CSR REPORT2018
CORPORATE SOCIALRESPONSIBILITY REPORTGiving shape to our vision

Through and Through Nikkeikin

CONTACT INFORMATION

Nippon Light Metal Holdings Company, Ltd.
CSR Contact, Central CSR and Audit OfficeTennozu Yusen Bldg, 2-2-20 Higashi Shinagawa, Shinagawa-ku,
Tokyo, 140-8628
TEL.03-5461-8645 FAX.03-5461-9188
http://www.nikkeikinholdings.co.jp

This printed product was
manufactured by using
environmentally friendly
materials at anenvironmentally friendly
factory.

This booklet was printed
with an environmentallyfriendly ink that contains novolatile organic compound(VOC).

This printed material uses
FSC® certified paper
containing raw materials fromwell-managed forests.

Table of Contents

3
4

Editorial policy / Reporting media of CSR information
Interview with CEO

Special Features

6
8
10
12
14

Giving shape to our vision
A vision of delivering reliable drinking water
A vision of reducing food loss with cold chains
Vision of stopping global warming with a new form of recycling
Vision of creating safe, secure infrastructure for the future generations

Main Chapters

16	Aiming to realize a sustainable society by co-existing in harmony with the global environment
18 Environmental initiatives in the Kingdom of Thailand
20 Building an inclusive society
22 The NLM Group supports working mothers.
23 Aiming for complete zero accidents
24 Tireless efforts to maintain and foster high quality
26 Initiatives we take in local communities to support human resource development
27 Aiming for trusted governance and cooperation within the group
29 Activating communication in Team NLM!
30
31
32
33
34

2

Reporting media of CSR information

Editorial policy
Introduction
The aim of this CSR Report 2018 of the Nippon Light Metal(NLM) Group is to ensure that the NLM Group’s CSR-related
approach and initiatives are understood by our stakeholders byreporting them in a way that it is easy to understand.
The NLM Group recognizes the social issues that are basedon the core subjects of ISO 26000. We are also aware of theincrease in ESG investments as a recent trend and global initiatives including SDGs. We pursue CSR initiatives that help to solvethese issues. We would appreciate it if you would read about theinitiatives we take to address each of the issues and provide us
with opinions and comments.

This report describes the CSR initiatives that we took in
FY2017. More details about our CSR initiatives, past initiatives,
financial information, and further information are available on our
official website.
Non-financial information●C SR Report(Brochure/PDF)●W ebsite

http://www.nikkeikinholdings.com/csr/

Reference guidelines
This report was created by referring to the Environmental
Reporting Guidelines 2012 (Ministry of the Environment) and the
Global Reporting Initiative (GRI) Standards.
Period covered
Data for the report were collected between April 2017 andMarch 2018.
*Data collected before or after this period are also used in some sections of this report.

Financial information●Website

http://www.nikkeikinholdings.co.jp/ir/ir-data/●Annual Report●Fact Book

●Shareholders Report

Scope of the report
This report describes the activities of and facts about Nippon
Light Metal Holdings Co., Ltd. and its 76 consolidated subsidiaries(a total of 77 companies) unless otherwise specified.
Period of issuance
October 2018 (Next report: To be issued in October 2019;
Previous report: Issued in October 2017)
Independent assurance
A ★ symbol indicates that a third party, KPMG AZSA
Sustainability Co., Ltd., has provided independent assurance
regarding the reliability of the data.

Corporate overview / Global network
Business summary
Third-party opinions
Independent Assurance ReportData

CSR Report 2018

Initiatives for sustainable
development
In the CSR Report 2017 issued lastyear, the NLM Group expressed its
determination to work on SDGs.
We identify and evaluate the NLMGroup’s CSR activities from theviewpoint of SDGs and accelerate discussions on issues we should address
and those we have already begun toaddress. In FY2017, we held discussions at CSR Committee meetings(two times) and carried out awareness-raising activities via our internal
newsletters (three times). We also had
lively discussions at (monthly) meetings of CSR-related segments. Our
CSR initiatives in business domains
are described on the Special Features
pages of this report.

A CSR Committee meeting

Internal newsletter pages showing a serial article for raising awareness of SDGs (excerpt)

Corporate Social Responsibility Report 20183

Interview with CEO

A corporate groupthat continues tocreate new value
for customers
To those who were affected by the Heavy Rain Event of July
2018
We would like to express our deepest sympathy for those
who were affected by the Heavy Rain Event of July 2018. We
sincerely hope for the earliest possible restoration of the areas
affected by the disaster.
At the NLM Group, we have decided to make monetary
donations and engage in activities including the provision ofrelief supplies. In addition, as described in a special feature inthis report, the NLM Group addresses issues on water andinfrastructure through its business. We will continue striving to
improve our products and services so that they will be as helpful as possible for customers’ disaster prevention and disaster
control.

new products with high added value in fields

plan, we are making group-wide efforts tosafety when you give a speech inwhere innovation is making progress, byachieve the targets.

front of employees, such as the

exploring the strengths of cooperation within

Reference

New Year’s greeting. Could you tellthe Group from a customers’ perspective and

The next year will be our milestone year,

us your thoughts about safety once

making proposals by anticipating customer

when Nippon Light Metal Co., Ltd. will celebrate

again, including the meaning ofneeds. For example, we focused on the fact thatits 80th anniversary. I expect that the businesstalking about safety at the onset?

heat release, as well as weight reduction, is anenvironment surrounding the Group will be

important issue for electric vehicles, and began

increasingly difficult, with fluctuations in raw

P.30

I keep telling them again and again thatto sell a battery cooling plate that combines thefuel prices and other events. In this environ-safety is our top priority. A company consists

Group’s technologies, including those in design,

ment, the NLM Group will identify its strengthsof people. People are assets, or what wealloy development, and processing.

based on the criterion of what customers needmight call “human assets.” Our ultimate goal

For “business development through strat-

and cultivate fields where the Group’s strengths

is to allow our employees as human assets toegies by region and by sector,” which is theand customer needs intersect, even more

have job satisfaction and achieve happinesssecond basic policy under the mid-term plan,

deeply. We will thus seek to operate new busi-

for employees and their families. This goal can

we sought to maximize the profitability ofnesses with higher added value and build thenever be achieved without a safe environment

investment by selecting fields as destinations

foundation of our growth. It is the power of theQ1: How is the environment surrounding

where employees can work with a sense ofof management resources investment based

working generation -- above all, the power of

We will continue to execute the measures forenvironmental problems and issues in con-security. We aim to achieve zero accidents toon a combination of region and market. A

the young generation including this year’s new

the company? How are you respond-building a firm business foundation, on whichsiderations for human rights and diversity thatenable every single employee of the group to

specific example in Japan is the addition of

employees -- that will push forward the above

ing to changes?

we have been working, aiming to achieve fur-are included in the SDGs, from medium- andreturn home uninjured. Each employee should

production lines for non-CFC, heat-insulating,initiative beyond the 80th anniversary. I believe

ther growth as a corporate group that continues

long-term perspectives, aspiring to build a sus-

work with a strong belief that “We can and we

non-flammable panels reflecting the tendency

that the sustainable growth of the NLM Group,

The world today is fraught with issues. Thereto create new value for customers. I believe

tainable society. We believe that these activities

must definitely achieve zero accidents.” I think

to place more emphasis on environmental con-which is unaffected by the external environ-exist political and geopolitical risks attributed tothat the future is not something we wait for, but

are included in important CSR activities that thethis is more important than anything else.

siderations and the fireproof performance ofment, will be achieved by combining the power

NLM Group is required to implement.

Reference

structures. Overseas, we set up a marketingof the human assets of Team NLM and thebase in North America, thereby establishing a

power of young human assets, who will open

foothold for business expansion. In India, thethe door to the future.

changes in the external environment that wecannot change by ourselves, such as the esca-

something we create on our own.

SDGs cover a wide range of global and social

P.23

lation of trade friction that was triggered by theQ2: What are your initiatives for SDGs?

issues. Among them, one urgent and importantQ4. It is the final year of the current mid-trade policy of the Trump administration of the

Above all, what initiatives do you

goal is to build a so-called low-carbon society.

term management plan (mid-term

joint venture that we established in the previous

United States, rapid fluctuations in aluminumtake for reducing greenhouse gas

At the NLM Group, we have been executing aplan). Could you tell us about its

year began manufacturing aluminum paste forprices on a global level, and the rising crude

emissions?

voluntary action plan to reduce greenhouse gas

progress? Please also tell us what

coating materials.

emissions, setting FY2020 as the target year.

lies ahead of the plan.

oil prices attributed to the worsening situation

Moreover, as an example of our measurein the Middle East. However, we never use such

Our company survives thanks to society.

Because achieving this target seems likely now,“strengthening of corporate culture (strength-

August 2018changes in the external environment as an

We are surviving thanks to the support ofwe have decided to launch an initiative to fur-I believe that we made steady achievements

ening of business foundations),” the third basic

Nippon Light Metal Holdings Company, Ltd.

excuse. At the NLM Group, we think about how

our stakeholders and partners, including ourther reduce greenhouse gases by setting newlast year as the second year of the mid-term

policy under the mid-term plan, Toyo Rikagaku

President and Chief Executive Officer

to deal with the situation on our own by mobi-

employees and their families, not to mention

goals and specifying FY2030 as the target year,

plan, while facing increasingly fierce price com-

Kenkyusho Co., Ltd., which engages in plate

lizing the capacities of Team NLM to achieve

our shareholders, customers, and people frombased primarily on the Paris Agreement that was

petition in addition to the rising raw fuel prices.

processing, sought to improve the yield rate,

growth, and then we put the ideas into practice.

local communities in areas where our offices

adopted at COP21 in 2015. We will continue ourTo “create new products and business mod-further streamline its production system, andSeen from a different perspective, trade fric-and factories are located. We must never for-efforts to help build a sustainable society thatels by strengthening cooperation within thetake other steps with support from the overalltion brings out the importance of aluminum. The

get this. For the benefit of these people, we

coexists in harmony with the global environment.

Group,” which is the first basic policy under theGroup, which resulted in a significant increase

contribute to solving social issues, including

Reference

mid-term plan, we created a large number ofin its earnings. In the final year of the mid-term

importance of aluminum will never be reduced.

4

Q3. You always start by talking about

CSR Report 2018

P.16

Corporate Social Responsibility Report 2018

5

P8
A vision of delivering reliabledrinking waterP10
A vision of reducing food loss
with cold chains

Giving shape to our vision
Through and Through Nikkeikin
At Team NLM, we engage in businesses from upstream to downstream, manufacturing and selling products ranging from aluminum alloys to finished products ineveryday use.

P12
Vision of stopping global warmingwith a new form of recycling

We believe that the CSR of the NLM Group is about giving shape to our vision ofcontributing to achieving a sustainable society and improving people’s lives, as well as
taking responsibility for the business activities described above. The phrase “Throughand Through” means “thoroughly” or “completely.” It also means “just like someone.”
It reflects our vision to work for the good of our customers in all phases of manufacturing, from upstream to downstream.

P14
Vision of creating safe, secure
infrastructure for the future generations

6

CSR Report 2018

Corporate Social Responsibility Report 20187

Special Features

Giving shape to our vision Through and Through Nikkeikin

A vision of delivering
reliable drinking water

A vision of delivering safe water

There are regions in the world that do not have good access to hygienic drinking water, with 2.1 billion people lacking safely managed drinking
water services*.
Conditions become even worse after a disaster. A disaster disrupts water supply even in Japan, where people normally have easy access to drinking water. With our aluminum products, the NLM Group will create societies where people can drink water with a sense of security at any time,
anywhere in the world.
*Source: Progress on Drinking Water, Sanitation, and Hygiene: 2017 Update and Sustainable Development Goal Baselines (UNICEF and WHO)

A vision of delivering clean water

Yoshikawa water purification plant (Shiga Prefecture)

hypochlorite and by delivering Nikkei Ziaso® S,
which features reduced impurities.
Making water cleaner with the power ofultraviolet
At a water purification plant, water is sterilized with ultraviolet light, in addition to being
disinfected with chlorine. With ultraviolet sterilization, water flowing in a tube is irradiated withultraviolet light to kill any bacteria. Nippon Light
Metal Co., Ltd. succeeded in increasing thesterilizing effect of ultraviolet sterilizer by using
an aluminum tube that has high ultraviolet lightreflectivity, instead of the stainless-steel tube
that is used in a conventional unit.
This ultraviolet reflecting tube remains
resistant to corrosion due to a special surface
treatment, permitting a 1.6-fold increase insterilization efficiency compared to conventional sterilizers that use stainless-steel tubes.
(Data from Nippon Light Metal Co., Ltd.) With
this development, we will contribute to providing

even more reliable drinking water.
●Figure 1. Comparison of reflection rate between

aluminum and stainless steel
100
80

Reflection rate (%)

Making water cleaner with the power ofchlorine
The water we drink every day is sterilized anddisinfected. Nippon Light Metal Co., Ltd. manufactures and sells sodium hypochlorite aqueous
solution, which is intended for the sterilization anddisinfection of drinking water. Recent years haveseen growing needs for drinking water that is safer
and that tastes better. Reducing impurities in thegermicides or disinfectants themselves, which
are used at water purification plants, is necessary
to meet these needs. Nippon Light Metal Co., Ltd.
has responded by developing and establishinga method for manufacturing high-purity sodium

Approx. 90%
60
40
20

Approx. 30%

High-purity aluminumStandard-purity aluminum

SUS304 stainless steel
SUS316 stainless steel

0
230
280
330
380
Germicidal ray
254nm
Light wavelength (nm)A water purification plant is a major facility,
where water goes through several devices to be
purified. These devices need to be covered withlids to prevent dust, fallen leaves, and other flying objects from being mixed into the water andto counteract terrorism, such as the injection of

A vision of delivering reliable water even in the event of a disaster

8

CSR Report 2018

have been introduced in various parts of Japan,
ready to provide safe water efficiently in theevent of a disaster.
The water supply container is collapsible
and made of aluminum. It can therefore be
assembled, transported, and installed by a single person. It can be disassembled and stored
in a compact space after use.
In addition, the combined use of the watersupply tank and the containers makes it possible to establish an efficient water supply system.
Many water supply points can be created, andIn the event of a natural disaster, such as
an earthquake, typhoon, and torrential rain, themost urgent task is securing drinking water. A
system for continuing emergency water supply until the recovery of affected water utilities
must be established in all stricken areas.
Nikkeikin Aluminium Core Technology Co.,
Ltd. manufactures and sells water supply
tanks and water supply containers. Made ofaluminum, the water supply tank is resistant
to corrosion and keeps water clean. A cumulative total of 2,361 tanks from the company

the quick delivery of water to a large population
becomes possible by setting up water supply
containers at evacuation centers to receive
water from the water station, which is deliveredin the water supply tank.

● Water supply tank from Nikkeikin Aluminium

Core Technology● An efficient water supply system built by combining a water supply tank and water supply containers(For illustration purposes only)●Figure 2. Comparison of sterilizing effect between

aluminum and stainless-steel reflecting tubes*

Water supply container
Water supply tank

A sample irradiated with ultraviolet
A sample irradiated with ultraviolet
using an aluminum reflecting
using a stainless-steel reflecting
container
container*Data from the Department of Preventive Environment and Nutrition,
Faculty of Medicine, Tokushima University

Water station

The active ingredient concentration of liquid sodium hypochlorite is only about 12%, which means low production
efficiency. Accordingly, it was rarely used for purposes other than sterilization. Nippon Light Metal Co., Ltd. hasdeveloped Nikkei Ziaso® 5-hydrate (SHC5)*, which is extracted from liquid sodium hypochlorite as a high-purity solid
and whose active ingredient concentration has more than tripled from conventional products. In a world first, thecompany also succeeded in industrial production of this product and began manufacturing and marketing it in 2013.
Development of this product has expanded the applicability to a field other than water treatment agents; that is,
the field of organic synthesis. Moving forward, we will strive to establish an application of this product as an oxidizing
agent, which can be used for manufacturing processes in pharmaceuticals, agrochemicals, and fine chemicals.
*This product was granted the award for excellence by the Japan Society for Process Chemistry (JSPC) in 2014, a technology
award from the Japan Society of Ion Exchange in 2015, and the Synthetic Organic Chemistry Award, Japan (for technologicalachievement) in 2018.

● Water supply container from Nikkeikin

Evacuation
centerA

Water supply container

Evacuation
centerB

Water supply container

Evacuation
centerC

Aluminium Core Technology

Water truck● Number of water supply tanks from Nikkeikin Aluminium Core Technology adopted in each prefecture (1960 to 2017)(Unit: Tanks)

Opening up further possibilities

Tomohide Okada

A covering lid of Sagamihara water purification plant, which
was installed by Sumikei-Nikkei Engineering Co., Ltd.

430

Voice of development personnel

Development Division of Kambara
Chemical Plant
Chemicals Division, Nippon Light Metal
Co., Ltd.

poisonous substances.
Sumikei-Nikkei Engineering Co., Ltd. manufactures, sells, and installs aluminum lids
featuring both high corrosion resistance andbeautiful appearance, which have been adopted
in 31 of 47 prefectures in Japan.

Okayama
Hiroshima
Tottori
Shimane
Yamaguchi

NagasakiFukuoka
Saga
Oita

29
42
11
6

31
18
19
15
42

Miyazaki
Kumamoto
Kagoshima
Okinawa

Yamanashi
NaganoNiigata25
41
30

ToyamaIshikawa
Fukui

26
17
12

Mie
Wakayama
Shiga
Nara

44
40
45
20

Kyoto
Osaka
Hyogo

40
76
59

Shizuoka
Gifu
Aichi

532
36
102

Iwate
Miyagi
Yamagata

Tochigi
Ibaraki
Saitama
Gunma
11
22
27
2

Ehime
Kochi

23
4

KagawaTokushima

33
57
138
33

34
30
41

Hokkaido82

Akita
Aomori
Fukushima

27
67
51

Chiba
Tokyo
Kanagawa

110
74
129

3
5

Corporate Social Responsibility Report 20189

Giving shape to our vision Through and Through Nikkeikin

Special Features

A vision of reducing
food loss* with cold chains

Voice of sales personnel

One out of every nine people in the world (approx. 800 million people) suffer from poor nutrition. The global population is forecast to reach 9.8
billion in 2050, and the issue of food shortages is expected to grow more serious. On the other hand, as much as nearly 1.3 billion tons of food, orroughly one-third of all produced food, is disposed of every year.
*Food loss refers to food which is disposed of, even though it is still edible.

Manager, Sales Section,
Tokyo Branch No.2, Nikkei Panel
System Co., Ltd.

Noriyuki Taniguchi (Right)

Source: Japan Association for International Collaboration of Agriculture and Forestry, World’s Agriculture, Forestry And Fisheries (No. 835)

In the Toyosu market project, I was in charge of the property as the sales leader.
The Tokyo Metropolitan Government has made “environmentally friendly products” a requirement in the construction of the Toyosu market. In response, we have proposed the use of Genesta Incombustible Type, a non-HFC
incombustible insulation panel, as a product which conforms to that requirement.
In addition, Toyosu market has set a policy of “ensuring food safety and security,” so we paid careful attention
to the hygiene of the property during installation, by taking preventive measures against mold, corrosion andcondensation under the roof. Because we had never worked on such a large property before, we faced many
challenges, including production, labor shortages, and logistics problems. We launched a project internally and I
believe we were able to fulfill the customer’s requirements with the “cooperation of 5 divisions + 1” (sales, design,
procurement, production, and installation + logistics).
Taking advantage of this experience, we will further strengthen our expertise and engineering capability forlarge properties and work proactively on overseas properties, as well as those in Japan. We will thus continue toprovide support for the creation of better spaces that help give shape to customers’ visions.

How can we reduce food loss?
freezers, and other related products. Switching
the means of perishable food transportationfrom normal-temperature distribution to chilled
distribution (cold chain) prevents the food items

from becoming spoiled or going bad and therefore keeps them fresh longer. We will reducefood loss by building a seamless cold chain
from production area to table.

● Status of food loss in Japan
Food loss in Japan

Amount of food distributed
by UN WFP
in food assistance programs (2015)

Approx. 6.46 million tons

Approx. 3.2 million tons

Loss in distribution

Loss in households

Per-capita amountof food loss per day in Japan

Approx. 3.57 million tons

Approx. 2.89 million tons

Approx. 139 grams*Equivalent to a bowl of steamed rice

Source: Ministry of Agriculture, Forestry and Fisheries of Japan, Reducing Food Loss and Waste & Promoting Recycling

Insulation panel which helps prevent global warming
The insulation panel manufactured and sold by Nikkei Panel System Co., Ltd. is the Genesta® non-HFC
incombustible insulation panel. This is the industry’s first panel* that does not use HFC. The company succeeded in developing this panel by using a blowing agent containing hydrofluoroolefin (HFO) instead of one
containing hydrofluorocarbon (HFC), which is used in the manufacture of conventional insulation panels.
Moreover, the company completed the task of making allof its factories HFC-free in April 2016. This enables
not only a reduction in greenhouse gas emissions
from the factories but also reduces emissions fromthe supply chain by approximately 300,000 tons
in CO2 equivalent every year. In recognition of thisachievement, the company was granted the Japan
Business Federation (Keidanren) Chairman award in
the 27th Global Environment Awards (hosted by the
Fuji-Sankei Group) in April 2018.
Award presentation ceremony of the Global Environment*Data from by Nikkei Panel System Co., Ltd.

Awards■ Global Warming Potential (GWP/ 100-year value)
1,500

Global Warming Potential

There are two types of food loss. One is theloss that occurs due to disposal by households(loss in households) and the other is the loss offood that is spoiled or disposed of during thephases of harvesting, transportation, and storage (loss in distribution). In Japan, the annual
amount of food loss in households is 2.89 million tons and that in distribution is 3.57 million
tons.
The NLM Group is involved in these processes as a manufacturer and distributor oftruck bodies, warehouses, refrigerators and

1,030
1,000

794

500

Genesta is
uncompromisingly
environmentallyfriendly.

*1

1

0
3rd generation*2(HFC-245fa)

3rd generation(HFC-365mfc)

4th generation(HFO-1233zd (E))*1: GWP is the value for the greenhouse effect of each greenhouse gas relative tothe effect of CO2, which is calculated by taking into account the duration of theeffect as well.
*2: The graph shows two types of 3rd-generation HFC that we were actually using.

● Cold chain

30˚C

Warehouse

Refrigerator truck

Food processing plant

Refrigerator truck

Retailer's storage

A panel that demonstrates its strength in a disaster5˚CHarvesting

PrecoolingTransportation

Plant

Transportation

Retailer

Consumers*Precooling means refrigerating agricultural products and similar food items before shipment so as to control the degradation in their quality after shipment.

Nikkei Panel System Co., Ltd. found that the Great East Japan Earthquake, which occurred in March 2011,
brought down warehouse ceilings and hampered the delivery of food items that were needed by affected
people. To overcome this problem, the company developed NEQRES, an earthquake-resistant ceiling. No
NEQRES panel fell during the Kumamoto Earthquake, which struck in April 2016. We will contribute to creating disaster-resistant cold chains.
NEQRES earthquake-resistant ceiling

A vision of protecting food from deterioration
Convenience stores and supermarkets,
which are indispensable elements of everyday life, are supported by cold chains. Above
all, cold chains in Japan are highly developed,
boasting rigorous temperature control.
Nippon Fruehauf Co., Ltd. manufacturesand sells refrigerator trucks. The company has
developed a truck that can transport goods
simultaneously in multiple temperatures. This
truck controls the temperature to transport

10

CSR Report 2018frozen and chilled goods together with goods
kept at a normal temperature. It thus supports
cold chains in Japan, where great emphasis isplaced on freshness and temperature control.
Nikkei Panel System Co., Ltd. manufactures,
sells, and installs thermal insulation panels,
which are used for food processing plants, lowtemperature logistics warehouses, and freezing
and refrigerating warehouses in the backyardsof convenience stores and other retailers.

Our thermal insulation panels have been
adopted for many freezers and refrigerators,
wholesale areas, andother sections of
the Toyosu market
instead of Tsukiji market in Tokyo, which isscheduled to open in
October 2018.
Refrigerator truck

A vision of expanding continually evolving cold chains to the world
In Thailand, a broader range of food items
have begun to be distributed in step with theeconomic development of the country. As aresult, demand for cold chains has been growing. Nippon Fruehauf Co., Ltd. and Nikkei Panel
System Co., Ltd. own the panel business of
Fruehauf Mahajak Co., Ltd. and Nikkei Siam

Aluminum Ltd., respectively, and collaborate in
the development of cold chains in Thailand. We
will continue to contribute to the creation of cold
chains in Southeast Asia and the world.

Staff of Fruehauf Mahajak Co., Ltd.

Corporate Social Responsibility Report 201811

Special Features

Giving shape to our vision Through and Through Nikkeikin

Vision of stopping global warmingwith a new form of recycling
The world is confronted with issues such as global warming, the destruction of nature in various parts of the world, and the depletion of fossil fuels
and other natural resources. The NLM Group helps solve these problems by operating its aluminum recycling business globally.

New-generation ingot
Nikkei MC Aluminium Co., Ltd. developed
a new-generation ingot jointly with Denso
Corporation. This new-generation ingot weighs
100 grams per piece, which is 2% the weight ofa conventional ingot. With this ingot, we have provided many benefits to Denso Corporation as thecustomer. For instance, it enabled an 80% reduction in the space for equipment, including buildings,
partly reflecting the fact that a large melting furnace is no longer needed on the customer’s
production line. Moreover, thanks to the shorterproduction line, the new ingot also contributed to

50% reduction in energy cost and a 33% reductionin production costs by shortening the line.
The new-generation ingot is also applied atcustomer facilities in Thailand, Spain, Hungary,and Mexico. It is also scheduled to be introduced in India.

Voice of development personnel

Achieving a reduction in CO2 emissions equivalent to the amountabsorbed by a forest as large as Tokyo
In producing aluminum from bauxite, 12.7
tons of CO2 is emitted per 1 ton of produced
aluminum. This is because a large amount ofelectric power is consumed during a manufacturing method called electrolysis, which ispart of the aluminum production process. On
the other hand, where aluminum is produced
from recycled materials (scrap), the amount of
CO2 emitted per 1 ton of produced aluminumis 0.35 tons.
Nikkei MC Aluminium Co., Ltd. produces
176,000 tons of recycled aluminum every year
from scrap purchased from customers, the
NLM Group, and other entities in 22 countries.
This is equivalent to an annual reduction in
CO2 emissions of 2.1 million tons compared to
producing aluminum from bauxite. That in turnequates to the annual amount of CO2 absorbed
by a forest as large as Tokyo.
In addition, approximately 4 tons of bauxite
is mined to produce 1 ton of aluminum. Thismeans that rich natural environments tend
to be exploited because bauxite exits in large
quantities in the wilderness and mountains.
For example, at least 1 square meter of land
must be mined to produce 1 ton of aluminum.
Consequently, 4.0 million square meters of landneeds to be mined to produce the amount ofaluminum consumed in Japan in a year (4.0
million tons). The recycling of aluminum helps
to protect nature.

●Conceptual rendering of the CO2 reduction

effect of aluminum recycling

The effect of producing 176,000 tons of recycled aluminum from scrap collected fromthe overall NLM Group, including overseas group companies, is as illustrated below.
（Thousand tons）
2500
2235

Approx. 247,500 hectares

Reduction of
2.1 million
tons of CO2

2000
1500
1000
500
0

Tokyo

62
Aluminum

Recycled aluminum

Mr. Takashi Shindo (center), Director and General Manager of Sales
Department, Purchasing & Procurement Department, Nikkei MC
Aluminum (Thailand) Co., Ltd., having a conventional ingot (5kg),
and Ms. Netchanok (left) and Ms. Kancharot (right) having new-generation ingots in their hands.

*All figures are from Nikkei MC Aluminium Co., Ltd.

●Factories of Nikkei MC Aluminium Co., Ltd. and its scrap suppliers

36

18

30

79

Factory of Nikkei MC Aluminium
Co., Ltd. and annual production of
the factory (Thousand tons/ year)

14
19

12

CSR Report 2018

Existing equipment

Process

Scrap supplier

Processing in alarge melting furnace

Process

Process

New-generation ingots

Benefits of using the new-generation ingot
A production line can be created, and the customer does not require
processing in a large melting furnace.

Development of new small equipment

Production cost: -33% Space for equipment: -80%
New molding line

A vision for a hydrogen society. An alternative to fossil fuels?
Hydrogen is attracting attention as an alternative energy source to fossil fuels. To realize
a hydrogen society, however, we need to overcome a number of challenges. For example,hydrogen is lower in transport efficiency thanother fuels. It also requires robust storage andtransportation facilities because of the risk of
explosion. In a world first, the NLM Group has
developed the Powdered SBH*, a new hydrogen carrier, by new process. Every 1 kilogram of
Powdered SBH is capable of storing 2.4 cubic

I was greatly attracted to the concept of the new-generation ingot, that is, “an energy-efficient, space-saving, low-noise, high-quality, low-cost ingot,”
when the customer explained it to us. I remember that, after we started development, we had difficulty obtaining consent in-house because of the greatburden on our company, including the need to reduce the scale of production and to make a large capital investment. However, we made patient efforts
to respond to the customer’s request faithfully. As a result, both our colleagues and the customer said that they were glad it was introduced. I am very
proud of that. It was fate that I was assigned to Thailand and introduced a production line for the new-generation ingot to our new factory in Thailand. We
deliver the product to Denso Corporation’s base in Thailand as well. I couldn’t be happier.

meters of hydrogen. It also eliminates the riskof explosion. Further, the powder that remains
after hydrogen is extracted from SBH (sodium
metaborate) can be recycled into SBH.
We aim to realize a hydrogen society, where
the Powdered SBH powers vehicles as thealternative to fossil fuels.

Process

Process

With the improvement in melting efficiency, the ingot contributes to a

50% reduction in energy costs!

Customer voice

Recycled into the main component of SBH

Sodium metaborate

Powdered SBH

Process

Water
Hydrogen gas*SBH stands for sodium borohydride.

Manager, Die Casting & Cutting Parts
Prod. Eng. Sect., Parts Production
Engineering Dept., Nishio Plant, Denso
Corporation

The new-generation ingot has provided us with many benefits, including the downsizing of equipment, costsavings, higher thermal efficiency, reduced workloads for on-site workers, and a reduction in the cost of furnace
repair.
At present, we have introduced 35 dedicated production lines for the new-generation ingot in Japan and 24
such lines overseas. We hope that, in the future, we can apply automated transport based on the Kanban Method
to the material (new-generation ingot), just as it was applied to components, thereby achieving logistics reform. I
think it is a new-generation ingot that will enable this. I am most grateful to Nikkei MC Aluminium for their cooperation. I hope we can continue to work together to expand our businesses globally.

Mr. Koji Baba
Fuel cell locomotive

Corporate Social Responsibility Report 201813

Special Features

Giving shape to our vision Through and Through Nikkeikin

Vision of creating safe,
secure infrastructure
for the future generations
In Japan, a country susceptible to disaster, architectural and construction standards have been revised each time a disaster has struck. With theserevisions, technological progress has been made. However, the infrastructure that was developed rapidly in the years around the previous Tokyo
Olympics (held in 1964) is now more than 50 years old, and as such requires large-scale and wide-ranging repair.
The NLM Group will address these issues with its broad range of technologies and products, which take advantage of the features of aluminum.

Protecting traffic safety of people
Japan has roughly 700,000 road bridges.
At present, approximately 30% of thesebridges are 50 years old or older, and that percentage will exceed 50% around 2030. It is said
that a bridge needs to be replaced once it is 50
years old. The proportion of river management
facilities, quay walls, and similar facilities thatare 50 years old or older also tops 50%. There
are also numerous road bridges deemed to be
too dangerous for people and vehicles to crossand whose use is therefore prohibited (source:Road Bureau, Ministry of Land, Infrastructure
and Transport).
While the rapidly increasing number ofaging bridges need to be replaced, the cost is
astronomical. In response, the government hasdevelop a plan to repair bridges to extend theireffective life, aiming to ensure the safety andreliability of the road network while extending
the service life of bridges and cutting repair
costs.
Sumikei-Nikkei Engineering Co., Ltd. manufactures, sells, and installs bridge safetybarriers. Aluminium safety barriers feature corrosion resistance and light weight. If corroded
steel safety barriers are replaced with aluminium ones, the service life of a bridge can beextended, because the load on the bridge will
be reduced and corrosion-induced deterioration will be inhibited. Further, aluminium safetybarriers also boast superior recyclability anddesign quality. They can be recycled easily after
replacement, and they are highly acclaimed forthe design flexibility that caters to diverse local
needs.

Aluminium safety barriers installed by SumikeiNikkei Engineering Co., Ltd.

Voice of designer

Road Facility Team, Design andEngineering Department, SumikeiNikkei Engineering Co., Ltd.

Tomohisa Kajita

Vision of being useful in the event of a disaster as well as in countermeasures against deterioration
Bridges are essential for our life and theeconomy. However, they are not only aging but
also subject to increasing load due in part to theincreasing traffic volume and larger size vehicles.
In 2011, Nikkeikin Aluminium Core Technology
Co., Ltd. built the first bridge in Japan that uses
aluminum plate deck in a project for repairing, andextending the service life of, an aging bridge on
the premises of the Kambara Complex of Nippon
Light Metal Co., Ltd. In 2015, the company’s

CSR Report 2018

aluminum plate deck for driveways was adopted
for the first time for a temporary bridge of the
Ministry of Land, Infrastructure and Transport,
which is used in the event of an emergency. This
temporary bridge is a variable bridge with maximum length of 60 meters and is used in places
where a bridge has been washed out due to an
earthquake, flooding, or other disaster. It can beinstalled within three days, compared with theone or two months required for the installationof a conventional temporary bridge. Membersof the aluminum plate deck are unitized, so they
can be brought in and assembled without usinglarge heavy equipment. Accordingly, bridges canbe set up in mountainous areas or in locations
with limited space.

Tokyo Gate Bridge
Bridge wall rail

GirderAluminium safety barrier

Members of the team in charge of designing safety barriers
from Sumikei-Nikkei Engineering Co., Ltd. are discussing thedesign of a safety barrier prop.

●Percentage of bridges 50 years

old or older■ FY2021(%)
100●Static load test data

■ FY2031

Bridge with aluminum plate deck (in the premises of Kambara
Complex of Nippon Light Metal Co., Ltd.)
Many large vehicles cross this bridge for shipments and deliveries.

Pavement

Superstructure
cross-section

GirderCross-section of the bridge

Vision of protecting infrastructure from rustwith coatings

Plate deck
Temporary bridge for use in emergencies (Kinki
Regional Development Bureau, Ministry of Land,
Infrastructure and Tourism)◀Beforecoating▼Aftercoating

53
28
0Source: Material for a meeting on deteriorationof social capital (Ministry of Land, Infrastructure
and Transport of Japan) that was held on January
21, 2013●A static load test of a prop

* We conduct internal tests of our safety barriers by following specified procedures, thereby ensuring
the safety of vehicles and pedestrians.

laminated structure seen in objects such as abalone shells, which remain unbroken even when
they are beaten with a hammer. This coating creates a hard membrane, which is enabled by the finestainless-steel flakes it contains. The membranemakes the coated surface resistant to cracking. It
is capable of preventing infrastructure from
●Illustration of structure’s surface (coating containing stainless-steel flakes)
deteriorating due to seawater, weather, andSubstances causing corrosion:
Mechanical flaw No cracking UV light
Seawater, acid, alkaline, and others
the like. Used for the iron pipes of bridges
and hydropower plants, exterior walls ofbuildings, and other structures, this productTensionPrimeris helping to extend the maintenance cycleof these structures.

Steel structures installed along the coast
deteriorate quickly due to rust. Accordingly, they
are required to have structures and a qualitythat allow them to endure the harsh conditions.
Toyo Aluminium K.K. has developed a coating
containing stainless-steel flakes, inspired by the

Stainless flakes

14

Safety barriers keep passengers and pedestrians safe in the event ofa vehicle collision. Therefore, we design products with constant care. We
evaluate the safety of barriers in new structures by conducting our own performance tests, so we have full confidence in the safety of our safety barriers.
We will continue to help build safe infrastructure.

Penstocks of the second power plant of the Kambara
Complex of Nippon Light Metal Co., Ltd., which were
repaired using the coating containing stainless-steel flakes
The penstocks are unusually close to the coastline, being
only 750 meters away. In addition, there is no building
or any other structure to shield the penstocks from sea
breezes. This had made them prone to corrosion andmaintenance was a challenge.

Corporate Social Responsibility Report 201815

Environmental protection activities●Greenhouse gas emissions (Japan)★

Environmental management
systemThe NLM Group Environmental Committee
deliberates and decides upon basic measures
such as action plans related to the Group’s
environment management. The committee consists of officers of Nippon Light Metal Holdings
Co., Ltd., presidents of NLM Group companies,
and other members. Matters determined by theEnvironmental Committee are fleshed out by theenvironmental control segment, which serves as
the secretariat of the committee, made knownat meetings of environmental practitioners, andimplemented at factories and offices (sites*)through internal coordination of the group.
*Sites: Scope of application of the environmental management system●Environmental management system(Thousand tons-CO2 )

1,000
800
600
400
200
0

747

768

796

802

386

440

481

511

511

309

306

287

285

291

2013

2014

2015

2016

2017

*Boundary: 24 consolidated subsidiaries in Japan*The following CO2 emission factors were used for the calculations.
Electricity: The CO2 emission factor with T&D losses of each previous fiscal
year announced by the Federation of Electric Power Companies
of Japan and the Electric Power Council for a Low Carbon Society
Fuel: CO2 emissions as per heat value and calorific value for each fuel,which are set forth in the Ministerial Ordinance for Calculation ofGreenhouse Gas Emissions Associated with Business Activities ofSpecified Emitters●Greenhouse gas emissions including those fromour overseas sites [ktons-CO2]*CO2 emissions associated with the hydroelectric power generated at theKambara Complex of Nippon Light Metal Co., Ltd. are calculated with theabove CO2 emission factor for electricity for each year.

■ Japan■ Overseas

128*The target and actual values do not include emissions caused by chlorofluorocarbons and their alternative.

802*For calculating CO2 emissions related to electric power purchased overseas, we use the latest CO2 emission factor of each country that is shownin CO2 Emissions from Fuel Combustion 2017, which was published by theInternational Energy Agency (IEA).

●Greenhouse gas emissions including Scope 3

emissions(FY2017 emissions including those from ouroverseas sites)[ktons-CO2]

sales and new target (tons-CO2/Million yen)

responses to such incidents, the NLM Group has
developed and operates a quick reporting system in Japan and overseas.
We have received ten environmental complaints* (four in Japan and six overseas).
We respond to complaints with action that
includes measures for preventing recurrence,with cooperation among people from theresponsible site and the environmental control
segment. We also extend the countermeasures
to other sites in Japan and other countries thathave equipment similar to that involved in thecomplaint.
In addition, we regularly hold briefings for
local residents at each site to disclose the resultsof the measurement of water, atmosphere, andthe similar elements, explain our environmental

measures, and give them a factory tour. We takethese and other measures in our efforts to communicate with the local community.
In FY2017, there was no lawsuit, penal
charge, or forfeit related to the environment.
Further, the number of accidents* related to theenvironment was 0 for the first time since webegan keeping statistics in 2005.

Environmental audits
At the NLM Group, we conduct regular environmental audits of 46 sites in Japan, separatelyfrom the audits under ISO 14001, in accordancewith our environmental management rules, withthe leading roles played by the environmental
segment of the group. The environmental audits
consist of two initiatives, a paper-based audit(cases)Scope 32,924

15

■ Complaints■ Accidents

1,994
68%

3.0
2.5 2.34

Category 1
96%

2.09

2.0

1.82
Target

1.5
1.0

2030

2017

2016

2015

2014

2013

2012

2011

2010

0.5
0.0

On-site audits

At the NLM Group, we believe that developing and securing human assets for thegroup’s environmental segment is important for
preventing environmental accidents and complying with environmental laws and regulations.
Consequently, we run various environmental
training programs that are appropriate given
the nature of the work at each site. With respect
to environmental practices, we hold a meetingof environmental practitioners twice each year.
Through this meeting, we share improvement
information about environmental management
among companies and factories and extend
excellent initiatives at particular sites to othersites, to improve the efficiency of our environmental protection activities. We also holdtraining sessions on laws and regulations twice
each year, thereby supporting compliance withlaws and regulations. We also have environmental practitioners from other sites participate in
on-site environmental audits to acquire knowledge, in an effort to improve the level of ourenvironmental management. In FY2017, a totalof 44 environmental practitioners participated in
on-site audits of other sites.

●Number of environmental troubles that occurred

13%
19%

(tons-CO2 /Million yen)

On-site checks

Category 2 to 7

●Greenhouse gas emission intensity per unit of2009Greenhouse gas emissions (Japan)
Greenhouse gas emissions from the NLMGroup’s sites in Japan in FY2017 increased
0.7% year on year to 802 thousand tons.
Although we worked on energy-saving activities,
the emissions increased slightly because theamount of required energy increased due to anincrease in production.
We will continue striving to reduce greenhouse gas emissions through such initiatives as
equipment efficiency improvement, reduction ofenergy loss, and productivity improvement.

2008( 1 ) Fleshing out and promoting mattersdetermined by the Environmental Committee( 2 ) Environmental audits

2007

Person in charge of environmental protection fromthe Central CSR and Audit Office

2006

Environmental Committee

The NLM Group developed a new voluntary action plan to reduce the greenhouse gas
emission intensity per unit of sales to 1.82
tons-CO2/million yen by FY2030. We will evaluate the effect of our energy-saving activities
appropriately by setting a target greenhouse gas
emission intensity. We will continue working to
reduce greenhouse gas emissions.

2005

Group Executive Committeeof Nippon Light Metal Holdings Co., Ltd.

CSR Report 2018694

New voluntary action plan

President of
Nippon Light Holdings Co., Ltd.

* 46 sites of 24 companies in total (scope of environmental management inJapan) (As of July 31, 2018)16■ Scope 2

1,200

Board of Directors of
Nippon Light Metal Holdings Co., Ltd.

Group companies’ sites■ Scope 1

on the greenhouse gas emissions from our overseas production activities. In FY2016, we started
collecting data on the emissions from all ouroverseas sites. In FY2017, the emissions were
found to have decreased 7.2% from the previous fiscal year, to 128 thousand tons.
In addition, in FY2017, we began to calculate greenhouse gas emissions by obtaining thelatest CO2 emission factors that are appropriate
for the conditions of each country, aiming to
improve the precision of measurement of ouroverseas greenhouse gas emissions.

Development of environmental
human assets

SocialAiming to realize a sustainable
society by co-existing in harmony
with the global environment

Environment

conducted by using a dedicated survey slip
and an on-site audit. In FY2017, we conduct
on-site audits of 18 sites. Through these audits,
we strive to improve the level of environmental
management in our production activities.
We also conduct audits of our overseas
business locations as well as those in Japan. In
FY2017, we conducted environmental audits at
two overseas sites.

Governance

Environment■ Scope 1■ Scope 3

10■ Scope 2

Scope 1: D
 irect greenhouse gas emissions by a company
Scope 2: Indirect greenhouse gas emissions by a company attributed to theuse of energy including electricity
Scope 3: Indirect greenhouse gas emissions by a company in its supply
chainGreenhouse gas emissions including those from our overseas sites

Achievement of zero environmental
accident

At the NLM Group, we strive to collect data

For environmental incidents and emergency

11

5

0

7

7

1

1

2013

2014

4

3

3

2015

2016

10

0
2017

* Complaints: Number of complaints (about odor, noise, or the similar event)lodged by external parties* Accidents: Environmental issues that have an impact outside the site (suchas leakage of oil or chemicals)

Meeting of environmental practitioners

Corporate Social Responsibility Report 201817

Environmental protection activities in Thailand

Environmental initiatives in theKingdom of Thailand

Meeting of environmental
practitioners in Thailand
In FY2017, the meeting was held in
November, with participation of environmental
practitioners from five sites of three companies.
At the meeting, participants introduced environmental protection activities at each factoryand shared information about Thailand’s environmental laws and regulations. This time inparticular, participants had lively Q&A and discussions about energy-saving activities, soil andgroundwater contamination, and wastewater
management, which are priority themes of eachsite, thereby sharing information about activities
at each site and expanding the activities to other

Manager, Human Resource andGeneral Affairs Division, Nikkei Siam
Aluminum Ltd.

●Map of Thailand and locations of our factories(Truck bodies)

The elementary school to which we make donations
Krung Thep（Bangkok）

Nikkei MC Aluminum (Thailand) Co., Ltd.
Wellgrow(Aluminum alloys)

Nikkei MC Aluminum (Thailand) Co., Ltd.
Sriracha

Nikkei Siam Aluminum Ltd.
Amata Nakorn(Heat exchanger and panel products)(Aluminum alloys)

Tables and benches made by using waste wood

employees of other companies on the industrial
estate. At this event, they teach children theimportance of the environment through an activity of making plates using banana leaves. They
also interact with residents and other companies
in the local area.

Nikkei Siam Aluminum Ltd. has factories in
Pathumthani and Amata Nakorn, where it manufactures and sells aluminum sheets as well as
foils and heat exchangers. The company also
designs, manufactures, and sells panels for prefabricated refrigerators and freezers and clean
rooms at these factories.
The following are part of the environmental
protection activities at Nikkei Siam Aluminum Ltd.

Meeting of environmental practitioners in Thailand

18

CSR Report 2018

Employees who participated in the mangrove-planting activity

Tables and benches being made at the factory* FSC certification: A certification granted to wood products which are produced with consideration for the protection of forest environments and in a
way that is profitable for local communities and economically sustainable.

Amata Nakorn factory(1) Amata Children Day
Employees of the Amata Nakorn factory
participate in the Amata Children Day with

●Nikkei MC Aluminum (Thailand) Co., Ltd.
●The company carries out a coral-reef planting
activity, which is aimed at maintaining environmental resources and communicating withlocal residents.
In FY2017, approximately 40 people took partin this activity.

●Tree-planting activity for protecting mangroves●Fruehauf Mahajak Co., Ltd.
●Planting of banana trees(3) Use of FSC-certified products
We have replaced wiping paper and tissue
paper used in our factories with FSC-certified
products, thereby contributing to protecting theworld’s forests.

Plates made of banana leaves

Environmental protection activities
at other sites

Environment

Fruehauf Mahajak Co., Ltd.

Aluminum sheets and foils

Environmental protection activities
at Nikkei Siam Aluminum Ltd.

At the Amata Nakorn factory of Nikkei Siam Aluminum Ltd., where
I work, we manufacture energy-efficient all-aluminum heat exchangers and non-HFC insulation panels. I am in charge of personnel
affairs, environmental management systems, and the promotion of
CSR. I have been working at this factory for seven years.
At our workplace, we engage in various activities with the aimof establishing a green culture. We will continue to share the environmental policy of the NLM Group and engage in environmental
protection activities and other CSR activities, always with consideration given to the natural environment.

Pairin Srirajak

Nikkei Siam Aluminum Ltd.
(Headquarters) Pathumthanisites. We will continue to hold this meeting in
Thailand and strive to reduce environmental
risks in the country.

Voice of a person in charge

SocialAs a result of the overseas expansion of the
NLM Group, environmental initiatives aretaken locally in various countries and regions.
Among them, we pursue advanced environmental initiatives in the Kingdom of Thailand.
Thailand has rules related to the atmosphere,
water, soil, waste, and other elements that are
as strict as, or stricter than, the relevant laws
and regulations of Japan. Each site in Thailand
has introduced environmental management
based on ISO 14001 to comply with laws andregulations and to systematically addressenvironmental protection. In addition, we holda meeting of environmental practitioners in
Thailand each year and share information about
important matters and case examples of accident and environmental improvement, so as toreconfirm and follow the environmental policy
and other policies of the NLM Group.

(2) Use of waste wood
At our factories, we make tables and benches
for cafeteria by using waste wood from wooden
boxes generated after parts to be used at thefactories are carried in. We donate the tables
and benches to a neighborhood elementary
school. In FY2017, we donated eight tables and
16 benches.

Coral-reef planting activity●Mourning over the demise of Rama IX, weplanted marigold and other plants on theindustrial estate together with employees ofother companies in the industrial estate.

Banana trees that were planted●Waste segregation activity●This activity began by following an example
at another site, which was introduced at themeeting of environmental practitioners. This
activity has raised awareness of the need for
waste segregation.

(4) Interactions with the government andlocal communities
At the Pathumthani factory, we invite government officials and local residents to tours of thefactory and hearings about our environmental
initiatives, in an effort to communicate betterwith the local community and government.

Governance

Environment

A tour around the factory
Dust bins for waste segregation
Booth of Nikkei Siam Aluminum Ltd. at the Children Day

Flowers of the planted marigold

Corporate Social Responsibility Report 201819

SocialValue created with people with disabilities●Employment rate of persons with disabilities(Nippon Light Metal Co., Ltd.)
(%)

2.6

2.44

2.47

2.59

2.4
2.2
Statutory
employment rate

2.0
1.8

1.91

1.89

2014

2015

1.6
1.4
1.2
1.0

2016

2017

2018

* Data as of June 1 in each year

The idea of an inclusive society that is common to education at special needs schools
and corporate social responsibility (CSR)
Oshima: First of all, could you tell us about theeducation provided at special needs schools?
Watanabe: The educational activities of special
needs schools in Shizuoka Prefecture are basedon the idea of an inclusive society. Therefore,
we want our students to grow into people who
can participate in society voluntarily and provide

20

CSR Report 2018

Mr. Hiroki Watanabe

Masakazu Ichikawa

Akitsugu Oshima (Moderator)

Principal of the central prefectural
Special Needs Education school of
Shizuoka (Shizuoka-ken-ritsu Chuo
Tokubetsu Shien Gakko)
He cooperated with Nikkeikin OhLis Co.,
Ltd. in its recruitment activities. Since
then, he has been our advisor in diversity education as well as employment.

President, Nikkeikin OhLis Co., Ltd.
Corporate Officer Central CSR and Audit
Office, Nippon Light Metal Holdings
Co., Ltd.

Vice president of operations, Nikkeikin
OhLis Co., Ltd.
Manager of Labor Section, Kambara
Complex of Nippon Light Metal Co., Ltd.
He has been involved with Nikkeikin
OhLis Co., Ltd. since its founding.

them with the support needed to grow in thatway. We want them to find the significance ofjobs given to them and attach importance to theprocess of mastering those jobs. I believe thatthe significance of the job that you have foundwill be the driving force for doing the job proactively and enrich your work life and private life.
Ichikawa: I am in charge of promoting CSR
for the NLM Group. In thinking about promoting CSR, I face the issue of how companies
and employees should be related to society as
they live. It is said that CSR originates from the
problem of high youth unemployment in Europe
in the 1990s. Companies cooperated withgovernments, which called on them to employ
high-priced young people of their own countries instead of cheap skilled workers flowing infrom Eastern Europe. I think the idea of CSR is
identical to that of an inclusive society itself inthat corporate activities are promoted without
excluding diverse people but with mutual support with them.
Nikkeikin OhLis Co., Ltd. inspires us andchanges our corporate climate
Oshima: What roles does Nikkeikin OhLis Co.,

Ltd. play from the viewpoint of an inclusive
society?
Ichikawa: Employees of Nikkeikin OhLis Co.,
Ltd. work together with those of Nippon Light
Metal Co., Ltd. I think that, in the early days,some employees wondered how to communicate with those from Nikkeikin OhLis Co., Ltd.
However, they integrated with each other naturally by greeting with each other when they
arrived at work, playing football and participating
in internal events during break time, and otherwise interacting. And the work of the employeesof Nikkeikin OhLis Co., Ltd. has earned highmarks. The scope of their work and workplaces
expanded gradually, and now they are essential
to the company. As for myself, I am encouraged
when I see them work. I think that like me, many
employees are inspired by those of Nikkeikin
OhLis Co., Ltd.
Watanabe: When I saw graduates of special
needs schools working, I felt that they were
working with initiative, and not passively.
Ichikawa: At Nippon Light Metal Co., Ltd., we
ask a special needs school to accept our new
employees every year for practical training,which is included in our new employee training.

Let’s find the strengths and weaknesses.
Oshima: Could you tell us your thoughts about
issues surrounding employment of the disabled,
including complaints of schools about companies, if any?
Watanabe: The concept of “disability” has beenchanging recently. In the past, all dysfunctions
were treated as disabilities. However, we can saythat those of us who wear glasses, for example,
have vision disability when not wearing glasses.
But they are not disabled as long as they wear
glasses. People with disabilities only need different types of support. They can demonstrate theircapabilities by receiving the types of support thatthey need. We call them “appropriate guidance
and necessary support.” If this point is applied to
a company, just employing people with disabilities is not enough. The important point is how tomake use of them after employing them, or how
to bring out their capabilities after giving themphysical and mental support. I think it is important to discover their useful points. Everyone has
their strengths and weaknesses. We teachers
say that we should try to find these strengths

Sustainability brought about by diversity
Ichikawa: A keyword in corporate activities issustainability. I think that, in sustainable business activities, the intention to make discoveries
on one’s own, set targets, and think about how
to achieve the targets serves as the driving forceof the company and leads to sustainability.
Watanabe: It think it is a mission of us as teachers to develop students into such persons, who
can work hard at such companies. We therefore
value learning how to learn.
Oshima: In business activities, the homogeneityof members tends to be required. I think it is also
important to blend different people into members to prevent homogeneity from becoming
entrenched. This requires the idea that people
who are different from us are on an equal footingwith us. The employment of people with disabilities involves impure motives. For example, they
initially accept disabled people for a kind of welfare purpose or for the purpose of improving therate of employment of persons with disabilities.
Actually, however, we find that the organizational
climate becomes softer when people with disabilities join our workplace.
Ichikawa: I felt that it is beneficial for us to create an environment where accepting graduatesof special needs schools leads the company
to make new discoveries, gives us a positive
impact, and teaches us how a company should
operate.
Oshima: Not only new employees but various
other employees need to experience it, don’t
they?
Watanabe: School education is provided in agroup setting, and education is the same as
business in this respect. I think that an organization works effectively when each member isrespected, not when all of its members are madeto face the same direction.
Ichikawa: We call it “Team NLM.”

Aiming to create a workplace where thecapabilities of all members are usedeffectively
Watanabe: To educate children and students,
special needs schools provide each one of themwith the support they need. As for companies,
employing people is not enough. I think companies need to think how to make effective use of
the people they have employed. While they havemostly provided physical support, such as eliminating differences in level, psychological support
will also be important going forward. I would likecompanies to discover how to make effective
use of their employees and how to develop them.
Oshima: Concerning employment, we would liketo increase substantial jobs to make Nikkeikin
OhLis Co., Ltd. a larger company. I hope that thepeople involved will change through work, leading the company, and the world, to be friendlier
than ever.
Ichikawa: We would like to recognize our distinct personalities, take responsibility and pridein our work, and establish a culture that permits
each employee to demonstrate their capabilities
without constraints. By doing so, we would liketo help create an inclusive society where diverse
people can demonstrate their capabilities. I
would appreciate your continued support andcooperation.

Meaning of the name“Nikkeikin OhLis Co., Ltd.”The name “Nikkeikin OhLis Co., Ltd.”was determined through an exchange ofideas among members of the company atthe time of its founding. The name “OhLis”
reflects our desire to make it a company
where employees
work with One
Heart, in a Lively
manner, and with
Smiles.

Environment◆Discussion Participants

Watanabe: At the school, we call it “TeamSchool.” That’s something we have in common,
isn’t it?

SocialAt the NLM Group, we established Nikkeikin
OhLis Co., Ltd. in October 2015 to enable
more people with disabilities to work at
more workplaces. Nikkeikin OhLis Co., Ltd.
is actively recruiting people with disabilities
and expanding the categories of jobs fordisabled workers via special needs schoolsin Shizuoka and Tokyo, where its offices arelocated.
This article reports a recent discussion featuring Mr. Hiroki Watanabe, the principal of
the central prefectural special needs schoolof Shizuoka (Shizuoka-ken-ritsu Chuo
Tokubetsu Shien Gakko), President Ichikawa
of Nikkeikin OhLis Co., Ltd., and Mr. Oshima,
who is the vice president of operations anda founding member of Nikkeikin OhLis Co.,
Ltd. They talked about employment and jobsof people with disabilities and what they
aim to achieve through the employment andjobs.

and weaknesses.
Ichikawa: You mean that companies should also
develop their employees and support them fromthis perspective, don’t you?
Watanabe: However, people with disabilities
must not be passive. They must not wait until
people around them find those points. They mustfind the points on their own. The same applies
to support. They must not think that they can do
nothing without the support from people aroundthem.

Governance

Building an inclusive society

A new employee who participated in the practicaltraining found that “I didn’t know how I shouldinteract with them and talk to them before I
came to the school. When I actually interactedwith them, however, I found that I don’t have to
be overly careful. Rather, I could move forward
by treating them normally.”
Watanabe: Those who have difficulty engaging
with people with disabilities just don’t know how
to do so. They simply don’t know how to talk tothem and how to help them. They will graduallyleard how to do it through experience. I think it isimportant that more people learn that in this way.
Ichikawa: Another new employee reviewed thetraining and said that “The boundary between
people with disabilities and those without disabilities is not discrete but is rather gradational.”
The practical training seems to have led the new
employee to feel that there is no clear boundary between the presence and absence of adisability, but people with disabilities and those
without disabilities are on a continuous scale.
The employee also seems to have found thebasic attitude in communication, with which one
tries to understand the other person. I feel thatinteractions with people with disabilities leadthem to find the significance of demonstrating
capabilities as a team of diverse people.

The symbol mark of
Nikkeikin OhLis Co., Ltd.

Corporate Social Responsibility Report 201821

Social

Voices of working mothers
We consider women to be key human assets, who support the Team NLM. We want our female
members who have become mothers to be able to raise their children with a sense of security
while continuing to work. For this purpose, we are improving our workplaces and establishingprograms that allow mothers to work with peace of mind. We are also working to encourage male
employees to participate in childcare proactively, creating relevant programs with the labor unionand other entities. We recently interviewed two working mothers.

firstinter-

Toriumifrom

Chemicalsfrom. Please don’t hesitate to try the one thatsuits you.

Workplace injury trends

theDivision

The next work-of Nippon Light Metal

ing mother is Ms.

Co., Ltd.

Mami

ShiraifromAt present, Ms.

Nikkei Research andToriumi is in charge

Development Center.

of assisting overseas sales and importing and

Ms. Shirai engages

exporting operations.

in research and devel--- What tips do you have for balancing child-opmentrelatedtocare and work?

chemical conversion technologies for anode foils

I often have to take leave suddenly, such as

for electrolytic capacitors.

when my child has developed a fever. Therefore,●Workplace injury trends (lost time injuries)(cases)A luncheon of mothers working at the Tennozu district,which was also attended by mothers on childcare leave andtheir babies

frequently?

6

iment. Before I gave birth to my child, I could

42

I often use the flexible time program. I use it

conduct an experiment without worrying about

when my child develops a fever suddenly andtime, even after a meeting, for example. This islife, such as pregnancy, childbirth, and childcare.

I’m contacted by the nursery. They often call me

impossible now because I have to leave work at

My values have also changed, and now I can

at 15:00 after nap time and around 16:00, but I

a scheduled time to pick up my child. In addition,

enjoy my life, including the tough parts.

don’t have to take half-day paid leave thanks to

the number of experiments I can conduct in a-- Could you give advice to future mothers?

the program. It therefore allows me to take paid

day is limited. Therefore, when I plan an exper-

You may feel uneasy about getting married

leave when I need it, without worrying about how

iment, I try to think harder than before about

and giving birth while continuing to work. This

many days I have left.

what experiment conditions will allow me to

way of working does actually has some tough-- What challenges do you face as a researchobtain effective data efficiently.

elements but also has twice as many enjoyablestaff member?

parts. There are diverse lifestyles to choose

The work I do includes experiments. It takes●Key programs that help employees to balance work and childcare, etc. (excerpt)

Leave/ absence from work

(6 weeks)

Shorter working hours

Childcare leave(8 weeks)

When the child has finishedtheir third year atelementary school

Accumulated annual paid leave taken for childcare (paid)
Leave for nursing care (paid)
Shorter working hour program

PregnancyMen

1 year oldChildbirthleaveChildcare leave

3 years old

Starting
elementary school

Starting
junior high school

9

0

7

8

8

2016

2017

4
2
2013

2014

2015

The fourth mid-term course ofaction for safety and health
Based on the idea that safety comes before
anything else, the NLM Group has developed thefourth mid-term course of action for safety andhealth and is taking steps that are appropriate
for the conditions at each business location.
Under this course of action, we have categorizedtasks to do into those related to field capability, management capability, technical capability,and health capability, as well as comprehensive●The fourth mid-term course of action for safety and health of the NLM Group

Mid-term course of action

Enhance field
capability

Enhance management
capability

Accumulated annual paid leave taken for childcare (paid)
Leave for nursing care (paid)

12

10Enhance comprehensive
capability

Flexible time programChildbirth

13

Enhance technicalcapability

2017

2018

2019

Raising awareness of safety and strengthening activities for preventing accidents
Support for priority business locations
Activities for improving risk sensitivity and uncompromising actions for not overlooking risks
Promoting safety activities that are created in the field
Conducting audits (of all business locations) and expanding the Safety Management System (SMS) certifi¬cation to the overall group
Developing SMS promoters and safety managers internally and providing internal training
Expansion of equipment safety standards throughout the groupmeasure a month later and visit the businesslocation again six months later to confirm thatthe measure continues to be implemented. They
also check if the measure needs to be expanded
across the overall group, giving guidance toeach business location as necessary.
For raising awareness of safety
At the NLM Group, we send a Prompt Injury
Report when a workplace injury has occurredor nearly occurred in a business location of thegroup. The Prompt Injury Report is sent to allgroup companies. At each business location,
the contents of the received report are reported
to persons in charge in the field to prevent theoccurrence of a similar injury. In addition, thedetails of measures for preventing the recurrence of the injury are subsequently introduced
throughout the group in the same way as thePrompt Injury Report.
For enhancing activities for preventing
accidents
At the NLM Group, we provide risk assessment training as an initiative to prevent
workplace injuries. The training session, which
consists of a lecture and practical training, washeld 15 times in 2017 with participation of 324
employees.
The training also includes case studies of
workplace injuries that actually occurred. We
repeat training to imagine situations where
workplace injuries will soon occur and thereby
identifying potential risks, in an effort to develop
the sensitivity to discover risks before an injury
occurs.

Safety activities based on teamwork

Flexible time program

Outside Japan12

about two to three hours to finish one exper-

tough it is to go through rapid changes in daily

Pre-natal leave Post-natal leave

14

14
10

by counting time backwards. I have learned how

Women

Japan

16

8

-- Which program do you use mostI prioritize the tasks to do and try to handle them

In 2017 (calendar year), the number of casesof lost time injuries increased in Japan. The
number remained unchanged outside Japan.

capability which combines the four capabilities.
We are aiming to improve each one of thesecapabilities to prevent workplace injuries.
For supporting priority business locations
At the NLM Group, we provide intensive
support for specific business locations toimprove the safety level of all business locations. Representatives from the Safety and
Health Control Department of Nippon Light
Metal Holdings Co., Ltd. visit these businesslocations once or twice each month to provide
safety education and training, including training
on risk assessment, together with employees.
Safety education is varied in its content, andincludes for instance instruction how to promote
and operate daily activities for safety and health,laws and regulations related to labor safety andhealth, and safety measures for equipment. The
education is intended for managers, supervisors,
workplace leaders, and other personnel and isprovided separately for each job class.
In the event of a lost time injury or a serious injury, representatives from the Safety and
Health Control Department visit the businesslocation where the injury occurred and conduct
an onsite investigation and casualty analysis
before formulating a measure for preventing
its recurrence. They check the progress of theEnvironmentTheviewee is Ms. Miki

Aiming for complete
zero accidents

SocialThe NLM Groupsupports working
mothers.

Safety initiatives

GovernanceSocialReducing risks by means of risk assessment (training and support for practices)

Shorter working hour program
Flexible time program

Enhance healthcapability

Continuing to take countermeasures against back pain and heat stroke and measures for preventing passive smoking
Continuing to take mental health measures and infection control measures

Risk assessment training

22

CSR Report 2018

Corporate Social Responsibility Report 201823

●Number of Screening Committee Meeting meetings

120

100
80

82
65

Quality Assurance Guidelines

87

60
40

A Quality Committee meeting200(1) Ensure the independence of quality assurance departments.

In recent years, Japanese manufacturers
have been responsible for a spate of problems
that have seriously undermined confidence in
the industry.
At the NLM Group, we conducted a comprehensive check to see if any similar problem has
occurred in the group, and we confirmed thatnone have.
It was found in January 2008 that the NLMGroup had sold a product with specifications
that differed from the certified specificationsof fireproof materials. We renovated all of theproperties to which the product was delivered,
thereby replacing the product with a new one.
Deeply regretting this incident, we have thoroughly reviewed the quality assurance system of
the entire group, so as not to repeat the same
mistake.
The six key points of the review are as follows:(2) Where a problem has occurred, report it to
the relevant people promptly and deal with it.
(3) Examine each product and service frommultiple perspectives before selling it.
(4) Comply with laws, regulations, and standards related to products and services.
(5) Strengthen cooperation between quality
assurance departments in the group.
(6) Check that the initiatives (1) to (5) above are
implemented properly.

●Organizational structure for quality assurance and control activities

Nippon Light Metal Holdings Co., Ltd.
President

Supervision

Central Product Safety &Quality Assurance Division

Group company

Group company

Group company

Group company

Group company

Group company

Group company

Group company

Operation

Group Quality Committee
Quality assurance and control managers

Chair: Corporate Officer Central Product Safety& Quality Assurance Division
Appointment Members: Persons appointed by the quality assurance
and control managers of the respective
companies and segments

24

CSR Report 2018(2) Where a problem has occurred, report it to
the relevant people promptly and deal with it
We have established a rule requiring that, whena quality problem has occurred, information about
the problem is provided promptly to the overall
group regardless of who is responsible for the
problem. In FY2017, six problems were reported.
●Number of serious quality-related matters thatwere reported

16

Number of prompt reports

14
12

(1) 
Ensuring the independence of quality
assurance departments
To ensure the independence of quality assurance departments, we established the Central
Product Safety & Quality Assurance Division
under the direct control of the president, as anorganization that oversees the quality assurance
departments of all companies and segments.

8

8

8
6

5

4
2
0

Number of recalls

10

10

6

The aluminum industry is not immune from thequality problems that surfaced in the Japanesemanufacturing industry last year. Recognizing
this, the Japan Aluminium Association has developed the Quality Assurance Guidelines. These
guidelines are aimed at “preventing the occurrence of inappropriate conduct and maintaining
the status without such conduct.” The NLM Groupparticipated in the development of the guidelines
as a working member of the association.
Currently, we have identified our issues within
the group and are taking measures to conformto the guidelines.

70

3
0
2013

4

2014

2015

2016

2017

meetings of the Screening Committee Meetingas necessary to check whether the council isoperating appropriately, for example.
(4) C omply with laws, regulations, and standards related to products and services
November is quality month, and each year
we conduct full quality checks within the NLMGroup. We also conduct special full checks ofthe compliance of our systems and management programs when a quality accident has
occurred at a non-NLM Group company or in asimilar case, taking it as a warning to us.
In FY2017, we conducted full quality checks
based on the following three themes:

departments should do.”(6) Check that the initiatives (1) to (5) above
are implemented properly
We conduct quality audits of all of ourdomestic and overseas facilities every year
to check if measures (1) to (5) continue to be
implemented. In these audits, we share points
needing improvement related to quality with theaudited departments in question with the aim of
improving the level of their quality assurance.
In FY2017, 93 problems were pointed out and123 suggestions were given at 66 facilities. In
addition to the existing audit items, we checked
the conformity of our products to specifications

Fostering human assets for quality
assurance
The Central Product Safety & Quality Assurance
Division provides quality training, which is aimed at
improving the level of quality assurance of the overall group. In FY2018, we started an exchange of
personnel in charge of quality within the group as a
new initiative, in addition to continuing the existinggroup training and voluntary quality training.
In this program, the Central Product Safety &Quality Assurance Division accepts employees
dispatched from group companies and has themengage in practical work at the division, aiming toequip them to play a role in the quality assuranceof the group.

2

1
2014

2013

1. The legality of our products and services
2015

2016

2017

(3) Screening Committee Meeting Examine
each product and service from multiple
perspectives before selling it
The Screening Committee Meeting meets
whenever a product is launched or there is an
important change, such as a change in the material or manufacturing process of a mass-produced
product. Reviews are conducted again and again
until the new product, material, process, or any
other subject is deemed acceptable.
This initiative was introduced in 2008 andhas now been entrenched in the overall group.
The Screening Committee Meeting examines
the subject from multiple perspectives to ensurecompliance with laws and regulations, productsafety, and conformity to quality requirements. By
applying their specialized knowledge, membersof the council check such points as whether the
adopted purchase/ production system, process,cost, and inspection method enable the specifications promised to customers. If impossible
specifications are detected, we must improve
the process, negotiate with the customer tochange the specifications, and complete othertasks. Members of the Central Product Safety& Quality Assurance Division participate in

2. The conformity of our products and services
to customers’ specifications
3. Appropriate handling of inspection data

Focusing mainly on the mechanism of our production, we conducted full checks of rules related tothe production process at all facilities, from production
instruction to shipment, and the status of operation of
the rules. As a result, we confirmed that there is no
problem with respect to the above themes.
(5) S trengthen cooperation between quality
assurance departments in the group
To continue to implement these measures, we
needed to establish a quality assurance system thatapplies to all business departments in the group ina cross-sectoral manner. We therefore set up theGroup Quality Committee chaired by the director in
charge of quality. This committee meets twice a year.
At the meetings, the participants receive
information about the group’s quality policies,
approve the quality management promotion
plan, share information about quality problems that have occurred in the group and theresults of quality audits, discuss the problems
and the result, and engage in other activities. In
FY2017 the participants held a group discussion under the topic “importance of customers’
specifications and things that quality assurance

Environment

120

A quality audit

SocialTireless efforts to maintainand foster high quality
Quality management system

required by customers and confirmed that noneof the audited facilities have any problems.

(cases)140

Voice of a person who was assigned to the Central Product Safety &Quality Assurance Division
The NLM Group has plants engaging in various operations and I feel that there
are diverse views on quality assurance. I would like to be a quality assurance person who can always think from customers’ perspective, by obtaining knowledge
through interactions with quality assurance officers from those plants.
Assigned from: Nagoya Plant, Nippon Light Metal Co., Ltd.

Mikio Tanaka

Governance

Assuring quality in the processes fromproduct planning to delivery to customers

SocialVoice of a person who was assigned to the Central Product Safety &Quality Assurance Division
Before I was assigned to this division, I was in a position to receive quality
audits. I would like to use this human resource exchange as an opportunity toacquire the perspective of those who conduct quality audits and to be capable offinding things that I couldn’t find before and making improvements.
Assigned from: Nikkei Extrusions Co., Ltd.

Kenichi Kitazoe

Corporate Social Responsibility Report 201825

Supporting local communities
in human resource development

GovernanceInitiatives we take inlocal communities to support
human resource development* A special subsidiary is established to promote and stabilize the employment of people with disabilities.

Lecture and science experimentclass
At the NLM Group, we provide local children
as the future leaders of each community with
opportunities to develop a career perspective
through interactions with professionals. We
also hold activities to help them understand therelationship between companies and the local
community.
The Shimizu Plant of Nippon Light Metal Co.,
Ltd. dispatch its employee to a local junior highschool as a lecturer, who told students how achemical plant works and what workers do at
the plant. In addition, at the lifelong learning
project hosted by the local government, theShimizu Plant gave a science experiment class,which allowed elementary school students toenjoy learning science.

CSR Report 2018

The group’s governance structure
The NLM Group’s basic approach to management is systematized as the Group Management
Policy, which consists of three pillars and 13
basic policies.
“Nippon Light Metal Holdings” “management policy”

Matters concerning the NLM Group’s governance are managed based mainly on ruleson the group stipulated by the NLM HD, while●Governance structure chart

The fire extinguishing competition

Appointment/ removal

Social contribution accounting
In FY2017, we took part in 282 local programs including the above, and expenses forsocial contribution totaled approximately 133
million yen.
●Expenses for social contribution

Appointment/ removal

Audit reports

Directors
Outside directors
Appointment/
removalStatutory auditor audits

A lecture class

163
121

Compliance Committee
CSR Committee
Quality Committee
Environment Committee

Reports andproposals

133
117

95

Opinion exchange

2013

2014

2015

2016

2017

Audit reports

Appointment/ removal(million yen)

180
160
140
120
100
80
60
40
20
0

Appointment/ removal

Audit reports/ Opinion exchange

Auditors
Outside auditors

26

Nippon Light Metal NLM HD Co., Ltd. (theNLM HD) is the holding company that is listedon the First Section Market of Tokyo Stock
Exchange, Inc. We have formed the NLM Group,
which consists of 76 consolidated subsidiaries
including Nippon Light Metal Co., Ltd. and Toyo
Aluminium K.K. as the core operating companies, and 15 affiliates accounted for by theequity method (as of March 31, 2018). At the
NLM Group, we operate businesses with a focus
on the manufacture and sales of aluminumproducts and related products.

Internal audit

Nikkeikin OhLis Co., Ltd. is a special subsidiary* of the NLM Group, which was establishedto promote the employment of people with disabilities. This company dispatches its employees
to the special needs schools from which they
graduated, to explain about their work and themental attitude they have as working members of society. They also tell students about
the importance of working. The company also
accepts student apprentices from special needs
schools on a regular basis. In FY2017, theWe contribute to the creation of employment
and job assistance in local communities throughactivities that we carry out using the various
skills of our employees.
At the Nagoya Plant of Nippon Light Metal Co.,
Ltd., we dispatch lecturers to special training sessions
on arc welding, which are organized by the Ichinomiya
Labor Standards Association. We also offer venues forpractical training and provide simulation training using
the equipment of the Nagoya Plant.
At Nikkei New Business Co., Ltd., which manages the business establishments of the NLMGroup, certified specialists in building cleaning,
who handle building maintenance operations,serve as lecturers at classes for trainers of sanitary workers, which are hosted by the Niigata
Building Maintenance Association, and classes
for building cleaning workers that are given at

In Shizuoka City, a fire extinguishing competition is held by the local disaster prevention
association each year to raise citizens’ awareness of fire prevention and disaster control.
Participants compete over their operation skills
in categories including small pump, indoor fire
hydrant, and water extinguisher.
Selected members from the Kambara Complex
and Shimizu Plant of Nippon Light Metal Co.,
Ltd. take part in this competition each year andfully demonstrate the skills they have developed
through daily training. These facilities also cooperate in the operation of the event by dispatching
their members as judges and officials.

the autonomy of each company is respected.
In addition, decisions on matters that affect theoverall group are made after they are examined from multiple perspectives by the Group
Executive Committee, which consists mainly of
directors of the NLM HD. Among these matters,
those that are especially important are discussed
and determined by the Board of Directors of the
NLM HD.
The Board of Directors of the NLM HD consists of 13 members including four outside
directors (including three independent directors*). They met 12 times in FY2017. To operate
the Board of Directors flexibly and ensure fruitful discussions at its meetings, the NLM HD
has separated management supervision frombusiness execution by introducing an executive
officer system.
In addition, the NLM HD has set up a Board
of Auditors to maintain the institutional independence of the auditing function. The Board ofAuditors consists of six members including threeoutside auditors and met 11 times in FY2017. In
addition, it has one full-time employee who is in

Accounting auditor

Promoting employment of people
with disabilities

Support for acquisition of job skills

Cooperation in fire prevention anddisaster control events

NLM Group

Board of Auditors

Employee visiting a junior high school as a lecturer

An employee explaining about his work at a special needs
school

the Niigata Prefectural Silver Human Resources
Centers Association.

Opinion exchange

charge of assisting in auditing operations. (All ofthese figures are as of June 30, 2018).
Thirteen directors (term: one year)

Environment

company accepted 15 apprentices, who experienced work such as cleaning in the Nikkei
Research and Development Center, for a twoweek training period.

Aiming for trusted governance andcooperation within the group

Four outside directors (including three independent directors)
Six auditors (term: four years)

Three outside auditors (All of them are independent auditors*.)* Defined by of Tokyo Stock Exchange, Inc. as “an outside director/auditor
who is unlikely to have conflicts of interest with general shareholders“Communication with stakeholders
At the NLM Group, we value the sharing
of information and exchange of opinions with
our stakeholders, which we do by communicating with them. We respond to the opinions
we receive by reporting them to the persons
responsible for the relevant business and to
management, so that they will be reflected inbusiness management.
We share issues and exchange opinions with
our employees via the labor union and otherentities. We also communicate daily with individual employees through interviews, meetings,
and events.
With regard to customers, salespersons
and those responsible for each business shareissues and exchange opinions with customers
through daily business communication. Withbusiness partners, purchasing officers and those
responsible for each business share issues andexchange opinions with them through daily
business communication, briefings for business
partners, and other opportunities.
We communicate with local communities byparticipating in various local events and inviting
local residents to events held at each business facility, for example. In areas where wehave a relatively large environmental or otherimpact, we share issues and exchange opinions with local residents by holding regular andirregular briefing sessions and creating otheropportunities.
Corporate Social Responsibility Report 2018

SocialAt the NLM Group, we apply our professional
knowledge, skills, and experience to support local governments, schools, and otherentities in their efforts to develop the humanresources needed in each local community.

Governance, risk management, and compliance

GovernanceSocial27

● Website

http://www.nikkeikinholdings.com/csr/ (English)*1 Business strategies, market, economic fluctuation, legal system reform,
and others*2 Defective product or service, environmental accident, and others*3 Natural disasters, accidents, and others●Priority risks

Failure todisclose information
on a timely basis

Security
export control

Leakage of
trade secretDefective
product/
service

Environmental
problem

Natural disasters/
accidents

Priority risks

Problem withinformation
systemSafety/healthproblems

communicate with stakeholders proactively, forexample. To inform officers and employees thoroughly of these codes, a handbook containing
them is distributed to all of them so that they can
carry it around.
Moreover, to promote understanding of, andinform employees thoroughly of, the codes ofconduct, a compliance meeting is held at each
workplace twice a year for repetitive learning.
At the meetings, participants discuss problems faced in the workplace, case examples
of compliance violations that occurred at otherdepartments, and other subjects. In FY2017, a
total of 2,102 workplace meetings were held,with 20,237 participants in total (participation
rate: 92%).

Internal control
The Board of Directors of the NLM HD has
determined the Basic Policy on the Developmentof the Internal Control System and is striving toapply the policy uncompromisingly. In addition,
the Board of Directors receives a report about
the status of internal control every two quarters and provides appropriate supervision andinstructions.

Risk management
Under the risk management system of the
NLM Group, risks are classified into strategicrisks*1, operational risks*2, and hazard risks*3.
Above all, we specify priority risks mainly among
operational risks, and we have set up a supervisory department at the NLM HD to respondflexibly to individual risks. The supervisorydepartment handles risks by cooperating withbusiness departments.
The Board of Directors of the NLM HD
receives a report on the overall risk management
situations twice a year and evaluates the contents of the report before giving the necessary
instructions.
In FY2017, we focused our efforts on suchactivities as strengthening the information management system of the overall group, developinggroup rules on personal information protection

28

CSR Report 2018

To ensure appropriate financial reporting, wehave established and operate an internal control
system over financial reporting. For this purpose,
we have appointed an internal control executive
and an internal control promoter at each groupcompany and segment and promote appropriate
establishment and operation of internal control
system. The evaluation is undertaken by auditing
departments that have a certain level of auditing
capabilities and whose independence is secured.
The status of the establishment, operation, andevaluation is reported to auditors, accounting
auditor, and the Board of Directors of the NLM
HD and corrections are made as needed.

Compliance Committee
The NLM Group has set up a Compliance
Committee, which is chaired by the president andCEO and consists of the members of the Boardof Directors of the NLM HD. The Compliance
Committee prepares a compliance promotion
plan every year and checks the status of implementation of the plan on a quarterly basis.

The codes of conduct of the NLM Group aresummarized in the Group Compliance Codes,
which require all officers and employees of
the group, including those outside Japan, tocomply with laws and regulations, corporate
ethics, and business etiquette, act sensibly, andWe recently spoke with Mr. Masato Ono, who has been involved in the
management of Nippon Light Metal Co., Ltd. as an outside director sinceprior to the establishment of the NLM HD. We asked him for his opinions
about corporate governance of the NLM Group and other issues.

-- What are your feelings about the management structure of the NLM Group?
I think it was a good move to disperse therisk of the wide range of business fields byadopting the holding company structure. I think
the system, under which the NLM HD develops
strategies and group companies execute businesses under the umbrella of governance by
NLM HD, is working.
-- Could you tell us what problems you see
While the NLM Group has a range of seg-

Chapter 1. P romotion of compliance
Chapter 2. R esponsibilities for employees
Chapter 3. B asic internal rules
Chapter 4. R esponsibilities for customers andbusiness partners
Chapter 5. R esponsibilities for society
Chapter 6. R esponsibilities for shareholders
and investors

Whistleblowing system
A whistleblowing system has been introduced to major group companies. In addition,
the NIKKEI HOTLINE has been set up as thegroup’s common contact office for whistleblowers. NIKKEI HOTLINE provides consultation or
handles whistleblowing in about 20 cases every
year.
A hotline (opinion box system) has been
introduced to major overseas group companies
as well. The status of operation of the system
is reported to the secretariat of the Compliance
Committee every two quarters.
●Number of cases that were reported to NIKKEIHOTLINE and where investigations were conducted in response
12
10

ments and fields as a manufacturer, I have theimpression that communication between segments is somewhat insufficient. If the heads ofthe different companies and business departments are those who have moved up through therisks in the same field or segment, it is difficult-- Please give a message to employees.

for them to express their opinions to other seg-

Interactions with the other outside directors arements partly because they are responsible forvery meaningful because they have experience

Please try to think what the vision set by thethe earnings of each. To overcome these prob-

in diverse fields. I think it is also very good thatpresident, “groundbreaking innovator of alumi-

lems, you are making improvements throughthose people have opportunities to express their

num and beyond as Team NLM,” means to you.

initiatives such as cross-functional collaboration.

opinions proactively, separately from meetings

You are young and flexible with dreams for the

However, I don’t think they are enough. Movingof the Board of Directors. We look forward to

future. As such, I ask you to think about the future

forward, you will need further interactions

exchanging opinions and having discussionsof Team NLM, with the pride of being a member

between human assets from different fields.
-- Could you tell us your opinions about ourfrom a standpoint and viewpoint that are differ-of a comprehensive aluminum manufacturer.

ent from those of board members who are inThis requires not only internal communication

charge of specific work sites.

at each company but also communication within

initiatives for improving the effectivenessof governance?

the overall group. I believe that the first step to-- Could you tell us what you keep in mind asrealize the president’s vision is taken only when

an outside director?

each member of Team NLM communicate moreduction sites, interactions between outside

I think my duty is to give opinions concerning

actively with others.

directors, and free discussions. It is very goodthe modality of governance based on my experi-

to have opportunities to inspect work sites.

ence as a business manager. By rights, internal

These initiatives include inspections of pro-directors need to be more proactive in discussing not only issues in their own segments but
also their impact on the overall company andother segments, something that I think is diffi-(cases)Compliance Codes

Activating communication in
Team NLM!

in our modality of governance?
Group Compliance Codes

Internal control over financial
reportingInterview with an Outside Director

Environment

associated with changes to the law, and developing a business continuity plan.

GovernanceSocialWe share issues and exchange opinions with
our shareholders and investors through general
meetings of shareholders, earnings presentations, tours of our facilities, individual meetings,
and other opportunities.
In addition, we disclose our CSR Report,
Annual Report, and various other communication tools on our website and via other media
and share issues and exchange opinions via
telephone, e-mail, and other means. We also
revise our communication tools constantly. For
example, we improve the accessibility of ourofficial website and provide information in languages other than Japanese.

Governance, risk management, and compliance

Governance

Governancecult in practice. I believe, however, that if this10

8

issue is overcome, discussions at the Board of

9
7

7

6

Directors’ meetings will be even more effective
and the role of the meetings as a forum for busi-

4

ness management will be more significant.

3

Interviewer: Kaori Kusunoki(Legal Dept., Nippon Light Metal Co., Ltd.)

2
0

2013

2014

2015

2016

2017

Corporate Social Responsibility Report 201829

Corporate overview

Business summary■ Alumina, Chemicals, and Ingot BusinessNippon Light Metal Holdings Company, Ltd.
(Abbreviated to “NLM HD”)

Trade name:

Established:

Paid-in-capital:

5703

46,525 million yen

Head office location:

400

402.8

431.5

464.4 448.4 481.4●Ordinary profit (consolidated)

12,855 (consolidated)of parent (consolidated)●Equity ratio (consolidated)

(%)

(yen)

25

50

40

20

9
8
7
6
5
4
3
2
1
0

20.6

24.5 26.3

29.5

5
2013 2014 2015 2016 2017

0

18.0

15.5

15

35.6 37.2

40
30 25.5 26.6

9.6

10

12.7

10
0

19.5

28.8

20

5.1

10
0

2013 2014 2015 2016 20172013 2014 2015 2016 2017

fields, such as for automotive parts and railway cars in the transport industry and for semiconductor/liquid-crystal manufacturing equipment and●Dividend(billion yen)

20

2013 2014 2015 2016 2017

●Profit attributable to owners

50

200
100

photosensitive drums in the electrical and electronics industry. The NLM

8Group makes use of its technologies and expertise cultivated over many
years to proactively develop products that meet customers’ needs and to
supply highly functional sheets and extrusion products.

8●Net sales●Profit attributable to owners(billion yen)(billion yen)

600

25

of parent

400

20

(%)

19.5

18.0

20.0

1.0 0.9
0.8

1.0
0.8

12
10
8

3,000

0

2015

Toyo Aluminium K.K. plays the leading role in these businesses. We haveestablished our position as a leading manufacturer by developing a wide
range of products that incorporate aluminum’s special characteristics andthat are useful in society, industry and everyday life. They include pack-

0.2

2

0

0

0.0

0

2016 2017 2018 target under the mid-term planaging materials for food and pharmaceuticals, products for electronics,
aluminum paste, and solar cell materials. We develop new fields by utilizing
our own technologies as the foundation and provide a range of highly func-

2016 2017 2018 target under the mid-term plan

2016

Sales ratio 22.2%

2017

Sales 106,955 (million yen)

■ Sales (million yen)

■ Operating profit (million yen)

120,000

106,955
9,767

103,340

98,16590,000

7,775
3,058

30,0002015

2016

10,958169,019
9,783

0

2015

2016

Sales ratio 19.6%

2017■ Operating profit (million yen)

12,000102,001

93,692

6,829

60,00094,365

5,478

4,856

9,000
6,000
3,000

30,000Global network

0(Fiscal year)

Sales 94,365 (million yen)

■ Sales (million yen)

0

9,000
4,500

45,000tional materials and products in markets at home and abroad.

18,00013,500

10,24590,00090,000

0(Fiscal year)■ Operating profit (million yen)

154,684

149,220

135,000

2017

Sales 169,019 (million yen)

■ Sales (million yen)

120,000

9,000

3,000

Sales ratio 35.1%
180,000

12,0006,000

60,000■ Foil and Powder Products Business

10.0

4

5
2016 2017 2018 target under the mid-term plan

10.7

6

0.4

100
2016 2017 2018 target under the mid-term plan

9.6

9,000
6,000

14

0.6

10

200

●ROCE

1.2

15

300

●D/E Ratio

12,000

0(Fiscal year)■ Fabricated Products and Other Businesses

2013 2014 2015 2016 2017

8,954

30,0000

The NLM Group has many group companies that deal with distinctive
fabricated products. Among them, truck bodies from Nippon Fruehauf Co.,
Ltd. and commercial refrigerators and freezer panels from Nikkei Panel
System Co., Ltd. are highly valued for their quality and thereby enjoy the
top share in each industry. We also supply other aluminum fabricatedproducts that are closely related to our everyday lives, including anodized
aluminum foil for aluminum electrolytic capacitors, automotive parts, andcarbon products.

101,840 10,126

60,000

6
4

109,8449,138

5

Targets for key indicators of the mid-term management plan and actual achievements

500.0

90,000■ Sheet and Extruded Products Business(billion yen)30

500 448.4 481.4

111,100

Aluminum sheets and extrusion products are used in a wide range of300

0120,000

the development of highly-functional ingots that cater to customers’ needs.

Number of employees:

2-2-20 Higashi Shinagawa, Shinagawa-ku, Tokyo●Net sales (consolidated)

500■ Operating profit (million yen)range of fields, including as fire retardants, raw materials for ceramics, and481,439 million yen (consolidated)*All data are in FY2017 or as of March 31, 2018.

(billion yen)

■ Sales (million yen)ment manufactures a variety of aluminum ingots and is highly evaluated forSales:

Sales 111,100 (million yen)ide, alumina, and various other chemicals. These products are used in aindustrial materials for the manufacture of pulp and paper. The ingot seg-

Securities code:
Nippon Light Metal Holdings Company, Ltd.

Sales ratio 23.1%

The alumina and chemicals segment manufactures aluminum hydrox-

October 1, 2012

2015

2016

2017

0
(Fiscal year)■ Alumina, Chemicals, and Ingot Business ■ Sheet and Extruded Products Business ■ Fabricated Products and Other Businesses ■ Foil and Powder Products Business■ ToyaI Europe■ Nikkei MC Aluminum (Kunshan)■ Nikkei MC Aluminum (Thailand)■ ■ ■ Nikkei Singapore Aluminium■ CMR Nikkei India■ Guangxi Zhengrun Nikkei High Purity Aluminum Technol■ NI Nikkei Shenzhen■ Nikkei (Shanghai) Body Parts■ ■ Nikkei Siam Aluminium■ ■ Nikkei (Shanghai) International Trading■ Shandong Nikkei Conglin Automobile Parts■ Nonfemet International (China-Canada-Japan) Aluminium Co., Ltd.
■ Changchun Nikkei Railway Vehicle Equipment■ Toyo Precision Appliance (Kunshan)

30

CSR Report 2018

■ Nikkei MC Aluminum America■ INMOBILIARIA WTV■ T.S.T. Nikkei Metales■ Nippon Light Metal North America■ ToyaI America■ PT. Nikkei Trading Indonesia■ Nikkei Panel System Vietnam■ Fruehauf Mahajak■ Shandong Conglin Fruehauf Automobile■ Suzhou Toyo Aluminium Ekco Household Products■ Toyal Zhaoqing■ Toyo Tokai Aluminium Hanbai (Shanghai)■ Hunan Ningxiang JiWeiXin Metal Powder■ Toyo Aluminum Ekco Trading (Suzhou)■ Toyal MMP India■ Toyal (Thailand)■ Sam-A Aluminium

Nippon Light Metal Holdings■ ■ ■ Nippon Light Metal■ ■ ■ Nikkei Sangyo■ Shizuoka Kosan■ Kinki Kenmazai Kogyo■ Aluminium Wire Rod■ Nikkei MC Aluminium■ Iharanikkei Chemical Industry■ Tamai Steamship■ Nikkeikin Kakoh Kaihatsu Holdings■ Nikkei Inazawa■ Nikkei Metal■ Nikkei Extrusions■ Chugoku Nikkei Katahan■ Riken Light Metal Industry■ Nisshin■ Nikkeikin Aluminium CoreTechnology■ Nikkei Technology Center■ Nikkei Niigata■ Nikkei Kambara■ Toyo Rikagaku
Kenkyusho■ Nikkei Kenzai Kogyo■ Nippon Fruehauf■ Nikkan■ NKS■ Nikkei Matsuo■ Nikkei Hokkaido■ Nippon Electrode■ Fuji Trading■ Shimizu Seibi■ Nikkei New Business■ NLM ECAL
■ Nikkei Panel System■ Shiga Nikkei■ Shimonoseki Nikkei■ Arumi Reinetsu■ Nikkei Information Systems■ Nikkeikin OhLis■ Nikkei Logistics■ Keinara■ Nikkei Fujioka■ Fruehauf Industries■ Fruehauf Hokkaido■ Fruehauf Okayama■ Fruehauf Kyushu■ Fruehauf Shiga■ Fruehauf Service■ Seiko Electric■ Arakawa Hydro Electric Power■ Sumikei-Nikkei Engineering■ Nikkei Heat Exchanger■ Toho Earthtech■ Toyo Aluminium■ Toyo Aluminium Ekco Products■ Toyo Tokai Aluminium Hanbai■ ALP■ Toyo Aluminium Kosan■ ALPHAMIC

Corporate Social Responsibility Report 201831

Independent Assurance Report

Third-party opinions
Our responses to previous third-party opinions
The following are opinions (from Mr. Toshihiko Fujii) about the CSR Report 2017 of the NLM Group and the responses of the group to the opinions.
Major opinions

Responses of the NLM Group

Applicablepage

I would like to recognize the expansion of the scope of the disclosed information to coveroverseas sites. Starting from the fiscal year under review, data about overseas sites areincluded in the actual results of greenhouse gas emissions. Needless to say, it is important
to share information and goals by involving overseas plants and offices.

Thank you very much for your comments. In FY2017 again, we expanded the scope of
information related to safety and personnel affairs, including greenhouse gas emissions.

P16, 1734, 35

I also commend the steady implementation of human rights due diligence in the supply
chain. This issue will be increasingly important from a global perspective, and I hope thatthe group will enhance the range of information it discloses in addition to continuing totake this initiative.

We continue activities in the supply chain.

P27

Greenhouse gas emissions from the group’s sites in Japan have increased. However,what I am concerned about is not the increase in emissions itself. It is essential that theincrease in emissions should not be a psychological barrier to formulating an ambitious
new plan. The group must avoid being excessively preoccupied with immediate issues.

As you pointed out, greenhouse gas emissions have continued to increase with rising production, and we have yet to develop a plan to reduce overall emissions. On the other hand,
discussions about this initiative have triggered ongoing discussions about climate change,
and we have set an emissions intensity target. We will continue to discuss all possibilities.

P16

The group needs to implement CSR activities that are more closely related to SDGs. The
beginning of Step 1 activities in the fiscal year was an important first step. I hope thatthe group will ensure that its CSR activities appeal to a wider range of stakeholders byassociating them closely with SDGs. I expect the group to take initiatives for tackling global
common issues that are unique to a groundbreaking innovator of aluminum and beyond
with a unique set of values.

At present, our activities include mapping, awareness-raising activities, and discussions at
CSR Committee meetings and meetings of relevant personnel. Moving forward, we would
like to discuss initiatives to be linked with activities expected of NLM while following theprocedures described in the SDGs Compass.

P3 andothersThe NLM Group has established an internal system for promoting CSR

Recycling is another major environmental issue. An index for the level ofand has been proceeding with initiatives under this system. It is importantachievement made each year will facilitate understanding, and the group

that, based on these fundamental CSR activities, the group clarify its oper-

will need to evaluate the achievements of its activities in chronological orderations leading to the creation of corporate value related to environmental

based on the index.

and social elements in the form of a sustainability strategy. Possible initia-

With regard to the social aspect, the report shows that initiatives focused

tives under the strategy include the development of products that reduce theon human resources, such as those on inclusive society and the active partic-

impact on the environment with the properties of aluminum, as well as effi-

ipation and development of female employees, have remained well ingrained.

cient, advanced recycling that achieves carbon reductions in overall society

As for activities related to people with disabilities, I commend the fact that theand innovation throughout the value chain. All of these initiatives are alreadyactivities have extended to reforming the awareness of general employees

being implemented at present, and they will strengthen cooperation with theinstead of simply meeting statutory requirements. I ask the group to con-development and sales departments. I would like to suggest here that thetinue its activities for labor safety and quality control with a comprehensive

group also discuss SDG-related issues. Introduction of the group’s distinctive

approach, by separating them from activities for contributing to local com-initiatives along with specific explanations of yearly progress related to eachmunities and by maintaining awareness of compliance, regarding them as

issue will facilitate understanding by both internal and external stakeholders.

responsible activities that support the group’s business foundation.

Based on the above, I would like to point out the following concerning thegroup’s CSR activities in the fiscal year under review.

With regard to governance, the Corporate Governance Code has been
established and corporate governance reports should have been developed.

First, concerning environmental activities, I would like to make a sugges-

Therefore, it is important that the overall group have a common under-tion about the issue on greenhouse gases, which was pointed out last year. In

standing of the meaning and contents of governance. Governance means

the fiscal year under review, the group clarified its future direction by setting

a structure for management andan emissions intensity target to achieve by 2030. However, overall emis-

supervision. Therefore, even if

sions will increase if the group’s production activities continue to intensify,

communication with stakeholders

which means that the efforts of people on the frontlines will not be enough.

is also included in governance, theSome other companies have declared that they will only use electricity fromgroup should emphasize initiatives

renewable energy sources. Since its founding, NLM has been generatingthat serve as risk handling, that is,

power using in-house hydropower generation equipment that it developed on

initiatives related to how to face andits own. I think that one possible measure the group can take is to conduct

resolve stakeholders’ concerns anda comprehensive examination of the energy used for its power generation.

issues.
Managing Director,
So-Tech Consulting, Inc.

Mizue Unno

32

CSR Report 2018

Corporate Social Responsibility Report 2018

33

Data
Coverage

2015

2016

2017

Unit

Coverage

The Environment

Average annual overtime work hours*10
768

796

★ 802

kilo tons-CO2

-

138

128

kilo tons-CO2

Consolidated (Japan only)

2.09

2.19

2.09

tons-CO2/ Million yen

Category 1: Purchased goods and services *3

Consolidated

1,858

1,962

★ 1,926

kilo tons-CO2

Category 2: Capital goods

Consolidated

17

21

22

kilo tons-CO2

Greenhouse gas emissions (Scope 1, Scope 2)

Consolidated (Japan only)
Consolidated (besides Japan)*1

Greenhouse gas emission intensity per unit of sales
Breakdown of Scope 3 emissions*2

Category 3: Fuel and energy not included in Scope
1 or 2

Consolidated

34

33

28

kilo tons-CO2

Category 4: Upstream transportation and distribution

Consolidated

11

11

11

kilo tons-CO2

Category 5: Waste generated in operation

Consolidated

3

4

4

kilo tons-CO2

Category 6: Business travel

Consolidated

0

0

0

kilo tons-CO2

Category 7: Employee commuting
Energy consumption

3

3

3

Consolidated (Japan only)

8.5

9.5

9.8

PJ

Consolidated (Japan only)

4.9

4.9

5.0

PJ

Consolidated (Japan only)

36.5

39.6

38.4

GJ/ Million yen

Consolidated (Japan only)

678

618

576

kilo tons

SOx emissions

Consolidated (Japan only)

312

339

389

tons

NOx emissions

Consolidated (Japan only)

437

388

375

tons

Quantity of water intake*4

Consolidated (Japan only)

22.6

23.7

23.0

Total amount of discharged water

Consolidated (Japan only)

26.1

30.5

COD emissions

Consolidated (Japan only)

92

109

Recycled/Reduced

Consolidated (Japan only)

33.2

Disposed (landfill)

Consolidated (Japan only)

Environmental conservation expenditure: Investment

Environmental accounting-

161

hours/ person

-

-

9.9

days

Consolidated

Female

-

-

9.7

days

Consolidated

Male

-

-

52.5

%

Consolidated

Female

-

-

71.6

%

Consolidated (Japan only)

Male

-

-

1

numberConsolidated (Japan only)

Female--55

numberConsolidated (Japan only)

Male

-

-

2

numberConsolidated (Japan only)

Female--1numberConsolidated (Japan only)

Male

-

-

0

numberConsolidated (Japan only)

Female--61

numberConsolidated (Japan only)

Male

-

-

34

numberConsolidated (Japan only)

Female--2

number

--29.2

thousand yen/ person

Non-consolidated(Nippon Light Metal Co., Ltd.)

2.41

2.47

2.59

%

33.5

32.4

kilo tons

Non-consolidated(Toyo Aluminium K.K.)

2.12

2.05

2.03

%

2.4

2.9

2.2

kilo tons

Consolidated (Japan only)

1,612

2,009

1,983

million yen

Environmental conservation expenditure: Expenditure

Consolidated (Japan only)

5,517

5,847

5,247

million yen

Economic effect of environmental conservation activities: Earnings

Consolidated (Japan only)

383

397

486

million yen

Economic effect of environmental conservation activities: Changes in expenditure*5, *6

Consolidated (Japan only)

3,174

2,770

-1,440

million yen

2

3

0

cases

Number of complaints related to the environment*8

Consolidated

11

4

10

cases

SafetyNumber of workplace injuries*14

Full-time directors
Employees (managerial employees)
Employees (regular employees)
Employees
Japan
Asia

Frequency rate of lost-time injuries*14, *15

Consolidated (Japan only)

13

9

12

cases

Consolidated (besides Japan)

7

8

8

cases

Consolidated (Japan only)

56

43

65

cases

Consolidated (besides Japan)

4

9

5

cases

Consolidated

0.70

0.46

0.56

%

Non-consolidated(Nippon Light Metal Co., Ltd.)

0.59

0.00

0.27

%

3

9

7

cases

Compliance
Number of cases that were reported to NIKKEIHOTLINE and resulted in investigations

Consolidated
Number of times the meeting was held

Consolidated

2,038

2,230

2,102

times

Number of participants

Consolidated

19,60019,991

20,237

total number

Number of patent publications*14

Consolidated

180

126

182

cases

numberNumber of patent registrations*14

Consolidated

93

143

107

cases

90

numberQuality assurance

8,385

8,295

number

0

0

0

cases

2,083

numberNumber of violations of laws or regulations in theprovision of products/services

Consolidated

2,278

12,101

12,26512,008

numberConsolidated

Male

170

187

190

numberConsolidated

Female000numberConsolidated

Male

1,506

1,529

1,540

Consolidated

Female67

73

Consolidated

Male

8,258

Consolidated

Female2,270

Consolidated

Total

Consolidated

Male

7,109

7,173

7,361

numberConsolidated

Female

961

980

1,048

numberConsolidated

Male

2,419

2,506

2,243

numberConsolidated

Female

1,337

1,331

1,089

number

U.S. and Europe

Consolidated

Male

236

235

231

numberConsolidated

Female39

40

36

numberTotal

Consolidated (Japan only)

-

-

596

number

Percentage to employees

Consolidated (Japan only)

-

-

7.1

%

Consolidated (Japan only)

-

-

197

numberTotal

Consolidated (Japan only)

-

-

401

number

Percentage to employees

Consolidated (Japan only)

-

-

3.5

%

Three-year retention rate*10*11

Consolidated (Japan only)

-

-

88.4

%

Number of those who were re-employed after
retirement

Non-consolidated(Nippon Light Metal Co., Ltd.)

17

26

8

numberLabor Union participation rate

Non-consolidated(Nippon Light Metal Co., Ltd.)

100

100

100

%

Number of new graduates who were recruited*10

Lost-time injuries
Non-lost-time injuries

Compliance meeting*9

CSR Report 2018

-

Male

Employment rate of people with disabilities*12, *13

Consolidated

Average annual hours worked*10

FemaleConsolidated

tons

Number of accidents related to the environment*7

Average duration of service*10

Consolidated (Japan only)

million m

cases

Average age*10

hours/ person

890

Number of employees who left*10

324

28.2

0

Number of new hires*10

Unit

-

Consolidated

30

Number of employees by country/region

Number of employees who were absent from work
due to mental health problems*10

2017

-

million m3

Consolidated

Number of employees

Number of employees who newly took nursing careleave*10

2016

Male

Average annual amount of expenditure for education/ training*10

Number of cases of lawsuits, penalties, or forfeitures
related to the environment

Employees

Number of employees who newly took childcare
leave*10

Number of users of the shorter working hour
program*10

Electricity

Weight of raw materials used in production

Emissions and disposal of waste and waste
byproducts

Average rate of acquisition of annual paid leave*10

kilo tons-CO2

Fuels
Energy consumption intensity per unit of sales

34

Consolidated

Average number of days of annual paid leave taken*10

2015

Consolidated (Japan only)

Consolidated

Male

-

-

39.1

years old

Consolidated

Female--36.9

years old

Consolidated

Male

-

-

11.5

years

Consolidated

Female

-

-

7.7

years

Consolidated (Japan only)

Male

-

-

2,146

hours/ person

Consolidated (Japan only)

Female

-

-

1,974

hours/ person

Number of prompt reports

Consolidated

8

10

6

cases

Number of recalls

Consolidated

3

4

2

cases

Consolidated

117

163

133

million yen

Consolidated

6

8

8

yen

Community
Expenditure related to social contribution
GovernanceInterim and year-end dividend per share★: We have received independent assurance by KPMG AZSA Sustainability Co., Ltd. regarding the reliability of the data.
*1: For calculating CO2 emissions related to electric power, we use the latest CO2 emission factor of each country that is shown in CO2 emissions from fuel combustion 2017, which was published by the International Energy Agency (IEA).
For calculating CO2 emissions related to fuels, we use the CO2 emission factor of Japan.
In relation to the above, values for FY2016 were corrected.
*2: The emissions are calculated by multiplying the activity amount by the CO2 emission factor published by the Ministry of Economy, Trade and Industry and the Ministry of the Environment.
*3: The Scope 3 Category 1 emissions are calculated based on the volume of purchase of the top three items in terms of purchase volume. Of the items, the aluminum ingots are those purchased by Nippon Light Metal Co., Ltd.
*4: The seawater intake quantity is not included.
*5: Changes in expenditure are calculated using the following formula:
Changes in expenditure = expenditure incurred during a base period (FY2016) – expenditure incurred during the current year (FY2017)*6: - (minus) indicates an increase in expenditure.
*7: Environmental problems that affect external parties (such as the leakage of oil or chemicals)*8: Number of petitions from external parties (such as those regarding smell and noise)*9: Fixed-term (full-time) employees are not included.
*10: Consolidated values began to be reported in FY2017.
*11: Percentage of employees who are still at the company as of April 1 in the year that is three years after they joined the company*12: As of June 1 immediately after the end of each fiscal year. The statutory employment rate is 2.2% (was 2.0% until March 31, 2018).
*13: Fixed-term (full-time) employees are included.
*14: The subject period is calendar year (January to December).
*15: Injuries that resulted in one or more days’ absence from work (excluding commuting injuries)

Corporate Social Responsibility Report 201835