Nippon Light Metal Group

More comfortable, more airily and more aluminiumM o r e c o m f o r t a b l e , m o r e a i r i l y, a n d m o r e a l u m i n i u m

CONTENTS
Why Aluminium?………………………………………………………… 02

Aluminum, with its indefinite potential, colors various scenes of people’s lives.

CONTENTS: Editorial policy…………………………………………… 03

With aluminium, our one-step-forward technology will ensure more comfortable and airily future living.

Message from the CEO…………………………………………………… 04
CSR Promotion Programs of the NLM Groupand Performance Evaluations……………………………………… 06

Operating Governance…………………………………………… 08

W h y, A l u m i n i u m ?

Human Rights………………………………………………………… 11
Labor Practices……………………………………………………… 14
Environment………………………………………………………… 15
Fair Operating Practices…………………………………………… 19
Consumer Issues…………………………………………………… 20
Community Involvement and Development…………………… 21
Third-Party Opinion……………………………………………………… 23

Lightweight properties

SafetyCorrosion resistance

Recyclability

Aluminium is a quite lightweight metal.

Aluminium is harmless and odorless,

Aluminium is highly resistant to corrosion.

Aluminum is especially easier to recycle

Its specific gravity is one-third of iron andthereby not damaging human body and

It is used particularly in the areas ofthan any other metals and can becopper. Transportation and construction

earth. Due to these features, aluminium

civil engineering and construction to

manufactured into something equivalentindustries are in great need for weightis widely used for packaging materials

achieve infrastructural lifelong duration

to new bare metal for its quality.

Editorial Policy

saving for realization of an energy-saving

for food and drugs, beverage cans, andand maintenance for roads and such.

Aluminium is a highly excellent material■ Introductionsociety. Thus, aluminium is used as its

medical equipment.

Aluminium continues to contribute to ourfor its effective utilization of resources.

solution.

future society.

This report is intended to describe the NLM Group’s views and approaches regarding CSR
to all stakeholders in an easy-to-understand way and to obtain their understandings.
■ Reference Guidelines
This report used “Environmental Reporting Guidelines (2012)” prepared by the Ministry of
the Environment and “GRI (Global Reporting Initiative) Guidelines (2006)” as references.
■ Period covered
Data collection period for this report is from April 2013 to March 2014.
*Data prior to and after this period is also partially included.
■ ScopeUnless otherwise specified, Nippon Light Metal Holdings Co., Ltd. and its consolidated
subsidiaries are covered. A total of 74 companies.
However, for the section, “Environment,” Nippon Light Metal Holdings Co., Ltd. and its
consolidated subsidiaries are covered. A total of 20 companies.
■ Modifications from the previous report
The report was modified to go along with the core subjects of ISO26000. The NLMGroup recognizes various social challenges described in the core subjects of ISO26000
and promotes CSR activities to contribute to the solution of those challenges. Your
opinions and feedback on the NLM Group’s activities for each challenge would be greatly
appreciated.
■ Publication period
August, 2014 (Next: scheduled in August, 2015, Previous: August, 2013)02

NLM Group CSR Report 2014

NLM Group CSR Report 2014

03

MESSAGE FROM THE CEOMESSAGE FROM THE CEO

The NLM Group is committed todevelop its human resources capableof addressing social problems.
Nippon Light Metal Holdings Company, Ltd.
President and Chief Executive Officer: Takashi Ishiyama

Smooth launch of a new mid-term management plan
I feel a sense of economic recovery rising with growing expectations for the Abenomics to overcome deflations and in preparation for the major

when speculating further on more problems happening beyond our supply chains. However, we want to tackle those problems with

event, Tokyo Olympics and Paralympics scheduled to be held in 2020. Our corporate efforts make a difference in order to return to a growth track.

patience.

In this context, we, the NLM Group, has launched “a new mid-term management plan” which was implemented effective FY 2013. We strive toimprove our corporate value by having the following core themes: “Business development through strategies by regions and categories”, “Creation

In order to do so, I believe that human resources who are capable of addressing such problems are critical.
“Reinforcement of business structure”, one of the three themes of the “new mid-term management plan”, includes the “human resourceof a growth driver through new product and new business”, and “Reinforcement of business structure”. At its first year of the plan, despite

development and its effective use”. These “human resources”, I believe, are the “human resources” who understand such social problems in thethe remaining challenges in some part, we made a satisfactory start by achieving dividend increase. In the wake of our transition to a holdings

world and the communities and take responsibilities for such problems. Moreover, together with promoting the diversity management, I want to put

company structure, we plan to maximize our consolidated earnings by strengthening earning capacity of overseas offices and reinforcing our groupthese “human resources” in use on a global level.

coordination in the future as well.

Strengthening Compliance
Our corporate value

We consider compliance, a foundation of CSR, to be the basic management principle and so we have continued with building compliance awareness.

Our corporate value is founded on corporate social responsibility. We consider our corporate value to be developing the environmentally-friendly

However, we had an on-site inspection at Nippon Light Metal Co., Ltd. by the Japan Fair Trade Commission in this April on suspicion of antitrust

products that make the best use of potential of aluminium and to be running the diversity management that are sensitive to various differences inact violations regarding the trading of polyaluminium chloride or aluminium sulfate. We sincerely and seriously accept this fact that the on-site

nations and ethnic groups associated with our overseas presence.

inspection was conducted for one of our subsidiaries and continue to work on strengthening and fulfilling our compliance systems while cooperating

Furthermore, “labor practices” and “human rights” in countries and communities are important subjects.

fully with the inspection.

Aluminium consumption in the developing countries is said to be as twice as the increase rate of GDP. In many cases, thealuminium industry expands drastically along with economic development in the countries and the communities. This gives us

In this year’s CSR report, we put together our challenges and achievements based on ISO26000. New challenges are emerging from there as well.

more chances to witness the reform period of those countries and communities. Then, we need to steadily evaluate what we, as a

We would appreciate your straightforward opinions.

corporation, are capable of doing and what we should not do. We consider that our corporate value would no longer exist if the cost
reduction ends up sacrificing worker’s health and safety in the developing countries. It is not an easy task to address the problems

04

NLM Group CSR Report 2014

August, 2014

NLM Group CSR Report 201405

Nippon Light Metal Group CSR Promotion Plan and Performance Evaluation (FY2014)

ISO26000 Core Subject

Activity theme

Operating GovernanceRaise awareness of CSR

Major activities in FY2013

Evaluation:

Completed

Made progress

Made partial progress

Evaluation

KPI

Incomplete*: Corresponding to the next fiscal year

*10

Number of accesses: 7,652

Promote CSR through intranets, in-house newsletters and so forth

Hold CSR Committee meetings

Number of attendees: 43 for the 5th meeting, 42 for the 6th meeting

Manage the CSR committee

Operate a Hotline*2

Number of reports: 10

Operate a Hotline

Build compliance awarenessHold all-hands compliance meetings periodically

Number of meetings held: 1,623 Number of participants: Approx. 17,136

Hold all-hands compliance meetings periodically

Implement individualized training programs regarding anti-monopoly Act*3, and export control systems, and so forth

Number of trainees: To be implemented from FY2014

Implement individualized training programs regarding Anti-monopoly Act, export control systems, and so forth.

Conduct training sessions on contracts

Number of attendees: 354

Conduct training sessions on contracts

Implement workshops on Act on the Protection of Personal Information

Number of attendees: To be implemented from FY2014

Implement workshops on Act on the Protection of Personal Information

Strengthen the systems to ensurecompliance with laws and regulations

Ensure regularly that the systems are carried out in order to ensure compliance with laws and regulations (full check)Number of law violations: 0

Ensure regularly that the systems are carried out in order to ensure compliance with laws and regulations (full check)

Timely disclosure*1

Timely disclosure, IR activities, and participation in surveys by external organizations

Enhance compliance training programs

Establish a personal information protection system
Provide information via annual reports, fact books and other documents

Provide information through annual reports, fact books and other materials
Number of attendees: 89 (General Meeting of Shareholders), 70 (results briefing), 70 (mid-term management plan briefing)

Conduct small meetings*4

Number of meetings held: 1

Conduct small meetings

Number of briefing sessions held: To be implemented from FY2014

Conduct business briefing sessions for corporate investors

Number of tours held: *Conduct factory tours for corporate investors

Use websites more effectively for information disclosure

Human Rights

Promote work-life balance and diversity

Percentage of females in managerial positions: 2.4%

Actively promote female employees to managerial positions

Employment rate for people with disabilities: 1.91% (Nippon Light Metal Co., Ltd. alone)

Prepare to establish special subsidiary companies for employment of people with disabilities

Actively enhance cross-cultural and human rights training programs

Number of trainees: Approx. 178

Actively enhance cross-cultural and human rights training programs

Improve disaster preparedness

Labor Practices

Changes for globalization

Occupational safety and health activities

Environment

Improve environmental management systems
Reduce environmental burdens
Reduce greenhouse gases
Compliance with relevant laws
Approach to biodiversity
Fair Operating Practices

P19-21

Conduct a combined drill by the disaster response headquater

Compliance with relevant laws

Consumer issues

Use websites more effectively for information disclosure
Conduct female employees‘ training programs to promote women’s successPrepare to establish special subsidiary companies for employment of people with disabilities

Conduct a disaster prevention drill for a major earthquake and Tsunami and review the stockpile installation system
Prepare a BCP*5 as a model establishment

Community
Involvement
anddevelopment

Expand contents of the General Meeting of Shareholders, results briefing, and mid-term management plan briefing

Disclose information to a global audience
Number of accesses: 472,518

Conduct female employees‘ training programs to promote women’s success

Changes for globalization

Timely disclosure, IR activities, and participation in surveys by external organizations

Expand contents of the General Meeting of Shareholders, results briefing, and mid-term management plan briefing

Conduct factory tours for investors

P16-18Establish a personal information protection system (Enhanced application)
Number of timely disclosures: 5 (Settlements of accounts), 9 (Decisions), and 1 (Occurred items)

Disclose information to a global audience

Conduct a general disaster prevention drill
Number of BCPs: 0

Ensure the Occupational Health and Safety Law and related laws are complied with

Ensure the Industrial Safety and Health Act and related laws are complied with

Grasp human resource development programs in overseas subsidiaries

Completion rate for training implementation: *Grasp human resource development policies and measures in overseas subsidiaries

Enhance language studies and internship programs overseas

Number of trainees: Approx. 12

Enhance language studies and internship programs overseas for globalized human resource development

Grasp changes to labor laws and practices in each country and promote proper labor practices

Number of countries to be inspected: *Grasp changes to labor laws and practices in each country and promote proper labor practices

Implement and operate the safety and health management system (SMS)

Number of certified offices: 5

Implement and operate the safety and health management system (SMS)

Provide in-house education and training on safety & health and human risks

Number of trainees: Approx. 750
Number of attendees: 51

Strengthen environmental audits

Number of sites audited: 16 sites

Strengthen environmental audits

Gather information from overseas subsidiaries; assist in setting up Environmental Management Systems (EMS)

Completion rate for preparation of foreign sites: *Gather information from overseas subsidiaries; assist in setting up Environmental Management Systems (EMS)

Reduce emission of substances controlled under the PRTR*6

Discharging moving of substances controlled under the PRTR: 579 tons

Reduce emission of substances controlled under the PRTR*6

Manage progress of the new voluntary action plan

GHG release amount: 687,000 tons -CO2

Manage progress of the new voluntary action plan

Manage progress of the energy saving action plan

Amount of energy for use: 12.8 PJ

Manage progress of the energy saving action plan

Completion rate:*

Ensure that the Water Pollution Control Act, which was amended in June 2014, and will be enforced from January 2017, is made well known and carried out

Implement group’s safety and health convention

P23-26

Strengthen the systems to ensure compliance with governing laws and regulations (Laws related to water and air)Ensure that the Water Pollution Control Law, which was amended in June 2014, ans will be enforced from January 2017, is made well known and carried out

Collaborate with biodiversity research

Establish biodiversity protection guidelines

Disseminate the CSR procurement policy within the group

Number of audits: To be implemented from FY2014

Conduct supplier surveys on CSR-oriented procurement

Number of companies covered: 174 companies

Conduct supplier surveys on CSR-oriented procurement

Number of audits: To be implemented from FY2014

Conduct supplier audits

Manage and utilize a new purchasing system

Disseminate the CSR procurement policy within the group

Manage and utilize a new purchasing system

P27

Revise master transaction agreements

Master transaction agreement execution rate: *Revise master transaction agreements

Conduct briefing sessions on the “Act against Delay in Payment of Subcontract Proceeds to Subcontractors”

Number of trainees: Approx. 140

Conduct briefing sessions on the “Act against Delay in Payment of Subcontract Proceeds to Subcontractors”

Strengthen the Customs Brokerage Control systems

Prevent transactions with antisocial forces

Conduct monitoring activities with respect to new and existing suppliers

Strengthen quality management system

Improve operation of quality management system (QMS)

Develop quality assurance systems

Provide in-house education and training on safety & health and human risks

Implement group’s safety and health convention

Strengthen the systems to ensure compliance with governing laws and regulations (Laws related to water and air)

P22

Encourage personnel to obtain certifications in safety technology

Encourage personnel to obtain certifications in safety technology

CSR-oriented procurement

Compliance with relevant laws

Prepare a BCP
Ensure the Labor Standards Act and related laws are complied with

Ensure the Labor Standards Act and related laws are complied with

Strengthen the Customs Brokerage Control systems
Number of newly registered suppliers: 7

Conduct monitoring activities with respect to new and existing suppliers
Improve operation of quality management system (QMS)

Strengthen quality assessment at overseas subsidiaries

Number of offices with quality assessment (domestic/international): 29 companies, 48 offices

Strengthen quality assessment at overseas subsidiaries

Improve the level of prior evaluations (DR*7 and Examination meetings*8) before product launch

Number of review meetings held: 74

Improve the level of prior evaluations (DR*7 and Examination meetings*8) before product launch

Number of workshops

Implement the program for quality assurance skills improvement

Compliance with relevant laws

Establish a system to grasp information on and control contained chemical substances

Indicate proper use of products

Establish guidelines on preparation of product catalogues and revise as needed

Number of people trained : To be held from FY2014

Educational and cultural contributions

Provide support to educational and research institutions and cultural activities in each region

Yen (Social Contribution Accounting base): Approx. 95 million yen

Provide support to educational and research institutions in each region

Social contribution

Conduct aggregate calculations of social contribution accounting*9

Coverage rate of a search (sales amount): *Improve accuracy of social contribution accounting and enhance its coverage (especially overseas bases)*1 Timely disclosure: A requirement concerning disclosure of material corporate information that is imposed by stock exchange to listed companies to maintain fair stock prices and protect
investors.
*2 Compliance hotline: A whistleblowing system instituted by the Nikkei Hotline Regulations. The compliance hotline allows one to discuss incidents of violations of laws, internal regulations,management policy or compliance code with expert staff when it is difficult to discuss such incidents with his or her superiors or colleagues.
*3 Anti-monopoly Act: An acronym for Act concerning Prohibition of Private Monopoly and Maintenance of Fair Trade*4 Small meeting: A small-size meeting in which corporate’s executives mainly exchanges questions and answers with analysts and fund managers*5 BCP: An acronym for business continuity plan. A BCP lays down recovery procedures for personnel, equipment, raw materials, and other matters in preparation for natural disasters, terrorist
attacks, and other emergency situations that make it difficult to continue normal business operations.

NLM Group CSR Report 2014

Reference page

Strengthen the compliance system

More effective communication

06

Action plan for FY2014

Promote CSR through intranets, in-house newsletters and so forth

Nippon Light Metal Group CSR Promotion Plan and Performance Evaluation

A star mark (★)indicates newly implemented activities.

P28

Establish a system to grasp information on and control contained chemical substances
Conduct a training for preparers of product catalogues, etc.
P29-30*6 PRTR: An acronym for Pollutant Release and Transfer Register. Under the PRTR system, enterprises are required to report emissions for listed substances to government agencies annually to
reduce emission of substances that pose environmental risks.
*7 DR: An acronym for Design Review. The purpose of DR is to review specifications, design documents, programs, products and other deliverables at each phase from viewpoints of outsiders (sales,
procurement, manufacturing, quality assurance staff, etc.)*8 Examination meeting: A meeting to examine product safety, legal compliance, and quality assurance at the time of making changes to work process that affect quality as well as before new
product launch.
*9 Social contribution accounting: A tabulation of the sum expended for social contribution activities.
*10 KPI: An acronym for Key Performance Indicators

NLM Group CSR Report 2014

07

Operating Governance

The NLM Group works on the development of its corporate governance systems capable of making the most use of its

Internal Control System

CSR promotion system

The NLM Group is intended to comply with laws, manage risks in its
business process, streamline its operation, and prepare fair financial
reports, and works on further enhancing the internal control system.
The Group also works toward ensuring legality and efficiency of its
business operation as well as improving and reviewing the systems
using examples from the opinions from Board of Auditors andoutside directors.
Furthermore, the NLM Group appoints a responsible official for
its group companies and departments to promote the maintenanceand improvement of the internal control systems, thereby making
continuous improvements.

CSR committee
The NLM Group is intended to enhance CSR activities throughout
the entire group and thereby having a CSR committee in place. The
CSR committee appoints the CSR officer from the Nippon Light
Metal Holdings Co., Ltd. to be a chairperson, and also consistsof CEOs from major group companies and responsible officials
from each department. The CSR committee holds its meetings
twice a year to discuss and determine the NLM Group’s CSR
activity promotion programs in addition to exchanging and sharing
information on the policies for CSR promotion.

Operating Governance

OPERATING GOVERNANCE

organizational strength based on the understandings that its corporate value and obligations for social responsibilities are
realized only through its strong corporate governance.
[Governance Structure Chart]
General Meeting of Shareholders
Appointment/removal

Board of Directors

Audit reports

Directors/ Outside Directors

Appointment/removal

Accounting audit

President and CEOGroup Executive Committee

Appointment/
removal• Compliance Committee

Officers• CSR Committee• Quality Committee

Operations, subsidiaries
and affiliates

Information exchange• Environment Committee

Risk Management

Internal audit

Reports andproposals

Statutory auditor audits

Auditors
Outside auditors

Accounting Auditor

Audit reports

Appointment/
removalBoard of auditors

Appointment/removal

Information exchange

Central CSR and
Audit Office
Audit report/dialogue

Operating Governance
The NLM Group adopts a holding company structure in its business
operation and places its group companies under the umbrella of its
holding company, Nippon Light Metal Holdings Co., Ltd.
Nippon Light Metal Holdings Co., Ltd. has its own Board ofAuditors and aims at strengthening the corporate governancesystems as follows:•H ire five outside board members. Designate four of them as
independent board members.
 et the term of for directors to be one year
•S
• Introduce the officer system and separate the management
supervision from the business execution.

Holding of IR briefing session
Nippon Light Metal Holdings Co., Ltd. announces its earnings
reports quarterly through Tokyo Stock Exchange as well as
through mass media companies based on the disclosure rules. The
CEO, himself, provides explanation regarding the earnings andmanagement policies during this past earnings announcements
and the second quarterly earnings announcements. The earnings
presentation materials are available on the website.
Additionally, the Company strives to follow its fair disclosure*rules, arranges the small meetings for corporate investors, conducts
individual interviews throughout the year, and also provides its top
management with feedback as needed based on the opinions given.

Group Executive Committee
CSR Committee
Central CSR and Audit Office

Negligence oftimely disclosureof information

CSR Group

CSR Promotion Division

Group company

Group company

Group company

Health and
Safety issues

Toyo Aluminium K.K.

Group company

Naturaldisasters andaccidents

Toyo Aluminium Business Group

Nippon Light Metal Company, Ltd.

Group company

Major risks

Environmental
issuesGroup company

Leaks ofcorporate data
Secrecy

Product
and Service
Defects

Group company

NLM Group CSR Report 2014

Nippon Light Metal Holdings Company, Ltd.

Group company

08[CSR promotion system structure of the NLM Group]

Nippon Light Metal Business Group[Major risks]

Export control
systems

Communication with shareholders and investors
Dialogues with shareholders through shareholders meetings
Nippon Light Metal Holdings Co., Ltd. considers the general
meetings of the shareholders as a valuable scene where the
top management is able to have a direct dialogue with all theshareholders. The Company wants to respond to the shareholders’expectations by working toward continued redistribution of profits
and growth of its corporate value.
Visual images and narration work are used in the meetings inorder to better explain the content of the proceedings. Also, in orderto gain understandings of the matters to be reported and resolved
as quickly as possible, internet is used for information disclosureand voting through internet as well as the voting.

In order to address various risks surrounding its businesses, the
NLM Group is committed to steadily increase corporate value by
putting in place appropriate controls and practices in harmony with
the Group’s business strategies. The NLM Group has identified eightrisks requiring group-wide, comprehensive management as “majorrisks”, and designated organizations in charge of risk management.
The Group checks the status of these major risks by interviewing
the directors in charge once every half-year period and holding
monthly meetings and works on reducing risks.
During FY2013, “Personal Information Protection for applicants”,“General disaster-prevention drills”, and “comprehensive checks on
product catalogs, etc.“ were conducted.

CSR leader and CSR promoter
The NLM group assigns CSR leaders and CSR promoters for its
group companies or departments. The activities by group companies
or departments are significant in order for the entire group topromote its CSR activities. The CSR leaders and CSR promotersassume the roles for governing and promoting the CSR activities bygroup companies or departments.

Information
system issues

IR briefing session● CSR Leader*Fair Disclosure: refers to a fair disclosure of information and is something that must
be promptly disclosed to general investors in the event that a corporation divulges
undisclosed and important information to specific market participants.

[Year-end dividend per share (March)]
Nippon Light Metal Company, Ltd. Nippon Light Metal Holdings Company, Ltd.
Year

2011

2012

2013

2014

Yen

2

2

3

4

Future efforts● CSR Promoter

The Group, as a governed corporation, considers that its
commitment to governance, internal controls, and risk management
should be further enhanced with its business expansion abroad,while respecting structures and systems suitable for each country
and region.

NLM Group CSR Report 201409

OPERATING GOVERNANCE

HUMAN RIGHTS

Operating Governance

Human Rights

The NLM Group, with self-awareness as a global corporation, will give extra considerations to any circumstances andCorporate Profile

situations jeopardizing human rights in the scope of its businesses.
Capital: 402,829 million yen (consolidated)

Corporate Name: Nippon Light Metal Holdings Company, Ltd.
(abbr. The NLM HD)

Number of Employees: 10,438 (consolidated)*All data as of FY2013 or March, 2014.

Certification Code: 5703

Efforts for Human Rights

Headquarter Office: 2-2-20 Higashi Shinagawa, Shinagawa-ku, Tokyo
Date of Foundation: October 1, 2012
Sales trend (Consolidated)
NLM

5,000

Trend of Current Earnings (Consolidated) (100 million yen)(100 million yen)

NLM Holdings

4,000

NLM Holdings

NLM

120

150

3,000

NLM Holdings

Toward a workplace encouraging active participation by diverse human resources

80

100

2,000

40

50

1,000
0

NLM

200

Trend of Current Net Earnings (Consolidated) (100 million yen)

2009

2010

2011

2012

0

2013

2009

2010

2011

2012

0

2013

2009

2010

2011

2012

Business Summary
The NLM Group, an all-round manufacturer of aluminium, supplies various products in a wide range of market.
Department

Major products

Alumina, Chemicals, and Ingot Business Component ratio of Sales 26.2%■ Sales

120,000■ Trend of Operating Profit

90,000(Million yen)

60,000

NLM

Sales 105,488 million yen
NLM Holdings

0

3,000

2011

Sheet and Extruded Products Business Component ratio of Sales 17.7%■ Sales

80,000■ Trend of Operating Profit

60,000(Million yen)

40,000

NLM

2012

0

0

Sales 71,274 million yen
NLM Holdings

2,000

Fabricated Products and Other Businesses Component ratio of Sales 32.8%■ Sales

160,000■ Trend of Operating Profit

120,000(Million yen)

80,000

NLM

2012

0

2013 (Operating Profit)

Sales 132,261 million yen
NLM Holdings

0

3,000

2011

Foil and Powder Products Business Component ratio of Sales 23.3%

2012

0

2013 (Operating Profit)■ Sales

120,000■ Trend of Operating Profit

80,0006,000(Million yen)

40,0003,000

NLM(Sales)NLM Holdings

NLM Group CSR Report 2014

9,000

0

2011

Car suspension Parts
Lead-free free-cutting aluminum alloy,
Rapidly solidified powder aluminum alloy extrusions,High strength high formability aluminum sheets,
Large structural elements for rolling stocks, Gate for truck cargo bodies,
Aluminum plates for semiconductor/LCD manufacturing equipment,
Foil stocks, Material for photoconductor drums,
Printing cylinders, Industrial materials,
Aluminum honeycomb panels, materials for temporary work,building materials, etc.
Automobile parts, die-casting,
Heat exchangers for automotive use, Vans, Trailers,
Wing roofs, Temperature control vans,
Anodized foil for electrolytic capacitor, clean rooms,
Commercial refrigerator and freezer panels,
Landscape engineering products, Space truss structure elements,
Plant packages for communication base stations, Disaster repository,
Carbon blocks for blast furnaces, Solar panel frames, etc.

2012

-3,0002013 (Operating Profit)2013

Fortuna Training
Females consist of only 2.4% of the management sector in the NLMGroup, which is a relatively low composition rate. This indicatesthat recruitment of female workers remains an issue. To address
this issue, the NLM Group is determined to enhance job assistancesystems for those female employees who are in their pregnancy andchild-rearing period during which turnover ratio among these female
employees rises. The NLM Group also implements awarenessraising policies for female employees.
Fortuna training (named for happiness for the company andwomen), which started in FY 2012, is something that the NLM Groupespecially puts an emphasis on. This training is intended for female
employees and their superiors to increase their organizational
strengths by utilizing the power of women. Trainees (female
employees) receive educational programs on career awareness andcareer development. Trainees then make business improvements inworkplace and provide coaching for subordinates under the guidanceof a full-time instructor. Additionally, their superiors receive thetraining on utilization and management of diverse human resources.
Various business improvements from women’s standpoint, including
reviewing of small assets, improvement of document management
work, streamlining of patent application /withdrawal, and renewal ofinternal intranet, have been developed and introduced.
In the wake of this training, an increasing number of female
employees have changed their job categories and have also been
hired as managers.

Comments from Trainee’s Superior

Seiji Tamaki

Sales 93,806 million yen

0

10

9,000
6,000

40,000(Sales)

6,000
4,000

2011

Alumina, Low soda alumina,
Aluminum hydroxide, Chemicals,
Caustic soda, Chlorides, Alloy, Wire, etc.

2013 (Operating Profit)

20,000(Sales)

9,000
6,000

30,000(Sales)The NLM Group thus far has dealt with many human rights issues such as sexual harassment and power harassment surrounding its employee
management.
Furthermore, during the recent years, the NLM group has expanded the business activities through supply chains to meet social demand, thereby
striving to understand problems not only domestically but internationally. Although these efforts have only just begun, the NLM group continues toplace emphasis on human rights issues from here on.

(Trainee: Sayaka Fujiwara)
Nippon Fruehauf Co., Ltd.
Aluminum foil, Aluminum foil for electrolytic capacitors,
Antennas for IC cards/tags, Powder and paste,
Solar panel back-sheets,
Conductive inks for solar cell electrodes, etc.

Topic for improvement: Reviewing of internal request
forms and travel allowances
I feel that the trainee has gained confidence and become
proactive in everything she does by going through a process of“think by yourself, involve others, overcome challenges, andachieve results” through this training program. Not only thetrainee’s but also the entire department’s involvement finallyreinforced its vector and effectively revitalized the organization.

Practical Training at Special-Needs School
The NLM Group not only takes multiple approaches to promote
employment of people with disabilities but implements training tochange awareness among those who hire them.
One of the practical trainings includes interaction between
people with disabilities and new hires in comprehensive work. With
efforts from eight special-needs schools in Shizuoka Prefecture,practical trainings were offered in these schools. It was our hopethat studying about disabilities and spending time with students
with disabilities would not only enhance cooperation with people
with disabilities but also make future leaders to promote diversity in
our human resources.

Comments from Trainee

Hayato Okahata
Nikkeikin ACT Co., Ltd.

My interactions with children with disabilities changed myunderstanding of “diversity”. I was impressed that everybody
has amazing individualities, for example one child listens toothers sincerely or some other child facilitates the juniors, andthe school teaches them to enhance such individualities.
I consider that a method I learned through this training, whichis to “find positive qualities in others”, serves as an important
way of thinking for my own career.

NLM Group CSR Report 2014

11

HUMAN RIGHTSHuman Rights

opportunity to interact with local people in equal relationship. The[Number of employees by country/region]

Employees

Japan

Asia

U.S./Europe

Total

Full-time directors

276

45

6

327 *1

Managerial positions

1,308

150

36

1,494 *2

Regular

Male

6,259

1,044

209

7,512

Employee

Female

1,003

397

32

1,432

8,570

1,591

277

10,438Total*1. The percentage of female in director positions is 0%.
*2. The percentage of female in managerial positions is 2.4%.

Participation in this project entitles a company to voluntarily run

status as a trainee have broadened my perspective. Thus, I feel

optional drug tests including pre-employment urine tests and healththat increasing the globally competent employees would be a big

checks by the third party. In the event that drug use is detected, theadvantage for the NLM Group’s growing globalization.

company would support such employee’s return to work by providing
a paid rehabilitation program for about two weeks. In cases if thecompany discloses the information on drug user(s), the company

Recruitment of President from Locally Hired Employee
comprehensive skills among local employees employed at its

Nippon Light Metal Co., Ltd. Non-Consolidated.
2.07
1.53

1.92

1.91

1.28

overseas bases to prepare for their potential management

Toyo Aluminium K.K. Non-Consolidated.
1.94
1.58

2.09

2.05

1.48

abuse.

friendship I developed and the culture I learned only through my

Nikkei MC Aluminium Co., Ltd. is committed to improving[Employment Rate of People with Disabilities Changes]

responsibilities in the future.
Nikkei MC Aluminium Co., Ltd., a locally-incorporated company inwill be in breach of law for invasion of human right and privacy.
The Company believes that its proactive involvement in such

2014

2010

2011

2012

2013

2014

Responsibilities as a Global Company

drug problems.
*White Factory Project (Drug-Free Workplace Project): This project is intended
to raise awareness for prevention of and solution for drug abuse among employers andemployees and to provide continuous support for workplace, family and communityand community.
Global Training
The NLM Group prepares various programs for understanding social
problems in the world and cultivating human resources toward theiractive participation at a global level. For example, employees learn
business standards in the world by interacting with other companies
and receiving overseas training through the Management Training
Program (approximately 119 employees participated) or acquireis available for all employees and allows employees to consult

hired its Vice President of Finance in the following year also fromwith a wide range of resources including outside lawyers, sexual

its accomplishments from years of dedication.
Through localization of management, the Company hopes tooperate country- and community-based business activities tobetter address local needs and issues. Rising morale among local

harassment hotline, and such. The hotline also handles anonymous

Interview with Vice President of Financenumber on handbooks and posters distributed to all employees andalso through intranet. The reported cases are properly handled notpolicies, Dissemination of Group Compliance Codes,” “Fostering of

to cause the reporter any disadvantages and are reported to theCompliance Awareness,” “Strengthening of Compliance Systems”

compliance committee.

other activities including “Compliance Meeting” and “Operation ofSome reported cases are disclosed through intranet or used
as a tool for the compliance meeting for the purposes of building
awareness.
Ten reports were made during FY 2013.

Two wheels of Compliance

Future Efforts

size company with only about sixty employees, I recognize all the

The NLM Group utilizes “Compliance Meeting” and “ComplianceAlminium originates from bauxite mines. Most mines are managed

employees and their family members by their faces. As a head

Hotline” as a tool to grasp the field compliance issues.

and operated by international mining majors, therefore its business

Xu HuaDirector President
Nikkei MC Aluminium Co., LtdI call my employees a family. Although we are a relatively small-of a family and as a manager, I want to create an environment

operates on an uncertain trust that there are no human rights

where employees can learn good aspects of Japanese cultures

Compliance Meetingproblems. Validating this uncertain trust is also one of the importantand grow together with Chinese cultures.

The NLM Group holds “Compliance Meeting” on a regular basis. The

business tasks for those engaged in the aluminium business.

meeting is held by each departmental unit. Each department comesup with its own themes for every meeting with considerations for
its members’ job categories, job positions, generations and such.

Drug-Free Workplace Project
Drug abuse has been one of Thailand’s major social problems.

Hiroyuki Bunno

Various organizations, groups and individuals, from government

Nikkei Panel System Co., Ltd.

sectors to private sectors, have been fighting the war on drugs.
Since the year 2008, Nikkei Siam Aluminium Ltd. has been

In the NLM Group, most of those stationed abroad take their posts

participating in “White Factory Project (Drug-Free Workplaceas managers. However, due to my trainee status, I had ample

Project) *” promoted by the Thailand Ministry of Labor and Social

NLM Group CSR Report 2014

where the hotline is easily available by clearly indicating the hotline

Internal Whistleblowing Systems (Nikkei Hotline)”.

employees participated).

12

reporting (consultation). The NLM Group creates an environment

The NLM Group is committed to implement “Group’s management

Nippon Light Metal Holdings Co., Ltd. takes its initiatives instay abroad through Global Training Program (approximately 12

Training received both at other company in Thailand and Nikkei Siam
Aluminium Ltd.

Compliance Promotion Activities

and “Enhancement of Compliance Training Education.”

global competence through practical experiences such as extended-

After the training

whistleblowing on matters related to compliance. The hotline

companies have participated thus far.

employee activity does not remain only in Japan.

on the understanding of cultures and characteristics of each country

The NLM Group has opened a “Nikkei Hotline” as internal

to eliminate drug dependency. The project started in 2001 and approximately 75,000

The NLM Group has many overseas bases, therefore areas of ourThus, the NLM Group places its emphasis on personnel

Whistle-blowing system (Nikkei Hotline)

China, recruited its President from local employees in 2011 and also

employees helps the Company offer a vibrant workplace.

development to succeed globally and to lead the entire group based

Compliance meeting

national activity would lead to a fundamental solution for Thailand’s

local employees. The Company considers this recruitment as one of
2010
2011
2012
2013
*As per data at June 1 each year

Human Rights

Welfare toward a solution to employees’ mental health and drug

Main Indicators

The meeting themes vary from workplace environment, personal
information protection, information leak, road safety, handling ofindustrial waste, to work rules, and such.
The meeting provides a good opportunity for employees to learn
about ideas from their weakly-tied colleagues and have anotherlook at them.
The meeting was held 1,623 times with 17,136 participants
during FY2013.

NLM Group CSR Report 201413

ENVIRONMENTThe NLM Group aspires to create a work environment where each employee feels safe and realizes their full potential

The NLM Group is planning to maximize the use of aluminium and reduce an environmental load through its own

while generating stable employment opportunities and ensuring appropriate compensations as fundamental practices.

manufacturing process based on the recognition that global environment is facing critical situations ever.

Efforts for Labor Practices

Environmental Management System

Ensuring health and safety is a top priority of the NLM Group’s
tasks. On top of its legal compliance, the NLM Group ensures safe
work, improves a hygienic environment, and thoroughly upholds
labor management including employees’ mental health issues,
thereby creating a workplace where employees are satisfied with.

Health and Safety Activities[Lost-Time Accident Rates]
Manufacturing industry average
Nippon Light Metal CO., Ltd. average

0.99

1.17

1.05
0.84

0.77
0.72

Personnel Development

0.98

(%)
Japan Aluminium Association average
Nippon Light Metal Group average

0.54

0.52

1.00
0.94
1.00
0.65
0.64

0.71

0.54

0.33

0.35

Coaching training
The NLM Group has implemented a coaching training since FY2001.
In order to hand down skills and to educate younger people, thecoaching training started with recruiting for supervisory positions at
manufacturing sites and providing the leadership training. Currently,
any employees in a leadership position can participate in thistraining. Approximately 300 employees have received the training
until FY 2013. The NLM Group will improve the coaching skills
among employees through providing the training to revitalize theworkplace.

Work-Life Balance
Akaruku Kenkona Shokuba (it means bright and healthy
workplace) Activities (AKS Activities)
To address increased stress on employees, Toyo Aluminium BusinessGroup implemented AKS Activities since 2007. With a goal of
ensuring health for every employee and creating a work environment
where each employee can realize their full potential, the company
facilitates a variety of activities such as renovating an office building,holding a lecture workshop by outside lecturers, giving a factory tour
for employees’ family members, and offering health guidance. Basedon an analysis of staff’s mental health status and mental healthenvironment with questionnaires containing about 116 items, thegroup decides on contents of activities.
With an emphasis on communication, “Manners Education”
began in 2009 and has taught employees about etiquettes andmanners in order to nurture pleasant employees and create an
appealing company. Until now, sixty nine employees became themanners trainers wholearned manners and spirit
and also assume their rolesof promoting such manners
internally, thus a lively
and healthy workplace isexpanding.
Manners Education
14

NLM Group CSR Report 2014

2009
2010
2011
*Accident requiring more than one day of absence20122013 (Year)

Holding of the Group’s health and safety committee
Taking the opportunity of its transition into a pure holding company
since FY 2012, the NLM Group as a whole has been committed torestructuring and further strengthening a collaborative system of
health and safety activities.
At the Group’s health and safety committee, CEOs and theemployee representatives from the main group companies develop
policies on health and safety, activity plans, and activity guidelines
and share the important health and safety issues.
Talk about safety prior to meetings
The NLM Group started checking health and safety at every meeting
since 2013 to raise and establish safety awareness. This is toincrease safety awareness and enhance a higher level of safety
activities not only for manufacturing sites but for all departments
including development, logistics, construction, and clericaladministration, etc. Now, health and safety issues are discussed at
all meetings from a divisional to an executive meeting.
This effort increases health and safety awareness among
employees and also serves as an opportunity for them to become
even more aware of health and safety not only internally but
also from broad perspectives including public trends and politicalmeasures.

Future Efforts
The NLM Group stays committed to securing a health and safety
work environment for approximately 10,000 employees. The NLMGroup works on reaching to a solution even for new occurrence ofproblems from its consultation with each employee or labor unions.

The “Environment Committee” consisting of the board members
from Nippon Light Metal Holdings Company, Ltd., the CEOs, andsuch from group companies discusses and determines basic
measures and policies including a course of action concerning
the NLM Group’s environmental management. Decisions madeby the committee are then developed into specific measures by
the Environmental Conservation Office of the CSR & Auditing
Administration Department (hereinafter called “environmental
conservation office), who is a secretariat of the Environment
Committee. They are then announced at the Environmental
Managers Council and put into practice at each plant and businesssite* in collaboration with each other in the group.
[Environmental Management Structure]
Nippon Light Metal Holdings Co., Ltd.
PresidentGroup Executive Committee

Environmental Conservation OfficeEnvironment Committee

Environment

Labor Practices

LABOR PRACTICES

Environment Related Accidents and Emergency Preparedness
Prompt reporting system has been developed and enforced tohandle environmental accidents and emergency responses both
inside and outside Japan.
The Group remained free of any environment related legal suits,fines or penalties during FY2013.

Environmental Audit
The NLM Group has been granted Environmental Management
System Accreditation, ISO14001 accreditation at major domestic
and overseas business sites and applies the accreditation.
Moreover, aside from the internal audit required by ISO14001, theenvironmental conservation office of the NLM Group conducts anenvironmental audit. In FY2013, a specialized audit was conducted
to review a compliance status with the Waste and Cleaning Law
and Water Quality Pollution Control Act amended and enacted June
1st, 2012. For those business sites that could possibly go foul of
the applicable laws due to the amended laws, the environmental
conservation office provides recommendations for remediation andfollow-up.

Group Subsidiary Business Sites
20 companies 39 business sites (Withindomestic environment management)(As of July, 2014)*Business site: Range and scope of the application of the environmental management
system.

Environmental Risk Management

Staff training for acquisition of environmental qualifications
The NLM Group believes that acquiring legal knowledge throughstudying for environmental qualifications is one of the effectivemeans to develop staff capable of quickly responding to amended
environmental laws at an early stage. Therefore, the Groupencourages its staff to obtain various relevant qualifications.

[Acquisition of Environmental Qualifications]

Status of Storage and Disposal of PCB (PolychlorinatedBiphenyl)-containing Electrical Equipment.
In accordance with the “Law Concerning Special Measures topromote Proper Disposal of PCB wastes (Law Concerning Special
Measures Against PCB waste)” and “Law Concerning Waste
Disposal and Cleaning (Waste and Cleaning Law)”, the Group
conducts thorough maintenance and disposal of the PCB-containing
electrical equipment.
Disposal by licensed waste disposal processors has alreadycompleted for part of our business sites. The Group wasable to decrease the number of the PCB-containing electricalequipment from approximately 200 at the end of March in 2008 to
approximately 70 at the end of March in 2014.

Number of
Employees

Name of Qualification

Initiatives for Environmental Risk Management
The NLM group recognizes environmental problems as a major risk.
Reports on legal compliance status and emergency responses are
periodically made to the Board of Directors and the Group Executive
Committee.

Pollution Control Manager

Atmosphere

82

Water Quality

110

Noise

24

Shake

23

Noise/Shake20

Dioxin, etc.

42

General Powder Dust

26

Industrial Waste Treatment Facility Engineer

16

Chief Administrator for Maintenance ofIndustrial Waste Subject to Special Control

Non-infectious waste
Infectious waste

6

Qualified Person for Energy Management

Heat/Electricity

85

Density-related

2

Noise/Shake-related

0

Certified Measurer

140

NLM Group CSR Report 201415

Environmental Goals and FY 2013 Results

Energy Saving Approach

Air and Water Quality Conservation

Midterm goals through FY 2020 were newly formulated in FY2013.
A “ ”mark (In Progress) was entered for some items including energy use and SOx/ NOx emissions and such because reduction in these items
was underway for the midterm goals.
The Group will continue to make steady improvements from here on.

FY2013 energy use reduced from 14.0PJ to 12.8PJ. The “Energy
Saving Committee” established in the NLM Group aims to develop
cross-sectionally by sharing plans and case examples fromeach business site. The Group believes that these activities arecontributing to an outcome of reducing energy use.

SOx and NOx emissions during FY2013 increased due to production
increases in a die-casting line. In terms of water quality, although
COD emissions slightly increased, total volume water discharged
decreased. This decrease was due to changes in work procedures
associated with changeover of raw materials at the Shimizu Plant
site of Nippon Light Metal Co, Ltd.

Definition of “Evaluation”:
Activity items
Energy saving andanti-global warming
initiatives

Air Quality
Conservation

Mid-term goals

Reduce 15% versus FY2005
in FY2018-FY2022 average by
FY2020.

Greenhouse gas emissions

Waste reductions
and recycling

972,000 tons -Co2/year

Energy use

Achieve below 12PJ / year by FY2020

12.8 PJ/year

SOx*1 emissions

Achieve below 350 tons/year by FY2020

379 tons/year

NOx emissions

Achieve below 370 tons/year by FY2020

396 tons/year

COD*3 emissions

Achieve below 110 tons/year by FY2020

110 tons/year

Evaluation

3

Achieve below 32 thousand tons/year by FY2020

36.5 thousand tons/year

Final Disposal (Landfill)

Achieve below 3 thousand tons/year by FY2020

2.2 thousand tons/year*2. NOx: Nitrogen Oxides

Below 24 substances

23 substances

WEB*4. PJ: Unit indicating energy (1PJ=1,000TJ=1015J)

2011

2012

2020
(Target)2005

Costs incurred
within business
area

2013

FY (Fiscal Year)

Unit: Million Yen

Expenditure

Pollution prevention cost

529 (874)

1,001 (1,716)

Environmental conservation cost

350 (375)

140 (207)

Resource circulation cost

50 (327)

1,004 (1,107)

85 (39)147 (170)

Upstream/Downstream costs

275 (303)

Management costs
R & D Costs

3,265 (3,549)

Social activity costs

65 (76)

Total

1,014 (1,615)

Details

Total

357 (382)

357 (382)

2011

2012

2013

2020
(Target)

27.9

2005

5,908 (7,145)

Changes in Expenditures *1 *2 Unit: Million yen
Details

Total

Energy expenditures–622 (–276)

Water expenditures–6 (–51)

Waste disposal expenditures

282 (154)

VOC*3 disposal expenditures–6 (–77)

Legally required contributions
for the reduction ofdesignated environmentally
harmful substances(Example: SOx pollution levy)

2 (4)

Total

–350 (–246)*1. Changes in expenditures are calculated using the following methods:
Changes in expenditures = expenditures incurred during a base period (FY2012) –expenditures incurred during current year (FY2013).
*2. –(minus) indicates an increase in expenditures*3. VOC (Volatile Organic Compounds)

(ton)

116

33.8

2009

28.1

2010

30.9

29.0

2011

2012

27.9

2013

95

27

97

101

2011

2012

110

110

2013

2020
(Target)79

2020(Target)

2005

2009

2010

Waste Reductions[Waste and Waste Byproducts Produced, and Waste Disposed]
Recycled/reduced
Baseline
34.9

40.1

37.1

36.5
32.1

29.9

2005

(thousand ton)

Disposed (landfill)[Economic Effect of Environmental Conservation Activities]
Unit: Million yen

2010

370

Baseline

11 (17)

Environmental remediation costs

2009

396

2009

2010

2011

32

2012

2013

3

2010

2013

380

29

12.0

2012

443

[Total volumes of discharged water] (million m3) [COD emissions]

Investment

Earnings from recycling
waste produced in thecourse of main businessactivities and recycling ofused products

13.3*Scope 3: Amount of corporation’s indirect greenhouse gas emissions at its supply
chainsNLM Group CSR Report 2014

Category

Total

2009

16

[ Environmental Conservation Expenditure]

Disposal of Valuables
11.9

11.5

2011

368

2.2

*Target value means an average value of five years from FY2018 to FY2022.
This plan shall be reviewed in cases of any major changes to such prerequisites as“Energy Basic Plan” and “Environmental Action Plan in Electric Industry (Federation ofElectric Power Companies)”.

(thousand ton -CO²)

17.1

2020 FY (Fiscal Year)(Target)

350

34.3

2013

379

3.5

2012

2010

372

28.6

2011

2009

455

372

2.9

2010

* ( ) =FY2012 Results

2005

422

27.0

2009

2020 FY (Fiscal Year)(Target)2013

Investment totaled approximately 1 billion yen (approximately
1.6 billion yen) while expenditure was approximately 5.9 billion
yen (approximately 7.1 billion yen) for FY2013 Environmental
Conservation Expenditures.
Primary factors for a decrease both in investment and expenditure
are a decrease in capital investment from changeover of raw
materials at the Shimizu Plant site of Nippon Light Metal Co., Ltd.
another decrease in the waste disposal expenditure.

Earnings[Greenhouse Gas Emissions in Logistics]

2005

2012

410

3.4

695

2011

719

(ton)

12

33.7

745

2010

Baseline

720

6.9

779

2009

12.8

[NOx emissions]Baseline

33.2

745

2005

14.0

6.6

The NLM Group is enhancing its understanding of Scope 3. The
Group currently has a grasp of its greenhouse gas emissions inlogistics by automobiles out of all the following items: domestic
fleet services, automobiles, airplanes, products, and waste.
Nikkei Logistics Co., Ltd., a logistics department of the NLMGroup, strives to reduce greenhouse gas emissions throughencouraging eco-drive and granting awards for excellent drivers.
Minor increase in emissions since FY2011 is due to the increasein shipping resulting from work process changes at some businesssites. However, the Group will make necessary improvements andreduce emissions hereafter. Also, the group will remain committed
to raising its Scope 3 coverage rate.

972

17.7

28.3

From FY2013, the NLM Group set the goal of “reducing 15% ingreenhouse gas emissions versus FY2015” as the voluntary action
plan for FY2013 onwards.
FY 2013 emission was 695,000 tons –CO2. The group also steps
up efforts in energy-saving and continues to work on reducing
emissions.

871

20.1

(ton)

Baseline

Scope 3* Reduction of Greenhouse Gas Emissions in Logistics

Baseline
1,143[SOx emissions]Baseline
21.8

Environmental Accounting

Goal of reducing greenhouse gas emissions and its results(thousand ton -CO²)(PJ)

27.9 million m /year*3. COD: An Acronym of Chemical Oxygen Demand[Greenhouse Gas Emissions][Energy Use]

3

Emissions*1. SOx: Sulfur Oxides

P24

P25

Achieve below 27 million m /year by FY2020

Reduce in numbers of substances
controlled under the PRTR

Reference
Page

16.1

Total volumes of discharged water

ChemicalManagement

In Progress ×Not Achieved

695,000 tons -Co2/year*4*2

Water Quality
Conservation

Achieved

FY2013 Results

Environment

Environment

ENVIRONMENT

2020 FY (Fiscal Year)(Target)Compared to FY2012, although emissions increased nearly 4,000
tons, the amount ultimately disposed into landfill decreased byabout 1,000 tons as a result of promoting recycling.
The Group also conducts proper waste disposal in accordancewith Waste Disposal and Public Cleansing Law by adhering to
the disposal contract standards as mandated for waste treatment
contractors (original contractor for construction waste included).
Moreover, the Group conducts an on-site inspection ofintermediate treatment facilities of industrial waste treatment
contractors while working on internal coordination in the Group.

NLM Group CSR Report 201417

ENVIRONMENT*( ) FY2012 Results

Management of Chemical Substances in Products

The NLM Group strives to build and maintain ethical, legal and productive relationships together with our customers,

Fair Operating Practices

Environment

Material Balance

FAIR OPERATING PRACTICES

business partners, competitors, administrative authorities, and any other organizations and groups involved.
At the NLM Group, Purchasing, Quality Assurance and[FY2013 Results]

Environmental Conservation departments have been working

INPUT

Electricity

7.8 PJ(8.2 PJ)

together to strengthen the management of chemical substances in

Fuel

5.0 PJ(5.8 PJ)

products.

Toward “a corporate group highly regarded by the society”

On-Site Inspection by Japan Fair Trade Commission

compliance with RoHS Directive of Europe*1 and REACH*2 is required

With an aim to become a corporate group

Nippon Light Metal Co., Ltd. received an on-site inspection by

for materials/ raw materials department as well as for a department

highly regarded by the society, the NLM Group

Japan Fair Trade Commission in April, 2014 on suspicion of violationin charge of direct delivery of products. The NLM Group undertakes

has established the Group Compliance Codes,of Anti-Monopoly Act in trading of polyaluminium chloride andthe proper management of prohibited substances and controlled

a specific code of conduct for the Groupalminium sulfate. Nippon Light Metal Co., Ltd. extends every

substances.

companies’ executive officers and employees

possible cooperation to an ongoing inspection.

In terms of the management of chemical substances in products,
OUTPUT

Greenhouse Gas

695 thousand ton -CO2 (745 thousand ton -CO2)

SOx

379 ton(372 ton)NOx

396 ton(380 ton)

Discharged water

27.9 million m3(29.0 million m3)

COD

110 ton(101 ton)

Disposed (landfill)

2.2 thousand ton(3.5 thousand ton)

Recycled/reduced

34.3 thousand ton(28.6 thousand ton)Waste

*1: RoHS Directive: An acronym of “Restriction of the use of certain Hazardous
Substances in electrical and electronic equipment directive”*2: REACH: An acronym of “Registration, Evaluation, Authorization and Restriction ofChemicals”

the codes.

Compliance Handbook

Nippon Light Metal Co., Ltd.

Nikkei Niigata Co., Ltd. has introduced a steam-driven

The NLM Group recognizes risks of forcing unfair terms of businessowns six power plants andcompressor in 2013. This compressor is powered by steam(abuse of dominant bargaining position) using its status as anhydroelectric equipment

and capable of cutting back on electricity to a large extent.

ordering party in relationships with business partners as suppliers.

consisting of two dams along

Steam, after effectively using decompression energy,

To avoid such risks, the procurement department plays a central role

the watersheds areas of theis supplied to production lines as usual. Introduction of

in making efforts to eliminate such risks.

Fuji River running in boththis equipment saves electricity used for compressors by

Especially, the Group is united to comply with “law against

approximately 3%. Effective use of compressed heat andDelay in Payment of Subcontract Proceeds to Subcontractors”.

prefectures. The Company has

improved boiler efficiency saves natural gas for fuel use by

Procurement managers work on building awareness by offering

seventy-five years of history in its hydroelectric power generation

approximately 8%.

study sessions, individual consultations, and case studies at thesince the completion of Namikii Power Plant in the year 14 ofgroup procurement manager’s meetings. Efforts on the study

Steam line

Effective use ofexisting steam

Showa era.
Electricity generated by hydroelectric power generation isrenewable energy built into natural cycle of the earth and draws

Production line

Low pressure
steam

Boilerrecent years. The NLM Group makes efficient use of such valuable
energy to the fullest extent and produces a variety of aluminium
products.

Compressedair
Effective use ofcompressed heatriver water, the Company takes part in activities for protection ofriver environment and biodiversity. The Company, in an attempt

Compressor
Coolant water 15˚C

Structure of steam-driven compressor

any entries of terms of business violating the law have been
disabled in order to curb the risks for the unfair terms of businesssite inspection were conducted in FY2013, however no issues werereported.
Furthermore, the Group, in collaboration with Finance department,

Protection of Intellectual Property
The NLM Group protects and utilizes its accomplishments ofresearch and development activities under intellectual property
rights. The Group addresses the protection of intellectual property
through respecting the third-party’s intellectual property rights.
During a developing phase of new products, each businessdivision, R&D department, and intellectual property department
together conduct a prior-art search, file its technology and acquire
the rights.
In developing a joint enterprise with local companies abroad, theGroup proactively moves forward with acquiring the intellectual
property rights needed in such country and works on avoiding
technological leakage in the contracting process.

Future Efforts
Based on the relations of trust with the customers, the Group willaddress tasks including the management of chemical substances in
products at the supply chains, the protection of human rights andthe protection of workers.

Future Efforts

fish at a diversion weir.
Also, research studies

While domestic environmental burden is decreasing due to shift

on fish ascending are

to overseas production, the NLM Group, in its effort to understandconducted every year witha group-wide environmental burden, is determined to build theapproval from Yamanashi

environment management systems covering overseas group

NLM Group CSR Report 2014

to the tail end of the organization by making business improvement

refusals to shifting the increased consumption tax.

creating a fish passage

prefecture.

With a renewal of the purchase system in FY2013, a list ofhas strengthened its responses to prevent any unfair actions as

to conserve the river environment, secures the river continuity byand continuously releasing

have participated in the study sessions.

at a business systems level. Two document reviews and one on-

85˚C

Furthermore, since the hydroelectric power generation uses

sessions began in 2010 and approximately more than 500 people

subcontractors has been compiled as a database as before. Also,

people’s attentions as environmentally-free and clean energy inand works on ensuring full enforcement of compliance all the way

CSR-oriented Procurement

Topic: Introduction of Steam-driven Compressor

KAKIMOTO Dam

Moreover, the Group takes this matter sincerely and seriously

in receiving orders and enhancing trainings on Anti-Monopoly Act.

Hydroelectric power generation and Stream Environment Protection

Yamanashi and Shizuoka

18

and is committed to ensuring dissemination of

Fishway in TOSHIMA Weir

companies.

Study sessions on Laws against Delay in Payment of
Subcontract Proceeds to Subcontractors.

NLM Group CSR Report 201419

Consumer Issues

The NLM Group targets its entire process, ranging from development/design to manufacturing and delivery, for quality

The NLM Group aims to contribute to countries and regions impacted by its business by supporting local financial, cultural

assurance and management activities and undertakes various associated tasks.

and development activities through government and local representatives in addition to creating employment opportunities

Community

COMMUNITY INVOLVEMENT
AND DEVELOPMENTCONSUMER ISSUES

and making proper tax payments.

Policies and Systems on Quality Assurance /Management Activities

Approach to Appropriate Disclosure of Information

Other

Disaster Relief Agreement with Inazawa city in Aichi Prefecture
Education/Social Education

The NLM Group continues with quality assurance and management
activities in accordance with its quality policies. In addition, tobolster up such activities, the Group has established “Central
Product Safety & Quality Assurance Division” directly controlled by
the president of Nippon Light Metal Holdings Co., Ltd.
Furthermore, the Group has also established the “Group Quality
Committee” consisting of members appointed by the quality
assurance and management managers. This committee builds a
network beyond companies and divisions to mutually raise quality
awareness by developing annual quality policies, discussing quality
problems, and sharing information.
[Organizational Structure for Quality Assurance and Management Activities
President of Nippon Light Metal Holdings Co. Ltd.

The NLM Group has established “Guidelines for Product/Service
Labeling” in May, 2013. In providing customers with the NLM’s
products and services, it is significant for any product/service labels
to be easily understood other than being legally compliant andaccurate in information delivered. Therefore, these guidelines havebeen established to provide appropriate information labeling on the
NLM’s products and services.
Research subcommittee consisting of group companies anddepartments was set up to prepare these guidelines. To put theseguidelines into effect, an administrative structure was formulated
by designating a labeling preparation division, a person to authorize,
and a chief administrator.
As an additional approach, the Group has scheduled awarenessbuilding activities of these guidelines for the NLM Group’s chief
administrators, etc.

Central Product Safety & Quality Assurance Division[Guidelines for Products/Service Labeling]

Covered display medium

Product main body (labeling included)
Operation ManualConstruction Manual
Catalog
Brochure
Flyer
TV commercials
Newspapers
Magazines
PosterSignboard
Web site
News Releases, etc.

Contents of Guidelines

Easy-to-understand display
Labeling without false and exaggerated
statements
Labeling of appropriate comparisons
Information labeling of environmentallyconscious products and services
Caution for terminology and notation
Warning label, etc.

Committee Chair Person:
Head of Central Product Safety & Quality
Assurance Division
Committee Members:
Quality assurance and quality management
manager of each company and division

Participate

SuperviseGroup Quality Committee

Quality assurance and quality management manager

Quality Diagnosis
The NLM Group conducts annual quality diagnosis at each groupcompany at home and abroad. To perform the quality diagnosis,
Central Product Safety & Quality Assurance Division conducts
a site visit to each group company and picks out issues to beaddressed in areas of quality assurance and quality management.
Main contents include clarification of development process, checks
on manufacturing process, and status checks on managementof subcontractors and purchased parts and on compliance withapplicable laws and regulations.
Quality diagnosis was performed for 48 business offices and 29
companies including overseas locations in FY2013. Results show nolegal violations in delivery of products and services.

20

NLM Group CSR Report 2014

Future Efforts

Nagoya Plant of the Nippon Light Metal Co., Ltd, Inazawa City, anda local association for promotion of regional development enteredinto a triangular “agreement concerning assistance in the event ofdisaster” in December, 2013. Although the relief agreements haveactively been executed by government and corporations after theGreat East Japan Earthquake, this triangular agreement including
the local association for promotion of regional development is thefirst case in Inazawa City.
This agreement lays out the followings details of disaster
relief in the event of a major disaster such as wind and flood
damage and earthquake: supplying well water from the plant fordomestic and commercial water upon Inazawa City’s request andproviding company housing, bachelors’ dormitory and parking as
temporary shelters. Moreover, as one of the characteristics, theGroup’s cooperation with local community in terms of disaster andcrime prevention for a normal period is also incorporated into thisagreement other than disaster relief.
Through this disaster relief agreement, the Group will makefurther local contributions than ever and continue to promotebonding and communication with people from local community.
Also, upon entering into this agreement, two sets of “Nikkei
Water Supply Container” from Nikkeikin Aluminium Core Technology
Co., Ltd. were donated to Inazawa City. The NLM group later
received a letter of appreciation from mayor of Inazawa City.

Entered into a support agreement in the eventof a disaster

3%

Environmental Contribution,
Protection of Biodiversity

8%
Health/Medical,
Sports9%34%
Total expenditure

95 million yen

Academic/Research

22%

Activities in Local Community,
Preservation of Historical sites andtraditional cultures

24%
Tidy-up at “MIHONOMATSUBARA,” the world’s cultural heritage
Nikkei Sangyo Co., Ltd. has multiple business facilities in Shimizuku in Shizuoka Prefecture. Also nearby is “MIHONOMATSUBARA”
which registered as a heritage asset of the world cultural heritagein June, 2013. In order to come together to preserve this world’s
cultural heritage, with the motto, “Let’s do it! Be of help as much as
possible!”, the tidy-up activities have begun.
The activities include tidy-up in the suburbs and along theshoreline. The president, followed by about 30 people meets at 6:30
in the morning prior to their normal work hours and tidy up for about
an hour once every month.
Even though the city is revitalized by increases in tourists since
the registration of “Mihonomatsubara” as world cultural heritage,increased amount of trash has become an issue. The Company
continues to perform tidy-up activities to preserve the beautiful“MIHONOMATSUBARA”.

Donated water supply containers
manufactured by NLM Group

Social Contribution Accounting
The NLM Group expands its business domain through crossdivisional activities. In order to ensure stable quality, the Group willcontinue to address consumer issues on new products and services
as well.

The NLM Group does aggregate calculation of social contribution
accounting annually as one of the indicators for social contribution
activities. FY2013 expenditure was approximately 95million yen.

Tidy-up

NLM Group CSR Report 201421

THIRD-PARTY OPINIONCOMMUNITY INVOLVEMENT
AND DEVELOPMENT

Nippon Fruehauf Co., Ltd. facilitated a factory tour to assist in
nurturing views of labor and occupation among children in thecommunity. They invited 35 fifth grade students from Kamiichi
Elementary School in Atsugi City in November, 2013, made apresentation, gave them a factory tour and a tour of the finishedwing truck, and also provided them with an opportunity forworkplace experience.
As part of workplace experience, the students experienced
riveting in order to create key chains. As many as approximately
4,000 rivets per truck are used in manufacturing the trucks. While
the students struggled with rivets and rivet tools they use for the
first time, they worked hard on making key chains. They seemto have learned that work standard and safety rules need to beadhered to even just to hammer one rivet in.
Those students who participated provided the following
feedback, “It was amazing to learn that trucks are manufactured not
only by machines but by hand!” “I was surprised to see a number ofmaterials used.”

Mr. Toshihiko Fujii

Consulting Fellow, Research Institute of
Economy, Trade, and Industry

Dance of City Residents

Road Safety Activities with the Community
In order to contribute to road safety in the community, Kambara
Complex of the Nippon Light Metal Co., Ltd., together with local
police and members from the Safety Driving Supervisor’s Council,
distributes flyers and perform stand guard four times annually at JR
Shin-Kambara station nearest to the site.
Also, the measures to place banners for road safety awarenessand to install lights for improving nighttime visibility have beentaken for the road in front of the main gate at the Kambara Complex
as one of the major roads for going to work and school.
In addition, the road safety lecture workshop facilitated by the
local police is held twice every year for all employees. The local
police give guidance about preparedness for traffic accidents based
on up-to-date information on traffic accidents in their jurisdiction.
Thus, the Company strives to increase awareness for road safety
also from the standpoints of bike riders and pedestrians.

Riveting experience (Making of key chain)

Participation in Tomakomai Port Festival again
Many business facilities of the NLM group participate in local
festivals and events as a corporation as much as possible to vitalize
and interact widely with the community in addition to holding theirown community exchange events.
Tomakomai manufacturing site of Nippon Light Metal Co., Ltd.
participated in “Dance of City Residents” at “Tomakomai Port
Festival” held in Tomakomai City in August, 2013. This was thefirst time after 15 years. On the day of the festival, 130 employees,
approximately half of the employees at the manufacturing site,
participated and received a “Fashion Award” for their dressed
ranks and brilliant dance. Although there were times that they
were unable to participate due to downturn in business, they reacknowledge the value of community exchange by participating in
one of the major events in Tomakomai City. They want to continue
to participate in the festival as a precious interaction place for thecommunity and corporation from next year on.

THIRD-PARTY OPINION

Community

Factory tour for the Elementary School Students“Most mines are managed and operated by international mining majors, therefore its business operates on an uncertain trust that there are no
human rights problems. Validating this uncertain trust is also one of the important business tasks for those engaged in the aluminium business.”(Underlined by the writer)
This one sentence about human rights in the 2014 CSR Report, especially the underlined parts, expresses the Nippon Light Metal Group’s sincere
stance of recognizing its problem as it is. The Group is also straightforward with their current status and defines their recruitment rate of females for
managerial positions as “low”.
“Power to recognize the problem” was pointed out as one of the contributing factors for the management strength among Japanese corporationsin the bestselling “KAIZEN” published in the United States in 1986. There is no KAIZEN unless you recognize your problem. Also, in terms of CSR, aprecondition for meaningful approach is to actively share the problems with outside stakeholders without hiding them.
Additionally, as well as last year, I want to value the message from the CEO, Mr. Ishiyama again this year. A depth of his insight regarding
relationship between the Group’s business and the society described in his message (for example, realization to nail down what to be done as acorporation in face of the increased opportunities to witness the reform term in developing countries and communities due to the NLM Group’sbusiness lineup) and definiteness for the future direction based on his insight make this top message an outstanding one of many other CSR reports.
I sincerely agree with the part describing that the NLM Group is required to develop “human resources capable of addressing social problems” in theworld and the community.
I would encourage a wide range of people to read this report.
Now, I would like to comment on each issue below from the following two CSR perspectives: (1) Solution to social issues through business, (2)Respect for social values and principles in business performance(1) Solution to social issues through business*
All case examples featured as special topics this year are highly interesting as last year. The report successfully communicates that we should not
be influenced by pessimism and instead should solve issues using wisdom and new technology despite various social and environmental problems
existing in the modern society. Especially, I suppose that the article about aluminium chloride hexahydrate contributing to biodiversity would provide
readers with new perspectives on relationship between technology and environmental problems.
(2) In terms of respect for social values and principles in performance of business, I would like to provide a comment focusing on the following two
points: Human Rights and Environment.

Performing stand guard with holding up a banner

Human Rights
As stated above, I want to value again that the Group is straightforward with their current problems. On top of that, as future responses, action steps
should be described more specifically in the first place. Although the major action plans for FY2013 and their performance evaluation are listed bycategory, I expect to see more detailed list of action plans after the reference year in addition to the previous year’s evaluation in next year’s CSR
report. Today, in order to address overall CSR, especially human rights issues, the whole company needs to share its awareness that due diligence isrequired as a main request from global society against corporations. CSR and procurement departments should be united to put this into practice.
Also, I want to see further and steady efforts, such as Fortuna Training, in providing opportunities for various human resources to play an activerole. It is important to maintain the stance to develop “human resources capable of addressing social problems” in the world and in the community.

Lecture on road safety by Shimizu Police Station

Future Efforts
The Group aspires to proactively support approaches to various
community tasks including disaster planning, protection of
biodiversity and such and to become a corporation better rooted in
the community.

Environment
Reduction of greenhouse gas emissions shows that such Group’s commitment has come to fruition. On the other hand, as seen in increases in SOx
emissions during these past three years, several items concerning air protection and energy consumption are expected to need more efforts toachieve the target value. Furthermore, even though understanding of indirect greenhouse gas emissions at supply chains, so-called Scope 3, andefforts on reduction of Scope 3 are going into a right direction, the scope of efforts is limited to logistics by automobiles. It is recommended to
expand the coverage to a whole supply chains in the future.
I want to lay down my pen hoping that CSR approach will become a solid backbone of the NLM Group’s global management.

* We had to leave out the “Special topics”, that the writer mentioned below, in English edition for lack of space.
22

NLM Group CSR Report 2014

NLM Group CSR Report 201423

Nippon Light Metal Group
http://www.nikkeikinholdings.co.jp

Inquiry Desk

Nippon Light Metal Holdings Company, Ltd
Central CSR and Audit Office
2-2-20 Higashi Shinagawa, Shinagawa-ku, Tokyo
Phone. 03-5461-8645 Facsimile. 03-5461-9188