CSR Report

Corporate Social Responsibility Report

2015

Everyone’s
Thoughts for
Creating the Future

CONT ENT S
3 Editorial Policy
4 Message from the CEO

Main Chapter
6 Organizational Governance
8 Human Rights
10 Labor Practices
12 Environment
14 Fair Operating Practices
16 Consumer Issues

Ev

18 Community Involvement and Developmentonery

e ’s T h o u g h t s

for C

reating

the Future

20 Company Profile, Business Profile
21 Third Party Opinion
22 Data

About Media for CSR Report

Editorial Policy“CSR Report 2015 – Nippon Light Metal Group” reports the CSR efforts during FY2014.
Please go to our company website for more detailed contents, past activities, and financial information.

■[Non-Financial Information]
WebsiteCSR Report (Booklet/PDF)
http://www.nikkeikinholdings.com/csr/

Introduction
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 toobtain their understandings.
The NLM Group recognizes various social challenges described in thecore themes of ISO26000 and promotes CSR activities to contribute to
the solution of those challenges. Your opinions and feedback on the NLMGroup’s activities for each challenge would be greatly appreciated.

[Financial Information]
Websitehttp://www.nikkeikinholdings.com/pages/ir/
株主メモ

株主のみなさまへ
株主通信 第 3 期
平成26年4月1日～平成27年3月31日

CSR Report

Corporate Social Responsibility Report2015

NIPPON LIGHT METAL HOLDINGS COMPANY, LTD. ANNUAL REPORT 2014

Nippon Light Metal Holdings Company, Ltd.
NYK Tennoz Building, 2-20, Higashi-Shinagawa 2-chome
Shinagawa-ku, Tokyo 140-8628, Japan
http://www.nikkeikinholdings.co.jp

A N N UA L R EPORT 2014

FACT BOOK

Year ended March 31, 2014

2014

Fact Book
010_0600702472609.indd

2

2014/09/16

16:53:44

証券コ ード：5703

IR Latest News
010_0600703032706.indd

Printed in Japan

005_0600701372609.indd

2

1Annual Report

2014/09/03

13:14:49

Reference Guidelines
This report used “Environmental Reporting Guidelines (2012)” preparedby the Ministry of the Environment and “GRI (Global Reporting Initiative)
Guidelines (2006)” as references.

Scope
Unless otherwise specified, Nippon Light Metal Holdings Co., Ltd. and its
consolidated subsidiaries are covered. A total of 77 companies.
However, for the “Environment”, Nippon Light Metal Holdings Co., Ltd. andits consolidated subsidiaries are covered. A total of 24 companies.

■■
Contents

Everyone’s
Thoughts for
Creating the Future■ Period covered
Data collection period for this report is from April 2014 to March 2015.
*Data prior to and after this period is also partially included.

1

1 株主のみなさまへ
3 特集：新社長メッセージ
5 連結事業の概況
6 NLM グループ・トピックス
7 連結財務諸表
9 会社情報 ／ ホームページのご案内
10 株式情報11 株主メモ2015/06/07

2:49:06■ Publication period
August, 2015
(Next edition: scheduled in August, 2016, Previous edition: August, 2014)

3

MESSAGE FROM THE CEO

The NLM Group is committed to develop humanresources capable of addressing social issues.
I am Ichiro Okamoto, the newly appointed Chief Executive Officer (CEO), in succession to the former CEO, Takashi
Ishiyama (Current representative director/chairman). I would like to make more contributions now more before
than ever for the NLM Group to solve social challenges. I would greatly appreciate your continued guidance andencouragement.

Mission of the NLM GroupThe NLM Group holds up a core policy of making contributions for
improving people’s lives and protecting the global environment for its
business administration. This policy is also a basic focus on the CSR
activities.
The NLM Group, as a general manufacturer for aluminium,
supplies a wide range of environmentally-friendly products including
solar power and automotive parts to all over the world with a central
focus on Asia. Moreover, we strive to collect and recycle scrap
aluminium. Therefore a proportion of the recycled aluminium hasreached approximately 46% of the amount of aluminium used by theentire group (FY2014 results. As per an in-company investigation).
From here on also, we will continue to advance our developmentof environmentally-friendly products and contribute to solving social
problems through our business, while maximizing the special featuresof aluminium.

The NLM Group grows together with society
The NLM Group has been carrying out the three-year mid-term
management plan since FY2013, the first year of the plan. In this midterm management plan, we upheld three basic policies, “businessdevelopment through strategies by regions and categories”, “creationof a growth driver through new product and new business”, and“reinforcement of the business structure.” We will introduce thecontents and actual achievements here.
Business development through strategies by regions andcategories
We expanded the following five business divisions in each region mainly
in Japan, China and South East Asia: “automotive and transport”,“electrical, electronics and communication”, “construction and building
materials,” “environment, safety and energy,” and “food, health andhousehold consumer products”. Given the diverse demands trends exist

4in each country for these five business divisions, we selected fields
to invest our management resources in per region and per market
territory.
As a result, in the “automotive and transport division,” the aluminium
electric wire used for hybrid cars has increased its sales domestically.
In China, the sales of ABS components and forged suspensions
are also increasing. These products contribute to increase in fuelefficiency of automobiles due to the weight savings. In South East
Asia, the demand for automotive casting/die-casting alloys and heatexchangers is increasing in Thailand. The business continues toexpand by establishing a joint venture for truck accessories, etc. In the“electrical, electronics and communication division,” the sales of lithium
ion battery related products are steadily increasing. Moreover, withconversion of Toyo Rikagaku Kenkyusho CO., LTD. into a subsidiary, thenumber of products delivered including PC boards is increasing in its
Chinese subsidiary. In Thailand, we focused our management resources
intensively and efficiently in line with the growth in each market, as an
example, for the increasing demand of heat exchangers for room air
conditioners.
Creation of a growth driver through new product and new
business
In the automotive and transport division, we have newly released
the automotive paint products, “ CHROMASHINE®” and “Alpaste®”.
We are also advancing new developments in aluminium condensers
for in-car inverters as well as increasing the number of car models
equipped with the condensers. In the “electrical, electronics andcommunication” and “environment, safety and energy” divisions, we are
newly developing and selling the fine alumina and negative-electrodematerials respectively as elements related to lithium ion battery.
Moreover, as the reconstruction-related products for the Great East
Japan Earthquake, we have developed the “transportation aluminium
palette for Flexible Container Bag (FleConBag)” for anti-scattering ofradioactive materials during transport of decontaminated waste. In thedivision of “food, health and household consumer products”, we havecreated commercial beer servers and so forth. In the “construction andbuilding materials” division, we have applied our technology of “TOYALLOTUS®”, a water-repellent packaging material, to co-develop the “Art
Form*”, a super water-repellent form, with our customers.
*Application in process for trademark registration

Reinforcement of Business Structure
I believe that the rebuilding of our alumina business is of utmost
importance. The earning capacity for our alumina business isdiminishing considerably due to the changeover of raw materials andthe rise in the cost of raw materials because of the weakening yen. We
are committed to building a revenue base by revising sales prices andexpanding the sales of high-value-added products.
The NLM Group, from now on also, aspires not only to respond to
customers’ needs but also to become a manufacturer of materials in adifferent capacity who can provide customers with the best solutions by
combining multiple added-values including manufacturing, designing,
maintenance, construction, services and technical guidance.

Corporate social responsibility
Now that I have taken the office as the president, I have once again
keenly realized that all the corporate activities are associated withsocial responsibilities.
Ever since I joined the company, I was mainly involved in research
and manufacturing with a focus on aluminium rolling techniques. Here,I would like to present my views of corporate social responsibility
through my past on-site experience at the plants and research facilities
including my overseas assignment.
First of all, I believe that “safety” for all of the NLM Group’s
employees and residents near our offices lie at the basic premise forthe development of approaches as a general aluminium manufacturer.
In particular, our employees are those who assume the NLM Group’ssocial responsibility and who realize the obligation. I think that
our corporate value will increase and will lead to the sustainable
development of our business as long as employees operate in pleasantand safe workplaces and stay physically and mentally productive atwork. For this reason, we will work on prioritizing our employees’ safety
over anything else and cultivating our human resources steadily andcomprehensively. Safety takes particular precedence over all company

activities. We aim to create a zero-accident workplace in line with thethree actuals, Sangen Shugi, the actual place, the actual part, and theactual situation.
Human resources development is significant for the NLM Group to beconsidered one of the true international corporate groups. While valuing
an identity as Japanese corporation, it is important to face one anotherwith sincerity and to grow together positively with people and cultures
all over the world including western countries, China, and South East
Asia. I have experience in facing various resistances from field site staff
when I once conducted the operation guidance at overseas plants. Backin those days, I took it for granted one-sidedly that they would follow
any instructions and work overtime because it is their job. Since then, I
tried everything to enhance my communication with them, understanddifferences in our views toward job and achieve mutual understanding.
Thinking back now, it was the experience through which I was able togain an understanding of “diversity” in my own way.
I have assumed the role of chairperson of our CSR committee fromthis fiscal year. Given that employees’ happiness, including health,challenge, pleasure, and families, is fundamentally essential, I want tomeet the shareholders’ and investors’ expectations, appreciate andcontribute to people, community and society who live together in theworld. To do this, I, as Team Nikkeikin, want to build a solid earnings
foundation, promote CSR, and create the highly-motivate corporategroup.
Our CSR report is prepared annually through many discussions by avariety of members from every group company. This year also, we will
provide you with our ideas of tasks, actions, and results through ourreports. We would appreciate your straightforward opinions.

August, 2015
Nippon Light Metal Holdings Company, Ltd.
President and Chief Executive Officer

5

ORGANIZATIONAL GOVERNANCE Dialogues with shareholders through shareholders
meetings

Group Executive Committee

Officers• Compliance Committee• CSR Committee• Quality Committee• Environment Committee

Operations,subsidiaries and affiliates

Operationexchange

Reports andproposals

Central CSR and Audit Office

Statutory
auditor audits

Operationexchange

Organizational GovernancePresident and CEO

see our website•E nhancement of compliance training
program see our website•S trengthening of system to ensurecompliance with laws and regulations•Timely disclosure•More effective communication

Human Rights

Appointment/removal•Raising of CSR awareness•Strengthening of risk management•Dissemination of Group’s management
policies and compliance code Holding of IR briefing session
Nippon Light Metal Holdings Co., Ltd. announces its earnings
reports quarterly through the Tokyo Stock Exchange as well as
through mass media companies based on the disclosure rules.
The CEO, himself, provides explanations with respect to earnings
and management policies at the past earnings announcements
and the second quarterly earnings announcements. The earnings
presentation materials are available on our website.
Additionally, the Company strives to follow its fair disclosurerules* 3, 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 by the corporate investors.
*3 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.

Internal control system*4 Independent study group for quality improvement: See page 25 for details.

CSR committee appoints a CSR officer from the Nippon Light Metal
Holdings Co., Ltd. to be a chairperson. The committee also consistsof the CEOs from major group companies and responsible officials
from each department. The CSR committee holds its meetings twicea year to discuss and determine the NLM Group’s CSR activity promotion programs in addition to exchanging and sharing informationon the policies for CSR promotion. The minutes of the meetings areshared internally in the Group.

CSR leader and CSR promoter
The NLM group assigns CSR leaders and CSR promoters for its
group companies or departments, who assume the roles for governing and promoting the CSR activities.
CSR promotion system structure of the NLM Group
Nippon Light Metal Holdings Company, Ltd.

Major risksGroup Executive Committee
Product andService
Negligence oftimely disclosure Defects Environmental
issuesof information

Export control
systems
Leaks ofcorporate
data secrecy

Naturaldisasters
and accidents

Major
risks

Toyo Aluminium K.K.

CSR Group

CSR Promotion Division

Group company

Group company

The NLM Group is intended to enhance the CSR activities throughout
the entire group and thereby having a CSR committee in place. The

Nippon Light Metal Company, Ltd.

Toyo Aluminium Business Group

Group company

CSR committee

Nippon Light Metal Business Group

Group company

CSR promotion system

Central CSR and Audit OfficeGroup company

Information
system issues

Health and
Safety issues

CSR Committee

Group company

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

In order to address various risks surrounding its businesses, the
NLM Group is committed to steadily increase its corporate value by
putting in place appropriate controls and practices in agreementwith the Group’s business strategies. The NLM Group has identified
eight risks requiring group-wide comprehensive management, as“major risks”, and designated a department in charge of risk management.
The Group checks the status of these major risks by interviewing
the directors in charge every half-year period, holding monthly meetings, and working on reducing risks.
During FY2014, the Group implemented “strengthening of control
system for contained chemical substances,” “training for preparers
of product catalogues,” and “independent study group for quality
improvement* 4.”

Environment*2 BCP:An acronym for business continuity plan. A BCP lays down recovery proceduresfor personnel, equipment, raw materials, and other matters in preparation for natural
disasters, terrorist attacks, and other emergency situations that make it difficult tocontinue normal business operations.

Risk management

Fair Operating Practices

opinions and questions concerning “personnel development,”“development of BCP* 2,” and “environmentally-friendly products”.

Labor Practices

Audit reports / Operation exchangeGroup company

6

Accounting
audit

Audit reports

Group company

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. Visual images and narration work are used in themeetings in order to better explain the content of the proceedings.
Also, in order to gain understandings of the matters to be reported
and resolved as quickly as possible, internet is used for information
disclosure and voting.
Many shareholders came and joined the 3 rd annual meeting of
the shareholders held on June 24, 2015 and offered various

Appointment/
removal

Directors/
Outside Directors

Consumer Issues

Communication with shareholders
and investors

Board of Directors

Appointment/removal

Community Involvement andDevelopment*1 Japan’s Corporate Governance Code:This code covers a code of conduct, which listedcompanies should follow, including shareholders’ rights, roles of board of directors, andwhole concept of executive salaries. It was established by Tokyo Stock Exchange.

Audit reports

Appointment/removal

Auditors
Outside auditors

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 governancesystem as follows:◦Hire two outside directors and three outside auditors.
Designate four of them as independent board members◦Set the term for directors to be one year
◦Introduce an officer system and separate management
supervision from business execution
In FY2015, we will address such challenges as strengthening ofsupervisory function in the board of directors in accordance with theprinciples of “Japan’s Corporate Governance Code*1” introduced in
June.

Appointment/removal

Board of auditors

Organizational governance

Activity Themes

General Meeting of Shareholders

Internal
audit

The NLM Group works on the development of acorporate governance system capable of making themost use of its organizational strength based on theunderstandings that the corporate value and obligations
for social responsibilities are realized only through thestrong corporate governance.

Governance Structure Chart

Accounting Auditor

The NLM Group works towards
improving its corporate value
and ensuring sustainablegrowth as corporate group.

CSR Leader
CSR Promoter

Aluminium Properties ▶▶▶ 01 Lightweight properties

Aluminium Properties ▶▶▶ 02 Workability

Aluminium is a quite lightweight metal. Its specific gravity is 2.7, which is approximately one-third of iron (7.8) and copper (8.9). Because of this, a large amount of Aluminium is used in thetransportation industry including automotive, railcars, aircrafts, and vessels.

Aluminium can easily be processed into various shapes. It can be processed into thin foil just like paper using the rolling technique or can be manufactured into extrusion products in very complex
configurations. With these useful properties, aluminium is widely used for industrial tools including metallic mold and machinery parts

7

HUMAN RIGHTS
Value Chain of the NLM group

Activity Themes
Aluminium refineries
Suppliers for
raw materials•Promotion of Diversity•Responses to Globalization

Research anddevelopment•Improvement of Disaster Preparedness

Organizational Governance

We will give extra
considerations to ensure
people’s human rights.

See our website

The NLM
group

Manufacturing

Human Rights

The NLM Group values human rights and will not
tolerate any discrimination, harassment, and abuse
for any reason. Moreover, with its self-awarenessas a global corporation, the Group will give extra
considerations to any circumstances and situations
jeopardizing human rights in the scope of its business.

Production
technology

Sales andmarketing

8

NLM Group has thus far promoted mutual communication whilevaluing culture and custom of each country.
The NLM Group will work on creating a work environment
where all the employees realize their full potential by overcoming
such barriers as distance, culture, and language through theinteractions including improvement activities and workshops and by
valuing a sense of unity as a group.

Environment❶ Respect for individuals: whether the supply chain is managed
to prevent any acts undermining someone’s sense of personaldignity including physical punishment, sexual harassment, andpower harassment.
❷Non-discrimination: Whether the supply chain is properly
managed to prevent any discriminatory acts from occurring
during recruitment, hiring and employment.
❸Work hour: Whether the supply chain is managed to avoid any
work instructions to work an unbearable number of hours andunfair limitation on holidays and personal leaves.
❹Employee’s right to organize: Whether the supply chain ismanaged to prevent any interruptive acts by company against
employee’s right to organize and to avoid the company’s refusal
to hold a discussion between labor and management.
❺Prohibition of labor under coercion: Whether the supply
chain is managed to prevent any labor under coercion, debt
bondage, slave work, and involuntary prison labor, as well as to
avoid any behavior that limits the rights to leave one’s job freely.
❻Prohibition of child labor: Whether the supply chain ismanaged to not hire anyone whose age is under the minimum
age for employment, as well as to ensure protection of young
workers from night work and hazardous job.
❼Decent wage: Whether the supply chain is managed to avoid
any wage payment under the legal minimum wage, and also to
avoid unfair wage reduction and non-payment.

Toyo Rikagaku Kenkyusho Co., Ltd. and its consolidated subsidiary
newly joined the NLM Group in January, 2015. As a result, as ofMarch 31, 2015, the proportion of foreign employees in the Grouphas increased dramatically from approximately 18% in 2014 toapproximately 34%. Although the number of female directors is one,which is still a small number, the proportion of females in managerial
positions has steadily increased from 2.9% to 3.6%.
Along with the expansion of its business on a global level, thePlease see P30-31

Employee's Comments

The NLM Group’s consideration for differencesin customs allows me to work at ease.

I am committed to addressing environmental
issues as member of the NLM Group.

I am a Muslim from Indonesia. I am currently in charge of development ofaluminium processing technique. Although it appeared that I was the first
Muslim ever for the company, the company willingly took care of worshipservices, meals, and housing when I joined.
The company gives extra considerations forhealth and safety during Ramadan period sothat I am able to work at ease.
In the future, people from more religious
groups and ethnic backgrounds will join
and work for the NLM Group. I believe thatproactively attempting the “first thing” asProcess Material Group,company, becoming a “lead person” without
Group Technology
Center, Nippon Lightfear as an employee, and by accepting new
Metal Co., Ltd.
challenges with one another, the company
Wirawanand employees will be able to grow together. I
Riski Anggri
definitely want to be a driving force for this.

I joined Nikkei Siam in October, 2003 and am currently responsible
for EIA and ISO14001 as an assistant manager in charge ofenvironment concerns. My main duties include controlling andmonitoring waste products, drainage
water, emissions, and noise.
The NLM Group addresses various
environmental issues as a group. We
follow their policies and work towards
solving these issues together. From
here on out, I want to perform thesetasks with great pride and put effort
Office of Environment,
into creating better future for the global
Health and Safety, Nikkei
environment.
Siam Aluminium Limited

Fair Operating Practices

Points to be checked concerning human rights
and work in supply chain

Consumer Issues

The NLM Group deals with aluminium and aluminium-related
products as its core business. Therefore, the entire Group imports
and uses approximately 180,000 tons of aluminium ingots per year.
The refining process of aluminium includes a refiner’s picking
bauxite from bauxite mines, extracting aluminium from bauxite, andfinally applying electrolysis to it. These mines are located relatively
closer to our supply chain, thus human rights issues in those areas
concern us. We have been operating our business until now on an
uncertain trust that human rights issues are properly taken care ofunder legal management.
We believe that explicit confirmation, as well as the efforts
against “conflict minerals” which occurred on a global basis, is also
necessary for our business. During FY2014, written questionnaires
were conducted for seven items to ensure that no circumstancesand situations of concern exist with respect to human rights andwork at aluminium refineries, upstream suppliers, and bauxite
mines. As a result, we received responses from all the suppliers andconfirmed that neither circumstances nor situations of concern exist.
We will work on expanding the coverage of supply chain forsurveys and on-site reviews in order to conduct ongoing monitoring.

Together with employees from various countries and communities

Community Involvement andDevelopment

Human rights due diligence

Labor Practices

Customers

Krongkamol
Lindahl

Aluminium Properties ▶▶▶ 03 Heat conductivity

Aluminium Properties ▶▶▶ 04 Safety

Rate of aluminium heat conductivity is three times as high as that of iron. Due to its high heat conductivity rate, aluminium is utilized in air-conditioning equipment, engine parts, various heatexchangers, and beverage cans. Also, it is used as cooling fin and heat sink for overheating prevention in the electronics industry.

Aluminium is harmless and odorless, thereby not damaging human body and earth. Due to these features, aluminium is broadly used for packing materials for food and drugs, beverage cans,medical equipment and household properties.

9

LABOR PRACTICES

Implementation of Safety Sensory
Education
One of the programs to increase the “field capability” is “Safety
Sensory Education”. “Safety sensory education” is a practicaleducation method that replicates workplace hazards, including
machine hazards which may cause parts of the body to be struck
or caught. This also includes falls from a specified height, andelectric shock due to low-tension electricity. Thus, employees areable to intuitively understand the hazards through their practicalexperiences.
Nippon Light Metal Co., Ltd. sets up the safety sensory
classrooms at its factories. To provide more realistic experiences,machines and equipment are designed and produced to match thecharacteristics of each factory. The participants offered a glimpseof the effects by giving their feedback as follows: “I was surprised
at a stronger shock than expected when catching the fallen object,”“It has been troublesome to use a safety harness thus far, but I
have realized that I have to wear it properly after having a bodysensory experience of its structure and advantageous effects,” and10

Moreover, self-manufactured equipment is now used not onlyin new hire safety education program but also in skills education
program which incorporates safety sensory education.

Towards the Olympics with theGroup capabilities
The NLM Group constantly performs “cross functional activity”
where employees develop products in a cross-sectional manner
beyond the borders of companies and departments. This activity
allows product development to go beyond the limits of one’s own
technology and equipment or market, and also provides anopportunity for the practical human resource development throughregular interaction and information sharing.
As part of this cross-functional activity, the Group has launched
the project called, “Let’s make and grab! By Nippon Light Metal
Group”, for the Tokyo Olympics and the Paralympics Games in 2020.

Enhancemanagement
capability

SMS* promoter/administrator development

Enhancetechnical
capability

Risk reduction based on risk assessment
Development of safety engineer and safety foreperson•Changes for globalization•Health and safety activities*SMS：Safety Management System

Countermeasure against backache and heatstroke/Prevention measure for second hand smoke

Mental health measure/Infection control measure

Since the Olympics and Paralympics are the events which bringpeople around together from around the world, Japanese society is
expected to experience major changes from these events. Therefore,
the Group began the project with freely imagining how cities and life
will change.
As a first step, in 2013, an open forum was held at theworkplaces of each group company. One thing that was kept in
mind, at that time, was an awareness to distance ourselves fromdaily work and to “think outside the box.” As many as 8,000 ideas
were generated through flexible thinking and envisioning the future.
In 2004, based on those ideas, young employees from eachgroup company met and held a session, “story created by dreams,”
in which they pictured their future day-to-day activities accurately.
The NLM Group continues with these activities that lead
imagination to creation with the concept, “Let’s create EXCITING,” asa second step in 2015.
Through these activities, the Group will produce useful products
and services for people around the world as well as develop the
personnel who understand diversity.

Labor Practices

Enhancehealthcapability

Safety audit / SMS certification

Organizational GovernanceOverseasdevelopment

Human Rights

Development and implementation of
the independent study group for safety•Compliance with relevant laws
•Promotion of work-life balance Holding of the event co-hosted by labor andmanagement
Given that employees can increase their friends, expand theirworldviews, and enhance their humanitarian views throughproactively challenging things other than work, the NLM Groupfacilitates such regular events.
Nippon Light Metal Co., Ltd. holds the annual bowling
tournament co-hosted by labor and management at each office.
The day of the bowling tournament is a well-balanced day in which
employees work efficiently as well as perspire by bowling. Also,
since this can enhance communication between labor andmanagement in the office, the tournament has been a highly
important event. The tournaments were held at six locations during
FY2014 and approximately 888 employees participated.

Environment“it was an excellent experience as I was able to recognize the fearof electric shock which I seldom experience in real life situations.

Workplace and personnel development

Fair Operating Practices

Ensuring health and safety is a top priority for the NLM Group. The
presidents and CEOs , safety control managers, and representativesof labor unions of the Group’s major companies develop a mid-termcourse of action in the health and safety committee in order for theGroup as a whole to address legal compliance, ensuring of safety atwork, improvement of hygienic environment, and employees’ mental
health issues. This course of action focuses on health and safety
activities based on the following four capabilities: “field capability”,“management capability,” “technical capability,” and “healthcapability.” To enhance each capability, we adjust and operate various
programs.

Enhance field
capability

Year 2014 Year 2015 Year 2016

Consumer Issues

The Group’s safety activities

Mid-term
course of action

Activity Themes

Work-Life balance Child rearing and family care support system
Nippon Light Metal Co., Ltd. provides support systems for childrearing and family care and ensures that the workplace serves asa place in which employees can work with peace of mind, thereby
supporting the realization of a positive work-life balance.

Bowling Tournament
Community Involvement andDevelopment

The NLM Group aspires to create a work environment where
each employee feels safe and secure while generating
stable employment opportunities and ensuring appropriatecompensation as a fundamental practice. Moreover, the entire
group implements long-term human resources developmentfrom a global perspective. Furthermore, the group encourages
the establishment of a work-life balance for employees byimproving their welfare and work environment.

The NLM Group 3rd health and safety mid-term course of action

Safety activities for teamwork

We will move ahead on creatinga safe and secure work
environment and developing
globalized human resources.

FY2014 results
Number of employees who took maternity leave
Number of employees who took child care leave

9

Females

16

Males

0

Number of employees who took family care leave

0

Aluminium Properties ▶▶▶ 05 Recyclability

Aluminium Properties ▶▶▶ 06 Corrosion resistance

The melting temperature of aluminium is as low as 660℃, therefore aluminium can be easily melt and recycled. The energy needed for recycling is only 3% which is relatively less than what isneeded for manufacturing new aluminium bare metal.

Aluminium forms rigorous and stable oxide layers, which prevent corrosion. This corrosion resistance of aluminium is utilized for landscape products in the area of construction and also in the areasof automotive, vessels, and marine development.

11

ENVIRONMENT
Extent of Environmental Impact

Greenhouse Gas Emissions（thousand ton -CO2）

2,000
1,500

1,143

1,000

871

779

745

695

748

0

2010

2011

2012

2013

2014

（Baseline）

from 1 to 15 since FY 2014 and expanded it in categories 1 to 7.
As a result, the Scope 3 emissions by the NLM Group in
FY2014 were 2,053 thousand tons. Of this, the emissions of
category 1 (products and services purchased) account for about
97% of the entire Scope 3. This is because a lot of electricity isneeded to refine aluminium ingots.
Moreover, the retroactive calculation back to FY2011 for the
categories covered this time indicated that the greenhouse gas
emissions were reduced by 5.9% in these four years. The biggest
factor for this change was the waste reductions as a result of thechangeover of raw materials in the chemical products division(from bauxite to aluminium hydroxide).
Hereafter, the NLM Group will plan its purchases withconsiderations for the amount of greenhouse gas emissions fromeach supplier and thus will work towards reducing the greenhousegas emissions from the overall supply chain including Scope 3.

11%
16%

（Target）

The NLM Group grasped only Category 4 with respect to Scope 3 until
now, however the Group had started reviewing categories ranging

12

Energy saving approach
The Kambara complex of the Nippon Light Metal Co., Ltd. has updated
its boiler which manufactures steam to be supplied in the complex
supplied in the complex and changed fuel from heavy oil to urban gas.
Because of this change, sulfur in fuel has reduced substantially thereby
drastically cutting down the SOx amount emitted into air. Additionally,
due to the significant energy-saving of updating the equipment, theKambara complex received “a grant for streamlining of energy use”.

Environmental auditing
Aside from the internal audits completed with ISO14001, the NLMGroup conducts regular environmental audits at 41 domestic sites* 2.
In FY2014, the audits were conducted at13 sites. The environmental
department plays a central role in visiting to run the site checks mainlyon the equipment for water quality and air. Through this auditing, theGroup strives to improve the level of production activities on theenvironmental aspect. Furthermore, the site checks have been
introduced not only to domestic sites but also to overseas sites.

Scope 2: 438,000 tons-CO2

73%

Scope 3: 2,053,000 tons-CO2

Organizational Governance• Compliance with relevant laws
• Development of environmentally-friendly
products see also our website• Approach to biodiversity

Human Rights

Use of processed
products

Commuting, Sales,
and Business trip

Scope 1 : 310,000 tons-CO2

Measures to conserve biodiversity
The NLM Group acknowledges the significance of biodiversity
conservation activities. Those in charge of environmental concerns
have provided further insights to upgrade the existing activities tosomething that all the sites are involved. The Group will proceed with
developing the activities concretely hereafter.

Environment related accidents andemergency preparedness
The NLM Group develops and operates a prompt reporting systemfor environmentally related accidents and emergency preparedness
for those accidents occurred domestically and abroad. There were no
lawsuits, penalties, or forfeitures for FY2014.

Efforts of water use
The NLM Group acknowledges the significance of water resources andworks on recognizing the amount of water intake and water discharge
in operations. Currently, the Group is able to recognize the amount ofwater discharge of the entire Group, however it is unable to completely
identify the amount of water intake. To manage overall water resources
including the amount of water intake, the Group will put in their efforts
to recognize the amount of water intake of the entire group.

Scope 3 emissions
On-site checks（thousand ton -CO2）

Expansion of calculation range for
Scope 3

Transportationof products

Scope 32020（Fiscal Year）* Target means an average value of the total 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 of ElectricPower Companies).”*1: Emission factor
The following CO2 emission conversion factor is used:
Electricity: End-use CO2 emission intensity of last fiscal year announced by the Federation ofElectric Power Companies of Japan (for FY2010 and FY2011 after reflecting credits)
Fuel: As per the enforcement regulations of April 2010 Law Concerning Promotion of
Measures to Cope with Global Warming

Transportation of
Burning of fuel at factories
raw materials
and parts

Disposal of waste
generatedby businesses

CO2 emissions by the NLM Group2005

Product users

Scope 1
Manufacturing of
raw materials
and parts

972

500

Our company

Labor Practices

Supplier businesses

Environment

The NLM Group’s FY2014 greenhouse gas emissions were 748,000
tons, a 7% increase from the year before. This increase was due to anincrease of Scope 2 emission along with a rise in emission factor*1.
• Scope 1: Amount of greenhouse gas emissions directly
produced by corporations• Scope 2: Amount of greenhouse gas emissions indirectly
produced by corporations due to their electricity
and energy usages• Scope 3: Amount of greenhouse gas emissions from supply
chain indirectly produced by corporations

Product disposal

Mining of raw materials• Improvement of environmental management
system see also our website• Promotion of environmentally-friendly
business divisions• Enhancement of resources recycling
activities see also our website• Reduction of greenhouse gases

Fair Operating Practices

Scope 2

Consumer Issues

Usage of electricity
supplied by electriccompanies

The NLM Group proactively seeks to remain in harmony
with the environment across all of our corporate activities.
The Group, as a good corporate citizen, wishes to contributeto the realization of a truly enriched society through ourenvironmental social contributions. The Group will make anenvironmental contribution not only with aluminium products
but also through proactive reduction of the environmental loadin the manufacturing process and supply chain.

Goal and results of reducing
greenhouse gas emissions

Activity Themes

Community Involvement andDevelopment

The NLM Group aims at therealization of a sustainable
society that lives together
in our global environment.

3,000

2,182

2,000

2,004

2,029

2,053

2012

2013

2014（Fiscal Year）*2 Site: Scope and unit of environmental management system to be applied

1,000
0

2011

Aluminium Properties ▶▶▶ 07 Electrical Conductivity

Aluminium Properties ▶▶▶ 08 Antimagnetic

Aluminium is able to electrify twice more efficiently than copper which weighs same as aluminium. As of now, approximately 99% of the high-voltage power lines and various other electricalconductors (plate, tube, and wire) are made out of aluminium.

Aluminium is non-magnetic thereby not affected by magnetic field. Therefore, it is used in the products including measurement hardware, such as parabola antenna and magnetic compass on
ship, medical electronics, and mechatronics device. Also, during recent years, it is used for linear motor cars and superconducting apparatus.

13

FAIR OPERATING PRACTICESHearings with suppliers
The NLM Group sends out the CSR reports to approximately 350
companies that are its major suppliers every year since 2010 toenhance the suppliers’ understanding of the CSR procurement. The
Group also conducts surveys on CSR. The content of the surveys
confirms the level of understanding of the NLM Group’s CSR principles
and checks whether they have been implemented. Many suppliers
responded to these surveys.
Moreover, starting in the year 2014, those in charge of purchasing
have started visiting suppliers, presenting the NLM Group’s CSR
activities face-to-face, and conducting hearings on customer’s status.
The suppliers provided the feedback as follows: “Even though I
have only seen the reports sent so far, I learned a lot from the face-to-

14

face explanation”, “your seriousness towards the CSR procurement
made us want to help you in whatever way possible as a supplier.”
From here on out, the Group will continue to share the principles
to the extent that it can exercise its influence over the supply chain.

Supplier's Comments

I heard a story about the CSR efforts.
We value people as a corporate asset thereby contributing
our energy to providing education to our employees. With theintroduction of the Job Card System, we have our employees
proactively participate in training workshops. We also gear
toward qualification acquisition, therefore all our employees aim
at obtaining one qualification per year.
Additionally, in terms of human rights and diversity, we consider
it is important to consider the further success of women. We provide
flexible work hours and working conditions conducive to female
employees with children. As a result, the ratio of female employees
has increased from 3% to 25%.
As for your CSR activities, the“Nikkei Festival” has been widely
recognized as an annual event in thecommunity contributing greatly in setting
the tone within the community. Also,from the opportunities you provided us
for interaction and information sharing
President & CEO
between the business partners, we
SEIKO ELECTRIC
INDUSTRIES, CO, LTDfeel that the NLM Group widely opens
a gateway for business partners and
Shizuhiro
for conducting businesses with various
Nakamura
corporations fairly and in good faith.

Organizational Governance• Not obtaining profits from sweat-shop
practices and unfair activities

Internal andexternal sharingof the CSR
procurement
principles

Procurement
compliance• Prevention of transactions with
antisocial forces see also our website• Improvement of communication

Human Rights

Fair andgood-faithprocurement• CSR-oriented procurement• Compliance with relevant laws

•Open-door policy•Compliance with the“Act against Delay in Payment of
Subcontract Proceeds to
Subcontractors”•Compliance with laws related exports

Participation in international efforts

Protection of Intellectual Property

The NLM Group serves on the board of IAI (International Aluminium
Institute). Its aims are to send CSR out to the world, together withaluminium-related corporations around the world. The Group
promotes the activities to address major tasks in recent years to “takeAluminium Stewardship Initiative” and to “create Aluminium for Future
Generation.” In particular, the Group has moved ahead with theactivities at the following five committees:

The NLM Group protects and utilizes its accomplishments of researchand development activities under the intellectual property rights. The
Group addresses the protection of intellectual property throughrespecting the third-party’s intellectual property rights. During adeveloping phase of new products, each business division, R&D
department, and intellectual property department together conduct aprior-art search, they then file its technology and acquire the rights.
In developing a joint enterprise with local companies abroad, theGroup proactively proceeds with acquiring the intellectual property
rights needed in such country and works on avoiding technologicalleakage in the contracting process.

❶ PR/Promotion committee: This committee performs various
activities including awareness building for the aluminium industry
to continue to evolve into the future. Also, it is committed toenhancing the website so that general users can navigate
through material information on aluminium.
http://www.world-aluminium.org/❷Environment/Energy committee: This committee proceedswith quantification and improvement of major themes, including
the environmental impact of aluminium manufacturing process
and the reduction of such impacts, reduced energy use,and product life cycle analysis, in search for environmental
friendliness for the earth.
❸H ealth committee: This committee facilitates activities
emphasizing aluminium and health related issues.
❹B auxite Alumina committee: This committee works
together with research institutes at universities in order to bringabout a better environment for the world in terms of alumina
manufacturing.
❺ Safety committee: This committee encourages awarenessbuilding activities to further improve working environments andsafety management in the aluminium industry.

Labor Practices•Collection and sharing of
information on antisocial forces•Environmental friendliness•Contained chemical substances•Human rights oriented procurement•Responses to conflict minerals

Environment

The NLM Group shares its compliance rules with its suppliers that
focus on “fair and good-faith procurement”, “prevention oftransactions with antisocial forces”, “CSR-oriented procurement”,
and “procurement compliance”, as CSR procurement principles.
Although the rules range from considerations for environment andhuman rights to compliance, the Group promotes practicing of theprinciples through daily communication.
In FY2014, for the purposes of disseminating the CSR
procurement to those in charge of purchasing at the group companies,
a new website on the CSR procurement was established on theintranet. In addition to customer and market information, explanations
on the CSR procurement have been included. Notice of briefing
sessions on the “Act against Delay in Payment of Subcontract
Proceeds to Subcontractors” as well as relevant instruction manuals
have been provided through the website. Furthermore, with a renewalof the purchase system, a system to disable any entries of terms ofbusinesses violating the law has been introduced in order to prevent
violation of law.

Eliminationof antisocial
forcesCSR oriented
procurement

Fair Operating Practices

CSR Procurement•Clear indication of
the CSR procurement policy•Sharing of the CSR principles
at the time of selecting
a business partner

Activity Themes

Approach to fair trade businessNippon Light Metal Co., Ltd. joins AEO*1 system of global standards inimport procurement and works towards safety and smooth handlingof international trading as a special importer. Moreover, to conduct fairtrade business, a “committee of customs clearance management”
has been established and supervises the trading business at eachdepartment.
In FY2014, an operational audit was conducted for all
departments involved in import and export businesses. In theoperation audit, the control environment for legal compliance, cargosafety, and management of outsourcing contractors were reviewed
and business improvement instructions have been given as needed.
Also, the results of audit and business improvement instruction areshared internally as well as reported as appropriate to the Yokohama
Customs office which is accredited by AEO.

Consumer Issues

The NLM Group acts upon the “Group Compliance
Codes”, a code of conduct for all the officers andemployees to ensure compliance. Our compliance is not
only limited to legal compliance but to implementation offair and good-faith business activities as a whole. Dueto these efforts, the Group’s actions to expand throughthe supply chain and international activities have begun.

Internal and external sharing of the CSR procurement principles

Community Involvement andDevelopment

The NLM Group will comply
with relevant laws andmaintain its business activities
fairly and in good faith.

*1 AEO: an abbreviation for “Authorized Economic Operator” and refers to a system of
acknowledgment which is awarded only to those businesses with improved
systems of security management and legal compliance.

Aluminium Properties ▶▶▶ 09 Resource Reserve

Aluminium Properties ▶▶▶ 10 Low-temperature ResistanceBauxite, a raw material for aluminium, is the third most of all the elements included in the earth’s crust, followed by oxygen and silicon. Its abundance ranks the first of all the metallic resources.

Regardless of cryogenic status of liquid nitrogen (-196 ), aluminium hardly wears thin due to its predisposition. This property is taken advantage in the cutting-edge area of space development,
biotechnology, and cryogenic superconductivity.

15

CONSUMER ISSUES

Organizational Governance•Strengthening of quality management
systemsee also our website•Developmentof quality assurance
system•Compliance with relevant laws
•Indication of proper use of products
See our website

Human Rights

Group Quality Committee

The NLM Group implements the “independent study group for
quality improvement (Hinshitsu Jishuken)”. In this activity, one of
the factories at each group company is designated as a field site.
Members from other factories address quality issues of thatfactory, thereby actually improving the quality of products at thesite. This activity enables people to develop their abilities to identify
an issue and learn the procedure through actually making
improvements.
Six activities were conducted during FY2014 and a total of 73
people participated. In Hinshitsu Jishuken, members canexperience what they cannot normally experience through theirnormal work routines since a factory at another department or inother industries are used as a training center. Furthermore,participants are selected from various departments and industriesof the NLM Group and they are able to utilize their own experiences
to suggest the planned improvements. Therefore, the activity isbeneficial for both factories and participants.
The NLM Group will continue with increasing the level ofquality control through Hinshitsu Jishuken.

Comments from the Office

Towards simultaneous pursuit of quality
improvement and personnel development
Environment

Upskilling program for quality
improvement

Labor Practices

Chairperson: General Manager ofCentral Product Safety &Quality Assurance Division
Members: Those appointed by Quality
Assurance and Control Manager
at each division/company.

Hinshitsu Jishuken aims at both quality improvement for the productionlines having issues as well as personnel development for the person in
charge of quality improvement by applying the independent study
group’s approach, which is implemented for improving production lines,
to quality improvement. Those who are involved in a certain line usuallyparticipate in the improvement activities. However, the members who are
not directly related to that line gather together to bring together various
perspectives and knowledge and also realize
unexpected solutions and effects.
However, there is not always a good thing.
It puts a heavy strain on those people involvedin achieving quality above a certain levelwithin a limited time frame. On top of that,
there is no limit to their worries such as
deciding whether to prioritize, the results of
Deputy General Manager
improvement or personnel development. Central Product Safety & Quality
Even though this activity just started a little Assurance Administration Department
Nippon Light Metal Co., Ltd.
over a year ago, we will continue constant
Masanori
quality it and personnel development throughOguni
this approach.

Fair Operating Practices

The NLM Group mainly manufactures and sells products usingaluminium and aluminium alloys. Although aluminium itself is a
soft metal, it changes into aluminium alloys with various featureswith the addition of other metallic elements such as silicone, steel,copper, and magnesium. The additive amount needs to be
managed in general at a unit ranging from a hundredth part to one
millionth part. Thus, to confirm whether the additive elements arecontained at a proper amount, testing is done by using a method
called “emission spectroscopy”. Moreover, in order to check to see
if the manufactured aluminium alloy possesses a designated levelof performance, “tension testing” is run to verify mechanicalperformances including tension strength and stretch.
Special equipment is used for each test, but the errors in theequipment itself could serve as a potential problem in order tomanage the element of a millionth unit. Annual cross-checking of
the emission spectroscopy and tension testing is done between
bases to ensure the accuracy of compositional analyses andmechanical testing by the NLM Group without overlooking theseerrors in the equipment. A cross-check is run for the same analyses
and testing of the same materials under the same conditions
among multiple bases. This allows us to detect even a slightdifference. Reflecting upon the results of correction made to theequipment allows for improvement in the accuracy of analysis.
A cross-check was done at 14 bases for emission
spectroscopy and 18 bases for tension testing in FY2014. No
problems were found at any of the bases.

Activity Themes

Community Involvement andDevelopment

Analysis/testing structures

Central Product Safety &Quality Assurance Division
Operation

Appointment

Quality Assurance andControl Manager

Group Company

Group Company

Group Company

At the NLM Group, Purchasing, Quality Assurance and Environmental
Conservation departments have been working together to strengthen
the management of chemical substances in products to properly
comply with the day-to-day strengthening of laws and regulations
concerning chemical substances in products.
In FY2014, to promote a group-wide reinforcement of theapproaches for the RoHS Directive* 1 and REACH * 2 of Europe thatthe group companies have individually dealt with thus far, the Grouphas instituted the “Group’s management regulations on contained
chemical substances in products” and prepared the manuals thatsummarizes reviews of chemical substances in products andinstructions on procedures for certificate issuance. Additionally, theGroup works on improving the group-wide management standards
by providing briefing sessions for the group companies.

Procurement

Group Company

Efforts on management of chemical
substances in products

Manufacturing

Group Company

See our website
http://www.nikkeikinholdings.com/csr/social/p1.html

Supervision

Group Company

The NLM Group continues with quality assurance and management
activities in accordance with its quality policies. The Group has
established the “Central Product Safety & Quality Assurance
Division” directly controlled by the president of Nippon Light Metal
Holdings., Co. Ltd as well as the “Group Quality Committee”
consisting of members from the group companies. It develops
annual quality policies, discusses quality problems and sharesinformation.

President

DesignLogistics

Group Company

Policies and Systems on Quality
Assurance/Management Activities

Nippon Light Metal Holdings Company, Ltd.

Group Company

To provide products and services that are safe and meet thecustomers’ expectations, the NLM Group targets its entire
process, ranging from development/design to manufacturing
and delivery, to quality assurance and management activities.
Although metal materials realize various performances
depending on the designs, we are also aware that they also
contain risks to diminish the significant functions of the
products. Therefore, we are working towards improving thecapacity of steady quality management and self-validation.

Organizational Structure for Quality Assurance/Quality Control activities
Development

Consumer Issues

The NLM Group is committed
to assuring quality andsafety in its entire process.

*1 RoHS Directive:An acronym of “Restriction of the use of certain Hazardous Substancesin electrical and electronic equipment directive.”*2 REACH:An acronym of “Registration, Evaluation, Authorization, and Restriction ofChemicals.”On-site activities

16

Discussion

Presentation Meeting

Aluminium Properties ▶▶▶ 11 High Reflectivity

Aluminium Properties ▶▶▶ 12 High Mechanical Strength

Polished aluminium has a property to reflect the rays including infrared light and ultraviolet light as well as electromagnetic rays radiated from radio and radar. This property is utilized in lighting
equipment, spacesuits, and optical electronics products.

On top of originally having high specific strength (strength per unit weight), aluminium can increase the strength even more by adding other metals to alloy or fabricating or administering heat
treatments. Thus, it is often used for structural materials in transport machinery, buildings and plants.

17

COMMUNITY INVOLVEMENT AND DEVELOPMENTNLM Group Social Contribution Accounting (FY2014)

Toyo Aluminium K.K. actively participates in exhibitions held at themuseums of industry and technology and such in various regions ofJapan for the purposes of contributing to cultivating the nextgeneration engineers with its products and technologies. During
FY2014, they participated in the planned exhibition, “Mimicking
creatures – Nature Technology”, held at the Gunma Museum of
Natural History and “Learn from designs of living organisms –Biomimetics*1 for creating the future” held at the Chiba Museum of
Science and Industry where it displayed “TOYAL LOTUS®”, a waterrepellent packaging material developed from taking the ideas of thewater-repellent mechanism of lotus leaves as a reference.
*1 Biomimetics: Bio-mimicry; the technology to scientifically mimic and use various
biological mechanisms.

Exhibition Site

TOYAL LOTUS®

Support for the cultural activities
Kambara Complex of Nippon Light Metal Company, Ltd., donatedthree musical instruments (a clarinet, drum set, and euphonium) tothe brass band club, Kambara Junior High School in order to improve
local community activities. Kambara Junior High School is locatedadjacent to the Kambara Complex. Many of the employees there
graduated from Kambara Junior High School and their families haveentered the same school, thereby maintaining a strong relationship.
Furthermore, they actively communicate with one another on a daily
basis. A donation ceremony was held as the brass band club18

Education/
Social Education

Environmental
Contribution,
Protectionof Biodiversity

121million yen

Academic/Research

14%

members and teachers watched.
Then, the brass band presented
their musical performance using the
new musical instruments. Throughthese efforts, the NLM Group
provides support for theenhancement of cultural activities
in education.

Pro Bono*2 Activities in the Local
Community
Nippon Light Metal’s Shimizu Plant, upon request from “Minato Fuji
Preparatory Office”, a private organization who works to revitalize thesurrounding areas of Shimizu Port, held a plant tour for approximately
twenty people including elementary school students and theirparents/guardians in the neighborhood in July, 2014. Moreover, theplant sent two employees as instructors to a talk session which was
subsequently held after the plant tour.
Those employees sent as instructors explained “the descriptionsof their job”, “how the products manufactured at the plant become
useful in life”, and so forth. Additionally, they engaged in an active
dialogue with the participants on “the meaning of working locally in
Shimizu”, “the ideal involvement of corporation and local community”,“the future of Shimizu” and so forth.
*2 Pro Bono: Social action program conducted by specialists from various fields utilizing
their knowledge, skills and experiences obtained through work.

Lecture34%

Activities in
Local Community,
Preservation ofHistorical sites andtraditional cultures

28%

Relationship with Local People

At the donation ceremony

Each year the NLM Group participates in the Niigata Festival. In
2014, a total of 231 employees participated in the event. Morethan 13,000 dancers joined one of the festival’s main events
known as “Dai minyo Nagashi (folk dance procession)”, which begins at Niigata’s symbolic Bandai Bridge. The NLM has one of thelargest contingents of all participating organizations and was able
to dance on Bandai Bridge for five consecutive years.
Nippon Light Metal’s Nagoya Plant hosts “Nikkei Bazaar” annually. Nagoya Plant is located adjacentto the residential area, therefore “Nikkei Bazaar” is held every year as agood opportunity for exchange with theresidents. Last year was the 27th BaNikkei Bazaar
zaar.

Protecting Employees from Tsunami
NLM Group ran a full check on
countermeasures against Tsunami at
240 domestic bases of its groupcompanies as part of the disasterprevention measures of the businessoffices. As for those sites anticipated to
Safety check on the evacuation site
be flooded, the checks on safety of the(Shimizu Plant)
evacuation sites and emergency
stockpiling were performed. Thus, the Group moves forward with
its efforts against disasters to not lose any employees fromTsunami.

Shimizu Plant Tour•Social Contribution

Human Rights

Total expenditure•Educational and cultural contributions•Local Community Relations

Labor Practices

10%

Organizational Governance

9%Award Acceptance in Thailand
Nikkei Siam Aluminium Limited (Thailand) was highly recognized
for their approach to environmental issues by the Ministry of Industry in Thailand and received a “Metal Industry Clean Award” inDecember, 2014. Also, they accepted the “Excellence Labour Relations & Welfare Award” from thePrime Minister of Thailand for five
years in a row. This indicates thatthey received recognition for thegood labor management.

Environment

Towards development of the next
generation of engineers

4%

Award acceptance
Fair Operating Practices

The NLM Group, as a community member, makes aneffort to enhance active communication with the local
community in various regions around the world and aspires
to contribute to community development. The NLM Group
strives to be a corporation group that can be of assistanceto people, the environment, culture, education and various
other areas in the community to include both emergency
and usual situations.

Other

Local Cleanup Activity
The NLM Group actively joins the
local cleanup at each business site.
About 3,200 people joined thecleanup of the roads, rivers, andbeaches around the plants in
FY2014.

Cleanup around the Tomakomaicomplex

Consumer Issues

Health/Medical, Sports

Activity Themes

Reconstruction Support for the Great
East Japan Earthquake
Nippon Fruehauf Company, Ltd. participatedin the Aizu Festival held in Aizu Wakamatsu
City in September, 2014, as their efforts toprovide the reconstruction support for the
Look of ROSE MOTIVEGreat East Japan Earthquake and displayed
the “ROSE MOTIVE”, a transparent container decorated with roses.
Many of those who evacuated from Okuma-cho, Futaba-gun,
Fukushima Prefecture came to join the festival. Furthermore, theNippon Fruehauf sold rose tea and cookies of which sales werepartially brought to Okuma-cho as relief money.

Aluminium Properties ▶▶▶ 13 Vacuum Property

Aluminium Properties ▶▶▶ 14 Landscape Property

Aluminium excels other materials in the ultimate vacuum performance since its gas release rate from the metal itself is particularly low. Therefore, it is utilized for vacuum tube pump, high vacuum
semiconductor equipment, and laboratory rooms.

Aluminium is beautiful metal as it is, however it becomes even more beautiful when surface finishing is performed on it including anodized treatment. By making the best use of properties,
aluminium is used for urban landscape materials and civil engineering and construction materials.

Community Involvement andDevelopment

We actively seek to enhancecommunication with thelocal community.

19

CORPORATE PROFILE■ Feedback on CSR Report 2014 and the NLM Group’s responses

Corporate Name

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

Date of Foundation

October 1, 2012

Certification Code5703

Capital39,085 million yen (consolidated)Feedback

Nippon Light Metal Holdings Company, Ltd.

Headquarter Office

2-2-20 Higashi Shinagawa, Shinagawa-ku, TokyoSales

431,477 million yen (consolidated)

Number of Employees

13,335 (consolidated)

Sales trend (consolidated)

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

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

NLM

250

NLM Holdings

4,000

200

3,000

150

2,000

100

1,000

50
0

2010

We incorporated the human rights due diligence concerning supply chain into our
CSR promotion plan.

WEB

Perform due diligence concerning supply chain ….(snip)…CSR division and As an origin of the efforts, we performed the human rights due diligence for
Procurement division need to collaborate in setting out to perform.
aluminium refinery, the main materials of our groups.

P8

We want the NLM group to step up its solid efforts to provide opportunities for Aside from hiring and recruitment, we support network-building within each groupdiverse human resources to demonstrate their skills.
such as women, foreigners, and individuals with disabilities

P10

About the efforts on the “environment”*All data as of FY2014 or March, 2015.

0

Page

Need to describe action steps in a more concrete picture

English Corporate
Name

5,000

NLM Group’s responses

About the efforts on “human rights”

2011 201220132014 (Fiscal Year)(100 million yen)

NLM

120

NLM Holdings

NLM

NLM Holdings

90

We are working towards controlling emissions per basic unit including fuel change
Further efforts are expected for the NLM Group to reach the target level in terms ofand introduction of energy burner. The emissions exceeding these reduction occurred
several items concerning the energy use, etc.
last year due to the increase in production and the NOx emissions increased.

P13

We investigated a category other than the category 4 for the first time. We will also
The efforts in understanding and reducing the Scope 3… (snip)… are expected tocontinue with expanding the categories by increasing accuracy and engaging in the
expand the target to the supply chain as a whole.
GHG reduction at supply chain.

P12

60
30
2010

2011

2012

2013

2014 (Fiscal Year)

0

2010

2011

2012

2013

2014(Fiscal Year)

THIRD-PARTY OPINION:

Business Summary● Alumina, Chemicals, and Ingot Business

Sales
Operating Profit(million yen)

Component ratio of Sales: 26.5%
120,000

8,000

90,0006,000

60,0004,000

30,0002,000

0(Sales)● Sheet and Extrusion Products Business

Sales

2012

2013

Component ratio of Sales: 19.2%

Sales: 82,823 million yen

Operating Profit(million yen)
90,0006,000

60,0004,000

30,0002,000

0● Fabricated Products and Other Businesses

Sales

2012

2013

Component ratio of Sales: 32.0%02014 (Operating Profit)

160,000

10,0007,500

80,0005,000

40,0002,500

0● Foil and Powder Products Businesses

Sales

2012

2013

Component ratio of Sales: 22.3%

02014 (Operating Profit)

6,000

Operating Profit(million yen)
80,0004,000

40,000

2,000

0

0
2012

2013

The NLM Group has many group companies that deal withcharacteristic fabricated products. In particular, truck body by
Nippon Fruehauf Co., Ltd. and commercial refrigerator andfreezer panels by Nikkei Panel System Co., Ltd. are highly valued
for their quality thereby occupying a top share. In addition, the
NLM supplies aluminium fabricated products closely related toeveryday life including anodized aluminium foil for aluminium
electrolytic capacitors, automotive parts, and carbon products.

Sales: 96,227 million yen

120,000(Sales)

Aluminium sheets and extrusion products are used in all fields– for automotive parts and railway cars in the transport industry
and for semiconductor/liquid-crystal manufacturing equipment
and photosensitive drums in the electrical and electronics
industry. The NLM Group makes use of its many years oftechnology and know-how to proactively develop products thatmeet customers’ needs and to supply highly-functional sheetsand extrusion products.

Sales: 138,088 million yen

Operating Profit(million yen)
120,000(Sales)

Alumina and Chemicals Division manufactures aluminiumhydroxide, alumina and various other chemicals, which are usedin various ways including fire retardants and raw materials forceramics and plant materials for the manufacturing of pulp andpaper. The Ingot Division manufactures a variety aluminium ingots
and is highly recognized for the development of highly-functional
ingot to respond to customers’ needs.

02014 (Operating Profit)

8,000

120,000(Sales)

20

Sales: 114,339 million yen-2,0002014 (Operating Profit)

Toyo Aluminium K.K. plays a central role in these businesses.
They have been developing a wide range of products
incorporating aluminium special characteristics that are useful
in society, industry and everyday life, including packaging forfoodstuffs and pharmaceuticals, base materials for electronicparts, aluminium paste, and solar cell materials, as a leadingaluminium producer. They develop a new field utilizing their own
technology as a foundation to provide various highly-functional
materials and products to the domestic and overseas market.

Consulting Fellow,
Research Institute of Economy,
Trade and Industry

Mr. Toshihiko Fujii

This year’s CSR report by the NLM Group successfully communicates theirdiverse relationships with society more clearly and inclusively than last year’s
report. Following an example of inclusiveness as one of its characteristics,
I would like to provide my feedback from metaphysics-perspective as
much as possible. I would be happy to make some contributions in further
deepening the NLM Group’s CSR.
Imagine you have three balls in front of you. Each ball is marked as“Corporation”, “Products/Services”, and “Society”. I would like to analyze the
CSR efforts based on three patterns that these balls represent.
1. “Company” → “Products/Services” → “Society”
Company is linked with society through its products and services. Products
and services are one of the important paths for corporate social contribution.
Three cases brought up in “the feature” in the report present eloquently how
the NLM Group’s technical capabilities can make our society better. Eithercase presents an interesting story.
If I can talk about one point to remember for the preparation of reports
in the future, it is about differentiating the fulfillment of legal obligation fromthe accomplishment of social responsibilities. Both are certainly sequential
but not the same. Regulatory compliance, though it requires a great deal ofefforts, it should not be identified easily with social responsibility practices
because responsibility exists in the territory beyond obligations.
* Articles of “the feature” are omitted in English edition on account of space considerations

2. “Society”→ “Company”→ “Products/Services”
In response to changing needs in society, a company delivers products/
services while changing and improving its own business method. The
efforts on CSR procurement, human rights due diligence, and reduction ofgreenhouse gas emissions apply to this relational aspect between society
and company. I want to recognize each of the following as meaningfulprogress: the website launch on intranet and the hearings with thecustomers as reinforcement for efforts throughout the group in terms of the
CSR procurement and the expansion of grasp range of Scope 3 concerning
the greenhouse emissions.
Human rights due diligence is a matter which will enhance its
importance rapidly from here on. While welcoming the written surveys to the
upstream supplier, the expansion of survey range and ongoing monitoring
are required as stated in the report. Society keeps changing itself. Therefore,
a company also needs to keep changing.
3. “Company”→“Society”→ “Products/Services”
Social-and environmentally- friendly products and services do notnecessarily create popularity per se. It is necessary to create social
inevitability which accepts good products and services in cooperation withsociety. This is the newest aspect of CSR.
President Okamoto emphasizes that the Group continues with “theapplication development of aluminium and aluminium –related materials”.
Therefore, to create a society in which aluminium is widely used together
with stakeholders becomes the heart of this relationship between company
and society for the NLM Group. This requires one to see beyond customers’
expectations and market conditions. What I consider most important is theapproach, “Let’s make and grab! The NLM Group”. I would indeed like theGroup to “go beyond the limit of one’s thinking”.
That is to perceive society as plastic, not simply as data. Going back to
the examples chosen in the feature, “NEQRES”, our new earthquake-resistantceiling was introduced in “Creating the disaster-resistant future” The newquake-resistant standards generated a popularity with this product. Aren’t
there any products requiring stronger quake-resistance strength in different
areas? Or do other countries need the standards of the same sort? If so, theGroup should develop such standards with the assistance of society. This
will help to make the socially meaningful application of aluminium to prevail.
The NLM Group’s technology will be utilized, and society will become safer. I
believe that that is where the integration of CSR and business exists.
I have taken a step back and used my overview to offer commentaryon this year’s CSR report. As a whole, I want to show appreciation for steadyprogress seen from the last year’s report. At the same time, what I wantto point out as future tasks is to come out with a direction more clearly as
to what the CSR activities aim for as well as how to better integrate the
CSR activities with business. The three relations above are examples of themethod to dynamically figure out CSR in the relationship between company
and society. There may be various other ideas. At all events, with regard to
how the company constructs its relationship with society in a long run, it isdesirable for individual efforts to be positioned and recognized in a bigger
context.
I am looking to see even bigger progress in next year’s report.

21

DATA
Greenhouse Gas Emissions

Organizational GovernanceYear-end dividend per share (March)(Yen)

Nippon Light Metal
Company, Ltd.

Nippon Light Metal Holdings Company, Ltd.

Year

2011

2012

2013

2014

2015

Dividend

2

2

3

4

5

1,143

Japan
Full-time directors

Employees

Managerial
positions
Regular
Employee

Asia

U.S./Europe

Total

152

18

5

175*1

Male

1,317

170

33

1,520

Female

21

31

4

56

Male

6,464

2,629

208

9,301

Female

1,060

1,361

37

2,458

8,862

4,191

282

13,335

Total

2.07

2.0

1.92

1.91

1.89

2.0

1.5 1.28

1.5

1.0

1.0

0.5

0.5

0

0

2011 2012 2013 2014 2015

1.94

2.06

2.05

1.48

0

2005

（Baseline）

2011 2012 2013 2014

(Employees)

2013

2014

入社年月

Number

161

140

76

Retention rate

2012

2013

2014

2

8

16

97.2

Category 2 Capital goods

10

0.5

Category 3 Fuel and energy not included in Scope 1 & 2.

31

1.5

0.5
0

0.54
2010

1.17
1.00

0.71

0.35
2011

0

2.2
2013

（Baseline）

97.1

93.2

2012

0.33
2013

Investment

Expenditure

Pollution prevention cost

543

1,114

Environmental conservation cost

930

111

Resource circulation cost

45

1,097

Upstream/Downstream costs

0
8

62

1,526

5,053

2. Economic Effect of Environmental Conservation Activities
Changes in Earnings*3*4 (Million yen)
Earnings(Million yen)
Earnings from recycling waste
produced in the course ofmain business activities andrecycling of used products

2005

2010

2011

2012

2013

2010

2011

2012

2013

2014

Electricity

13.7

11.4

8.2

7.8

7.5

Fuel

6.4

6.3

5.8

5.0

5.2

76

2014

2020

（Target）*3：Changes in expenditures are calculated using thefollowing methods:
Changes in expenditures = expenditures incurred
during a base period (FY2013) – expenditures
incurred during current year (FY2014)

Details

Total

Energy expenditures-609

Water expenditures

1

Waste disposal expenditures

156

VOC* disposal expenditures

35

Legally required contributions
for the reduction of designatedenvironmentally harmful
substances (Example: SOx
pollution levy)

2

Total

-415

5

0.89
0.51
0.50

NOx emissions

(ton)

719
422

480※2
455 443
380 396370

372 372 379 370 350

Environmental Conservation Expenditures(Million yen)

(Investment amount)

1,542

1,615

1,526

(Million yen)

(Cost)

6,639

2005 2010 2011 2012 2013 2014 2020

Acquisition of Environmental Qualifications（Target）

5（Target）*2：Increase in NOx is partially due to theincrease in high-value added products in
production at the office(Employees)

Number of Employees
81
136
22
22
30
42
19
12
144

2005 2010 2011 2012 2013 2014 2020

（Baseline）

5,908

1,014

Total emissions
33.8
28.1

30.9 29.0

3(Million m )27.9 26.3 27

COD emissions

(ton)

116

110

2011

2012

2013

2014

2011

2012

5,053

79

93

2013

（Baseline）（Target）（Baseline）

0.0

1

0.0

0.0

0.0

13

109 Ortho-Chlorotoluene

16

2

0.0

0.0

0.0

0.0
0.0

185

HCFC-225

186 Methylene Chloride

140

4

0.0

0.0

0.0

0.0

13,000

0.0

0.0

0.0

0.0

0.0

85,000

0.0

0.0

0.0

0.0

4,700

243

Dioxin, etc.

1,345

0.0

0.0

0.0

0.0

19

273

N-dodecyl alcohol

17,341

0.0

0.0

0.0

0.0

4,010

281

Trichloethylene

0.0

3,900

0.0

0.0

0.0

0.0

Toluene154,052

9

0.0

0.0

0.0 135,210

308

Nickel

0.1

6

0.0

0.0

0.0

56

309

Nickel compound

0.0

0.0

0.0

0.0

27

525

349

Phenol

360

12

0.0

0.0

0.0

0.0
0.0

Hydrogen Fluoride and374
its water-soluble salt

4,410

1

0.0

0.0

0.0

0.0

384

1-Bromopropane

24,000

0.0

0.0

0.0

0.0

0.0

392

N-hexane

3,824

0.0

0.0

0.0

0.0

600

92 18,000

0.0

0.0

847

2,535

405

boron compound

412

Manganese and its
compound

0.4

0.0

0.0

0.0

0.0

4

438

Methylnaphthalene

446

0.0

0.0

0.0

0.0

0.0

448

Methlenebis(4.1Phenylene)=
Diisocyanate

9

0.0

0.0

0.0

0.0

86

Number of cases of lawsuits, penalties, or forfeitures concerning environment
Fiscal Year

2010

2011

2012

2013

2014

Number of cases

0

0

0

0

0

Fiscal Year

2012

2013

2014

Number of cases

13

10

7

Fiscal Year

2012

2013

2014

Number of meetings held

1,435

1,623

1,874

Number of participants

15,354

17,136

18,547(Earnings)

382(Million yen)

357

(Changes in Expenditures)

2011

2012

122

Number of legal violations in the delivery of products/services(Million yen)

2013

2014

-350

-415

76
2012

2013

2014

-1,033* – (minus) indicates an increase in expenditures

2005 2010 2011 2012 2013 2014 2020

0.0

Consumer Issues

20112005 2010 2011 2012 2013 2014 2020

0.0

2014

Economic Effect of Environmental Conservation Activities

-246
110
97 1010.0

Compliance Meeting

7,145

2014
（Baseline）

0.0

Number of cases reported through the compliance Hotline*5：Volatile Organic Compounds

(ton)

180

Fair Operating Practices*4：－(minus) indicates an increase in expenditures

720

1.06

76

Total

5

CumeneChrome and Trivalent87
chrome compound

297 1.3.5-Trimethyl benzene

0

12

83

300

Environmental remediation costs

Total

3,432

149

0.0

12.7

0.0 11,098

303

1

12.8

0.0

0.0

0.0

Category 7 Employees’ commuting

10

0.0

0.0

0.0 20,135

14

15

0.0

7

0.0

2,203

14.0

0.0

40,562

0.0

0

17.7

25,122

Xylene0.0020Ethyl Benzene

0.0Social activity costs

Details

53
80

0.0

R & D costs

20.1

OutsideSewage businessofficeLandfill

0.0

0.0

21.8

Soil

4,100

0.2

（PJ）

Moving quantity

Business office296 1.2.4-Trimethyl benzene 11,371

025

PublicAtmosphere water
district

165 2.4 Dichlorotoluene(Million yen)

5

92.9

Environment
Name of Qualification
Atmosphere
Water Quality
Noise
Pollution Control Manager
Shake
Noise/Shake
Dioxin, etc.
General Powder Dust
Qualified Engineer of the Industrial Waste Treatment Facility
Qualified Manager of the
Non-infectious waste
Specially Controlled Industrial
Wastes Subject to Special Control Infectious waste
Qualified Person for Energy
Heat/Electricity
Management
Density-related
Environmental Measurer
Noise/Shake-related（Target）

Category 6 Business trip

Japan Aluminium Association average
Nippon Light Metal Group average

0.65
0.64

3
2020

Environmental Accounting

Costs incurred within
business area

(%)

0.94

2.0
2014

Category 5 Industrial Waste(%)*Accident requiring more than one day of absence (excluding accident on the way to work)

22

3.5
2012

29

0.5

SOx emissions

0.52 0.84

2.9
2011

38.7

11

（Baseline）

Manufacturing industry average
Nippon Light Metal Co, Ltd. average

0.54

34.3

32

Category 4 Freight, Shipping (Upstream)

2010/04 2011/04 2012/04

Occupational accident frequency rate

1.00

3.4
2010

28.6

(kg) mg-TEQ for Dioxin, etc.

EmissionsManagement costs

Labor Practices

1.05

6.6
2005

27.0

Category

1,996

0Number33.7

32.1■Class 1 Designated Chemical Substances

FY2014 Emissions of Substances
controlled under the PRTR
No. Name of Substances

10

2020

（Target）

Rate (%)(Employees)

Fiscal Year

0.98

2014

Emissions(thousand ton)*Rate of employees in office on April 1st
three years after joining the company

Number of employees taking
childcare leave

1.0

2013

2015

(Nippon Light Metal Co, Ltd.)

2012

1.5

2012

* Target value means an average value of five years from FY2018-2022. 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 of Electric Power Companies)”.

Retention rate three years after
joining the company

Fiscal Year

2.0

2011

Energy use

Number of the re-employed
after retirement(Nippon Light Metal Co, Ltd.)

2010

28.3

29.9

Disposed (landfill)

40.7

36.5

Total

*As per data at June 1 each year

(Nippon Light Metal Co, Ltd.)

30
20

Category name

(%)

2.09

748

695

37.1

34.9

Breakdown of FY2014 Scope 3 emissions（Toyo Aluminium K.K.）

2.5

745

Category 1 Products/Services purchased

Employment Rate of People with Disabilities
2.5

779

40

（thousand ton）

Recycled/Reduced

1. Environmental Conservation Expenditure*1：The percentage of female in director positions is approximately 0.6%

（Nippon Light Metal Co, Ltd.）

972

871

500

(Employees)

Emissions and Disposal of Waste and Waste Byproducts
50

1,000

Human Rights
Number of employees by country/region(thousand ton – CO2)

1,500

Fiscal Year

2010

2011

2012

2013

2014

Number of violations

0

0

0

0

0

Community Involvement and development
Social Contribution Expenses(Million yen)

Fiscal Year

2012

2013

2014

Expenses

71

95

121

（Target）

85
1
0

23

CONTACT INFORMATION

Nippon Light Metal Holdings Company, Ltd.
CSR Contact, CSR & Auditing Administration Department
Tennozu Yusen Bldg, 2-2-20 Higashi Shinagawa, Shinagawa-ku, Tokyo, 140-8628
Phone: 03-5461-8645
Fax: 03-5461-9188