NGK SPARK PLUG CO., LTD.

Sustainability Data Book 2022

Sustainability Data Book 2022

CONTENTSManagement Message about Sustainability ………

2

CSR and Sustainability Charter ……………………

2…………………………

5

Priority Issues (Materiality)

Initiatives ………………………………………………… 70
Development of Technologies, Products,
and Businesses for Contributing to the Resolution ofSocial Issues …………………………………………… 25
Respect for Human Rights

Environment…………………………… 27

External Evaluation of Our ESG Initiatives ………… 71
GRI Content Index ……………………………………… 75
SASB Content Index …………………………………… 80

Global Human Resource Management ……………… 29

Eco Vision …………………………………………………

7

Environmental Management ……………………………

9

Environmental Burdens from Business Activities …… 11
Response to Climate Change ………………………… 12
Information Disclosure Based on
TCFD Recommendations ……………………………… 15
Management of Waste ………………………………… 19
Conservation of Water Resources

Sustainability Data (Non-Financial Information) … 62

Society

Occupational Health and Safety ……………………… 37
Quality …………………………………………………… 42
Proper Procurement …………………………………… 44

Editorial policy

Social Contribution ……………………………………… 46

The Sustainability Data Book is a summary of theCommunication to Stakeholders ……………………… 49

Sustainability pages of our website, published in PDF
format for even easier reading and searching.

Period Covered

GovernanceFiscal 2021 (April 1,2021 to March 31, 2022)…………………… 19

Environmentally-friendly Products …………………… 20

Corporate Governance ………………………………… 51

Management of Chemical Substances ……………… 22

Risk Management ……………………………………… 56

Conservation of Biodiversity …………………………… 24

Information Security …………………………………… 58
Compliance ……………………………………………… 60
Appropriate Tax Payment ……………………………… 61*The report also includes information pertaining to otherfiscal years.

Recording Date
As of February 28, 2023

Scope of Report
Niterra Group companies*The report also includes a non-consolidated information of
Niterra Co., Ltd.

1

IndexEnvironment

Society

GovernanceManagement Message about
Sustainability

Data

CSR and Sustainability Charter
CSR and Sustainability Charter

Our corporate philosophy, and the CSR and Sustainability Charter includes terms such as "offering new value" and "contributing" to

We contribute to develop a sustainable society, thereby improving our corporate value.

the people over the world, expressing our desire to contribute to solving social issues through our businesses, which leads to・We build relations of trust with our stakeholders while making highly transparent decisions and actions.

sustainability. With this in mind, we recognize that our mission and raison d'etre is to create products and services that contribute to・We cocreate and provide new value to solving social issues.

finding solutions to various social issues.

To realize a sustainable society, we will build a promotion system based on our contribution to solving social issues through ourbusinesses and express our endorsement on the international regulations, purposes, and guidelines such as the United Nations

Our corporate philosophy includes slogans like "proposing new value" and "contributing" to people around the world and shows ourGlobal Compact, ISO26000, SDGs, TCFD. We will also proceed with the initiatives to identify Priority Issues (Materiality) regarding

desire to contribute to society. This leads to sustainability, through our contributions to solving social issues through our business.

ESG (Environmental, Social, and Governance) to disseminate the information for our stakeholders in an easy-to-understand way.

In April 2020, we established the CSR and Sustainability Charter in order to present this idea in a ready-to-understand manner andfor broad communication both internally and externally. At the same time, we changed the name of the CSR Policy to the CSR Basic
Policy, which sets forth the Group's action guidelines for CSR.

In these times of great change and uncertainty, the NGK SPARK PLUG GROUP aims to increase our corporate value bycontributing to the realization of a sustainable society while gaining the trust of all stakeholders by enhancing the transparency ofmanagement. We thank you in advance for your continued patronage and support for the NGK SPARK PLUG Group.

Shinichi Odo

Takeshi Kawai

Representative Director Chairman of the Board

President & Chief Operating Officer

Corporate Philosophy

Long-Term Management Plan

2

Corporate Code of Conduct

The Nittoku Way

CSR Basic Policy

361KB

Environment

Index

Society

Governance

CSR and Sustainability Promotion System

United Nations Global Compact Participation

To ensure sustainable growth for our group and society, we have established the CSR and Sustainability Committee to identify

NGK SPARK PLUG CO., LTD. Participated in United Nations Global Compact inpriority issues in each ESG (Environment, Society, and Governance) area and promote actions to resolve these issues.

November 2016.

The CSR and Sustainability Committee is positioned as an advisory committee to the Board of Directors and has two functions: to“United Nations global compact” is a voluntary corporate citizenship in order toreport and make recommendations in response to the Board of Directors’ advising, and to supervise each special committee. In

address various problems such as global warming, environmental problems, gap-

reports and recommendations, external experts will be invited as guest committee members to enhance the knowledge andwidening society that are progressing on a global scale. They are also initiatives thatperspective, and discussions will be held to promote sustainability management with a long-term perspective. For each special

were proposed by Kofi Annan, the Secretary-General of the United Nations in 1999,

committee, whether or not each special committee, which is positioned on the business execution side, is functioning effectively will

and established formally by the U.N. in July 2000.

be closely watched and supervised as needed.

NGK SPARK PLUG CO., LTD. will uphold ten principles consisted of four issues such

The important information from each special committee about the progress of reduction of CO₂ emissions and risk assessments is

as “Human rights, Labour, Environment, Anti-corruption” being advocated by the U.N.

also shared with the CSR and Sustainability Committee. Important decisions made by special committees are reported to the board

global compact as good members of society, and will make every effort to promoteof directors through the Management Meeting which deliberates, decides, and supervises important matters in business execution.

activities in order to contribute to building a sustainable society.

Data

Corporate Governance System

The Ten Principles of the UN Global Compact【Human Rights】
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights.
Principle 2: make sure that they are not complicit in human rights abuses.

【Labour】
Lecture by a guest committee member

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective
bargaining.

CSR and Sustainability Committee

Principle 4: the elimination of all forms of forced and compulsory labour.
Principle 5: the effective abolition of child labour.
Principle 6: the elimination of discrimination in respect of employment and occupation.

CSR and Sustainability Awareness-raising Activities【Environment】
We distribute SDGs badges to our executives to show our commitment towards the realization of a sustainable society, and we work

Principle 7: Businesses should support a precautionary approach to environmental challenges.

to raise awareness of SDGs among our employees and the public.

Principle 8: undertake initiatives to promote greater environmental responsibility.

Additionally, we conduct training by job classification, to ensure that each employee is aware of the connection between their work

Principle 9: encourage the development and diffusion of environmentally friendly technologies.

and society daily so that they are able to take actions that contribute to solving social issues through their work. We also continue to【Anti-Corruption】

send out information through e-mail newsletters and other means.

Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

CSR Training

A Sample of E-mail Magazine

3

IndexEnvironment

Society

Governance

Our Commitments to SDGs

CSR and Sustainability Progress

As a signatory to the United Nations Global Compact, we are committed to doing what we can to contribute towards theachievement of the SDGs (Sustainable Development Goals), the goals set by the United Nations.
Nov. 1996 Adopted "Corporate Philosophy"*What are SDGs?
SDGs consist of the 17 goals and 169 targets that were adopted at the UN Summit in 2015 which aim to solve worldwide problems

Feb. 1998 Adopted "Corporate Code of Conduct"such as poverty, inequality, and climate change by 2030—pledging that “No one will be left behind.”Oct. 2010 Established CSR Committee

Apr. 2011 Adopted “CSR Policy“

May. 2013 Published "CSR Procurement Guidelines"

Nov. 2016 Participated in "United Nations global compact"

Aug. 2017 Published “Integrated Report”

Jul. 2019 Published "Sustainability Data Book"

Apr. 2020 Adopted “CSR and Sustainability Charter“

4

Data

IndexEnvironment

Society

Governance

Priority Issues (Materiality)

Data

Priority Issues
We have identified eight priority issues. The CSR and Sustainability Committee confirms the progress and promotes initiatives.

Basic Philosophy

Item

Contribution to

Major Initiatives

Goals and Outputs

SDGs

We improve corporate value through contributions working towards the realization of a sustainable society.
Environment

To achieve this, after accurately grasping social issues, we believe it is important to define priority issues (materiality) in each area of
ESG (Environmental, Social, and Governance), and set medium- to long-term goals to work towards them.

Progress in FY2021(FY2029)

Responding toReduction of CO2

CO2 Emissions:

8.87％ reduction

Climate Change

emissions

30% Reduction(265,100 tons)[compared to that of
2018]

The Process of Defining Priority Issues

Providing

Dissemination andSales ratio ofEnvironmentally

expansion of

precious metal

Friendly Products

environmentallyplugs: not less thanfriendly products

50%
Sales ratio of wide

40%

37%

range oxygen
sensor: not lessthan 50%Society

Development ofDevelopment of fuelCO2 dissemination

Established aTechnology,

cells

of high-efficiency

production system

Products, anddistributed power

for full-scale mass

Businesses for

supplies with a view

production of SOFC

Contributing to theto use freecell stacks

Resolution of SocialhydrogenIssuesDevelopment of

Alternative

Continued toapplications forpromotion from leadintroduce andlead-freepiezoelectric

propose lead-freepiezoelectricmaterials

piezoelectricmaterials

materials

Development of

Improve businessSet up a showroom

sensing IoT

efficiency throughfor the water quality

business

automation,

control system for

optimization, andland-based shrimp

generalization

farming, andcontinued to
introduce andpropose it.

Carbon Neutrality

Establish andCompleted theas a service

introduction offeasibility

synthetic fuelverifications of CO₂(methane)recovery andproduction systemhydrogenproduction
technology

5Environment

Index

Item

Contribution to

Major Initiatives

SDGs

GovernanceSociety

Goals and Outputs

Progress in FY2021(FY2029)

Global Human

Promotion of

Ratio of women,

Resource

employment offoreign nationals,

Management

women, foreign

and career recruits

nationals, andin managerial

careers

positions: 25%

Examination of a

Improved results ofSatisfaction: 46.6%

New Personnel

employee(response rate:

Systemsatisfaction surveys

87.6%)

Corporate

Increasing the ratio

Ratio of female

45％ （5 out of

Governanceof female anddirectors and11）

foreign nationals to

foreign nationals:*As of June 24,

directors

not less than 30%

2022

Increasing the ratio

Ratio of external

64％（7 out of 11）

of external directors

directors: not less

*As of June 24,

Risk Management

Governance17.0％

than 1/3

2022

Management of

Establishment ofUpdated the risk

serious incidents

risk management

map at the Risk

signs andsystem thatManagement

prevention of theircontributes to

Committee

occurrence

management
decision-making

Compliance

Survey of

Implementation of

Conducted

employees'

compliancecomplianceawareness andquestionnaires andquestionnaire

continuous

disclosure of results(targetting

education

approximately
8,800 people,
response rate was83%)

Information Security

Maintaining andEstablishment of

Obtained TISAX

strengthening

information security

certification forincident responsemanagement

group companies inorganizations andsystemthe United Statesbuilding preventive

and Chinasystems(In Japan, the head
office, and affiliatedplants and groupcompanies havealready acquired
certification in fiscal
2020.)

6

Data

Environment

Index

Society

Governance

Eco VisionData

4 important issues

Eco Vision 2030 issues

Environmental Policy

Responding to Climate Change

The milestone to be achieved in

Our vision for 2040

2030

Explanation
・Reducing CO2 emissions to mitigate climate change is a key

CO2 emissions 30% reduction

Implementing activities toward

compared to fiscal 2018.

realization of a decarbonizedglobal issue. Many countries and companies around the globe

society.

are seeking to build carbon-neutral societies and are committed※Achieving carbon neutrality by

As a globally developing core manufacturing corporation, we aim to promote environmental conservation activities linked with

2050

corporate management maintaining a good balance with corporate growth, based on the participation of all of our employees, into reduce CO2 emissions throughout the supply chain.
・Reducing CO2 emissions is a critical issue for our group as amanufacturing company, and it is our responsibility to accomplish
the goal.

order to contribute to the construction of a sustainable society.

・Setting forth the CO2 emissions reduction targets by 2030 toward
the goal of attaining carbon neutrality by 2050, we will first workon Scopes 1 and 2, which we can directly control. We set targets

Action guidelines

to be consistent with the objective of "holding the temperature
increase to well below 2°C above pre-industrial levels" in the
Paris Agreement. We will make company-wide efforts to take・Through all of our business activities, we make particular efforts to reduce CO2 emissions toward the realization of aproactive actions looking ahead to achieving carbon neutrality by
2050. The CO2 Management Committee led by the Executive

decarbonized society, conserve water resources, manage waste, and develop, offer and expand environmentally friendly

Officer, which people involved from all businesses join, willproducts.

manage the progress. Also, we will promote reduction in Scope・We strive to conserve the ecosystem through the control of chemical substances that place a burden on the environment.

3, including the supply chain.

・We strive to raise environmental awareness among our employees to ensure that they all positively participate in activities.

Expanding Environmentally・We observe the laws, ordinances and agreements concerning environmental conservation.

Expand Nittoku Green Products

Friendly Products

・We aim to substantiate information disclosure to stakeholders and communication activities, and also conduct activities for

All products contribute to the・Interest in a sustainable society is growing worldwide. Our group

improvement of the global

is responsible for contributing ourselves to making sustainable

environment and contribute tosociety come true through our business and products.

making sustainable society come ・In approaching environmental issues, it is very important to becoexistence with the regional community.

true

・In order to achieve these targets, we will strive to make ongoing improvements to our environmental management system.

aware of the environmental impacts of the entire product life
cycle, from raw material extraction to final disposal where theproducts complete their missions.
・In fiscal 2021, our group established a certification system forenvironmentally friendly products to assess the environmental
impact in the supply chain, including in-house production

Eco Vision 2030

processes. We annually announce the products that satisfy thecertification standards as Nittoku Green Products. Through these
activities, we accelerate the creation of products that contributeto solve the environmental issues.

Global environmental conservation is fundamental to a sustainable society, and is a key business challenge to be addressed headConserving Water Resources

on for all stakeholders.

・Our Group has manufacturing bases around the world, and theWater consumption intensity:

Implementing sustainable

Keep below FY2018 levelbusiness operations in responsewater demand has been increasing in each base. Global waterto global water risks

demand trends are an important environmental issue that should

On the premise of aiming for carbon neutrality in 2050, we have established "Eco Vision 2030," which shows the vision (or goal) of

be monitored closely.

what we want to be by 2030 and the vision of what we will pursue until 2040.

・Water resources are unevenly distributed in the world, and someof the Group's manufacturing bases may face the drought risk in

For Eco Vision 2030, the impacts that our businesses and products would have on society and our company were analyzed, and 13

the future due to ongoing climate change. Therefore, we

issues that would have a large impact were selected. Among them, the four issues that were considered to have a greater impact -periodically conduct water risk assessments, to determine thecurrent status and estimate the amount of resources required.

"Responding to Climate Change", "Expanding Environmentally Friendly Products", "Conserving Water Resources", and "Waste

In addition, our group is committed to protecting the environment
into the future by promoting the efficient use of water as it is theManagement" -were positioned as the four important issues, and numerical goals were set for them. Through the practice of Ecoessential resource.

Vision 2030, our group will work together to contribute to the realization of global carbon neutrality and zero emissions.

Waste Management

Achieve over 95% effective

Contribute to a global recycle-

・Our group uses a variety of raw materials, including ceramics andutilization rateoriented society by promoting

rare metals. Effective use of resources (reduce waste, reuse andzero emission
Reduce at least 1% of waste
intensity compared to FY2018

recycle resources) is essential to protect the global environment.
・It is important to reduce the amount of resources input by
improving the manufacturing process, and to reduce the landfill of
wastes by promoting recycling, for stable resource management
into the future.

Promote 3R (reduce, reuse,recycle) activities

・At all sites, we will keep promoting group-wide 3R activities forfurther enhancing effective use of resources and reduction ofwastes.

7

Environment

Index

Society

Governance

Other issues

Eco Vision 2030 issues

The milestone to be achieved in
2030

Our vision for 2040

Data

・Social concern about environmentally hazardous substances isManagement of Chemical

Appropriately manage chemical

Contribute to the conservation of

Substances

substances to reduce

biodiversity through theincreasing as their effects on the human body and on theenvironmental impact.

continuous management ofenvironment become more obvious. While various regulations on

appropriate chemicalchemical substances have been getting stricter over the world,

substances.

our Group has been reducing the usage of chemical substances

Explanation

over time.
・Protecting the global environment is the basis for maintaining a・Appropriate management of chemical substances is one of the<Enhancement of EMS>

Address global environmental

Continued efforts to address

Integration with Management

issues as a business strategy

global environmental issues as asustainable society. Environmental issues are both managementsocial responsibilities of manufacturing companies that use

business strategy

risks and business opportunities for us, and it is important tochemical substances as raw materials, and is essential for the

integrate environmental activities with management as acontinuation of our business.
・Our Group works to thoroughly manage chemical substances inbusiness strategy.

Executive management takes
responsibility for promoting Eco
Vision 2030 and achieving
environmental KPIs.

・We have established the Eco Vision 2030, which is aligned withaccordance with relevant laws and regulations, and to respond to

our Long-term Management Plan, to address environmental

customer requirements. We are committed to reducing the use

issues as part of our business strategy.

and emission of environmentally hazardous substances andWe also enhance management's engagement in EMSs bypromoting substitute materials through R&D and processintroducing incentives for executives based on achievement of

improvement in order to minimize the impacts on humans andCO2 reduction targets. All executives and employees work

the environment.

together to promote the "Eco Vision 2030" activities.

Promoting Green Procurement

Achieve 100% introduction of

Implementing environmentally・Our Group is striving to reduce the environmental impacts of ourgreen procurement systemfriendly procurement activity to

products throughout their lifecycle, and is promoting the products<Enhancement of EMS>

Enhance systems for overseas

The entire group is able to share

・Our Group has been expanding our business globally and has

Globalization of EMS

affiliates to share environmental

environmental information, and a

had more influence on society than ever. Therefore, ourmaking sustainable society comeinformation and monitor andmonitoring and supervision

responsibilities as expected by society is also increasing.

true.

supervise their activities.

system has been established for
all Group companies.

Stakeholders expect us to address ESG issues on a global basis.

suppliers by distributing the Green Procurement Guidelines, that

・Eco Vision 2030 is an ambitious initiative that cannot be achieved

describe our approaches to reducing environmental impact

without efforts of all our employees. The goals in Eco Vision 2030

including the management of chemical substances.

are not quite easy to achieve. But we are confident of theAs our supply chain over the world is assumed to be getting moreachievement with all the efforts concentrated of each employee

diversified, cooperation with our suppliers will be even moreon our worldwide common EMS.

essential, in order to reduce CO2 emissions throughout the<Enhancement of EMS>Analysis Analyze climate change risks

Sustainable business growth by・For sustainable business expansion in a carbon-neutral society, it

of Climate-Related Risks andand opportunities andanalyzing the impact of climate

is essential to analyze the impact of climate change on our

Opportunities

incorporate them into ourchange on our business andbusiness, determine our responses, and incorporate them intobusiness strategies.

incorporate them into ourbusiness strategies.

supply chain and meet the stricter regulations on chemical
substances.
・We contribute to making sustainable society come true by
establishing a global procurement system and further promoting

our business strategies.

a green procurement system.

・We have endorsed the TCFD’s recommendations, and disclosethe climate-related risks and opportunities and their impacts in

Expanding Green Logistics

accordance with the framework.
Achieve zero violations of

We have become a sociallyThrough environmental

environmental laws andtrusted company by continuing tobusiness continuity, it would not only prevent environmental

complianceregulations and zeroachieve zero violations ofaccidents and maintain a safe and secure work environment, but(Compliance with environmental

environmental accidents.

environmental laws andalso ensure the trust of stakeholders, including local residents

laws and eradication ofregulations and zeroand society.

environmental accidents)

environmental accidents.

Reduce CO2 emissions by

Our green logistics systempromoting green logistics anddevelop globally.

environmental impact of the entire supply chain.
Japan, but establishing global green logistics system including
overseas sites would be an upcoming challenge.
We aim to develop our green logistics system globally and toachieve our target of reducing CO2 emissions in logistics byEnvironmental Management System (ISO 14001) and are

expanding our case studies (efficient transportation route

working on continuous improvement via the PDCA cycle. We

construction, etc.) to overseas logistics networks.

carry out our business while ensuring that all employees
understand and follow environmental laws and regulations.
All employees takeAll employees have a high level・We focus on businesses in the environment and energy fields as

Greater Environmental

environmental educationof environmental awareness andstated in our Long-term Management Plan. For our business

Awareness

programs and actively engage incontribute to making sustainablesuccess, it is essential to improve the environmental

environmental conservationsociety come true.

consciousness of the entire Group, and to develop specialists

our concerns related to the business expansion in the future.

・Our group has been improving the green logistics network in

・We have established internal regulations based on the<Enhancement of EMS>

・Increased CO2 emissions through transportation process is one of
Reducing CO2 emissions in logistics is an issue in reducing the

optimizing logistics efficiency.

・Ensuring thorough environmental compliance is a prerequisite for<Enhancement of EMS>

activities.

with lower environmental impacts.
・We have been promoting a green procurement system with our・Now our Group gives big influences on society as our business

Enhancing Our Disclosure of

Responding to stakeholder

Responding to stakeholder

Environmental Information

requests and practicing

requests and practicing

expands. Stakeholders are showing growing interests in ourcommunication that leads tocommunication that leads toGroup and business. Opportunities to communicate with

dialogue with stakeholders.

dialogue with stakeholders.

institutional investors are increasing. It is important for us to havestakeholders appropriately understand our business and support
us for long term in the future.

who deeply understand the environmental risks that our businessWe will make information disclosure better both in quality and infaces, such as responses to climate change, and connect themquantity. We also enhance our transparency and accountability into business opportunities.

response to great concerns to stakeholders, and promote

・We aim to ensure all employees deeply understand the purpose

communication opportunities with them.

and importance of the Eco Vision 2030, by providing the learning
programs on Intranet. We are committed to fostering corporate
culture in which each and every one of us naturally acts in anenvironmentally friendly manner in our daily work.

8

IndexEnvironment

Society

Governance

Environmental Management

Data

ISO14001 Certified Locations
Certification covering multiple units (Scope of applicability)
Country

Promotion SystemJapan
Our group has a matrix-type structure including the internal company and respective regions, promoting environmental activities

Name of factories and companies

Certification obtained individually
Country

NGK SPARK PLUG CO.,

Headquarters

LTD.

and Nagoya

Sendai West

Plant

Plant

while having individual roles clarified. Each internal company is expected to manage its own targets on items relevant to business

Komaki Plant

activities. Meanwhile, we take the initiatives to such activities as compliance of regulations, raising environmental awareness, andcommunication with local society mainly on the regional basis in accordance with action plans. Various working groups are set up as

Japan

U.S.A.

Satsuma Plant

which President, directors, company presidents, regional environmental administrators, and heads of the working group are present

Inuyamafor continuous improvement.

Logistics Center
SparkTec WKS CO., LTD.

MexicoBrazilHead Office

NGK SPARK PLUGS (FRANCE) S.A.S.

Nagoya Plant

U.K.

NGK SPARK PLUGS (UK) LTD.

Satsuma Plant

Germany

NGK SPARK PLUG EUROPE GmbH

SatsumaThailand

SIAM NGK SPARK PLUG CO., LTD.

Plant
Tono Plant
Okusa Plant
NICHIWA KIKI CO., LTD.

NGK SPARK PLUGS (THAILAND) CO., LTD.
NGK SPARK PLUGS (ASIA) CO., LTD.
SouthNTK TECHNICAL CERAMICS KOREA CO.,

Korea

LTD.

Malaysia

NGK SPARK PLUGS MALAYSIA BERHADChina

NGK SPARK PLUG〔SHANGHAI〕CO., LTD.
CHANGSHU NGK SPARK PLUG CO., LTD.

KAMIOKA CERAMIC CO., LTD.
Komaki Plant
Iijima Plant
Kani Plant
Komaki Plant
Ise Branch
room

The Establishment Status of our Environmental Management System

Nakatsugawa
Plant

We received ISO 14001 integrated certification for NGK SPARK PLUG CO., LTD. and 12 group companies (As of the end of
FY2021) in Japan. Other domestic and overseas group companies have already been certified for environmental management

NITTOKU ALPHA SERVICE

systems including ISO14001 certification, individually, resulting in 17 overseas group companies which have received theCO., LTD.

certification in the end of the fiscal 2021. The employee acquisition rate is 96%.

9

CERAMICA E VELAS DE IGNICAO NGK DO

FranceHeadquartersLTD.

BUJIAS NGK DE MEXICO S.A. DE C.V.

Plant

Nino

CERAMIC SENSOR CO.,WV Plant

BRASIL LTDA.

Electrode Plant

NTK CERAMIC CO., LTD.

NGK SPARK PLUGS

Sendai Plant,

Wells Vehicle Electronics,L.P

Ise Plant

The activities will be confirmed with respect to the progress toward the target, and task in the Central Environmental Committee at

NTK CERATEC CO., LTD.

(U.S.A.), INC.

the cross-functional team across the internal company for promoting activities.

Environmental Activity Promotion Organization

Name of factories and companies

Head Office
Komaki Office

Indonesia

PT NGK BUSI INDONESIAIndia

NGK SPARK PLUGS (INDIA) PVT. LTD.

SouthNGK SPARK PLUGS SA (PTY) LTD.

AfricaEnvironment

Index

NANSEI CERAMIC CO.,LTD.

Society

Governance

Data

Compliance with Environmental Laws and Regulations

Komaki Plant
Ise Plant

To ensure compliance with environmental laws and regulations as well as agreements with local municipalities, we set stringent

NTK CERATEC CO., LTD.

Komaki Plant

MORIMURA SOFC

Komaki Plant

In FY 2021, there were 3 violations and 2 complaints. Against a violation or complaint that occurred, we take measures immediately,

Ise Plant

including those to prevent recurrence.

TECHNOLOGY CO., LTD.

voluntary standards to prevent violations and complaints.

Takenami Plant

Handling Violations and Complaints in Fiscal 2021

NTK CUTTING TOOLS CO., LTD.
NTK Medical CO., LTD.

Company
Violation

Sustainability Data（Non-Financial Information）

ISO14001 certificate

2.9MB

Complaint

Situation

Countermeasures

NGK SPARK PLUG

At the water treatment facility in the

The cause was a pump failure, so weCO., LTD.

Komaki Plant, pottery sludge flowed out.

reviewed the piping to prevent the failure.

NTK CERATEC CO.,At the Sendai West Plant, waste liquid

The cause was forgetting to open the valveLTD.

flowed out of the premises from the storm

for collecting waste liquid, so we added an

drain on the premises.

automatic stop function when the drainage

Initiatives for Environmental Riskpump is full and installed an outflow
prevention wall around the tank.

Inherent in business activities are various risks including environmental incidents and pollution. NGK SPARK PLUG Group identifies
Complaint

these risks and endeavors to reduce and/or prevent them.

NGK SPARK PLUG

At the Komaki Plant, we received a noise

The cause was a failure of the safety

CO., LTD.

complaint when exhausting the boiler.

valve, so we replaced the safety valve andinstalled a silencer.

PCB Control

Violation

PCB waste stored at our Nagoya Plant and Komaki Plant were disposed of in 2018. Only CERAMIC SENSOR CO., LTD.

SIAM NGK SPARK

The law stipulates that an environmental

We have assigned an environmental

PLUG CO., LTD.

manager should be assigned to the

manager within the company.

company for water, air pollution, and waste

Nakatsugawa Plant has PCB wastes and it is under strict control for proper disposal.

management, but it was not assigned.

Last year, the government once again provided information on the find of high-concentration PCB waste. Based on this, we are

Violation

investigating again that there are no target substances in our company and group companies.

NGK SPARK PLUG

At the Egoshi Kita Plant, West Parking

We reported to the administrative

CO., LTD.

(former Technical Center), and Egoshi

authorities based on the Soil

Minami Plant of the former head office, weContamination Countermeasures Law.

conducted a soil and groundwater survey

Drills for Emergency Situations

and confirmed that the standard values
specified by the Soil Contamination

We hold regular drills for emergency situations to prepare for unforeseen accidents, etc. EachCountermeasures Law were exceeded.

department identifies potential environmental accidents to prevent associated adverse
environmental impacts.
Training using wastewaterleakage drill（SparkTec WKSCO., LTD. Nino Headquarters
Plant）

10

Environment

Index

Society

Governance

Environmental Education

Data

Environmental Burdens from
Business Activities

Environmental education is conducted to deepen employees’ understanding of environmental
issues and raise their environmental awareness.
In addition to rank-specific education, we hold four courses on “Environmental basics”,“Environmental management system”, “Calculation methods for substances with an environmental

Environmental Burdens from Business Activities

burden”, and “Environmental laws and regulations (for facilities).
We went to the departments related to these four laws and regulations and provide on-site

Environmental
education（SparkTec WKS CO.,LTD. Satsuma Plant）

environmental law training focused on the necessary compliance.

Knowing what impacts our business activities have on the environment is the first step in carrying out environmental preservation
activities. We will work to reduce our environmental burden by grasping the amounts of our inputs (such as the raw materials andFrom 2021, in consideration of the infection situation of COVID-19, we have been holding online

energy used by our Group) and the amounts of our outputs (such as the products shipped, CO₂ emissions and the wastes emitted

education that can be taken at home.

outside the Group as the result of our business activities).

In order to make Ecovision 2030 known to employees, we have launched an Ecovision site on the

The material balance showing INPUT and OUTPUT is described below.

intranet, and posted the background of setting Ecovision 2030, the results obtained by achieving
the Ecovision goals, and requests to employees. We also regularly send out activity topics to ouremployees.

Support for Suppliers
We offer our suppliers environmental education and support for establishing environmental management systems to acquire thirdparty certification.

EMS Third-Party Certification Support Conducted
Topic

No. of Companies Attending (total sum)

ISO14001

6

Eco-Action 21

37

11

IndexEnvironment*1

The covered scope of each amount reported in INPUT and OUTPUT is indicated with ●.

*2

Group companies in Japan: (subject to integrated certification) SparkTec WKS CO., LTD., NICHIWA KIKI CO., LTD.,

Society

Governance

Data

Response to Climate Change

KAMIOKA CERAMIC CO., LTD., NTK CERAMIC CO., LTD., CERAMIC SENSOR CO., LTD., NITTOKU ALFA SERVICE CO.,LTD., NANSEI CERAMIC CO., LTD., NTK CERATEC CO., LTD. （Komaki Plant）, MORIMURA SOFC TECHNOLOGY Co.,
Ltd., NTK CUTTING TOOLS CO., LTD., NTK Medical CO., LTD. (not subject to integrated certification) NITTOKU SMILE CO.,LTD., NITTOKU DENSHI CO., LTD., NTK CERATEC CO., LTD.（Sendai Plant）, CECYLLS Co., Ltd., our domestic sales
offices.
*3Group companies overseas: (manufacturing & sales organization) NGK SPARK PLUG (SHANGHAI) CO., LTD., CHANGSHUNGK SPARK PLUG CO., LTD., NTK TECHNICAL CERAMICS KOREA CO., LTD., NGK SPARK PLUGS (THAILAND) CO.,LTD., SIAM NGK SPARK PLUG CO., LTD., NGK SPARK PLUGS (ASIA) CO., LTD., NGK SPARK PLUGS MALAYSIA
BERHAD, PT NGK BUSI INDONESIA, NGK SPARK PLUGS (INDIA) PVT. LTD., NGK SPARK PLUGS (U.S.A.), INC., Wells
Vehicle Electronics, L.P., CERAMICA E VELAS DE IGNICAO NGK DO BRASIL LTDA., NGK SPARK PLUGS (FRANCE)S.A.S., NGK SPARK PLUGS SA (PTY) LTD; (sales organization) TAIWAN NGK SPARK PLUG CO., LTD., NGK SPARKPLUGS (VIETNAM) CO., LTD., NGK SPARK PLUGS (PHILIPPINES), INC., NGK SPARK PLUG (AUSTRALIA) PTY. LTD.,NTK TECHNOLOGIES, INC., NGK SPARK PLUGS CANADA LIMITED, BUJIAS NGK DE MEXICO S.A. DE C.V., NGKSPARK PLUG EUROPE GmbH, NGK SPARK PLUGS (UK) LTD., LIMITED LIABILITY COMPANY NGK SPARK PLUGS(EURASIA), NGK SPARK PLUG MIDDLE EAST FZE.

※

Company names as of the end of FY2021

We have received a third-party verification report below from the Japan Quality Assurance Organization (JQA) regarding the
calculation of energy consumption and the associated greenhouse gas emissions, and the amount of water usage andemissions/waste generation(Effective use and non-effective use), and greenhouse gas emissions from domestic inter-plant logistics(fuel consumption method) in FY2020.
Social and Environmental Information Verification Report

854KB

In the Eco Vision 2030 announced in April 2021, the NGK SPARK PLUG Group declared its intention to achieve carbon neutrality by
2050. Prior to this declaration, we announced, in 2020, our CO2 emissions reduction target “30% reduction by FY 2030 compared tothat of FY 2018.” Our declaration of carbon neutrality encourages us to redouble our efforts.

Our group’s efforts to achieve carbon neutrality
Target for Scopes 1 and 2
Item
Scopes 1 and 2※

12Target・30% reduction by FY 2030 (compared to that of FY 2018)

The target has been classified by the Science Based Targets initiative (SBTi) as SBT WB2℃ (well below 2℃).

IndexEnvironment

Society

Governance

Data

Initiatives aimed at realizing a carbon recycle-oriented society (Carbon Neutral as a service)

Efforts at offices

In order to contribute to the realization of a carbon-neutral society, we are developing methanation-related technologies (hydrogen

In the new office building at the Komaki plant, “N-FOREST,” which started operations in September 2021, a solar power generation

production technology that applies ceramic solid electrolytes and CO2 recovery technology that applies oxygen concentrator

unit and a power generation system using a solid oxide fuel cell (SOFC) have been installed. On top of that, we save energy bytechnology).

replacing old lights with LED lighting, turning off lights and computers when taking a break, recommending observance of the Cool
Biz dress code (e.g., for men, wearing short sleeve dress shirts and chinos, without a tie) in summer and the Warm Biz dress code
(encouraging people to wear warm clothes) in winter, and controlling temperature, humidity, and ventilation as appropriate.

Efforts to raise internal awareness (internal carbon pricing, internal carbon taxation, and internal
environmental fund)To reduce emissions in Scopes 1 and 2 with the aim of achieving carbon neutrality, we take the following awareness-raisingmeasures: internal carbon pricing, internal carbon taxation, and an internal environmental fund.
For internal carbon pricing, our group has decided to collect 10,000 yen per ton of CO2. Internal carbon taxation is a system underwhich fees are collected from departments, including internal business companies and group companies, depending on the amountof their CO2 emissions. This system is expected to further raise awareness of and accelerate CO2 emissions reduction.
The internal environmental fund is a system to appropriate the fees collected through internal carbon taxation for capital investment
as a grant to reduce CO2 emissions. For example, in FY 2021, we provided a grant for a solar power generation unit to NGK Spark
Plugs (India) Private Limited.

Development of Technologies, Products, and Businesses for Contributing to the Resolution of Social Issues

Efforts at production sites
For the installation of production equipment, we create a checklist to ensure energy-efficient design. We take measures to reduce
standby power consumption during holidays and at night. Manufacturing conditions are reviewed on an as-needed basis so as not touse excessive energy for production. In addition, to prevent air leaks and other energy loss due to aging equipment, we carry out
periodic inspections and maintenance in a planned manner.
The amount of CO2 emissions is visualized on an internal dashboard on a business company by business company basis. Eachbusiness base works to make improvements on a daily basis to increase energy efficiency in the production process to the extent
possible. By applying successful cases of improvement to other business bases, our group makes a concerted effort to promoteenergy-saving activities.

13IndexEnvironment

Society

Governance

Data

Efforts to introduce renewable energy

Efforts to achieve carbon neutrality in the supply chain

We enhance the use of renewable energy, including solar energy, hydropower, andTarget setting for Scope 3

geothermal energy.
Ceramica e Velas de Ignicao NGK do Brasil Ltda. and NGK Spark Plugs (India)

Item

TargetPrivate Limited are equipped with solar power generation units with a maximum power
Scope 3:Category 1 “Purchased goods and services”

generation capacity of 793 kW and 514 kW, respectively.

Category 4 “Upstream transportation and distribution” (inThe Komaki plant has a solar power generation unit with a maximum power generation

2018)

part)

capacity of 120 kW and a small hydro generation unit. At the Okusa plant of Sparktec
WKS Co., Ltd., a geothermal heat pump system is installed, and the Nagoya plant of・30% reduction by FY 2030 (compared to that of FY

Category 11 “Use of sold products”

Solar Power Generation Units(NGK SPARK PLUGS (INDIA) PVT. LTD.)the company is equipped with a solar power generation unit and a solar water
heater.Our group’s total renewable electricity output in FY 2021 was 2.02 million kWh,※The target has been classified by the Science Based Targets initiative (SBTi) as SBT WB2℃ (well below 2℃).

which is equivalent to a reduction of 358 tons of CO2.
Scope 3 emissions are indirect greenhouse gas emissions excluding those in Scopes 1 and 2 (emissions from other companies
associated with our business operations), divided into 15 categories.

Efforts to create energy

Our emissions in Category 1 “Purchased goods and services,” Category 4 “Upstream transportation and distribution,” and Category
11 “Use of sold products” make up 97.6％ of our total Scope 3 emissions. Therefore, we work on reducing CO2 emissions by setting

The Komaki plant already has a hybrid power system using a fuel cell with a rated

a target to be achieved by FY 2030 in terms of these three categories.

power output of 250 kW and a compact fuel cell system with a rated power output of

For Category 1 emissions, through the CSR and Sustainability Procurement Guidelines, we ask our business partners to set a target

20 kW. We will continue to take on the challenge of reducing CO2 emissions throughfor reducing CO2 emissions and work toward achieving the target. We also provide our business partners with support when

the creation of clean energy by studying the possibility of installing various energy

needed.

devices, such as pure hydrogen fuel cell systems and storage batteries.

For Category 4 emissions, as a specified consigner stipulated in the Act on the Rational Use of Energy, we work to reduce CO2
emissions associated with transportation by reducing shipping distances through the restructuring/consolidation of plants and thereconsideration of waste-disposal service vendors.
For Category 11 emissions, which account for the largest portion of total Scope 3 emissions, we work on, for example, designing

Pressurized hybrid power systemproducts to improve their energy efficiency while being used.

Efforts to introduce CO2-free electricity
SparkTec WKS Co., Ltd. Satsuma Plant and Satsuma Electrode Plant have adopted CO2-free electricity. This initiative is expected
to reduce CO2 emissions by approximately 20,000 tons at the head office and 20,000 tons at the Satsuma Factory annually.
We will continue to reduce power consumption and systematically introduce CO2-free power.

Sustainability Data（Non-Financial Information）

14

IndexEnvironment

Society

Governance

Promoting disclosure of information about climate-related risks and opportunities

Data

Information Disclosure Based on
TCFD Recommendations

In July 2020, the NGK SPARK PLUG Group announced its support for the Task Forceon Climate-related Financial Disclosures (TCFD) recommendations.
We will examine the impact of climate change on our Group’s business, strategies,
and finance within the company-wide risk management framework based on TCFD

In July 2020, our group endorsed the recommendations made by the Task Force on Climate-related Financial Disclosures (TCFD).

Recommendations, and these topics will be discussed at the Risk Management

Based on the TCFD recommendations, we disclose important information related to climate change as outlined below.

Committee and the CSR and Sustainability Committee attended by the entire board of
directors. We will also promote voluntary and proactive disclosure of information inaccordance with the recommendations.

Governance

Information Disclosure Based on TCFD Recommendations

Our group is aware that climate change and other environmental issues are serious business issues.
With regard to our management direction related to climate change, the CSR and Sustainability Committee* chaired by an outside
director, which functions as an advisory body to the board of directors, forms an opinion in consideration of climate-related risks andParticipation in business organizations and initiatives

opportunities and reports it to the board of directors (four times a year). A final decision is made by the board of directors.
Meanwhile, the progress of response to climate change and other priority issues (materiality) is reported to the CSR and

To enhance our efforts to mitigate climate change, our group participates in the following organizations and initiatives:

Sustainability Committee by the sustainability department, and reviewed and monitored at the Committee. For detailed activities,

・Task Force on Climate-Related Financial Disclosures (TCFD)
・Science Based Targets initiative (SBTi)such as reduction of CO₂ emissions, the Environmental Committee checks progress towards the targets and confirms issues to be・Japan Climate Initiative (JCI)

addressed in order to make continuous improvement (twice a year). Furthermore, risks associated with climate change are

・GX League (established by the Ministry of Economy, Trade and Industry)assessed in light of company-wide risk management at the Risk Management Committee (twice a year).
The CSR and Sustainability Committee supervises the Environmental Committee, the Risk Management Committee, and other

Initiatives

special committees. The information about the progress of reduction of CO₂ emissions and risk assessments is also shared with the
CSR and Sustainability Committee. Important decisions made by special committees are reported to the board of directors throughthe Management Meeting which deliberates, decides, and supervises important matters in business execution.
※

We shifted to a company with an audit and supervisory committee in June 2022, and positioned the CSR and Sustainability
Committee as an advisory body to the board of directors.
Corporate Governance System

Risk Management Promotion System

CSR and Sustainability Promotion System

Environmental Management Promotion System

Examples of what was discussed and determined in terms of climate change・Approval of the priority issue (materiality): “CO2 Emissions: 30% Reduction [compared to that of 2018] (FY2030)”(CSR and
Sustainability Committee in March 2020)・Endorsement of the TCFD recommendations (Management Meeting in July 2020)・Approval of “Eco Vision 2030”(Environmental Committee in March 2021)
・Approval of “Aiming for carbon neutrality in 2050”(CSR and Sustainability Committee in March 2021)

15

Environment

Index

Society

Governance

Strategy (Risks & Opportunities)

Data

Risk item

Business impact (risk)

Assessment(impact)

MarketClimate-related risks

Shift in customer

・After the 2030s, the number of people

preferences

who choose ZEVs even as used cars will

Timing of the
impactLargeLong termincrease, resulting in a decline in demand
for spark plug replacement and eventually aWith regard to climate-related risks, the sustainability department made a proposal, and discussed and examined the following risks

decrease in sales.

with the officer in charge of the sustainability department and other related departments according to the TCFD risk categories: risks

・Products that emit less CO2 in their life

related to the transition to a lower-carbon economy, which may emanate mainly in the course of a 2℃ scenario; and risks related tocycle will be chosen, resulting in a decreasein the sales of conventional products.

the physical impacts of climate change, which may emanate under a 4℃ scenario without achieving global targets for reducing CO₂
Reputation

emissions.

Shift in investor

・Investors’ opinions will turn against

Small toMedium topreferencesinternal combustion engines, resulting inmediumlong term< Main scenarios and projections used in the study >divestments.

2℃ scenario: IPCC RCP2.6, IEA ETP 2DS, etc.

Shifts in job-

・Job seekers’ opinions will turn against

Small toShort to4℃ scenario: IPCC RCP8.5, IHS Markit Automotive "Mobility and Energy Future" service data, etc.

seekers’internal combustion engines. Accordingly,

mediummedium term

preferences

job seekers will not choose us as their place

Increased・Typhoons and other extreme weather

Small toShort to long

mediumterm

・Rising sea levels will increase the risk of

Small toLong term

flooding and storm surges. Plants andmediumThe three terms used below, “short term,” “medium term” and “long term,” have the following meanings:

to work.

Short term: until around 2025 in line with the target year of our medium-term management plan

Risks related to

AcuteMedium term: until around 2030 in line with the target year of our long-term management plan

the physicalseverity ofevents will cause damage to plants andLong term: until around 2040 in line with the vison of our long-term management plan

impacts ofextreme weather

other facilities, resulting in shutdown or a

climate change

eventsdecrease in production. Furthermore,
additional costs will be incurred to restore

Risk item

Risks related to

Policy andthe transition to alegal

Business impact (risk)

Carbon tax

・If a carbon tax is introduced, taxes levied

Assessment

Timing of the(impact)

impactLarge

on fuel will increase procurement costs,

lower-carbon

resulting in a rise in the costs of energy andeconomyraw materials.
Carbon border・If a carbon border tax is introduced, taxes

tax

will be levied on products to be exported,

equipment. Non-life insurance premiums will
also increase.

Short to long

Chronic

term

transport infrastructure located in coastal
areas will be damaged and supply chains
Large

Short to long

will be broken, resulting in the extra costs oftermaddressing these problems.

resulting in the reduction in the cost

Changes in・Plants in areas facing severe water

Small toprecipitation

shortage will be forced to shut or slow down

mediumShort to long

patterns andoperations due to limitations on watertermvariability inusage, resulting in the cost of shifting

weather patterns

production to other plants, increased

competitiveness of the products.
Regulations on

・The achievement of GHG reduction

carbon emissions

targets will be required, resulting in

Sea level riseLargeincreases in the costs of, for example,
making capital investments and purchasingtransportation costs and the like.

electricity generated from renewable energy
sources.
Sale of gasoline-

・In countries that ban the sale of gasoline-

powered vehicles

powered vehicles, OEM demand will

Large

Rising mean

・Employees who work in extreme heat will

Small totemperatures

frequently get heat stroke. To reduce theirmediumMedium toincreased physical burden, the cost oflong term

dealing with extreme heat and labor costs

disappear, resulting in a decrease in sales.
Technology

Long termLong term

will increase.

Proliferation of・The introduction of new energy-saving

Medium to

Short to longenergy-saving

and renewable-energy technologies will

large

term

and renewable-

increase the cost of, for example, making

under the present circumstances. In consideration of expected damage severity and frequency, it has been found that severeenergycapital investments.

damage is unlikely to occur.

For our key business bases, we carried out a risk potential assessment in terms of flooding, drought, storm surges and the like

technologies

We will continue to keep track of physical risks by, for example, making an assessment with consideration given to changes in future

Development of・Expenditures on the research andnew technologies

development of new technologies will

Large

Short to longrisks, and take measures when necessary.

term

increase.

16

Environment

Index

Society

Governance

Climate-related opportunities

Examined

Productbusiness

Responses to future business risks and

Data

Financial impact

opportunities

our long-term
management plan

With regard to climate-related opportunities, we examined, according to the TCFD categories, opportunities for management reform
to be accomplished through efforts to mitigate and adapt to climate change.

AspectResource efficiency

Automotive

Spark plugs, glow

Under the 2℃ scenario, sales of internal

Impact on part of the

450 billion yen

related businessplugs, sensors

combustion engine parts are expectedsales revenue of(FY2029)

to decline in the future due to stricter

387.8 billion yen

regulations on vehicles with internal(FY2021)

Major opportunity

combustion engines.

・The increasing adoption of new energy-saving and renewable-energy technologies will reduce energy

On the other hand, opportunities will

costs.
Energy source

arise in the electric vehicle market and・The increased demand for hydrogen as a fuel exempt from carbon tax will provide new opportunities in theother new markets.

hydrogen energy market.
Products and services

Under a 4℃ scenario, further energy

・To conform to fuel efficiency regulations, demand for high value-added products will increase.

conservation and toxic-gas-emission

・The hydrogen energy market is expected to grow due to mandatory reduction of GHG emissions.

control will be required in terms of

Increased demand for hydrogen technologies and SOFCs will provide business opportunities.

internal combustion engines. Therefore,

・In disaster preparedness, local consumption of locally-produced energy (distributed power generation) will

we will take measures to improve theperformance of internal combustion

receive attention, resulting in increased demand for SOFCs.
Markets

engines.

・The development of new climate-related technologies that meet social needs will provide business

Fuel cell

opportunities.
Resilience

Sales revenue target inFuel cells

business

・In disaster preparedness, the continuous reinforcement of the BCM and BCP of our group, including our
supply chain, will help enhance our resilience.

Under either a 2℃ or 4℃ scenario,

Impact on part of the

300 billion yen

demand for non-fossil energy sources issales revenue of(FY2029)

expected to grow. Therefore, we will106.0 billion yen

continue to enhance our measures(FY2021)taken in the relevant markets.
Under a 2℃ scenario, the proliferationof hydrogen infrastructure is expected.

Business risks, opportunities and responses under the climate-related scenarios

Therefore, the market may grow at anincreasing rate.

To further clarify climate-related risks and opportunities, we
examined business environments and responses by businesstype under both 2℃ and 4℃ scenarios.

Other

SPE, packages,

Under either a 2℃ or 4℃ scenario, thebusinesses

oxygen concentrators,

impact on risks and opportunities is

cutting tools, bearing

small.

balls, etc.

As a result of our examination, no existential impact fromphysical risks has been identified.
With regard to our business related to internal combustion
engines, whose sales revenue makes up 80% of the total at・For the automotive related business, under 2℃ scenario, sales are expected to decline in the future due to stricter

present, we are facing a major change. On the other hand,regulations. Therefore, a business portfolio conversion is required.

geared toward the realization of a decarbonized society,・For other business types, under either a 2℃ or 4℃ scenario, we will conduct business flexibly and strategically whilehydrogen-related and other new needs and markets are

keeping a close watch on market trends. Thus, we have high resilience in terms of both medium- and long-term

expected to arise. Therefore, in the 2030 Long-Termperspectives.

Management Plan NITTOKU BX, we take up “Environment &Energy” as one of the business fields to focus on. Toward 2040,
we will push forward with a business portfolio conversion (40%Long-term Management Plan

ICE related business, 60% non-ICE related business).

17

IndexEnvironment

Society

GovernanceRisk Management

Data<Targets and results of CO₂ emissions reduction>
Item

TargetScopes 1 and 2

Conducting business globally in many fields, our group faces various risks and opportunities in each type of business. Therefore, wegrasp and respond to risks and opportunities on a business company by business company basis. We also respond to climate-

Result30% reduction by FY 2030

8.87％ reduction in FY 2021

(Compared to that of FY 2018)(Compared to that of FY 2018)<Emissions: 265,100 tons>

related risks and opportunities by assessing impacts on the respective businesses while paying close attention to regulatory trends.
The Risk Management Committee conducts a risk assessment from a company-wide perspective in terms of whether or not the risk

Scope 3:30% reduction by FY 2030

1.45％ increase in FY 2021

Category 1 “Purchased goods and services”(Compared to that of FY 2018)(Compared to that of FY 2018)

will have great impact on our business activities, by analyzing the level of impact, the probability of occurrence, and the status ofCategory 4 “Upstream transportation and distribution” (incountermeasures. A risk assessed as a key risk is considered a priority risk. For such a risk, a responsible department is assigned

part)<Emissions: 11.23 million tons>

Category 11 “Use of sold products”

and the Risk Management Committee checks the status of risk reduction activities.

※

Meanwhile, the CSR and Sustainability Committee checks key opportunities. The Committee incorporates these opportunities into

The CO₂ emissions reduction targets above were classified by the Science Based Targets (SBT) initiative as SBT
WB2℃（well below 2℃）in June 2022.

our management strategy and priority issues (materiality) when necessary.

Priority Issues (Materiality)

Risk Management

Eco Vision

Sustainability Data（Non-Financial Information）

Metrics and Targets
In the 2030 Long-Term Management Plan “NITTOKU BX”, which was announced in May 2020, our group has set the target: “CO₂Emissions: 30% Reduction [compared to that of 2018] (FY2030).”
Meanwhile, to enhance environmental conservation activities from a long-term perspective, we formulated Eco Vision 2030 in April
2021. It stipulates the achievement of carbon neutrality by 2050 as a long-term target.
To achieve these targets by further reducing CO₂ emissions, a performance-linked stock compensation plan for directors (excluding
directors who are members of the audit and supervisory committee and outside directors）and executive officers (excluding
employed executive officers）includes the reduction rate of CO₂ emissions as one of the performance indexes. In addition, toencourage our group to make a concerted effort to reduce CO₂ emissions, we have introduced an internal carbon pricing (ICP)system. We collect 10,000 yen per ton of CO₂ from CO₂-emitting departments. The collected fees are used as an internal
environmental fund to support investments toward decarbonization and infrastructure development. Furthermore, we are also
working to reduce CO₂ emissions throughout the supply chain.
We ask our business partners (suppliers) to set a target for reducing CO₂ emissions and work toward achieving the target. We alsooffer support for them as deemed appropriate.

18

Response to Climate Change

Environment

Index

Society

GovernanceManagement of Waste

Data

Conservation of Water Resources

Trends in Volume of Waste Generated

Trends in Volume of Water Usage

The amount of waste generated in FY2021 was 22,686 tons,

The volume of drinking water, well water, and river water used

12.1% increase year on year.

in FY 2021 totaled 1.65 million m3. The total amount of water

Eco Vision 2030, which we began implementing in FY2021,

used was increased by 8% year on year due to Increased

sets targets for waste management of an "effective utilization

production.

rate of 95% or more" and "reduction of 1% or more per year in

In Eco Vision 2030, which we began working on in FY2021, setbasic unit compared to FY2018" by 2030.

a goal of "maintaining water usage per unit of production at or

The effective utilization rate in FY2021 was 91.3% for the entire

below the FY2018 level" by 2030.

group, an improvement of 1.3% from the previous year.

The basic unit of group companies was 4.923m3/million yen,

In order to achieve the target of 95% or more in FY2030, we will

and we have achieved our target by reducing it by 8.8%

continue to share ideas with each base and work on effective

compared to FY2018.

utilization of waste.

We will continue to promote the efficient use of water.

In FY2021, the basic unit of waste was 0.068 tons / million yen
for the entire group. We have reduced by 0.7% compared to
FY2018, but we have not achieved our target. We will continue
to improve our processes and take other measures to reduce
emissions.

Trends in Volume of Water Usage (NGK SPARK PLUG Group)
Trends in Volume of Waste Generated(NGK SPARK PLUG Group)As part of the promotion of 3R activities in Komaki Plant, wehave installed a stand PC with a display at the entrance of therecycling center to disseminate activity information to visitors.

Proper Waste Disposal
We regularly visit our waste disposers to confirm that consigned waste materials are being processed in accordance with ouragreement. In FY2021, we visited 39 companies and confirmed that their waste was properly disposed of.

19

IndexEnvironment

Society

Governance

Environmentally-friendly Products

Data

Efforts Made when Designing and Developing Products and Services
Creating new products and services and improving them include the processes of research, development, process design, andpackaging specification design.

Environmental Friendliness in the Product Lifecycle

When following these processes, we check the entire lifecycle to see if CO2 emissions can be reduced, if reduced use of resources
or more effective use of resources is possible, and if any substance with environmental impact is contained or used. If it is deemed

To ensure that “All products contribute to the improvement of the global environment and contribute to making a sustainable societythat there is a significant impact on the environment, we implement the necessary measures.

come true” as part of our vision for 2040, we develop and provide products designed in consideration of environmental friendliness.

In addition, we confirm that our products and services comply with environmental laws and regulations and other legal requirements

With this background, we certify products demonstrating especially high environmental performance throughout their productand there are no ethical problems.

lifecycles as “Nittoku Green Products” and strive to expand our lineup of such products.

Certification System for Environmentally Friendly Products - Nittoku Green
Products
We develop and provide products designed in consideration of environmental friendliness. In that respect, all our products areenvironmentally friendly. Among them, products with especially highly environmental performance from the perspective of theirproduct lifecycles has been certified as Nittoku Green Products since FY2021.
Under this certification system, the Environmentally Friendly Products Certification Committee, headed by the Chair of the Central
Environmental Committee (and convened twice a year), assesses products in terms of the three environmental categories of
reduced use of energy, reduced use of resources, and substances with environmental impact, and certifies the products that satisfy
the certification standards as such.
We certified eight products. While leveraging this system for promoting environmental friendliness throughout product lifecycles, wewould like to communicate to you the excellent environmental performance of our products.

Product Lifecycle and Major Efforts

20Environment

Index

Society

Governance・Assessment Categories

Products

Categories

Data

Certification Reason

Assessment Points (from the Perspective of Product Lifecycles)
LED alumina high heat radiation

Reduced use of energy

Reduce the use of energy

Reduced use of resources

Reduce the weight, use recycled materials, and extend the product lifecycle

Substances with environmental

Use no substances with environmental impact, reduce the use of such substances

package (thick Cu-plated

・Reduced use of

Relevant
SDGs

Description
・For details

resources

specifications)

impact
JX1, BIDEMICS for processing heat・Certification Standards

resistant alloys

・Reduced use of・For details

energy・Reduced use ofMust satisfy either of the following conditions:

resources➢Newly developed products whose environmental performance throughout their product lifecycles is above the standards; and➢Improved products whose increase in environmental performance throughout their product lifecycles compared to that of existing

O2 Fresh-5G, an oxygen

products is above the standards.

concentrator

・Reduced use of・For details

energy・Reduced use ofresources

Examples of Nittoku Green Products

Products
Spark plug using a precious metal(iridium alloy) for the center

Certification Reason
・Reduced use of

Relevant
SDGs

Description
・For details

resources
Lead-free piezoelectric ceramics

electrode・Substances with・For details

environmental
impactZFAS®-U3 wide-range oxygen
sensor・Reduced use of

Ozone Air Purifier “Sumikaze”

・For details

energy・Reduced use ofresources

resources

・Substances with・Substances withenvironmental

environmental

impactimpact・Reduced use of・For details

energy・Reduced use of

OZAS®-S4 oxygen sensor

・Reduced use of・For details

Water quality management systemenergy・Reduced use ofresources

・Reduced use of・Substances withresources

environmental
impact21

・For details

IndexEnvironment

Society

GovernanceOne of our Group’s priority issues is “providing environmentally friendly products.” To tackle this issue, we have set numerical

Data

Management of Chemical
Substancestargets to be achieved by 2030 in the fields of spark plugs and automotive oxygen sensors, which represent our environmentallyfriendly products that can contribute to improving automobile fuel efficiency and purifying exhaust gas.
For “development of technology, products and businesses for contributing to the resolution of social issues,” we have set thefollowing targets: realizing widespread use of fuel cells in anticipation of the use of CO2-free hydrogen; facilitating adoption of our
proprietary lead-free piezoelectric ceramics to replace conventional lead-based equivalents; and increasing operating efficiency

Chemical Substance Management Systemusing sensing IoT technology.
Since these products are expected to contribute to solving social problems and boast high environmental performance, we have

Chemical substances are used in various aspects of our daily lives as well as in industrial fields due to their many excellent benefits,

reaffirmed them as Nittoku Green Products.

and we also use many chemical substances.
On the other hand, some of them are harmful to humans and the environment, and regulations on hazardous chemical substances

Priority Issues

have become increasingly severe year by year around the world in association with the growing public awareness of environmental
issues.

We have a three-step management system for handling substances of environmental concern:
1. Answering requests from customers, 2. Handling within the Group, and 3. Procurement from suppliers.
Naturally we ensure compliance with laws and fulfill customer requests. More than that, we aim to reduce the use and emission ofsubstances of environmental concern so as to minimize the impact of chemical substances on the environment and human health.

Answering Requests from Customers
With the reinforcement of regulations on chemical substances contained in products, requests from customers in the automobile,electrical and electronics industry regarding improved compliance are increasing.
We are aware of the product content of subject chemicals such as the REACH regulation in Europe, the POPs Convention, and theTSCA regulation in the United States. When there is a request from a customer, we are taking all the appropriate measures
including submission of Non-Containing Declarations, submission of various data with IMDS, JAPIA sheet, chemSHERPA, etc., andhandling investigations and audits regarding our management systems.

22

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Society

Governance

Data

Handling within the GroupManagement of PRTR substance

To respond appropriately to increasingly strict chemical substance regulations worldwide, we perform non-containment management

Aiming at optimized management, the respective divisions have ensured to identify and totalize PRTR substances for clarifying

for products and usage management within plants.

handling volume, release volume, and transfer volume.

For hazardous chemical substances, we set hazard rankings according to toxicity and the strictness of regulations and establish
handling standards for each rank.
From here on out, we will work toward substitution of hazardous chemical substances and the strengthening of management, toassure compliance with laws and with the demands of customer.

Emission Volume of PRTR Substances(Groups in Japan [with integrated certification])

Procurement from Suppliers
To manage chemical substances contained in products appropriately, it is imperative that we gain the cooperation of our suppliers.

Management System

For this reason, we request in our Green Procurement Guidelines that our suppliers not use hazardous chemical substancesbanned by NGK SPARK PLUG CO., LTD. We designate suppliers that meet our system and material standards as Green Suppliers.

Hazard Rank

In collaboration with our Green Suppliers, we promote appropriate management of hazardous chemical substances.
Our Eco Vision 2030 sets the goal of achieving 100% adoption of a green procurement system, and we will work to establish a

Rank
Prohibited

Handling standard
Use is prohibited.

substances

Substances covered

green procurement system for the entire NGK SPARK PLUG Group. We have begun preparations to expand this initiative tooverseas factories.

Substances prohibited from use or strongly restricted byregulations.

Green Procurement Guidelines
Restricted

Safer substitutes will be sought, while making

Hazard level and toxicity are equivalent to prohibited

substances

efforts to reduce the use of current substances.

substances, but an immediate changeover is impossible due
to its special characteristics.

Monitored

Supplies need to be examined to find existence /substances

non-existence of applicable substances.

Those not prohibited or restricted but that require monitoring.

23

Environment

Index

Society

GovernanceConservation of Biodiversity
Conservation of Biodiversity
Recognizing the conservation of biodiversity as a critical global challenge, NGK SPARK PLUG Group identifies it as a material
environmental issue for us to address, along with global warming mitigation and resource recycling.
From this point of view, we established the NGK SPARK PLUG Group Biodiversity Action Guidelines in April 2013.

Biodiversity Action Guidelines (Japanese only)

12KB

Using the guidelines as a guide, we are working to remain aware of the fact that our activities,
particularly involving energy and resource usage, are inevitably causing impacts on biodiversity,and are taking appropriate measures to reduce such impacts throughout our business operations,in cooperation with business partners and external groups.
In addition, we fully comply with the law and do not pollute rivers or destroy forests.
To protect the rich nature of the surrounding area, the Ise Plant has introduced a "closed system"

Extermination of lanceleaf
coreopsisfor production wastewater. Production wastewater is not discharged outside the plant site and ispurified and reused on site.
As one of the measures outside the business activities, together with Komaki City, Komaki City
Natural Environment Watchers (citizens registered with the city through an open application), andneighboring companies, we are working on extermination of the invasive alien species, lanceleaf
coreopsis, in Komaki City every year.

24

Data

IndexEnvironment

Society

GovernanceD e v e l o p m e n t o f Te c h n o l o g i e s ,Products, and Businesses forContributing to the Resolution ofSocial Issues

Data

Lead-free piezoelectric materials
Piezoelectric ceramics are widely used in the devices for our daily use, but there areconcerns that the presence of lead may have a negative impact on the environmentand our health. We have developed lead-free piezoelectric ceramics, aiming topromote them for the replacement of current piezoelectric ceramics.

Lead-free piezoelectric materials

Development of Technologies, Products, and Businesses for Contributing to the
Resolution of Social Issues

Lead-free piezoelectric materials（Movie）

We are committed to developing technologies, products and businesses that meet the demands of society, with the aim of cocreating and providing new value to help solve social issues.

Sensing IoT

Fuel Cells

In the era of the Internet of Things (IoT), where various things are connected organically through the Internet, sensing technology isplaying an increasingly important role.
By combining our wide range of sensing technologies with the IoT, we help improve business efficiency through automation,

Solid oxide fuel cells (SOFCs) are expected to be one of the cleanest energy sources

optimization, and generalization.

because of their efficiency in high-power generation and effective reduction of carbon
dioxide and other greenhouse gases compared to other fuel cells. NGK SPARK PLUG

・Water quality sensing

CO., LTD. is promoting the development of stacks that generate electricity from

We are working to supply a comprehensive solution for land-based aquaculture that facilitates the management of aquacultural work

SOFCs, with the major business theme of contributing to the building of a future

by applying sensing technologies, visualizing water quality data, integrating it with camera-based biological information, andhydrogen society.

implementing big-data analysis.
We are working to supply a comprehensive solution for land-based aquaculture that facilitates the management of aquacultural work

TECHNO GALAXY “PRODUCING FUEL CELLS OF THE HIGHEST GLOBAL

by applying sensing technologies, visualizing water quality data, integrating it with camera-based biological information, andSTANDARD”

implementing big-data analysis.

Water quality sensing （Movie）

Our Stories Development of SOFC

・Sensing technology

Solid Oxide Fuel Cells（Movie）

TECHNO GALAXY “SENSING AIR AND TEMPERATURE”

25IndexEnvironment

Society

Governance

Data

Initiatives aimed at realizing a carbon recycle-oriented society (Carbon Neutral as a service)

Searching and investigating themes that solve social issues

In order to contribute to the realization of a carbon-neutral society, we are developing methanation-related technologies (hydrogen

In order to grasp the demands of society, we participate in various organizations and projects to search and investigate new themes

production technology that applies ceramic solid electrolytes and CO2 recovery technology that applies oxygen concentrator

that contribute to help solve social issues.

technology).

・Hydrogen Council
The Hydrogen Council is a global CEO-level advisory body with a long-term vision for the key role of hydrogen technology in the・Regional CCU (Carbon dioxide Capture Utilization)energy transition. We are participating as a supporting member.

We are developing technologies that can contribute to the prevention of global warming by recovering CO2 emitted from factories
and commercial facilities and using it as a resource.

Hydrogen Council

CO2, hydrogen, methane gas, and electricity are interchanged and circulated locally by optimally managing CO2 emissions/demand
and renewable electricity production centered on CCU (Carbon Capture and Utilization).

・MATSURI

We will connect a prosperous society aiming for virtually zero CO2 emissions to the next generation and contribute to the realization

MATSURI is a corporate collaboration project that promotes the realization of carbon neutrality through the production of algaeof a carbon-neutral society that takes advantage of regional characteristics.

utilizing photosynthesis. Various companies from a wide variety of industries participate in this project. Partner companies aredeveloping businesses in all roles from algae production to sales, including the development of equipment related to algae
cultivation, the maintenance of logistics networks, and the development and sale of products, and are working together to build analgae industry.

MATSURI (Japanese Only)

・eFuel Alliance
The eFuel Alliance is an organization whose goal is to establish and disseminate
e-fuel, which contributes to the prevention of global warming, and to make it accepted
all over the world.
* e-fuel: Fuels produced by synthesizing carbon dioxide (CO2) and hydrogen (H2) are called
synthetic fuels. Of these, synthetic fuels that use hydrogen derived from renewable energy sources
are called "e-fuel". Since CO2 in the atmosphere is used as raw material, burning e-fuel does notincrease the amount of CO2 in the atmosphere.

eFuel Alliance26

IndexEnvironment

Society

Governance

Respect for Human Rights

Data

The human rights that the Group respects in its corporate activities include the following:[Prohibition of forced labor]
We do not tolerate forced labor and human trafficking, and we employ employees on their own volition.

Human Rights Policy[Prohibition of inhumane treatment]
We do not engage in inhumane treatment such as abuse, corporal punishment, sexual harassment, or power abuse, and we respect the

We are working to resolve various social issues to realize sustainable societies. We recognize that as a prerequisite for this, it ishuman rights of our employees.

important to respect human rights of people who are affected by our business activities, and that it is essential to continuously fulfill such

[Prohibition of child labor]

responsibilities in truly contributing to the realization of sustainable societies. To this end, we respect human rights set out in the

We respect rights of children and do not employ them under the minimum age for employment in the country or region. Workers under

Universal Declaration of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work, and make our best

the age of 18 shall not perform work that is likely jeopardize the healthy development.

efforts to protect the dignity of these people based on the UN Global Compact, the UN Guiding Principles on Business and Human[Prohibition of discrimination]

Rights, and the OECD Guidelines for Multinational Enterprises.

We prohibit discrimination of any kind, irrespective of race, color, age, gender, sexual orientation, gender identity, ethnicity, nationality,
disability, pregnancy, religion, union membership, protected genetic information, or marital status.

Action Guidelines[Working conditions and equal opportunities]
We comply with the laws and regulations of each country and region, and offer working conditions for a better life for our employees, and・We comply with the laws and regulations of all countries and regions in which we conduct our business activities. If where national

pay more than the legal minimum wage and do not unreasonably reduce wages. We also promote equal opportunities and equality inlaws and international human rights differ, we seek ways to respect internationally recognized human rights wherever possible.

hiring, promotion, and compensation.

・We identify negative impacts that we could have on human rights through our business activities, and strive to prevent, mitigate, or[Freedom of association and collective bargaining]eliminate the causes of such impacts.

We respect freedom of association and the right to collective bargaining in accordance with the laws and regulations of each country and・We establish a scheme for our employees and suppliers to access or report, and accept consultations and notifications concerning
human rights. Upon receiving consultations or notifications, we investigate the facts, and if any problem is identified, we remedy it

region.

through appropriate response.

[Responsible procurement of resources and materials]

・We disclose efforts and progress promptly on human rights actions and keep updating ones through discussions and dialogues with

We promote responsible procurement of resources and materials, taking into consideration human rights issues, including those relating

various internal and external stakeholders.

to conflict minerals. If any use of such minerals is found, we will take appropriate measures.

・This policy applies to all Corporate Officers and employees of the Group. We provide appropriate education and trainings to ensure[Respect for privacy]that all Corporate Officers and employees understand and act with this policy.
・We keep encouraging all of our business partners, including suppliers, to understand the Policy and join our efforts to respect human

We respect and do not infringe on the privacy of individuals.

rights.

[Comfortable workplace environment]
We comply with the laws and regulations concerning safety, hygiene and health in each country and region, and create a safe, healthy＜Appendix＞

and comfortable workplace environment.

The Policy is top-ranked guideline on human rights actions and had been confirmed by our CSR and Sustainability Committee and[Engagement with local communities]

approved by Board of Directors’ meeting. The Policy shows the Group’s approach on human rights and complements our Corporate

To prevent negative impacts on the safety and health of local communities, we prevent environmental destruction and contamination,

Philosophy, CSR and Sustainability Charter, and Corporate Code of Conduct.

and conduct our business activities in consideration of the rights of local residents.

The Policy will be periodically updated in response to changing social and business environment and human right issues, through[Respect for the rights of indigenous peoples]

discussions and dialogues with stakeholders. We keep adequate management system and reflect updates on relevant business policies

In business activities in areas where indigenous peoples reside, we recognize that indigenous peoples have their own unique culturesand procedures to integrate in entire business activities.

and histories, and we respect the rights of indigenous peoples as stipulated in international agreements.

27

IndexEnvironment

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Governance

Data

Promotion System

Human Rights Due DiligenceIn our group, we confirm topics related to human rights and take action in the CSR and Sustainability Promotion System as part of

We are aware that various people, including employees of our group and our suppliers as well as local residents, are affected by theissues to be addressed in terms of CSR and sustainability.

business operations of our group. For this reason, we have been working to identify and mitigate human rights risks related to the

Labor and management work together to prevent harassment in the workplace. We offer consultation services through the contact point

business operations of our group.

jointly established by labor and management at each of our plants and via the Corporate Ethics Helpline. The Anti-Harassment

At present, potential human rights risks are assessed mainly on employees of our group and the supply chain, and efforts are made toCommittee promptly examines issues reported through the contacts and checks facts. It then takes corrective action and gives

mitigate and reduce such risks.

instructions as needed. The results of the action taken are reported to the Compliance Committee. Other matters related to human rights
are handled by the Compliance Committee.

【Employees】

The effectiveness of the compliance system, including measures against harassment, is periodically reviewed and reported to the CSR

At our group, a compliance awareness survey is conducted to identify risks related to compliance, the degree of awareness andand Sustainability Committee for confirmation.

understanding, and the status of the organization, etc. The survey sheet has an open-ended response field. Respondents cananonymously write their opinions about compliance. Issues and potential human rights risks identified through the surveys are reported

Compliance Promotion System

to heads of respective divisions to prevent them and make improvements.
We also conduct annual surveys on our group companies about human rights and labor issues to check for potential human rights risks.

CSR and Sustainability Promotion System【Supply Chain】
To promote CSR and sustainability efforts throughout our supply chain, we issued the CSR and Sustainability Procurement Guidelines,
which have been deployed to suppliers. The guidelines include compliance matters related to human rights, including labor, safety, andhealth.
To monitor the status of implementation by suppliers, we conduct surveys every two years using a check list and provide feedback on

Awareness-Raising Activities

the results. For suppliers that require follow-up activities, we visit them to check the situation. We also provide support as appropriate
when improvements are needed.

We distribute the Compliance Guidebook to employees at our group.
The Compliance Guidebook is a booklet that compiles corporate and social rules. It is used to check correct action to be taken as amember of the NGK SPARK PLUG Group when it is difficult to make judgments. This guidebook also stipulates compliance mattersrelated to human rights, including respect for human rights and prohibition of various types of harassment (e.g., harassment related topregnancy, childbirth, childcare leave and long-term care leave, bullying, and mobbing, as well as sexual harassment, including that
directed against people of the same gender and in relation to sexual orientation or identity). The guidebook is also used in dailyawareness-raising activities, such as read-through at the workplace.
Since we signed the UN Global Compact in 2016, we have been creating more opportunities to provide education and information onhuman rights to our employees to raise their awareness. We have been recently increasing opportunities to raise awareness about
gender equality and LGBT-related issues through our human-rights-related training and e-mail newsletters. We are also monitoring racial
problems around the world.

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Society

Governance

Data

Global Human Resource
Management

Complaint Handling Mechanism
We have contact points in place to accept opinions, questions, requests, etc. from stakeholders, including customers, suppliers, andemployees.
Reports and consultation requests related to human rights from suppliers and employees are accepted by contact points for the whistle-

Human Resource Policy

blowing system. In response to consultation requests and reports accepted, facts are investigated with utmost care so that an employee
or supplier who makes a report is not identified or does not feel anxious. If any problem is identified, action is taken promptly.

We acknowledge that our employees are our most important management resource. In light of this, we respect the diversity and【Japan】

individuality of our employees and strive to develop the group as a whole by ensuring that these self-leading and innovative human・Contact points for the Corporate Ethics Helpline (a whistle-blowing system) are in place internally and externally.

resources can fully demonstrate their capabilities.

・External contact points offer consultation services and accept reports outside working hours and on holidays. Consultation requests
are also accepted anonymously.
・The helpline is available for suppliers and our group employees.

Action Guidelines【Outside Japan】

・We foster aspiring human resources who can act to bring about changes and also change themselves (self-leading andinnovative human resources) and establish an environment where they can perform to the best of their abilities.

・Respective group companies have contact points for whistle-blowing.

・We strive to nurture a corporate culture where human resources with different qualities can fully realize their own capabilities andensure that the right human resources are assigned to the right posts.

Corporate Ethics Helpline

Showing Support to the “My Declaration of Human Rights” Project under the
Auspices of the Ministry of Justice

Diversity,Equity &Inclusion

In July 2021, we publicized “My Declaration of Human Rights” to show support for the “My Declaration of Human Rights” projectWork-Life Balance

Human Resource
Development

Work style reforms, work-life

promoted by the Ministry of Justice.

Women’s empowerment

balance support, and more.

initiatives, employee-friendly
work environment, andmore.

Continuous education andtraining activities,

View details

development of managerial
human resources, andmore.

View details
View details

President Kawai holding a declaration card

“My Declaration of Human Rights” of NGK SPARK PLUG

Special website for “My Declaration of Human Rights” of the Ministry of Justice29

IndexEnvironment

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Governance

Data

Basic Philosophy

Employee Satisfaction Survey

In our Long-term Management Plan “NITTOKU BX,” we have set “Beyond ceramics, eXceeding imagination” as our vision for 2040.

In order to grasp the Group’s situation and challenges and make improvements, we have been conducting an employee satisfaction

The core message of this vision is to be a company that coexists with a diverse range of human resources with aspirations. We are

survey targeting employees of NGK SPARK PLUG and group companies in Japan.

not only concerned with “What ceramics can do,” but also with the acquisition and development of diverse and autonomous
employees as a management strategy to take on challenges beyond the realm of ceramics and beyond the world and our own

The response rate for FY 2020 survey reached 88.0%, and the satisfaction rate was 46.2%, showing a decrease from the previous

imagination.

year.

Specifically, in January 2021, we announced the Work Style Reform Declaration to promote diverse work styles, and in April of thesame year, we introduced an in-house company system and spun off some businesses. In addition to clarifying the responsibilities

The survey results are returned to the heads of each department who work on improvements based on the understanding of theand authority of each business and individual, we have created an environment that facilitates the individuality and characteristics ofdepartment’s situation and challenges indicated by the survey results. Also, the Human Resources department is working to create

each business. Some companies are operating a system to identify the individuality and abilities of employees and match them witha better working environment by interviewing young employees in each workplace to identify issues.

jobs in their fields of interest. In addition, we continue to focus on the development of the younger generation through the HAGIProgram for developing the next generation of managerial human resources and the Raise UP Program, which promotes theadvancement of women. Looking outside the company, we are actively promoting open innovation such as the Venture Lab*, whichis intended to connect with industry, government, academia, or overseas advanced technologies and their groups.
In terms of human resource diversity, the Group has set numerical targets of 25% women, foreign nationals, and career hires inmanagerial posts and 30% or more women and foreign nationals on the Board of Directors by 2030. At the end of FY2021, theformer is 17% and the latter is 18%. These indicators are not set with the intention of focusing solely on gender or nationality. We
are committed as a management team to making efforts to create an organization that embraces and makes the most of the colorful
individuality and characteristics of our employees.
Furthermore, in April 2022, the personnel system has undergone a major change. In order to accelerate the creation of selfdisciplined creative human resources who can realize the themes of the Medium-term Management Plan, “Break to change” and“Change to create,” we have incorporated the Group Human Resource Policy, which clearly defines the direction of human resource
policies that the entire Group will pursue, and have created a highly fair personnel system that rewards achievements andchallenges regardless of age or other backgrounds.
Also, we promote health and productivity management, believing that it is essential for the sustainable development of the Group
that employees work in good physical and mental health. In addition to our annual employee satisfaction survey, we have introduced
a quantitative indicator as a tool to visualize engagement that can be checked by line managers, along with the one-on-one meeting
between superiors and subordinates, which have been introduced on a trial basis in FY2019. We have also introduced GOOD
MORNING COLOR, developed by ignArt, a new company launched in 2020, and are actively working to improve workers’ self-care
and workplace communication.
In order to combine different “knowledge” to achieve a future that is beyond the current way, the Nittoku Group will continue to work
to promote diversity, equity, and inclusion as its management strategy.

* Bases for creation of new business pillars in Silicon Valley, Tokyo, and Germany

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IndexEnvironment

Society

GovernanceD i v e r s i t y, E q u i t y & I n c l u s i o n

Data

MT training
The name of this training, “mimi-tako (MT),” is derived from a Japanese phrase meaning “hear enough.” To raise managers’ awareness,
the MT training is held repeatedly under the themes of, for example, diversity, the Nittoku Way, and compliance to the extent that

Basic Philosophy

trainees feel they have heard enough.

We consider diversity, Equity and inclusion to be one of our most important management strategies as we believe that diversity andinclusion are essential for companies to attain sound growth and ensure happiness for all employees.
We acknowledge and accept different people regardless of their gender, sexual orientation, age, disabilities or nationality as well as of
their lifestyles or personality. Then, we utilize new values and ideas coming from an employee-friendly workplace that accepts suchpeople by combining different “knowledge.”**Combining different “knowledge” means combining human resources with different attributes, values or ideas.

Gender Equality Initiatives (Promoting Empowerment of Women)
Proportion of Female Employees

Since 2013, as our first step toward diversity promotion, we have been putting effort in creating working environment across thecompany where women can truly thrive and play active roles. We are trying to change the mindset of both managers and female
employees themselves, regarding the empowerment of women as a driver for the reform of our corporate culture. We will continue to

Number of Female Employees in a Managerial Posts

make further efforts to increase the ratio of women in managerial positions.

External commendation for the empowerment of womenRaise UP Program (Selective Female Manager Promotion Training)・Selected to be a Nadeshiko Brand company (for FY2021)
・Signed the Women's Empowerment Principles (WEPs)

This is a selective training program for female employees whose next stage of growth will be managerial positions, to acquire the・Granted Kurumin certification (for FY2020)

knowledge, skills, and attitude required to become what they want to be. The program embraces the concept “one step forward in a・Selected to be a Nadeshiko Brand company (for FY2018)

resilient manner while staying true to oneself,” and the first word in the name of the program represents the components that make up

・Certified by Aichi Prefecture as an “Aichi Josei Kagayaki Company (Company Supporting Aichi Women’s Career Success) (for
FY2017)the concept: Resilient, Active, I (true to oneself), Smart, and Exceed (one step forward). We have appointed several executives as・Included in “New Diversity Management Selection 100” by the Ministry of Economy, Trade and Industry (for FY2017)advisory board members for the program, providing opportunities for trainees to voluntarily seek advice and support for their efforts in・Granted Eruboshi two-star certification based on the Act on Women’s Participation and Advancement in the Workplace (for FY2016)

the program, and acquire multiple mentors. Trainees will gain the perspective required of managers, and at the end of the training, they・Granted the 2015 Japan Productivity Center Incentive Award Empowerment Grand Prix for Activities by Women

will give a presentation in front of the chairman and president. Through the training, we help trainees get ready to become managers and・Received the 2014 Excellence Award, Nagoya City Accreditation and Commendation System for Companies that Promoted Increased

to take on challenges with confidence.

Roles for Women

Lectures for those in managerial positions

Information Disclosure Based on Promoting Empowerment of Women

We hold annual lectures on diversity for executives, managers, and section chiefs, by inviting prominent outside lecturers. By providing
External Evaluation of Our ESG Initiatives

opportunities to acquire knowledge of advanced cases, we help participants change the way they think and raise awareness while
spreading the significance of promoting diversity.

31IndexEnvironment

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Governance

Providing Workplaces Where Employees Can Continue to Exert Their Abilities

Employment of the Disabled

The growth of employees leads to the sustainable growth of the company. Based on this recognition, we are working to provide

We established Nittoku Smile Co., Ltd. in order to promote

employees with workplaces where they can choose the right career for themselves, enhance their expertise and skills, and continue toemployment of workers with disabilities and it was certified as amake a meaningful contribution.

special subsidiary in January 2018. We aim to create a

For example, we launched the Platinum Project targeting employees who are aged 60 and above, also known as the “platinum

comfortable environment for workers with disabilities.

generation,” to ensure that employees who wish to remain in the workforce after reaching the retirement age can continue to use their

The percentage of employees with disabilities at the end of fiscal

skills.

2021 was 2.36%, reaching the mandated employment rate ofIn the Platinum Project, we hold various seminars and provide information through an e-zine.

2.3%. We continue to create a better working environment by

Data

promoting understanding of employment of workers withdisabilities within the company.

Establishment of a career consultation helpline
Through this contact, employees who have a national qualification for career consulting respond to calls for advice about career vision,
work motivation, life events, etc. The career consultants do not provide solutions but instead help the questioners find answers forthemselves.

Percentage of Disabled Employees*The numbers in the data are for the end of the fiscal year.

Promoting the use of “My Career”
As a tool to help employees to look back on their past, set their future vision and commit themselves to achieving the vision, we use “My

Putting Focus on the Employment of New Graduates with Foreign Nationality

Career.” Employees annually input information about their career to date and their future aspirations into “My Career,” which their
managers then refer to in interviewing them to support their career development.

We are promoting the employment of foreign nationals in our effort to adapt to the rapid progress of globalization and encourage diverse
talent to play active roles. For new graduates, we have been employing at least three foreign nationals every year, recently with a

Diversification of the work styles of the platinum generation

special focus on the employment of foreign nationals who have studied the Japanese language at overseas universities and want toSome employees in the platinum generation are eager to work but do not have confidence in their physical stamina. In response, atwork in Japan, in addition to those who have studied in Japan.

some of our plants we have begun to exempt such employees from the night shift upon request, with other employees working at night

In order to help newly-hired foreign national employees smoothly adapt to life in Japan, we offer them various supports, including a help

instead.

site Nittokupedia created by their senior colleagues, a work buddy program to work with Japanese peers, teaching of Japanese
language and cross-cultural training. With non-Japanese new graduates and mid-career employees, including both engineers and officepersonnel, demonstrating their abilities at our workplaces, we can increase our diversity awareness across the company.
We are recognized as a company that has been proactively employing highly-skilled foreign professionals,* and our efforts shown above
are covered in "Fifty Japanese Companies Providing Successful Careers for Highly-skilled Foreign Professionals" released by the
Ministry of Economy, Trade and Industry, and in a publication issued by the Ministry of Health, Labour and Welfare to introduce acollection of successful case examples that help improve employment management to create an attractive working environment for
highly-skilled foreign professionals. In addition, we have been selected for the Japanese government project "Visionary Management
2021," which selects about 100 companies from all over Japan that are working on employing highly-skilled foreign IT personnel, that is
to say, a new management method of hiring excellent talent regardless of nationality.

*Highly-skilled foreign professionals: foreign human resources with advanced expertise and skills

32
Number of Retirees Reemployed under the System

IndexEnvironment

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Data

Work-Life Balance

LGBTQ Initiatives
Our human resources policy states that we respect the diversity and individuality of our employees, and we aim to create a workplace
where LGBTQ employees can play an active role with pride.

Work Style Reform

Main initiatives

To improve productivity and develop self-disciplined human resources, we have formulated Work Style Reform Declaration based on
two pillars: promoting comfortable remote work and creating new value with tools responding to change.

We continuously provide employees with various training programs and raise their awareness through our in-house email newsletters sothat they can acquire accurate knowledge. In addition, we are proceeding with initiatives such as adopting gender-neutral uniforms withunified designs and colors, and installing multipurpose toilets accessible to anyone.

Work Style Reform Declaration
We recommend "diversified work styles" for "Creating an organization comprised of passionate individuals working together"

Countermeasures against harassmentof Nittoku BX.
• Promote comfortable remote work to employees

Our human rights policy explicitly states that we will not discriminate on the grounds of LGBTQ. In addition, consultations on LGBTQ and→ Create an environment with a goal of a remote work rate of 70% or more.

other sexual harassment are given by both labor and management at the consultation desks set up at each plant and via the Corporate• Prepare tools that respond to change and create new value

Ethics Helpline. Prompt action is taken by the Harassment Control Committee.

→ To that end, we will invest in digital solutions.

In recognition of these efforts, in 2021 the company was awarded Silver Recognition in the PRIDE Index, an index established by thevoluntary organization "work with PRIDE" to evaluate corporate LGBTQ initiatives.

And we want you to find the best for yourself from the many options and become a “self-disciplined human resource who cancontinue to add value”.
NGK SPARK PLUG Group respects each person's values and aspirations.

We are working to put in place a remote access environment and introduce a telephone extension system even available for
employees working remotely or on business trips to realize the work style reforms.
We are also promoting the creation of working environment where employees can more easily work remotely by eliminating arequirement for attendance (clock-in time), offering a remote work allowance, putting in place satellite offices and sharing
information on ingenious approaches for remote work taken at workplaces.
We will review the modality of organization as well as our business management through the promotion of remote work, and create
self-disciplined human resources who are not tied down to tradition and capable of creating new value.
In October 2021, we launched a second job plan with the aim of providing more opportunities for employees to play an active role invarious fields. This plan is available for employees who meet the requirements and are granted permission. We expect positiveeffects, including the formation of new networks, the acquisition of diverse work styles, self-development and self-actualization, andthe expansion of business opportunities.

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Reduction in Working Hours

Initiatives that Consider Work-Life Balance

We are working to reduce overtime in order to reduce total working hours. When pre-planned overtime is known about, the company

We are promoting initiatives improve the work-life balance ofmanagement and the labor union confirm the situation in the workplace and engage in consultation designed to keep working hours

employees.

within the target. As a result of addressing the issues discussed at the labor reform committee, we are starting no-overtime

The percentage of female employees taking childcare leave

Wednesdays and prohibiting overtime in excess of five hours per day.

now exceeds 98%, and the number of male employees who

Datatake childcare leave has increased in recent years.
Furthermore, as a measure of the labor reform committee, we added a new regulation for having 10-hour intermission between

Through the revision of our reduced working hours plan, which

working hours, and failing to comply with the rules is expected to be subject of the labor-management consultation as a strategy forused to be only available for those involved in childcare or long-suppressing overtime work.

term care, we have made the plan available without imposing

An annual variable working system was introduced from April 2020, allowing workers to set their monthly working hours according to

any requirements, thereby expanding the work style options forthe year’s busy seasons, allowing for a reduction in overtime and a more flexible working style.

employees.
For flextime working, we do not set core hours, and from April
2022, hourly leave can be taken, allowing employees to work ina more flexible manner.

Labor-Management Relations

Number of Employees Using the Leave Schemes

Labor-management relations should be oriented to the combined employer-employee effort to contribute to society through the
Publication of information based on the Act on Advancement of Measures to Support Raising Next-Generation Children

provision of good products and services. At NGK SPARK PLUG CO., LTD., both labor and management understand their respective
responsibilities and strive to improve the work environment through mutual trust and cooperation.
Labor-management conferences are held three to four times a year on individual workplace and companywide bases, providing
communication opportunities. These are chances to discuss various topics including the company's situation and how to improve
the labor environment, and opportunities for employees to have their opinions heard. These conferences serve as opportunities toform a labor-management consensus through lively discussions on various issues, including the situation of the company andimprovement of the working environment.

NGK SPARK PLUG Group labor unionNGK SPARK PLUG Group labor union’s participation rate

94％
(As of March 31, 2022)*Including CERAMIC SENSOR CO., LTD, SparkTech WKS CO., Ltd., NANSEI CERAMIC CO., LTD., NTK Medical CO., LTD., NTK
CUTTING TOOLS CO., LTD., NTK CERATEC CO., LTD.（Komaki Plant）

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Society

Governance

Data

Human Resource Development

Plans
Plan
Flextime working plan

Overview

Continuous Education and Training Activities

Employees can decide the start and end times as long as they work the prescribed totalmonthly working hours.

Hourly leave plan

Employees can take hourly leave (paid) for any reason.

Second job plan

Employees can be hired by another company or work freelance in accordance with theBased on the Four Shared Values of the Nittoku Way (Shisei-Shinjitsu, Dokuritsu-Jiei, Shikai-Keitei and Soshi-Kantetsu) and on the“Quality Product” and “Participation by all” principles, we conduct education and training activities in a planned manner tocontinuously develop employees who can boldly deal with challenging internal and external changes as well as those with highrules while making the job at our company their main job.

levels of expertise.
Telecommuting plan

We recommend telecommuting toward a target telecommuting rate of 70%. A remote

Our education and training activities consist mainly of OJT (on-the-job training), through which employees can acquire technologies

work allowance is paid according to the number of telecommuting days.
Reemployment plan for employees

and knowledge through their hands-on work. We also offer OFF-JT (off-the-job training), providing employees with newThose retired due to their spouse's transfer can be rehired.

technologies, knowledge and skills outside their respective workplaces. We have a wide range of OFF-JT programs that include

retired due to their spouse’s transfer

training by organizational level and role to provide necessary knowledge and skills, product quality education, environment andSpecial leave for antenatal

Pregnant employees can take special leave as follows:- 12 to 23 weeks pregnant: one

safety & health education, manufacturing education, education in global business, and career development support.

outpatient visits

day every four weeks;- 24 to 35 weeks pregnant: one day every two weeks; and- 36

In FY 2020, we had to cancel some training programs due to the spread of COVID-19. However, we implemented thoroughweeks pregnant onward: one day every week.

measures against the spread, such as changing the training method from group training to online training, and a total of 3,706

Special unpaid leave for fertility

It is possible to take special leave (unpaid) for outpatient visits to undergo infertility

employees took the courses.

treatment

treatment.

Childbirth leave

Employees can take leave 17 weeks before the expected date of delivery and eightweeks from the day after delivery.

Childcare leave

Employees can take leave after the birth of their child until the day before the child’s firstbirthday.

Extension of the childcare leave

The childcare leave period can be extended to the end of April after the child’s second

periodbirthday if the child cannot enter a day-care center, or childcare while working has
become difficult due to the death/injury/illness of the spouse engaged in childcare.

Reduced working hours (childcare)

On the grounds of childcare, employees can reduce their working hours by two hours
from the prescribed working hours from the desired date until the end of the school year
during which their child is in the third grade at elementary school.

Reduced working hours (long-term

On the grounds of long-term care, employees can reduce their working hours by twocare)hours from the prescribed working hours from the desired date until the end of long-term
care.

Reduced working hours (other

Regardless of the reason, employees can reduce their working hours by two hours fromreasons)

the prescribed working hours from the desired date to a predetermined date.

Child nursing care/long-term care

Employees can take special leave (unpaid) on an hourly basis to provide child nursing

leave plan

care or long-term care if they are raising a child in the third grade at elementary school or
younger, or have a family member (in the first or second degree) in need of long-termcare.

Special paid leave for employees

Employees with disabilities who have notified the company of their disability can takewith disabilities for their outpatient

special leave (paid) once a month when they need leave for their outpatient visit tovisitsundergo an examination or consult a doctor.

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Data

Development and Management of Managerial Human Resources

Development of Managers

As we expanded our business globally, in 2016, we started a program to find and develop the next generation of global managerial

For the development of managers, we provide them with opportunities to review their past management approaches and observe

human resources, targeting all Group companies.

the situation of their respective workplaces in an objective manner.

This program is intended to facilitate the employment and promotion of candidates regardless of nationality and to provide them with
opportunities and environments that allow them to demonstrate their abilities. It was named the “HAGI Program” after Hagi City in

Implementation of a 360-degree survey

Yamaguchi Prefecture, where the Shoka Sonjuku school developed diverse human resources at the end of the Edo period.
Chairman Shinichi Odo serves as the head of the program. Under the program, seminars have been held on a continuous basis to

We implemented a 360-degree survey targeting departmental managers and those in higher positions in FY2018, and we will

provide employees with opportunities to learn together with a focus on gaining a big picture view encompassing the entire company.

expand the survey target to include sectional managers and those in higher positions in FY2020.

We are thereby developing leaders with the will and sense of mission required to take the NGK SPARK PLUG Group into the future.

In the survey, we examine leadership qualities of the respondents, including progressiveness, intelligence and sense of

Targeting human resources in Japan, we run Nittoku Business School classes for employees who are almost qualified to participate

responsibility, as well as negative attributes that might hinder them from demonstrating their leadership, such as being avoidant. The

in the HAGI Program. For these classes we have prepared a curriculum that helps participants develop logical thinking and acquire

survey results reveal the gaps between what the surveyed individuals think about themselves and what others think about them. We

knowledge and skills regarding management strategies, marketing and presentations. It also includes case studies based on actual

give feedback to the respondents to help them become aware of the importance of “observing” themselves.

examples and is intended to help participants to develop the spirit, techniques and physical stamina required of leaders.
Employees who have completed the HAGI Program and the Nittoku Business School curriculum have already been making

Use of an indicator to visualize workplace engagement

contributions in core positions within the Group.
We have also established a selective human resources development program for each of North America, Europe, Asia and other

Along with the “one-on-one meeting,” which we introduced on a trial basis in FY2019 to foster dialogue between managers and theirregions and implement the program four times a year for the local development of business leaders.

subordinates for the development of workers able to work autonomously, we have also introduced a quantitative indicator as a toolMoreover, in order to visualize the personal histories and skills of employees who are candidates to become business leaders, we

to visualize workplace engagement. This engagement indicator numerically shows the level of employees’ eagerness to contributehave collected information about NGK SPARK PLUG’s managers and executives of overseas Group companies for input into ourto their organizations and jobs, and is designed for use by line managers to check the management level of their workplaces.

human resource databank, which is used in discussions by the Human Resources Committee. This committee is composed of themembers of the management team and has been meeting monthly since FY2018. At the meeting the members discuss personnel
affairs regarding core positions and work to place the right person in the right job for total optimization.

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Society

GovernanceOccupational Health and Safety

Data

Promotion System
With the aim of eliminating on-the-job injuries and creating a comfortable, safe work environment, we have established andimplemented domestic occupational health and safety management system OHSMS (Occupational Health and Safety Management

Occupational Health and Safety Policy

System). The company, headquarters, and the group companies in Japan set safety goals and safety plans in accordance with our
OHSMS guidelines, aiming to conduct health and safety activities based on a “total involvement" principle. To attain a step-by-stepWith high respect to humanity, we act on occupational health and safety as the company’s starting point.

improvement of our safety status, these progress and results of such OHSMS efforts are verified by our internal health and safety
auditors as well as each health and safety committee and the central health and safety committee.

Action Guidelines

In FY 2021, our company acquired ISO 45001*1 certification, an international standard for occupational health and safety
management systems. From this time forward, the NGK SPARK PLUG Group, including domestic and overseas group companies,

・To prevent health damage, injuries at work, and illnesses of employees, we will provide healthy and safety working environment
and act to improve physical and mental health.

will work on health and safety activities so that these companies can also acquire ISO 45001 certification.

・We will comply with laws and voluntary regulations regarding Occupational Health and Safety.

*1︓ISO 45001 is the first international standard for occupational health and safety management systems issued by the International

・We will continuously improve occupational health and safety management system and health and safety performance.

Organization for Standardization (ISO).

・We will eradicate injury at work by eliminating hazards for occupational health and safety and by reducing risks.
・We will promote ability and awareness at occupational health and safety through education and enlightenment.
・We will inform all employees about this policy and engage in health and safety activities with the participation of all employees.

Health and Safety
Activities

Health Promotion
Activities

Our approaches to

Health and productivity

elimination of occupational

management, healthaccidents, and more.

promotion activities, andmore.

View details
View details
Health and Safety Promotion Organization

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Society

GovernanceTargets & Results for Fiscal 2021

Data

*1: “Po-Ke-Te-Na-Shi” (Pocket-Phone-Handrail-Shortcut-Pointing) is a general term indicating precautions to protect workers frombeing involved in an accident while walking around the workplace and to reduce operational errors by conducting pointing and

Item

Fiscal 2021 Target

Fiscal 2021 Result

Evaluation

PersonPromotion of “Po-Ke-Te-

In addition to spreading awareness of “Po-Ke-Te-〇

Na-Shi”*1

Na-Shi” by, for example, placing crossing guards,

calling in practical operations, for example, “Do not walk with hands in pockets,” “Do not use your cell phone while walking,” “Makesure to hold the handrail while ascending or descending stairs,” “Avoid crossing at an angle (shortcut),” and “Never fail to conduct

Healthand
Safetypointing and calling points were specified in the

Activities

procedure manuals for work that includes risk

pointing and calling at the points specified for this practice.”

Targets for Fiscal 2022

level IV and III tasks at each workplace.
Communicate hazards

At each workplace, the hazards and risks at risk

and riskslevels IV and III were communicated to the

Item〇
Health andworkers on a priority basis.
Implementation of traffic

Conducted KYT (risk prediction training) activities

KYT (Kiken Yochi

related to traffic safety at each workplace to raise

Training, or risk

awareness. In addition, information on traffic

prediction training)safety was communicated at health and safety

Procedure for removing

For the work of removing safety covers forsafety covers

maintenance or other purposes at each

Implementation of traffic KYTMachine/ work〇

Working environment

Healththe condition of safety covers was added to thedislodgement or damage

daily inspection items for machinery.

Improvement of

The working environment was measured, andmanagement categories

then improved based on the measurement

III and II,

results.

between workers through safety
observation〇

Working

Improvement of management category III,

Create a safe and comfortable working

environment

II, maintenance of the management I

environment

category
Health〇Implementation of measures against life-

In a comfortable working environment,style related diseases

employees and their families raise theirhealth awareness and work in good

Implementation of mental health measuresand maintenance of

Implementation of passive smoking

management category I

measures

Implementation of

To reduce the risk of developing gastric cancer,

measures against

Helicobacter pylori testing has been introduced inlifestyle-related diseases

periodic health examinations.

Implementation of mental

We dispatched occupational physicians to spin-off

health measuresgroup companies, identified workers with mental〇〇

disorders at these companies, and tookappropriate measures.
Implementation of

A monthly non-smoking day (Suwan

passive smoking

Day—“suwan” means “non-smoking” inmeasures

Japanese) was established, and we also raised

Provide safe work and machine

Checking differences in operations

procedure manuals.

to check for

Setting pointing and calling points for work
procedures

cover to putting it back was added to the work

At each workplace, a requirement for checking

Develop person who can act safely

Communicate hazards and risks〇

workplace, the workflow from removing the safety

Safety cover inspection

Promotion of “Po・Ke・Te・Na・Shi”

Ideal Situation

Safetycommittees and by email.
Machine / work

PersonHealth and Safety Targets〇

awareness of non-smoking through broadcastingon-site announcements.

38

physical and mental health.

Environment

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Governance

Health and Safety Activities

Data

Risk Assessment (RA) Initiatives
Risk assessment (RA) is the core activity of our occupational health and safety management system (OHSMS). We have reviewed
diverse potential risks resulting from workplace equipment, chemical substances, and work at every workplace and evaluated them to

Toward Elimination of Occupational Accidents

take hardware/software countermeasures (residual risk management), prioritizing the most dangerous risks.
Also, the head of the workplace has conducted work observations and reviewed the results of RA.

In FY 2021, seven occupational accidents occurred (previous fiscal year: 11 accidents), and the total frequency rate was 0.90 (previous
fiscal year: 0.93). Most accidents were caused due to non-routine work. The number of lost-time injuries was one (previous fiscal year:
three). This injury was caused due to a rear-end collision with a following vehicle while traveling by car.

Improvement of Working Environment
We conduct working environment measurements based on laws and regulations, targeting workplaces that handle chemical substances
and workplaces subject to significant dust pollution and severe noise. Plants and workplaces that have been classified in the second or
third management category are especially encouraged to implement effective solutions so that they can be reclassified in the firstmanagement category.
We also take measures to prevent cases of heat stroke in the summer by measuring the humidity and temperature in hot workplaces,
encouraging an adequate intake of water and salt, providing cooling gear and the like.
In our offices, we appropriately control the level of lighting, temperature and humidity to ensure that the environment is suited to thework. In winter, we install humidifiers to help prevent the spread of colds and influenza. For COVID-19 as well, we take preventive
measures against infection by issuing internal notices in accordance with the guidelines of the Ministry of Health, Labour and Welfare.

Frequency Rate of Injuries

Enhancement of Education, Training and Enlightenment* Our calculation of lost-time injuries frequency rate was reviewed by Japan Quality Assurance Organization (JQA) and we received thefollowing verification report.

We conducted a variety of educational and training activities with the aim of building a safety culture from the view point of "people,"
Independent Verification Report"products" and "systems". Not only to prevent the recurrence of injuries, but to prevent them from occurring.

910KB

Stratified training
The program is implemented for new employees, third year, tenth year, managers, section managers and supervisors, and is being

Procedures for Reporting Industrial Accidents, etc.

rolled out progressively to domestic group companies.

Upon the occurrence of an industrial accident, the workplace promptly reports this fact and prepares a preliminary report on theSpecialized training

accident. In addition, the workplace conducts a fact-finding survey and prepares an accident witness report featuring permanent
We are working to prevent industrial accidents by enhancing specialized training on chemical substances, dust, noise, and the like.

measures that could be taken to prevent a recurrence.
The preliminary report and the accident witness report are distributed to all employees of the NGK SPARK PLUG Group. In this way, we
are raising awareness and taking measures to prevent similar accidents from occurring in the future.

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Data

Health Promotion Activities

Training with hazard simulation machine
The use of hazard simulation machines, which are designed for simulations of accidents that may occur in a workplace, such as being
pinched or entangled, allows trainees to experience the fear of having an accident, which is difficult to describe in words. Trainees canHealth and Productivity Management

also learn how to avoid accidents.
In addition to 29 types of hazard simulation machines, two types of machines to check the wearing of protective equipment are available.

NGK SPARK PLUG regards the health of employees as one of its important managerial resources for sustainable corporate growthand is fostering the health of individual employees for “health and productivity management.” In December 2017, we made adeclaration on health and productivity management as the entire NGK SPARK PLUG Group and are implementing preventive andother measures against lifestyle-related diseases, mental disorders and passive smoking to proactively support the health of
employees.
Thanks to the evaluation with respect to our activities, we have been certified as an “Outstanding Health & Productivity Management
Organization” sponsored by the Ministry of Economy, Trade and Industry, and Nippon Kenko Kaigi.
In recognition of these efforts, we have been selected as one of the 50 enterprises under the Health & Productivity Stock Selection,a program jointly sponsored by the Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange.
In addition, we have been certified as one of the Health & Productivity Management Outstanding Organizations (Large Enterprise

Hazard simulation training︓
VR (virtual reality) + simulation machines

Category) under a program jointly sponsored by the Ministry of Economy, Trade and Industry and Nippon Kenko Kaigi, for the sixth
consecutive year since 2017, and in 2022, we were even recognized as one of the "White 500" top-ranking enterprises.

Health and safety, environment exhibition
With the work style reform, we held the exhibition online. Efforts and case studies related tohealth and safety, environment are

introduced to foster employees who will act on their own.

Health and Safety Guidelines
All employees are given this book, and it is read together in each workplace, leading to safe behavior for each employee.
In response to diversification, the book is translated into English and Portuguese. A web version is also available.

Health and safety committee activities for rule complianceDeclaration on health and productivity management

We conduct activities that comply with the rules to create safe and secure workplaces
and employees. To prevent walking related injuries with a focus on “Po・Ke・Te・Na・

Ⅰ．The NGK SPARK PLUG CO., LTD. Group declares that we will support the health of each and every employee andShi” awareness. In particular, we are promoting pointing and calling.

promote Kenkokeiei （Health and productivity） by viewing the health of our employees as one of the most importantmanagement resources in order to realize sustainable growth.

Managers and supervisors on the workplace also carry out workplace patrols, risk

Ⅱ．We will respect the diversity and individuality of each employee and promote the creation of a workplace in which eachprediction and share examples of Hiyari-Hatto (near misses), acting as the leaders of

employee can fully demonstrate his or her abilities as well as work energetically.

workplace health and safety management.

Ⅲ．We will work together with the labor and health insurance unions to actively engage in health promotion activities that
include employees’ families from a long-term perspective.
Takeshi Kawai
President & Chief Operating Officer" Po・Ke・Te・Na・Shi " awareness poster

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Data

Prevention of Lifestyle-Related Diseases

Priority Measures
1) Prevention of lifestyle-related diseases
・Review of diet and exercise habits

To prevent lifestyle-related diseases regular health checks are essential.

・Follow up on those requiring special attention

To help employees maintain and promote their health, we task industrial physicians, medical doctors and nurses with following up

・Group education and activities

with employees who have been found to have problems as a result of undergoing health checkups. Such employees are also2) Mental health・Prevention through self-carereferred to appropriate medical institutions as needed. Moreover, we provide employees with a smartphone app, which is linked with・Subordinate care enhancement

the internal health management system, and employees are using the various functions of the app to promote their health.

・Work environment improvement
3) Secondhand smoke prevention
・Promote quitting smoking
・Prevent secondhand smoke

Enhancing Mental Healthcare*Kenkokeiei is a registered trademark of NPO Kenkokeiei.
We are working on in-house and external Line-Care educational programs for
managers and implementing to read the Self-care handbook in our workplace to makeour employee prevent awareness of disease and self-management of health.

Also, we carry out stress checks to analyze the impact of work environments on
employees. Based on the results, we provide them with a safe and comfortableworkplace and prevent employees from suffering mental disorders due to stress.
The Self-Care Handbook

Prevention of Passive Smoking
NGK SPARK PLUG has declared that it will totally ban smoking on the premises of all its sites in and after April 2023. Toward thisgoal we have been gradually limiting smoking hours as well as giving support to those who want to quit smoking, such as byreferring them to smoking cessation clinics. Some business sites are moving ahead with implementing a total smoking ban on theirpremises.

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Quality

Initiative to Prevent Infectious Diseases
To protect employees from the seasonal influenza every year, we strive to prevent the spread of infection. Particularly regarding
group infection at workplaces, which may affect our daily operations, we are ready to cooperate with the relevant divisions to

Quality Policy

implement immediate and intensive measures. During the flu season, we issue weekly reports so that all employees can share theinformation and take effective countermeasures.

We continue to cocreate value with customers and contribute to society in accordance with basic traits of "Quality Product" &In addition, we are continuing to gather information on new infectious diseases (novel influenza, novel coronavirus, etc.). We"Involvement by all".

stockpile facial masks, disinfectants, and other countermeasures, and have formulated infection prevention measures andguidelines for dealing with infections in the workplace to ensure that all employees are aware of them.

Action Guidelines
・We constantly consider what we should do to please our customers with our products and services, with a view to increasing ourorganizational capability.
・We are engaged in quality improvement activities across the company and encourage our employees to achieve higher goals bymaking the best use of their individual abilities and creativity and uniting their wisdom to address problems and challenging

Efforts by NGK SPARK PLUG CO., LTD. Health Insurance Society

issues.

Working together with the company and the labor union, the health insurance society provides a wide variety of programs to support
the mental and physical good health of member workers and their families.

Promoting Total Quality Management

Specifically, health management and disease prevention efforts conducted by the health insurance society include: metabolic
syndrome improvement / prevention programs; subsidies for flu vaccination; and other health management promotion programs
such as walking tours. As an employer, we also promote collaborative health by providing support for specific health guidance and

NGK SPARK PLUG CO., LTD. is working to share and practice the concepts of TQM (Total Quality Management) in order togynecological checkups, etc.

become a group company that creates value for all stakeholders and has a system that can respond flexibly and swiftly to change.

In recognition of these efforts, the NGK SPARK PLUG CO., LTD. Health Insurance Society was selected as one of the 2022

Based on our CSR Policy, we have updated NGK SPARK PLUG CO., LTD.’s Corporate Quality Rules and identified the following

Certified Health & Productivity Management Outstanding Organizations (Small and Medium-Sized Enterprise Category) under afive areas as the mainstays of total quality management (TQM).

program jointly sponsored by the Ministry of Economy, Trade and Industry and Nippon Kenko Kaigi.

1）Quality assurance
In order to provide products and services that meet the needs of our customers and society, NGK SPARK PLUG CO., LTD. will
establish all operations and guarantee their safety and reliability and promote development activities aimed at creating new value.

2）Daily management
NGK SPARK PLUG CO., LTD. will consider methods and indicators to measure the quality of all our operations and promptly
investigate the causes when results that differ from normal are obtained as well as taking countermeasures to maintain and improve
quality.

3）Policy management
NGK SPARK PLUG CO., LTD. will further improve and innovate activities to maintain and enhance quality. We will establish
strategies and objectives for creating new value for customers and responding to the evolving internal and external businessenvironment and explicitly identify issues and problems that need to be tackled as we work towards achieving our strategies andobjectives.

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Data

Quality Management System

4）Small group improvement activities
NGK SPARK PLUG CO., LTD. will use small group teams to solve the various issues and problems identified through daily

To continue providing products and services that meet customer needs, the "Quality Management System (QMS)" is essential. The

management and policy management, thereby developing human resources.

QMS helps us promote systems that differentiates our business and improve our organizational structure as well as acquiring ISO
9001 certification.

5）Quality control education

For medical device products, we are working to obtain ISO 13485 certification, an international standard for the medical device
industry, by developing the systems and conducting internal audits, focusing on compliance with applicable laws and regulations.

NGK SPARK PLUG CO., LTD. will create the understanding and awareness of the mainstays of TQM, which are the prerequisites
for maintaining and enhancing quality and activating improvements and innovation and then establish and implement a gradespecific education system.

Small Group Improvement Activities
Promotion System

As part of our small group improvement activities, we are developing QC circle activities as "NQC Activities." (N denotes an initialletter of Nittoku).

We have established a Quality Committee to promote quality management, chaired by the officer in charge of the Quality

NQC activities organize teams according to the problems and challenges at hand, with activities aimed at solving and achieving

Management Division, who is the chief executive in charge of quality management.

them. In addition to making tangible and intangible contributions to management, they also contribute to fostering employees.

The Quality Committee formulates and issues policies and guidelines to optimize our functions from a company-wide perspective.

The level of our activities has improved, with a gold medal at the All-Japan QC Circle Competition and the QC Circle Kaoru Ishikawa

The Quality Assurance Conference is responsible for raising the level of quality assurance by sharing, discussing the causes ofAward.

quality defects and promoting countermeasures.

In addition, we are introducing the NQC Station, an IT tool for interactive communication, in order to strengthen NQC activities. We
have systematized the proceedings of our activities and made it easy to understand the situation at hand. A portal site function has
also been provided to enable circle members to obtain useful information and materials for their activities at any time.

Quality Control Education
To improve our employee’s quality control and foster employees capable of creating products and services that meet the needs ofour customers and society, a variety of training is conducted related to quality control based on the concept of "manufacturing isfostering people".
Beginning with training for engineers to acquire practical skills in product realization concepts and procedures and quality control
methods, as well as periodic training sessions, depending on the type of job and level of responsibility. Also, to improve throughcontinuous upgrading of knowledge and practical skills required to maintain and improve quality. Aiming to improve the overall
quality of the product.
We also offer our suppliers quality training and practical support for problem-solving so that they provide us with consistently highquality parts and materials based on continuous quality improvement.

Promotion System

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Proper Procurement

Awareness through Quality Activity Events
We hold quality activity events during Japan’s Quality Month in November, and also throughout the year.

Procurement Policy

Past quality exhibitions were held at our sites, but in consideration of preventative measures against COVID-19 and for convenience
we have changed to holding exhibitions online.
We share our approaches to quality as well as the diverse quality-related initiatives in workplaces in order to maintain and improve

We aim to realize globally optimal procurement based on our quality products principle. To this end, we focus on strengthening

quality awareness.

cooperation with suppliers and promoting our CSR and sustainability efforts throughout our supply chain system, while at the same time

We also promote activities to maintain and enhance quality while engaging all employees through quality slogans and a range ofstriving to carry out proper purchasing transactions when procuring materials and parts, based on the following guidelines:

other events.

Action Guidelines
・We conduct rational transactions based on fair, transparent, and open competition.
・We comply with procurement-related laws and regulations and foster responsible procurement. We select suppliers based oncomprehensive assessment of product quality, technology, prices, deliveries, CSR and sustainability initiatives, and efforts to

Measurement Management

continuously make improvements.
・Aiming to procure more eco-friendly products, we strive to promote our green supplier system.

Appropriate measurement is an essential part of manufacturing. In order to obtain reliable measurements, it is important that・We enhance mutual trust with our suppliers, who are good partners for us, and strive to realize mutual development.

employees involved in manufacturing know the correct measurement techniques and proper measurement management.
Therefore, we are strengthening our quality assurance system by nurturing human resources who understand the importance ofmeasurement management and have correct measurement techniques, managing the accuracy of measuring instruments, andPromoting Responsible Procurement

improving the measurement management system to improve and stabilize accuracy.

Taking seriously the recent social and environmental issues related to our supply chain, we are promoting responsible procurement
activities that not only comply with various laws and regulations, such as the Subcontracting Act, but also give due consideration tohuman rights and the environment. By responding to expectations from society in cooperation with our diverse suppliers across the
supply chain, we contribute to the realization of a sustainable society.

Monozukuri (Manufacturing) Education

Promoting CSR and sustainability procurement

To help trainees, acquire the necessary knowledge and skills at the right time, theMonozukuri Education and Training Center has a curriculum that covers the topics of

To foster CSR and sustainability measures across the supply chain, we issued our CSR and Sustainability Procurement Guidelines andsafety, quality, maintenance, and improvement. We provide pre-assignment training,

have been distributing copies to suppliers.

for new employees, that places "discipline" as the foundation of training, in order tocultivate human resources that become socially responsible, follow procedures, andplace importance on quality.
Safety training is conducted with zero industrial accidents in mind, with the guideline of"cultivating employees who can think and anticipate danger by honing their sensitivity

Monozukuri Education and Training

before they act". We are working to improve the content of our education and training
by introducing virtual reality (VR) and incorporating hands-on training to give
employees more realistic experience of accidents such as falls and other accidents.
We are striving to provide valuable education while being flexible. We responded to
the COVID-19 pandemic by introducing web-based lectures and other methods.

VR experience

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CSR and Sustainability Procurement Guidelines

Green Suppliers

The CSR and Sustainability Procurement Guidelines set the rules that our suppliers are requested to comply with concerning theWe certify suppliers that meet our system and material standards prescribed in “Green Procurement Guidelines” as "green suppliers,"

environment, human rights and labor, business continuity planning (BCP), business ethics, information security, occupational health andand give priority to these in purchasing.

safety, product quality and safety, and management systems. We ask our suppliers to put them into practice together with the NGK

As of fiscal 2020, we have certified 104 suppliers involved in facilities/jigs and tools, building/incidental facilities, and 153 suppliers

SPARK PLUG Group. We also ask our suppliers to distribute copies of the Guidelines to their own suppliers.

involved in raw/subsidiary materials, parts, processing and outsourcing.

To monitor the status of implementation by the suppliers, we conduct surveys every two years using a check list and provide feedbackon the results. For the survey we conducted in fiscal 2019, we received responses from 98% of the subject suppliers. For some
suppliers, we held interviews with management and provided other follow-ups, thereby asking for improvement.
English version: CSR and Sustainability
Procurement Guidelines

465KB

Japanese version: CSR and Sustainability
Procurement Guidelines

701KB

Measures against conflict minerals
Ensuring green procurement
There are concerns that some mineral resources mined in the Democratic Republic of the Congo and surrounding countries provide a
In order to reduce our environmental impact throughout the supply chain, we issued the Green Procurement Guidelines to request thatsource of funding to local armed forces, thereby promoting conflicts and infringements of human rights. This issue of conflict minerals is

suppliers build environmental management systems and ensure the strict management of environmentally hazardous substances.

recognized as a serious social issue in relation to the procurement of resources and materials.
Accordingly, we annually conduct surveys on the use of conflict minerals targeting the upstream section of our supply chain and avoid
the use of any with related risks.

Green Procurement Guidelines

Measures to respect human rights
These guidelines explain the basic concepts of our green procurement based on our environmental policies. We reviewed the list of
related chemical substances in July 2021 and released version 11.01 of the guidelines. We ask our suppliers to study the guidelines and

To ensure respect for human rights of all people who are related to our suppliers and their suppliers, we have specified prohibitedcooperate with our green procurement.

actions regarding human rights in the CSR and Sustainability Procurement Guidelines, and we check the status of compliance of our
suppliers on a regular basis.

Japanese version: Green Procurement Guidelines

1.51MB

Measures to tackle climate change
survey sheet
To foster measures across the supply chain, including our suppliers, toward achieving “carbon neutral,” the CSR and Sustainability
Procurement Guidelines require suppliers to set targets for reduction of greenhouse gas emissions and promote efforts for reduction.

Japanese version: appendix table-1 Survey regarding thepresence or absence of "substances of environmental
concern"

Japanese version: appendix table-2 Non-use Declarations

27KB

29KB

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Data

Social Contribution

Activities to Support Suppliers
By conducting activities to help suppliers enhance their business foundation and engaging in follow-up activities after our regular
evaluation of them, we make joint efforts for improvement with suppliers, thereby building greater trust.

Social Contribution Policy

Activities to help suppliers enhance their business foundation (through classroom seminars and practicalseminars held on-site)

As a good corporate citizen, we at the NGK SPARK PLUG Group aim to contribute to society through the effective use of management
resources.

For suppliers, we organize classroom seminars on themes such as process improvement, QC, occupational health & safety and theAction Guidelines

environment and also hold practical seminars at their own manufacturing facilities to foster improvements. We have been conducting
these activities to help suppliers develop their workers in order to build a more robust business foundation. In FY2020, we held a total of
24 such seminars, including online seminars that we newly introduced. We are thus implementing our “Quality Product” policy and●We focus on the following activities:

improving our manufacturing abilities in cooperation with suppliers.

・Activities closely related to our business fields
・Activities that respect the cultures of individual countries and local communities, as well as activities that contribute to society such as
traffic safety education programs

Follow-up activities conducted after the regular evaluation of suppliers

・Activities that contribute to the future of society, focusing on environmental conservation, science, and education (in particular thedevelopment of next-generation human resources), as well as cultures to be bequeathed to the next generation, etc.

We annually conduct evaluation on some suppliers and inform them of the results. For suppliers that require follow-up activities, we visit●We strive to create a corporate culture that encourages executives and employees to participate together in social contribution

them to provide targeted advice and inspect their sites in order to work with them in thinking about how to rectify any weak points. We

activities as social citizens. We also respect and support their active involvement in society.

also award suppliers who have been evaluated as excellent.

Declaration of Partnership Building
Cultural Activities

In support of the Declaration of Partnership Building established by the Council on

Sports Activities

Promoting Partnership Building for Cultivating the Future*, we have released our own
declaration. We are committed to promoting the coexistence and co-prosperity of theentire supply chain, building new partnerships regardless of the size of business andWith the naming rights for the

We will contribute to local

beyond the boundaries of business affiliations, and ensuring compliance with the

NTK Hall, we will further

communities by supporting“promotion standards.” At the same time, we implement proper purchasing transactions incontribute to the cultural

Sports Activities.

accordance with the Procurement Policy.

promotion and the regional
activities.

* The members are the Chairman of the Japan Business Federation (KEIDANREN), the Chairman of theJapan Chamber of Commerce and Industry, the President of the Japanese Trade Union Confederation

View details(RENGO), and relevant Ministers (Cabinet Office, Ministry of Economy, Trade and Industry, Ministry of
Health, Labour and Welfare, Ministry of Agriculture, Forestry and Fisheries, and Ministry of Land,
Infrastructure, Transport and Tourism).

Declaration of Partnership Building (Japanese only)

147KB

Helpline for Suppliers
We have opened a Helpline as the contact point for suppliers to report any violation by managers or employees of the NGK SPARKPLUG Group.
Details are provided in the pamphlet distributed to the suppliers.

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View details

Environment

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Society

Governance

Cultural Activities

Data

Respecting Connections with Local Communities
From 2013，we have been holding family musical events every year as our company sponsored event. We have invited a total of
3,500 people including families affected by the Great East Japan Earthquake, as well as general visitors, local elementary school

We have established our “Social Contribution Policy” as part of our CSR basic policy, and as a responsible corporate citizen we arechildren, kindergarten children, and children from welfare facilities in Aichi Prefecture.

engaged in various activities such as culture and welfare promotion.

Our company is an NTK-Hall Naming Rights Partner

About Naming Rights
Previous Name

New Name

Nagoya Citizens' Auditorium

NTK HallLarge HallFOREST HALL

Medium HallVILLAGE HALL

Passage to subway station

NTK Hall Passage

We renamed the Large Hall and Medium Hall of the NTK Hall “FOREST HALL” and “VILLAGE HALL,” respectively. We selected
these names because our company is a member of the Morimura Group and we wanted the NTK Hall to serve effectively as a “mori(forest)” or “mura (village)” for nurturing rich culture and arts.

Our thoughts to the NTK HallNTK Hall web site

Since our foundation in 1936, our headquarters has been located in Nagoya City, and we have been engaged in various activities on
the basis of our corporate code of conduct which is "As a good responsible corporate citizen, we actively participate in philanthropic
activities and other social action programs. "NTK Hall is a traditional and prestigious cultural building representative of Nagoya. It ispopular as a meeting point for cultural exchange. We would like to contribute to the further promotion of culture and arts, as well as
regional revitalization through the NTK-Hall naming rights.

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Environment

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Society

GovernanceSports Activities

Data

Contributing to the Development of Motor Sports
We Show Our Support at Motorsport Events, often also in the Form of Booth exhibitions.

We conduct a wide variety of cultural and sports activities for the benefit of the local community as a good corporate citizen in
Our main products, NGK SPARK PLUG, are important components that determine theaccordance with the "social contribution policy" that we established as part of our CSR basic policy.

performance of engines. We have provided high-quality spark plugs for motor sports
for many years.
Furthermore, in the NGK SPARK PLUG Cup (the last race in Suzuka Sunday Road
Race), of which we are a proud sponsor, many ambitious riders from beginners to

Supporting Local Sports as a Top Partner of FC GIFU

professionals test their skill, aiming to join the All Japan Road Race Championship the top race in the country. This event is a gateway to success for riders aiming to be
the best in the world.

Our Expectations for FC GIFU

As the people behind the top brand of spark plugs, we will continue to support these

NGK SPARK PLUG has three group companies in Gifu, an important region in terms

motorsport-related events. Beyond this, we will also contribute to the reliability andof manufacturing. Based in Gifu Prefecture, FC GIFU actively promotes sociallydevelopment of the motorized society.

beneficial activities under the theme of "a team for the citizens of Gifu Prefecture." Weshare this spirit of contribution and seek to foster a prosperous community throughsports as a sponsor of the team. All of our employees, including employees of groupcompanies, are vocal supporters of FC GIFU.

Contributing to the Vitality of Local Regions through Marathon Festivals.
FC GIFU Website
As we wish to contribute to the vitality of local regions, we also support regional
marathon festivals. Of particular note is the Marathon Festival Nagoya-Aichi. We have

On July 3rd, 2016, we named the 21st game of the season as the "NGK SPARK PLUG thank you match"and 1,000 of our employees (and members of their families) came and enjoyed the occasion.

supported this event since 2015 and to further develop our theme of "promoting
women's activities," we will continue to show our commitment through our idea of"supporting women who challenge their best."
・Marathon Festival Nagoya-Aichi
・Komaki City Marathon

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IndexEnvironment

Society

GovernanceCommunication to Stakeholders

Data

Organization of briefings on our technologies for institutional investors and securities analysts
We host a technology orientation for investors and analysts to gain a deeper understanding of our technologies. We also invite themto see the actual manufacturing process.

Information Disclosure Policy

Organization of briefings on the company for personal investors

Aiming to become an enterprise capable of receiving great support and popularity from people around the world, we strive to
conduct transparent business operations and fair information disclosure.

We hold briefings for investors in major cities across the country, and strive to provide the information that investors are looking forin an easy-to-understand manner.

Action Guidelines

Investor Relations

・We disclose any corporate information required to be disclosed by the Financial Instruments and Exchange Act and other laws
and regulations, in an accurate and timely manner.
・We actively disclose our corporate information, which is not subject to laws and regulations however deemed to be important for
stakeholders, through our daily actions, such as issuance of press releases and updates of our website.
・We focus on enhancing communication with our shareholders, investors, and other stakeholders to further promote mutual

Communication with Customers

understanding with them.

We offer information meaningful to customers at our website and through exhibitions so that they can purchase and use our

Communication with Shareholders and Investors

products and services with peace of mind.

We disclose information in compliance with the law and also disclose information promptly via the media and at our website.

Sending Information on Website“NGK SPARKPLUGS PLUG STUDIO” is a website that disseminates detailed information about our products including NGK spark

Holding of the Annual Ordinary General Shareholders’ Meetingplugs. Customers can also search for the part number that matches their vehicle and model. The website also features information
on motor sports, primarily teams supported by NGK SPARK PLUG CO., LTD. as well as upcoming exhibitions and events.

We hold an annual Ordinary General Shareholders' meeting in June every year.

We have set up an official Facebook account for NGK SPARK PLUG CO., LTD. to further inform more customers of the NGK spark

We send out the notice of convocation for our Ordinary General Shareholders’ Meeting even earlier than the legal deadline so thatplug brand.

shareholders can give adequate consideration to the reports and resolutions. Additionally, we try to carry out earlier disclosure by
releasing the information on the company website before sending out of the notice. We also translate part of the notice ofNGK SPARK PLUGS PLUG STUDIO

convocation into English for overseas shareholders and post it on the company website in parallel with the Japanese version.

Facebook NGK SPARK PLUGS＜Official＞

Furthermore, we are striving to create a suitable environment for the exercise of shareholders’ rights, including making it possible to
Instagram NGK SPARK PLUGS＜Official＞

exercise rights from a PC or a mobile phone in addition to the exercise of rights in writing. Also, the meeting was later posted on thiswebsite for a certain period of time.

We launched the "NTK Cutting Tools" site specifically for NTK cutting tools. It provides easy-to-understand information such as

Dialogue with institutional investors and securities analysts

videos related to cutting, a cutting tool search system that allows for searching by application and shape, along with the latest event
information.

We hold various dialogues with internal and external institutional investors and analysts in a variety of formats. These include
quarterly financial results briefings, conference calls, individual interviews, and individual teleconferences, to explain our financial

NTK Cutting tools

and non-financial situations in detail, in order to gain an accurate understanding of our situation.

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Governance

Data

Exhibitions and Events

Communication with Local Communities

We make sure to have PR booths at exhibits and motor sports events.

We respect the local culture and customs at each of our bases located across the world and work for smooth communication with

These provide valuable opportunities that allow us to meet with customers and explain our products and technologies directly, andlocal communities. We also participate in various social contribution activities to help create a comfortable society as a corporate

we also use these opportunities to identify constantly evolving needs.

citizen.

Responding to Product Defects

Social meetings on the environment

We make it a rule that any product defect we have detected and found to possibly cause harm to customers be immediately

We host environmental meetings with local residents as a venue for communication. At these meetings, we explain our daily

announced to the public through our websites, newspapers, trade journals and other media as appropriate and that weenvironmental activities as well as hear opinions and comments from participants on how we can further improve things.

simultaneously implement countermeasures against such defects to protect all users.

Local cleanup activity
We regularly hold clean-up activities in the areas near the offices to preserve the local environment. We also continue to participate
in beautifying activities hosted by local municipalities, etc.

Communication with Suppliers
We are working to build relationships of trust with suppliers as their sound partner and achieve growth together. To this end we
conduct activities across the supply chain, such as holding briefing sessions on our corporate policies.

Organization of briefings on the corporate principles
We hold a corporate policy conference with our main suppliers, offering them an opportunity to deepen their understanding of the
Cleanup activities (Komaki Plant)present situation of our company and our goals. We introduce our business results, the company’s policy, and the policies of eachdepartment which are based on the basic policy, procurement policy and initiatives, and request implementation to enhance quality

CSR and Sustainability Initiatives

and promote CSR and Sustainability initiatives.
Proper Procurement

50

Cleanup activities (SparkTec WKS CO., LTD.)

Environment

Index

Society

GovernanceCorporate Governance

Data

Board of Directors
The Board of Directors comprises eleven members (of which seven are outside directors), which in principle meets regularly once
every month and holds ad hoc meetings when necessary.

Basic Philosophy

The Board of Directors deliberates and makes decisions on matters specified in laws and regulations and other importantmanagement issues, receives reports from each member and supervises the status of business execution. A majority of

Guided by our corporate philosophy under the slogan “With established trust and confidence inside and outside the company, we

independent outside directors are appointed in order to strengthen the supervisory functions of the Board of Directors and secure

aim to contribute to the peoples of the world by creating and putting at their disposal new values for the future”, we havetransparency of management.

established, and are working to enhance, our corporate governance system to promote management aimed at increasing ourcorporate value over the medium to long term. Our basic view on corporate governance is to build relationships of trust with our＜Views on Balance and Diversity of Knowledge, Experience, and Skills within and Size of the Board of Directors as a Whole＞

shareholders, customers, business partners, employees, local communities, and other stakeholders through management that

The Company’s Board of Directors believes that it is important for the Board to comprise diverse human resources with different

ensures fairness and a high degree of transparency, and to develop and operate management framework and internal control

backgrounds, including specialized knowledge and experience, in order to achieve sustainable growth and increases in corporate

system to achieve sustainable growth through efficient and sound management.
Corporate Governance Reportvalue over the medium to long term. The Board is made up of human resources with extensive experience, high levels ofknowledge, and advanced specialization, with consideration given to gender, nationality, work experience, and age, to achieve a

946KB

good balance according to the business environment at a given time.
In addition, by making up the majority of the Board of Directors with outside directors who have experience and specialized
knowledge agained under environments that differ from the Company, the Board can strengthen its supervisory function and engage

Corporate Governance System

in deliberations from various perspectives in an effort to ensure transparency and objectivity in decision making.
Director candidates are not excluded from consideration on the basis of their race, ethnicity, nationality, country of birth, cultural
background, etc.

The Company has selected a company with an Audit and Supervisory Committee for the purpose of further enhancing discussions
on management policies and strategies at the Board of Directors, strengthening the supervisory function, and further speeding up
management decision-making and execution of business. Each organization is set up within the framework of a company with an
Audit and Supervisory Committee.
* With the resolution of the 122nd Ordinary General Meeting of Shareholders (held on June 24, 2022), the Company has
transitioned to a company with an Audit and supervisory committee.

Corporate Governance System

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Environment

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Governance

Data＜Skill Matrix of Directors＞*1︓Basic areas from the perspective of important management decision decision-making and business execution supervision

Based on the above views, considering the business and management system of the Group, the Board of Directors identified the*2︓Areas that need to be particularly promoted and supervised to realize the mediummedium-term management planknowledge and experience which it should possess from “Basic areas from the perspective of important management decision-*3︓The skill matrix above shows the areas of expertise particularly expected for each director / audit and supervisory board member, and does not

making and business execution supervision” and “Areas that need to be particularly promoted and supervised to realize theindicate all of the knowledge and experience held by each director / audit and supervisory board member.

medium-term management plan”. According to this, Directors are assigned in well-balanced manner with consideration for diversity.
Board of Directors

Name

ShinichiTakeshi

Odo

Kawai
Representative
Director andRepresentative

President

Toru Matsui

Chairman of
the Board

Chief
Operating
Officer

Otaki

DonaldClugston

MiwakoChiharu

Doi

Takakura

Representative

Audit and Supervisory Committee
Mikihiko Kanemaru
Kato

Director

Director

Director andPosition

Morihiko

Mackenzie

OutsideOutsideOutsideOutsideDirector

Director

Director

Director

Executive Vice

Full-time
Audit andSupervisory

President

Committee
MemberGender/Nationality

Male

Male

Male

Male

●

Independence

Male/Foreign
nationality●

FemaleFemale

●

●

Male

Yasui

FumikoNagatomi Ahmadjian

OutsideOutsideOutsideDirector

Director

Director

Audit and

Audit and

Audit andSupervisory

Supervisory

Supervisory

Committee

Committee

Committee

MemberMemberMemberMale

Female●●2 Years

6 Years

Total Service of Years（Of these,（Of these,（At the end of the

1 year in

5 years in

next general meeting

16 Years

8 Years

5 Years

10 Years 4 Years

3 Years office as an 6 Yearsof shareholders）〇

Management

〇

〇

〇

〇

〇

Global Experience

〇

〇

〇

Sales/Marketing

information with other members to ensure the effectiveness of organizational audits. The Audit and Supervisory Committee also
confirms the appropriateness and suitability of the nominations and remuneration of directors (excluding directors who are Audit andSupervisory Committee members) by attending Nomination Committee and Remuneration Committee meetings and receiving

Female/Foreign

explanations from the representative directors and forms opinions on these matters.

nationality●＜Establishment of the Audit and Supervisory Committee Office＞
To support the execution of duties by the Audit and Supervisory Committee, the Audit and Supervisory Committee Office wasestablished, and four employees were assigned to the office full-time. These employees receive instruction from the Audit and1 Years

Supervisory Committee members, liaise and coordinate internally, and gather and provide the necessary information. The Audit andauditor）

auditor）

Supervisory Committee Office works under the supervision and direction of the Audit and Supervisory Committee and their〇〇Company, and monitoring and verifying the establishment and operation of internal control systems on a daily basis and share suchcorporate〇〇

Technology/R & D

Committee members are selected from the perspective of maintaining the audit environment, gathering information from within thecorporate〇〇

entrusted by the shareholders, audits and supervises the execution of business by the directors. Full-time Audit and Supervisory

outside〇Risk management *1

9 Years office as an

The Audit and Supervisory Committee comprises four members (of which three are outside members) and as an independent bodyoutsideFinance/Accounting
Governance/Legal/

Christina L.

〇

independence in relation to supervision and direction from directors (excluding directors who are Audit and Supervisory Committee〇

members), corporate officers and employees is ensured. In addition, transfers, personnel evaluations, etc. require the prior consent〇〇

of the Audit and Supervisory Committee.
〇

〇

〇
〇

Nomination Committee〇〇〇

To ensure reasonableness and transparency and conduct efficient and fulfilling discussion with regard to director nomination and

New Business〇

Development/〇〇

determination of remuneration, a Nomination Committee was established as advisory bodies to the Board of Directors.

〇

Based on the Board of Directors’ request for opinion, the Nomination Committee deliberates on matters including proposals on the

M&A
Human Resource〇*2

IT/Digital
Transformation

〇

〇

〇

〇

appointment of directors to be submitted to the General Meeting of Shareholders, the appointment and dismissal of executive〇

officers, the Company’s performance evaluations, and, based on such evaluations, evaluation of the management’s performance,〇

and then delivers its opinions to the Board of Directors.

〇

SCM

In addition, directors who are Audit and Supervisory Committee members also attend a Nomination Committe as observers.

Attendance at Board

12／12

12／12

12／12

12／12

12／12

12／12

10／10

12／12

12／12

11／12

-

100%

100%

100%

100%

100%

100%

100%

100%

100%

91.7%

-

Number of Shares

34,981

17,291

12,067

5,361

Held

sharessharessharessharesof Directors Meetings
in Fiscal 2021
Attendance Rate at
Board of Directors
Meetings in Fiscal
2021

0 shares

1,138

478

11,672

2,474

2,753

sharessharessharessharesshares0 shares52

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Governance

Data

Remuneration Committee

Corporate Officers and Company Presidents Meeting

To ensure reasonableness and transparency and conduct efficient and fulfilling discussion with regard to director nomination and

The Company adopts the Corporate Officer framework, the objective of which is to expedite execution of business operations based

determination of remuneration, a Remuneration Committee was established as advisory bodies to the Board of Directors.

on policies determined by the Board of Directors and clarify responsibilities for the results. The corporate officers are elected by theBased on the Board of Directors’ request for opinions, the Remuneration Committee deliberates on matters related to remuneration

Board of Directors, and meet monthly at Corporate Officers and Company Presidents Meeting to report on the status of businessof directors (excluding directors who are Audit and Supervisory Committee members) and executive officers, including theexecution for cross-divisional sharing and exchange of information.

appropriateness of policies, procedures, and systems, as well as the appropriateness of the proposed remuneration of each director(excluding directors who are Audit and Supervisory Committee members) and executive officer, and delivers its opinions to the

Cooperation among Audit and Supervisory Committee, Independent Auditors and Internal Audit
Departments

Board of Directors.
In addition, directors who are Audit and Supervisory Committee members also attend a Remuneration Committee as observers.

The Company strives to improve the effectiveness of audits by having Audit and Supervisory Committee members attend audits
conducted by the independent auditor and by having the Audit and Supervisory Committee, independent auditor, and Internal Audit

CSR and Sustainability Committee

Department meet regularly and as necessary to exchange information on audit policies, audit plans, audit implementation status,
To ensure sustainable growth for our group and society, we have established the CSR and Sustainability Committee, chaired by anaccounting system revisions, etc. and to work in close collaboration with one another.

outside director, as an advisory committee to the Board of Directors, to identify priority issues in each area of ESG (Environment,

The Audit and Supervisory Committee and Internal Audit Department meet regularly and as necessary to provide direct reports andSociety, and Governance) area and promote actions to resolve these issues.

exchange information on audit policies, audit plans, audit implementation status, and other matters and to work in close
collaboration with one another.

CSR and Sustainability Promotion System

In addition, Audit and Supervisory Committee members attend audits conducted by the Internal Audit Department when necessary,and the Internal Audit Department conducts investigations and makes reports as requested by the Audit and Supervisory
Committee, improving the quality of audits by both bodies.

Members of the Committees
Directors who are Audit and Supervisory

Directors

Name

ShinichiTakeshiToru

Morihiko

Odo

Kawai

Matsui

Otaki

Independence
Nomination Committee
Remunerationcommittee

Committee members
Mackenzie
DonaldClugston

MiwakoChiharu

Mikihiko

Kanemaru

Doi

Takakura

Kato

Yasui

●

●

●

●

FumikoEvaluation of the effectiveness of the Board of Directors

Christina L.

Nagatomi Ahmadjian

●

●

●

〇

〇

〇

〇

〇

〇

〇

Attends the

Attends the

Attends the

Attends themeeting

meeting

meeting

meeting

〇

〇

〇

〇

〇

〇

〇

Attends the

Attends the

Attends the

Attends themeeting

meeting

meeting

meeting

〇

-

-

-

The company conducts an evaluation on the effectiveness of the Board of Directors once a year.
＜１．Method of evaluation＞
Evaluation was conducted by the Board of Directors based on a survey of directors and Audit & Supervisory Board members.
＜２．Overview of evaluation results＞

CSR andSustainability

-

-

〇

-

-

-

〇

We confirmed that the effectiveness of the Board of Directors has been sufficiently secured, and more specifically we haveconfirmed that the effective

Committee

measures are being taken in the following areas:①Skills that the Board of Directors should have in light of management strategies were identified, and we confirmed that the Board

Management Meetingof Directors comprises members who have the knowledge, skills, experience, and diversity necessary to fulfill their roles andresponsibilities.
②All the directors share how important it is to reinforce the supervisory function of the Board of Directors and how outside directors

The Management Meeting, comprising representative directors and some executive officers, was established to make decisions on

should act therein.

and supervise important matters relating to business execution in accordance with the basic management policies determined by③The Board of Directors has established suitable internal controls and risk management structures to ensure proper compliancethe Board of Directors, to discuss and understand in advance management issues to be addressed and risks that the Group is

and support risk taking and supervises the status of operations through the Internal Auditing Office, Compliance Committee, Risk

facing, and to promptly respond to changes in the management environment. The Management Meeting addresses management

Management Committee, and other bodies.

strategy and other important matters relating to overall management and also focuses its deliberations on important human resource④We confirmed that the Board of Directors is cognizant that responses to global environmental issues including climate change andstrategies and measures relating to the assignment and development of human resources as well as significant investments
including capital expenditures, equity contributions, acquisitions, and capital tie-ups.

responses regarding sustainability including respect for human rights are crucial from the perspective of increasing corporate

53

value over the medium to long term and that the management team is actively engaged in responding to these issues.

IndexEnvironment

Society

Governance⑤To ensure that remuneration is set in a manner that provides appropriate incentives, the Remuneration Committee evaluates

Data

Succession Plan

whether the execution of duties by management is appropriate from the perspectives of sustainable growth and enhancement ofcorporate value.

NGK SPARK PLUG’s Board of Directors engages in the formulation and implementation of the succession plan, which includes⑥The Board of Directors implements appropriate improvement measures regarding key issues identified through evaluation of the

programs such as that to develop global managerial human resources (“HAGI Program”), such as future CEOs and other business

effectiveness of the Board of Directors and strives to enhance its effectiveness.

leaders. The members of the Board see to it that sufficient time and resources are committed to developing their successors in aWith regard to “performance of supervisory functions in light of the introduction of a company system,” one of the issues identified

planned manner.

through the evaluation of effectiveness in FY2020, a company system was introduced in April 2021 for the purpose of clarifying the
responsibilities and authority of business execution divisions and facilitating flexible decision making, and based on the opinions ofSpecific involvement by the Board of Directors

the outside directors, the Board of Directors verified whether the expected effects have been achieved and confirmed that it willcontinue to perform periodic verification.

Representative directors as well as outside directors proactively participate in the development of managerial human resources,

With regard to “reinforcement of monitoring functions for non-financial management indicators,” non-financial indicators as indicators

including serving as lecturers for the HAGI Program.

for the performance linked stock compensation program were introduced in FY2021, and the CSR and Sustainability Committee,
which is attended by all directors and Audit & Supervisory Board members, reviewed the status of responses to group priority issues

Details of human resource development for CEO candidates(materiality) and discussed the introduction of an internal carbon tax and environmental fund.
Items for which further improvement of the effectiveness of the Board of Directors would be desirable based on the results of thecurrent effectiveness evaluation include further enhancing deliberation within the Board of Directors regarding medium to long term

We are implementing the HAGI Program and a training program in which internal directors and corporate officers participate. These

management strategies and monitoring of Medium-term Management Plan as well as improvement of the prior distribution ofprograms are designed to develop future CEO candidates in a planned and strategic manner by devoting adequate time andmaterials and provision of explanations to outside directors. Going forward, the company will continue to maintain and enhance theresources to the task.

effectiveness of the Board of Directors by addressing these issues.

Training for officers
Roles and Independence of Outside Directors
We provide the directors with sufficient assistance to fulfill their expected roles and responsibilities where applicable. For the internal
To enhance the supervisory function of the Board of Directors and to ensure the transparency and objectivity of decision-making

directors, we encourage them to take external seminars to acquire additional knowledge to meet their obligations, while the internal

through discussions from multifaceted viewpoints, outside directors make up the majority of the Board of Directors, which comprises

directors and corporate officers are required to attend an executive training session to share the managerial issues and seek out thediverse talent who have abundant experience, tremendous insight and a high degree of professionalism. We appoint all thesolution. In order for the outside directors to deepen understanding of the Group, each department explains the businesses andindependent outside directors as independent officers and notify the Tokyo Stock Exchange and the Nagoya Stock Exchange of

operations in addition to providing them with opportunities to visit major sites of the businesses.Directors who are Audit andtheir appointment. In order to ensure that candidates have neither special relationships with the management team and major

Supervisory Committee members periodically take external sessions to gain understanding of what roles the Audit and Supervisory

shareholders nor conflicts of interest with general shareholders, we designate those who meet all the followings as independent

Committee members fulfill, the audit methods, the relevant laws and regulations, and financial accounting knowledge required for

officers: our own criteria for the appointment of independent officers; the requirement of independent officers set by the Companies

the accounting audit.

Act; and the rules and regulations stipulated by the financial instruments exchanges.
Outside directors attend the Board of Directors meetings and non-statutory advisory bodies to demonstrate their supervisory

Remuneration for Director

function by becoming involved in the important decision-making of the company from an independent standpoint, while providing
advice from an overall perspective based on their abundant experience and insight when formulating and confirming the progress of
medium- to long-term management policies at the Board of Directors meetings. Outside directors who are Audit and Supervisory

Officer remuneration comprises fixed remuneration paid in cash, bonuses linked to the degree of achievement of the Company’s

Committee members serve as a supervisory and auditing function based on their independence and expert knowledge.

performance over the course of a single year and other factors, and performance-linked, stock-based remuneration that isdetermined according to rank and the degree of achievement of performance targets set forth in the Medium-Term Management
Plan and so on.
This structure is intended to raise awareness regarding the contribution to improving corporate performance and maximizing
corporate value over the medium- to long-term and is based on a fundamental policy of officers sharing interests with shareholders
through ownership of Company shares. However, remuneration for director who is an Audit and Supervisory Committee members

54

comprise only fixed remuneration.

IndexEnvironment

Society

Governance

Fixed remuneration

Data

Remuneration and bonus paid to directors and auditors in fiscal 2021

Fixed remuneration is determined holistically according to the position and responsibilities, by taking into account peers’levels, theTotal remuneration by type(million yen)

company performance, and the level of employee salaries, and then paid.

Total remuneration

Number of recipients
Performance-linked,(million yen)Fixed remuneration

Policy on the payment of bonus

Bonus(persons)

stock-based
remuneration

Directors

As for bonuses, in addition to the base amount set for each position, an amount to be decided as follows is paid to each person:

594

365

152

76

7

31

31

-

-

2

Outside directors

57

57

-

-

4

Outside auditors

39

39

-

-

3

(excluding outside directors)

decided comprehensively in consideration of the quantitative targets set for corporate performance such as consolidated revenue

Auditors

and consolidated operating income ratio, which reflect the results of sales activities, and based on the qualitative evaluation of the(except for outside auditors)

individual performance of the person. For FY2021, the numerical targets for consolidated revenue and consolidated operating
income ratio were 492.0 billion yen and 10.2%, while the actual results were 491.7 billion yen and 15.4%.

Performance-linked stock remuneration system*1 The following limits are set on the remuneration paid to directors according to the resolution made at the 117th general meeting ofshareholders held on June 29, 2017.

We introduced the performance-linked stock remuneration for directors (excluding directors who are Audit and Supervisory

Total amount of remuneration(excluding bonus):
Total amount of bonus:

Committee members and outside directors) and corporate officers (excluding employment-type corporate officers) to further clarify
the link between the compensation of directors and the value of the Company’s stock, and to have them share interests with60 million yen or below permonth
180 million yen or below
per yearshareholders, so as to incentivize them to contribute to the improvement of the Company’s medium- to long-term performance andAccording to the resolution made at the 117th general meeting of shareholders, a performance-linked stock remuneration system is

to increasing corporate value. Under the system, the Board Incentive Plan (BIP) is adopted, where points are given to directors

to be implemented for four fiscal years from FY2020, targeting the company’s directors and corporate officers, with the upper limit on

based on their position and the level of achievement against the targets set in the Medium-term Management Plan. Points are

the total payment amount set at 1,000 million yen.

calculated according to the method stipulated in share granting regulations, which were determined by the Board of Directors after*2 The following limits are set on remuneration paid to audit and supervisory Board members according to the resolution made atthe deliberation of the Remuneration Committee. After the end of the period, shares of the company and money in the amountthe 106th general meeting of shareholders held on June 29, 2006.

equivalent to the value of the shares are to be given or granted based on granted points.

Total amount of remuneration(excluding bonus):
Total amount of bonus:

Indicators against which the achievement of the performance targets is assessed are set based on single-year performance goals,
medium-term performance goals, and non-financial measures goals. The single-year performance goals are based on consolidated
revenue and consolidated operating income, which reflect the results of sales activities. The medium-term performance goals are

10 million yen or below permonth
10 million yen or below per
year*3 “Bonus” corresponds to “performance-linked remuneration, etc.”, and “performance-linked, stock-based remuneration, etc.”

based on the targets set in the Medium-term Management Plan, which are consolidated revenue, consolidated operating income,corresponds to “performance-linked remuneration, etc.” and “non-monetary remuneration, etc.” The total amount of “bonuses” andand ROIC, an indicator of whether we have efficiently earned profits relative to invested capital. For non-financial measures goals,“performance-linked, stock-based remuneration” shown in the table was recorded as an expense for FY2021.

sales from non-ICE business and rate of reduction of CO₂ emissions are used as indicators to reflect the results of efforts forsustainable growth and corporate value enhancement, and to facilitate the transformation of our business portfolio.

55

IndexEnvironment

Society

Governance

Data

Risk Management

Stocks Held for Reasons Other than Pure Investment Purposes
Policy on the stocks held for reasons other than pure investment purposes

Risk Management Policy
NGK SPARK PLUG holds the stocks of its suppliers and others basically to maintain and enhance stable business relationships withthem, when the company decides that holding the stocks will help increase its corporate value after verifying the economic

We adapt from a global viewpoint to changes in the management environment surrounding our group and to the diversification ofrationality from medium- to long-term viewpoints. The Board of Directors annually checks whether it is rational and useful in terms ofrisks and will foster risk management to reduce or avoid the loss of managerial resources, thereby improving our corporate value.

enhancing its corporate value to keep the stocks individually for each of the investee companies, in consideration of the capital costand comparing the related risks and returns on a medium- to long-term basis. When the Board decides that the company should not

Action Guidelines

continue to hold any of the stocks, the company will sell them as appropriate, in consideration of the market trend.

・We identify the risks that might hamper the achievement of our management targets from a global and long-term viewpoint andstrive to prevent the actualization of these risks in a planned and organization-based manner.

Criteria for the exercise of voting rights

・In the event that such a risk materializes, we strive to minimize the impact on our stakeholders, maintain their trust and preventthe recurrence of similar incidents.

For the exercise of voting rights for the stocks owned by our company, we will decide whether to exercise the rights for each item of
the agenda, considering whether it will contribute to increasing the corporate value of the investee company and of our own
company. In particular for the selection of directors, appropriation of retained earnings and other items that have a large impact on

Promotion Systemshareholder value, we will exercise the voting rights according to the criteria set for the rights.

For risk management, we have appointed the President as “Chief Administrator” and the Director in charge of the Business

Enhancement of Group GovernanceManagement Dept. as “Promotion Manager”. We are making efforts to improve our risk management system and its operation andcreate one that integrates risk management to prevent risk with crisis management, to handle serious risks when they occur.

NGK SPARK PLUG has corporate officers who were locally recruited at its regional headquarters (RHQs) for the Americas andMoreover, we have established the Risk Management Committee, which is chaired by the corporate officer appointed by the Chief

EMEA in order to ensure that speedy and accurate managerial decisions are made at bases closer to the markets they serve in view

Administrator. This committee regularly makes improvements on the risk management system and monitors its operation. Theof the company’s globally expanding business environment. We have also formed unique governance teams at the RHQs to build

effectiveness of the system has been also regularly reviewed and reported to the CSR and Sustainability Committee for its

an optimal decentralized system on a group-wide basis and enhance corporate governance as the entire Group.

confirmation.

Moreover, the Global Group Governance Division is in place as an organization that audits the effectiveness of the Group’s
CSR and Sustainability Promotion Systemgovernance as an entity that is separate from its business execution. This organization formulates and implements measures tocarry out audits on the management of Group companies and RHQs and on the core business operations of each department. It
also formulates and implements measures to enhance internal control across the Group and thus plays an important role for theenhancement of the Group’s governance.

56IndexEnvironment

Society

Governance

Data

Company-Wide Risk Management

Business Continuity Management (BCM)

In order to identify and limit those risks that could have serious impacts on our business continuity and on the achievement of our

In preparation against possible earthquakes and other large-scale disasters, we are conducting BCM activities. Specifically, we aretargets, we follow the risk management process as described below. We also evaluate the ESG-related risks including thosemaking business continuity plans and working on disaster control and reduction in a group-wide basis to minimize damage in theconcerning climate change and human rights.

event of a large-scale disaster and resume production as soon as possible if operation is suspended, thereby helping customers
maintain their supply chains.
We are also implementing measures against infectious diseases. To deal with COVID-19, we expanded our work at home system
and reviewed work shifts in line, thereby continuing to operate our business while preventing infection. In addition, we will revise thebusiness continuity guidelines for infectious disease threat and establish a system to prepare for future emergencies.

Major initiatives related to business continuity plans (BCPs)
We have made a BCP for each of our departments. Each plan defines the initial response to be made and recovery procedures tobe followed in case of emergency.
<IT departments>
To ensure our business continuity, we are continuously working to minimize the damage that might be caused to our IT systems in
the event of a disaster and speed up the time required for recovery.
Specifically, we aim to minimize the damage by moving

the system to a highly robust data center. Also, to shorten the recovery

time, we are shifting to cloud backups so that we can recover and restart the systems by using undamaged backups, including
domestic group companies. In the future, we will continue to move the system to the cloud and further strengthen our business
continuity.
Moreover, we are regularly providing more specific and practical education and training so that employees can make better
responses in case of a disaster.
<Procurement departments>
We are fostering BCP measures for key procurement items such as materials and parts, including purchasing from multiple
suppliers. In view of the fact that we need a range of materials and parts to manufacture our products, we have built up a system toHandling Crisis

implement BCP measures across the supply chain in cooperation with suppliers.
<Buildings and facilities departments>

If there is an apparent risk that causes a serious impact on business continuity, a crisis response team with the president as the

We are implementing earthquake-resistant measures for our buildings and facilities in preparation for the Nankai Troughchief executive officer is immediately formed to handle the situation. The crisis response team will respond to emergencies by

Earthquake. We have a checklist to ensure if entering the building is possible in the event of an earthquake, and we are promoting

collecting and analyzing information, deciding and instructing countermeasures, and contacting and coordinating with relatedbuilding inspection drills at each site.

organizations.

Once entering the building, the recovery team inspects the infrastructure, ancillary facilities, and equipment according to theprocedures stipulated in the BCP and implements recovery activities according to the priorities.

Moreover, in the event of an important incident, accident, disaster, etc., we have prepared an emergency contact email system thatallows the department in which the incident occurred to notify the officers, the Business Management Office, and related<Business departments>

departments simultaneously.

In the BCP made for each department, we set a limit for the recovery time required for our major products. We also formulate actionplans for the recovery teams to achieve early recovery.

57

Environment

Index

Society

Governance

Data

Information Security<BCP training>
We conduct BCP training every December for the purpose of resuming business as soon as possible in the event of a disaster. BCP
training is designed to improve the effectiveness of BCPs by formulating recovery plans for the major businesses, organizing
recovery teams and implementing recovery activities. To prepare for a situation where our internal network is unavailable, weInformation Security Policy

conduct training on communicating with the emergency headquarters using IP wireless equipment and sharing information via theInternet.

We regard all of our own information assets as one of our management resources. Through the proper protection and effective useof our information assets, we pursue healthy maintenance and development of our business.

Action Guidelines
・We establish rules that clearly define the system and responsibilities for the protection and management of all the information
assets including the information we keep for our customers, the know-how and intellectual properties owned by our group, andpersonal information.
Information transmission training between
sales offices the emergency headquarters

・We comply with laws, ordinances, and regulations regarding information security.

Report session at the emergency headquarters

・We educate all executives and employees who handle information assets about the importance of information security, and about
specific items to be observed.
・We continuously update the information infrastructure for the maintenance and improvement of the confidentiality, integrity, andMajor disaster control and disaster reduction activities

availability of all the information assets.
・We promote measures to prevent accidents in order to address the risks of information leakage associated with the continuous<Implementation of the joint disaster prevention drill>

advancement and sophistication of information technology. Should an accident occur, we will strive to minimize the damage andIn anticipation of a Nankai Trough Megathrust Earthquake, we are implementing the Company-wide Disaster Prevention Drill as atake preventive measures against recurrence.

joint drill for domestic Group companies. The drill includes training for evacuation, confirmation of employees’ safety, incipient stage
firefighting, and inspection of damage caused to facilities and equipment and is designed for early recovery in the event of an
emergency.

Promotion System
The director in charge of the Information System Dept. serves as the Chief Administrator to ensure information security.
We also have our Information Security Committee chaired by the Chief Administrator with an eye to increasing the effectiveness of
our information security management and reducing security risks regarding the NGK SPARK PLUG Group’s information assets
through the concerted effort of the management team and on-site workers.
We also have our Information Security Committee chaired by the Chief Administrator of DX strategy dept. appointed to Chief
Evacuation training (Komaki Plant.)

Information Security Officer and the members are the information security manager of each department.

Evacuation training (Nagoya Plant.)

We hold the Information Committee at least twice a year and we foster appropriate measures by checking how information security
activities are conducted across the Group.

<Measures against storm and flood damage>In addition, information security managers and information security members are assigned to each department to lead information

Recently, climate change has been causing more extensive storm and flood

security activities in each department.

damage. In response, we will work to minimize damage by making disaster-specifictimelines for each of our business locations and checking local hazard maps
annually, etc.
<Raising employees’ awareness of disaster prevention>
In order to enhance the disaster response capabilities of our employees and foster
our business continuity, we distribute to employees copies of the booklet titled “NGK
Spark Plug Disaster Prevention,” which shows the action guidelines to be followed in
the event of a disaster.

Disaster Prevention Booklet, 'NGK Spark Plug
Disaster Prevention'

58

Environment

Index

Society

Governance

Data

Responding to Information Security Incidents
We have established a Computer Security Incident Response Team (CSIRT).
When an incident occurs, the CSIRT promptly organizes and confirms the facts, determines the level of the incident, and thenresponds. We also accumulate and share knowledge as a measure to prevent recurrence.
In addition to responding after an incident occurs, we are also striving to defend in advance, and we are trying to improve the leveland maturity.
In fiscal 2021, in response to the increase in damage caused by cyber attacks around the world, we conducted a comprehensive
inspection of the servers used by our company and group companies. The servers with security concerns were extracted andcountermeasures were taken.
In addition, CSIRT publishes "CSIRT communication" every month to inform employees of the latest information on information
security and to alert them.
When it becomes necessary to call attention with a high degree of urgency, we are working to prevent incidents by issuing a bulletin
Information Security Promotion Systemversion that describes specific precautions.

For confidentiality management, we have a working group on confidentiality management that reports to the Risk Management
Committee. The working group is tasked with identifying and reducing the risks related to the management of confidential

Confidentiality Management

information and protection of personal information.
CSR and Sustainability Promotion System

The working group on confidentiality management annually inspects the company-wide status of confidentiality management basedon the confidentiality management rules set by the company.
Regarding the self-inspection results by each department, the secretariat of the confidentiality management subcommittee
confirms its validity for the enhancement of the checking function.

Information Security Management System

The inspection includes self-inspection by each department and mutual inspection between departments. The inspection items arereviewed according to the broader progress of informatization in society for the enhancement of the checking function.

In order to continuously respond to information security risks that threaten companies and organizations, we have set information

Furthermore, in addition to the rules on the in-house handling of confidential information, we have also established rules on the use

security as a priority issue (materiality) and are building an information security management system.

of confidential information outside the company in order to prevent the leaking of such information, including rules on the use of

As one of them, We are in the process of establishing an information security management system. In 2020, we obtained TISAX

portable computers and cloud services, and we monitor compliance with the rules.

(Trusted Information Security Assessment Exchange) certification, an information security assessment standard for the German
automotive industry supply chain.
In FY2021, group companies in the United States and China also completed the acquisition of TISAX certification.

Protection of Personal Information

Priority Issues (Materiality)

As exemplified by the General Data Protection Regulation (GDPR) enforced in Europe, measures to protect personal information
have been enhanced globally. In response, the NGK SPARK PLUG Group has set a range of internal rules to appropriately protect,manage and handle the personal information of its customers and employees.
In addition, as a response to the revised Personal Information Protection Law that came into effect in April 2022, we pre-assess
risks based on the type and the number of personal information and take measures to reduce the risks.
See the policy regarding the handling of personal information (Privacy Policy) below.
Privacy Policy

59

Environment

Index

Society

GovernanceCompliance

Data

Corporate Ethics Helpline
We have established the Corporate Ethics Helpline as an internal reporting system available to employees and suppliers seeking
consultation and making reports regarding compliance. We have worked to improve user convenience by establishing channels not only

Compliance Policy

inside the company but also via an external expert service provider and enabling employees and suppliers to seek consultation andmake reports also outside work hours and on holidays. This service can be used anonymously.

With recognition that our company is a member of society, we enhance corporate ethics and understand the spirit and meaning of laws,

Regarding consultations and reports received, facts are investigated with discretion so that the reporting employee or supplier is neither

company regulations, international rules, and social norms in order to appropriately meet social demand and become a company trusted

identified nor feels uncomfortable, and if problems are confirmed, they are dealt with promptly.

by the international community.

In FY2021, there were 41 consultations and reports, including those from employees of Group companies and those related to laboraffairs and internal regulations, and we promptly took corrective actions for the identified problems.

Action Guidelines

We are continuously working to make the helpline service widely known by measures such as introducing it in training, putting up related
posters and distributing carrying cards describing the service.

・We not only comply with laws and regulations, but also act in good faith with common sense and responsibility as a member of

Also, we have established channels for consultation and making reports at each of our overseas group companies.

society.
・We regularly educate and raise the awareness of all our employees to impart a high level of ethics and correct knowledge, with which
they can act voluntarily to prevent a violation.
・Should a violation occur, we will promptly investigate the causes and take remedial actions. We will strive to take appropriate
countermeasures to prevent recurrence and fulfill our accountability.

Compliance Promotion System
In order to enhance compliance, we established the Compliance Committee chaired by the Representative Director. This committee
conducts activities to prevent noncompliance issues. It will also give instructions about the measures to be taken in the event of anoncompliance incident and monitor the implementation of the measures. Moreover, it provides compliance education and conducts
awareness-raising activities targeting both executives and employees while also providing related information and raising employees’
Flow after report is received via the Helplinecompliance awareness through designated compliance facilitators at each department.

Compliance Education and Awareness Raising
To raise employees’ awareness and knowledge regarding compliance, we are continuing
to educate them by using the Compliance Guidebook, which summarizes the rules
concerning companies and society, and the Compliance Newsletter, which provides
specific examples of compliance issues that could arise in our daily operations, inaddition to holding level-specific and theme-specific training.
Moreover, in order to check employees’ level of understanding about the corporate rules
and systems and to examine the corporate culture and identify compliance risks, we
conduct a questionnaire survey on compliance targeting employees. In FY2021, we
conducted a questionnaire targeting about 8,800 employees） in the domestic groupcompanies, with a response rate of 83%. In order to promote improvement, the survey

Compliance promotion system

60

results are fed back to each workplace with the interviews to the departments having
tasks.

Compliance Guidebook

IndexEnvironment

Society

GovernanceData

A p p r o p r i a t e Ta x P a y m e n t

Initiatives to Prevent Corruption
We are striving to prevent corruption in line with the statement made in our Corporate Code of Conduct: “We shall promote fair,transparent, free competition and sound trade. We shall also ensure that our relationships and contacts with government agencies andTax Policy

political bodies are of a sound and proper nature.”
We issued the Compliance Guidebook in 2012, in which we set the rules concerning the prevention of corruption, including the

By understanding the spirit and purpose of taxation laws and regulations, we respond appropriately to the demands of society andprohibition of involvement in political contributions or bribery, and made employees aware of these rules.

aim to become a company trusted by the international community.

Subsequently, in 2013, we issued the Conduct Guidelines Concerning the Giving and Receiving of Gifts and Entertainment to raise
employees’ awareness of the issues and prevent them from becoming involved in misconduct. Further, in 2016, we signed the UN

Action Guidelines

Global Compact, openly reaffirming our commitment to preventing corruption. We also confirm that the content and use of charitable
donations do not violate the law.

・We fulfill our social responsibilities by observing laws on corporate taxation and other tax laws in every country, as well as

We are thus working to prevent corruption in line with the guidelines and others. We respond to any violations of the anti-corruption rulesinternational taxation standards including the OECD Transfer Pricing Guidelines, the Action Plan on Base Erosion and Profit

mainly through the Compliance Committee. Our overseas Group companies are also taking action to prevent corruption, especially to

Shifting, and the arm’s length principle of transfer pricing.

prohibit and prevent bribery of civil servants, including providing employees with related education and conducting surveys on local laws.

・In order to ensure compliance with taxation laws and regulations, we work toward improving our knowledge and gaining a proper

We also request that suppliers refrain from acts of bribery through our CSR Procurement Guidelines. In FY2021, there were nounderstanding of taxation and adopt an attitude of sincerity toward tax authorities to enhance our reliability and transparency.

violations of related laws and regulations across the Group.

・We properly manage taxation risks by working toward appropriate declaration and payment of taxes in each country, thereby
enhancing shareholder value.

Participation in "United Nations Global Compact"

・We never engage in profit shifting to tax havens and other low-tax countries or implement other measures for the purpose of tax
avoidance.

Initiatives Concerning Competition Laws
Taking seriously our violation of the Anti-Monopoly Act of Japan, as uncovered in FY2014, we have established a system to promotecompliance with competition laws and to ensure legal compliance both within and outside the country.
In Japan, we formulated the Anti-Monopoly Act Compliance Manual and distributed copies to employees while holding a range of related
seminars internally for both executives and employees. Moreover, we have introduced an in-house e-mail inspection system to monitor
and prevent recurring violations of the competition law.
Our overseas Group companies are required to report the activity status regarding compliance with competition laws to NGK SPARKPLUG on a regular basis. In addition, the company’s teams in charge of affairs concerning competition laws and compliance visit theGroup companies, where they audit the companies’ compliance systems and implementation status and check whether local employees
are sufficiently aware of the related rules. Seminars featuring guest speakers are also held.
We will continue our education and auditing activities to ensure compliance with competition laws both in Japan and abroad.

Export Control
We comply with domestic laws and regulations based on the Foreign Exchange and Foreign Trade Act in accordance with themultilateral export control regime (MECR) established for international peace and safety. In addition, we have established related
internal rules and an in-house export control organization.
We also conduct awareness-raising and inspection activities targeting departments engaged in export control, thereby ensuring andenhancing our export control in compliance with the related laws and regulations.

We are working to prevent the destabilization ofinternational affairs by focusing on preventing the outflow of sensitive technology as well as cargo that can be diverted to military use.

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Environment

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Society

Governance

Sustainability Data
（Non-Financial Information）
Environmental Management

Environmental Accounting

Compliance with Environmental Laws and Regulations
Global Human Resource Management＜Quantity of environmental conservation benefits＞
Difference
Effect measured in theTypes of effectbusiness area

Energy consumption Purchased

respect to resource input

electricity

into operations

Providing Environmentally Friendly Products
Diversity

Work-life Balance
Water consumption

Occupational Safety and HealthCommunication with Stakeholders

Product Quality

Social Contribution Activities

Corporate GovernanceCompliance％

Scope of tabulation

2017

2018
ー

Group

2019
ー

2020
93

from the2021

previous

93

331

350

19
0.6

11.0

11.6

tons

6,533

6,593

60

Tap water㎥

770,428

821,362

50,934

Well water㎥

346,995

358,895

11,900

640

704

64

184,426.0

194,207

9,781

tons

10,267.0

11,727

1,762

tons

69

66

-3

tons

94.5

91.7

-2.8

CO₂ emission from energy

respect to environmental

consumption

load and waste from

Waste

tons

NGK SPARK PLUG
CO., LTD. andGroups in Japantons(with integrated
certification)

Effectively
used

2021

GWh
million ㎥

Effect measured withbusiness activities

NGK SPARK PLUG

2020

Gas

Amount of PRTR substances

R&D

Environmental Management
Unit

Scope of tabulation

LGP

treatedAcquisition rate of ISO14001

Unit

fiscal year
Effect measured withEnvironment Data

Human Resource Development

Data

Not
effectively

93

used
Amount of PRTR substances[Calculation method] Percentage of employees working at ISO14001-certified sites

released into air and water[Calculation method] Energy consumption. CO₂ emission from energy consumption : Excluding the amount used for and CO₂
emitted from the transportation activities

Environmental Accounting＜Economic benefits associated with environmental conservation activities ＞
Area of recognized effectRevenue

Unit

Scope of tabulation

Revenue generated from the recycling of waste generated
in operations or used products

Cost saving

Energy cost saving achieved from energy conservation
efforts
Reduction of water expenses through water saving
Waste disposal cost saving achieved by resource
conservation and recycling efforts

Total

NGK SPARK PLUG CO.,million yen

LTD. and Groups in Japan(with integrated certification)

2020

2021

135.1

724.2

123.8

111.9

1.5

341.3

0.4

3.0

260.8

1,180

62

Environment

Index

Society

Governance

Environment Data

Total direct GHG

10,000 tons-

NGK SPARK PLUG

emissions [Scope 1]

CO₂

Group

gas

Total indirect GHG

10,000 tons-

NGK SPARK PLUG

emissionsemissions [Scope 2]

CO₂

Group

(Scope 1,2)

Scope 1+2

10,000 tons-

NGK SPARK PLUG

CO₂

Group

Greenhouse
Unit
Total water
consumption
Management

Basic Unitof Water
Total water
discharge
Total waste
generated
Basic Unit

Effectively used
Managementof Waste

Not effectively used

Not effectively used

10,000㎥

Group

10,000㎥

NGK SPARK PLUG

/Million yen

Group10,000㎥

tons

NGK SPARK PLUGGroupNGK SPARK PLUG
Group

Tons/Million

NGK SPARK PLUG

yen

Group

tons

tons
％

On-site inspection atwaste disposal

Scope of tabulation
NGK SPARK PLUGNGK SPARK PLUGGroupNGK SPARK PLUGGroupNGK SPARK PLUG
Group

2018
163

2019
154

2020
166

2021
153

165

6.07

5.40

5.68

5.13

4.92

163

154

166

153

165

19,966

21,45022,031

20,237

22,686

0.074

0.075

0.075

0.068

0.068

calculated by using the emission factor of each country by the IEA.

17,447

19,49019,212

18,223

20,712＜Greenhouse gas emissions (Scope 3)＞

2,519

1,960

2,662

2,014

1,974

CO., LTD. andGroups in Japan

Amount of PRTRNGK SPARK PLUG
tons

CO., LTD. andsubstances releasedCO., LTD. andof Chemical

Unit

87.4

90.9

87.3

90.0

91.3

Substances

CO., LTD. and

84

82

57

39

CO., LTD. andTotal energy
consumption
Total nonrenewableenergy consumption
Energy（Fuels）

consumption（Electricity）
Total renewableenergy generation

MWh

MWh

MWh

MWh

MWh

21.1

19.5

20.1

28.5

29.1

27.6

25.7

26.5

2017

2018

2019
ー

122.01169.03

２．Capital goods

ー

20.23

ー

11.08

11.49

ー

4.42

ー

4.29

4.60

920.0

763.8

640.4

704.4

ー

17.15

ー

12.86

14.36

５．Waste generated in operations

ー

0.57

ー

0.71

0.77

６．Business travel

ー

0.21

ー

0.21

0.21

７．Employee commuting

10,000 tons-

NGK SPARK PLUG

ー

2.06

ー

2.10

136.0

132.3

88.1

94.5

91.7

1.47

８．Upstream leased assets

CO₂

Group
ー

ー

ー

ー

９．Downstream transportation and
125.6

120.9

77.1

83.6

distribution

86.1

3.2

2.9

1.6

1.1

0.0

0
ー

10．Processing of sold products

ー

ー

ー

ー

ー

11．Use of sold productsー

970.32ー

878.07939.95

ー

0.06

ー

0.05

0.06

12．End-of-life treatment of soldproducts
13．Downstream leased assets

0

14． Franchises

0

NGK SPARK PLUG

15．Investments

0

Group
NGK SPARK PLUGGroupNGK SPARK PLUGGroupNGK SPARK PLUGGroupNGK SPARK PLUG
Group

2021

119.16

Groups in Japan

CO., LTD. and

2020

ー

distribution
862.7

NGK SPARK PLUG
tons

Scope of tabulation

４．Upstream transportation andGroups in Japan(Other)22.1

or scope 2

NGK SPARK PLUG
tons

21.6

１． Purchased goods and services

emissions not included in scope 1
74

Groups in Japan(Xylene)

6.44

３．Fuel- and energy-related

NGK SPARK PLUG
tons

6.21

Scope 2 : Calculated by using the emission factor as provided by each electric power company in Japan, while in other countries

Groups in Japan
Management (Toluene)

6.47

Countermeasures.

NGK SPARK PLUG
tons

7.01

Scope 1 : Calculated by using the global warming potential as provided for in the Act on Promotion of Global WarmingGroups in Japan
Amount of PRTR

6.83

[Calculation method]

NGK SPARK PLUG
cases

company facilities

substances treated

2017

Data

7.2

8.6

9.4

9.8

5.5

802,660

830,834

799,541

780,112825,807802,269

830,258

799,263

779,822823,783

357,555

367,018

339,823

326,302338,530

444,714463,241

459,440

453,520

485,252

391

576

278

290

2,024

63

Environment

Index

Society

Governance

Data

Compliance with Environmental Laws and Regulations[Calculation method]
1︓Calculated by multiplying the figures shown in the material balance sheet by the relevant values retrieved from the database ofemissions unit values built for the calculation of organizations’ greenhouse gas emissions across their supply chains

Unit

2︓Calculated by multiplying the cost of acquiring tangible fixed assets (shown in the financial statements) by the relevant value

Environment-related non-retrieved from the database of emissions unit values built for the calculation of organizations’ greenhouse gas emissions acrosscompliance

their supply chains

Environment-related fine

3︓For power consumption, calculated by multiplying the amount used by the relevant value retrieved from the database of

cases

yen

Environment-related complaints

emissions unit values built for the calculation of organizations’ greenhouse gas emissions across their supply chains. For gases,

Scope of tabulation

2017

NGK SPARK PLUGGroupNGK SPARK PLUG
Group

2018

2019

2020

2021

0

0

3

2

3

ー

0

0

0

0

1

3

1

2

2

NGK SPARK PLUG
cases

CO., LTD. andGroups in Japanetc., calculated by multiplying the amount used with the relevant value retrieved from the IDEA LCA database.
4︓Extracted from the data notified (for products) by shippers specified under the Act on Rationalizing Energy Use
5︓Calculated by totaling CO₂ emissions from the transportation of the company’s waste (extracted from the data notified (for waste)by shippers specified under the Act on Rationalizing Energy Use and CO₂ emissions from the treatment of waste (calculated by

Providing Environmentally Friendly Products

multiplying the cost of waste treatment (for fiscal years up to fiscal 2018) or the amount of waste treated (for after fiscal 2019) by therelevant value retrieved from the IDEA LCA database)

Unit

6︓Calculated by multiplying the number of employees by the relevant value retrieved from the database of emissions unit values

Sales ratio of precious metal plugs*

built for the calculation of organizations’ greenhouse gas emissions across their supply chains
7︓Calculated by multiplying the result of multiplying the number of employees by the number of their working days by the relevant

Sales ratio of wide range oxygen

value retrieved from the database of emissions unit values built for the calculation of organizations’ greenhouse gas emissions

sensor*across their supply chains※％％

Scope of tabulation
NGK SPARK PLUGGroupNGK SPARK PLUG
Group

2017

2018

2019

2020

2021

37

39

39

41

40

22

27

34

37

37

“Precious metal plug” and “wide range oxygen sensor” are types of environmentally friendly products and are selected as

11︓Calculated by multiplying the amount of CO₂ emissions per one ton of products calculated by using the Japan Auto Partspriority issues.

Industries Association’s LCA tool by the weight of shipped products

We aim to increase each of the “sales ratio of precious metal plugs” and the “sales ratio of wide range oxygen sensor” to not

12︓Calculated by multiplying the weight of shipped products by the relevant value retrieved from the IDEA LCA databaseless than 50%

15︓Calculated by multiplying the amount of CO₂ emitted by the five companies that are ranked in the top five in terms of themonetary value of the stocks owned by NGK SPARK PLUG by the stockholding ratio※"0" is indicated for non-applicable items, and "-" is indicated for difficult-to-calculate items.

＜Proportion by region in FY2021＞
Unit
Consumption
Water
Emissions

Waste

Greenhousegas

Emissions

Asia

North America South America

EuropeAfrica

123

26.2

1.8

13.4

0.6

0.2

%

74.4

15.9

1.1

8.1

0.4

0.1

10,000 ㎥

123

26.2

1.8

13.4

0.6

0.2

%

74.4

15.9

1.1

8.1

0.4

0.1

t

12,800

3,365

2,250

3,231

963

76

%

56.4

14.8

9.9

14.2

4.2

0.3

21

2.6

1.0

1.5

0.3

0.1

79.1

9.8

3.8

5.7

1.3

0.3

10,000 tonsEmissions

Japan

10,000 ㎥

CO₂
%

64

Environment

Index

Society

Governance

Global Human Resource Management

Men

NGK SPARK PLUG％

Unit
Number of workers※Number of employees as of March 31

peoplepeopleNumber of temporary workers※Number of employees as of March 31

Average age

Men※Number of
employees asof March 31

Women

Total

No of years

Menof service※Number of
employees as

Womenpeople

aged

aged

aged

aged

aged

of March 31

Total

Average annual salary

Turnover rate Total employee
turnover rate
Voluntary employee
turnover rate
New

Men

graduatehiring

Women

Total

Foreign nationality

Career hiring Men

Women

Total

Foreign nationality

Hired as a manager

aged

yen
％
％
peoplepeoplepeoplepeoplepeoplepeoplepeoplepeoplepeopleScope of tabulation
NGK SPARK PLUGGroupNGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.

2017

2018

15,322

5,851

2019

15,994

5,863

2020

Data

ー

ー

ー

45.5

44.9

ー

ー

ー

50.5

56.8

73.2

67.3

54.1

46.2

46.6

70.4

88.1

90.9

88.0

87.6

CO., LTD. andGroups in Japan

2021

16,43016,391

16,094※Adopted※Adopted※Adopted

IFRS for fiscal

IFRS for fiscal

IFRS for fiscal

5,883

5,891

3,617

Rate ofTotal

NGK SPARK PLUG％

employees
workCO., LTD. andGroups in Japan

with highTotal

NGK SPARK PLUG％

satisfaction

CO., LTD. andGroups in Japan

303

505

649

473

108

38.6

39.0

39.7

41.5

41.5

35.9

36.9

37.6

38.7

39.6

38.2

38.6

39.3

41.0

41.0

16.4

16.8

17.1

17.8

16.7

15.2

16.1

16.4

17.2

16.9

16.2

16.7

16.9

17.7

16.7

6,570,683

6,912,014

6,759,462

6,362,393

6,725,908

2.06

2.62

3.12

3.59

4.71

Response rate

NGK SPARK PLUG％

CO., LTD. andGroups in Japan[Calculation method] Average age/No. of years of service : Calculated based on the number of regular employees as of March 31
Average annual salary Including bonuses and extra wages
Total employee turnover rate : Calculated based on the number of employees who retired / quit the company
Voluntary employee turnover rate : Calculated based on the number of employees who quit the company for personal reasons

Human Resource Development

1.42

1.53

1.90

2.12

3.51

139

116

101

84

40

43

27

27

26

21

182

143

128

110

61

4

4

5

5

6

28

40

30

26

30

6

4

8

9

3

34

44

38

35

33

1

0

1

0

0

ー

ー

7

6

8

Unit
Average hours of training

Average amount spent on training

hours

yen

Scope of tabulation
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.

2017

2018

2019

2020

2021

ー

8

9

3

4

ー

23,31018,321

8,324

10,809[Calculation method] Calculated for the training (level-specific, global, etc.) provided by the Strategic Human Resources Department

65

Environment

Index

Society

Governance

Data

Reemployed : Including employees temporarily transferred to Group companies

Diversity

Employee age group: Including employees temporarily transferred to Group companies
Unit
Regular employeesMen※As of March 31

Women

Percentageof womenManagerMen※As of April 1

Women

Percentageof women
Supervisor

Men※As of April 1

Women

Percentageof women
Generalist(Classified, Men
Considered)※As of April 1

Women

Percentageof womenpeoplepeople％peoplepeople％peoplepeople％peoplepeople％Ratio of women, foreign nationals
and career recruits in managerial％

positions*

Scope of tabulation
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.

2017

2018

2019

2020

*We aim to increase the “ratio of women, foreign nationals and career recruits in managerial positions” to 25% in fiscal 2030.

2021

4,701

4,730

4,784

4,734

3,017

1,028

1,037

1,045

1,057

600

17.9

18.0

17.9

18.3

16.6

955

966

963

978

780

Work-life Balance
Unit
Maternity/

Employees who took

Child carematernity leave
Employees who tookchild care

※As of March 31

12

15

18

26

26

1.24

1.53

1.83

2.60

3.23

1,058

1,112

1,221

1,264

1,024

27

26

37

39

47

after taking child

2.49

2.28

2.94

2.99

4.39

Users of the short

Employees who tookchild careCO., LTD. andyears old
30 to 50
years old
50 years andover
Reemployed※As of March 31％％％
peopleNGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.

CO., LTD.
NGK SPARK PLUG
CO., LTD.

NGK SPARK PLUG
CO., LTD.

2017

2018

2019

2020

2021

35

61

47

47

30

6

4

5

13

24

42

46

53

36

35

95

100

96

94

94

35

42

30

41

23

1

2

3

1

2

0

0

1

1

1

1,899

1,899

1,899

1,899

1,899

1,993

2,008

1,982

1,884

1,955

21

22

19

8

10.8

19.3

19.6

19.5

ー

19.6

15.4

16.6

16.7

ー

14.0

78.5

84.4

85.6

ー

71.2

92

92

92

94

Percentage of
employees who
returned to work％

NGK SPARK PLUG
CO., LTD.

care leave

working hour system
3,438

3,427

3,305

3,202

1,383

593

597

601

612

255

14.7

14.8

15.4

16.0

peoplefor child careLong-term

Employees who took

nursing carenursing care leave

leave

Users of the shortworking hour system

15.6

peoplepeoplefor nursing care
11.7

12.5

13.6

14.5

17.0

2.17

2.21

2.25

2.46

2.36

24

22

17

17

59

60

62

61

16

17

18

21

22

223

204

190

208

132

CO., LTD.
NGK SPARK PLUG
CO., LTD.

hours/year

NGK SPARK PLUG

hours

and person

CO., LTD.

hours/year

NGK SPARK PLUG

and person

CO., LTD.

hours/month

Paid holidays Paid holidays
day(s)

employees
Paid holidays takenby employees
Rate of usage[Calculation method]

NGK SPARK PLUG

Prescribed working

granted to57CO., LTD.

hours

working hours
27

NGK SPARK PLUG

Working

Average overtime

Groups in Japan
Employee age group Under 30

peopleleave（Women）

NGK SPARK PLUG％

peopleleave（Men）

Actual working hours

Percentage of disabled employees

peopleScope of tabulation
NGK SPARK PLUG

day(s)％NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.
NGK SPARK PLUG
CO., LTD.

NGK SPARK PLUG Group labor

NGK SPARK PLUG

union participation rateCO., SparkTec WKS※Number of employees as of March 31

CO., LTD., NANSEIRegular employees : Excluding employees temporarily transferred to Group companies

CERAMIC CO.,Manager,Supervisor,Generalist : including employees temporarily transferred to Group companies％

Percentage of Disabled Employees : Including employees temporarily transferred to Group companies and the special subsidiary

LTD., NTKCERATEC CO.,LTD.
(Komaki), NTK

in Japan

Medical CO., LTD.
NTK CUTTING66

TOOLS CO., LTD

96※NGK SPARKPLUG CO only

Environment

Index

Society

Governance

Data

Product Quality[Calculation method]
Working hours︓Excluding managers, employees temporarily transferred to Group companies and those on leave

Unit

Paid holidays︓Calculated for a fiscal year from October to next September (example : fiscal 2019 was started in October 2019 andNumber of vehicles recalled

ended in September 2020), excluding managers, employees temporarily transferred to Group companies and those on leave

Scope of tabulation

2017

2018

vehicles

2019

2020

2021

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Expenses incurred due to recalls
issued in the corresponding fiscal

Employees who took child care leave : Number of employees whose child care leave started in the fiscal year

yen

year

NGK SPARK PLUG

Percentage of employees who returned to work after taking child care leave : Percentage of employees who returned to work

Number of vehicles recalled thatamong those whose child care leave period expired in the fiscal year

were Mandated
Cost of recalls as a percentage ofUsers of the short working hour system for child care : Number of employees who became users of the system in the fiscal year

annual revenuesGroup

vehicles％Employees who took nursing care leave : Number of employees whose nursing care leave started in the fiscal year
Users of the short working hour system for nursing care : Number of employees who became users of the system in the fiscal year

Social Contribution Activities
Occupational Safety and HealthType of contribution

Unit

Scope of tabulation

2017

Cash contributions
Unit
Total accident frequency rate

Scope of tabulation

2017

2018

2019

2020

paid working hours

NGK SPARK PLUG
CO., LTD.
(Including temporary

0.63

1.08

0.77

0.93

In-kind giving: product or services

0.90

Total

NGK SPARK PLUG

rate ofaccidents

CO., LTD.
Employees

requiringleave fromwork-

NGK SPARK PLUG
CO., LTD.

TemporaryNGK SPARK PLUG

employees

CO., LTD.

Frequency rate of occupational
diseasesCO., LTD.

2021

496.1

464.8

14.5

13.4

7.6

8.4

10.6

5.3

1.7

51.3

1.3

11.3

13.9

35.2

29.7

0.03

0.01

Group

similar
0.08

0.08

0.00

0.34

0.13

0.08

0.08

0.00

0.27

0.13

1.20

0.00

0.00

1.13

0.00

0.00

0.00

0.00

0.00

0.00

Management overheads

Communication with Stakeholders

NGK SPARK PLUG
(Including temporary

2020

394.6

NGK SPARK PLUG

donations, projects / partnerships or

employees)
Frequency

million yen

2019

248.5

Time: employee volunteering during

2021

2018

314.9

Stakeholder

Communication

employees)

Major activities●Organization of the ordinary general meeting ofshareholders[Calculation method]●Dialogue with institutional investors andsecurities analysts

Total accident frequency rate : Total number of victims per 1million working hours●Conference call for institutional investors andTotal accident frequency rate=Number of victims of all occupational accidents÷Total working hours×1million hours

We disclose information securities analysts

Frequency & no. of articipants per year
2019

2020
June

June

June

336 times

197 times

258 times

4 times

4 timesー(A total of 242(A total of 288

people)people)in compliance with theFrequency rate of accidents requiring leave from work : Number of victims who took leave per 1million working hours
Shareholders

Frequency rate of accidents requiring leave from work=Number of victims of accidents requiring leave from work÷Total working

law and also discloseand investors information promptly via
the media and at ourhours×1million hours

website.

Frequency rate of occupational diseases : Number of employees who took leave due to occupational diseases per 1million working●Organization of briefings on our technologies for
institutional nvestors and securities analysts●Organization of briefings on the company for
personal investors

hours×1million hours

67

Canceled due toPostponethe spread of the

1 timeCOVID-19
3 times

2 times

2 times(A total of 900(A total of 411(A total of 1,720

people)people)people)●Publication of the newsletters for shareholders

1 time1 time1 time●Publication of an annual integrated report

Aug.

Oct.

Oct.

hours
Frequency rate of occupational diseases=Number of employees who took leave due to occupational diseases*÷Total working

2021●Provision of information via the website

From time to timeEnvironment

Index

We offer information
meaningful tocustomers at our
website and throughCustomers

Society●Communication through sales activities

Governance●Communication through daily operations and at

From time to time
To maintain safe and●Provision of information via the website (onhelp employees workwith vigor, theexhibitions so that they ●Explanation about products and technologies at
can purchase and use exhibitions

From time to time

management teamproactively visits work

our products andservices with peace ofmind.

●Communication at venues of events, such as

Employees

From time to time

racing events

sites to have dialogues●Publication of an in-house magazine

relationships of trust●Communication through daily procurement
activities

Booklet︓4 times

Booklet︓2 times

Website︓ from

Website︓ from

Website︓ fromtime to time

time to time

time to time

From time to time

meetings
80 calls received

employees)with suppliers as their

Booklet︓8 times●Organization of various labor-managementwith on-site employees. ●Utilization of the corporate ethics helpline (forWe are working to build

From time to time

workplaces

sound workplaces andFrom time to time

products, events, etc.)

Data(A total of 8,192 From time to time From time to time

●Organization of various training sessions

people)achieve growth
together. To this end we
conduct activities
across the supply chain,●Employee satisfaction survey●Organization of briefings on the corporate
principles

June

June

corporate policies.

●Organization of seminars on practical issues

34 seminars

24 seminars

7 seminars

Unit
Directors●Participation in local events such as festivals

From time to time
From time to time From time to time From time to time

culture and customs at(A total of 931(A total of 464(A total of 558

people)people)people)located across the●Environmental meetings

world and work for
Local
communities

smooth communication ●Communication through cultural and sportwith local communities. events
We also participate invarious social
contribution activities to(A total of 867(A total of 71(A total of 324

people)people)people)・2020 NGK SPARK PLUG Suzuka 2&4 Race

(A total of 302(A total of 4

(A total of 7

people)people)people)ーーーCanceled due toCanceled due tothe spread of the

COVID-19

help create acomfortable society asa corporate citizen.

・NGK SPARK PLUG FC Gifu football class forchildren・Marathon Festival Nagoya Aichi

Mar.

(Scale down due
to the spread of●Provision of information via the website(environmental information, etc.)

10

Women

people

1

1

0

1

1

％

10

10

0

9

9

people

3

3

3

4

4

％

30

30

30

36

36

％

10

10

10

18

18

5.4

3.2

3.8

4.8

5.8

3

3

3

3

2

outside directors ※Percentage ofJapanese directors※

Apr.
Auditors

Oct.

NGK SPARK PLUG

Average tenure

years

Men

peopleWomen

people

1

1

1

1

2

％

25

25

25

25

50

people

2

2

2

2

2

times

14

12

12

12

12

％

98.5

99.4

98.3

99.2

100

times

14

13

13

13

14

％

96

100

100

100

98

Percentage of
women

CO., LTD.

Outside directors(independentDec.

officers)

the COVID-19)
Mar.

2021
10

Percentage of

Dec.
Dec.

2020
10

officers)

COVID-19

・Musical for families held in the NTK Hall20199(independent

COVID-19

the spread of the2018

Outside directors

Canceled due to
June

2017
9

female and non-the spread of the

Scope of tabulation

peoplewomen

From time to time From time to time From time to timeeach of our bases

from Oct. to Nov.

Men

Percentage ofFrom time to time From time to time From time to time
●Environment-related plant tours

All employees,

from Oct. to Nov.

＜Board of Directors and Board of Auditors＞

From time to time

eventsWe respect the local

All employees,

from Nov.

Corporate Governance●Communication through social meetings and●Local cleanup activity

All employees,

Junesuch as holding briefing
sessions on our

32 calls received

From time to time

From time to timesound partners andSuppliers

63 calls received

Mar.

Board ofFrequency

directors

Average attendance
rate

From time to time
Board ofFrequency

auditors

Average attendance
rate

※

68

We aim to increase the rate of outside directors and the percentage of female and non-Japanese directors to at least one-third
and 30% of the total number of directors, respectively, by fiscal 2030.

Environment

Index

Society

Governance

Data

Compliance＜Remuneration and bonus paid to directors and auditors in fiscal 2021＞
Total remuneration of compensation by type
Officer classification(million yen)

Total remuneration(million yen)Fixed
remuneration

Directors (excluding outside directors)

594

365

Number of eligible
Performance-

executives (number

linked stockof people)

Bonus＜In-house Reporting System＞
Unit

compensation
152

76

Consultation requests/ reports
7

Auditors (excluding outside auditors)

31

31

-

-

2

Outside directors

57

57

-

-

4

Outside auditors

39

39

-

-

3

made internally

Scope of tabulation

2017

2018

2019

2020

2021

NGK SPARK PLUG
cases

CO., LTD. and

65

73

80

63

41

Groups in Japan[Calculation method] Number of cases of consultation requests/reports received through the Corporate Ethics Helpline＜Anti-corruption＞*1 : The amount of compensation to be paid to directors has the following limits based on the resolution made at the 117th Ordinary

Unit

General Meeting of Shareholders (held on June 29, 2017).

Violations of laws related to anti-

Total amount of compensation (excluding the total amount of bonuses): Up to 60 million yen a monthcorruption

cases

Scope of tabulation

2017

NGK SPARK PLUG

2018
0

Group

2019
0

2020
0

2021
0

0

Total amount of bonuses: Up to 180 million yen a year Also based on the resolution made at the 117th Ordinary General Meeting of
Shareholders, performance-linked stock compensation of up to 1,000 million yen in total will be paid to directors and corporate＜Political Donation＞

officers over four fiscal years from April 1, 2017 to March 31, 2021.

Unit*2 : The amount of compensation paid to auditors has the following limits based on the resolution made at the 106th Ordinary
Political organizations

General Meeting of Shareholders (held on June 29, 2006):
Total amount of compensation (excluding total amount of bonuses): Up to 10 million yen a month

Lobbyists or lobbying organizations

Total amount of bonuses: Up to 10 million yen a year

Trade associations

Scope of tabulation

2017

2018

2019

2020

2021

cases

0

0

0

0

yen

0

0

0

0

0

0

0

0

0

0

cases

NGK SPARK PLUG

yenCO., LTD.

0

0

0

0

0

0

cases

0

0

0

0

0

yen

0

0

0

0

0

R&D
Unit
R&D expenses
Ratio of R&D

millions ofyen％

Scope of tabulation
NGK SPARK PLUG
Group

2017

2018

2019

2020

2021

25,28328,071

28,315

26,11523,685

6.17

6.60

6.64

6.11

4.82

[Calculation method] Including expenses for improving existing products and for applied research as well as the development cost
recognized as the cost of an intangible asset

69

Environment

Index

Society

GovernanceInitiatives

Data

Task Force on Climate-related Financial Disclosures (TCFD)
The TCFD is a task force established by the Financial Stability Board (FSB), an internationalorganization of central banks and financial regulators from major countries, to provide a framework for

NGK SPARK PLUG CO., LTD. is actively participating in sustainability initiatives.

disclosing information on climate change. In June 2017, the TCFD released a report recommending
disclosure of information about risks and opportunities related to climate change. Governments,

The United Nations Global Compact (UNGC)

financial institutions, and companies around the world have endorsed the TCFD's recommendations.
We have announced its endorsement of the recommendations of TCFD in July 2020. Based on the

The UN Global Compact was proposed by the UN Secretary-General Kofi Annan in 1999 to address a

TCFD recommendations, we will assess and proactively disclose the financial impacts of climate-variety of issues such as global warming, environmental problems, and social inequality that haverelated risks and opportunities.

been ongoing on a global scale. It is an initiative formally launched at UN headquarters in July 2000
and is a voluntary corporate principle of action.

Support for the TCFD Recommendations

We participated in the United Nations Global Compact in November 2016.
We support the 10 principles of the United Nations Global Compact in the four fields of "human rights,"

CDP"labor," "environment," and "anti-corruption," and promote various activities as a "good member of
CDP is an international non-governmental organization (NGO) launched in 2000 to collect, analyze,

society."and evaluate information on the environmental activities of the world's leading companies and sharethese results with institutional investors. We answered questions on climate change and water

United Nations Global Compact Participation

security.
Sustainable Development Goals (SDGs)
CDP

The SDGs consist of 17 goals and 169 targets for achieving a sustainable society by 2030, adopted at
the United Nations Summit in 2015. They aim to solve global problems and challenges such as

Science Based Targets initiative（SBTi）

poverty, inequality and climate change, and to "leave no one behind".
The SBTi is a collaboration between CDP, the United Nations Global Compact, World Resources

As a signatory to the United Nations Global Compact, we are committed to doing what we can to

Institute (WRI) and the World Wide Fund for Nature (WWF). The SBTi defines and promotes best

contribute towards the achievement of the SDGs.

practice in science-based target setting and independently assesses companies’ targets.
In June 2022, our group's greenhouse gas reduction targets were approved by SBTi as meeting the

Our Commitments to SDGs

level "well-below 2°C" of the Paris Agreement.
Women's Empowerment Principles (WEPs)

Declaration of Partnership Building

WEPs are principles for businesses to work voluntarily on promoting the advancement of women. TheyThe Declaration of Partnership Building was established by the Committee for the Promotion ofprovide a holistic framework for companies to promote gender equality and women’s empowerment inPartnership Building for the Future, whose members include the Chairman of Keidanren（Federation

the workplace, marketplace and community and drive positive outcomes for society and business. The

of Economic Organizations）, the Chairman of JCCI(Japan Chamber of Commerce and Industry), theUN Global Compact and UN Women collaborated to develop and established WEPs in 2010 through

Chairman of JTUC(Japanese Trade Union Confederation) and related ministers (Cabinet Office,multi-stakeholder international consultations.

Ministry of Economy, Trade and Industry, Ministry of Health, Labor and Welfare, Ministry of Agriculture,

We signed this Code of Conduct in October 2020 and expressed our strong intention to create a

Forestry and Fisheries, and Ministry of Land, Infrastructure, Transport and Tourism).

working and social environment in which women can exert their strengths socially.

It is a declaration in the name of the representative of a company to build a new partnership bypromoting cooperation and coexistence and co-prosperity with business partners and value-creatingcompanies in the supply chain.
We registered in the "Declaration of Partnership Building" in October 2020.
Declaration of Partnership Building70Environment

Index

Society

Governance

External Evaluation of Our ESG
Initiatives

Data

FTSE Blossom Japan Sector Relative Index

We are selected as a member company of the FTSE Blossom Japan Sector
Relative Index since 2022.
The index for Japanese equities created by FTSE Russell (UK), is designed to

Corporate evaluation of ESG investment

measure the performance of Japanese companies that demonstrate strong ESG
practices. The index is constructed so that sector weights align with the Japanese

ESG investment refers to investment that selects investment targets not only in terms of finance but also in consideration of ESG

equity market.

(environment, society, governance) factors that are non-financial information. Numerous ESG investment evaluations have been
conducted at home and abroad.

FTSE Blossom Japan Index Series

The Company continues to be selected as a constituent of all ESG indices for Japanese Equities adopted by the Government
Pension Investment Fund (GPIF).

MSCI JAPAN ESG SELECT LEADERS INDEX＜Status of Inclusion in the ESG Index＞

We are selected as a member company of the MSCI JAPAN ESG SELECTLEADERS INDEX since 2017.

FTSE4Good Index Series

The index for Japanese equities is created by MSCI (U.S.A.) and composed ofcompanies with high ESG ratings from each industry.

We are selected as a member company of the FTSE4Good Index Series since
2003.

MSCI JAPAN ESG SELECT LEADERS INDEXFTSE4Good Index is created by FTSE Russell (UK), a leading global index
provider, and organized by companies that meet global standards concerning the

MSCI JAPAN EMPOWERING WOMEN INDEX

environment, society, and governance based.

We are selected as a member company of the MSCI JAPAN EMPOWERING

About FTSE4Good Index

WOMEN INDEX. The index for Japanese equities is created by MSCI (U.S.A.) anddesigned by companies with excellent gender diversity in each industry.
FTSE Blossom Japan Index
MSCI JAPAN EMPOWERING WOMEN INDEXWe are selected as a member company of the FTSE Blossom Japan Index since
S&P/JPX Carbon Efficient Index

2017.
The index for Japanese equities is created by FTSE Russell (UK) and organizedby companies that meet diverse standards concerning the environment, society,We have been selected as a member company of the S&P/JPX Carbon Efficientand governance based on ESG evaluation.

Index since 2018. An ESG index jointly developed by S & P Dow Jones Indicesand Japan Exchange Group (JPX). For the constituent stocks of Tokyo Stock Price
Index (TOPIX), the inclusion ratio in the index will be determined in consideration

FTSE Blossom Japan Index Seriesof the disclosure status of environmental information and carbon efficiency (carbon
emissions per unit of revenue).
S&P/JPX Carbon Efficient Index

71

Environment

Index

Society

Governance

SOMPO Sustainability Index

Data

NIKKEI SDGs Management Survey
The survey has been sponsored by Nikkei Inc. since 2019. It targets listed

We are selected as a member company of the SOMPO Sustainability Index.

companies and leading unlisted companies nationwide, and evaluates the

The index for Japanese equities is created by SOMPO Asset Management Co.,

company's "SDGs management" on a five-star scale from the four pillars of "SDGs

Ltd. and composed of companies with outstanding ESG-related initiatives. We

strategy / economic value," "social value," "environmental value," and "have been adopted for the third consecutive year since 2020.

governance."
We have been received 4 stars for the third consecutive years since 2020.

*The inclusion of NGK SPARK PLUG CO., LTD. in any MSCI index, and the use of MSCI logos, trademarks, service marks or index
2020

names herein, do not constitute a sponsorship, endorsement or promotion of NGK SPARK PLUG CO., LTD. by MSCI or any of its

2021

2022

affiliates. The MSCI indexes are the exclusive property of MSCI. MSCI and the MSCI index names and logos are trademarks orservice marks of MSCI or its affiliates.
＜Evaluation of Major External Surveys＞

NIKKEI Smart Work Management Survey
CDP

The survey has been sponsored by Nikkei Inc. since 2017. It targets listedcompanies and leading unlisted companies nationwide, and evaluated by adding a

CDP is an evaluation for the environmental activities of the world’s leading

management base such as corporate governance to “Smart Work Management”

companies and these results are disclosed to institutional investors. We hadthat is defined from the three elements of "Realization of diverse and flexible

responded to climate change and water security fields and received the following

working styles," "System to create new businesses," and "Ability to develop

ratings;

markets" for maximize the performance of the organization.
2020

2021

2022

Climate Change

A-

B

B

Water Security

B

B

B

2020

2021

2022

Toyo Keizai CSR Survey
The survey has been sponsored by Toyo Keizai Inc. since 2005, and it evaluates

CDP

companies from the four perspectives of "human resources utilization,""environment," "corporate governance + sociality," and "finance" related to CSR.

MSCI ESG Ratings

In 2022, it was implemented for 1,631 companies, it was implemented for 1,631
MSCI ESG Rating is provided by MSCI (USA). It’s designed to measure a

companies, and our company was ranked 133rd.

company’s resilience to long-term industry material ESG risks. How well ESG risk
is managed compared to other companies in the same industry is evaluated on a

2020

2021

2022

150th

146th

133rd

7-point scale (leader: AAA, AA, average: A, BBB, BB, laggard: B, CCC). We
received an AA rating in 2022.
2020

2021

2022

A

A

AA

72

Environment

Index

Society

Governance

Major Award and Certification

In Fiscal 2021

The following are the main awards and certification received by our Group for our CSR-related initiatives.

Recipient
NGK SPARK PLUG CO.,In Fiscal 2022

Award

Organizer

Selected to the ”Dow Jones Sustainability Asia Pacific Index”

S&P Dow Jones Indices

NGK SPARK PLUG CO.,Received Bronze Class in overall category and in glass and

SUSTAINA

LTD.

ceramics products of the “SUSTAINA ESG AWARDS 2021”

NGK SPARK PLUG CO.,Certified as a Silver Rating, of “PRIDE Index 2021”

work with PrideNGK SPARK PLUG CO.,Received the Excellence award, of the “22th Telework Promotion

Japan Telework

LTD.

Awards”

Association

NGK SPARK PLUGS (INDIA)

Selected as one of the Top 25 Safest Workplaces in India at the

KelpHR

PVT. LTD.

KelpHR Posh Awards® 2021

LTD.

Recipient
NGK SPARK PLUG CO.,

Data

Award
Certified as “SPORTS YELL COMPANY” for 2023

LTD.

Organizer
JAPAN SPORTS
AGENCYLTD.

NGK SPARK PLUG CO.,selected as an AA Website in Sector Ranking and All Markets

Nikko Investor Relations

LTD.

Ranking of "All Japanese Listed Companies' Website Ranking

Co., Ltd.

2022"
NGK SPARK PLUG CO.,Received Bronze Class in the Sustainability Site Awards 2023

LTD.

Association for
Sustainability
Communication

NITTOKU SMILE CO., LTD.

Certified as “Monisu”.

*Posh: Prevention of Sexual Harassment at Workplace

Ministry of Health, Labourand Welfare

NGK SPARK PLUG CO.,LTD. Ise Plant

Certified as “Japanese Red Cross Society Golden Order of Merit”

NGK SPARK PLUG CO.,Certified as “Nagoya City Childcare Support Company

LTD.

Certification” and received the Excellence award

NGK SPARK PLUG CO.,Certified as “SPORTS YELL COMPANY” for 2022

Nagoya City

Japanese Red Cross
SocietyLTD.

73

JAPAN SPORTS
AGENCY

IndexNGK SPARK PLUG CO.,Environment

Received the “Aichi Family Friendly Company Award”

Society

Governance

Aichi PrefectureLTD.
NGK SPARK PLUG CO.,

Selected as “2022 the Health & Productivity Stock Selection”

LTD.

Ministry of Economy,
Trade and Industry(METI) and the Tokyo
Stock Exchange

NGK SPARK PLUG CO.,Certified as Health & Productivity Management Outstanding

Ministry of Economy,

LTD.

Organizations Recognition Program for 2022 (White500)

Trade and Industry(METI) and Nippon Kenko
Kaigi (Japan HealthConference)

NGK SPARK PLUG CO.,LTD.

Selected as one of the Nadeshiko Brands

Ministry of Economy,
Trade and Industry(METI) and the Tokyo
Stock Exchange

74

Data

Environment

Index

Society

Governance

GRI Content Index

Data

2. Strategy
102-14

Statement from senior decision-maker- Management Message about Sustainability- "Integrated Report 2022", NGK SPARK PLUG's

100 series (Universal)

200 series (Economic)

300 series (Environmental)

Sustainability, Message from the Chairman

400 series (Social)- "Integrated Report 2022", NGK SPARK PLUG's
Sustainability, Message from the President- "Integrated Report 2022", NGK SPARK PLUG's

100 series (Universal)

Sustainability, Message from the Sustainability Officer
102-15Disclosures

Key impacts, risks, and opportunities- "Integrated Report 2022", NGK SPARK PLUG's
Sustainability, Priority Issues (Materiality)

References- Risk Management
GRI 102: General Disclosures 2016
3. Ethics and integrity
1. Organizational profile
102-1

Name of the organization- Overview

102-2

Activities, brands, products, and services- Our Brands

Location of headquarters- Overview

102-4

Location of operations- Global Networks

102-5

Ownership and legal form

- Overview

102-6

Markets served- Global Networks

Values, principles, standards, and norms of behavior

102-17

Mechanisms for advice and concerns about ethics

Scale of the organization

102-18Governance structure102-19Delegating authority

Information on employees and other workers- CSR and Sustainability Charter > CSR and- Overview

Sustainability Promotion System
102-20- Global Human Resource Management
Information）>Global Human Resource Management

Supply chain

102-10Significant changes to the organization and its supply

Executive-level responsibility for economic,- "Integrated Report 2022", NGK SPARK PLUG'senvironmental,

Sustainability, Message from the Sustainability Officer

and social topics- CSR and Sustainability Charter > CSR and
Sustainability Promotion System- Proper Procurement102-21－

Consulting stakeholders on economic, environmental,- Corporate Governance > Corporate Governanceand social topics

Systemchain
102-11

Precautionary Principle or approach- Corporate Governance > Corporate Governance
System-Sustainability Data（Non-Financial
102-9- Corporate Governance > Corporate Governance
System- Financial and Business Results Information
102-8- Compliance > Corporate Ethics Helpline

4. Governance- Our Brands
102-7- Philosophy and Strategy- CSR and Sustainability Charter- Products
102-3

102-16- CSR and Sustainability Charter > CSR and
Sustainability Promotion System- Risk Management- Compliance102-12External initiatives- Initiatives

102-13

Membership of associations- Initiatives

102-22Composition of the highest governance body and its- Corporate Governance > Corporate Governancecommittees

System- CSR and Sustainability Charter > CSR and
Sustainability Promotion System

102-23Chair of the highest governance body- "Corporate Governance Report"

102-24

Nominating and selecting the highest governance body

- Corporate Governance > Corporate Governance102-25

Conflicts of interest

System- "Corporate Governance Report"- Corporate Governance＞Roles and Independence ofOutside Directors

75Index102-26

Environment

Society

Role of highest governance body in setting purpose,- Corporate Governance > Corporate Governancevalues, and strategy

SystemGovernance

5. Stakeholder engagement102-40- CSR and Sustainability Charter > CSR and

List of stakeholder groups- Communication to Stakeholders- Priority Issues (Materiality) > The Process of Defining
Priority Issues

102-28

Collective knowledge of highest governance body
Evaluating the highest governance body’s performance

102-41

Collective bargaining agreements-Sustainability Data（Non-Financial

Sustainability Promotion System

Information）>Work-life BalanceManagement102-42- Corporate Governance＞Evaluation of the

Identifying and selecting stakeholders

Identifying and managing economic, environmental, and- Priority Issues (Materiality) > The Process of Defining

social impacts

Priority Issues

Effectiveness of risk management processes- Communication to Stakeholders
102-43

Approach to stakeholder engagement- Communication to Stakeholders
102-44- Risk Management > Process to Identify Priority Risks

102-32102-33

Review of economic, environmental, and social topics

Priority Issues

102-45

Entities included in the consolidated financial statements- Overview- Risk Management > Process to Identify Priority Risks

102-46

Defining report content and topic Boundaries- "Integrated Report 2022", Editorial Policy

Highest governance body’s role in sustainability- CSR and Sustainability Charter > CSR and102-47

List of material topics- Priority Issues (Materiality) > The Process of Defining

reporting

Sustainability Promotion System

Communicating critical concerns- CSR and Sustainability Charter > CSR and102-48

Restatements of information

Sustainability Promotion System

102-49Changes in reporting- "Integrated Report 2022", Editorial Policy

102-50

Reporting period- "Integrated Report 2022", Editorial Policy

102-51

Date of most recent report102-52

Reporting cycle- "Integrated Report 2022", Editorial Policy

102-53

Contact point for questions regarding the report- "Integrated Report 2022", Back cover

102-54Claims of reporting in accordance with the GRI

Priority Issues

Nature and total number of critical concerns- CSR and Sustainability Charter > CSR and
Sustainability Promotion System- Risk Management > Promotion System

102-35

Remuneration policies- Corporate Governance＞Remuneration for Director
April 1, 2021 to March 31, 2022)

Process for determining remuneration－－

Standards- Corporate Governance > Remuneration for Directorand Auditor

102-55

GRI content index- GRI Content Index- "Corporate Governance Report"

102-56External assurance- Environment＞Environmental Burden from Business

Stakeholders’ involvement in remuneration－

102-38Annual total compensation ratio－

102-39Percentage increase in annual total compensation ratio－

102-37－- Contact Us

Annual Securities Report The 122nd Fiscal Year (From102-36－

Key topics and concerns raised

6. Reporting practice- Priority Issues (Materiality) > The Process of Defining- Risk Management > Promotion System
102-34-Sustainability Data（Non-Financial Information）＞
Communication with Stakeholders- Priority Issues (Materiality) > The Process of Defining
Priority Issues

102-31-Sustainability Data（Non-Financial Information）＞
Communication with Stakeholders- Risk Management > Process to identify priority risks102-30- Work-Life Balance > Labor-Management Relations- CSR and Sustainability Charter > CSR andeffectiveness of the Board of Directors
102-29-Sustainability Data（Non-Financial Information）＞
Communication with Stakeholders

Sustainability Promotion System

102-27

Data

Activities＞Independent Verification Report
GRI 103: Management Approach 2016
103-1

Explanation of the material topic and its Boundary- Priority Issues (Materiality)

103-2

The management approach and its components- "Integrated Report 2022", NGK SPARK PLUG's
Sustainability, CSR and Sustainability Committee- CSR and Sustainability Charter > CSR and
Sustainability Promotion System

103-3

Evaluation of the management approach- "Integrated Report 2022", NGK SPARK PLUG's
Sustainability, CSR and Sustainability Committee- CSR and Sustainability Charter > CSR and
Sustainability Promotion System

76

Environment

Index

Society

Governance

200 series (Economic)

300 series (Environmental)

Disclosures

References

Disclosures

GRI 201: Economic Performance 2016
201-1
201-2

201-4

- Annual Securities Report The 122nd Fiscal Year (From301-1

Materials used by weight or volume

April 1, 2021 to March 31, 2022)

301-2

Recycled input materials used－

Financial implications and other risks and opportunities- "Integrated Report 2022", NGK SPARK PLUG's

301-3

Reclaimed products and their packaging materials

due

Sustainability, Priority Issues (Materiality)－

to climate change- Annual Securities Report The 122nd Fiscal Year (FromDirect economic value generated and distributed

Defined benefit plan obligations and other retirement- Annual Securities Report The 122nd Fiscal Year (Fromplans

April 1, 2021 to March 31, 2022)

302-1

compared to

302-2

Energy consumption outside of the organization

－

302-3

Energy intensity

－

302-4

Reduction of energy consumption

－

302-5

Reductions in energy requirements of products and－services

local minimum wage
202-2

－

Proportion of senior management hired from the

GRI 303: Water and Effluents 2018

local community
GRI 203: Indirect Economic Impacts 2016
203-1
203-2

Infrastructure investments and services supported－

Significant indirect economic impacts

205-2

Communication and training about anti-corruption- Conservation of Water Resources

Management of water discharge-related impacts- Environmental Management > Compliance with

303-3

Water withdrawal

303-4

Water discharge- Environmental Burdens from Business Activities

303-5

Water consumption- Conservation of Water Resources

GRI 304: Biodiversity 2016
304-1

- Compliance > Initiatives to Prevent Corruption- Compliance > Initiatives to Prevent Corruption

protected areas
304-2- Compliance > Initiatives to Prevent Corruption

Legal actions for anti-competitive behavior, anti-trust,- Compliance > Activities Concerning Competition Laws

GRI 207: Tax 2019
- Appropriate Tax Payment

207-1

Approach to tax

207-2

Tax governance, control, and risk management

－

207-3

Stakeholder engagement and management of concerns－

related to tax
Country-by-country reporting

304-3

Habitats protected or restored

304-4

IUCN Red List species and national conservation list
species with habitats in areas affected by operations

and monopoly practices

207-4

Significant impacts of activities, products, and services－- Conservation of Biodiversity

on biodiversity

GRI 206: Anti-competitive Behavior 2016
206-1

- Conservation of Biodiversity

biodiversity value outside

and procedures
Confirmed incidents of corruption and actions taken

Operational sites owned, leased, managed in, or
adjacent to, protected areas and areas of highpolicies
205-3- Conservation of Water Resources > Trends in Volumeof Water Usage－

Proportion of spending on local suppliers

Operations assessed for risks related to corruption

Interactions with water as a shared resource

303-2

Environmental Laws and Regulations

GRI 205: Anti-corruption 2016
205-1

303-1

- Social Contribution

GRI 204: Procurement Practices 2016
204-1

- Environmental Burdens from Business Activities
Information）>Environment Data－

Ratios of standard entry level wage by gender

Energy consumption within the organization- Sustainability Data（Non-Financial－

Financial assistance received from government- Environmental Burdens from Business Activities

GRI 302: Energy 2016

GRI 202: Market Presence 2016
202-1

References

GRI 301: Materials 2016

April 1, 2021 to March 31, 2022)
201-3

Data

77

- Conservation of Biodiversity－

IndexEnvironment

Society

Governance

400 series (Social)

GRI 305: Emissions 2016
305-1

Direct (Scope 1) GHG emissions- Sustainability Data（Non-Financial

Disclosures

Information）>Environment Data
305-2

Energy indirect (Scope 2) GHG emissions
Other indirect (Scope 3) GHG emissions
GHG emissions intensity

305-5

Reduction of GHG emissions
Emissions of ozone-depleting substances (ODS)

305-7

Nitrogen oxides (NOX), sulfur oxides (SOX), and otherNew employee hires and employee turnover

401-2

Benefits provided to full-time employees that are not- Sustainability Data（Non-Financial
Information）>Global Human Resource Management- Sustainability Data（Non-Financial－

provided to temporary or part-time employees

Information）>Environment Data

305-6

401-1

- Sustainability Data（Non-Financial
Information）>Environment Data

305-4

References

GRI 401: Employment 2016

- Sustainability Data（Non-Financial
Information）>Environment Data

305-3

Data

401-3

Parental leave- Work-Life Balance > Initiatives that Consider Work-Life- Sustainability Data（Non-Financial

Balance

Information）>Environment Data

- Sustainability Data（Non-Financial－

Information）>Work-life BalanceManagement- Environmental Burdens from Business Activities

GRI 402: Labor/Management Relations 2016

significant air emissions

402-1

GRI 306: Effluents and Waste 2016－

Minimum notice periods regarding operational changes

GRI 403: Occupational Health and Safety 2018

Water discharge by quality and destination- Environmental Burdens from Business Activities

306-2

Waste by type and disposal method- Environmental Burdens from Business Activities

403-1

Occupational health and safety management system- Occupational Health and Safety > Promotion System306-3

Significant spills- Environmental Management > Compliance with

403-2

Hazard identification, risk assessment, and incident- Occupational Health and Safety > Promotion System

investigation- Diversity > Providing Workplaces Where Employees

306-1

Environmental Laws and Regulations

Can Continue to Exert Their Abilities- Sustainability Data（Non-Financial
Information）>Compliance with Environmental Laws

403-3

Occupational health services- Health Promotion Activities

and Regulations

403-4

Worker participation, consultation, and communication- Occupational Health and Safety > Promotion System

306-4

Transport of hazardous waste

－

306-5

Water bodies affected by water discharges and/or runoff－

on occupational health and safety
Worker training on occupational health and safety

403-6

Promotion of worker health- Health Promotion Activities

403-7

Prevention and mitigation of occupational health and- Occupational Health and Safety > Promotion Systemsafety impacts directly linked by business relationships- Health and Safety Activities > Risk Assessment (RA)

Education, Training and Enlightenment

GRI 307: Environmental Compliance 2016
307-1

Non-compliance with environmental laws and- Environmental Management > Compliance withregulations

Environmental Laws and Regulations- Sustainability Data（Non-Financial

Initiatives

Information）>Compliance with Environmental Laws

403-8

and Regulations

Workers covered by an occupational health and safety

403-9

Work-related injuries- Health and Safety Activities > Toward Elimination of
Occupational Accidents

New suppliers that were screened using environmental- Sustainability Data（Non-Financial

criteria
308-2- Occupational Health and Safety > Promotion Systemmanagement system

GRI 308: Supplier Environmental Assessment 2016308-1

- Health and Safety Activities > Enhancement of

403-5

Negative environmental impacts in the supply chain and- Proper Procurement > Promoting Responsible

actions taken

Procurement

Information）>Occupational Safety and Health403-10Work-related ill health- Health Promotion Activities- Sustainability Data（Non-Financial
Information）>Occupational Safety and Health78IndexEnvironment

Society

Governance

GRI 404: Training and Education 2016
404-1

Average hours of training per year per employee

GRI 412: Human Rights Assessment 2016
- Human Resource Development

412-1- Sustainability Data（Non-Financial
Programs for upgrading employee skills and transition- Human Resource Development

assistance programs- Diversity & Inclusion > Providing Workplaces Where

412-2
412-3

－

Significant investment agreements and contracts thatGRI 413: Local Communities 2016

GRI 405: Diversity and Equal Opportunity 2016
Diversity of governance bodies and employees- Respect for Human Rights

rights screening

and career development reviews

405-1

Employee training on human rights policies or

include human rights clauses or that underwent human－Percentage of employees receiving regular performance- Respect for Human Rights

procedures

Employees Can Continue to Exert Their Abilities
404-3

Operations that have been subject to human rights
reviews or impact assessments

Information）>Human Resource Development
404-2

Data

413-1
- Global Human Resource Management- Sustainability Data（Non-Financial

413-2

Information）>Global Human Resource Management

Operations with local community engagement, impact- Social Contribution

assessments, and development programs- Communication to Stakeholders－

Operations with significant actual and potential negative
impacts on local communities- Sustainability Data（Non-Financial
GRI 414: Supplier Social Assessment 2016

Information）>Diversity
405-2

Ratio of basic salary and remuneration of women to

－

men

414-1

New suppliers that were screened using social criteria- Proper Procurement

414-2

Negative social impacts in the supply chain and actions- Proper Procurement

taken

GRI 406: Non-discrimination 2016406-1

Incidents of discrimination and corrective actions taken

GRI 415: Public Policy 2016

－

415-1

GRI 407: Freedom of Association and Collective Bargaining 2016

Political contributions- Compliance > Initiatives to Prevent Corruption- Sustainability Data（Non-Financial

407-1

Operations and suppliers in which the right to freedom- Work-Life Balance > Labor -Management Relations

Information）>Complianceof association and collective bargaining may be at risk
GRI 416: Customer Health and Safety 2016
GRI 408: Child Labor 2016
416-1
408-1

Operations and suppliers at significant risk for incidents- Respect for Human Rightsof child labor

416-2

Operations and suppliers at significant risk for incidents

417-1

GRI 410: Security Practices 2016
Security personnel trained in human rights policies or

417-2

－

417-3

GRI 411: Rights of Indigenous Peoples 2016
Incidents of violations involving rights of indigenous－

Requirements for product and service information and- Environmentally-friendly Products > Development oflabeling

Environmentally Friendly Products

Incidents of non-compliance concerning product and－service information and labelingprocedures

411-1

Incidents of non-compliance concerning the health and

GRI 417: Marketing and Labeling 2016

- Respect for Human Rights

of forced or compulsory labor

410-1

－

safety impacts of products and services

GRI 409: Forced or Compulsory Labor 2016
409-1

Assessment of the health and safety impacts of productand service categories

Incidents of non-compliance concerning marketing－

communications－

GRI 418: Customer Privacy 2016

peoples

418-1

Substantiated complaints concerning breaches of－customer privacy and losses of customer data
GRI 419: Socioeconomic Compliance 2016
419-1

79

Non-compliance with laws and regulations in the socialand economic area－

Environment

Index

Society

Governance

SASB Content Index

Materials Efficiency

Percentage of

Data

TR-AP-440b.1

Not disclosed

TR-AP-440b.2

Not disclosed

TR-AP-520a.1

Not disclosed

Number of parts produced

TR-AP-000.A

Not disclosed

Weight of parts produced

TR-AP-000.B

Not disclosed

Area of manufacturing plants

TR-AP-000.C

products sold that arerecyclable*Information is disclosed in units different from those required by SASB.
Topic

Accounting Metric

SASB Code

Percentage of input
materials from

Unit ofReferences

Measurerecycled or
remanufactured

Energy Management(1) Total energy

TR-AP-130a.1

MWh*content

Sustainability Data (Non-Financial
Information) > Environment Data

consumed

Competitive Behavior

Environment > Environmental(2) percentage grid

MWh*Total amount ofmonetary losses as a

Burdens from Business Activities

result of legal

electricity

proceedings(3) percentage

associated withMWh*anticompetitive

renewable

behavior regulations
Waste Management(1) Total amount of

TR-AP-150a.1

ton

Sustainability Data (Non-Financial

waste from

Information) > Environment Data

manufacturing

Environment > Environmental
Burdens from Business Activities
Environment > Management of Waste(2) percentage

Not disclosed

thousands

Annual Securities Report (The 122ndof m2

Fiscal Year) > P.25, 3. Equipment andFacilities

hazardous

About Us > Global Networks％*(3) percentage

Product Safety

Number of recalls

Sustainability Data (Non-Financial
Information) > Environment Data

recycled
TR-AP-250a.1

NumberSustainability Data (Non-Financial
Information) > Product Quality

issued, total units
recalled％*

Priority Issues (Materiality)

Design for Fuel

Revenue from

Efficiency

products designed to

Sustainability Data (Non-Financial

increase fuel efficiency

Information) > Providing

and/or reduce

Environmentally Friendly Products

emissionsSociety > Development of

TR-AP-410a.1

Technologies, Products, andBusinesses for Contributing to the
Resolution of Social Issues
Materials Sourcing

Description of theDiscussion

Society > Proper Procurement >management of risks

andPromoting Responsible Procurement

associated with theAnalysis

Environment > Eco Vision > Ecouse of critical materials

TR-AP-440a.1

Vision 2030
Environment > Management ofChemical Substances > Handlingwithin the Group80

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1-1-1 Higashisakura, Higashi-ku, Nagoya 461-0005
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