and education: 540 thousand hours/year 
(19 hours/person, year)
1  Respect for human rights
Target and KPI
Main Initiatives and Achievements in FY2021
• “Respect for Human Rights”  
pp. 45–46
4. Human resources, and diversity & inclusion
2  Diversity & inclusion
Target and KPI
Main Initiatives and Achievements in FY2021
• The number of female employees in management 
positions: at least 2 times, (vs. 36 in FY2020), and 3 times 
as target in 2025; at least 4 times, and 7 times as target 
by 2030
• The ratio of paid holidays taken: 75% or higher
• Wellness management aimed at maximizing people’s 
ability up to the age of 65, and support to enhance mental 
and physical health
• “Diversity & Inclusion”  
pp. 47–52  
• Number of women in managerial positions: 55 
(as of April 2022)
• Ratio of women in hiring: 
25% of office staff; 10% of operators; 
15% in overall (FY2020–2022 average) 
The ratio of paid holidays taken: 77.8% (FY2021)
1  Environmental preservation/creation activities in communities  
pp. 18, 43
Target and KPI
Main Initiatives and Achievements in FY2021
• Green space development to contribute to the local environment
• Tree planting activities by new employees in steelworks
• Funding for green space development and maintenance
• Greenery space: 840 ha
• Expenses for green space development and main-
tenance: ¥1.2 bn
2  Activities mainly in the support of education, sports, and arts  
p. 62
Target and KPI
Main Initiatives and Achievements in FY2021 (including some results in FY2019)
• Ongoing promotion of hosting plant visits
• Proactively accepting plant visits by shareholders, investors, and junior 
high/elementary school students
• Number of plant visitors: app. 130,000 
(FY2019 results; almost no implementation 
in FY2020 and FY2021 due to the COVID-19 
pandemic)
• Continual execution of corporate philanthropy in the support of 
music via Nippon Steel Arts Foundation
• Support of music activities via presentation of Nippon Steel Music Awards 
and operation of the Kioi Hall
6. Corporate value enhancement and profit distribution
1  Securing of profit and enhancement of corporate value
Target and KPI
Main Initiatives and Achievements in FY2021
• ROS of 10% (FY2025 plan target)
• ROE of 10% (FY2025 plan target)
Please see the 11-Year Financial Performance section of Nippon Steel’s 
Integrated Report pp. 101–102.
• ROS of 13.8%
• ROE of 20.5%
2  Profit distribution
Target and KPI
Main Initiatives and Achievements in FY2021
1  Salary and wages payment to employees
• Bonus payment amount
• Revised amount of salary
Please see the following:
Fact Book: Wages and Bonuses
Integrated Report
pp. 35–39: Financial Strategy
pp. 40–42: FY2021 Operating Results
pp. 99–100: Financial Information
• Base bonus amount: ¥2.37 mn
• Revised amount of salary: ¥3,000
2  Appropriate tax payment
• Tax payment (consol.)
• Tax payment (consol.): ¥86.0 bn
3  Dividend payment to shareholders
• Dividend payment
Note: Target consolidated payout ratio: around 30% (FY2025 management plan)
• Dividend per share: ¥160/year
1  Quality control and guarantee  
p. 58
Target and KPI
Main Initiatives and Achievements in FY2021
• Systemization and automation aimed at more credibility in 
testing and inspection
• Progress in automatic input of inspection results from testing/analytical devices and measurement devices
2  R&D and intellectual property management  
Integrated Report pp. 63–64
Target and KPI
Main Initiatives and Achievements in FY2021
• Strategic R&D, aimed at sustainable growth
• Protection and use of intellectual property
• Increasing applications and acquisition of rights depending on the 
importance of invention based on business strategy and business plan
• Integrated management of the patents held and products and 
technologies to respond to patent infringement and accelerate the 
effective use into technology alliances
• R&D expenses: ¥66.4 billion (consolidated)
• The number of patents held: approximately 30,000 
(14,000 in Japan and 16,000 overseas)
3  Solution that result in customer satisfaction  
p. 66
Target and KPI
Main Initiatives and Achievements in FY2021
• Number of awards from customers, government,  
and institutions
• Awards received include the 68th Okochi Prize, the 54th 
“Ichimura Prize in Industry for Distinguished Achievement“ and 
“Ichimura Global Environmental Prize in Industry for Distinguished 
Achievement”, the 2022 MEXT Minister’s Award, and the 2022 
National Commendation for Invention.
• Number of awards from customers, government, and institutions: 9
2. Quality
1  Stable production and supply  
p. 60
Target and KPI
Main Initiatives and Achievements in FY2021
• Initiatives for more stable production and supply  
(hardware and software)
• Start of refurbishment of Nagoya No. 3 coke and relining of Nagoya No. 3 blast furnace
• Standardization of veterans’ operational skills and extended use of experts
• Use of IoT and AI for operational support, efficiency improvement of facility inspection and operation monitoring, and reinforcement of 
predictive monitoring
3. Production
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Materiality of Sustainability Issues
Materiality of Sustainability Issues

Nippon Steel’s Environmental Management
Nippon Steel has set the Basic Environmental Policy based on its belief that the environmental management is 
an integral part of corporate mission. We are dedicated to managing the company so as to reduce and minimize 
impact on the environment at all stages, from technological development work to the purchase of raw materials and 
equipment, manufacturing processes, transportation of products, and onward to their use, recycling and disposal.
Three ecos
Specific initiatives in five priority areas
Five priority areas for achieving the SDGs
Basic Environmental Policy
  Transfer and diffuse decarbonization technologies overseas (Eco Solutions)
  Make efforts to address climate change in the field of resource recycling
  Make efforts to adapt to climate change
  Disclose information according to recommendations of the TCFD
  Expand efficient use of resources and energy
  Promote internal zero emission
  Accelerate recycling of waste generated in society
  Work on biodiversity conservation
  Disclose and have dialogues centering on environmental information in an 
appropriate and timely manner
  Communicate actively on environmental issues
  Conserve air environment
  Conserve water environment
  Respond to other environmental risks (soil, chemical substances and wastes)
  Establish an environmental management organization
  Work at managing and improving the level of environmental management
  Groupwide environmental management
Promotion of climate change measures
Contributing to creation of a circular economy
Promotion of environmental relation activities
Promotion of environmental risk management
Promotion of environmental management system
1  Reducing environmental impacts at every stage of operations (Eco Process)
2  Offering of environment-oriented products (Eco Products)
3  Proposing environmental preservation solutions from a global perspective (Eco Solution)
4  Development of innovative technologies
5  Development of a rich environment
6  Promotion of environmental relations activities
Sustainable Development Goals (SDGs)
Five priority areas
In order to achieve the SDGs, we have identified five priority areas based on our Basic Environmental Policy and are working on various environmental issues.
Recognizing that efforts in the five priority areas are important for the realization of a sustainable society, we are steadily implementing measures in each of these areas.
	
In particular, since we announced the Carbon Neutral Vision 2025 in March 2021, we have been actively working on climate change measures as the most 
important management issue.
Carbon Neutral Vision 2050
Provision of two types of value
Provision of high-performance steel 
products and solutions that contribute 
to reducing CO2 emissions in society
Reduce CO2 emissions at 
the time of production and 
processing by customers
Reduce CO2 emissions at the 
time of use of our products by 
end customers
Reduce CO2 emissions in customers’ 
supply chains
Provision of carbon neutral 
steel through decarbonizing our 
steelmaking processes
Innovative Technology Development
Under the principle of “Ecological Management,” Nippon Steel is committed to contributing to the creation of an environmental-preservation oriented society with 
lower environmental impact. For this purpose, the company will conduct business activities based on the viewpoint of environmental preservation in local com-
munities, which includes the maintenance and improvement of good living environments and the promotion of reduction and recycling of waste. The company will 
also address challenges on a global scale including response to issues of global warming as well as the maintenance and improvement of biological diversity.
We produce and offer eco-friendly “products” using our 
world-leading technological capabilities, thus conserving 
resources and energy and thereby contributing towards 
building a sustainable society.
ECO PRODUCTS  What we produce is “eco-friendly”
We contribute to the reduction of CO2 emissions and 
other environmental impact on a global scale by diffusing 
our Group’s world-class environmental and energy-saving 
technologies in Japan and overseas.
ECO SOLUTION  Sharing our “eco-solutions”
Nippon Steel uses world-leading resources and world-leading 
energy efficiency to manufacture steel products and aims 
to develop eco-friendly steelmaking processes by further 
improving efficiency.
ECO PROCESS  The way we manufacture is “eco-friendly”
Promotion of 
environmental 
management 
system
Contributing to 
creation of a 
circular economy
Promotion of 
environmental risk 
management
Promotion of 
environmental 
relation activities
Promotion of climate 
change measures
Contribution
Raising challenges
  Ensure progress toward the Carbon Neutral Vision 2050
 Provision of two types of value 
High-performance steel products and solutions (Eco Products) 
Decarbonization of steelmaking process (Eco Process)
 Establish a Green Transformation (GX) Promotion System
 Cooperate with society, make policy proposals, and work in industry organizations for 
achieving carbon neutrality
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Environmental Initiatives
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NIPPON STEEL CORPORATION
Nippon Steel’s Environmental Management

Nippon Steel has built an environmental governance and management system that includes not only its own steelworks 
and factories, but also its group companies in Japan and abroad. Activities to reduce environmental risks are promoted 
by combining internal and external environmental audits and following the plan-do-check-act (PDCA) cycle.
Establishment of environmental management system
Environmental risk management concerning Group companies
Costs associated with environmental conservation (Environmental accounting)
Efforts to maintain and improve environmental management levels
Nippon Steel has two committees — the Environmental Management 
Committee and the Green Transformation Promotion Committee — to 
address environmental issues, including climate change.
	
The Environmental Management Committee is chaired by the Executive 
Vice President in charge of Environment. Other Executive Vice Presidents, 
Directors and Executive Officers are members of the Committee. Meetings 
are held every six months. The Committee manages climate change 
and environmental risks such as air, water and waste. As a part of the 
enhancement of governance, environmental general manager meetings and 
environmental group leader meetings, with participation by people from all 
steelworks, are regularly held. In particular, Nippon Steel works to reduce 
risks related to settled dust, wastewater, and waste including activities, 
based on the work of experts conferences held for each of these areas.
	
The Green Transformation Promotion Committee is chaired jointly by 
the Executive Vice President in charge of Environment and the Executive 
In accordance with the international standard ISO 14001, Nippon Steel has 
built an environmental management system, with each steelwork general 
manager serving as the responsible person. Each year, in addition to an 
internal auditing of each steelworks and a management review by its gen-
eral manager, each steelworks is audited by the Head Office Environment 
Department. Environment officers of other steelworks and facilities also 
participate in these audits to cross-check. In addition, periodical reviews are 
conducted by the ISO certification agency.
	
For the group companies (79 companies subject to environmental 
review) including those overseas, a direct interview is conducted by 
a member of the Head Office Environment Department to improve 
From the group companies in Japan, Nippon Steel has identified 57 
companies (as of April 2022) as having certain environmental impact and 
holds meetings for those companies twice a year. In the meetings, we share 
information including the latest trends of environmental laws and regulations, 
Nippon Steel has adopted environmental accounting to be used as guidelines 
for corporate activities, and to accurately track the environmental costs 
and effects. Environmental conservation costs, which combine the costs of 
capital investment associated with environmental measures, energy-saving 
It is difficult to quantify environmental preservation effects in monetary terms, 
since such calculation would require many assumptions. Therefore, envi-
ronmental preservation performance is kept track of as effects taking envi-
ronmental measures, which are reported in this report and on our website. 
For example, reduction in energy consumption is shown on page 19; water 
consumption volume, on page 40; and various resources spent, on page 37.
Vice President in charge of Technology. Other Executive Vice Presidents, 
Directors and Executive Officers are also members of the Committee. The 
committee meets as needed to review important matters related to the 
promotion of carbon neutrality (changes in the external environment, update 
on the initiatives, etc.)
	
The content of discussions on climate change and the environment 
at the two committees are reported and discussed as one of the risk 
management items of the entire company at the Management Committee 
and the Board of Directors meetings, both of which are attended by the 
Chairman and the President. The Board of Directors oversees the risk 
management by being regularly reported about important management risks 
which were initially reported and discussed at the Management Committee. 
Environmental issues, including climate issues, are addressed at least 
four times a year. In this way, climate change and other environmental 
management are integrated into our overall governance.
management levels. This is part of the corporate governance conducted by 
the Head Office Internal Control/Audit Department.
cases of environmental initiatives with the goal of reducing environmental 
risks. In addition, we have established a venue to share information within 
the portal site to disseminate information on environmental regulatory trends 
and the troubles.
measures, and recycling measures, and expenses incurred to conserve the 
environment, totaled ¥148.7 billion in fiscal 2021: ¥16.3 billion for capital 
investment and ¥132.3 billion for environmental conservation. Details for 
environmental conservation costs are listed below.
	
For atmospheric substances, SOx and NOx emissions are shown; 
for water quality and soil, individual performance indicators are used; for 
hazardous chemical substances, actual reduction volume of substances 
such as dioxins, benzene, and VOCs are stated; and for waste products, 
reduction in final disposal volume is stated.
Environmental conservation costs
(¥ billion)
Environmental management system
Board of Directors
Environmental general 
manager meeting and 
group leader meeting
Environment Division 
(Steelworks)
ISO14001 
external audit
Matters to be discussed and reported in the Board of Directors meetings
• Reporting on the environmental situation (climate change issues, etc.)
• Sustainability-related information disclosure
• Status of studies on carbon neutrality, etc.
Agenda items
• Update on environmental risk management efforts
• Challenges for establishing a circular-oriented society
• Climate change issues, etc.
Agenda items
• Important matters concerning the Carbon Neutral Vision  
(changes in the external environment, update on the initiatives, etc.)
Group Companies 
Environmental Conference
Domestic Group companies
Overseas Group companies
Management Committee
Environmental Management Committee
Green Transformation Promotion Committee
Environment Division (Head office)
External 
companies and 
institutions
External 
companies and 
institutions
Green Transformation Development Sector
Information sharing
Information sharing
Incident reporting
Meeting
Auditing
Internal audit (on-site patrol)
Internal audit (hearings)
Item
FY2021
Capital expenditures
Total expenses
Pollution Prevention Costs
Air pollution control (including measures against dust)
13.2
30.2
Water and soil pollution prevention, noise and vibration prevention
0.5
9.3
Global Warming Prevention 
Costs
Energy saving measures (including energy recovery facilities such as 
TRT and CDQ)
2.7
6.1
Costs of Recycling Resources
Recycling of resources and generated materials
–
47.1
Industrial waste treatment (including PCB)
–
10.8
Business-related general waste treatment, etc.
–
0.5
Environmental Management 
Activities Cost
Construction of EMS and acquisition of ISO14001 certification
–
0
Monitoring and measurement of environmental loads
–
1.5
Personnel expenditures related to environmental measures, etc.
–
2.6
Research and Development 
Costs
Development of Eco Products
–
5.9
Development of products which have low environmental impact during 
manufacture, etc.
–
12.6
Social Activity Costs
Beautification and greening of offices
–
1.2
Supporting environmental organizations, etc.
–
0.1
Other Environmental Costs
Environmental fines, etc.
–
4.4
Total
16.3
132.3
Promotion of Environmental 
Management System
Collaboration
Collaboration
Collaboration
17
18
Environmental Initiatives
Sustainability report 2022
Sustainability report 2022
NIPPON STEEL CORPORATION
Promotion of Environmental Management System

(FY)
CO2 emissions (thousand tons-CO2)
Calculation method
2013
2017
2018
2019
2020
2021
Scope 1  Direct emissions from owned sources 
associated with use of fuel
89,57810
80,72810
81,33710
78,58410
62,98710
71,292
Based on the Carbon Neutrality Action Plan.
See the boundary of data collection stated below.
Scope 2  Indirect emissions from the generation of 
purchased energy
13,82510
12,96810
12,85010
12,09110
11,03510
12,4788
Scope 1 + 2
(Energy consumption per ton of crude steel: t–CO2/t)
103,40310
1.89
93,69610
1.89
94,18710
1.89
90,67510
1.93 
74,02210
1.97
83,7708
1.88 
Crude steel production (consolidated-base, 10,000 tons)
5,474
4,968
4,990 
4,709
3,766
4,445
(FY)
CO2 emissions (thousand tons-CO2)
Calculation method
2019
2020
2021
Scope 3  All indirect emissions (not included in scope 2) that occur in the value chain of the 
reporting company
1  Purchased goods and services
17,06311
14,37911
15,994
Calculated using method 12 below for purchased 
iron ore, coking coal, coke, and oxygen
2  Capital goods
1,656
1,632
1,400
[Amount of capital expenditures] X [Emission factor]
3  Fuel and energy related activities not included in Scope 1 or 2
305
291
338
[Amount of electric power procured and fuel used] X 
[Emission factor]
4  Upstream Transportation and Distribution
683
629
710
[Transportation distance reported in the Energy 
Saving Law document] X [Emission factor]
5  Waste generated in operations
5
4
5
[Amount of waste] X [Emission factor]
6  Business travel
4
4
4
[Number of employees] X [Emission factor]
7  Employee commuting
13
14
14
[Number of employees] X [Emission factor]
15  Investments
1,208
1,125
1,053
[Emissions by subsidiaries and affiliates that 
emit GHG of over 10,000 tons] X [Equity stake of 
each company]
Transportation quantity: 
10,000 tons/year
Million ton-kilometers/
year
g-CO2/
ton-kilometers
Ship
1,861
(56%)
13,407
(91%)
39
Railway
6
(0%)
39
(0%)
25
Truck and trailer
1,451
(44%)
1,266
(9%)
211
Total
3,318 (100%)
14,712 (100%)
Promotion of Climate Change Measures
Nippon Steel recognizes climate change as a priority problem that threatens survival of the human race. Climate change 
would also severely affect our business environment and earnings. In order to do our share of actions needed to influence 
the environment, and at the same time ensure sustainable operations, we are working at energy conservation and CO2 
emissions reduction throughout our supply chain.
Nippon Steel Group’s efforts for energy conservation and CO2 emissions reduction
In March 2021, we announced the Nippon Steel Carbon Neutral Vision 
2050, in support of the Japanese government’s ambitious policy to realize a 
carbon-neutral society in 2050. Through carbon neutralization, we will offer 
two types of value: “Provision of high-performance steel products and solu-
tions that contribute to reducing CO2 emissions in society” and “provision of 
carbon neutral steel through decarbonizing steelmaking processes.” We aim 
to reduce CO2 emissions at the time of production and processing by our 
customers, at the time of use of our products by end consumers; and in the 
supply chain of our customers.
	
In addition, Nippon Steel by itself as well as the Nippon Steel Group 
including consolidated crude steelmaking companies that have blast 
furnaces and electric furnaces with high CO2 emissions have set a target 
for 30% reduction in CO2 emissions in 2030 compared to 2013. Also, our 
major domestic consolidated subsidiaries aim to be carbon neutral in 2050. 
Our overall Group will work together to tackle climate change issues.
Nippon Steel Group’s energy consumption and energy-derived CO2 emissions
Nippon Steel has been working on energy conservation from diverse starting 
points: improving efficient use of energy generated in the steelmaking pro-
cess (i.e., power generation from recovered by-product gas and waste heat); 
making operational improvements in each process; renovation of older coke 
ovens and other equipment; introduction of high-efficiency power generation 
facilities and oxygen plants; and conversion to regenerative burners in the 
reheating furnaces.
	
In fiscal 2020, energy consumption and energy-derived CO2 emissions 
decreased significantly mainly due to the impact of the COVID-19 pandemic. 
In fiscal 2021, as we implemented energy-saving measures while the pro-
duction volume is recovering, our energy consumption and energy-derived 
CO2 emissions increased to 1,025 petajoules (PJ) and 87 million tons 
(preliminary) respectively.
Energy consumption5
[Calculation method]
Calculation for the Company and its domestic subsidiaries is based on the Carbon Neutrality Action Plan.
Overseas subsidiaries follow local regulations or guidelines for calculation.
[Conversion factor]
The Company and its domestic subsidiaries use the “Table of heat generation and carbon emission coefficient by 
energy source” (revised January 31, 2020) of the Agency for Natural Resources and Energy, METI.
Overseas subsidiaries use relevant emission factors according to local regulations or guidelines.
[Boundary of data collection]
Nippon Steel 2, 3, associated EAF mills (Osaka Steel, Sanyo Special Steel, Nippon Steel Stainless Steel, Oji Steel, 
Tokai Special Steel, Nippon Steel Structural Shapes Corporation, Tokyo Kohtetsu, Ovako, Sanyo Special Steel 
Manufacturing India, and Standard Steel), and three Sanso Center companies 4
The data collection period used is each company’s accounting period. As Ovako has changed its fiscal year end, 
Ovako’s fiscal 2021 results cover a period from January 1, 2021 to March 31, 2022 (15 months).
 Nippon Steel    Group Companies
(FY)
1,300
1,200
1,100
1,000
900
800
0
2013
2017
2018
2019
2020
2021
(PJ)
1,246
1,171
75
1,138
1,065
73
1,151
1,077
73
1,109
1,044
65
1,025
957
67
912
58
854
 mark: Items assured by the third party
Energy-derived CO2 emissions5
	 1	 Preliminary figure: The amount of CO2 per unit of purchased electricity from each of general power companies 
in Japan in fiscal 2021 is assumed to be the same amount as in fiscal 2020.
	 2	 Excluding energy consumption and CO2 emission associated with the IPP operation by the steelworks
	 3	 The amounts of energy consumption required for production of coke purchased by Nippon Steel and CO2 
emissions are included in the aggregate.
	 4	 Concerning the three Sanso Center companies, the amount of energy consumption required for production of 
oxygen purchased by Nippon Steel Group and CO2 emissions are included in the aggregate.
	 5	 According to the change in the boundary of data collection, the amounts of energy consumption and CO2 
emissions in the past years have been revised retroactively.
 Nippon Steel    Group Companies
(FY)
110
100
90
80
70
0
2013
2017
2018
2019
2020
2021
2030
(million t-CO2)
107
4
4
4
3
3
3
102
93
94
91
74
83
97
98
94
77
87
-30%
75
 mark: Items assured by the third party
(preliminary)1
Target
CO2 emissions in the value chain
CO2 emissions originated from energy source and generated in Nippon Steel’s manufacturing process (Scope 1 and Scope 2) as well as CO2 emissions in the 
value chain (Scope 3), which are calculated by using the Green Value Chain Platform of the Ministry of the Environment and other methods are as follows.
 marks: Items assured by the third party
Scope 1 and 2
[Conversion factor]
The Company and its domestic subsidiaries use the “Table of heat generation and carbon emission coefficient by 
energy source” (revised January 31, 2020) of the Agency for Natural Resources and Energy, METI.
Overseas subsidiaries use relevant emission factors according to local rules or guidelines.
[Boundary of data collection]
Nippon Steel9 and associated EAF mills (Osaka Steel, Sanyo Special Steel, Nippon Steel Stainless Steel, Oji Steel, 
Tokai Special Steel, Tokyo Kohtetsu, Nippon Steel Structural Shapes Corporation, Ovako, Sanyo Special Steel 
Manufacturing India, and Standard Steel). The data collection period used is each company’s accounting period.  
As Ovako has changed its fiscal year end, Ovako’s fiscal 2021 results cover a period from January 1, 2021 to 
March 31, 2022 (15 months).
	 8	 Preliminary figure: The amount of CO2 per unit of purchased electricity from each of general power companies 
in Japan in fiscal 2021 is assumed to be the same amount as in fiscal 2020.
	 9	 Excluding CO2 emission associated with the IPP operation by the steelworks.
	10	 The breakdown of Scope 1 and Scope 2 of the past years are according to the changed boundary of data 
collection and retroactively revised.
Scope3
 mark: Items assured by the third party
[Source of emission factor]
“Emissions unit value database for accounting of greenhouse gas emissions throughout the supply chain (ver. 3.2)” 
(March 2022, Ministry of the Environment)
“Table of heat generation and carbon emission coefficient by energy source” (Revised January 31, 2020; METI, 
Agency for Natural Resources and Energy)
[Boundary of data collection] Nippon Steel
	11	 Past figures are retroactively revised according to the change in calculation method.
	12	 Iron ore and coal: [Amount purchased of procured iron ore and coal] X [Emission factor]
	 	 Coke: [Amount purchased of procured coal at source] X [Emission factor] + [Amount of energy used in pro-
duction of coke] X [Emission factor by energy source]
	 	 Oxygen: [Amount of energy used in production of oxygen] X [Emission factor by energy source]
Example of Scope 3 efforts: CO2 emission reduction by raising efficiency in logistics
Nippon Steel maintains a high modal shift rate13 of 97% and works at 
reducing CO2 emission by raising efficiency in logistics, such as by use of 
large vessels. As part of the efforts, we have begun to use “Utashima” — a 
hybrid-type cargo vessel, equipped with lithium-ion batteries. This vessel was 
awarded the Small Cargo Vessel Award of the Ship of the Year 201914. In 
March 2022, our three cargo vessels were rated the highest in the Coastal 
Ship Energy Conservation Rating of the Ministry of Land, Infrastructure, 
Transport and Tourism.
	
We have also decided to introduce cargo vessels equipped with a 
hybrid propulsion system consisting of a natural gas-fueled engine and bat-
tery, for marine transportation of domestic 
raw materials.
Hybrid Cargo Ship “Utashima” equipped with lithium-ion batteries
	
We will continue to cooperate with relevant ministries, agencies, and 
organizations to promote use of ships utilizing alternative fuels, in order to 
reduce greenhouse gas emissions in marine transportation.
Logistics sector’s ton-kilometer15 achievements for FY2021
(Reference)
	13	 Modal shift rate: Modal shift means replacing a means of transport from trucks to trains and ships. The modal shift 
rate, according to the definition by the Ministry of Land, Infrastructure, Transport and Tourism, is a ratio of volume 
transported by trains and marine transportation (including ferries) in long distance transport of over 500 km.
	14	 Award by the Japan Society of Naval Architects and Ocean Engineers
	15	 Ton-kilometer: Total sum of the weight of load (ton) transported multiplied by transport distance (km). The 
reference amounts (in grams) of CO2 emissions per ton-kilometer travelled are the average for all industries 
(Ministry of Land, Infrastructure, Transport and Tourism)
1. Safety, environment,  
and disaster prevention
19
20
Environmental Initiatives
Sustainability report 2022
Sustainability report 2022
NIPPON STEEL CORPORATION
Promotion of Climate Change Measures

In addition to promoting drastic technological innovation in the steelmaking 
process, we are contributing to the realization of a carbon neutral society 
in Japan by providing high-performance steel products (Eco-Products) that 
help customers save energy and that reduces CO2 emissions when using 
final products.
	
Specifically, in response to the growing demand for electrical steel 
sheets that reduce energy loss for motors of electric vehicles and trans-
formers, and demand for higher grade steel products, we have decided to 
implement measures to improve the capacity and quality of electrical steel 
sheets and are currently investing ¥123 billion in total in the Kyushu Works 
Yawata Area and Setouchi Works Hirohata Area.
	
In addition, in response to the growing demand for ultra-high-tensile steel 
sheets that improve automobiles by the combination of lighter weight and 
higher strength, we have also begun to establish a new-generation hot-rolling 
mill in the Nagoya Works. We will continue to provide high-performance steel 
products and solutions that are compatible with this carbon neutral initiative, 
contributing to the reduction of CO2 emissions in production and processing by 
our customers and in the use phase of our products by end consumers.
Improvement of the capacity and quality of electrical steel sheets
Construction of a next-generation hot strip mill and production of ultra-high-tensile steel sheets
Examples of high-performance steel materials for achieving a carbon neutral society
In the automotive industry, where global environmental regulations are show-
ing a trend of tightening and where crashworthiness standards are becom-
ing more stringent, demand for high-performance materials is expected to 
further grow in response to the need for lighter, stronger vehicle bodies.
	
For the foreseeable future, demand for electric and hybrid vehicles 
will have high growth potential, increasing needs for lighter and stronger 
vehicle bodies that support extended travel distance, heavier battery 
weight, and higher safety.
In support of the ambitious government policy to realize a carbon neutral society in 2050, we announced the 
Carbon Neutral Vision 2050 as a part of the Medium- to Long-Term Management Plan in March 2021.
Providing two types of values by achieving carbon neutrality
Social demand for carbon neutrality
Social demands for the carbon neutrality
Social demands for safety
By providing high-performance steel products and solutions, and by decarbonizing steelmaking 
process ahead of other countries, we are determined to provide carbon neutral steel to our customers 
(including approximately 6,000 companies in Japan) and support their international competitiveness.
Demand growth and performance improvement of EV motors
(Higher efficiency, smaller size and lighter weight)
More stringent fuel economy 
regulations for conventional internal 
combustion vehicles
Demands for lighter weight associated 
with electrification of vehicles  
(mileage, battery weight)
Stricter crashworthiness standards
Stronger regulations for higher efficiency 
transformers worldwide
Reduce CO2 emissions at 
the time of production and 
processing by customers
Reduce CO2 emissions at the 
time of use of our products 
by end customers
Reduce CO2 emissions in 
customers’ supply chains
Supply of high-grade electrical steel sheets as the 
most economical means to meet these demands
Growing needs for ultra-high-tensile steel sheets, which are both  
lighter and higher in strength, and have a higher level of workability
Considering additional capacity measures to cope with the growing demand for higher grade products, assuming 
accelerating shift toward EVs and carbon neutral energy transformation for achieving carbon neutrality
In order to drastically strengthen the production system of high-performance steel sheets such as ultra-high-tensile steel sheets at the Nagoya Works, a 
core base for automobile steel sheet manufacturing, we are combining the knowledge and experience of many years’ R&D in pursuit of the potential of 
steel materials and are constructing a next-generation hot strip rolling mill with the world’s largest load-bearing rolling machine, which will give us 
dramatically improved rolling control and temperature control.
Currently investing in measures for the improvement in capacity and quality (1.5X increase in NO + GO capacity including 3.5X increase in high-grade products)  
in order to both meet the growing demand for electrical steel sheets that reduce energy loss of motors and transformers, and satisfy demand for higher grade products
Non-Oriented (NO) 
electrical steel sheets 
⇒ for motors
Grain-Oriented (GO) 
electrical steel sheets 
⇒ for transformers
Providing high-performance steel products and solutions that help reduce overall 
CO2 emissions
Providing two type of values targeted by the Carbon Neutral Vision 2050
As the world is rapidly moving toward decarbonization, regulations 
concerning energy efficiency of transformers have been tightened in a 
number of countries. With regard to grain-oriented (GO) electrical steel 
sheets used in the iron core of transformers, the need for higher-grade 
materials with less energy loss is anticipated to further increase. In the 
meantime, demand for high-efficiency high-grade non-oriented (NO) 
electrical steel sheets used in the iron core of electric vehicles (EVs) is 
also expected to dramatically increase, driven by accelerated growth in 
demand for EVs, along with the stricter regulations for CO2 emissions and 
average fuel economy for vehicles.
	
In order to respond quickly to this accelerating need, we decided 
to invest a total of ¥123 billion to improve the capacity and quality of 
electrical steel sheets at the Kyushu Works Yawata Area and the Setouchi 
Works Hirohata Area, and have been working to make this investment 
fully effective by the first half of fiscal 2024.
	
In response to these needs, we have decided to make strategic 
investment in a next-generation hot strip rolling mill (production capacity: 
approximately 6 million tons/year: commissioning in the first quarter of 
fiscal 2026) as a means of fundamentally strengthening our production 
system for ultra-high-tensile steel sheets and other high-performance 
steel sheets at the Nagoya Works — our core base for manufacturing 
automotive steel sheets.
HYDEREXELTM stainless steel for high-pressure hydrogen environments
Steel for high-strength gears
Stainless steel for hydrogen 
infrastructure with enhanced 
strength and workability
Reduction of manufacturing 
process steps, and weight 
reduction by increasing the 
strength of the material
Contributing to social 
dissemination of next-
generation energy use
CO2 emissions reduction 
during production
Improved fuel economy
Iwatani Hydrogen Refueling Station in Ariake, Tokyo
Photo by Iwatani Corporation
When Nippon Steel announced its Carbon Neutral Vision 2050 in March 
2021, the Company positioned climate change issues as the priority man-
agement challenge for the Medium- to Long-Term Management Plan.
	
We have taken up the challenge to achieve carbon neutrality in 2050, 
and are striving to reduce CO2 in our value chain by providing two types 
of value: by providing high-performance steel products and solutions that 
contribute to reducing CO2 emissions throughout society, and by providing 
carbon neutral steel through decarbonization of the steelmaking process.
Promotion of Carbon Neutral Vision 2050
Provision of high-performance steel 
products and solutions that contribute 
to reducing CO2 emissions in society
Decarbonization of steelmaking 
process for providing carbon 
neutral steel
21
22
Environmental Initiatives
Sustainability report 2022
Sustainability report 2022
NIPPON STEEL CORPORATION
 Promotion of Climate Change Measures
Promotion of Climate Change Measures

Inner volume
5,000 m3
BF gas
CO2
CO2
CO→CO2
CO→CO2
C→CO
C→CO
Coke layer
Coke layer
Cokes
Cokes
Iron ore
↓
Iron
Non-ferrous
components
Molten slag
Molten iron
Molten slag
Molten iron
Cokes
Cokes
Iron ore
Iron ore
Raw
materials
Hot blast (1,200°C)
Pulverized coal
Technical Issues for realizing a carbon-neutral production process
Reduction with carbon vs. hydrogen
• Generating CO2
• Due to the exothermic reaction,  
1) the reaction is sustained and 
2) the iron is melted at high 
temperature, and the composition 
can be easily adjusted
• Generating H2O (steam)
• Due to the temperature drop in 
the furnace,  
1) the reaction is not sustained and 
2) produced iron does not melt
Reduction 
with 
carbon
Reduction 
with 
hydrogen
In nature, iron exists as oxidized iron ore. To produce steel 
products, oxygen must be removed (= reduced) from iron 
ore. This reduction process has been carried out by the 
blast furnace (BF) and the basic oxygen furnace (BOF), using 
carbon such as coal.
	
In this process, coal (coke) is 1) a reducing agent, 2) a 
source of heat, and 3) plays a role to support the function 
of raw materials at high temperature in a solid form while 
facilitating to maintain ventilation in the furnace. Although 
the coal (coke) has been utilized in a continuous, efficient 
steelmaking from iron ore, CO2 is inevitably generated during 
the reduction reaction.
	
We are therefore drastically reviewing this process and 
plans to reduce CO2 emissions by replacing coal (coke) as 
a reducing agent with hydrogen to produce H2O instead of 
carbon in the reduction.
	
However, as reduction with hydrogen is an endothermic 
reaction, the temperature drop in the furnace causes problems 
such as the reaction not being sustained and the iron not 
melting. In order to realize hydrogen steelmaking, we are 
tackling these problems by development of breakthrough tech-
nologies such as 1) high-temperature heating of flammable 
hydrogen, 2) securing of gas flow in the furnace, 3) additional 
melting process, and 4) large-scale production for production.
Fe + O
Fe + O
C
H2
CO2
H2O
Fe
Fe
Reduction reaction in blast furnaces
We have formulated a target of reducing total CO2 emissions by 30% by 
2030, compared to the 2013 baseline and of achieving carbon neutrality in 
2050. We are working to develop and actually implement breakthrough tech-
nologies in steelmaking process ahead of steel companies in other countries.
	
Our plan is ambitious compared to those of our global peers, and is 
intended to significantly contribute to the Japanese government’s plan. With 
the assistance of the Green Innovation Fund1, we are working on specific 
plans of the roadmap of development and practical implementation.
Total CO2 emissions (million tons/year)4
2013
2030
Target
2050
Vision
Ambition to become carbon neutral by taking up the challenge to mass 
produce high-grade steel in large size EAFs and to realize hydrogen steel-
making (i.e., Super COURSE50 use of BFs; direct reduction with 100% 
hydrogen), and with multi-aspect approach, including CCUS3 and other 
carbon offset measures.
Ambition to become carbon neutral
Vision 2050
3 Carbon Capture, Utilization and Storage
* BF: Blast Furnace, BOF: Basic 
Oxygen Furnace, EAF: Electric 
Arc Furnace
* BF: Blast Furnace, BOF: Basic Oxygen Furnace, EAF: Electric Arc Furnace
2 COURSE50: Abbreviation for CO2 Ultimate Reduction System for cool Earth 50
30% 
reduction
Carbon neutral
(vs. 2013)
102
70
[Scope of scenario]
Domestic
SCOPE 1+2 (direct emissions in our production sites + indirect emissions from purchased electricity)
4 Including Nippon Coke & Engineering Co., Ltd. and Sanso Center Co., Ltd.
30% or more reduction in total  
CO2 emissions vs. 2013
30% reduction in total CO2 emissions vs. 2013 by implementing the 
COURSE502 in the existing BF and BOF process, reducing CO2 emissions in 
existing processes, and establishing an efficient production framework.
2030 Target
Carbon 
offset
Decarbonization of steelmaking process for providing carbon neutral steel
Our CO2 emissions reduction scenario
Carbon neutral steel production process (conceptual)
 Three breakthrough technologies
 Three external conditions required to achieve carbon neutrality
BF and BOF route
EAF route
Iron ore
Coking coal
INPUT
Process
OUTPUT
CCUS
Chemicals, biofixing, 
underground storage
Increase in use of scrap
Direct 
reduced iron
Converter
Rolling
Direct 
reduced iron
CO2
Scrap
100% hydrogen use in direct 
reduction process
3
Hydrogen injection into BF
1
Carbon free power
Reduction with 
hydrogen
from iron ore
Fe2O3
H2
H2O
Fe
Steel is produced
Smelting
Reduction
• No CO2 generation
• Endothermic reaction
Carbon free hydrogen
Roadmap to achieve the Carbon Neutral Vision
CO2 
reduction 
target
2020
2030
2050
30% reduction (2013 baseline)
Carbon neutral
Lower CO2 emissions in existing processes (advance in existing technology, expanded use of scraps and waste plastics, etc.)
Lower carbon power (high-efficiency power generation facilities, use of low carbon fuel in coal-powered generation, etc.)
Building of an efficient production system (centralized production at an integrated steel mill, etc.) (some BFs to EAFs, etc.)
1  COURSE50
CCS (geological storage)/CCU (utilization)
Super COURSE50
Dev’t
2008–
Development
Demonstration 
(Kimitsu)
Demonstration
Hydrogen  
injection into BF
External 
conditions
Breakthrough technology 
development
Implementation
Implementation
1
2  Production of high-grade steel in large size EAFs
Implementation
3  100% hydrogen use in direct reduction
Implementation
BF-BOF route
EAF route
1 Commissioned and grant projects of New Energy and Industrial Technology Development Organization (NEDO), 
which supports companies to carry out projects aimed at achieving ambitious targets for 2030 in focused areas 
of the Japanese Government’s Green Growth Strategy, such as CO2 emission reduction.
High-grade steel production 
in large size EAF
2
1,000°C
1,400°C
1,500°C
Hydrogen 
removes oxygen 
(reduction)
Smelting is 
required in the 
next process
23
24
Environmental Initiatives
Sustainability report 2022
Sustainability report 2022
NIPPON STEEL CORPORATION
Promotion of Climate Change Measures
 Promotion of Climate Change Measures

Super COURSE50  
actual furnace
External 
hydrogen
Challenge of developing breakthrough technologies
Japan’s three blast furnace steelmakers and Nippon Steel Engineering have 
been developing the COURSE50 blast furnace, which partially replaces 
carbon used in the furnace as a reducing agent with the hydrogen-rich 
gas generated in the integrated steel mill. We have already verified that 
the technology can reduce CO2 emissions in the test furnace. We plan to 
start demonstration of the COURSE50 at Kimitsu No. 2 blast furnace in the 
second half of fiscal 2025 as a Green Innovation Fund project.
In fiscal 2022, the new electric arc furnace (EAF) started commercial opera-
tion at the Setouchi Works Hirohata Area, and we will accumulate knowledge 
of high-grade steelmaking in an EAF through the commercial production 
of electrical steel sheet in this world’s first such integrated steelmaking 
arrangement. At the same time, we are developing high-grade steelmaking 
technology in large electric furnaces in a Green Innovation Fund project. As 
a part of the project, we will set up a small EAF (capacity: 10 tons) in the 
Hasaki R&D Center and start experiments in fiscal 2024.
In the 100% hydrogen use in direct reduction, we try zero CO2 emissions in 
reduction process by fully using hydrogen as the reducing agent. Since this 
process produces solid direct reduced iron (DRI), it is necessary to melt it 
and separate out its gangue component (the material present together with 
ore) in the subsequent process such as in the blast furnace (BF) or EAF.
	
Most of the actual direct reduction methods currently use high-grade 
iron ore, which is not easily broken or sticked to each other, during the 
reduction process. As the high-grade one is limited to about 10% of iron ore 
available in the market, we will challenge to use lower-grade iron ore in the 
process. Current DRI process uses methane (natural gas) as the reducing 
agent. Methane contains carbon and hence emits CO2. We try 100% use of 
hydrogen as the reducing agent in the direct reduction process.  
Reduction with hydrogen in blast furnaces
High-grade steel production in large-sized EAFs
100% hydrogen use in direct reduction process
1
2
3
	
Our subsequent plan is to install a working COURSE50 blast furnace by 
fiscal 2030, work on solving the issues related to the endothermic reaction 
and the scale-up of the furnace, and to develop the Super COURSE50 
technology so that we can reduce the blast furnace CO2 emissions by 
50% using additional hydrogen from outside. The goal is completion of the 
implementation by 2050.
Actual furnace
Development and test furnace
COURSE 50  
actual furnace
Hydrogen 
generated 
in the 
steelworks
Start demonstration at the 
Kimitsu No. 2 blast furnace 
in 2H FY2025
Complete actual 
implementation 
by 2050
50% decrease in 
CO2 emissions
Started testing in FY2008
Start testing in FY 2022
COURSE50
Iron ore
Direct reduced iron
CO2
H2O
Hydrogen 
generated in 
the steelworks
Coking coal
Heating
Super COURSE50
Iron ore
Direct reduced iron
CO2
H2O
CCUS
CCUS
Coking coal
External hydrogen
Super COURSE50  
test furnace
COURSE50  
test furnace
	
Our subsequent plans are to establish technology to produce high-
grade steel that can be used for automobile outer panels, by using direct 
reduced iron with hydrogen from low-grade iron ore and also using steel 
scrap as materials. By controlling the impurity concentration using a large-
sized EAF process (approximately 300 tons in processing volume), similar 
volume as BF-BOF process, we will establish the technology by fiscal 2030.
The process, however, has its own high technical issues, too. Since the 
reduction process with hydrogen is an endothermic reaction, it is necessary 
to supply heat to maintain the reaction. In addition, in the case of using a 
shaft furnace, powdering of the raw material pellets, and sticking of pro-
duced iron pellets are the problems to be solved.
	
As a Green Innovation Fund project, we will build a small furnace (10 
tons) in the Hasaki R&D Center and start experiments in fiscal 2025. Then, 
by 2050, we aim to solve issues such as utilization of low-grade iron ore 
and conversion of reduction material from natural gas to hydrogen, and to 
commercialize a direct hydrogen reduction reactor using low-grade iron ore 
from Australia and other countries as feedstock.
Mass-production of 
high-grade steel in 
large size EAFs
BF-grade 
high-quality 
steel
Larger EAFs
Current EAF 
grade
Small EAF: 
FY2024
Commercial 
operation in 2022
Implementation in FY2030
Hirohata EAF
Commercial production of the 
world’s first highest-grade 
EAF steel
Current EAF
COLUMN
Efforts toward stable procurement of hydrogen
Nippon Steel has a strong interest in hydrogen from a variety of per-
spectives, including the fact that we have the potential to become one 
of Japan’s leading hydrogen users in the future (we estimate that the 
amount of hydrogen needed to be carbon neutral at our company will 
exceed 7 million tons per year), the need to realize a lower hydrogen 
price than other industries need3, and that we are a major supplier of 
steel for hydrogen infrastructure.
	
We therefore participate in various hydrogen-related councils 
promoted by the Ministry of Economy, Trade and Industry and the 
Energy Agency, as well as the cross-sectional network that includes 
hydrogen-related industries such as energy, automobiles, and chem-
icals, and various organizations. We are also mindful of working with 
the system design, not only for Nippon Steel but for the entire steel 
industry, when needed.
	
Concerning the overseas procurement of hydrogen, we are consid-
ering cooperation with overseas resource majors, who may potentially 
supply hydrogen to us. We are thus active on a wide and widening front.
3 Target hydrogen cost of ¥20/Nm3 or less in the METI’s “Green Growth Strategy through Achieving Carbon 
Neutrality in 2050,” compared to the current hydrogen cost equivalent to coking coal of approx. ¥8/Nm3.
COLUMN
The COURSE50 Project  
(Environment-friendly process technology development)1
The Super COURSE50 Project2
Since 2008, the COURSE50 Project has been developing technologies 
to lower CO2 emissions by 30%: a 10% lowering emissions from 
a blast furnace by adopting technologies to reduce iron ore by use 
of hydrogen and a 20% offset by CO2 capture from BF gas. In the 
hydrogen steel making, a 10% reduction of CO2 emissions has been 
verified at a 12 m3 experimental blast furnace at the Kimitsu Area of 
the East Nippon Works and we also undertook simulation for the size 
of an actual blast furnace, moving the project closer to adoption of this 
innovative reduction technologies in commercial-use blast furnaces.
1 Commissioned project by the New Energy and Industrial Technology Development Organization (NEDO)
2 The Green Innovation Fund “Hydrogen utilization in iron and steelmaking processes” project (NEDO’s 
R&D outsourcing support and assistance project)
The COURSE50 project focuses on the technology for reducing the 
amount of carbon to be injected into blast furnaces. This is done by 
using by-product gas generated in integrated steel mills, which is 
currently used in furnaces. The project aims at realizing the hydrogen 
steelmaking in some degree, given the current circumstances, under 
which there is no social infrastructure for supplying large volumes 
of hydrogen. For achieving the Carbon Neutral Vision, however, we 
should be ready for the time when the infrastructure can provide 
sufficient hydrogen supply. We then need to take up the challenge for 
COURSE50 Project by NEDO and JISF
Direct reducing furnace
Direct reduced iron
Large-sized EAF
Production of high-grade steel
Low-grade iron 
ore pellets
Carbon free 
hydrogen
Steel scrap
Super COURSE50 — a project to reduce the amount of carbon in the 
blast furnace by purchasing hydrogen from outside the steel mill and 
further increasing the amount of hydrogen injection into the furnace.
	
In fiscal 2020 we started R&D for the Super COURSE50 project, 
as part of the program for technology development for achieving 
zero carbon steel research, at NEDO. The project became a Green 
Innovation Fund project in 2021.
H2O
Direct reducing furnace 
(shaft furnace, etc.)
Production of high-grade steel
Low-grade iron 
ore pellets
Heating
Carbon free 
hydrogen
100% hydrogen direct 
reduction furnace
100% 
hydrogen
Low-grade iron ore
High-grade iron ore
Natural gas
Study for 
scale-up from 
FY2027
Starting experiments 
with small furnace in 
FY2025
Aim at early 
commercialization
Current direct 
reducing furnace
Use low-grade iron ore from 
Australia, etc. due to Japan’s 
geographical condition
Coke oven gas containing a 
large amount of hydrogen, etc.
Reduction 
with carbon
Reduction  
with hydrogen
Reduction 
with carbon
Reduction with 
maximized hydrogen
25
26
Environmental Initiatives
Sustainability report 2022
Sustainability report 2022
NIPPON STEEL CORPORATION
Promotion of Climate Change Measures
 Promotion of Climate Change Measures

Nippon Steel Group’s CCUS technology development efforts
 Storage
CO2 storage technology
Jointly with Japan CCS Co., Engineering Advancement 
Association of Japan, and ITOCHU Corporation, we have 
commenced the R&D and demonstration project related 
to a CO2 transport vessel.
Nippon Steel and deepC Store Limited signed a joint study 
agreement concerning the liquefaction, maritime transport 
and storage of CO2 in the hub project (C Store1) of large-scale 
offshore floating capturing and transporting of liquefied CO2.
Nippon Steel Engineering Co. in the Nippon Steel Group has commercialized an 
energy-saving CO2 chemical absorption process called ESCAPTM (Energy Saving CO2 
Absorption Process), which uses chemical absorption, one of the methods for CO2 
separation and recovery. Two units are already in operation in Japan, including the 
one installed in the North Nippon Works Muroran Area.
	
The ESCAPTM is characterized by high energy efficiency with a more than 40% 
reduction in heat consumption compared to general-purpose technology. In addition, 
its proprietary impurity removal facility enables recovery of more than 99.9% of 
high-purity CO2 from raw material gas with high impurities.
	
In recognition of this high energy efficiency and practicality, Nippon Steel, Nippon 
Steel Engineering, and the Research Institute of Innovative Technology for the Earth 
(RITE) received the Ichimura Global Environmental Industry Award for Contribution for 
this joint development in fiscal 2021.
 Transportation
CO2 Transport Vessel Technology  
(subsidized as the NEDO Project)
Issues to consider and promote reducing carbon in the electric power structure
 Capture
CO2 Separation and Recovery Technology  
(subsidized by the Green Innovation Fund)
 Utilization
Manufacturing technology of chemical products made from CO2  
(subsidized by the Green Innovation Fund)
Utilization of steel for CO2 storage
 Nippon Steel and Toyama University are jointly developing a catalytic 
technology to synthesize CO2 and hydrogen, and produce industrial 
paraxylene, a feedstock material for polyesters such as polyester fibers 
and plastic bottles.
 Nippon Steel, Tohoku University, and Osaka City University are jointly 
developing a catalytic process to synthesize polycarbonate intermedi-
ates from CO2 at normal pressure.
 Total elimination of inefficient coal-fired power
 Increase efficiency in thermal power fired by by-products, utilization of CCUS, and use of non-fossil fuels for 
external auxiliary fuels (expanded use of zero-emission fuels such as biomass, ammonia, and hydrogen)
 Purchase of green power
 Nippon Steel’s high-alloy seamless steel pipes, with high corrosion resistance even in a 
high-density CO2 environment, are used in the CCS project in the European North Sea 
and in the wells of a joint research on CO2-based technologies for the promotion of crude 
oil recovery in Agano City, Niigata Prefecture.
 Develop and commercialize technology to create seaweed beds (blue 
carbon ecosystem) by using fertilizers made of steel slag, a by-product 
of steelmaking, in coastal areas.
Efforts to reduce carbon emission in power generation
CCUS technology development
We generate 89% of the electricity we use at steelworks, 75% of which 
is from internally generated energy sources such as waste heat and 
by-product gases. We also use LNG, petroleum, and coal as external-source 
auxiliary fuels. Therefore, in order to reduce the carbon content of our 
electric power structure, we will eliminate all use of inefficient coal-fired 
CCUS (Carbon Capture, Utilization and Storage) is a technology that 
separates, captures, and stores CO2 in the ground, or directly uses CO2 or 
converts it into other materials and utilizes it. In the carbon neutral steel 
production process, CCUS technology is used to process CO2 still generated 
from the steelmaking process even after it has been minimized.
	
Realization of this technology requires the related technology 
development as well as preparation of external conditions. The required 
technologies include development and installment of CO2 separation and 
recovery technology (high-performance chemical adsorption liquid) and 
power, increase efficiency of thermal power fired by by-products, and utilize 
CCUS. We will also consider use of non-fossil fuels for external auxiliary 
fuels (expanded use of zero-emission fuels such as biomass, ammonia, and 
hydrogen) and purchase of green power.
development of CO2-based manufacturing technologies for chemicals and 
fuels. The necessary external conditions include the securing of the storage 
space, the establishment of the storage infrastructure for CCS, legislation, 
and tax incentives, the ensuring of business profitability of chemicals and 
fuels manufactured by CCU (Carbon Capture and Utilization), and prefer-
ential treatment of carbon recycled products. The Nippon Steel Group is 
aggressively engaged in developing these technologies to help realize social 
implementation of CCUS.
The Green Transformation Promotion Committee has been established 
to consider and implement measures for the development and practical 
application of breakthrough technologies, which are key to achieving carbon 
neutrality, ahead of peers in other countries, as the priority management 
issue. The Committee has all five Executive Vice Presidents as its members. 
In April 2021, the committee established a project for approximately 60-70 
people to consider carbon neutral technologies of various fields. In April 
2022, it was reorganized as a permanent organization under the name 
of the Green Transformation Development Sector, and has augmented by 
additional persons to the level of approximately 90 people.
An organizational structure for achieving carbon neutrality
Structure for promoting green transformation
Board of Directors
Management Committee
CN Process Procurement Planning Dept.
CN Process Planning Dept.-I
CN Process Planning Dept.-II
CN Process Planning Dept.-III
CN Process Planning Dept.-IV
CN Process Planning Dept.-V
CN Process Planning Dept.-VI
General Planning Div
Collaboration
Five Representative Directors and Executive Vice Presidents, 
one Managing Director, three Managing Executive Officers 
including six Members of the Board, and 20 General Managers 
in charge of Corporate Planning, General Administration, Legal, 
Human Resources, Raw Materials, Accounting & Finance, 
Environment, Marketing Administration & Planning, Technical 
Administration & Planning, Plant Engineering and Facility 
Management, Energy Technology, R&D, Global Business, etc.
Green Transformation Promotion Committee
Head of Green 
Transformation 
Development
Vice Head of Green 
Transformation 
Development
Executive Vice President in charge of 
Environment
Managing Directors (Corporate Planning, 
Technical Administration & Planning, 
Ironmaking Technology, Steelmaking 
Technology, and Energy Technology)
Managing Executive Officer in charge of 
Environment
Green Transformation Development Sector
Corporate Planning Div., Accounting & 
Finance Div., General Administration Div.
Environment Div., Technical Administration 
& Planning Div.
Plant Engineering and Facility Management 
Center
Ironmaking Technology Div., Steelmaking 
Technology Div.
Energy Technology Div.
Marketing Administration & Planning Div.
Raw Materials Div.-I, Raw Materials Div.-II
R&D Laboratories
R&D Planning Div.
 Steel Research Laboratories
 Advanced Technology Research 
Laboratories
 Process Research Laboratories
Global Business Development Dept.
(Head Office)
©deepC Store Limited
Flowsheet of ESCAPTM
Hydrated form & 
Iron supply unit
Shallow bottom
Tideland
Seaweed beds
Calcia modified soil
Calcia modified soil
Hydrated form
CO2
CO2
CO2
CO2
CO2
CO2
CO2
CO2
HO
OH
R
Diol
Biomass
Metal oxide catalyst
CO2
Carbon dioxide
H
R
R
O
O
O
OH
O n
Polycarbonate 
diols
Green polymers made from 
renewable resources
Feed gas
Stripper
Pure CO2
Off-gas
Absorbent
Steam etc.
High performance model with heat pump system
Absorber
Reboiler
Pretreatment
section
Post-treatment
section
Absorption and fixation by marine life  
(subsidized as the NEDO Project)
p. 43
27
28
Environmental Initiatives
Sustainability report 2022
Sustainability report 2022
NIPPON STEEL CORPORATION
Promotion of Climate Change Measures
 Promotion of Climate Change Measures

Collaboration with society, policy proposals, and industry activities to achieve carbon neutrality
Japan’s steel industry’s international cooperation in energy conservation
Investments needed for the carbon neutral steel project
1 Minimum level estimated to be required for the time being
2021–
CAPEX for practical 
implementation
¥4-5 trillion
R&D expenses
Approx. ¥500.0 billion1
Decarbonization of steelmaking is an extremely ambitious challenge. In 
addition to development of carbon neutral technology options, carbon-free 
hydrogen and electricity, the CCUS, and other factors of social infrastructure 
are indispensable.
	
The realization of carbon neutrality in the steel industry is not just a 
challenge for steelmakers, given that steel as the basic material underpins 
international competitiveness in manufacturing. It is a national challenge 
that the whole nation should take it up, based on the policy of aiming at 
achieving the industry’s international competitiveness and carbon neutrality, 
as well as the national strategy that provides strong, continuous fiscal and 
other support.
	
The realization of carbon neutrality in the steel industry requires 
huge R&D expenditures and capital expenditures for practical use. Nippon 
Steel alone is expected to roughly require ¥0.5 trillion in R&D expenses 
and ¥4–5 trillion in capital expenditures. The decarbonizing technology 
development for the steelmaking process is presenting an appearance 
of a state-to-state competition. In order to continue to lead the world and 
maintain and strengthen Japan’s overall industrial competitiveness, long-
term, continuous government support is indispensable for “discontinuous” 
innovation and other R&D efforts and equipment implementation.
	
Europe, the United States, and China have adopted a variety of policies 
aimed at achieving carbon neutrality on the premise of securing interna-
tional competitiveness in the steel and other basic materials industries. 
Japan also needs to introduce a drastic policy system based on national 
strategy under strong government leadership in order to achieve carbon 
As a core member of the Japan Iron and Steel Federation (JISF), Nippon 
Steel is involved in multinational projects such as those for the Environment 
Committee of the World Steel Association.
	
In addition, the JISF is promoting 1  joint meetings of public and private 
steel-related parties, 2  preparation of customized list of technologies, and 
neutrality ahead of those countries and to maintain and strengthen the 
international industrial competitiveness.
	
For realizing these policies, Nippon Steel is determined to take every 
opportunity to make various proposals on Japan’s climate change measures 
and energy policies based on the Paris Agreement, and to spearhead activi-
ties through industry organizations.
Policy recommendations for realizing a carbon neutral society
President Hashimoto of Nippon Steel is a member of the Strategic Policy 
Committee, under the Advisory Committee for Natural Resources and Energy 
of the Ministry of Economy, Trade and Industry (METI), Vice Chairman of 
Nippon Keidanren (Japan Business Federation), and a member of the Green 
Transformation (GX) Implementation Council. The Executive Vice President in 
charge of Environment is also a member of the Central Environment Council 
of the Ministry of the Environment, representing Keidanren.
	
In meetings of these government councils and committees and 
Keidanren, we express and affirm our commitment and determination of 
the steel industry for achieving carbon neutrality. We also urge for promptly 
creating Japan’s policy package that combines climate change measures 
and measures to maintain and enhance international competitiveness of 
industries, led by the government. In particular, during the deliberations on 
the government’s Clean Energy Strategy, we argued for the need for a policy 
to change the energy supply structure, including the active promotion of 
the use of nuclear energy, and to realize carbon neutrality in the materials 
industry. We have thus contributed to the formulation of the policy. We have 
strongly advocated the needs for a clear commitment by the government to 
support the energy-intensive industry, an expansion of the Green Innovation 
Fund, strong and continuous support in all stages for the decarbonization 
transition from R&D to equipment implementation, support for the increasing 
operating costs for hydrogen, electricity, and raw materials, and a roadmap 
to realize the CCUS.
	
Moreover, we are actively developing policy proposals to achieve carbon 
neutrality by making use of all opportunities with the government, relevant 
ministries and local governments, etc. other than the above-stated councils 
and committees.
Efforts to address climate change through industry organizations
In February 2021, the Japan Iron and Steel Federation (JISF) announced 
“Japan’s Basic Policy on Carbon Neutrality for 2050” in order to promote 
Japan’s efforts to achieve the mid-term goal of the Paris Agreement. 
Japan’s steel industry has also declared its commitment to boldly take up a 
challenge for achieving carbon neutrality. In March 2022, we set an ambi-
tious goal of reducing CO2 emissions from energy-derived sources in fiscal 
2030 by 30% compared to fiscal 2013 from an international perspective.
	
We are also taking a leading role for the JISF to develop climate change 
measures.
	
In addition, we participate in climate change action of the global steel 
industry, which is led by the World Steel Association, and is selected as the 
worldsteel Climate Action data provider for calculating and reporting CO2 
emissions of steel mills using a common global method.
With the understanding that the transfer of Japan’s advanced energy-saving technologies overseas can be effective ways to globally reduce CO2 emissions, 
Nippon Steel is participating in many energy-saving and environmental initiatives in Japan and overseas. For example, we work with the World Steel Association 
and directly with countries such as China and India.
Activities to transfer and diffuse decarbonization technologies overseas
ECO SOLUTION
3  assessment of steelworks as to energy-saving status. These are the 
three pillars of collaboration for bilateral energy-saving and environmental 
cooperation with India, Southeast Asia, and other countries and regions.
Japan’s steel industry can contribute to reduction of CO2 emission on a 
worldwide scale by transferring its advanced energy-saving technologies 
to emerging countries. The reduction effects of CO2 emission by transfer 
of Japanese steelmakers’ energy-saving technologies have amounted to 
72.64 million ton reduction in CO2 emissions per year in total.
In public-private steel-related joint meetings, we share the Technologies 
Customized List, the results of assessment of steel mills, and introduce detailed 
technical information and financing schemes, in order to realize the early transfer 
of energy-saving technologies to emerging countries. By fiscal 2021, joint meet-
ings have been held: 10 times in India and 14 times in six ASEAN countries. In 
2021, we held the “2021 Public and Private Collaborative Meeting between Indian 
and Japanese Iron and Steel Industry” with India and the online “AJSI Webinar 
2021” conference with ASEAN countries and shared examples of energy saving 
and environmental conservation measures.
Joint meetings of public and private steel-related parties
1
We identify the appropriate technologies for each country 
and region, and in addition to detailed technical information, 
we conduct the assessment of steel mills, and provide the 
Technologies Customized List, which complies information 
such as on suppliers, for reference. In fiscal 2021 the 
technologies customized list was updated into the fifth version 
on blast furnace (BF) steelmaking and the 4.2 version on 
electric arc furnace (EAF) steelmaking for India, and into the 
fourth version on BF steelmaking and 3.2 version on EAF 
steelmaking for the ASEAN countries.
The technologies customized list
2
Technologies 
customized list
Netherlands
GTCC
4
Germany
CDQ
1
Poland
TRT
2
Ukraine
GTCC
4
India
CDQ
12
TRT
4
China
CDQ
90
TRT
19
GTCC
44
South Korea
CDQ
13
TRT
23
GTCC
6
Taiwan
CDQ
5
TRT
6
Vietnam
CDQ
2
Indonesia
TRT
1
Australia
TRT
1
USA
TRT
2
Brazil
CDQ
5
TRT
6
Japanese steel industry’s energy-saving technologies are spreading globally (units installed in numbers)
Number of units
CO2 emission reduction
Heat recovery
7
98
CDQ2
128
2,581
TRT3
64
1,129
Oxygen Converter Gas collection
22
821
Oxygen Converter Gas waste heat collection
8
90
GTCC4
58
2,545
Total
287
7,264
(10,000 t-CO2/year)
(FY2020)
2 All CDQ units were installed by the Nippon Steel Group 
(such as Nippon Steel Engineering).
3 TRT: Top Pressure Recovery Turbine
4 GTCC: Highly-efficient GTCC power generation
Assessment of steelworks
Activities as a Climate Action member
Experts from the Japanese steel industry visit the steel mills overseas to 
propose energy-saving technologies, provide 
operational improvement advice based on 
the operational conditions of the facilities, 
and conduct the energy-saving assessment 
of steel mills using the international standard 
ISO14404. Up to fiscal 2021, we had carried 
out the assessment of 13 steel mills in India 
and 15 mills in six ASEAN countries.
Nippon Steel participates in the Climate Action 
Program of the World Steel Association, 
which uses universal methods to calculate 
and report on the CO2 emitted by steelworks. 
As a Climate Action member (data provider), 
our 15 years of contribution has been highly 
recognized.
3
Climate Action DATA PROVIDER certificate
Assessment of steelworks
Contribute to reduction of CO2 emission on a worldwide scale
29
30
Environmental Initiatives
Sustainability report 2022
Sustainability report 2022
NIPPON STEEL CORPORATION
Promotion of Climate Change Measures
 Promotion of Climate Change Measures

Efforts to address climate change in the field of resource recycling
Efforts to adapt to climate change
Using coke ovens at seven areas of Nippon Steel’s five steelworks, about 
200,000 tons of used plastic containers and packaging collected from gen-
eral households nationwide are recycled 100%, in compliance with the Act 
for Promotion of Use of Recycled Resources. This contributes to reduction of 
about 600,000 tons of CO2 a year.
	
In order to contribute to Japan’s strategy to recycle plastic resources, 
we are developing technologies to expand waste plastic processing capacity 
of coke ovens, to densify waste plastic pellets as raw material, and to 
dechlorinate.
Nippon Steel has promoted scientific analysis on usefulness and safety of 
use of steel slag — a by-product from the steelmaking process. To improve 
this technology, we began a basic study on blue carbon (CO2 absorption 
and fixation in the marine ecosystem), which is getting more attention as a 
measure against climate change. We started to collect basic data on how 
much CO2 can be fixated by using steel slag and creating shallow bottoms, 
tideland, and seaweed beds. Nippon Steel’s approach is to use our own 
large water tank (sea laboratory), to develop methods for creating tidal flats, 
shallow bottoms, seaweed beds, etc. by utilizing steel slag, and improve the 
environment in coastal areas. We started by aggregating basic data in order 
to find out how much CO2 can be fixated.
Blast furnace cement is made up of 45% blast furnace slag mixed with 
conventional cement, which reduces CO2 emission by 40% (320 kg per ton 
of cement) compared to ordinary cement production.
Recycling of steel scrap is one of the key measures for achieving carbon 
neutrality.
	
We will significantly reduce CO2 emissions in steelmaking process by 
maximizing the use of domestic steel scrap.
Recycling of waste plastics
Blue carbon
Blast furnace cement
Maximum use of steel scrap
1
4
3
2
Large water tank Sea Laboratory
p. 36
pp. 28, 43
p. 35
[Mapping table of TCFD recommendations and their location page]
Information disclosure according to recommendations of the Task Force 
on Climate-related Financial Disclosures (TCFD)
Given the international community’s commitment to achieving long-term 
goals of the Paris Agreement, Nippon Steel signed the statement of support 
for the Task Force on Climate-related Financial Disclosures (TCFD) in May 
In addition to taking mitigation actions against climate change, we take into account the diverse impact of climate change and appropriately prepare for risks, as 
adaptive initiatives, and at the same time seek to capture business opportunities.
2019, considering the climate change as one of priorities that the planet is 
facing today. Based on the recommendations, we are committed to informa-
tion disclosure on the climate change impact to our business activities.
1 The below 2°C warming scenario is a case wherein much-needed measures will be implemented to keep global 
average temperature increase below 2°C (1.75°C) compared to pre-Industrial Revolution times.
The 4°C warming scenario is a case that global average temperature will increase by 4 degrees, without taking 
any economic or additional measures against climate change.
TCFD’s recommendations and supporting recommended disclosures
Reference page
[Governance] Disclose the organization’s governance related to climate-related risks and opportunities.
 a) Describe the board’s oversight of climate-related risks and opportunities.
p. 17
 b) Describe management’s role in assessing and managing climate-related risks and opportunities.
p. 17
[Strategy] Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s 
businesses, strategy, and financial planning where such information is material.
 a) Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term.
p. 33
 b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.
p. 33
 c) Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C 
or lower scenario.
p. 33
[Risk Management] Disclose how the organization identifies, assesses, and manages climate-related risks.
 a) Describe the organization’s processes for identifying and assessing climate-related risks
p. 17
 b) Describe the organization’s processes for managing climate-related risks.
p. 17
 c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall 
risk management.
p. 17
[Metrics and Targets] Disclose the metrics and targets used to assess and manage relevant climate-related risks and 
opportunities where such information is material.
 a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk 
management process.
p. 12
 b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.
p. 20
 c) Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets.
p. 12
Scenario analysis
Preparation for risks
Capturing business opportunities
For each transition factor and physical factor, we have identified risks 
and opportunities that may have a significant impact on our business in 
the areas of upstream procurement, direct operations, and downstream 
demand for products and services. We have then considered strategies for 
each scenario.
	
In conducting the scenario analysis, we referred to the two scenarios 
(the below 2°C and 4°C warming scenarios1) of the International Energy 
Agency (IEA) and evaluated them over a medium- to long-term time period, 
up to 2050. In addition, the 1.5°C scenario (IEA NZE2050), which assumes 
progress in reducing and eliminating carbon emissions, was also adopted as 
There is a risk that operations and shipments may be interrupted due to the 
flooding of steelworks and other events, including some caused by abnormal 
weather as a consequence of climate change. To prevent such risks, we 
are implementing measures against typhoons and heavy rains, measures 
to prevent crane overturn, installation of levees, reinforcement of embank-
ments and gradients, and measures to prevent wind and flood damage at 
each steelworks.
	
Moreover, our steelworks have enhanced facilities to prevent water 
pollution. These facilities were provided to increase waste water treatment 
capacity and involved installation of a large storage tank so that water 
tainted with iron ore powder would not directly be released into the sea even 
if our steelworks were subjected to localized heavy rain.
	
In addition, some administration offices are built on a piloti structure, 
which means there is open space with no walls on the ground level. This 
makes the buildings less vulnerable to tsunami. This is a part of our efforts 
to be well prepared for emergencies such as flooding and high waves.
We have many products that are used for a long time as construction 
material for embankments and other public infrastructure. They contribute 
to providing solutions for “national resilience,” such as protecting towns 
from flooding or high tides caused by heavy rains or typhoons. Adaptation to 
climate changes also leads to business opportunities for Nippon Steel.
	
For example, we have developed and provided for actual use various 
types of products and product utilization technologies in the civil engineering 
field. They include hat-type sheet piles (contributing to national resilience in a 
wide range of ways, including measures against liquefaction of river levees, 
water leakage, and tsunami reaching coastal levee), linear-type steel piles 
(having a high-tensile strength at the joints, being suitable to cell-type quays, 
erosion-control dams and water shut-off work, and contributing to measures 
for sand embankments and against landslide at the time of heavy rain or a 
typhoon), and a method of preventing subsidence by use of sheet piles.
a reference scenario in the analysis. At the same time, we have formulated 
a new climate change countermeasure vision with the aim of achieving 
“carbon neutral in 2050” consistent with the 1.5°C warming scenario, and 
have decided to tackle development of breakthrough technologies aimed at 
carbon neutral, as a challenge for the management.
31
32
Environmental Initiatives
Sustainability report 2022
Sustainability report 2022
NIPPON STEEL CORPORATION
Promotion of Climate Change Measures
 Promotion of Climate Change Measures

Scenario
Factors 
(risks and opportunities)
Events (expectations and 
concerns of stakeholders)
Below 
2°C
Transition factor 1
Advance in electric vehicles 
(EVs)
World EV sales: 65 million 
units, 60% market share 
in 2030 (vs. 6.6 million 
units, 8.6% market share 
in 2021)1
Transition factor 2
Shift to other lightweight 
materials, prompted by tighter 
fuel efficiency regulations, 
etc. (multi materials)
Shift to other lightweight 
materials, prompted by 
tighter fuel efficiency 
regulations, etc.
Transition factor 3
Shift to low-carbon steel 
(steel that generates low CO2 
emissions in production)
Accelerating shift to low-
carbon steel due to change 
in customers’ demand
Higher needs for 
decarbonization in 
steelmaking process
Transition factor 4
Higher needs for energy-
efficient products and 
technology
Eco-friendly technology 
solution to boost demand
Transition factor 5
Higher needs for products 
and solutions associated with 
a society based on renewable 
energy and hydrogen
Ratio of renewable energy 
in world power generation: 
88% in 2050 (vs. 28% 
in 2020)
World production of 
hydrogen: 60EJ and 490 
mn tons in 2050 (vs. 11EJ 
and 90 mn tons in 2020)2
Transition factor 6
Increase in cost caused by 
adoption of carbon pricing
Increased cost due to 
adoption of carbon pricing
4°C
Physical factor 1
Abnormal weather to suspend 
raw material suppliers’ 
operation
Difficulty in procuring 
raw materials, caused by 
abnormal weather
Physical factor 2
Abnormal weather to suspend 
operation and shipment
Difficulty in operation, 
caused by a natural 
disaster
Physical factor 3
Heightened needs for solutions 
for “national resilience” 
against natural disasters
Natural disaster caused by 
abnormal weather
Impact to Nippon Steel 
(opportunities in  , risks in  )
Nippon Steel’s strategy (including future responses)
Opportunities in demand growth for our steel products
 Increase in the global total number of cars and 
resultant increase in steel demand despite a decline 
in the share of steel demand for cars equipped with 
internal combustion engines due to the growth of EVs’ 
share of the new car market
 Increase in demand for high-performance steel 
products — our area of strengths, such as electrical 
steel sheets for EVs
 Capture growing demand by strengthening the global supply of 
electrical steel sheets (see PICK UP on p. 34)
Opportunities in demand growth for high-strength 
steel and capturing of demand for other materials
 Some possibility of switching to other lightweight 
materials but little prospect for significant progress 
since steel excels in environmental evaluation from 
the LCA perspective, including the production stage 
and material recycling, and automakers increasingly 
emphasize the evaluation from the LCA perspective
 Increase in demand for high-tensile steel, carbon 
fiber-reinforced plastic (CFRP), titanium, etc.
 Strive to further popularize the LCA concept through activities to 
raise customers’ understanding and lobby the government for 
regulatory change
 Further increase the high-tensile strength of steel and provide 
the lightweight steel structure technology by proposing a 
comprehensive automotive solution (NSafeTM-AutoConcept)  
(see PICK UP on p. 34)
 Capture demand for CFRP and other products in cooperation 
with Nippon Steel Chemical & Material Co.)
Opportunities in demand growth for low-carbon steel
 Some shift to EAF steel with low CO2 emissions in 
production
 Continued increase in demand for BF steel due to 
insufficient increase in EAF steel to satisfy growing 
worldwide demand, caused by the limited supply 
of scrap
 Acquire the “EcoLeaf” environmental label for more products 
(see p. 10)
 Accelerate the Carbon Neutral Vision (breakthrough technology 
development, including high-grade steel production in large-sized 
EAFs and hydrogen steelmaking) (see pp. 21–26)
 Promote the use of direct reduced iron and other measures to 
reduce CO2 emissions in existing processes
Needs for a fundamental review of the steelmaking 
process aimed for decarbonization
 Potential to gain a great competitive advantage if our 
technological development and investments advance 
ahead of global peers
 Increase in investment burden and operating cost for 
the introduction of new technologies
 Facilitate the development and implementation of innovative 
technologies by utilizing government support such as the Green 
Innovation Fund (see pp. 25–28)
 Consider sharing of cost by society (see p. 29)
Opportunities in demand growth for eco-friendly 
technology
 Increased demand for products that realize energy 
savings in the processing by customers
 Increased demand for products that contribute to 
energy savings in use of end products
 Increase in profits through the provision of the Group’s 
technology solutions that enable energy saving in 
steelmaking process
 Expand supply of products that realize energy saving in 
customer processes, e.g. reduced-process steel bars and wires 
(see PICK UP on p. 34)
 Expand supply of products that contribute to energy savings in 
use of end products, e.g. high-tensile steel, and high-efficiency 
electrical steel sheets
 Government-private cooperation, technologies customized list, 
and steelworks diagnosis to provide energy-saving technologies 
to emerging countries (contribution to the global value chain), 
e.g. dissemination of CDQ, all of which are handled by Nippon 
Steel Engineering, into emerging countries (see p. 30)
Opportunities in demand growth for products of 
our Group
 Profit growth by provision of the Group’s products and 
solutions that support a renewable-energy-oriented 
society
 Profit growth by provision of the Group’s products and 
solutions that support a hydrogen-oriented society
 Enhance the Group’s product menu for the renewable-energy 
society and expand sales in Japan and overseas, e.g. high 
corrosion-resistant steel sheets for solar power generation 
mount, steel plates and steel anchor chains for offshore wind 
power generation, and steel pipes for geothermal and biomass 
power generation
 Enhance the Group’s product menu for the hydrogen society 
and expand sales in Japan and overseas, e.g. HYDEREXELTM 
stainless steel for high-pressure hydrogen environments
Deprivation of funds for R&D, etc.
 Significant impact of carbon pricing, which is an 
additional burden and diverts funds for R&D
 Reduce CO2 emissions through the expanded use of direct 
reduced iron, reduction in CO2 emissions in existing processes, 
and advance in breakthrough technologies such as hydrogen 
steelmaking and production of high-grade steel using large 
EAFs (see pp. 23–26)
 Negotiate transfer to the price with customers
Limited impact by taking measures for risks
 Limited assumed risk in securing stable procurement 
of raw materials by taking the following measures:
 Material sourcing from multiple regions in the world
 Keeping raw material inventories in steelworks 
and ships
 Continue multiple sourcing
 Appropriately manage days of inventory and risks
Limited impact by taking appropriate measures
 Adoption of BCP measures. Limited risks in production 
disruption caused by natural disaster. Excessively 
abnormal weather may result in suspension of 
operation, etc.
 Continually adapt measures in consideration of long-term trends
Measures against typhoons and heavy rain, measures to 
prevent crane overturns, measures against earthquakes and 
tsunami (securing emergency evacuation places, embankment 
reinforcement, etc.)
Demand growth of steel for national land resilience
 Profit growth by providing products and solutions for 
national resilience against earthquakes, tsunamis, 
heavy rain, typhoons, etc.
 Enhance the Group’s product menu and expand sales in Japan 
and overseas, e.g. steel-slit dams and NS ECO-PILETM method
1 Source for EV-related data: the NZE 2050 Scenario of the IEA Global Electric Vehicle Outlook 2022
EVs include battery electric vehicles (BEVs) and plug-in hybrid vehicles (PHVs).
2 Source for data on renewable energy and hydrogen: the NZE 2050 Scenario of the IEA World Energy Outlook 2021
TCFD scenario analysis
PICK UP  Scenario Analysis
In response to the increasing demand for reduction of vehicle body weight 
and enhanced collision safety, we accelerated research and development, 
and started to make proposals not just on materials but also on the NSafeTM-
AutoConcept (NSAC), a comprehensive solution for the development of next-
generation steel vehicles, in 2019. An extended version NSafeTM-AutoConcept 
xEV has also been added to the lineup. We are working with our customers to 
develop advanced vehicles.
	
Reduction in vehicle body weight has long been desired by automakers but 
that need has been increasing in recent years, as it can contribute to reducing 
CO2 emissions during vehicle production as well as driving. Concerning col-
lision safety, the evaluation method has become diversified, and the advance 
in material strength and structural design are required more than ever before. 
Ultra-high-tensile steel sheets such as 1470 MPa high-tensile sheets and 2.0 
GPa hot-rolled high-tensile materials for vehicle bodies, and 980 MPa high-
strength steel plates for chassis can satisfy such needs. The application of the 
high-tensile steel products and the proposed structure and processing method 
Transition factor 1 Response to advance in electric vehicles (EVs)
Transition factor 2
Response to meet the needs for lightweight materials (NSafeTM-AutoConcept)
Transition factor 4 Response to increasing needs for energy-efficient products and technology 
(reduced-process steel bars and wires)
World annual sales of EVs
(Net Zero Emissions by 2050 Scenario)
 Unit sales of EVs (left scale)   
 Market share of EVs (right scale)
(Million Units)
(%)
Prepared by Nippon Steel based on the IEA “Global Electric Vehicle Outlook 2022”
(year)
2030
2021
2025
80
60
40
20
0
80
60
40
20
0
Reduced-process steel bars and wires are high-performance steel products that 
can eliminate a part of a variety of steel processing processes (heat treatment, 
wire drawing, finishing, etc.) at customers and reduce CO2 emissions (GHG 
Protocol Scope 1).
	
In steel product manufacturing, the steel processing process aimed at 
producing quality requirements for 
end products and parts consumes 
a considerable amount of energy 
and emits CO2. In order to solve 
this problem, we were able to draw 
certain steel properties through our 
own heat treatment, special con-
trol, and addition of trace elements 
in manufacturing process, which 
have enabled customers to omit 
certain heat treatment processes in 
their steel processing. The reduc-
tion of CO2 emissions throughout 
the supply chain, including cus-
tomers, has been achieved with 
this reduced-process steel bar.
	
This is a good example of how we respond to the needs of high-
performance steel products, which contribute to the CO2 emissions reduction in 
society as a whole, including the processing stage.
 Promotion of Climate Change Measures
The social needs behind the drive for attaining carbon neutrality include increasing 
demand and the requirement for high performance (higher efficiency, smaller size, 
and lighter weight) for EV motors and the reduction of energy loss in motors and 
transformers to meet the tighter global regulations for high-efficiency transform-
ers. The most rational means to meet such needs is the provision of high-grade 
electrical steel sheets, such as non-oriented (NO) electrical steel sheets used in 
motors and grain-oriented (GO) electrical steel sheets used in transformers.
	
In order to respond to growing demand for these electrical steel sheets and 
the requirements for higher-grade products, Nippon Steel has decided to invest a 
total of ¥123 billion to improve the capacity and quality of electrical steel sheets 
at the Kyushu Works Yawata Area and the Setouchi Works Hirohata Area. Our plan 
is to increase NO + GO electrical steel sheet capacity by 1.5 times, including an 
increase of 3.5 times for high-grade products, by the first half of fiscal 2024. 
We are also considering additional capacity measures to cope with the growing 
demand and the development of higher-grade products, in anticipation of accel-
erating progress in EVs and energy conversion toward achieving carbon neutrality.
have reduced the body weight of steel cars by 30%. This has made the steel car 
to have the similar weight to that of an all-aluminum car and to provide higher 
collision safety performance.
	
Material makers, including ourselves, used to focus on material develop-
ment but the NSAC is contributing to the car making process in the areas of 
material development, structural and functional design, process development, 
and performance evaluation in addition to material development.
33
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Environmental Initiatives
Sustainability report 2022
Sustainability report 2022
NIPPON STEEL CORPORATION
Promotion of Climate Change Measures

Contributing to Creation of a Circular Economy
Steel is a flexible material that can be repeatedly recycled: it is a perfect example of a circular economy. Nippon Steel 
strives for the greatest efficiency possible, including minimization or elimination of waste, in use of our energy and 
limited resources, in every process of steelmaking. By utilizing this steelmaking process, we also work to recycle 
internally-generated by-products so that we can realize zero emission. We are also actively engaged in recycling of 
waste generated in society or by other industries.
Efficient use of resources and energy
Promotion of in-house zero emissions
Increase in recycling of waste generated in society (waste plastics)
We use industrial water and energy resources such as electricity and fuel 
in producing steel products, which are mainly made of iron ore mined 
overseas, coal used as a raw material for reducing iron ore, and iron scrap 
recycled by society.
	
Nippon Steel’s steelworks use 100% of by-product gas generated in 
the steelmaking process, as fuel for heating of steel or as energy for an 
By-products generated and final disposal
In the iron and steel-making process, over 600 kg of by-products, such as 
steel slag, dust, sludge, and used refractory bricks, are generated for each 
ton of crude steel produced. In fiscal 2021, Nippon Steel produced 38.68 
million tons of crude steel and generated 24.93 million tons of by-products. 
We are committed to recycling these by-products both in and outside the 
company, maintaining the high recycling rate of 99%. Although the final 
disposal amount has not reached our target (partly due to the effects of the 
structural measures), we will continue efforts toward achieving the fiscal 
2025 target.
Recycling of dust and sludge
To recycle the dust1 and sludge2 generated in the iron and steelmaking 
processes, for them to be used as raw materials, Nippon Steel operates a 
dust reduction kiln (RC: Resource circulating oven) at East Nippon Works 
Kashima Area and a rotary hearth reduction furnace (RHF) at East Nippon 
Works Kimitsu Area, Setouchi Works Hirohata Area, and Hikari (NIPPON 
STEEL Stainless Steel Corporation). This enables us to recycle all internally-
generated dust.
We recycle 100% of waste plastics collected from ordinary households 
through chemical recycling by using a coke oven in accordance with the 
Containers and Packaging Recycling Law of them. Specifically, waste 
plastics are used as hydrocarbon oil (40%), coke furnace gas (40%), and 
part of coke (20%). Currently, Nippon Steel is processing approximately 
200,000 tons annually, or about 30% of the volume of waste plastics 
collected nationwide, in cooperation with local governments. Our method 
of using coke oven has an extremely high recycling efficiency and a great 
treatment capacity, contributing to a circular economy in many regions. The 
cumulative amount processed in fiscal 2000–2021 was approximately 3.71 
million tons, equivalent to 11.87 million tons in terms of reduction in CO2 
emissions (the amount of annual CO2 absorption3 in artificial cedar forests 
in the area as big as 290,000 Yankee Stadiums).
Effective use of steel slag
Almost all steel slag is effectively utilized. Approximately 70% of blast fur-
nace slag is used for blast furnace cement, while steelmaking slag is used 
for materials for road base layers, civil engineering work, soil improvement, 
marine environment improvement, fertilizer, etc.
	
“Blast furnace cement,” a mixture of pulverized blast furnace slag and 
ordinary Portland cement, contributes to a 40% reduction of CO2 emissions 
during manufacturing, since the cement clinker burning process can be 
omitted. The blast furnace cement also excels in long-term strength and 
is registered as Eco Mark-certified product. The steel slag products help 
reduce natural crushed stone mining and have the energy saving impact 
during cement manufacturing. As a result, they are designated as a “desig-
nated procurement item” under the Act on Promoting Green Procurement, 
and have been certified as recycled products by some local governments.
	
Nippon Steel’s pavement materials, KATAMATM SP, are advantageously 
used in keeping with the characteristics of steel slag which hardens by 
reacting with water. They are used for forest roads and farm roads, as well 
as for weed preventive pavement to be installed near mega-solar panel 
installations and other locations.
	
Geo-TizerTM made of steel slag can be mixed with soft soil (mud, such 
as surplus excavated soil from construction sites or farmland soil) to reform 
the soil to make it usable. Unlike conventional soil-improvement materials 
(i.e., cement and lime), this soil produces less dust, significantly reduces 
CO2 emissions, and is less expensive, enabling reduction of construction 
cost. The remediated soil is outstanding in compacting and can also be 
easily excavated, as it does not excessively solidify.
	
Calcia modified soil — a mixture of steelmaking slag calcia modifier 
and dredged soil — has been used to improve the marine improvement, 
such as by backfilling deep-dug seabed areas and creating shallow bottoms 
and tideland. In addition, Nippon Steel’s VivaryTM iron supply units, which are 
composed of steel slag and humus made from waste wood, provides iron 
needed for seaweeds to flourish, promoting regeneration of an area of the 
sea bed that had lost much of its living organisms.
	
Moreover, as steel slag contains nutrition that helps plants grow, it is 
also widely used as fertilizer, contributing to improving farming productivity.
(FY)
100
80
60
40
20
0
2013
2010
2000
25.0
52.8
52.8
91.1
2014
2011
24.8
38.1
2015
2012
38.0
33.4
33.4
2016
26.3
2017
25.6
2018 2019
2021
2020
2025
26.6 28.9
30.7
22.9
26.3
1 Fine dust collected with a dust collector
2 Semi-solid slurry recovered from industrial wastewater or sewage treatment
3 One hectare of artificial cedar forest absorbs approximately 88 tons of CO2 per year (source: the website of the 
Forestry Agency).
Nippon Steel’s final disposal amounts
(10,000 tons [wet]/year)
FY2025
target
Recycling rate
99%
	
Recently, chemical fibers and food trays have also been recycled by the 
same method. Furthermore, as the Plastic Resource Recycling Promotion 
Law enacted in fiscal 2022 calls for collection not only of container packag-
ing plastics but also waste plastics in bulk collection, we are also working 
hard to develop technologies including increased treatment to meet these 
plastics processing needs.
	
This expanded use of waste plastics has been incorporated in our 
“Carbon Neutral Vision 2050” measures to combat climate change, and 
is presented as one of the examples of the efforts of Nippon Keidanren 
(Japan Business Federation) member companies’ activity in its “Recycling 
Economic Partnership.”
By-products and recycling (FY2021)
<< Recycling of waste plastics >>   Thermal decomposition enables 100% effective re-use of plastics
Households
Nippon Steel
Municipalities
Use plastic products
Remove metals and other 
extraneous materials from 
plastic transported from 
municipalities, crush plastic
Plastics are put into a tightly-
closed coke oven chamber and 
pyrolyzed in a superheated 
atmosphere free of oxygen and 
used in entirety to produce 
hydrocarbon oil, coke, and coke 
oven gas.
Recycled as plastic and other chemical 
raw materials in a chemical plant 
and supplied to manufacturers of the 
following products
After being cooled, 
the coke is put in a 
blast furnace and is 
used as an iron ore 
reducing material.
The coke oven gas 
is used as energy 
at a thermal power 
plant within a 
steelworks.
Collect and store 
plastic products
Sort, and discard 
unusable materials
Pre-treatment 
process
Thermal decomposition 
process (coke oven)
Recycle as plastic products
Light oil
Tar
Hydrocarbon oil   40%
Coke   20%
Coke oven gas   40%
Fuel gas which mainly contains hydrogen 
and methane
Plastic bags, plastic wrap
Bottles, tubes
Trays, packages, cups
Collect and sort plastic products 
collected from households
Compress and package plastic
Secondary crushed plastic, after 
being sorted and with non-plastic 
materials removed
Agglomerated plastic solidified 
and formed with heat generated 
by friction
Coke oven
Container packages
Plastic pellets
Coke
Blast furnace
Iron ore
Power plant
onsite power plant. Concerning water resources, 90% of water used in cool-
ing and cleaning of products and manufacturing facilities are reprocessed 
and repeatedly used. These are examples of our efforts to make maximum 
use of limited resources and energy, without waste.
pp. 37, 38
1. Safety, environment,  
and disaster prevention
By-product
Amount generated 
(wet weight – million tons)
Recycling application
Recycling 
rate
Blast furnace slag
12.78
Blast furnace cement, fine aggregate, road 
base, etc.
100%
Steelmaking slag
5.65
Road base, civil engineering materials, 
fertilizer, etc.
99%
Dust
3.13
Raw materials for use in-house and also 
zinc refining
100%
Sludge
0.43
Raw materials for in-house use
88%
Coal ash
0.52
Cement raw materials, construction materials
100%
Waste furnace materials
0.35
Reuse, etc.
68%
Others
2.07
In-house use, others
100%
Total
24.93
Total recycling rate
99%
35
36
Environmental Initiatives
Sustainability report 2022
Sustainability report 2022
NIPPON STEEL CORPORATION
Contributing to Creation of a Circular Economy

Energy Material Balance
Efforts for efficient use of various resources have resulted in Japan’s steel industry achieving the world-leading level 
in energy efficiency.
CDQ
Energy efficiency in steelmaking by country (2019)
Energy efficiency in steelmaking (Japan = 100)
140
130
120
110
100
90
Japan
100
South Korea
102
Germany
110
China
111
UK
115
France
116
India
119
Russia
128
USA
129
Source: International Comparisons of Energy 
Efficiency (Sectors of Electricity 
Generation, Iron and steel, Cement), RITE, 
2010 (The Japanese translation and 
numerical values were provided by the 
Japan Iron and Steel Federation.)
Efficient use of resources
Electricity
Nippon Steel itself generates 89% of the electricity it uses at 
steelworks, 75% of which is from internally generated energy 
sources such as exhaust heat and by-product gases. In the 
future, we will also consider making more efficient facilities 
and switching fuel in order to further lower carbon generation.
4
Recycling of waste plastics
6
Approximately 200,000 tons per year, or about 30% of 
plastic containers and packaging collected from households 
nationwide, are fully recycled by a chemical processing 
method using coke furnaces.
p. 36
By-products
5
By-products generated in steelmaking are recycled for reuse 
in the same process or for commercial use. We thus promote 
achieving zero emission and contribute to conservation of 
resources and energy.
pp. 35, 36
3 Use of exhaust heat
Exhaust heat, generated in the blast furnaces, sintering facil-
ities, coke ovens, converters, and other facilities, is recovered 
and used in steam generation and power generation.
By-product gas
By-product gases, such as coke oven gas generated when 
coal is thermally cracked in an oxygen-free environment 
in the coke manufacturing process and blast furnace gas 
generated from blast furnaces, are fully utilized as fuel 
gas for steel heating furnaces or energy sources for power 
generation plants on the premises of steelworks.
2
Water resources
1
Of water used in cooling and cleaning of products and 
manufacturing facilities, 90% is reprocessed and repeatedly 
used, while the remaining 10%, which disappears mainly 
due to evaporation, is replaced.
p. 40
 The Group internally generates 89% of the electricity it uses.
 The Group supplies 37% of internally-generated electricity to the 
local community.
2 Including cooperative thermal power companies and affiliated electric arc furnaces
Electricity supplied to 
the local community
Electricity generated by the Group
37%
Purchased 
electricity
89%
11%
Electricity consumed within the Group
63%
Nippon Steel Group’s2 Electricity Supply and Demand Balance (FY2021)
Coke Dry Quenching (CDQ) for large-scale waste heat recovery
The CDQ equipment quenches hot 
coke made in the coke oven with inert 
gas, and the heat is used to generate 
steam for power generation. Compared 
to the conventional wet quenching, 
40% energy saving has been achieved.
INPUTS
OUTPUTS
Numbers represent FY2021 performance
Manufacturing process
Steelworks
Recovery of 
waste heat
38.68
million tons/year
Crude steel production  
(non-consolidated)
Slag products
Coal chemical products
Use in society
Scrap
End products
Waste plastics 220,000 tons
Fuels from outside 33%
Fuels from outside 25%
Water resupply rate 10%
Recycling of dust 
and sludge
Final waste disposal 1%
Recycling
etc.
Steel plate
Steel sheet
Bar, wire rod
Pipe & tube
Construction 
materials
3
75%
Rate of use of in-house 
generated energy in 
power generation
4
Blast 
furnace
Converter
Electric 
furnace
Sintering 
facilities
Coke oven
Continuous  
casting facilities
Recycling rate of waste plastics 
(chemical recycling)
6
Hot rolling, cold rolling
Pipe-making 
equipment
2
100%
Rate of use of 
by-product gas
Recovery of 
by-products
(steel slag, tar)
Use of 
by-product gas
0.7 billion m3/year
Industrial water
3.9 billion kWh/year
Purchased electricity1
102 thousand kl/year
Fossil fuels
56.41 million tons
Approx. 1.6 tons per ton of steel
Iron ore
Alloys, auxiliary materials, 
etc.
Approx. 0.7 tons per ton of steel
25.74 million tons
Coal
Generation of 
steam
Generation of 
electricity
Fuels
Industrial 
water
Recovery of 
backwater
Plating equipment
90%
Rate of reuse 
and recycling 
of water
1
In-house use
1 Purchased electricity (kWh) excludes electricity purchased from Cooperative Thermal Power Companies
Recycling rate of 
by-product
99%
5
67%
Use of exhaust 
heat via generation 
of steam
 Contributing to Creation of a Circular Economy
37
38
Environmental Initiatives
Sustainability report 2022
Sustainability report 2022
NIPPON STEEL CORPORATION
Energy Material Balance

Water environment preservation
Efforts to control the water intake and reduce wastewater discharge in steelworks
Measures to purify water and prevent abnormal water discharge in operational bases
We use about 6.0 billion m3 of industrial water a year, of which approxi-
mately 90% is derived from recycled or reused water to reduce wastewater 
discharge, at all of our steelworks and factories combined. We try not to 
waste precious water resources, and to control wastewater discharge. To 
achieve this, we make daily efforts to maintain and improve the perfor-
mance of wastewater treatment equipment, and the inspection and control 
of wastewater quality. Our operational bases in Japan are evaluated by 
the World Resources Institute (WRI) Aqueduct to confirm that we are not 
prone to high-level water stress. Nevertheless, in preparation of the remote 
chance of a water intake restriction, some of our steelworks possess their 
own water reservoir. In certain circumstances, we contribute to easing 
water stress of the community by providing water for agricultural use or by 
cooperating in other ways.
Measures to reduce the risk of violating laws and regulations
In consideration of the importance of complying with the Water Pollution 
Control Law and conserving the water quality in the sea area to which it 
is discharged, we ensure that in the event of an operational problem the 
drainage outlets will not release abnormal wastewater outside the steel-
works. Water drainage automatic monitoring systems, water shutoff gates, 
emergency reservoirs, etc. are installed to prevent water pollution.
	
We also strive to check, repair, and maintain equipment in order to 
prevent water pollution, and to train our personnel in methods of checking 
of operations and controlling work procedures. Moreover, our steelworks 
have taken measures, such as to install a large storage tank so that water 
tainted with iron ore powder would not directly be released into the sea 
even if our steelworks were struck by a local torrential rain caused by 
weather abnormality.
	
If there is a crack in an embankment facing the sea, there is a risk of 
a leakage of groundwater with unknown contaminants. In order to prevent 
this, the embankment is regularly inspected from the sea side enabling us 
to maintain and manage it in a sound condition. In areas with potential risk 
of leakage of water which may exceed permissible levels of contaminants, 
boards or a sheet water barrier may be installed so as to prevent leakage 
even if a crack develops on the embankment.
	
In fiscal 2022, the leaks of water that exceeded wastewater standards 
from the Kimitsu Area of the East Nippon Works occurred. We apologize for the 
concern and inconvenience this caused for the residents of the neighboring 
areas, authorities including the local government, and other related parties. 
Taking this incident very gravely, we are determined to make utmost efforts to 
investigate the cause and prevent any such problems from happening again.
Waste water coagulating sedimentation treatment equipment
Pressurized flotation system
Activated sludge treatment equipment
Fine undissolved matter is coagulated into bigger masses by 
chemical treatment, permitted to settle, and is removed.
Floating oil is removed by tiny bubbles formed by released air.
Organic matter is decomposed and eliminated by bacteria.
Undissolved residue from rainwater is coagulated and eliminated.
Rainwater effluent treatment facility
The embankments are regularly inspected from the sea side to find 
potential issues.
Damaged areas found by inspection are promptly repaired to 
maintain and manage the embankment in a sound condition.
Undissolved residues in the treated waste water are filtered by a 
sand layer and removed.
Filtration equipment (secondary treatment)
Waste water flow is shut in case of trouble.
Waste water closing gate
The water quality of waste water is automatically monitored.
Waste water automatic monitoring equipment
Checking of embankments
Repair of the damaged area of embankment
(billion m3)
 Recycled water  
 Water intake
(FY)
Nippon Steel’s water consumption (excluding power generation facilities)
10.0
8.0
6.0
4.0
2.0
0
2016
2017
2018
2019
2020
6.5
6.5
6.5
6.5
5.9
6.0
6.4
2015
2021
0.7
0.7
0.7
0.7
0.7
0.7
0.7
5.8
5.8
5.8
5.8
5.2
5.4
5.7
Promotion of Environmental 
Risk Management
Nippon Steel is promoting management of environmental risk with the aim of continually enhancing preservation of 
the environment in various regions, with due consideration of environmental risks, which differ by each steelworks 
and factory, and with due consideration to compliance with Japan’s Air Pollution Control Act and other regulations.
Atmospheric risk management
Atmospheric pollution prevention
Prevention of scattering of raw materials and dust
Curbing mercury emissions
Measures to prevent scattering of raw materials and dust, and air pollution in operational bases
In order to reduce emissions of sulfur oxides (SOx) and nitrogen oxides 
(NOx), Nippon Steel is taking measures such as using low-sulfur fuel, adopt-
ing low NOx generating burners and installing effective equipment, including 
equipment that reduces SOx and NOx emissions.
To curb emissions of soot and dust generated from factories and raw mate-
rial yards, we try to enhance their function by installing dust collectors and 
prevent scattering of particles by installing windscreens, windbreak trees 
and sprinklers, based on air pollution risk analysis through scientific simula-
tion. We also conduct constant monitoring and regular patrols to ensure that 
no abnormal emissions are released.
At our facilities mercury contained in waste gas is effectively captured by 
dust collectors or is absorbed by activated carbon. We have confirmed that 
all of our facilities including waste incinerators, which are regulated for mer-
cury concentration, conform to the regulations. For sintering furnaces and 
electric arc furnaces for steelmaking, we voluntarily manage their mercury 
concentration in accordance with a voluntary management standard, issued 
by the Japan Iron and Steel Federation (JISF) in April 2018. We carried out 
voluntary measurement and confirmed conformity with the voluntary man-
agement standard at all facilities subject to the voluntary initiatives.
	
These results and evaluations are disclosed on the JISF’s website in 
around September every year. Through such efforts, we strive to prevent 
mercury emission into the air.
(106Nm3)
 SOx  
 NOx
Emission of SOx and NOx
Wet type desulfurization equipment
Active coke dry type desulfurization equipment
Low NOx regenerative burners
The wet desulfurization method enables SOx in emission gas to 
be eliminated.
The dry desulfurization and denitrification methods, using active 
coke, enables SOx and NOx in emission gas to be eliminated.
Burners featuring reduced levels of NOx generation and outstanding 
fuel savings have been installed.
Spraying of water and chemical in coal yards
Water and chemical are sprayed on piles of iron ore and coal to 
restrain the scattering of raw materials.
Sprinkler trucks
Road cleaning trucks
These trucks spray water on the road and empty lots or clean the road within works to restrict the secondary scattering of dust.
Windbreak net at yards
A windbreak net is installed to reduce the strength of wind and 
restrain the scattering of raw materials.
Electric dust collectors
Dust collectors with bag filters
Dust generated in the burning process is collected by two types of dust collectors (electric or with bag filter), depending on the characteristics 
of the dust (i.e., particle size distribution, emission gas concentration.)
(FY)
100
80
60
40
20
0
1975
1973
89
44
14
29
2016
14
28
2017
14
25
2018
14
26
2019
2021
14
27
11 
21 
2020
13 
25 
2015
1. Safety, environment,  
and disaster prevention
Recycled water represents approximately 
90% of the water consumption.
39
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Environmental Initiatives
Sustainability report 2022
Sustainability report 2022
NIPPON STEEL CORPORATION
Promotion of Environmental Risk Management

Soil risk management
Management of discharged chemical substances
Appropriate treatment of industrial waste
We are taking appropriate measures in compliance with the Soil Contamination 
Countermeasures Act, guidelines issued by the Ministry of the Environment, 
local government ordinances, and so on. We report to the local government 
when performing landform modification work such as excavation which is 
required to be reported. We conduct pollution surveys when needed.
Comprehensive management of discharge
Voluntary priority control of select chemical substances
Management of discharge based on the Chemical 
Substance Management Law
Nippon Steel appropriately manages and tries to improve the production, 
handling, and discharge or disposal of chemical substances in accordance 
with the Chemical Substance Management Law1, Chemical Substance 
Evaluation and Regulation Law2, and other laws concerning the management 
of chemical substances as well as the procedures employed. According to the 
targets of the Chemical Substance Management Law, we thoroughly manage 
the material balance, which includes the amount of chemical substances 
handled, the amount discharged to the environment, disposable amount, and 
the amount used as products. Similarly, we take care in managing the Volatile 
Organic Compounds (VOC3), which are said to cause photochemical oxidants 
and suspended particulate matter. In complying with the Chemical Substance 
Evaluation and Regulation Law, we identify and provide notification of the 
amounts of production and sales of the targeted chemical substances.
	
Nippon Steel also took the lead in promoting use of alternatives to 
using steelmaking materials and equipment that contain hazardous materi-
als such as polychlorinated biphenyl (PCB) and mercury. According to safe 
handling standards, we systematically replace or dispose possibly hazardous 
parts and materials, given the time limit for disposal or the expiration date, 
stipulated for each area.
In order to appropriately handle industrial waste generated in our business 
activities, we thoroughly carry out (1) management by sorting industrial 
waste depending on the status of its occurrence, (2) appropriate selection 
and continuous management of collectors, transporters, and disposal 
contractors, and (3) appropriate management of Manifests (industrial waste 
management documentation). In order to enhance compliance in waste 
• Dioxin
Some of our facilities, such as sintering facilities and incineration facilities, 
are a source of emissions of dioxins into the atmosphere. All these facilities 
have conformed to the emission concentration standard and have achieved 
levels of emissions far below the voluntary reduction target, based on the 
JISF guidelines, relative to fiscal 1997.
• Benzene, tetrachloroethylene, dichloromethane
We developed a voluntary reduction plan of hazardous air pollutants spec-
ified in the environmental standard, which we handle. As a result of our 
systematic undertaking, we have already reached the targets for all three 
pollutants and have been maintaining the target levels.
In our business activities, we strive to reduce our environmental impact 
by continuously reducing water use and enhancing efficient usage.
	
Although our operational bases are located all over Japan, the 
WRI Aqueduct evaluation confirmed that there are no steelworks 
located in areas categorized as High Risk or higher, and that there are 
no steelworks exposed to water stress.
	
In preparation for considering future facility needs, we are evalu-
ating potential water stress. Water is indispensable for cooling prod-
ucts and equipment in the operation of steelworks. We are therefore 
working to secure water sources, such as making some steelworks 
possess their own reservoir so that to be prepared for the remote 
chance of a water intake restriction.
We are working to prevent dust from scattering, and dust collectors 
are installed at our plants. Based on risk analysis of the air environ-
ment, we have installed larger or additional dust collectors to improve 
the effect of scattering prevention.
	
As a recent example, a dust collector had already been installed 
in the sintering process at the Nagoya Works to collect dust generated 
in the cooling process of the sintered ore. In 2022, an additional dust 
collector was installed to prevent further dust dispersing.
	
As part of our zero emission efforts, dust collected by dust collec-
tors is reused as a raw material for the sintering process.
In 1999, two years before the enforcement of the Chemical Substance 
Management Law, Nippon Steel began surveying chemical substances 
according to the voluntary control manual developed by the Japan Iron 
and Steel Federation (JISF). At present, in compliance with the Chemical 
Substance Management Law, we monitor 462 chemical substances and try 
to control their emission and improve the way we manage it. In fiscal 2021, 
there were 50 target substances for notification and the emission amount 
was 375 tons into the atmosphere and 25 tons to public water areas, while 
the disposal amount of mostly manganese, chrome, other metals, and their 
compounds to outside of the steelworks was 7,750 tons in aggregate.
	
Every year, data is compiled by each steelworks and experience in 
carrying out reduction measures is shared with other steelworks. In addition, 
the compiled results are disclosed on our website.
	
We have similarly been working on reducing volatile organic com-
pounds (VOCs). In fiscal 2009, the 30% reduction target relative to fiscal 
2000 was achieved. Since then, low discharge levels have been maintained.
	
Starting in fiscal 2018, the Revised Soil Contamination 
Countermeasures Act is being enforced in stages will be expanded. We will 
continue to comply with relevant ordinances.
treatment by appropriately managing the Manifests, all Nippon Steel steel-
works and offices have adopted the e-Manifest system and fully utilize it for 
waste management.
	
We also evaluate collectors, transporters, and disposal contractors based 
on our internal rules and conduct on-site inspections at predetermined fre-
quency, so as to continuously and appropriately ensure proper management.
1 An abbreviation of the Act on Confirmation, etc. of Release Amounts of Specific Chemical Substances in the 
Environment and Promotion of Improvements to the Management Thereof (Law concerning Pollutant Release 
and Transfer Register/PRTR)
2 An abbreviation of the Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc.
3 Volatile organic compounds (VOC): Organic chemical compounds emitted into the atmosphere in the form of 
gases, which are considered to be the source of undesirable airborne particles and photochemical oxidants, 
which became subject to control under the Air Pollution Control Act of 2004, as amended.
Target:
1,106
(t/year)
(t/year)
(FY)
(FY)
2,000
1,500
1,000
500
0
400
300
200
100
0
Emission of VOC
Benzene
1,579
2000
630
2015
624
2016
573
2017
627
2018
639
2019
524
2020
545
2021
Target:
172
363
1999
111
2015
106
2016
99
2017 2018
83
2019
88
COLUMN
2020
75
2021
95
Introducing other initiatives in the website
https://www.nipponsteel.com/en/csr/env/env_risk/
Environmental measures taken in steelworks
Prevention of dust scattering    Installation of dust collectors
Addressing to water risks    Creation of a reservoir
A newly-installed dust collector at the Nagoya Works
Sakurayama reservoir in the Setouchi Works Hirohata Area
Industrial waste
Electronic Manifest, etc.
Atmospheric risks
Measures against risks of abnormal generation of NOx
Reduction in emissions of SOx and NOx, etc.
Water risks
Measures against risks of abnormal water discharge
Measures against local torrential rain and water 
leakage of embankments
Addressing water risks, etc.
41
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Environmental Initiatives
Sustainability report 2022
Sustainability report 2022
NIPPON STEEL CORPORATION
 Promotion of Environmental Risk Management
Promotion of Environmental Risk Management

Promotion of Environmental 
Relations Activities
Initiatives on Conservation of Biodiversity
As a member of Nippon Keidanren (Japan Business Federation), Nippon Steel has affirmed the 
Declaration of Biodiversity by Keidanren and Action Policy (revised in October 2018) and has accordingly 
been taking initiatives on biodiversity preservation.
Policy for the initiatives
 As a member of Nippon Keidanren, we comply with the “Declaration of Biodiversity by Keidanren and Action Policy.”
 Recognizing both that our business activities greatly rely on the nature’s gifts, and that biodiversity is vital for realizing a sustainable society, we understand the 
relationships of our business activities with biodiversity and are pledged to respond to challenges rooted in diverse local features, in order to build a society in 
harmony with nature.
 As a member of the international community, we also recognize that initiatives aimed at building a society in harmony with nature are closely related to global issues 
of measures to deal with climate change and creation of a circular economy. We aim to realize a sustainable society through an integrated environmental corporate 
management which includes these initiatives in business activities.
We will promote the initiatives on conservation of biodiversity, which are closely aligned with measures to deal with climate change and 
creation of a circular economy, under the following policy.
1  Creation of Hometown Forests
Reproducing “the grove of a village shrine” and  
nurture biodiversity
We have carried out the “Creation of Hometown Forests” projects at our 
steelworks and factories in Japan under the guidance of the late Dr. Akira 
Miyawaki (professor emeritus of Yokohama National University), with the aim 
of facilitating harmonious coexistence between nature and humans. This 
project comprises research on the natural vegetation inherent to a certain 
area in a nearby grove associated with a historical shrine (Chinju-no-mori ), 
careful selection of suitable trees, growth of their saplings in pots, and 
planting them in designated places by local residents and our employees.
	
This was the first project by a private company in Japan to create a 
forest that harmonizes with the local scene and is based on an ecological 
approach. This is one way we try to raise the awareness of our employees 
regarding the environment. At present, our forests in aggregate have grown 
to total around 840 ha (about the size of 180 Yankee Stadiums).
	
Wild birds and animals visit the forests we make and maintain at our 
steel works sites across Japan. Wild birds and animals inherent to the land 
return to the forests. Thus, the “Creation of Hometown Forests” helps con-
serve biodiversity, and sequester CO2.
Implemented in 38 spots in Japan to improve  
sea desertification
With the aim of offsetting a part of the decline in the supply of iron from 
nature, which is said to be one of the causes of sea desertification, Nippon 
Steel has developed the VivaryTM Unit via joint research with The University 
of Tokyo and uses it to promote regeneration of seaweed beds.
	
While humic acid iron is the combination of iron ions and humic acid 
in the soil of a land forest in the natural environment, we have developed 
the technology to artificially generate humic acid iron by using steel stag 
and humic substance originated from waste wood. The VivaryTM Unit 
has received a safety certificate from the Safety Check and Certification 
System of steel slag products of the National Federation of Fisheries 
Cooperative Associations.
	
In Mashike Town, Hokkaido, starting from an experiment in 2004, 
we developed a large-scale project (300-meter coastal line) by 2014, 
confirming expansion of seaweed beds and an increase in intake of sea 
urchin. This project is also expected to restore once-atrophied seabed and 
steadily raise biodiversity.
2  Creation of Sea Forests
Muroran
Ezo deer, Ezo red fox, Ezo squirrel, eagle, buzzard, magpie
Kamaishi
Moon bear, Japanese serow, deer, hare, black-tailed gull
Naoetsu
Japanese dace, carp
Kashima
Pheasant, shrike, duck
Kimitsu
Bulbul, pheasant, little tern, swallow, egret
Nagoya
Raccoon, pheasant, bulbul, shrike, swallow, great tit
Osaka
Weasel, starling, bulbul
Wakayama
Raccoon, marten, bulbul, tiger keelbuck
Sakai
Duck
Amagasaki
Heron, bulbul, lizard, killifish, white-tailed skimmer
Hirohata
Buzzard, shrike, oriental turtle dove, bulbul, starling, bunting
Yawata
Weasel, pheasant, gray heron, Japanese cormorant
Kokura
Gull, Japanese wagtail, graphium sarpedon
Oita
Whooper swan, kingfisher, killifish, mayfly, firefly
Hikari
51 species of birds including black-tailed gull and herring gull
Some animal inhabitants of the Hometown Forests
Hokkaido (Mashike)
Hokkaido (Yoichi)
Hokkaido (Suttu, Tomari, Shakotan)
Hokkaido (Hakodate)
Hokkaido (Muroran)
Aomori (Ooma, Kazamaura)
Toyama (Nyuzen)
North Nippon Works (Muroran Area)
North Nippon Works  
(Kamaishi Area)
East Nippon Works (Kashima Area)
East Nippon Works  
(Naoetsu Area)
Chiba (Hota, Tateyama)
East Nippon Works (Kimitsu Area)
Mie (Shima)
Kansai Works (Amagasaki Area)
Kansai Works (Osaka Area)
Kansai Works (Wakayama Area)
Wakayama (Tanabe, 
Kushimoto, Yura)
Nagoya Works
Tokyo (Miyakejima)
Hyogo (Himeji)
Kochi (Susaki, Muroto)
Oita (Himeshima, Saiki, Kunisaki)
Miyazaki (Nobeoka)
Kagoshima (Tanegashima, Kirishima)
Kyushu Works (Yawata Area)
Fukuoka (Kitakyushu, 
Fukutsu, Fukuoka)
Kyushu Works 
(Oita Area)
Kyushu Works Oita Area 
(Oita, Hikari)
Nagasaki (Seihi, 
Segawa, Matsuura, 
Iki, Isahaya, 
Sasebo, Ojika)
Kyoto (Miyazu, Maizuru)
Setouchi Works 
(Hirohata Area)
Gray heron
Buzzard
Japanese dace
Bulbul
White-tailed skimmer
Little tern
Duck
Raccoon
3  Participation in community projects
Participation in ecological preservation activities  
in the community
Since 2012, the Nagoya Works of Nippon Steel has participated in the 
Inochi-wo-Tsunagu (Life Sustaining) Project, which has participation by 
a local students’ planning committee, representatives of 11 companies, 
the Eco-Asset Consortium and the Japan Ecologist Association of Support 
(NPO). This project seeks to develop an ecosystem network to link green 
areas at each company site and vicinity. To thereby increase the potential of 
the linked areas, an animal path was established and a fixed-point observa-
tion camera has recorded raccoons coming and going through the pathway. 
The project also included experience-based activities, including corporate 
greenery visits, fun-filled learning events for families, and craft-making 
events. The project received the Minister of the Environment Award at the 
2021 Sustainable Social Development Award as this activity’s creation of a 
network that transcends student and corporate boundaries, which led to a 
wide range of cooperative activities, were highly evaluated.
Steel slag being used for rice cultivation
Steel slag, a by-product of steelmaking, contains nutritional matter that 
helps grow plants. It is therefore used as a fertilizer for rice cultivation, 
dry-field farming, and pasture grass. Silica contained in steel slag promotes 
photosynthesis by keeping leaves upright and improving their light receiving 
orientation, while iron is effective in preventing root rot and leaf blight. 
The steel slag also contains phosphoric acid, manganese, boron, and 
various other components of fertilizer. Nippon Steel donated converter 
slag fertilizers to cooperate for research by Tokyo University of Agriculture 
for salt removal in farmland in the Soma area of Fukushima Prefecture, 
which was devasted by the earthquakes and tsunami of March 2011. The 
slag fertilizers has proved effective in rapid and efficient salt removal. The 
restoration of rice fields also means to restore habitats for birds, frogs, and 
various other living things.
4  Contribution by use of by-products
The Declaration  
of Biodiversity  
by Keidanren
Creation of Hometown Forests
Creation of Sea Forests
43
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Environmental Initiatives
Sustainability report 2022
Sustainability report 2022
NIPPON STEEL CORPORATION
Promotion of Environmental Relations Activities   Initiatives on Conservation of Biodiversity

Respect for Human Rights
Nippon Steel respects human rights and strives to create the working environment which allows diverse human 
resources to be more empowered.
Efforts to prevent human rights abuses
Basic policy
In compliance with the Universal Declaration of Human Rights and other 
international norms on human rights, the Nippon Steel Group is in the busi-
ness of creating and delivering valuable and attractive products and ideas, 
by respecting our employees’ diverse views and individualities and utilizing 
them for the good of all. Based on the United Nations Guiding Principles 
on Business and Human Rights, the Nippon Steel Group Conduct Code has 
been set. By adhering to its nine principles, Nippon Steel conducts business 
ethically, while paying full heed to human rights issues arising with the 
increasing globalization of the economy. Nippon Steel gives due attention to 
the rights of workers, and staunchly opposes the use of forced or child labor. 
These are prerequisites of our corporate activities. We have also prohibited 
Addressing human rights risks
Human rights awareness education
Prevention of forced or child labor
Compliance concerning salaries
From the viewpoint of promoting human rights (HR) awareness activities 
by assigning human rights awareness advocates at each steelworks 
and each office, and of implementing corporate-wide human rights 
awareness activities, we hold a “corporate-wide forum of human rights 
awareness advocates” in March each year to exchange views on human 
rights awareness education and new human rights risks, and to consider 
the related action policy for the next fiscal year. Based on this, we hold a 
“corporate-wide forum of human rights anti-discrimination promotion” at 
the beginning of the fiscal year, chaired by the Executive Officer in charge 
of Human Resources, with the HR managers of each steelworks and each 
office as members. At this forum, the fiscal year’s policy for promoting 
human rights development is determined.
	
In addition to implementing human rights awareness activities in 
accordance with the policies decided at the forum, each steelworks and 
Based on the policy decided at the “corporate-wide forum of human rights 
anti-discrimination promotion,” information on human rights awareness is 
incorporated in training courses for all ranks, from new employees to expe-
rienced ones. We also provide education on a variety of subjects, including 
the issues of harassment and anti-discrimination, understanding of LGBTQ, 
and human rights issues in the conduct of our business.
	
Two-way communication with employees based on good labor-
management relations is important in order to prevent human rights 
abuses. We therefore incorporate education toward building sound labor-
management relationships in training of executives of the Company and the 
Group companies.
	
In addition to general education that contributes to the prevention of 
human rights abuses in workplaces, we also address specific human rights 
abuse risks in formulating and oversight of specific work assignments. 
Examples include education on fair recruitment selection by employees 
assigned to the tasks of hiring in order to prevent job discrimination, and 
education on cross-cultural understanding and communication for those 
Adhering to international norms concerning forced or child labor, Nippon 
Steel has the policy of prevention and eradication of both types of labor. We 
comply with applicable regulations and conduct regular monitoring surveys 
of our Group companies to prevent such violations in our business activities.
In compliance with laws and regulation concerning salary and wages 
payment, Nippon Steel has set up pay at a higher level than minimum wage 
stipulated by the country, region, and type of work where we do business. 
With regard to bonuses, we regularly survey related matters, including 
the status of each country, region, and type of work, hold meetings with 
labor representatives, and appropriately reward employees by paying 
performance-based bonuses linked to company profits.
each office are actively engaged in employee awareness-raising activities, 
including holding workshops on a specific issue of the steelworks or office. 
We also participate in enlightenment organizations and activities hosted 
by public entities and others in each community. We do this as concerted 
efforts for human rights enlightenment with the communities.
	
Along with the group-wide expansion of our efforts to Group companies 
in Japan and overseas, monitoring surveys on the status of compliance with 
labor-related laws and regulations, the establishment of consultation contacts, 
and other issues are regularly conducted via a checklist on internal controls.
	
Through these efforts, we are continuously and systematically 
promoting activities to prevent human rights abuses. This includes the 
understanding of human rights risks that change with the times and the 
development of a system and a strategy to reduce the risks.
as unjust the discriminatory treatment of workers based on nationality, race, 
belief, creed, gender, age, sexual orientation, and disability. In addition, we 
give careful consideration to the traditions and culture, business practice, 
and labor practice of each country or region as we accelerate overseas 
business development.
	
Based on these basic ideas concerning respect for human rights, 
we strive to create a workplace environment where employees can share 
diverse values and maximize their abilities. We thereby seek to improve pro-
ductivity, work conditions, benefits, and the working environment, with the 
aim to enrich the life of employees and achieve the corporate development.
Mechanism of corrective actions
Communicating with stakeholders
We have clarified whom to contact for consultation on various compliance 
issues including human rights. This is a part of efforts to establish a group-
wide claim handling mechanism that makes it easy for employees and 
related personnel to ask for consultation, and that enables the Company to 
understand and identify incidents of discrimination.
	
Specifically, a Compliance Consultation Room has been established to 
accept inquiries and reports and give counseling regarding human rights 
abuses such as harassment, from employees of the Company and Group 
companies and their families, as well as from employees of business 
partners. Reports and consultations from various stakeholders are accepted 
through the Inquiry Form accessible on the website. Regarding the response 
to these individual incidents, such as internal reports and consultations, we 
investigate the facts and, if necessary, seek advice from outside parties, 
Adhering to laws and the group-company labor agreements, and respecting 
the rights to organize and to bargain, Nippon Steel strives to maintain sound 
labor-management relationships. With a focus on mutual understanding 
through two-way dialogue, we have a place for discussion with labor unions 
for the entire Company as well as for each steelworks and each office. We 
discuss the operating and financial performance, safety, health, and pro-
duction management issues, working conditions such as salaries and bonus 
payments, balancing of work and personal life, and other issues. Close 
labor-management communication is also maintained, particularly concern-
ing the actual work cases for which the labor unions received reports from 
their members. The minutes of these discussions are recorded and shared 
through the Intranet and other means broadly, from senior management to 
work union members.
	
In-house magazines for the entire Company as well as each steel-
works and each office are regularly published as a means to send various 
messages to employees. PR magazines are also published to convey our 
business and other information outside. Our steelworks and offices also 
regularly set up a place for dialogue with the nearby residents’ associations 
to ask for their understanding of our business operations and listen to 
opinions and requests from them; this is part of what we do to realize better 
communication with the local community.
including lawyers and outside professional organizations, to protect the 
privacy of the persons and to ensure that they do not receive unfavorable 
treatment. We then provide guidance and education to those involved, and 
strive to appropriately resolve the incidents.
	
Furthermore, since labor-management relations play an important role 
in preventing human rights abuses and resolving related incidents, in the 
event of disputes concerning the interpretation of collective agreements, 
labor-management agreements or other rules directly related to them, a 
grievance committee is established to resolve the dispute, based on the 
agreement concerning complaint-handling procedures that has been con-
cluded with the labor union. The committee comprises members from both 
the management and the labor side.
Number of union members and 
unionized rate (March 31, 2022)
Labor-management discussions 
(FY2021)
26,429
(100% unionized)
95 times for the entire Company
942 times at steelworks and offices
The number of recipients of training courses 
by rank on human rights (FY2021 results)
5,590
assigned to overseas business in the context of preventing human rights 
abuses (i.e., consideration for each country’s unique traditions, culture, 
business practices, and labor-management practices).
4. Human resources, and diversity & inclusion
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Sustainability report 2022
Sustainability report 2022
NIPPON STEEL CORPORATION
Respect for Human Rights
Respect for Human Rights

In order to develop an employment environment where female employees can perform at their best, an action plan is formulated as follows:
1  Plan period: 5 years (April 1, 2021–March 31, 2026)
2  Goals, details of efforts, and implementation schedule
Aim to at least double and possibly triple the number of female employees in management positions in 2025 from 36 in 2020, 
and to increase by at least four times and possibly seven times by 2030.
From FY2021
 Hire more women.
 Confirm the individual circumstances and intentions of female employees, and consider placement and development measures based on their circumstances in order 
to enable them to continue to work and actively perform.
 Invest in the working environment so as to expand the placement of women, mainly at steelworks (improvement in work infrastructure, work content, etc.)
 Consider and implement work support measures for employees in the childcare status period, such as measures for childcare centers that offer night-time service.
 In light of the enhancement of the programs related to childbirth and childcare, prepare a brochure to introduce the relevant programs, distribute it to employees, and 
revise related programs as needed.
 Provide career education that will contribute to the further promotion of female employees’ performance.
 Provide education on diversity to executives who supervise female employees.
Aim at 75% or higher utilization rate of paid leave days.
From FY2021
 Prepare a pamphlet on the vacation and leave program, distribute it to 
employees, and develop educational activities.
 Encourage taking paid leave days by setting with the labor union some specific 
days recommended for paid leaves and by conducting a campaign to do so in 
the summer.
 Managers to take the initiative in taking off on paid leave days.
 Managers to support each employee to take paid leaves as scheduled.
Support for employees’ career development and 
work-life balance
We facilitate the development of female employees by providing them with 
opportunities for growth through proactive efforts in anticipation of their 
various life events, and by actively promoting their advancement to mana-
gerial positions. As a development policy for the appointment of employees 
to managerial positions, we have established new respective career training 
programs for young and middle-class employees since fiscal 2022. We 
encourage employees to interact, and not to shy away from challenges 
arising from their work experience and life events; we also make them 
acquire mindset skills for better mutual understanding with the company 
and self-realization.
	
We will create a workplace culture where work and home life are com-
fortably balanced by making various programs well known to employees, 
through improvement and dissemination of brochures which explain the 
programs. We also provide to managers training concerning unconscious 
bias and diversity management.
Plan of action as a general employer, based on the Act on the Promotion of Female Participation and Career Advancement in 
the Workplace in Japan
Target 1
Target 2
Improved hiring and retention
The ratio of women in overall hiring is 15%, and we will continue to 
expand their hiring. We are encouraging remote working to facilitate a 
shift to a flexible workstyle and to reduce long work hours so that those 
with a constraint on the workplace or work time due to childcare or other 
conditions can continue to work. In addition, career assessments for 
female employees have been conducted to facilitate flexible placement and 
development based on the understanding of individual circumstances and to 
improve retention rates.
	
At the same time, we will continue to make changes to enhance 
the working environment, including improvement of the environment for 
expanding work placement for women especially in steel mills, and the 
operation of childcare centers that can also be used during the night time.
The ratio of women in overall hiring 
(Average ratio for FY2020–FY2022)
Office staff and engineers 25%
Operators and maintenance personnel 10%
Overall hiring 15%
Number of users of the short-work 
hour program for childcare
Number of childcare leave users 
and acquisition rate
Return ratio of female employees 
after childcare leave
98.8%
111
267 men (25.6%)2
119 women (100%)
Utilization of childcare support program (FY2021)
2 Results for the 2H of FY2021: 42.3%
77.8%
Utilization rate of paid leave days 
(FY2021)
Number of female employees in 
management positions (April 2022)
55
	
With the aim of encouraging male employees with young children to 
actively participate in childcare, since the second half of fiscal 2021 we 
have been encouraging them to take childcare and related leave.
Diversity & Inclusion
Through our efforts in promotion of diversity and inclusion, we are committed to creating a company where diverse 
employees are empowered, and feel proud and fulfilled.
Promotion of women’s participation and career advancement
Basic policy
From the perspective of creating a company where diverse employees 
are productive, perform at their best, be empowered, and feel proud and 
fulfilled, we are reinforcing our diversity & inclusion efforts with a focus on 
the following five areas, as one of important management issues.
	
The Diversity & Inclusion Department has been established as a dedi-
cated unit to promote these efforts.
What we have done so far
Toward further promoting women’s participation in the workplace
We have endeavored to establish a comfortable working environment for 
female employees. Specific programs include: 1) a childcare leave benefit 
which is more generous than legally required; 2) a program for employees 
who rejoin the company after having left it because of childcare or nursing 
care and other reasons; 3) a leave option to assist overseas relocation of a 
spouse; and 4) a temporary exemption program for employees who have 
difficulty in relocation because of childcare or nursing care and other rea-
sons. We have also been opening 24-hour childcare centers in steelworks 
and provide maternity work clothes for use by steelwork employees who are 
in the childbirth/childcare phase, in order to help them continue their shift 
work with confidence. We are also working to improve the workplace infra-
structure such as showers, toilets, and dressing rooms at manufacturing 
sites, and to improve the work content.
Based on the various programs and work environments that we have 
established, we have developed the following action plan to support 
female employees to continue to demonstrate their abilities through career 
Promote female employee’s participation and career advancement
1
Realize work life balance so as to enable employees with various backgrounds 
and circumstances to perform at their best
2
Develop health management in order for employees to perform at their best 
until the retirement age of 65
3
Prevent harassment
4
Promote empowerment of the elderly and the disabled
5
Number of in-house childcare centers (April, 2022)
Number of users of in-house childcare centers (April, 2022)
7centers
151
In-house childcare center 
(East Nippon Works Kashima Area)
development, and to promote their empowerment in all workplaces and 
levels, including enhancement of promotion to managerial positions.
Men
Women
Total
Number of employees (March 31, 2022)
25,810
2,898
28,708
Number of new hires (April 2022)
487
73
560
Average years of service (March 31, 2022)
17.0
12.0
16.5
Average age (March 31, 2022)
39.0
33.9
38.5
Turnover rate (FY2021)1
2.7%
4.6%
2.9%
Status of employees (non-consolidated basis)
1 The rate of voluntary retirees to all employees
4. Human resources, and diversity & inclusion
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Sustainability report 2022
Sustainability report 2022
NIPPON STEEL CORPORATION
Diversity & Inclusion
Diversity & Inclusion

Realizing the work life balance as a means to enable people with diverse situations perform 
well in the workplace
Health management aimed for employees to work at their best up to the age of 65
As a precondition for an environment in which diverse human resources can 
perform at their best, we are committed to reducing long work hours based 
on appropriate work time management. Prior to the revision of the Labor 
Standards Act, starting in fiscal 2018, we set up work time capping rules for 
all employees, including managers, to promote improved work management 
and work practices that lead to more efficient, higher-value-added output. In 
In order to support the various life stages of employees and enable them 
to achieve a good work-life balance, we are also focusing on welfare mea-
sures. We support employees’ personal life with various programs: provision 
We aim at ensuring that all employee work at their best from the time of 
joining the company to retirement, which has been extended to the age of 
65. To accomplish this, we assist them to maintain and enhance both men-
tal and physical health. We conduct health promotion measures focusing on 
disease prevention as well as early detection and treatment. We are com-
mitted to providing advanced health checkups including cancer or mental 
disorder screening and encouraging employees to get regular checkups, 
and provide consultation or counseling about lifestyle or stress coping by 
addition, we had set a goal of less than 2,000 hours on average for the total 
annual actual working hours, and have achieved it in fiscal 2021.
	
We will continue to pursue workstyles that achieve maximum results 
within a limited amount of time, while incorporating the effects of business 
reform and DX measures.
of housing, including dormitories and company housing, and a cafeteria plan 
(work-life support program).
health care professionals, as needed. Employees are expected to also be 
committed to implementing measures for their own health maintenance, 
such as getting various checkups and improve their daily lifestyle. We 
believe that such efforts by both the Nippon Steel Group and its employees 
become a source of motivation for work. They are encouraged to balance 
their work and health and they try not to get sick and, in case they get sick, 
they continue working while undergoing treatment.
Enabling flexible ways of working
Realization of a flexible way to take time off from work
All human resources with their diverse attributes and circumstances, 
such as age, gender, and restrictions on work time and workplace due to 
childcare and nursing care, ideally should make the most of their finite time 
available and perform at their best. From this viewpoint, we are expanding 
our work system to move away from traditionally-set ways of working 
and pursue more flexible and diverse ways of working in accordance with 
the nature of work at any given time and fluctuation in workload flow of 
We have been establishing the environment for our employees so that it 
facilitates a flexibility in the ways to take time off from work, tailored to the 
circumstances of individual employees and their life stage.
	
Annual paid holidays can be taken on a half-day basis to meet 
employees’ needs. The head office, for example, sets every Friday in 
August as an “Eco-paid leave day,” and recommends making it easier for 
employees there not needing to attend meetings and other events on those 
days to take off.
	
Concerning childcare leave, in addition to providing a longer period 
than the statutory limit, the expired annual leave days accrued by each 
individual can be recovered to paid off-days for parental leave. Currently, 
we are focusing on clarifying the corporate policies, fostering a workplace 
culture that encourages employees’ use of the system, and promoting 
the use of parental leave and childcare-related leave benefits by all male 
employees who are entitled to childcare leave so that they can get actively 
involved in childcare.
	
Matched to the ongoing aging of Japanese society, programs for nurs-
ing care leave and time off for nursing care have been established to help 
employees continue working while attending to nursing care. The expired 
leave days that have been accrued can be used for nursing care purposes, 
as part of our efforts to provide an environment in which employees can 
work with peace of mind while providing care.
	
The expired annual leave days can also be utilized for childcare and 
nursing care as well as sick leave, care of elementary school children, vol-
unteer work, and infertility treatment. From this year, it can also be utilized 
for prenatal checkups and recurrent education. For the latter, we have 
established a leave system for obtaining a degree at a university or another 
educational institution.
	
To promote the use of these programs, we distributed a brochure that 
summarizes each type of work and vacation program applicable for each 
life stage. We try to make the programs better known through various 
training programs.
Nippon Steel Corporation Group Code of Conduct
5 Create a healthy, safe and comfortable work environment, and respect the character and diversity of our employees.
Restraint on long-work hours
Benefit programs
Basic policy
Nippon Steel’s Basic Policy on Safety and Health
1  Ensuring and maintaining the safety and health of employees of the Nippon Steel Group is the Group’s most important, top-priority values and the basis that 
supports business development.
2  Under the Management Principles of “developing and bringing out the best in our people,” the Nippon Steel Group makes continuous efforts to abide by this 
philosophy and continues to contribute to society through their safety and health.
1  We observe applicable laws and regulations, and give top priority in all business decisions to ensuring safety and health.
2  We maintain awareness and understanding of actual workplace conditions, provide the guidance needed to ensure safety and health, and remove factors that 
might lead to accidents.
3  We follow plans to implement measures to realize safer, healthier work procedures and work environments.
4  We ensure the observance of rules and engage in hazard prediction, and proactively implement workplace activities to enhance the level of safety and health.
5  We provide the education and training needed to ensure the safety and health of people working in the Nippon Steel Group.
6  We continuously develop and improve safety and health efforts through the safety and health management system.
Commitment to the health of both the Company and its employees
Organization for health promotion
Labor-management council
Committee of health 
insurance
Committee of health 
promotion
Health promotion department in 
steelworks (corporate physicians, nurses, 
and industrial health staff)
Health promotion planning department for 
the whole company (corporate physicians, 
nurses, and industrial health staff)
Human Resources Div.
Nippon Steel
Steelworks
Company
Occupational health care 
professional
Workplace (Managers)
Support the health of employees, be 
cognizant their health status, and adjust 
work assignment
Employee
Get the regular health 
checkups and the 
cancer screening
Check the  
results of the 
health checkups
Employees are 
productive and 
fully exercise 
their capabilities
Post-checkup 
measures
Health checkup
Give health guidance and 
consultation for medical 
examination or treatment
Confirm at the next 
health checkup
Provide the advanced 
health checkup menu
 Lifestyle
 Extensive testing and treatment
Make efforts at improvement
Federation of Nippon Steel 
Workers’ Unions
Nippon Steel Corp. Health 
Insurance Society
Average overtime hours per worker per month
18.9 hours
Utilization of paid leave days
77.8%
Average paid leaves taken
15.6 days
Childcare leave users and utilization rates
267 men (25.6%)1
119 women (100%)
Nursing care leave users (including continued users)
9
Users of the short-work hour system for nursing care
1
Performance of ways of working and taking time off (FY2021)
1 Results for the 2H of FY2021: 42.3%
operations needed at that time, and the circumstances of each individual. 
Specifically, we are actively utilizing the telework system and expanding 
workplaces that use the “coreless flexible system,” which eliminated the 
core time — an essential time period to be in the office. Based on these 
systems, we aim to achieve improved productivity and employees’ work-life 
balance, while pursuing ways in which individuals can perform at their best.
Basic Philosophy
Specific Guidelines
April 1, 2019
Eiji Hashimoto
President of Nippon Steel Corporation
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Sustainability report 2022
Sustainability report 2022
NIPPON STEEL CORPORATION
Diversity & Inclusion
Diversity & Inclusion

Various cancer screening (including non-statutory exams) based on age and 
gender are incorporated in our health checkups.
	
In particular, regarding exams for gastric and colon cancer, which 
are high risk diseases, we set the evidence-based priority target age and 
We have established a unique company-wide system that enables us to 
assess and manage the risk of diseases based on the results of health 
checkups. We provide health guidance according to risk factors or control 
the frequency of health checkups.
	
It is important that workers with high risk of cardiovascular disease 
improve their lifestyle. We will improve the implementation rate of specified 
health guidance, which aimed at improving the dietary and exercise habits 
of workers, by setting a target rate and promoting medical visits. We coop-
erate with the Health Insurance Union for achieving the goal.
In addition to the above-stated health 
measures, we collaborate with the Health 
Insurance Union and labor unions in a variety 
of health-wellbeing activities, such as the 
“Health Challenge Campaign” living habits, 
“Health e-learning” for improving employee 
health awareness, and passive smoking 
preventive measures.
screening frequency for the examination. We also set our target rate of 
exam-taking and encourage employees to take exams for early detection 
and treatment of cancer.
Promoting mental wellness
Support to employees who work overseas
Aiming for each employee in the Nippon Steel Group to enjoy a vigorous 
life on and off the job, we provide a consulting service for prevention and 
early detection in the area of mental health. For general employees, we have 
incorporated the issue of mental health in various in-house seminars and 
offer education on how to be aware of one’s own stress and to deal with 
it. For managers, we offer education on how to care for their subordinates 
and manage their teams, and how to coordinate with the corporate health 
care professionals (occupational physicians, health nurses, and other 
staff). Moreover, we provide stress checks through a workplace stress 
survey every fall. Occupational health care professionals give guidance for 
improvement by teams and individuals based on the result of the stress 
check. In contributing to a vigorous work environment, managers implement 
necessary measures according to the issues of a team or an individual, 
coordinating with the personnel department and the health department. 
Because early detection and early response are important in the treatment 
of mental illness, we identify those who are at risk at the Health Consulting 
Contact by various measures in association with the Company’s mental 
health e-learning and questionnaire event conducted every June. 
Occupational health care professionals swiftly respond to the findings of the 
events to foster mental wellbeing.
To enable employees who have been assigned to work overseas to be free 
of undue worries, a seminar for the employees and their family is held 
before the overseas assignment, and information on mandatory vaccination, 
the local medical system, and other matters are provided. Under the policy 
of providing continuous health management support during overseas 
assignments, interviews with occupational health care professionals are reg-
ularly conducted counseling via online and at the time of a temporary return 
to Japan, in addition to aftercare checkups of the regular medical exams. 
Moreover, one of the Company’s physicians periodically visits overseas 
Promoting physical wellness
Cancer disease control
Cerebral cardiovascular disease control
Health-wellbeing activities
Type of examination
Priority target (target age and test frequency)
Gastric cancer examination (gastric fluoroscopy)
Once every 2 years, 50-years old or older
Colorectal cancer test (fecal occult blood)
Once a year, 40-years old or older
Prostate cancer test (PSA)
Once every 3 years, 50-years old or older
Breast cancer screening (mammography)
Once every 2 years, 40-years old or older
Cervical carcinoma of the uterus (uterine cytology)
Once every 2 years, 20-years old or older
Gastric cancer risk test (pylori)
When joined the company and at 40
Liver cancer risk test (hepatitis virus)
When joined the company and at 40
Actual rates of taking cancer examination (2021)
Specified Health Guidance (2020)
68.4%
Actual implementation 
rate
47.6%
73.1%
70%
Target
Target implementation rate
70%
Target
90%
Target
offices, researches local medical institutions and the daily-life environment, 
and meets with the employees who work overseas to offer advice. We have 
contracted with a medical service company to provide the medical care 
locally, in preparation for the employees possibly becoming ill overseas.
	
Concerning the COVID-19 infections, necessary infection prevention 
measures, including evacuation measures, have been implemented in 
consideration of the local infection situation and the state of medical care, 
with the first priority on the safety and health of the employees who work 
overseas and their families.
Classification
Details
Proactive action
(Self-care)
(Care by management supervisors)
(Care by occupational health care 
professionals)
 Stress check for awareness of their stress 
Training for new hires and young employees
 Workplace analysis of stress check to help employees 
become aware of their stress
 Support from supervisors or colleagues
 Training for managers
 Providing mental health education program by 
occupational health care professionals
Early detection
 Screening of those in poor conditions in the interview 
during a regular health checkup
 Screening of highly-stressed people via stress 
checkups
 e-learning to extract those who wish to be consulted
 Establishment of a health counseling contact
Support for employees’ return to 
jobs and prevention of recurrence
 Support for employees’ return to jobs based on the 
return-to-work program
 Re-designing of work assignments for a smooth 
return to the workplace
 Regular interviews after return by occupational health 
care professionals
Our mental health initiatives
Classification
Details
Health Challenge Campaign
 A company-wide measure in which employees challenge for two months to improve their own life habits
 Provide courses that are effective in improving health checkup results and lifestyle.
Ex. Take 8,000 steps a day/Have good breakfast
Health e-learning
 Twice a year for all employees
 The themes for FY2021: “Mental health e-learning: Mental signal and recommendation of early 
consultation” and “Cancer prevention and cancer screening”
Passive smoking preventive 
measures and non-smoking 
guidance
 Since April 2020, smoking in Company buildings has been prohibited (excluding designated smoking rooms).
 Implementation of guidance on how to quit smoking at the on-site clinic or other clinics or via website
For employees who wish to stop smoking, an occupational health care professional will provide 
individual guidance.
Preventing harassment
Empowerment of the elderly and the disabled
In order for all Nippon Steel employees to work with vigor, it is extremely 
important to respond appropriately to harassment issues, and we are 
strengthening our efforts to prevent them.
	
Specifically, we have clarified our internal policies to prevent harass-
ment in terms of working regulations and internal regulations, and we have 
also prepared and distributed leaflets to promote awareness among all 
employees. In addition, we engage in education through e-learning for all 
officers and employees, and through sponsoring lectures on harassment at 
milestone training events, spanning activities from new employees to higher 
management. In addition to continuing these efforts, we incorporated our 
awareness of the matter of unconscious bias into our training programs 
in fiscal 2021. We will continue such periodical reviews of the content of 
training programs.
With regard to the promotion of the empowerment of the elderly, we 
extended the retirement age to 65 from 60 in fiscal 2021, after consultation 
with labor unions, and taking into account the declining working population, 
the response to the extended starting age of the pension system, and the 
maintenance and improvement of our workplaces.
	
Assuming that the same work will be carried out, even after the age of 
60, the employment scheme as well as the salary and bonus scheme will 
remain the same up to the age of 65.
Recognizing employment of the disabled as an important social challenge, 
we are implementing an action plan for their employment and providing a 
friendly working environment.
	
Since 2007, we have established special-purpose companies to expand 
employment opportunities. As of June 2022, at four special subsidiaries 
of NS Heartful Service East Nippon Ltd., NS Heartful Service Tokai Ltd., NS 
Heartful Service Kansai Ltd., and NS Heartful Service Kyushu Ltd., over 100 
people are actively engaged mainly in various outsourced work from Nippon 
Steel. The work includes data input and printing of written documents, 
cleaning of the steelworks premises, cleaning and management of the 
welfare facilities, and cleaning of work clothes.
	
Dedicated consultation and reporting points of contact have been 
established so that employees who face a harassment issue can consult 
with other people, in addition to someone close to themselves, such as their 
supervisor or co-worker. We are striving to create an environment wherein a 
harassment issue can be resolved without the employee concerned taking it 
on all alone.
	
Each of the contact points takes individual actions and makes sure 
not to disbenefit anyone for reporting or cooperating. After investigating 
and confirming the existence of a problem, we take strict measures in 
accordance with employment rules and other regulations.
	
Under this new system, hopefully, all generations, up to 65 years 
of age, will continue to perform at their best at the front lines of our 
workplaces, while also invigorating the skill transfer process and 
communication within the workplace between generations, thereby creating 
a vibrant company.
Employment for the elderly
Employment for the disadvantaged
Employment rate of the disabled
(as of June 2022)
2.40%
Work scenery at one of the special-purpose subsidiaries
(2025)
(2025)
(2025)
Gastric cancer 
screening
Colorectal cancer 
screening
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Sustainability report 2022
Sustainability report 2022
NIPPON STEEL CORPORATION
Diversity & Inclusion
Diversity & Inclusion

Human Resources Development
Based on the belief that the development of excellent personnel is a prerequisite for the development of excellent 
technologies and the production of excellent products, Nippon Steel is striving to enhance workplace strength and 
technological advancement and to improve its overall manufacturing capabilities.
Initiatives for human resources development
Basic Policy for Human Resource Development
Personnel development of office staff and engineers
Recognizing that the source of competitiveness is the power of people, 
Nippon Steel’s Management Principles state that “we develop and bring out 
the best in our people to make our Group rich with energy and enthusiasm,” 
positioning human resource (HR) development as a priority theme. A goal of 
HR development is to create people who can understand and implement our 
Corporate Philosophy and our Employee Action Guidelines. With this in mind, 
each employee shares in taking the lead in HR development.
	
Nippon Steel’s basic approach to HR development is for supervisors 
to transfer to their subordinates, through daily dialogues on the job, 
Following the Basic Policy for HR Development, Nippon Steel uses a HR 
Development PDCA for office staff and engineers, who implement OJT-
based HR development plans. Specifically, development plans are formu-
lated for each person based on the Corporate Philosophy, Employee Action 
Guidelines, and organizational strategies. Based on a concrete one-year 
plan, a supervisor and a subordinate have an extended dialogue throughout 
the OJT period, review the development situation at year-end, and formulate 
the next year’s plan.
	
The OFF-JT is also being enhanced to complement the OJT. Various 
training programs are aimed at acquiring the knowledge and skills required 
for each qualification and position. An employee’s period of time from 
joining the Company to becoming a manager is divided into three steps: 
“Discipline”, “Creation” and “Independence”. Work reporting sessions and 
training by rank are carried out at the milestones of the 2nd, 3rd, or 5th 
anniversaries of the start of employment. In addition, selective training to 
improve the skills needed for work, and technical education programs to 
systematically learn the knowledge needed for our engineers are available. 
Personnel development of operators 
and maintenance staff
The operators and maintenance staff put into prac-
tice their accumulated skills in steelmaking and 
maintenance, starting from joining the Company, on 
the assumption of continued long-term employment 
to retirement. They thus fundamentally support the 
Company’s manufacturing worksites. Smooth transmis-
sion of technology and skills from veterans to younger 
workers is essential and a system that facilitates 
this is needed. Therefore, after identifying, through a 
supervisor-subordinate dialogue, the skill or skills to 
be acquired, a skill development plan is developed 
and carried out. Training is conducted mainly through 
On-the-Job Training (OJT), and the HR Development 
PDCA is kept up to date for use by repeatedly revising 
and implementing the development plan based on the 
progress of individuals.
These can be taken based on individual development needs upon the 
supervisor-subordinate dialogue.
Human resource development PDCA (conceptual rendering)
Operation management 
based on the supervisor-
subordinate dialogue
P
Conduct annually
Base that supports the HR 
development PDCA
Heads of plant/mill and managers
Planning staff placement 
and structure
Individual placement plan
HR development plan
Skill map
Dialogue
Indicate a pair for 
development
Trainer
Trainee
Corporate Philosophy and Employee Action Guidelines
 Operational theme
 Skill enhancement of 
individuals
 Subordinate development
Do
D
Individual OJT as a base
OFF-JT complements OJT
Plan based 
on the 
dialogue
Act and 
amend
A
Act and 
amend
A
Base
 Development 
process
Base
 Skill growth
 Training
Check
C
Check
C
1  HR development is the job itself, and supervisors play an important role in HR development.
2  OJT training is a basis of HR development and is complemented by off-the-job training.
3  Supervisors share objectives and outcomes of HR development clearly with their subordinates.
4  Each individual strives for continual personal improvement for further growth.
Basic Policy for Human Resource Development
understanding and knowledge of criteria for judgment and of operational 
skills. In order for this mindset to be shared by all employees, the following 
Basic Policy for Human Resource Development has been adopted.
Number of training/learning hours
(FY2021)
0.54 million hours/year
(19 hours/year per employee)
	
Off-the-job training (OFF-JT), which complements OJT, is used 
throughout the Company by organizing the minimum skills and knowledge 
required by each rank of employees of Nippon Steel into a company-wide 
standard system. Through this, we work at education of workplace leaders 
to further increase their ability to add to and improve our knowledge base 
from the field (“field technology”) and at measures to maintain and improve 
motivation of the elderly to continue working with health and motivation.
	
We are also actively promoting cooperation in HR development with 
partner companies, which play an important role in our steelmaking, from 
the perspective of deepening and expanding our partnerships. Specifically, 
in addition to the training of each partner companies, the training programs 
for various ranks of employees of these partner companies, such as 
newcomers, young staff, job leaders, and line managers are provided with 
Nippon Steel’s employees as instructors. Through these efforts, we support 
the HR development of our partner companies, encourage exchanges 
between our on-site employees and their employees, and establish a 
foundation for smooth business execution.
	
Another area we focus on is to diversify recruitment sources (especially 
for female employees and mid-career recruitment), and we strive to 
create a workplace climate in which diverse personnel can be motivated 
Development of operators and maintenance staff
OFF-JT
Training by role and position
Safety training
Ever Smile Training
Training for re-appointed team leaders
Follow-up training for team leaders
Training for young leaders
Training for newly-appointed team leaders
Third-year training
Training for team leader candidates
Second-year training
Training for newcomers
(Manners and discipline, basic skills, communication, 
mental health, etc.)
Training for young staff (Nippon Steel School)
(Management, leadership, etc.)
Training for team leaders
(Technical transfer, life plan, etc.)
Training for veterans
General staff
Leaders
Note: In addition to the above, training to impart and improve knowledge and skills needed for partner companies’ 
employees by rank (newcomers, young staff, team leaders, job leaders, and line managers) with Nippon 
Steel’s employees as instructors is available.
Safety training 
by rank
Safety and health 
management 
training for  
10 years
Taikan Program
(an experience- 
based safety  
education program)
and collaborate with each other through human rights awareness and 
harassment prevention.
4. Human resources, and diversity & inclusion
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Sustainability report 2022
NIPPON STEEL CORPORATION
Human Resources Development
Human Resources Development

Development of staff who support technological advancement
Global personnel development
Development of staff who drive DX
Development of managers
In order to train human resources that achieve world-leading technologies 
and manufacturing capabilities, courses to learn the essential knowledge 
and technologies for steelmaking engineers are prepared. In particular, the 
content of courses classified as steelmaking process-specific technologies is 
at the core of Nippon Steel’s technology. We have developed an environment 
in which we can learn from basic technologies to advanced technologies, 
with excellent in-house engineers as instructors.
For our employees to effectively work in any country where we are active, 
we provide pre-assignment training aimed for them to acquire basic knowl-
edge to do business in the country and understand cultural differences. 
We have also set standards for English language skills to be reached by 
each level, and are working to raise the overall level of our group. For those 
whose job requires English skills, there is a program aimed at raising their 
proficiency level in English so that they can perform their jobs overseas 
without need for translators or interpreters.
	
Further, to train future players of our domestic and overseas businesses, 
middle-management seminars are designed for young managers to acquire 
the knowledge, skills, and mindset necessary for business management.
	
Concerning development of overseas local staff, we make efforts to 
transfer to them Nippon Steel’s operational skills, mainly through OJT, 
according to the Company’s Basic Policy for HR Development. In the ASEAN 
countries and India, where our overseas Group companies are concentrated, 
training courses by rank, as well as OFF-JT courses for specific skill learning 
and other subjects are conducted.
We are developing human resources in both digital management and data 
science. As for digital management education, we began to educate all 
managers to understand their role in the promotion of DX and encourage 
them to change their mindset, so that they can facilitate operational process 
reform using digital technology. As for data science education, our goal is to 
The training courses are provided to managers to match the managers’ 
qualification and position, and are given so that they can acquire proper 
understanding of their responsibilities and authority as managers; knowl-
edge, skills, and mindset that contribute to enhancing their management 
as supervisors; and group management capabilities. In recent years, we 
have given increased attention to management education. We added new 
courses including one for line manager candidates to enhance line man-
agement skills on the manufacturing field, and one for new managers to 
ensure they have a correct understanding of their roles and responsibilities 
as managers, and acquire the risk management and job and organizational 
management skills.
Approx. 
20%
Advanced use of data
Manage operational reforms, 
projects, etc.
Approx. 
80%
Effective use of data
Learn and use 
technology
AI development
Develop strategies
(vision, business reform)
Management
Data science knowledge
General staff
Data Science Training
Digital Management Training
Use of digital and other 
advanced technologies
develop DX skills training to enable all office staff to become data science 
users who can effectively use data by 2030, and to develop 2,000 or more 
citizen data scientists who can make advanced use of data. Through the 
education from these two aspects, we intend to accelerate our production 
and business process reform, using data and digital technology.
“Discipline”: In the initial few years, new hires learn the basics in each of 
our fields of expertise, and acquire the manners and basic 
patterns for work as a social person through each practice.
“Creation”: The employees in this step are assigned to perform a certain task 
from start to finish, develop their execution ability, identify their 
own field of expertise, and acquire a firm basic foothold in it.
“Independence”: Through experience of working according to their own 
responsibility, the employees develop their leadership 
skills. Together with development of skills, when they 
reach this phase they must also pay close attention to the 
development of their subordinates or junior colleagues.
Training by role and position
Seminar for newly-appointed 
managers (Head of Dept./Plant/Mill)
Seminar for newly-appointed 
managers (Head of Section)
Seminar for senior executives
Seminar for Group company executives
Seminar for executives
Seminar for manager candidates 
(Head of Plant/ Mill Section)
Follow-up seminar for supervisors
Training for supervisor candidates
Fifth-year training
Third-year work reporting session
Second-year training
Training for newcomers
Seminar for newly-appointed 
senior managers
Seminar for newly-appointed 
managers
Managers
General staff
Education efforts for advancing 
priority issues
DX skills
Business skills
Technical 
education
Selective training for the needs 
of departments and individuals
Development of managers
 Understanding of role and 
responsibility of managers
 Management of organization 
and operation
 Risk management, etc.
Development of management personnel
 Corporate and organization 
management
 Business management skills 
(financial, business strategy)
 Global management, etc.
Development of general staff
 Understanding of role and mind setting by the year of joining the company
 Logical thinking and problem-solving ability
 Communication (ability to speak out, listen, and make others get engaged)
Seminar for middle management
D&I
Global
DX 
promotion
Female management design college
Female self-leadership college
Overseas top training
Training for those to relocate overseas and for their family members
English advanced course
Training for administration staff
Training for English and local languages
Overseas study
DX training for managers
DX training for practitioners
Training for data science users
Training for citizen data scientists
Training for expert scientists
Legal and intellectual property seminar
Advanced financial training
Introductory financial training
Logical thinking, presentation
Coaching, facilitation
Marketing, etc.
General technical skill training
Technical skill lecture of steelmaking technology
Training for the needs of department
Fifth-year work reporting session
For all employees
For selected employees
Selective type
Three steps for growth
“Independence”
“Creation”
“Discipline”
Development of office staff and engineers
DX training for 
practitioners
General staff
Senior managers
Executives and 
general managers
DX training for 
managers
Managers
Expert data 
scientists
Citizen data 
scientists
Data 
science 
users
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Sustainability report 2022
NIPPON STEEL CORPORATION
Human Resources Development
Human Resources Development

Initiatives on Safety and 
Disaster Prevention
Initiatives on Quality
In keeping with the corporate philosophy that “safety and health are the most valuable factors that take precedence 
over all other things and they are the basis that supports business development,” the Nippon Steel Group has firmly 
adhered to its manufacturing values, which include observing the principles of prioritizing safety, protecting the 
environment, and preventing disasters.
As part of our efforts to provide customers with products and services that are trusted and satisfy, the Nippon Steel 
Group strives to improve quality by ensuring that all employees involved in manufacturing and service are engaged in 
quality control and quality assurance.
Safety and health initiatives
Reducing disaster risks to zero, and group-wide 
sharing of effective measures
We make a risk assessment when planning a new project and regularly 
conduct safety and risk assessment for existing projects, to prevent 
accidents and reduce risks. We also seek for greater safety of equipment 
even when such equipment is essentially safe, and take countermeasures 
against human error. We also actively promote use of IT in safety measures, 
such as checking worker location data via GPS, safety surveillance cameras, 
and helmet-mounted cameras. We conduct analysis of actual accidents 
for prevention of similar accidents and make known effective examples 
of accident-preventive measures. As a result of continuous execution of 
these measures, safety improved in fiscal 2021. There were 6 accidents 
for Nippon Steel’s employees1 and 10 for employees of subcontracting 
companies (including zero fatal accident for Nippon Steel and two in sub-
contracting companies) The accident frequency rate was 0.08 (compared to 
Japan’s steel industry average of 0.90) and the accident severity rate was 
0.10 (vs. 0.21). We will continue to strive for a safe work environment with 
the safety wellness targets for fiscal 2022 that are zero fatalities/severe 
accidents and less than 0.10 as the accident frequency rate.
Accident frequency rate 0.10 or less
Zero fatalities accidents
Target
1 Nippon Steel’s employees include seconded employees as well as temporary and part-time workers, and those 
dispatched to Nippon Steel.
2 JISF “Safety Management Overview, 2022”
3 World Steel Association, Safety and health 2021 metrics report
Accident frequency rate
×  1,000,000
Number of accidents and recordable 
incidents, accompanied by lost work time
Total number of hours worked  
by all employees
Kashima Area’s ISO (JIS Q) 45001 Health and Safety certification
Acquisition of third-party certification
Nippon Steel’s 12 steelworks and offices acquired the ISO (JIS Q) 45001 
Health and Safety certification (published in March 2018) as of April 2022. 
We target to acquire the certification for all our steelworks and offices.
Safety training
We make efforts to improve training for accident prevention. The safety 
training programs are attended by all newly-appointed managers of manu-
facturing worksites (42 managers in fiscal 2019, 81 in fiscal 2020 and 80 
in fiscal 2021). Our Taikan Program (an experience-based safety education 
program) allows employees to experience worksite risk through simulation, 
so as to better prepare them in anticipating and managing risk.
Acquisition of ISO (JIS Q) 45001 certificates
FY2019
Kansai Works Wakayama Area
FY2020
Amagasaki Area and Osaka Area of Kansai 
Works; Nagoya Works; Kyushu Works Oita 
Area; East Nippon Works Kashima Area
FY2021
Naoetsu Area and Kimitsu Area of East Nippon 
Works, North Nippon Works Muroran Area, 
Setouchi Works Hirohata Area
FY2022
North Nippon Works Kamaishi Area, Kyushu 
Works Yawata Area
Efforts Toward 
Safety and Health 
Management
https://www.nipponsteel.com/ 
en/csr/safety/index.html
Specific disaster prevention initiatives
1  Prevention of disaster recurrence (mitigating risks exposed by disaster)
 Enhance drills for initial response (drills at all plants in all steelworks; enhanced drill programs; use of dedicated training facilities, improvement of hazard sensitivity by use of CG, etc.)
 Improve fire-fighting capacity of the in-house fire defense function, in cooperation with experts (joint fire drilling with public fire fighters; training for leaders, etc.)
 Prevent forgetting past incidents and accidents (panel presentations in training facilities; session to learn about past incidents during training)
2  Disaster prevention risk assessment (identification of new potential disaster risk)
 Identify and assess risks in manufacturing sites based on the corporate-wide guidelines; manage residual risks; and develop and promote permanent measures
 Identify accident risks related to operating processes and facility design and promote the drafting of permanent measures by outside experts and the process technology division in 
the head office
 Strengthen disaster prevention management in the facility measures of the Medium to Long-Term Management Plan
3  Measures to mitigate existing risks (measures for disaster prevention equipment)
 Prevent disaster recurrence; investment in measures for compliance and risk assessment
4  Auditing concerning disaster prevention
 Voluntary monitoring by disaster prevention organization at each steelworks for regular check-ups and corrective action on the status of disaster prevention activities at the 
manufacturing work front
 Regular check-up and corrective action on the implementation status of disaster prevention management of each steelworks based on the hearings in the head office
5  Third-party monitoring toward enhancing safety competency in steelworks
 Assessment of steelworks by an NPO, the Japan Safety Competence Center
6  Measures against earthquakes and tsunami and measures for natural disaster mitigation
 Promote measures against earthquakes in the order of 1) human injury prevention, 2) area damage prevention, and 3) production measures
 Prepare procedures, carry out practical training, and devise measures for disaster mitigation to the nine categories of natural disasters (earthquakes, tsunamis, typhoons, heavy rains, 
floods, lightning, landslide disasters, blizzards, volcanic eruptions)
7  Group companies disaster prevention management
 Meetings to enhance coordination for disaster prevention management; individual visits to a workplace where a disaster or accident happened or which has risks related to disaster prevention
Zero serious disaster-related accidents
Target
Specific initiatives
1  Enhancement of education on quality compliance
 Enhancement of quality compliance education opportunities (ICT utilization, e-Learning)
 Spread and retention of the five basic rules of quality behavior (posters in the workplace, education for all employees, preparation of a personal code of conduct)
 Promotion of standardization and improvement in capacity of staff
2  Activities to reduce behavioral risks (risks of human intervention)
 Enhanced identification management and reliability of testing and inspection by promoting automation and systemization
 Follow-up on the effectiveness of the system to prevent rewriting of test results
3  Advanced internal quality audit
 Periodic audit by the Quality Assurance Department of the Head Office
 External audit by acquiring certification of ISO 9001, JIS, etc.
 Promote own-initiative audits by educating internal audit staff and improving their capacity
Activities aimed at strengthening the quality assurance system of the Nippon Steel Group
As a basic policy in line with the Japan Iron and Steel Federation’s guideline, 
aimed at strengthening the quality assurance system, we are promoting 1) 
the enhancement of education on quality compliance (compliance with laws 
and regulations), 2) activities to reduce behavioral risks, and 3) advanced 
internal quality audit. Information on quality-related examples is promptly 
shared across the Group and at appropriate times measures are launched 
to resolve issues through standardization, systemization, automatization, 
and other action. These measures are then implemented to enhance identi-
fication management of actual products and to improve reliability of testing 
and inspection. In addition, the five defined basic rules of quality behavior, 
formulated in fiscal 2021, have been made known to all employees, with 
a focus on improving the awareness in quality compliance and preventing 
quality problems to occur.
Disaster prevention initiatives
Initiatives to reduce disaster risks
Nippon Steel’s Plant Safety Division is promoting initiatives for risk reduction 
in disaster prevention by working in three areas of focus: 1) corporate-wide 
implementation of measures against risks that emerge from instances of 
disaster, to prevent recurrence; 2) identification of disaster occurrence 
risks based on risk assessment plant by plant and by each of their process 
technology divisions; and implementation of tangible/intangible measures to 
reduce risks and control residual risks; and 3) voluntary monitoring (auditing) 
concerning appropriate implementation of 1) and 2), by persons in charge of 
disaster prevention in each works; understanding of the control status through 
sessions with managers at the head office; and implementation of corrections, 
if needed. Targeting zero serious disaster-related accidents, we promote 
essential disaster prevention improvement measures in manufacturing sites.
(FY)
2013
2.5
2.0
1.5
1.0
0.5
0
Accident frequency rate
2014
2015
2016
2017
2018
2019
2020
2021
 Target: 0.10   
 Nippon Steel   
 Domestic all industries2   
 Domestic manufacturing industries2   
 Domestic steel industries2   
 Domestic steel industries2 (JISF members)   
 World steel industries3 (WSA members)
Target: 
0.10
1. Safety, environment,  
and disaster prevention
2. Quality
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NIPPON STEEL CORPORATION
Initiatives on Safety and Disaster Prevention
Initiatives on Quality
Initiatives on Safety and Disaster Prevention / Initiatives on Quality

Initiatives on Production and 
Supply Chain Management
To realize the production and supply of steel products required for a sustainable society, Nippon Steel is making 
various efforts concerning the procurement of raw materials, other materials, and equipment as well as the 
arrangement of systems for stable production, shipping and transportation, and the offering of solutions to meet 
customer needs.
Sustainable procurement efforts
Consideration to reducing environmental impact in procurement activities
Optimal management of manufacturing and shipping
Efforts to stabilize production
Dealing with the workforce shortage in domestic logistics
Solution proposals to meet customer needs
Economic development of emerging countries is a major element of change 
in the global purchasing environment, requiring Nippon Steel to make 
strategic purchasing for enhancing manufacturing capabilities. At the same 
time, it is becoming increasingly important for not merely our Company but 
also our entire supply chain to fulfill social responsibilities in order to realize 
a sustainable society. Against this background, we steadily and continuously 
procure raw materials, other materials, and equipment to achieve a stable 
supply of steel products for a sustainable society.
	
In terms of procurement of raw materials and fuels, we are sourcing 
from suppliers worldwide, including Australia, North America, South America, 
South Africa, and China, for a stable supply of more than 100 million tons 
of raw materials for the steelworks. The supply of materials is mainly iron 
ore and coal. In the procurement of materials and equipment, we purchase 
around one million product items of equipment and materials — from 
gigantic facilities such as blast furnaces to electric and mechanical products 
as well as safety, emergency, and office supplies — from about 3,000 
suppliers other than major suppliers of iron ore and coal.
	
In engaging in these procurement activities, we are committed to 
compliance with laws and regulations, consideration of environmental 
conservation, elimination of racial discrimination and human rights abuses, 
confidentiality and thorough information management as prerequisites. 
We then strive to maintain and improve mutual understanding and trust 
with suppliers from a long-term perspective. In July 2020, upon affirming 
agreement with efforts made by the Ministry of Economy, Trade and 
Industry, we made a declaration for the establishment of partnership 
Based on the Life Cycle Assessment concept, Nippon Steel is taking initia-
tives in reducing environmental impact at various points along the supply 
chain. In keeping with rising demand for tighter management of chemical 
substances, we have created management standards for 16 toxic chemical 
substances, including cadmium, jointly with customers and suppliers. We 
then established a system to manage substances of concern contained in 
purchasing materials and products, including packaging materials.
	
In addition, as stipulated in the Charter of Corporate Behavior by 
Keidanren, we have set up internal rules, including an appropriate purchas-
ing policy, which puts us on record as fully considering resource protection 
and environmental preservation. Moreover, we have participated in the 
In order to deliver products that meet customer requirements on time, our 
head office unit, which manages all our sales and marketing, coordinates 
product manufacturing plans throughout the Company every day, while 
keeping track of sales and production. The process control units in each 
In collaboration with NS Solutions and Nippon Steel Texeng, we have 
constructed NS-IoT, a wireless IoT sensor utilization platform that centrally 
manages data of multiple steelworks by using LPWA (Low Power Wide Area 
wireless communication) and cloud technology. The platform was put into 
operation in April 2022 in the Kimitsu Area and Kashima Area of the East 
Nippon Works.
	
The NS-IoT enables centralization of collection of data from steelworks 
for efficient data analysis, and enables creation of data-driven production 
processes that allow for both location-independent evaluation of facility 
performance and detection of changes. Utilizing a wide range of data 
collected via the NS-IoT and others, we aim to accelerate formalization and 
standardization of our proprietary technologies, including tacit knowledge of 
Approximately 60% of our domestic steel products are transported by about 
200 coastal ships, which provide the primary means of transportation for 
industrial logistics.
	
In the coastal shipping industry, as in other logistics industries, the 
shortage of workers has been a problem. Many operators (shipowners) in 
the coastal shipping industry are small or medium-sized business persons 
and find it difficult to recruit and train new sailors even if they are willing, 
because extra cabin space cannot be installed and the crew members find 
it burdensome to teach newcomers. The Nippon Steel Group has therefore 
built a practical training ship, Reimei, and started its operation as one of 
ways to secure crews. This practical training ship, which is well designed 
with cabin space for an instructor and up to five trainees students, comfort-
able living space, a bridge and a dining room, is greatly contributing to the 
development of new sailors.
Nippon Steel has been making advances in the development of solutions 
for the next-generation steel car concept NSafeTM-AutoConcept (NSAC), 
which was announced in 2019. In anticipation of the performance required 
for each component of a next-generation steel car, which must embody 
substantial weight reduction and improved safety, we have been developing, 
in NSAC, advanced materials, as well as component structures (to maximize 
material performance) and processing technologies (for these structures). 
relations with suppliers and other business partners to establish cooperative 
and co-existing relationships.
	
In connection with procurement of materials and equipment from 
numerous suppliers, we hold a Material/Equipment Procurement Partners 
Meeting, to be held once every three years with an objective to share our 
purchasing policy, in order to deepen dialogue and share procurement 
policies based on management strategies.
	
In fiscal 2018, about 1,300 suppliers attended our first Partners 
Meeting, where we asked them to cooperate in strengthening partnerships 
to improve manufacturing competitiveness and in promoting procurement 
activities to achieve the goals of the SDGs. In 2021, we held the second 
Partners Meeting, and, in addition to conveying the same message as in the 
first meeting, we shared our commitment to sustainable development of our 
entire supply chain with the suppliers, who are our business partners.
Green Purchasing Network (GPN) since 1996, when the network was 
founded, in order to promote green purchasing activities. Jointly with busi-
nesses, governments, academia, local governments, and NGOs, we have 
taken the initiative in developing a framework to prioritize the purchasing of 
products and services that represent less environmental load.
steelworks receive the plan, and manage the progress of each single 
product, while keeping in mind the productivity of each manufacturing base. 
These units work for optimal processing from manufacturing to shipment, 
and delivering products as scheduled.
Toxic material 
management concerning 
quality assurance
https://www.nipponsteel.com/
en/csr/customer/support.html
Basic policy 
on equipment 
procurement
1  Compliance with laws
2  Equal opportunities
3  Building of a partnership
4  Fair disclosure of information and quick 
transaction processing
5  Consideration to resource protection and 
environmental preservation
6  Preservation of confidentiality
At present, the automobile environment is facing many changes including 
CASE, MaaS and the call for carbon neutrality, and various functions have 
become required for the vehicle body and components. Against this back-
ground, Nippon Steel is expanding the application range of NSAC technology 
for next-generation steel vehicles and is strengthening efforts to create 
value for customers and society by so doing.
p. 34
know-how, etc., improve labor productivity by using automation and predic-
tive detection, and enhance production stability and quality improvement by 
advanced production technology.
	
We will continue to make efforts for the sustainable development of 
domestic industrial logistics.
Practical training ship Reimei
3. Production
DX personnel development
NS-IoT
Manufacturing lines
Integrated
data platform
Integrated AI data
analysis platform
Common AI
operating platform
Wireless IoT sensor
utilization platform
AI application and operation
Group of platforms that realizes the data utilization processes
Data quality improvement
AI quality improvement
Feedback via AI application and operation
Catalogues and
integrated database
NS-DIG
Data collection
and linkage
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Sustainability report 2022
Sustainability report 2022
NIPPON STEEL CORPORATION
Initiatives on Production and Supply Chain Management
Initiatives on Production and Supply Chain Management

Together with Local Communities
Nippon Steel has many manufacturing bases all over Japan and are engaged in business activities rooted in local 
communities. In accordance with our attitude of maintaining harmony with local communities and society, we are 
promoting a wide range of activities, including promotion of environmental preservation, support in education and 
sports, mecenat (in French, mécénat, meaning sponsorship or patronage) of art and culture, holding dialogues with 
shareholders and investors, and coordinating with government bodies.
Environment preservation activities, jointly with local communities
Efforts to enhance dialog with shareholders and investors
Together with government and public institutions  Involvement in public policies and legal compliance
In our Basic Environmental Policy, we are committed to conducting business activities that take into account the perspective of environmental conservation in the 
community. We are promoting environmental risk management, by means such as detailed responses to different environmental risks at each steelworks, and 
environmental protection activities in partnership with the local communities.
Kashima City coastal clean-up
Suggestions on public policies, opinions as the industry, and cooperation with government
To achieve sustained growth and improve corporate value over the medium 
to long term the Company has adopted the Basic Policy for Information 
Disclosure and Dialogue with Shareholders and Investors. We strive to 
proactively provide information and cooperatively respond to questions 
raised by shareholders at the General Meetings of Shareholders. In addition, 
we regularly hold corporate briefings and plant tours, and publish interim 
reports for shareholders to promote shareholders’ understanding and 
enhance communication with them. (In fiscal 2021, we did not conduct 
plant tours, to prevent the spread of COVID-19 infections.)
	
For institutional investors we host briefings on quarterly results, 
provide visits to steelworks and research centers, and hold other events, 
to discuss our strategies, businesses, operating performance, and 
other issues. Small meetings with investors, various conferences, and 
visits to overseas institutional investors are other means for enhancing 
Participation in activities of the “Mori wa Umi no 
Koibito” NPO
In the East Nippon Works Kashima Area, we are conducting coastal 
cleaning activities in cooperation with Kashima City, Kashima City Tourism 
Association, Kashima Coast Protection Association, Kashima Junior 
Chamber, and Kashima City Construction Cooperative Association. Since the 
start of this activity in 1984, the cleaning area has been gradually expanded. 
In 2022, approximately 1,400 people participated and collected 15 tons of 
trash. (Due to the COVID-19 pandemic, the activity was suspended in 2020 
and 2021.)
	
This continued activity with residents in the community has received 
numerous awards. In April 2021, Nippon Steel’s East Nippon Works 
Kashima Area received a Medal with Green Ribbon as an Environmental 
Beautification Association.
Over the years, Nippon Steel has provided personnel to key positions of the Japan Business Federation (Keidanren) and the Japan Iron and Steel Federation 
(JISF), and through the activities of these organizations, has expressed opinions and urged them to take action on deregulation matters and the implementation 
of institutional reforms aimed at improving the Japanese economy.
	
In the local communities, we also strive to cooperate with various organizations such as the local government and the local chamber of commerce and industry.
We are also a regular corporate member of the NPO, Mori wa Umi no 
Koibito, represented by Mr. Shigeatsu Hatakeyama, a fisherman raising 
oysters and scallops in Kesennuma City, Miyagi Prefecture, who received 
the Forest Heroes award from the United Nations in 2012.
	
The NPO’s activities are based on a scientific mechanism according to 
which the ecological linkage of forests, villages and sea nurtures the bless-
ings of the sea forest. In other words, the forestation leads to an increase 
in iron-humic acid that flows down rivers, and which enriches growth of 
oysters and scallops near the river mouth. Since 2012 we participated in the 
NPO’s tree planting activity at Murone Mountain in Iwate Prefecture, which 
began in 1989. In 2022, our employees participated in the 34th round of 
tree planting activity.
Adherence to relevant laws and regulations, 
and building of an appropriate relationship with 
government and public institutions
Fair tax payment
Based on the Nippon Steel Group’s Corporate Philosophy and Code 
of Conduct, we have developed company rules and guidelines for the 
prevention of bribery of domestic and foreign public officials, compliance 
with anti-monopoly law and environmental regulations, and protection of 
personal information. We make sure that our officers and employees are 
aware of and adhere to laws and regulations and other rules.
We comply with relevant laws and regulations, and pay tax appropriately 
in all countries in which we operate. We maintain transparent, constructive 
communication with tax authorities, eliminate action that could be construed 
to be for evasion of taxes and bear fair tax burden.
 Voicing opinions on deregulation and institutional reform aimed at maintaining and improving the vitality of the Japanese economy
 Participation in public policy studies, such as infrastructure development, revision of the Corporate Governance Code, Sustainability Standards Board of Japan (SSBJ), tax reform, Digital 
Transformation (DX), workstyle reform and regional revitalization
 Recommendations on national strategy to achieve a “virtuous cycle of environmental sustainability and economic growth,” the need for policies that will strengthen the international 
competitiveness of industries, and energy policy
 Promotion of voluntary initiatives by industry to achieve Japan’s medium- to long-term targets based on the Paris Agreement (Carbon Neutral Action Plan)
 Participation in the JISF’s formulation of Basic Policies for the Japanese Steel Industry on Carbon Neutral in 2050
Activities in the support of art, music, and sports as social contribution
Activities in the support of music
Activities in the support of sports as a social contribution
Nippon Steel is active in corporate philanthropy activities in the support of 
music, particularly through the work of the Nippon Steel Arts Foundation. 
The Foundation manages Kioi Hall in Tokyo, organizing performances of its 
resident chamber orchestra and promoting Japanese traditional music. We 
also give the annual Nippon Steel Music Awards, established in 1990, to 
young classical music performers and to those who have contributed to the 
development of classical music.
Nippon Steel manages or supports sports teams in the local communities 
of its steelworks. These include a judo club, which has produced Olympic 
medalists; baseball teams, which have sent many of its players to the 
professional leagues; a football team, a rugby team, and a volleyball team. 
All of these teams also contribute to their local community through such 
various activities as sports classes for children, coaching of junior teams, 
and making our athletic facilities available to local residents for games and 
training. Together with local residents who support our teams, we strive to 
provide renewed vigor to our local communities, and at the same time to 
support their healthy lifestyle.
communication. Explanatory meetings on DX and other measures are also 
held as appropriate.
Visit to steelworks
Support for educational activities
Monodzukuri and environmental education
Internship programs and the endowment of a uni-
versity course
With the aim of showing the joy of product-manufacturing, Nippon Steel 
holds demonstrations on “tatara ironmaking” — Japan’s indigenous 
ironmaking technique. Every year we are host to approximately 130,000 
people at our plant visits in order to make Nippon Steel as well as the 
steel industry to be better understood. In fiscal 2021, the COVID-19 
pandemic made it difficult to undertake these programs. We therefore sent 
lecturers from steelworks or branch offices to special occasions in the 
local communities, upon requests of the latter. In addition, on-line learning 
sessions were provided at the East Nippon Works Kashima Area and we 
accepted teachers for the on-line private company training program.
For many years, Nippon Steel has been internship opportunities to students 
to help them learn our business and gain some work experience. We also 
endow university courses, which are related to technological innovation (one 
of our business strategies) and “carbon neutrality in 2050” objective.
Class with a lecturer from Nippon Steel (Nagoya)
5. Together with 
local communities
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NIPPON STEEL CORPORATION
Together with Local Communities
Together with Local Communities

Corporate Governance
Nippon Steel has adopted a company structure with an Audit & Supervisory 
Committee. This is because Nippon Steel strives to speed up management 
decision-making, enhance discussions on the formulation of management 
policies and management strategies at the Board of Directors by prioritizing 
items to be discussed, and strengthen the supervisory function of the Board 
of Directors.
Basic policy of corporate governance
Accounting audit
Reporting
Delegation of part of the 
decisions regarding execution of 
important operations
Internal Control &  
Audit Division
Directors, Executive Officers, 
and General Managers in 
Charge
(Autonomous Internal Control)
Nomination and 
Compensation Advisory 
Committee
Companywide Committees
Board of Directors
Accounting Auditors (Auditing Company)
Whistleblower System
Cooperation 
(information 
sharing)
Examination/
Response
Proposing/Reporting
Selection/Dismissal of 
Representative Directors, 
etc./Supervision
Audit
Discussion/
Reporting
Reporting
Giving 
guidance 
and advices
Reporting
Cooperation 
(information 
sharing)
Election/Dismissal
Election/Dismissal
Election/Dismissal
Evaluation
Reporting
Audit/Supervision
Deliberation/
Review
Reporting
Giving guidance 
and advices
Reporting
Risk Management Committee
Employees
Employees of 
suppliers and 
others
(Responsible Divisions)
Cooperation 
(information 
sharing)
Corporate Policy Committee
Representative Director and Chairman
Representative Director and President
Reporting, etc.
General Meeting of Shareholders
Audit & Supervisory Committee
Director skills matrix
We believe that our Board of Directors, as a whole, must have the necessary skills and experience based on our Group corporate philosophy, medium- to long-term 
management plan, etc. The main skills and experience possessed by each Director are as presented in the table below.
Currently, the Board of Directors of Nippon Steel is comprised of 14 
members, of whom nine are Directors (excluding Directors who are Audit 
& Supervisory Committee Members) and five are Directors who are Audit 
& Supervisory Committee Members. Outside Directors account for more 
than one-third (five out of 14, including one female outside director) of all 
members of the Company’s Board of Directors.
	
By all Directors appropriately fulfilling their respective roles and respon-
sibilities, prompt decision-making is achieved corresponding to changes in 
the management environment, and multifaceted deliberations and objective 
and transparent decision-making by the Board of Directors are secured. In 
addition, Directors who are Audit & Supervisory Committee Members have 
voting rights on the Board of Directors regarding decisions on proposals for 
the election and dismissal of Directors as well as on election and dismissal 
of Representative Directors, and other decisions in general regarding busi-
ness execution (excluding decisions that have been delegated to Directors). 
The Audit & Supervisory Committee has the authority to give its opinions 
Nippon Steel has established internal control and risk management systems, 
based on autonomous activities by internal divisions and Group compa-
nies, according to the Basic Policy on Internal Control System, which was 
resolved by the Board of Directors, and the Internal Control Basic Rules. 
The Internal Control & Audit Division cooperates closely with each area’s 
functional division in charge of risk management, develops annual plans 
concerning internal control and risk management, prepares schemes for 
check and review, regularly ascertains the status of internal control across 
the entire Group, and works at continual improvement. As a whistleblower 
system, an internal consulting contact point was established to receive 
The Risk Management Committee, chaired by the Executive Vice President 
in charge of the Internal Control & Audit Division, receives regular reports 
from the Division on the development and execution status of the internal 
control annual plan, the compliance status of laws and regulations, and 
the matters related to risk management, which include adherence to the 
Conduct Code of Nippon Steel Group Company and other company rules as 
well as ESG risks, such as labor safety, workplace sexual or power harass-
ment and other abuse of human rights, environmental issues, disaster 
prevention, quality assurance, financial reporting, and information security. 
at the General Meeting of Shareholders regarding the election, compen-
sation, etc. of Directors, excluding Directors who are Audit & Supervisory 
Committee Members. This structure strengthens the supervisory function of 
the Board of Directors over management.
	
The execution of important matters concerning the management 
of Nippon Steel and the Nippon Steel Group is determined at Board of 
Directors’ meetings (held about once per month) after deliberations in 
the Corporate Policy Committee (once a week, in principle) comprised of 
the Representative Director and Chairman, Representative Director and 
President, Representative Directors and Executive Vice Presidents, and other 
members, pursuant to Nippon Steel’s rules.
	
As corporate organizations engaging in deliberations before the 
Corporate Policy Committee and the Board of Directors, there are 22 com-
pany-wide committees in total, including the Risk Management Committee, 
the Environment Management Committee, and the Green Transformation 
Promotion Committee as of April 1, 2022.
information not only from employees of Nippon Steel and the Group com-
panies, but also from their families, suppliers, and others. The contact office 
receives reports and consultation (that may be made anonymously) on a 
wide range of subjects — from violation of laws, regulations, or company 
rules to ascertaining of rules thought to be needed for operations. It is 
also positioned as one of the bodies that monitors the status of internal 
control activities, in addition to its functions on compliance and optimization 
of operations, such as to prevent accidents and violation of laws, and to 
improve operations.
The Committee then deliberates and checks the status of measures taken. 
What was deliberated and ascertained by the Risk Management Committee, 
including important risks, is reported and deliberated by the Corporate Policy 
Committee, attended by the Representative Director and Chairman and 
Representative Director and President among other members.
	
The Board of Directors evaluates effectiveness of supervision of risk 
management and internal control by receiving regular reports on mana-
gerial important risks, including those originated by the Risk Management 
Committee and the Corporate Policy Committee.
1  Corporate governance system
2  Internal control system
3  Risk management
The Nippon Steel Group is engaged in business activities based on its Corporate Philosophy — that we will pursue 
world-leading technologies and manufacturing capabilities, and contribute to society by providing excellent products 
and services. Heeding that Philosophy, the Nippon Steel Group has established a corporate governance system suited 
to the businesses of the Nippon Steel Group in order to achieve the sound and sustainable growth of the Nippon Steel 
Group and increase its corporate value over the medium- to long-term, in response to the delegation of responsibilities 
by and trust of all stakeholders, including its shareholders and business partners.
Group companies (Autonomous Internal Control)
Employees
Thorough implementation 
of compliance
Note: The check mark indicates the main skills and experience (up to four in principle) possessed by each Director, based on their career history and experience.
Name
Position
Corporate 
Planning /  
Business 
Strategy
Finance /  
Accounting, 
Monetary /  
Economy
Personnel /  
Labor Affairs /  
HR Development
Governance /  
Risk Management /  
Legal /  
Compliance
Technology /  
R&D
Sales /  
Purchas /  
Marketing
Global
Environment /  
Sustainability
Public 
Administration /  
Public Policy
Directors (Excluding Directors who are Audit & Supervisory Committee Members)
Kosei Shindo
Representative Director and Chairman
Eiji Hashimoto
Representative Director and President
Akio Migita
Representative Director and Executive Vice President
Naoki Sato
Representative Director and Executive Vice President
Takahiro Mori
Representative Director and Executive Vice President
Takashi Hirose
Representative Director and Executive Vice President
Tadashi Imai
Managing Director
Tetsuro Tomita
Director (Outside Director)
Kuniko Urano
Director (Outside Director)
Directors who are Audit & Supervisory Committee Members
Shozo Furumoto
Senior Audit & Supervisory Committee Member (full-time)
Masayoshi Murase Audit & Supervisory Committee Member (full-time)
Seiichiro Azuma
Audit & Supervisory Committee Member (Outside Director)
Hiroshi Yoshikawa
Audit & Supervisory Committee Member (Outside Director)
Masato Kitera
Audit & Supervisory Committee Member (Outside Director)
63
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NIPPON STEEL CORPORATION
Corporate Governance
Corporate Governance

Awards Received in FY20211
Award name
Sponsor
Detail
2021 Innovation Award
Schneider Electric (France)
The advanced technology of grain-oriented electrical steel sheets used in 
Schneider’s strategically important distribution transformers (Nippon Steel)
2021 Award for Excellence in Corporate 
Disclosure (27th) in Steel/Non Ferrous 
Metal Industry Category, ranked first for two 
consecutive years
Securities Analysts Association of Japan
Recognized for an increase in opportunities to disseminate information from 
the top management, and their clearer message. The Company disclosed its 
medium- to long-term management plan and Carbon Neutral Vision 2050 and fully 
explains their progress and concrete measures for achieving them. Its integrated 
report discloses non-financial information, which may lead to improvement of its 
corporate value in the medium- to long-term. (Nippon Steel)
The 68th Okochi Prize “Production Prize”
Okochi Memorial Foundation
Hot rolling technology of high-strength steel sheets by measurement and control 
adapted to harsh environments (Nippon Steel)
Environmentally Sustainable Company at the 
3rd ESG Finance Awards Japan
Ministry of the Environment
Extensive disclosure of “Risks, Business Opportunities and Strategy,” “KPI” and 
“Governance” concerning important environmental issues (Nippon Steel)
The 54th “Ichimura Prize in Industry for 
Distinguished Achievement” and “Ichimura 
Global Environmental Prize in Industry for 
Distinguished Achievement”
Ichimura Foundation for New Technology
 Ichimura Prize in Industry: Development of new brake pads for Shinkansen 
(Nippon Steel)
 Ichimura Global Environmental Prize in Industry: Development of a low-energy 
separation and recovery system for CO2 in plant exhaust gas (Nippon Steel, 
Nippon Steel Engineering, and the Research Institute of Innovative Technology 
for the Earth)
2021 MEXT Minister’s Award “Prize for Science
and Technology (Development Division)”
Ministry of Education, Culture, Sports, 
Science and Technology (MEXT)
Development of the NSafeTM-Auto Concept, an ultra-high-strength steel sheet 
processing technology that supports the evolution of automobiles (Nippon Steel)
2022 Steel Sustainability Championship
World Steel Association
Sustainability activities such as measures demonstrating strong environmental 
commitment, and measurement and disclosure of various data based on 
environmental policies; and publication of Sustainability Reports to stakeholders 
(Nippon Steel)
Red Dot Design Award 2022
Nordrhein Westfalen Design Center 
(Germany)
Contributing to urban development and to the improvement of the living 
environment through products including TranTixxiiTM titanium which enables good 
design appearance (Nippon Steel)
2022 National Commendation for Invention
Japan Institute of Invention and Innovation
Invention of a hull structure with excellent collision safety using high-ductile steel 
plates (Nippon Steel, National Institute of Maritime, Port and Aviation Technology 
and Imabari Shipbuilding Co.)
Contact
Inquiries on the Sustainability Report 2022
Nippon Steel Corporation
Contact: Environment Division
TEL: +81-3-6867-2566    FAX: +81-3-6867-4999
Or go to the “Contact Us” page of Nippon Steel’s website: https://www.nipponsteel.com/en/contact
Copyright 2022 NIPPON STEEL CORPORATION. All rights reserved.
Corporate profile (as of March 31, 2022)
Name
Nippon Steel Corporation
Head office
2-6-1 Marunouchi, Chiyoda-ku, 
Tokyo 100-8071, Japan
Establishment
April 1, 1950
President
Eiji Hashimoto
Capital
419,524 million yen 
(466,270 shareholders)
Stock listings
Tokyo, Nagoya, Fukuoka, Sapporo
Number of 
employees
106,528 (consolidated)
Group 
companies
378 consolidated subsidiaries
105 equity-method affiliates
External evaluation
Nippon Steel Corporation has been selected as a constituent of many indexes including the MSCI Japan ESG Select 
Leaders Index, FTSE Blossom Japan Index, FTSE Blossom Japan Sector Relative Index, and S&P/JPX Carbon Efficient 
Index (adopted by the Government Pension Investment Fund, GPIF) as well as the FTSE4Good Index Series and MSCI 
Japan ESG Leaders Indexes, which are widely used stock indexes. Nippon Steel was also selected as Environmentally 
Sustainable Company at the 3rd ESG Finance Awards sponsored by the Ministry of the Environment in fiscal 2021.
1 Includes some awards received in April–June 2022
FTSE4Good 
Index Series
FTSE Blossom 
Japan Index
FTSE Blossom 
Japan Sector 
Relative Index
FTSE Blossom Japan 
Sector Relative Index
FTSE
FTSE4Good
MSCI Japan 
ESG Select 
Leaders Index
Ministry of the Environment
Environmentally Sustainable Company at 
the 3rd ESG Finance Awards sponsored
MSCI ESG 
Leaders Indexes
THE INCLUSION OF NIPPON STEEL CORPORATION IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, 
TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, 
ENDORSEMENT OR PROMOTION OF NIPPON STEEL CORPORATION BY MSCI OR ANY OF ITS 
AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX 
NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.
Publication date
October 2022
Independent Assurance Report
Independent Assurance Report
To the Representative Director and President of Nippon Steel Corporation
We were engaged by Nippon Steel Corporation (the “Company”) to undertake a limited assurance engagement of the environmental performance 
indicators marked with 
 (the “Indicators”) for the period from April 1, 2021 to March 31, 2022 included in its Nippon Steel Sustainability 
Report 2022 (the “Report”) for the fiscal year ended March 31, 2022.
The Company’s Responsibility
The Company is responsible for the preparation of the Indicators in accordance with its own reporting criteria (the “Company’s reporting criteria”), 
as described in the Report.
Our Responsibility
Our responsibility is to express a limited assurance conclusion on the Indicators based on the procedures we have performed. We conducted 
our engagement in accordance with the ‘International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements other than 
Audits or Reviews of Historical Financial Information’ and the ‘ISAE 3410, Assurance Engagements on Greenhouse Gas Statements’ issued 
by the International Auditing and Assurance Standards Board. The limited assurance engagement consisted of making inquiries, primarily 
of persons responsible for the preparation of information presented in the Report, and applying analytical and other procedures, and the 
procedures performed vary in nature from, and are less in extent than for, a reasonable assurance engagement. The level of assurance provided 
is thus not as high as that provided by a reasonable assurance engagement. Our assurance procedures included:
 Interviewing the Company’s responsible personnel to obtain an understanding of its policy for preparing the Report and reviewing the 
Company’s reporting criteria.
 Inquiring about the design of the systems and methods used to collect and process the Indicators.
 Performing analytical procedures on the Indicators.
 Examining, on a test basis, evidence supporting the generation, aggregation and reporting of the Indicators in conformity with the 
Company’s reporting criteria, and recalculating the Indicators.
 Visiting the Company’s Kyushu Works Yawata Area selected on the basis of a risk analysis.
 Evaluating the overall presentation of the Indicators.
Conclusion
Based on the procedures performed, as described above, nothing has come to our attention that causes us to believe that the Indicators in the 
Report are not prepared, in all material respects, in accordance with the Company’s reporting criteria as described in the Report.
Our Independence and Quality Control
We have complied with the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, 
which includes independence and other requirements founded on fundamental principles of integrity, objectivity, professional competence and 
due care, confidentiality and professional behavior. In accordance with International Standard on Quality Control 1, we maintain a comprehensive 
system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards 
and applicable legal and regulatory requirements.
/s/ Kazuhiko Saito
Kazuhiko Saito, Partner, Representative Director
KPMG AZSA Sustainability Co., Ltd.
Tokyo, Japan
October 13, 2022
Notes to the Reader of Independent Assurance Report:
This is a copy of the Independent Assurance Report and the original copies are kept separately by the Company and KPMG AZSA Sustainability Co., Ltd.
65
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Independent Assurance Report / Awards Received in FY2021