Corporate Social Responsibility Report 2023

CSR Report2023

CSR Report 2023 Contents

About Nihon Nohyaku

About Nihon Nohyaku

01

CSR of Nihon Nohyaku

11

Philosophy Structure of the Nihon Nohyaku Group
Commitment of Top Management
The Business and Vision of the Nihon Nohyaku Group
Financial/Non-financial Highlights
Special feature: Diversity Discussion

Philosophy Structure of the
Nihon Nohyaku Group

Approach to CSR in the Nihon Nohyaku Group
Participation in Initiatives/External Evaluation

Creating New Agrochemicals andCrop Aid Products to Improve theQuality of Life for All

Environment

Raising the Level of Environmental
Management

16

Expansion of Human Rights Management

19

Enhancing the Safety Culture

22

Development of Technologies andProducts that Meet Needs of Society

25

Community Involvement27

Response to Climate Change
Environmental Conservation

SocialThe Nihon Nohyaku Group has established the “CSR Basic Policy” and organized andrestructured the philosophy structure by positioning it as the background (backbone) of theexisting Basic Principles, Action Charter, and Group Vision. In March 2022, the Group applied for
and was approved to sign the United Nations Global Compact, as it is in line with the philosophy
and corporate stance that the Nihon Nohyaku Group has upheld since its founding, as afundamental way to promote our growth strategy for becoming a global company.

Human Rights Management
Human Resources Management
Creating a Comfortable Work Environment

Occupational Safety & Health, Process Safety &Disaster Prevention
Product Stewardship(Chemical Materials & Product Safety)
Supply Chain Management
Logistics Safety
Quality Management

Philosophy Structure

Product Development
Activities toward Advanced Technologies

The Basic Principles of the Nihon Nohyaku
Group
Basic Principles

CSR Basic Policy

Philosophy(Group’s raison d’etre, purpose, and value)

Contributing to food and theenvironment / society throughtechnological innovation
Based on the Nihon Nohyaku Group Basic
Principles, we will contribute to society
through continuous challenges to ensuresufficient food supply by innovativetechnologies and to protect affluent
lifestyles and the environment.

Action Charter(Action Charter based on the Basic Principles)	We contribute to society by ensuring a safe and steadyfood supply and improving the quality of life for all.
We fulfill market needs by creating superior values with
innovative technologies.
We commit to be a trustworthy company for all stakeholders
through our fair and vigorous business activities.

The Nihon Nohyaku Group Action Charter
1 We improve the quality of life for all by providing safe andeffective products and services that satisfy our customers.

2 We conduct fair and transparent business operations,

respecting social ethics and complying with related laws,
regulations and the spirit thereof.

Vision(Growing Global)

3 We contribute to the realization of a sustainable society,considering the global environment.

4 We actively communicate and contribute to ourBusiness Plan

communities as a good corporate citizen.

CSR
activities

Medium-Term
Management Plan
Management Policy and Business Plan (Annual)(Measures to realize the Basic Principles)

5 We properly manage corporate information and disclose it

in a timely and appropriate manner.

6 We recognize the importance of personal data, intellectual

property and other information, and safeguard it underproper protection and management.

7  We ensure a safe and comfortable work environment forour employees, always respecting human rights and thediversity in people and cultures.

Dialogue with Stakeholders

Governance Strengthening Corporate andOrganizational GovernanceCorporate Governance

Overall ESG Expansion of Compliance and Risk

Management

9 We contribute to the development of each country and

About CSR (Corporate Social Responsibility)
CSR is the general term for activities focused on achieving sustainable development for the company and society based on the philosophy that the responsibility of acorporation is not simply to adhere to the law and pursue profits for the company, but also to fulfill responsibilities to society based on an ethical code. Based on the Basic
Principles, the Nihon Nohyaku Group is pushing forward the establishment of a CSR promotion system.

01

NIHON NOHYAKU CO.,LTD.

region in line with globalization, adhering to internationalrules as well as local laws, culture and customs.

10  We promote the sound and sustainable growth of NichinoGroup for social contribution.

31

Compliance
Risk Management

Company Overview and List of The Nihon Nohyaku
Group Companies
Third-Party Opinion and Third-Party Verification

33
34

For detailed CSR information, please refer to the CSR
section of our website, and for main ESG data, pleaserefer to the “CSR Report 2023 Data Sheet” on our website.
Online CSR section of our website
https://www.nichino.co.jp/en/csr/index.html
PDF CSR Data Book
https://www.nichino.co.jp/en/csr/csr_data.html

Editorial Policy
This CSR Report summarizes The Nihon Nohyaku Group activities using thefollowing as references: Environmental Reporting Guidelines (2018) by the GRI
Standards and the Japanese Ministry of the Environment, Environmental
Accounting Guidelines (2003) by the Japan Chemical Industry Association(JCIA), and JIS Z 26000: 2012 Guidance on Social Responsibility by theJapanese Standards Association, etc.
Scope of
Applicability

Unless otherwise noted, performance data is from Nihon
Nohyaku Co., Ltd. and Nichino Service Co., Ltd. Unlessotherwise noted, the scope of applicability of the Nihon Nohyaku
Group covers Nihon Nohyaku Co., Ltd. and nine consolidated
Group companies.

Data
Aggregation
PeriodUnless otherwise noted, the 2022 fiscal year (the 124th fiscal
year, April 2022 to March 2023, denoted in this text simply as“fiscal year”). Capital, numbers of employees, net sales, etc.,
displayed in this text are as of end of March 2023.

Issue

September 2023 (Next: Planned for September 2024)

8  We entirely exclude involvement with antisocial forces andorganizations, and resolutely refuse unreasonable requests.

29* Pursuant to the Partial Amendment to the Articles of Incorporation approved at the 120th
Ordinary General Meeting of Shareholders held on December 20, 2019, Nihon
Nohyaku has changed its fiscal year end from September 30 to March 31, effectivefrom the 121st fiscal year.
Corporate Social Responsibility Report 2023

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About Nihon Nohyaku

Commitment of Top Management
Please see the CSR section of our website for the full version.
https://www.nichino.co.jp/en/csr/csr_message.html

Solidifying our Position asa “Global Innovatorfor Crop & Life”

Hiroyuki Iwata

President and Representative Director

Achievement of the SDGs through business activities
Nihon Nohyaku was established in 1928 as the first agrochemical manufacturer in Japan and has developed overtime with a core business of research and development, manufacture, sales, and promotion of agrochemicals in orderto protect crops from pest infestations and weeds. Over the course of its history, Nihon Nohyaku has contributed
greatly to the stable supply of food by ensuring crop yields and improving quality. The agrochemical business is directly
connected to agricultural production, which is essential to human survival and activity, and further is deeply related topeople’s dietary lifestyles.
Interpreting the contents of the “2030 Agenda” adopted at the United Nations Summit in 2015 and the “SDG
Compass,” created to assist companies, chemical companies are strongly called upon to actively participate and todemonstrate and develop their technological capabilities to simultaneously solve the two global-level issues of poverty
and the environment.
The mission of the Nihon Nohyaku Group is to tackle urgent social issues at the global level and respond to theincreasing demand for solutions, which means ensuring a safe and steady food supply as stated in our corporate
philosophy. We are engaged in a new growth strategy with strong confidence and pride in the fact that the Group’sbusiness is fully capable of fulfilling this mission.

Promoting CSR management to raise corporate value
Corporate value is raised by contributing to all stakeholders through business activities and by helping to build asustainable society. Since its founding, Nihon Nohyaku has developed its business through various phases with anawareness of its relationship to society and the environment. In particular, scientific thought related to safetyassessment standards for products continues to be passed down today as the foundation of an R&D-driven company.
We believe that the continued expansion of R&D is a major driving force for raising corporate value.
With CSR becoming a requirement of society starting in the 2000s, the spread of ESG investment, the SDGs being
adopted by the United Nations in 2015, and the Corporate Governance Code being established, Nihon Nohyaku for its
part has worked to build a CSR promotion system and reinforce its functions.
We built the framework of our CSR promotion system in October 2020 and then formulated our CSR Basic Policy,
Seven Priority Issues, and our Ideal business model for 2030, and also KGI, KPI and action plans as part of ourcurrent medium-term management plan to 2023 in support of them. The Group CSR Basic Policy has been made thebackbone of our Basic Principles, Action Charter, and Group Vision, meaning CSR activities are positioned as thefoundation of management. We have clearly stated that we will promote CSR management based on both economic
value, the original purpose of a company, and social value, which can be difficult to visualize, and will contribute to asustainable society.

Selection and progress of Seven Priority Issues
We have established the Seven Priority Issues based on their importance to the Group’s business and are striving to
put CSR into practice. The progress made in the past year is as follows.

Contributing to solving global food problems
The state of the world recently, to put it briefly, continues to be in a period of major transformation, and rapid, diversechanges are likely to take place going forward beyond levels already seen.
Among them, one issue directly related to the business of the Nihon Nohyaku Group is the increasing population andthe food problems that result. The world’s population has topped 8.0 billion people, and it is said that around 10% face
starvation. The food problem, including food security, is garnering close attention. Another issue is the impact ofclimate change on the environment and agricultural production. Global warming inhibits the growth of certain crops andcauses changes in the occurrence of pest infestations and weeds, raising the question of how to ensure stable,
sustained food production.

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NIHON NOHYAKU CO.,LTD.

E: Raising the level of environmental management(environmental conservation, RC activities)
As of 2021, we added “set and manage numerical targets to reduce environmental impact” as one of ourmajor initiatives with an awareness of our coordination with overseas sites in India, Brazil, and elsewhere
through consolidated management. In Japan, joint work between the Production Division and Group company
Nichino Service became a strong driving force.
In addition, in February of last year, the Nihon Nohyaku Group announced a GHG reduction policy timed toour declaration of support for TCFD. Presentation of a Group policy represents major progress in ourenvironmental initiatives.
We plan to achieve carbon neutral by 2050 in Japan and Brazil and by 2070 in India. These dates are in linewith the goals of the countries’ governments.

Corporate Social Responsibility Report 2023

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About Nihon Nohyaku

Commitment of Top Management
S: Expansion of human rights management(D&I, human resource development)This term we formulated overall action plans regarding human rights due diligence. The human rights policy is
the most important aspect of these plans, and going forward we will put them into concrete form on an
expedited basis.
In addition, based on the Basic Procurement Policy related to human rights protections on the supply chain,
we administered a procurement questionnaire survey to our domestic suppliers. As a result, we were able toanalyze the initiatives of the companies at a certain level and clearly present a stance toward initiatives for ourown CSR management. We recognize that there is room for improvement in the survey method, but one
positive result was how the questionnaire helped us identify issues while providing hints for the next stage.
In connection with promoting women’s participation and advancement in the workplace, we did not fully
achieve our numerical targets for the rate of female managers and other goals, but there has been
improvement over time. We are also involved in initiatives for human resources development and personnel
exchange at the global level.

S: Enhancing the safety culture (occupational safety & health, product safety)
Regarding product safety, we have made a certain amount of progress through such measures as
maintaining related product and quality management systems. At the same time, in light of the serious accident
that occurred at an overseas manufacturing site, we have reorganized the previous Environmental Safety
Department into the Environment Safety & Quality Assurance Department to fortify supervision and control
functions with respect to safety.

S: Development of technologies and products that meet needs of society(pursue to satisfy our customers)
With reducing agrochemicals becoming a policy globally, Nihon Nohyaku announced its intention last year todevelop eco-harmonized products. This applies to the new field of crop aid products like biopesticides andbiostimulants as well as to chemically synthesized agrochemicals, so for us, as a dedicated agrochemical
manufacturer, we have set a lofty goal. Discussions on their definition and selection criteria are in progress.
Through the development of technologies for labor-saving and for reducing environmental impact, we haveobtained results that are nearly in line with our numerical targets. In addition, for our AI app for pest infestation
and weed diagnosis, which supports the expansion of smart farming, we further enhanced its functions andsteadily expanded it to Group companies at overseas sites in Asia and also in the segment of sanitary pests.

S: Community involvement (dialogue with stakeholders)Currently, with the full-fledged development of the Group’s CSR activities, we have been working to provide
appropriate information. Last year, we worked to revise our CSR Report and the CSR section of our website,which are the most effective tools for communicating information, in line with the standards of the Global
Reporting Initiative (GRI).
In addition, with a view to reinforcing global branding, we consolidated the Group’s logo through an in-housepromotion project related to overseas business development.

G: Strengthening corporate and organizational governance(corporate governance, CSR management)
To strengthen our governance system, we have made multifaceted considerations that have included an
independent survey on the efficiency of audits and the effectiveness of the Board of Directors. We will continue
to consider the establishment and reinforcement of governance systems at overseas Group companies as ameans of promoting consolidated management and responding to globalization.

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NIHON NOHYAKU CO.,LTD.

ESG-wide: E xpansion of compliance and risk management(sustainability management, BCP)
For compliance and risk management, we worked to visualize issues and measures among Group
companies to strengthen consolidated management. Bolstering functions on a cross-organizational basis will be
more and more important in the future.
Moreover, as demands for information disclosure related to CSR and ESG management increase, based on theGroup’s promotion policy for CSR management, we have responded to a variety of external initiatives that haveincluded giving our signature to the United Nations Global Compact and expressing our support for the Task Forceon Climate-related Financial Disclosures (TCFD). We believe that appropriately communicating activities related to
CSR promotion to all stakeholders also serves to increase the transparency of management.

Toward global growth
In FY2023 (125th fiscal year), the last year of our medium-term management plan, we will work for sustainablegrowth by achieving our forecasts of consolidated net sales of 104.5 billion yen, an increase year on year, andconsolidated operating profit of 8.3 billion yen. In our domestic sales activities, the foundation of Nihon Nohyaku, wewill collaborate and promote the sale of proprietary products and Corteva products, and in overseas sales activities,
which are our growth driver, we will further bolster sales and expand our area. We will actively expand our business allover the world. Moreover, by strengthening coordination with Group companies and working to bring active ingredientproduction in-house and reduce costs via purchasing on advantageous terms, we will ensure a resilient managementfoundation and a stable earnings structure that are resistant to global inflation and exchange rate fluctuations.
As for new fields, we will work to establish semi-fermented production technology and quickly commercialize
businesses for pharmaceuticals, animal health products, biopesticides, and crop aid products. In industrial andpharmaceuticals sales, we will harness new ideas not bound by current convention. Moreover, domestic Group
companies will leverage their strengths for further growth. This area is expected to drive the Group overall not only inexisting business but through expanding our domain as well. With the further development of DX, we will realize smart
agriculture, smart factories, R&D promotion, appropriate inventory management, and also reinforcement of business
infrastructure through more transparent Group company management.
We will also focus on promoting CSR and ESG management and plan to strengthen the “NICHINO” brand and set
goals for and disclose non-financial information. The Nihon Nohyaku Group will tackle these issues on a unified basis
and achieve sustainable increases to corporate value, which will lead to our new medium-term management plan.
Since its founding, Nihon Nohyaku has contributed to stable food production by providing agrochemical products toeliminate pest infestations and weeds. These business activities themselves contribute to CSR and stand as our raisond’être, a fact we are proud of. Going forward, under our corporate statement of “Global Innovator for Crop & Life,” wewill continue to provide advanced technologies that meet societal needs in a wide range of fields, agrochemicals firstand foremost, but also pharmaceuticals and animal health products. We will take on challenges to ensure a stable foodsupply and improve quality of life. And through our CSR activities, we will contribute to the realization of a sustainable
society.
Corporate Social Responsibility Report 2023

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About Nihon Nohyaku

The Business and Vision of the Nihon Nohyaku Group

Financial/Non-financial Highlights

About the Nihon Nohyaku Group

Summary of Performance Results from FY2018 to FY2022 (Consolidated)Nihon Nohyaku was established in 1928 as the first Japanese agrochemical manufacturer. Since our founding, Nihon
Nohyaku has been working on technological innovation in its core business involving research and development, andpromotion of agrochemicals, with the mission of ensuring a safe and steady food supply and improving the quality of life
for all. As a “Global Innovator for Crop & Life,” we will continue to take on the challenge of creating new value by
providing advanced technologies and contribute to a sustainable society through our business activities.

Main financial data

Sep. 2019

Mainstay products

Domestic
agrochemical
sales

Other chemical
products
excludingagrochemicals

Overseas
agrochemicalsales

The Nihon Nohyaku Group Vision

Nichino Group - Growing Global
 upporting agricultural production and healthy lifestyles by providingS
advanced technologies that meet customer needs, such as new
agrochemicals, pharmaceuticals, and animal health products
Contributing to a sustainable society by expanding products and services
that contribute to the SDGs (Eco-harmonized products and labor-saving
technologies)

Contribution
Socialcontributions

Corporate Statement“Global Innovator for Crop & Life”

Creation

63.2

35.6

71.5

80.1

102.0

Operating profit (billion yen)

3.3

4.0

6.9

5.7

8.7

Ordinary profit (billion yen)

2.9

4.0

5.7

5.6

7.7

Profit attributable to owners of parent(billion yen)

2.6

1.4

4.3

4.4

4.4

ROE (%)

4.8

2.6

7.4

7.0

6.6

Net assets (billion yen)

58.1

58.3

62.0

66.9

73.1

Total assets (billion yen)

94.4

102.2

107.9

118.2

136.6

Equity ratio (%)

59.5

55.2

56.4

55.5

51.9

Earnings per share (yen)

34.07

18.75

55.23

56.08

57.23

Net assets per share (yen)713.99716.47774.76836.39904.26

Sep. 2019

Earnings

Earnings
improvement

1.7%

Greening andgardening
construction, realestate leasing,agrochemical
residue analysis,etc.
Netbillion yen
sales:

1.7

Other
agrochemicals

1.8%
Net sales:

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NIHON NOHYAKU CO.,LTD.

72.6 billion yen
Asia
24.7%
Americas 54.5%
Europe19.4%
Other regions 1.4%

Net sales:

Sales composition
by business division
for FY2022

1.8

Other chemical products
excluding agrochemicals

3.7%

Net sales:billion yen

3.7 billion yen

14overseas Group
companies** Total of subsidiaries and affiliatedcompanies

Mar. 2023

Mar. 2022

381

379

382

375

1,472

1,451

1,484

1,536

1,567

21.3

21.3

23.1

24.6

23.5

7.1

7.4

8.8

8.3

8.4

10.8

5.9

12.1

11.4

13.8*4Rate of male employees taking paternity
leave*5 (Nihon Nohyaku Co., Ltd.) (%)

29

100

100

50

55

Number of male employees eligible forpaternity leave (persons)

17

7

9

10

9

Number of male employees taking
paternity leave (persons)

5

7

9

5

5

Number of patent applications filed(Nihon Nohyaku Co., Ltd.) (number)

98

20

55

124

77

Patent applications filed in Japan (number)

17

10

11

29

63

Patent applications filed outside Japan(number)*6

81

10

44

95

14

R&D expenses (Group consolidated) (million yen)

4,452

2,144

4,461

4,681

5,211

Charitable donations

11,200700

9,510

10,9009,950— Group consolidated (persons)Rate of female employees*2(Nihon Nohyaku Co., Ltd.) (%)

Rate of female managers*3(Nihon Nohyaku Co., Ltd.) (days)

71.2%

Other

Mar. 2021

395

Paid leave days used*2

Overseas agrochemical sales

22.1 billion yen

Mar. 2020*1

Non-financial data

— Nihon Nohyaku Co., Ltd. (persons)Status by business division

Net sales:

Mar. 2023

Mar. 2022

Number of employees*2

Global Expansion of Nihon Nohyaku

21.6%

Mar. 2021

Net sales (billion yen)

(Nihon Nohyaku Co., Ltd.) (%)

Domestic agrochemical
sales

Mar. 2020*1

5

domestic Group
companies(Nihon Nohyaku Co., Ltd.) (thousand yen)

*1 For FY2019, represents the period from October 1, 2019 to March 31, 2020 due to the change of fiscal year end.
*2 Applies to regular full-time and temporary full-time employees, and does not include contract employees.
*3 Includes seconded employees.
*4 Applies to all employees, including contract employees.
*5 Applies to all employees, including contract employees. Female employee maternity leave usage rate was 100%.
*6 Number of PCT international applications filed (by transfer country basis) + Paris route or number of standard applications filed.
Corporate Social Responsibility Report 2023

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About Nihon Nohyaku

Special feature: Diversity Discussion

Discussion Members

Please see the CSR section of our website for the full version.
https://www.nichino.co.jp/en/csr/csr_diversity.html

Thinking about diversity at Nihon Nohyaku
People with diverse backgrounds play an active role at Nihon Nohyaku. We gathered employees born
outside Japan, in charge of overseas business, and working in other countries for an online discussion.

Aiming to Be a Global Innovator
I think Nihon Nohyaku’s strengths are that it
has its own active ingredients and it is an R&D-driven
company that can continuously create new products.
What is the company’s position in the countries where
you work?
Tanimura   In India, Japan has considerable brand powerand Nichino India (NIN) is showing rapid growth, so it is
known as a vibrant company. Some of our employees
came from multinational companies in the same industry.
Zhou   Japan has a good image in Europe as well, but
the local multinational companies are dominant in themarket. We target niche markets and focus efforts onproviding technological support to farms with the aim of
expanding the market share.
Ikuta Nichino America (NAI) is small but we provide
flexible support in close communication with customers.
Our goal is to become a respected leader in the US
agrochemical industry.
Bonnaud I have only been in the agrochemical industry
for a year and a half, so I don’t know much about global
circumstances yet. I’m still learning.
Aoki
You should visit as many Group companies
outside Japan as you can. Considering that our aim as
a company is to be a “Global Innovator,” what specificactivities are your companies undertaking?
Tanimura   Besides working to increase sales in the Indian
market, we are the only Group company outside Japanthat manufactures active ingredients for agrochemicals,
Aoki

Miyako Aoki
so one of our goals right now is to supply intermediates
and active ingredients within the Group at lower cost.
Zhou   Nichino Europe (NEU) is mainly a BtoB
company, so it is not widely recognized by consumers.
We work to spread the Nichino brand among farmers.
Bonnaud   The Global Strategy Project (GSP) is being
implemented by members across the company, and I
joined it one year ago. In the GSP, I worked onstandardizing the global group logo to spread thebrand.
Ikuta
The GSP aims for simultaneous global
development through collaboration among Group
companies, and members from each country meet
regularly in the Regulatory Affairs Department to share
information.

Bridging Culture Gaps
Aoki

  Do you experience culture gaps at work?

Tanimura   I’ve never felt totally bewildered before, but I do

feel there are cultural differences with Japan. People inIndia often say “I can do it,” but don’t if I just wait, so I
have to keep pressing them over and over.
Zhou   In Europe people say clearly whether they canor can’t do something. If I ask, “Can you do this bytomorrow?” they usually respond straightforwardly, “I’ll
do it next week.” It goes well if I give plenty of time.
Bonnaud There are miscommunication and culturaldifferences at times, but I don’t experience much culture

OnlineDiscussion

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NIHON NOHYAKU CO.,LTD.

Miyako Aoki joined Nihon
Nohyaku after completing
graduate school. For nine
years she worked in herbicide
R&D at the Research Center.
Aoki transferred to sales andworked for three years in the
Industrial (TG AIs) Sales
Department and for overseas
sales for 17 years. Since April
2023, she has served as
General Manager of theSales Department, EAME &Americas.

Melissa Bonnaud

Born in France, Melissa
Bonnaud worked in France,
South Korea, and thePhilippines after completing
graduate school. She cameto Japan three and a halfyears ago. After working at auniversity, she joined Nihon
Nohyaku in 2021. Today
Bonnaud works in the
Affiliate Administration Groupof the Corporate Planning
Department.

Ji Zhou

Born in China, Ji Zhou joined
Nihon Nohyaku in 2015. Heworked in insecticide
development for two years at
the Research Center. Zhou
then transferred to theOverseas Division, and afterworking in the Technical
Service & Promotion andAsia Sales Departments, he
was assigned to Nichino
Europe (NEU) in April 2022.

shock here. When I’m having difficulties with
communication, I try to talk with those around me. One
thing that was a culture shock for me was that they havea lot of meetings in Japan. I’ve gotten used to it, though.
Ikuta
There is a language barrier, though, and it
takes a long time for me to understand, especially inmeetings. But my coworkers are all kind and are evenattentive outside work, so they’re a great help.
Aoki
With the advancement of globalization,
recently the company has been flexibly assigning talentregardless of nationality or career history. What kind of
support do your companies offer?
Bonnaud   The atmosphere at work makes it easy to talkto others, and there is a system in place where workers
are asked what their wishes are at MBO meetings, so I
think it is fairer than other companies. It is hard to write
documents in Japanese, though.
Zhou   Although it’s different from Japan’s, NEU also
has an employee performance review system andstandards. I think it is a harmonious company whereindividual differences are considered a given since
there are people there from all over Europe.
Tanimura With regard to NIN, I think it’s necessary toalign our human resources system with global
standards. The Nihon Nohyaku head office is moving
forward with discussions on a global personnel system,so there may be discussions in the future about revising
the system in alignment with their actions.
Ikuta   In terms of women’s empowerment, many
people take business trips or are assigned to positions
overseas, so I think we’ve been given equal
opportunity.
Aoki   When I first joined the company, we rarely
allowed women to take overseas business trips alone
because it was “dangerous,” but that has changed
significantly.

Hiroshi Tanimura

After graduating university,
Hiroshi Tanimura worked inaccounting for 10 years at amachinery manufacturer. He
then obtained an MBA andjoined Nihon Nohyaku.
Tanimura first worked in the
Corporate Planning andAccounting Departments,
and was assigned to Nichino
India (NIN) in 2022.

Junko Ikuta

Junko Ikuta joined Nihon
Nohyaku in 2007 after
completing graduate school.
After working in aquaticorganism research at the
Research Center, she was
responsible for assessing theimpact on environmentalorganisms at the Regulatory
Affairs Department. Ikuta
was assigned to Nichino
America (NAI) in November
2022.

Achieving Further Diversity
What challenges and expectations do you
have to achieve further growth in terms of diversity?
Tanimura   First and foremost, we want to increase
revenue more in line with the growth of India’s vast
market. That would contribute to the advancement ofIndia’s agriculture and economy, and also increase what
we can provide to the Group.
Zhou   When you go to another country, the view isdifferent than when you are in Japan. I don’t get muchinformation from the Head Office and sometimes
receive requests without any background information. I
would like to act as a go-between to promote goodcommunication with Japan to ensure employees inother countries understand and are satisfied.
Ikuta
Yeah, from the perspective of overseas Group
companies, it’s hard to speak candidly with the parent
company. Personally, I’ve always felt that the terms“parent company” and “subsidiary” bring to mind ahierarchical relationship. Given our emphasis on groupmanagement now, I think maybe we should start using
the term “Group companies.”
Bonnaud   In order to generate Group synergy, we needto share a wide range of knowledge and experiences. I
believe we need to increase diversity further in Japan
as well, which includes women and foreign nationals. I
think we should convey to more people that we have a
comfortable work environment where employees canflexibly utilize flextime, teleworking, and so on. In fact,many of my friends have said they are jealous of me.
Aoki
I agree. If every individual plays an active role,
I think it will lead to driving diversity. For me, I used to
be a researcher, so I hope to contribute to agriculture
worldwide through the development of safe and helpful
agrochemicals.
Aoki

Corporate Social Responsibility Report 2023

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CSR of Nihon Nohyaku

Approach to CSR in the Nihon Nohyaku GroupOne of the core management policies of the medium-term management plan “Ensuring Growing Global 2 (EGG2)” is“sustainable growth in corporate value,” and the Nihon Nohyaku Group has expressed to strengthen CSR and ESG
management through CSR activities.

CSR Promotion System (as of June 21, 2023)
Audit and Supervisory
Committee

Board of Directors

Contributing to a sustainable society by supporting
agricultural production and healthy lifestyles

President

Expansionof CSR Management

Board of Executive Officers

CSR Committee

Synchronous initiatives

Pursuit of economic value

Administered by CSR Promotion Dept.

Pursuit of social value(financial side)

Internal Control &Audit Dept.

(non-financial side)

CSR Working Group (CSR-WG)

Three basic policies (medium-term management plan: EGG2)

CSR Basic Policy
In 2020, the Nihon Nohyaku Group established a CSR Basic Policy to reconstruct its philosophy structure.
Accordingly, we have constructed the foundation of our CSR activities as a Group, and in November 2021, we newly
established the “Nihon Nohyaku Group Basic Procurement Policy”. In addition, we have shared our CSR promotion
policy with four domestic Group companies and ten overseas Group companies so far, and have established a system
for full-scale deployment of “the Nihon Nohyaku Group CSR activities.”

CSR Basic Policy“Contributing to Food, Environment and Society through Technological Innovation”

Based on the Nihon Nohyaku Group Basic Principles, we will contribute to society throughcontinuous challenges to ensure sufficient food supply by innovative technologies and to protect
affluent lifestyles and the environment.

Responsible Care Promotion
Committee

Selection of the Seven Priority Issues(Materiality)
To select material issues, we first comprehensively
identified CSR-related subjects and issues, and thencreated a comparison table based on the seven core
subjects of the ISO26000 global CSR guidelines (Step 1).
Next, we grouped like items and reanalyzed them inaccordance with their importance to corporate
management and stakeholders (Step 2). Based on the
results, we selected seven material issues we refer to as“Seven Priority Issues.” Then, after gradual discussions by
the CSR-WG and CSR Committee and advice from theBoard of Directors, we finalized the Seven Priority Issues.
In addition, we established the “Ideal business model for2030” and the key tasks and targets (KGI/KPI) for the
EGG2 medium-term management plan (2021-2023) at thesame time (Step 3).

(III)
Big

 trengthening CSR activities andS
ESG management
Promotion of operational reform andworkstyle reform

Risk Management Committee

Human Rights and Labor
Practices Subcommittee

(II)

(I)

[Vertical Axis] Importance to management(Big) Impacts business continuity(Medium) Directly impacts business performance(Small) Indirectly impacts business performance

(VI)

(V)

(IV)

(VIII)(VII)

Medium romotion and global expansion ofP
R&D
 Expansion into fields of biopesticides
and crop aid products
DX initiatives

Compliance Committee(IX)[Horizontal Axis] Importance to stakeholders(Big) Direct impact(Medium) Indirect impact(Small) Ripple effectSmall xpansion of priority productsECost reduction through optimal
active ingredient manufacturingsystemsExpansion of group synergies

Sustainable growth incorporate value

Importance to management

Improvement of profitability

Technological innovationand establishment of nextgeneration businesses

Small

MediumBig

Importance to stakeholders

CSR Promotion System and Functions
Nihon Nohyaku has established the CSR Committee as a function on the same level as the Board of Executive
Officers* in order to expand CSR activities. The CSR Committee supervises the activities of the three Committees ofCompliance, Risk Management, and RC Promotion, as well as internal control evaluations related to financial reporting(Internal Control & Audit Department). The Committee’s purpose is to supervise CSR activities through business anddeliberate and approve important policies and issues. Moreover, as a task force, the CSR Working Group (CSR-WG) andits Human Rights and Labor Practices Subcommittee hold regular meetings to promote effective CSR activities. We alsoestablished the CSR Promotion Department as an independent organization in charge of the CSR activities of the entire
Group, and we further enhance CSR activities by strengthening the functions of the CSR Committee and the CSR-WG
administrative office, as well as conducting educational activities for employees.
In expanding this to each Group company, including overseas locations, we reaffirmed the significance of CSR
activities and promotion policies through the Group CSR Meeting, and shared the status of each company’s activities. We
aim to conduct CSR management from a global perspective in a way that allows Group companies to collaboratively
participate while considering the CSR situation in each country and the state of activities at each company.

Priority classification

Priority issues

SectionsIRelatively high priority issues

II, IV, V

High priority issues from a management perspective

III, VI

High priority issues from a stakeholder perspective

VII, VIII

 Low priority issues for the time being

IX* Newly established in June 2023 following the abolishment of the Management Committee

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CSR of Nihon Nohyaku

Approach to CSR in the Nihon Nohyaku Group
Responsible Care Activities

Results of Key Activities for FY2022

Responsible Care Promotion System
Regarding Responsible Care (RC) activities, the RC Promotion Committee coordinates overall activities of the Group, while its
subcommittees promote activities in their respective fields. The three subcommittees are: the Safety and Health Supervisors Subcommittee,
the Environment Management Subcommittee, and the Safety Promotion Subcommittee. Additionally, we are engaged in Responsible Care
activities under the CSR Promotion System supervised by the “CSR Committee” established in October 2020.

Level of Achievement of Seven Priority Issues and Key Initiatives in the Current Medium-Term Management Plan (FY2022)

Responsible Care Promotion System
Subcommittee
Safety and HealthSupervisors Subcommittee
Environment Management
Subcommittee

CSR Committee
RC Promotion Committee
Safety and Health Supervisors
Subcommittee

Progress went smoothly overall, particularly for projects with KGI/KPIs to be achieved by the end of FY2023, thefinal year of the EGG2 medium-term management plan. Working groups related to relevant issues and other teams
moved forward with systematic activities in cooperation with key departments in accordance with the activity policy of
the CSR Promotion Department.

Environment Management
Subcommittee

Certified Management System
The companies and offices listed in
the table on the right have received
ISO management system
certifications, and the Group carries
out Responsible Care activities basedon these management systems.

Safety Promotion Subcommittee

Safety Promotion
Subcommittee

RC Code Assigned
Occupational Safety & Health, Process
Safety & Disaster Prevention
Environmental Conservation
Logistics Safety, Product Stewardship(Chemical Materials and Product Safety;
including quality management andpoisonous materials management),
Communication with Society

Area

Seven priority issues

E

Raising the level ofenvironmental
management

Environment Environmental

conservation, RC activities

Main KGI/KPIs of medium-term
management plan up to FY2023**1
GHG reduction:
7.2% lower than FY2020 globally and27.0% lower than FY2013 in Japan
Energy conservation (plants/offices in Japan):
Reduce efficiency of energy consumption anaverage of 1% over five years
Modal shift rate: 20%

Relationship with
SDGs

Level of Achievement in FY2022**2
Global: +5.6% () / Japan: -27.3% ()

Nihon Nohyaku Co., Ltd.: +0.3% (Service Co., Ltd.: -3.4% ( )) / Nichino

Nichino Service Co., Ltd.: 19.1% (/)

List of management system certifications
International standards
ISO 9001 (Quality Management System)
ISO 14001 (Environment Management System)
ISO 45001 (Occupational Safety & Health Management System)
ISO 17025(General requirements for the competence of testing andcalibration laboratories)

Expansion of humanrights management

Company name (applicable office)Nichino Service Co., Ltd.
Nichino India Pvt. Ltd.
Sipcam Nichino Brasil S.A.
Nihon Ecotech Co., Ltd.
(Osaka and Fukushima Analytical
Technology Centers)

Diversity & inclusion (D&I),
human resource
development

Enhancing the safety
cultureSDGs Map
The agrochemical business at the core of the Nihon Nohyaku Group is a business that has been aimed front and center at solving problems
through “technological innovation” with consideration for both “overcoming poverty and hunger” and “realizing environmental conservation,”
which come from the fundamental philosophy of the SDGs. Therefore, we surveyed initiatives being conducted by our business departments anddomestic and overseas Group companies and rendered this information visually in the form of an SDGs map.*

S

Society

SDGs Map of the Nihon Nohyaku Group

8.4% () as of March 2023

1.67% () in FY2022

Zero (0) occupational/commuting accidents3 accidents with workdays lost (including 1 inaffiliated company)/ 3 accidents without workdays
lost in Japan ( )Zero (0) product recalls in Japan ( )Occupational safety &health, product safety

Zero (0) product recalls

Development oftechnologies andproducts that meetneeds of society ommercialize non-chemically synthesizedCpesticides
Consolidated net sales:
400 million yen in biopesticides and 300 million yen
in biostimulants
Expand application of AI diagnostics app LeiMe to
20 crops

L aunched “Frost Buster,” an anti-frost agent derived
from natural materials ( )Evaluation ongoing (scheduled for FY2023 launch)( )Disclosure:
Systematically comply with GRI standards
Branding:
Improve awareness of company name and logo
and advertising reach (Nikkei Inc.) compared to theprevious year

Gradually revamping CSR Report 2022 (Pursue to satisfy ourcustomers

Foundation for Sustainable Business Promotion G ate of female managers: 13% (Nihon Nohyaku
RCo., Ltd.)Percentage of employees with disabilities: legal
mandate of 2.3% by FY2023 (Nihon Nohyaku Co.,Ltd.)

 umber of applicable crops for LeiMe: 19 ( / )NExpanded overseas locations for LeiMe and its
application to sanitary insect pests ( )Pursuit of transparency/equity and partnerships
Peace, Justice and Strong Institutions

Legal compliance and establishment of remediation system
Management of labor practices via CSR-related
Procurement Questionnaire Survey

Sustainable Economic Growth S

Pursuit of technological innovation andrealization of solutions

Partnerships for the Goals

Contribution to agricultural production in each country
Establishment of fair global partnerships

Requirements for Sustainable Society S

Construction of social mechanisms and dailyliving/activities infrastructure

Sustainable Life Requirements E

Promotion of harmony with nature andenvironmental conservation/improvement

Decent Work and Economic Growth

Zero Hunger

Clean Water and Sanitation

Industry, Innovation and Infrastructure

Good Health and Well-Being

Affordable and Clean Energy

Crop protection and improved agricultural
productivity through technologicalinnovation

Advanced development of smart agriculture
and maintenance/expansion of theinfrastructure for agricultural production
through its implementation

Responsible Consumption and
Production
Chemical substances management andreduction of waste through Responsible
Care (RC) activities

Increased food production, higher quality,
and sustained supply through safe andsecure crop protection

Activities for realization of a safe andhealthy society through analysis ofenvironmental pollutants and food products

Gender Equality

Promotion of DE&I initiatives
Promotion of women’s fair and equal
participation and advancement

Sustainable Cities and Communities

Provision of safe green zones and public spaces
Conservation and protection of the living
environment, nature, and cultural heritage

Establishment of water supply facilities fordrinking water (India)
Factory wastewater management andprotection of aquatic life

Community
involvement

Dialogue with stakeholders

Strengthening
corporate andorganizational
Governance governanceG

Climate Action

Group promotion of GHG reduction
measures to achieve carbon neutral

Life on Land

Prevention of disorderly cropland development
through appropriate crop protection andconservation of forests and grassland

General:ESG-wide

Expansion ofcompliance and risk
management

Sustainability management,
BCP) wareness of company name and logo:
A
11.4%→15% ( )Advertising reach: 10.2%→13% ( )Implement internal audits including overseas Group
companies
Overall enhancement of governance functions

 arried out jointly with Audit and SupervisoryC
Committee ( / )Governance Committee met 4 times ( / )Evaluated effectiveness of the Board of Directors(continuing to distribute external questionnaires)( / ) ompliance and risk management:
C
Expand actions in response to globalization
Disclosure:
Systematic efforts to address global frameworks

 ompliance: Expanded global internal reportingC
system ( / )Risk management: Updated list of risks in Taiwan,
India, and Brazil ( )Signed United Nations Global Compact ( )Announced endorsement of TCFD ( )Started CDP activities ( / )Distributed CSR questionnaires, implemented
e-learning courses, and provided SDGs
awareness-raising materials ( )Corporate governance,
CSR management

Deployment of renewable energy andimproved energy efficiency/

Other general issues:e.g., activities to raise awareness among
employees and Group companies*1: Targets set in the medium-term management plan, EGG2 (2021-2023)*2: Level of achievement of targets: =achieved, =partially achieved, =not yet achieved* We have mapped the 13 SDGs that are central to our business activities from four perspectives related to the environment (E), society (S), and governance (G).

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CSR of Nihon Nohyaku

Environment

Participation in Initiatives

Raising the Level of Environmental Management

United Nations Global Compact (UNGC)
The United Nations Global Compact (UNGC) is a voluntary initiative, where private companies andorganizations affiliated with the United Nations act as good members of society and achievesustainable growth by demonstrating responsible and creative leadership.
Companies and organizations that sign the UNGC are committed to ten principles related to theprotection of human rights, elimination of unfair labor, environmental protection, and prevention ofcorruption. Based on the commitment of company leaders themselves to these ten principles,companies are required to continuously make efforts to realize the principles.
The Nihon Nohyaku Group has signed the UNGC, thereby declaring to stakeholders and theinternational community our corporate stance of contributing to society through appropriate businessactivities.

Response to Climate Change
Establishing Global Environmental Management

Since the Nihon Nohyaku Group has manufacturing sites in Japan, India, and Brazil, GHG emissions reduction targets
are in line with each target country by country, and we have set global targets for Scope 1*1 and Scope 2*2 in 2022.
*1 Direct emissions of GHG by the reporting company.
*2 Indirect emissions from the use of electricity, heat, or steam supplied by others.

Nihon Nohyaku and other Group companies that
The Nihon Nohyaku Group* aims to be carbon neutral * have
manufacturing sites

Sustainable Development Goals (SDGs)
Sustainable Development Goals (SDGs) are the common goals of the international community set
forth in the “2030 Agenda for Sustainable Development,” which was unanimously adopted by member
states at the United Nations summit in September 2015. The aim is to create a sustainable and betterworld by 2030. Consisting of 17 goals and 169 targets, the Agenda pledges to realize a global societythat will “leave no one behind (LNOB).”

Japan & Brazil: 2050
CO2 emissions (thousand tons)

CO2 Emissions
Reduction Policy
2070

India

Carbon neutral

25

Reduction of GHG
emissionsassociated withbusiness activities
2030 target(Scope 1+2)

23% reduction

14

10(compared to FY2020)

Japan & Brazil
0

2020

2030

Proactive initiatives toward energy saving

Energy

0

0

2050

2070

(year)

Energy saving and improved efficiency through innovative technologies

Procurement of renewable energy, introduction and operation of renewable energy equipment

Contributions to society
through our core businessWe aim to gradually
become carbon neutral
while watching changes
in energy policies in eachcountry.

Technological development that contributes to GHG reduction

Initiatives to Save Energy
Nihon Nohyaku and Nichino Service are specified business operators defined in
the Energy Conservation Act (Act on Rationalizing Energy Use and Shifting to Nonfossil Energy). Our goal is to reduce energy consumption unit from the previous
year and the past five-year average of that by 1% or more. Other domestic Group
companies have also set goals that match their business conditions, and work onenergy conservation measures such as switching to LED lighting and eco-driving.
Overseas Group companies work to determine the actual state of their energy
usage while promoting energy conservation efforts. Going forward, the entire
Group will work together as one to further promote energy conservation.

External Evaluation

TOPICSNIHON NOHYAKU CO.,LTD.

2050

Japan & Brazil
Carbon neutral

20

Task Force on Climate-related Financial Disclosures (TCFD)
The TCFD is a task force established by the Financial Stability Board (FSB) at the request of theG20 to consider how climate-related information should be disclosed and how financial institutions
should respond. In its final report, the TCFD recommends that companies assess and disclose
information on the financial impact of climate change.
In an effort to address climate change, the Group announced its endorsement of the TCFD
recommendations in February 2022.

15

−23%

33

30

Responsible CareIn the chemical industry, each company handling chemical substances secures “the environment,
safety and health” and publishes the results of its activities regarding all its processes, ranging from
R&D through manufacturing, logistics, use, final consumption, and recycling, to the disposal of thechemical products, while maintaining a dialogue and communication with society. These activities arecalled “Responsible Care (RC) activities.”
In September 1999, we joined the Japan Responsible Care Council and began a full-scale
implementation of our RC activities. Since 2012, we have been a member of the Japan Chemical
Industry Association’s Responsible Care Committee, which was reorganized from the Japan
Responsible Care Council. Currently, we have registered four domestic Group companies as RC
activities-related companies, and our activities are still ongoing.
Moreover, in 2014, we signed the RC Global Charter (resigned by then President Tomoi in January2020), declaring our commitment to uphold the international principles of RC and to strengthen ourefforts in conducting RC activities.

In January 2023, Nihon Nohyaku
received a Development Bank of Japanloan based on the DBJ Employees’
Health Management Rated Loan
Program, and has been rated as “acompany with outstanding activities on
employee health management.”

India: 2070

compared to 2020

India

DBJ Certification Programs
The DBJ certification programs use an original screening system developed by theDevelopment Bank of Japan (DBJ) to evaluate companies’ non-financial information andselect outstanding companies to provide loans. There are three types of ratings:“Environmental Ratings” to evaluate environmental management and sustainability
management, “BCM Ratings” to evaluate disaster prevention and business continuity efforts,and “Health Management Ratings” to evaluate employee wellness and health management.
We have obtained certification for the “Environmental Ratings” and “Health Management
Ratings” programs in 2019 and 2022, respectively.

For details, see CSR Data Book 2023 p.2-7
https://www.nichino.co.jp/en/csr/csr_data.html

Nihon Nohyaku received a
Development Bank of Japan loan
based on the DBJ Environmentally
Rated Loan Program, and has been
rated as “a company with advanced
environmental activities.”

Switch to LED

GHG Reduction Initiatives

CO2 accounts for almost all of the Group’s GHG emissions, and we consider specific measures both
domestically and internationally to achieve carbon neutral in 2050 and 2070. Regarding our domestic CO2
emissions, the Group has always disclosed Scope 1 and Scope 2 emissions. From FY2020, we also started
disclosing our global CO2 emissions, including those in India and Brazil, where we have manufacturing sites.
Furthermore, we have calculated Scope 3*1 emissions in accordance with the GHG Protocol*2 from FY2021 inJapan*3 and from FY2022 overseas*4.
*1 Other indirect emissions besides Scope 1 and Scope 2, emissions from the corporate value chain*2 International standard for calculating and reporting GHG emissions*3 Nihon Nohyaku and domestic Group companies that have manufacturing sites*4 Overseas Group companies that have manufacturing sites

Corporate Social Responsibility Report 2023

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Environment

Raising the Level of Environmental Management

Environmental Conservation

For details, see CSR Data Book 2023 p.2-7
https://www.nichino.co.jp/en/csr/csr_data.html

Consideration for Biodiversity

Initiatives for Raw Materials

Agrochemicals are required to be effective against pests and weeds, and to be safe for users and consumers ofagricultural products, as well as to be considerate of the natural environment around the farmland. The Group
complies with the laws and regulations of each country, and works to develop agrochemicals that are closely alignedwith the perspectives of “the environment, safety and health,” by utilizing the latest scientific knowledge. Nichino
Ryokka utilizes its products and weed management technology to participate in the “Satochi-Satoyama (Socioecological Production Landscape) Revitalization Project by Industry, Academia, and Government” in Nasukarasuyama
City, Tochigi Prefecture, and contributes to biodiversity by conserving the landscape. Nihon Nohyaku also participatesin the Japan Crop Protection Association’s “Bee Friendship Plan.” It grows plants preferred by pollinating insects suchas bees on part of the company premises to provide a proper habitat for pollinating insects. Group companies andoffices will continue to consider and promote initiatives that contribute to biodiversity.

Some of our products use packaging made with plant-based biomass ink*. In general, the raw materials for ink aremainly derived from petroleum. Therefore, by replacing petroleum-based ink with biomass ink, we can reduce theamount of petroleum resources used. In addition, we have formulated the “Nihon Nohyaku Group Basic Procurement
Policy” and the “Nichino Group Green Procurement Standards,” and we take the environment into consideration when
we conduct material procurement.
* Biomass ink is ink manufactured using raw materials that are partially derived from plant-based resources.

Example of a
product using
biomass ink

The “Satochi-Satoyama Revitalization Project by Industry,
Academia, and Government”

Sunflowers grown as part of the Bee Friendship Plan

Environmental Compliance

Water Conservation
The Group works to reduce water usage through efforts in improving production efficiency, saving water, andrecycling. In Japan, we have set voluntary control values for wastewater that are stricter than the legal discharge
standards, and we manage the wastewater to ensure that it does not exceed the standard values. The Nihon Nohyaku
Research Center and Nichino Service Kawachinagano Center regularly clean the canals near their plants and offices
in collaboration with neighboring irrigation associations. Nichino India (India) works on activities to set up water supply
points in order to conserve water resources. Currently, it has installed water supply points at around 30 locations inIndia. Going forward, we will continue to work on water conservation both within and outside of our plants and offices.

The Group conducts compliance training aimed at ensuring thorough compliance with various laws and regulations,
including those related to the environment, and with various internal regulations. Accordingly, we work to educate andraise awareness among our employees and report on the activities and status of compliance at each office to theCompliance Committee.

Initiatives for Environmental Assessment
The Nihon Nohyaku Group works on environmental assessment through Responsible Care activities and ISO14001(Environment Management System). We thoroughly comply with environmental laws, ordinances, and local
agreements, etc., and promote business activities while taking into account our effect on the surrounding areas,considering factors such as the generation of noise, odor, or vibration.

TOPICS

Canal cleaning

Water supply points

Initiatives to Reduce Waste
The Group actively works on the 3Rs (reduce, reuse, and recycle), and Nichino Service promotes the goal of zero
emissions*. For some products, we offer multiple specifications tailored to each customer’s needs. By allowing eachcustomer to purchase an optimal amount based on their needs, we work to reduce waste agrochemicals and theamount of packaging used. Furthermore, we focus on reducing waste through green purchasing (purchasing products
and materials from manufacturers that strive to reduce their environmental impact, including waste reduction), and wehave joined the Green Purchasing Network. In FY2022, we achieved a green purchasing rate of 100% for the entire
domestic Group, thereby achieving our goal (over 95%). The entire Group will continue to work together as one toadvance our waste reduction efforts.

Promoting Environmental Conservation Initiatives at Work and at HomeTo ensure that employees are fully aware of environmental laws and regulations and to promote
environmental conservation initiatives at work and at home, the Environment Safety & Quality Assurance
Department issues the “Environment Safety News” newsletter three times a year to share information with all
employees. The newsletter features information related to environmental safety.
Global Warming Countermeasures
In conjunction with “Environment Day” on June 5, we hold activities to raise employee awareness ofenvironmental conservation. Furthermore, we explain initiatives such as the Japanese government’s “COOLCHOICE” initiative, and promote them so that each employee will have an opportunity to think about global
warming countermeasures through familiar actions and measures that they can take at home.
Plastic Reduction
We conduct awareness-raising activities through Environment Safety News and other means, concerning
actions that individuals can do to reduce their plastic usage. Moreover, as part of our initiatives for the
workplace, we work on green purchasing, which promotes the purchase of items that have a lower
environmental impact, such as recycled plastic products.

* The final landfill amount of waste shall be 1% or less of the volume.

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SocialExpansion of Human Rights Management
Human Rights Management

Diversity

Basic Approach
The Nihon Nohyaku Group positions respect for human rights as one of the most important management issues forbusiness continuity. Accordingly, we engage in human rights management as a group-wide effort to eliminate serious
human rights violations, including unfair discrimination, harassment, child labor, and forced labor.

Basic Human Rights Policy
In accordance with international norms such as the United Nations’ “Universal Declaration of Human Rights” and“Guiding Principles on Business and Human Rights,” we have established the Nihon Nohyaku Group Basic Human
Rights Policy, which specifies to respect the human rights of all stakeholders of the Nihon Nohyaku Group.
[The Nihon Nohyaku Group Basic Human Rights Policy]
The Nihon Nohyaku Group respects the human rights and diverse values of all our stakeholders, including ourcustomers, and aims to achieve a society free of discrimination and prejudice.

Nihon Nohyaku has appointed a “Diversity Promotion Special Mission Team,” with the Human Resources
Department serving as the secretariat, to ensure that employees with diverse values (gender, age, nationality,
workstyle, sexual orientation, gender identity, etc.) can each demonstrate their capabilities at their full potential. The
Special Mission Team plays a central role in diversity training and workplace discussions, which aim to promote
understanding and dissemination of the importance of ensuring diversity, and the anticipated effects of doing so.
In addition, we carry out initiatives such as providing training courses for female employees to promote their active
participation in the workplace, promoting the hiring of foreign nationals, creating a barrier-free environment to eliminate
restrictions for persons with disabilities, and taking measures to ensure employment until the age of 70.
1. Promoting Female Participation in the Workplace
Nihon Nohyaku has formulated an action plan for promoting female participation in the workplace and is actively
promoting it.
While the ratio of female managers was 2.0% in April 2011, this ratio has increased to 8.4% in March 2023 as aresult of our efforts to promote a change in the mindset of male managers toward promoting the active participationof women, in addition to training and motivating female employees to become managers. We have set targets toreach a ratio of female managers of 13% in April 2024 and 22% in April 2030. Furthermore, we will maintain the ratioof women hired for full-time positions at 30%, with the aim of improving the ratio of female employees.
Rate of female managers (%)
10.0

Human Rights Due Diligence
With the aim of promoting human rights management in our business activities, the Nihon Nohyaku Group drives
initiatives to conduct human rights due diligence that complies with the United Nations’ “Guiding Principles on
Business and Human Rights.”

8.0

8.8
7.1

7.4

Number of new graduate employees (persons)
20

8.4

8.3

15

6.0
4.0

For details, see CSR Data Book 2023 p.8-10
https://www.nichino.co.jp/en/csr/csr_data.html

Human Resources Strategy
The Nihon Nohyaku Group positions human resources as “human assets” in its business activities, based on theidea that employees are the most important management capital in business activities. We believe that emphasizing
diversity, where human resources with different experiences, skills, and attributes can play an active role, and where
diverse perspectives and values exist, will lead to sustainable growth. Therefore, we work to maintain and utilize
diversity, through efforts such as encouraging the active participation of women. In order to expand our businessglobally and strengthen our competitiveness as an R&D-driven company, we recruit and promote to managerial
positions a diverse range of human resources, including women, foreign nationals and mid-career hires. Furthermore,
we work to improve the work environment and reform the corporate culture so that each employee can utilize theirindividuality and capabilities, and implement a work style that aligns with their individual values.

Recruiting of Human Resources
Nihon Nohyaku continues to recruit new graduates every year. There were 11 new graduates recruited in April 2023.
In addition, based on the belief that “innovation arises from diversity,” we actively recruit human resources who havegarnered experience at other companies, regardless of the industry. In FY2022, there were two mid-career hires who
were recruited as full-time employees.

Education and Training
We provide individualized training according to each employee’s level. In FY2022, the training time per full-time
employee was 6.6 hours. We also provide support for employees’ self-development through initiatives such ascorrespondence courses.

Development of Global Human Resources
To realize our Group Vision of “Nichino Group-Growing Global,” we plan to formulate a succession plan tosystematically develop global talent who will play a central role in management. Moreover, to develop global humanresources, we second young employees to overseas Group companies and dispatch researchers to overseas
research institutes. As of March 2023, eleven employees are assigned to locations outside Japan.
19

NIHON NOHYAKU CO.,LTD.

0

3

0

* Non-consolidated (enrolled employees = including seconded employees)

9
14
6

10

10
8

5

Sep. 2019 Mar. 2020 Mar. 2021 Mar. 2022 Mar. 2023

19

Female

13

10

2.0

Human Resources Management

Male

9
9

11
4
7

Apr. 2019 Apr. 2020 Apr. 2021 Apr. 2022 Apr. 2023

* Non-consolidated

2. Employment of Persons with Disabilities
Nihon Nohyaku currently employs seven persons with disabilities, which represents an employment rate of 1.67%.
Since this is below the 2.3% legally mandated percentage of employees with disabilities, we will continue activities torecruit those with disabilities and work to create a workplace environment where they can work with peace of mind.
3. Appointment of Non-Japanese Colleagues
We are taking steps to realize the Group Vision. Specifically, we have already appointed non-JapanesePresidents from overseas Group companies as Executive Officers of Nihon Nohyaku in 2011 and 2021. We willcontinue to actively recruit foreign nationals and appoint them to managerial positions to develop human resources
with the qualities of an officer.

Employee Health Management
The Nihon Nohyaku Group believes that our employees are the most important management capital. We believethat working to equip employees with skills, provide experience, and improve motivation leads to sustainableenhancement of corporate value. In addition, based on the belief that having each employee in good physical andmental health increases individual happiness, we position health management as one of our most importantmanagement issues, and actively work to manage and improve the health of our employees.
Main Initiatives (Nihon Nohyaku Co., Ltd.)(1) Maintenance and Promotionof Health(2) Mental Health Care

(3) Creation of a Comfortable
Work Environment

Implementation of regular medical
examinations

Stress checks

Measures to prevent passive smoking,outpatient support for smoking cessation

Implementation of training, etc. toimprove health literacy

Mental health-related training

Optimization of working hours

Prevention of lifestyle-related diseases
through cooperation with healthinsurance associations

Setting up a hotline for mental andphysical health(external consultation desk)

Encouraging more active communication
between employees

Corporate Social Responsibility Report 2023

20

SocialExpansion of Human Rights Management

Enhancing the Safety Culture

Creating a Comfortable Work
Environment

Occupational Safety & Health,
Process Safety & Disaster Prevention

For details, see CSR Data Book 2023 p.8-10
https://www.nichino.co.jp/en/csr/csr_data.html

Basic Approach

The working environment has changed greatly due to a shift in work values, an increase in dual-income households,
and labor shortages caused by the declining birthrate and aging population. Against such a backdrop, we implement
initiatives to improve employee motivation and realize diverse workstyles.
Major Nihon Nohyaku programs related to comfortable work environments
Field
Work systems

Internal programs
Normal work system, Time attendance system, Flex-time work system, Discretionary work system, Deemedoutside work-site system

Holidays

Saturdays, Sundays, national holidays, winter holidays (December 29 to January 3), labor day holiday (May 1),
Foundation Anniversary Day (November 17)

Realizing diverse
workstyles

Annual paid leave, Congratulatory or condolence leave, Posting leave, Maternity leave, Summer vacation (5days), Refresh vacations, Half-day paid leave, Childcare leave system, Childcare time (duty exemption), Shorter
working hours system for expectant and nursing mothers (duty exemption), Child nursing care leave (paid),
Leave for childcare (paid), Family care leave system, Family care leave (paid), Shorter working hours system forchildcare, family care, injury and sickness treatment, Working from home system, Area full-time employee
system (only when appointed as full-time employee)

Maintaining andpromoting the healthof employees

Medical examinations for all employees (full physical examinations for employees over age 40), Long-term sickleave, Stress check surveys, Telephone health consultations

Other benefits

Property accumulation savings, Housing loans, Defined contribution pension plan, Employee stock ownershipplan, Leased company housing system

Promoting the Use of Childcare Leave by Men
In order to create an environment where men can take childcare leave without qualms, we have set up a
consultation desk and distribute childcare support pamphlets. Furthermore, we encourage male employees toproactively take childcare leave by explaining the childcare leave system individually to eligible male employees. The
rate of childcare leave taken by male employees in FY2022 was 55% (5 out of 9 eligible employees took leave).

Open plan office
In order to further transform workstyles and promote cross-departmental communication, we are converting theHead Office and branches to open plan offices. Starting with its introduction at the Fukuoka Sales Office (currently
Fukuoka Branch) in April 2022, an open plan office layout was introduced at all departments of the Head Office and at
the Tokyo Branch in March 2023.

For details, see CSR Data Book 2023 p.11
https://www.nichino.co.jp/en/csr/csr_data.html

Global Zero Accidents
As part of their Responsible Care activities, the Nihon Nohyaku Group in Japan works toward the goal of achieving
zero occupational/commuting accidents and serious equipment-related accidents through the Occupational Safety &Health and Process Safety & Disaster Prevention Code. Regular safety and health committee meetings are held at allsites, regardless of whether they are offices, laboratories, or other facilities. Furthermore, all commercial vehicles areequipped with dashboard cameras, and ratings of driving by insurance companies are utilized to raise awareness about
safe driving. Group companies that have manufacturing sites outside Japan work toward achieving zero accidents
through efforts such as utilizing ISO45001 (Occupational Safety & Health Management System). We plan to continue
expanding Responsible Care activities outside Japan so that the entire Nihon Nohyaku Group works together to carry out
occupational safety & health and process safety & disaster prevention initiatives through Responsible Care activities.

Global Occupational Safety Audit System
The Environment Safety & Quality Assurance Department conducted (twice in total) on-site and written audits of overall
Responsible Care activities, including occupational safety and health, at all Nihon Nohyaku Group plants and offices inJapan to enhance monitoring and check-and-balance functions. Audits consist of confirming whether there have been
accidents at worksites and providing instruction on improving the safety of offices’ activities. Going forward, we plan todevelop a global audit system based on Responsible Care and ISO methods to audit offices in the Group outside Japan.

Avoiding Accidents in the Research StageTo implement a high level of safety management for research activities at the Nihon Nohyaku Group’s researchsites, we continuously encourage employees to acquire national qualifications, such as hazardous materials handler
qualifications, to increase the number of qualified personnel. We also conduct safety activities with an emphasis on
avoiding accidents through Kiken Yochi (risk prediction) activities, risk assessment, safety education, and safety
patrols led by sites’ safety and health committees. We carry out safety activities from a wide range of approaches, suchas conducting risk assessments based on actual accidents that occurred at other offices, and conducting multifacetedsafety research from the early stages of research.

Eliminating Serious Accidents at Production Sites
All of our production sites have acquired ISO45001 and promote safety activities and equipment maintenance using
an Occupational Safety & Health Management System. Nichino Service carries out risk assessment on a 5-stage
scale, and with a company policy to eliminate level 3 or higher risks, it works to reduce risks by reviewing work
procedures and improving equipment based on the results of assessment. We have also started deliberations on
developing an automated and robotic smart factory that considers not only production efficiency but also safety. We
strive to prevent and eliminate accidents at our overseas production sites. Going forward, we plan to carry out
initiatives to prevent and eliminate accidents by conducting regular inspections and audits.

Labor Relations
Nihon Nohyaku and the Nihon Nohyaku Labor Union have concluded a labor agreement, and discussions are heldon equal footing at the labor-management council. We consider labor unions to be one of our important stakeholders,
and we have built good labor relations with a foundation of mutual understanding and trust, based on a sharedunderstanding of “improving the company and improving the lives of employees.” Moreover, recreational activities
jointly organized by labor and management are held at each office to deepen communication among employees and topromote equal relationships.
In FY2022, Nihon Nohyaku and the Labor Union held the following discussions.
Number of meetings of the labor-management council held: 15 (including one meeting with top management)
Policy explanation meeting by division: Policy briefing and exchange of opinions with the Domestic Sales
Division, Overseas Division, and Industrial & Pharmaceuticals Sales Division
Number of labor-management study sessions held: 921

NIHON NOHYAKU CO.,LTD.

Simulated fire drill using a smoke machine (Nichino Service Fukushima Plant)

Joint fire prevention training with the fire department(Research Center)

Firefighting training (Nichino Service Kashima Plant)

Letter of appreciation from the Association for Safety of Hazardous
Materials (Nichino Service Saga Plant)

Corporate Social Responsibility Report 2023

22

SocialEnhancing the Safety Culture

Product Stewardship (Chemical Materials and Product Safety)
Appropriate Management of Chemical Substances
The Nihon Nohyaku Group creates Safety Data Sheets (SDSs) for agrochemicals, products excluding
agrochemicals, and samples for testing and research purposes to ensure the safe handling of chemical substancesand prevent injuries and accidents. We also display information about agrochemical products on the corporate website(https://www.nichino.co.jp/en/products/page_10150.html). In FY2022, we focused efforts on revising the SDSs of each
item to comply with the revised Act on the Assessment of Releases of Specified Chemical Substances in theEnvironment and the Promotion of Management Improvement that went into effect on April 1, 2023. We have also built
an SDS library on the company intranet to enable the Group’s plants and offices to view SDSs when needed —including SDSs of raw materials and products.

Promoting Product Stewardship through the Product Life Cycle
The Nihon Nohyaku Group focuses on safety management throughout the product life cycle, from research to
manufacturing, use and disposal, and provides appropriate information. Particularly during the research anddevelopment stage, we conduct voluntary audits based on our own internal regulations, and continuously engage ininitiatives to ensure product safety, also known as “Product Stewardship.” In addition, we have set up a phone number
and a contact form on our website, as points of contact for inquiries and consultation regarding our various products
and agrochemicals in general.
Nihon Nohyaku Co., Ltd.

Agrochemical products in Japan (Customer service center)+81-570-09-1177

Pharmaceuticals and animal health products (Pharmaceuticals Dept.) +81-50-3490-3514

Nichino Ryokka Co., Ltd.

Agrochemical products and greening materials in Japan+81-3-3808-2281

AgriMart Corporation

Termite solutions and environment-related materials+81-3-5159-1711

We provide the Japan Poison Information Center with SDSs of our products to assist in inquiries from medical
institutions, in the unlikely event of a poisoning accident related to our products.

Supply Chain Management
The Nihon Nohyaku Group Basic
Procurement Policy
Based on our CSR Basic Policy, we established “the Nihon
Nohyaku Group Basic Procurement Policy” in November 2021 asa basic policy for CSR procurement.
Cooperation with business partners is essential to fulfill social
responsibilities throughout the supply chain. We aim to realize asustainable society by building good relationships with ourbusiness partners, asking them to agree with our Basic
Procurement Policy, and putting it into practice together.

For details, see CSR Data Book 2023 p.11
https://www.nichino.co.jp/en/csr/csr_data.html

onsideration for human rights, working● Cenvironment,
peace and fairness
with laws and social norms● CFairompliancetransactions and equal opportunities●A ppropriate
selection of business partners●
romotion of mutual development● P(partnerships)
nsuring appropriate information● Emanagement
and intellectual property rightsEnsuring
qualitysafety● Consideration forandtheenvironment●● Coexistence with society
123Green Procurement
We have established the “Nichino Group Green Procurement Standards” to strive to achieve sustainableprocurement.
The green procurement rate in FY2022 was 99.4% — an improvement from the previous year. We will continue toimprove our green procurement rate.

For details, see CSR Data Book 2023 p.11
https://www.nichino.co.jp/en/csr/csr_data.html

Logistics Safety
Promotion of White Logistics

Nihon Nohyaku has endorsed the White Logistics Movement, an initiative put forward by Japan’s Ministry of Land,
Infrastructure, Transport and Tourism (MLIT), Ministry of Economy, Trade and Industry (METI) and Ministry ofAgriculture, Forestry and Fisheries (MAFF), and submitted our Declaration of Voluntary Action. Our modal shift rate* in2022 was 19.1% (target: 15.0%, results in 2021: 9.0%). We will continue to work on logistics safety, including the
reduction of environmental impact.
* Modal shift rate (ratio of railway freight and marine transport) = (railway freight and marine transport amount) / (total transport amount) x 100

Quality Management
Providing High Quality Products
We work to ensure product quality and safety in every stage of the value chain, from R&D through manufacturing,sales, logistics, use, and final consumption to disposal and recycling, based on our basic policy for Responsible Care.
To fortify supervision and control functions with respect to safety, we have reorganized the previous Environment
Safety Department into the Environment Safety & Quality Assurance Department. Accordingly, product quality ishandled by two departments, i.e., the Environment Safety & Quality Assurance Department, which handles quality
assurance, and the Production Division, which handles quality control. We carefully deliberate with Nichino Service,
the Nihon Nohyaku Group’s manufacturing company, to manage quality with a focus on their maintenance andimprovement. In our production process for active ingredients, we practice quality management that applies GMP
management methods (production management and quality management standards for pharmaceuticals).
The Environment Safety & Quality Assurance Department conducts audits on contract manufacturers outside the
Nihon Nohyaku Group from an independent standpoint. We conduct risk management for product liability (PL*) toprevent issues. In addition, we visualize the status of responses to complaints received in relation to our products withan internal database to promote rapid and accurate response.

4* Product Liability

5

Nihon Nohyaku’s Quality Management System

6

President

78
9

Officer in charge

Officer in charge

Environment Safety & Quality
Assurance Dept.

Production Division

Activities toward Sustainable Procurement
CSR-related Procurement Questionnaire Survey
In February 2022, Nihon Nohyaku started distributing CSR procurement questionnaires to business partners inJapan, with an 81% response rate.
In FY2023, we will utilize the United Nations Global Compact Network Japan’s CSR procurement self-assessment
tool (SAQ) to gather information and engage in dialogue with business partners to promote cooperation, and work toensure sustainable procurement activities based on the Basic Procurement Policy of the Nihon Nohyaku Group.

Manufacturing Technology
Research Center
Quality Assurance

23

NIHON NOHYAKU CO.,LTD.

Technology
Management Dept.

SCM Dept.

Quality Management

Corporate Social Responsibility Report 2023

24

SocialDevelopment of Technologies and Productsthat Meet Needs of Society
Product Development

For details, see CSR Data Book 2023 p.12
https://www.nichino.co.jp/en/csr/csr_data.html

Ethical Considerations concerning Testing on Animals
Nihon Nohyaku has established internal regulations concerning testing on animals in accordance with the “Act on
Welfare and Management of Animals” and related guidelines. We also promote animal welfare through technologicaldevelopment and research initiatives utilizing cultured cells and computer modelling.

Global R&D
A major mission of the Group is to create new agrochemicals thatmeet the needs of the times, to ensure a safe, secure and steady foodsupply and improve the quality of life for all. As an R&D-driven
company, Nihon Nohyaku has built strategies based on accurate
analysis of the business environment and market changes and works
on early development of new agrochemicals as well as expansion of
the fields of application of existing products from a global perspective.
We continuously challenge ourselves to create technologies that
contribute to global food production by enhancing the functions of the
Research Center, which carries out cutting-edge research, and the
Manufacturing Technology Research Center, which is responsible forthe manufacturing stage, and by strengthening the development
system that responds to global market needs with domestic andoverseas Group companies. We also promote licensing activities
effectively, using intellectual property such as patents, and improve
our product portfolio to expand our business.

Examples of Crop Aid Products“Frost Buster,” a product of the Group, was developed based on a
new proposal to effectively utilize “coffee grounds,” a byproduct ofcanned coffee manufacturing, and prevent frost damage on crops bypromoting supercooling*. This is a product that contributes to therealization of a sustainable, recycling-oriented society.
* When frost or ice is formed, extremely small ice seeds (ice nuclei) are first formed, and these gradually
become larger lumps (formation and growth of ice crystals). The promotion of supercooling preventsthe formation of ice crystals from these ice nuclei, by preventing water from freezing even at
temperatures below its freezing point.

Research Center

Initiatives toward Advanced
Technologies

Creation of New Agrochemicals
Creation of new active ingredients for agrochemicals takes morethan 10 years as well as significant investment, requiring many
processes from research and development to launch as new
products. Under such circumstances, we have continuously
developed one new molecule every three years. We have contributed
to ensuring a safe and steady food supply by launching, to date,flubendiamide, an insecticide for Lepidoptera, pyraziflumid, a broadspectrum fungicide, and pyraflufen-ethyl, a PPO inhibitor herbicide/desiccant. We are accelerating exploratory research by expanding
our efforts in the recent AI drug discovery technologies in thesynthesis field, omics research in the safety and biological fields, andinitiatives in the computational science field.

Global Meeting/Asia and Europe

For details, see CSR Data Book 2023 p.12
https://www.nichino.co.jp/en/csr/csr_data.html

Contributing to Smart Agriculture

Global Meeting/North, Central, and South America

We have accelerated our efforts for “smart agriculture” tosolve agriculture-related issues, making use of cutting-edge
technologies. As part of our activities, we worked with several
agrochemical manufacturers to promote “LeiMe AI Disease,
Pest & Weed Analysis.” As of the end of March 2023, 19 crops
can be diagnosed and it is currently being expanded tooverseas countries, mainly in Asia. We will continue to work on
expanding crops that can be diagnosed, enhancing functions,such as making it multilingual, and strengthening overseas
development. In addition, our Group company, AgriMart
Corporation, has started a sanitary pest management support
service, “LeiMe AI Pest Identification and Counting System.”

LeiMe image diagnosis

Expansion to Pharmaceuticals and Animal Health Products
In Nihon Nohyaku’s pharmaceutical and animal health products business, we have applied the technologies from ourcore business of agrochemical to the expansion and development of topical antifungal agents (medicine for athlete’sfoot) and flea and tick control agents for animals. Our inventions, lanoconazole and luliconazole, are highly effective
against trichophyton, the fungus that causes athlete’s foot. We also aim to create new animal health products throughjoint research with ADEKA.
Nihon Nohyaku’s Agrochemical Creation Process

Agrochemicals are required to be effective against pests and weeds, and to be safe for users and consumers, aswell as to be considerate of the natural environment. By having the chemistry, biology, safety, and research support
departments collaborate from an early phase of the research stage, the Group has developed agrochemical productsthat have a low environmental impact, such as “reduced impact on environmental organisms” and “reductions indosage and residual amounts.” The Nihon Nohyaku Group aims to develop agrochemicals that are closely aligned withthe perspectives of “the environment, safety and health,” by utilizing the latest scientific knowledge, not only inresponse to related laws and regulations in each country, but also from the perspective of promoting SDGs, CSR
activities, and ESG management. Most recently, we launched Benzpyrimoxan (ORCHESTRA®), which inhibits ecdysisof nymphs of plant hoppers and leaf hoppers, in Japan and India. It is characterized by the fact that it has less adverse
effect on humans, animals, and aquatic organisms. Moreover, it has a low impact on many natural enemies andbeneficial insects, as well as a low risk of phytotoxicity to crops.
In addition to chemically synthesized agrochemicals, we will also expand our business to include biopesticides andcrop aid products (biostimulants, etc.).
25

NIHON NOHYAKU CO.,LTD.

Invention Chemical field
Discovery Biological field
Verification Safety field

Challenges to practical use

LaunchDeveloping Eco-harmonized Products

Pursuit of new agrochemicals

Creation of new products

Benzpyrimoxan

Application forregistration**/Acquisition

Pyraflufen-ethyl

Overall assessment

Pyraziflumid

Candidates for new
agrochemicals

Flubendiamide* Application for registration: According to the provisions of the Agricultural Chemicals Regulation Act, test results such as on efficacy, safety, toxicity andpersistency of agrochemicals must be submitted to the Ministry of Agriculture, Forestry and Fisheries, for approval (registration). Unless registered,agrochemicals cannot be manufactured, sold or used.
Corporate Social Responsibility Report 2023

26

SocialCommunity Involvement

Training and Tours at Business Offices

Dialogue with Stakeholders

For details, see CSR Data Book 2023 p.12
https://www.nichino.co.jp/en/csr/csr_data.html

Engagement with Stakeholders

Customers

Shareholders andInvestors

Employees

Purpose/Theme

Main Initiatives

Related Information

Development of technologies and productsthat meet needs of society
Education and awareness-raising on thecorrect use of agrochemicals and improving
the understanding of consumers regarding
agrochemical use reation of new agrochemicals,Cpharmaceuticals, and animal health products
Creation of eco-harmonized products
Contribution to smart agricultureEstablishment of customer consultation service
Disclosure of business information

 evelopment of Technologies and Products
Dthat Meet Needs of Society (p.25)
Community Involvement (p.27)

 ppropriate and timely disclosureAConstructive dialogue
Feedback to management

Holding of financial results meetings (twice ayear) and the General Meeting of
Shareholders (once a year)
IR meetings with institutional investors andanalysts
Tours of the Research Center and other IR
events ommunity Involvement (p.27)
C
IR webpages on Nihon Nohyaku’s website

 mployee engagement
EHuman capital development and skill
development
Development of comfortable work environment

 iscussions between labor and management
DDevelopment of internal reporting system
Activities toward zero accidents

 xpansion of Human Rights ManagementE(p.19)
Expansion of Compliance and Risk
Management (p.31)
Enhancing the Safety Culture (p.22)

 air and equitable business relations
FSustainability promotion on the supply chain

 onducting procurement questionnaireCsurveys
Promotion of White Logistics
Green procurement

Enhancing the Safety Culture (p.22)

 ontribution to the sustainable development
Cof international society
Environmental conservation
Support for regional revitalization

 reation of new agrochemicals,Cpharmaceuticals, and animal health products
Creation of eco-harmonized products
Activities to reduce GHG emissions
Response to TCFD Recommendations
Training and Tours at Business Offices
Nichino Scholarship Fund
Donations for humanitarian aid

 evelopment of Technologies and Products
Dthat Meet Needs of Society (p.25)
Raising the Level of Environmental
Management (p.16)
Expansion of Compliance and Risk
Management (p.31)
Community Involvement (p.27)

Business Partners

Local
Communities andSociety

To build a foundation for constructive dialogue with stakeholders, Nihon Nohyaku has established a disclosure policy.
We accordingly strive to appropriately disclose corporate information, including non-financial information, ensure thetransparency of corporate management and hold financial results briefings as well as individual IR meetings.
Financial results briefings are available on demand on our website.

Strengthening Communication with our Customers
Association Memberships
Through various associations, the Nihon Nohyaku Group contributes to education and awareness-raising about thecorrect use of agrochemicals for growers and correct understanding for consumers.
 Japan Crop Protection Association
 Japan Chemical Industry Association
 Japan Plant Protection Association

 Japan Association for Advancement of Phyto-Regulators
Green and Safety Promoters Association
 Japan Agricultural Aviation Association

Customer Consultation Service
We have established consultation desks based on product fields. Regarding domestic agrochemical products, wewelcome inquiries from customers via telephone or the inquiry form on our website. It is also important for us to hear
general questions and inquiries from consumers regarding agrochemicals. We provide relevant information to
improve understanding of our agrochemicals.
Disclosure of Business Information
For deeper understanding of our business activities by our stakeholders, we
provide timely and appropriate disclosure and enhance the content of theinformation. We also provide a service called “LeiMe’s Agrochemicals Chat
Room,” where a character named LeiMe provides easy-to-understandexplanations of matters such as product information and the safety ofagrochemicals on our website.
27

NIHON NOHYAKU CO.,LTD.

At the “Work Waku-Waku Kawachinagano”
open company event

Nichino Scholarship Fund

Communication with our Shareholders and Investors

Industry
Associations

Training and tours at Nihon Nohyaku Group’s Research Center andManufacturing Technology Research Center (Kawachinagano-shi, Osaka),
Naganuma Nursery (Yubari-gun, Hokkaido), and Nichino Service plants (Kamisushi, Ibaraki; Nihonmatsu-shi, Fukushima; and Miyaki-gun, Saga) had been
temporarily suspended to prevent the spread of COVID-19, but with the mitigationof the pandemic, we have gradually begun to accept visitors (visits are stillsuspended or accepted with a limit on the number of people at some facilities).
Among these facilities, the Research Center participated in an open company
event sponsored by Kawachinagano-shi “Work Waku-Waku Kawachinagano” inNovember 2022, and held a total of four tours for residents in coordination withother local companies. At the event, we explained the significance of
agrochemicals before giving a tour of Research Center facilities. We received
many comments from the participants, such as: “I was surprised there was such alarge research facility in the city” and “I felt proud to learn that research in
Kawachinagano was helping Japan and the world.”

Our website (top page)https://www.nichino.co.jp/en/index.html

In FY2008, we started the Nichino Scholarship Fund, commemorating the 80th anniversary of our foundation. This
year marked the 16th year of the fund. Every year, we provide scholarships to students at nine agricultural colleges inJapan, and have supported over 250 students so far.
We also hold seminars on agrochemical safety for scholarship recipients at our Head Office and Research Center. In
2022, an online seminar was held for the first time from the standpoint of preventing the spread of COVID-19. Throughthis program, we will continue to help foster Japan's next generation of agricultural professionals.

Nichino America’s Social Contribution Activities
Nichino America, Inc. (NAI) participates in various social contribution activities to realize a sustainable society.
Every year, NAI makes donations to food banks, and the funds collected are used for social contribution activities
through the non-profit organization Feeding America. During the Christmas season, volunteers and NAI employeesdeliver presents to senior nursing homes that were purchased with donations. Further, at NAI’s national meeting held in
San Antonio, Texas in 2022, employees assembled children’s bicycles for donation to a local charity as a part of ateam-building event. Other initiatives include working with the American Farm Bureau Foundation for Agriculture (anon-profit organization that conducts education and awareness-raising related to agriculture in the U.S.A.) and My
American Farm (a game platform for children’s agricultural
education), to fund “From Seed to Shirt,” a game designed topromote agricultural learning.
By becoming a sponsor of a foundation working to increasechildren’s knowledge of agriculture, NAI intends to contribute to
the development of the agricultural field.
Going forward, NAI will continue to donate to various
charitable organizations and provide support for volunteer
activities.
Team-building event at the NAI national meeting

Nichino Ryokka Initiatives for the Morioka Castle Restoration Work
Nichino Ryokka Co., Ltd. took part in the restoration work for historicbuildings by applying the green technology it has developed. The stone wall
restoration at the Sannomaru of Morioka Castle ruins, a designated national
historic site, is a historic project scheduled to be completed in 2024, with
KAJIMA CORPORATION as the prime contractor. Nichino Ryokka was incharge of mortar spraying and rebar insertion work to prevent the earthen
mounds that back the stone walls from collapsing after the walls were taken
apart from the standpoint of ensuring the safety of the work.
In addition, Nichino Ryokka participated as a volunteer in citizen tours of
the site organized by Morioka-shi and explained the details of the project togive citizens a better understanding of it.

Restoration construction site

See here for the CSR activities of Nichino Ryokka (in Japanese):https://www.nichino-ryokka.co.jp/csr/

Corporate Social Responsibility Report 2023

28

Governance

Strengthening Corporate and Organizational GovernanceCorporate GovernanceFor details, see CSR Data Book 2023 p.13
https://www.nichino.co.jp/en/csr/csr_data.html

Approach to Corporate GovernanceThrough efforts to realize the Nihon Nohyaku Group’s Basic Principles, Action Charter and Group Vision, we aim to
be a corporate group that is trusted by various stakeholders like shareholders, customers, employees, business
partners and local communities. We will build an effective corporate governance structure to achieve sustainablegrowth and improve medium to long term corporate value.

Corporate Governance Structure and Initiatives
Nihon Nohyaku has adopted the form of a company with an Audit and Supervisory Committee. The purpose is tostrengthen the supervisory function of the Board of Directors and enhance corporate governance by appointing Audit
and Supervisory Committee members, who are responsible for auditing the execution of duties by Directors, as
members of the Board of Directors.
In addition, the Governance Committee (members: 9 as of June
Board of Directors (as of June 21, 2023)
21, 2023), where a majority of members are independent officers,D irectors (excluding Audit and Supervisory Committee members):8
has been established as an advisory body to the Board of
Directors who are Audit and Supervisory
Directors. The Governance Committee further enhances corporate
4 (33.3%)
Committee members (percentage):
governance by deliberating and reporting, upon a consultation
Female Directors (percentage):
3 (25.0%)
Average attendance rate at Board of
request from the Board, on the appropriateness of the process for100.0%
Directors meetings in FY2022:
appointing/dismissing candidates for Director of Nihon Nohyaku,Average time required for Board of
their qualifications and reasons for appointment, evaluations of the
92 minutes
Directors meetings in FY2022:
effectiveness of the entire Board of Directors, and the officer
remuneration system.

Analysis and Evaluation of the Effectiveness of the Board of Directors Overall
The Board of Directors conducts a questionnaire survey for Directors every year concerning the effectiveness of theentire Board of Directors. The Governance Committee is consulted regarding the results of analysis and evaluation of
the effectiveness of the Board of Directors based on the results of this questionnaire survey, and efforts are made tocontinuously improve issues identified based on the reports received.

Initiatives to Strengthen Auditing
The Audit and Supervisory Committee is responsible for conducting audits to monitor the legal compliance andappropriateness of business execution by Nihon Nohyaku and its Group companies. Internal audits based on aninternal audit plan proposed by the Internal Control & Audit Department are coordinated with accounting audits byauditing firms. Information is exchanged and meetings are held in a timely and appropriate manner so that therespective audits function efficiently and effectively. In recent years, audits by the Audit and Supervisory Committee
and internal audits have been performed using a general check sheet to increase audit efficiency and reduce theburden on the departments being audited.

Policies on Determining Directors’ Remuneration
The policies on determining the contents of remuneration, etc. for individual Directors are determined by the Boardof Directors after it receives opinions from the Governance Committee, which is a voluntary advisory body of the Boardof Directors, on officers’ remuneration. The ratio of type of remuneration for Executive Directors shall be determined inconsideration of factors including long-term R&D based business characteristic of Nihon Nohyaku, the Director’s
position, duties, standards at other companies and social trends. The ratio between basic remuneration, bonuses andperformance-linked stock-based remuneration during the period to which a medium-term management plan applies will
be about 8:1:1.
Corporate Governance Diagram (as of June 21, 2023)
General Meeting of Shareholders
Governance Committee

Board of Directors

Audit and Supervisory Committee

Accounting Auditor

PresidentInternal Audit Department
Board of Executive Officers
Compliance Committee
29

NIHON NOHYAKU CO.,LTD.

CSR Committee
Risk Management Committee

Policies and Procedures for Appointing Director Candidates
Nihon Nohyaku considers the diversity of Board of Directors members and selects candidates for Director (excluding
Audit and Supervisory Committee members) from those who possess high ethical standards as well as personality,
insight, ability and extensive experience. In addition, candidates for Director who are Audit and Supervisory Committee
members are selected from a broad pool of candidates in accordance with eligibility requirements established by Nihon
Nohyaku, with the approval of the Audit and Supervisory Committee. Candidates for Independent Outside Director are
selected from a broad pool of candidates in accordance with eligibility requirements (including fulfilling Nihon
Nohyaku’s independence standards) established by Nihon Nohyaku.

Enhancing and Strengthening Internal Control Systems
At Nihon Nohyaku, the Audit and Supervisory Committee exercises management evaluation authority based on two
ways; one by checking the legality and validity of the execution of business by the Nihon Nohyaku Group and the otherby right to state opinions regarding the appointment of Directors who are not Audit and Supervisory Committee
members, in order to enhance the checking function of the governance structure.
Internal Control & Audit Department conducts internal audits based on the internal audit plan set forth each fiscal
year to promote the improvement of operations. Moreover, they exchange information and hold meetings in a timely
and appropriate manner so that each audit, including accounting audits by auditing firms, would function efficiently andeffectively.

Message from our independent officer

Growth Strategy, EGG2, Group Governance System
The Nihon Nohyaku Group’s consolidated performance results have achieved net
sales of 102.0 billion yen in FY2022 (124th fiscal year) under the current medium-term
management plan “Ensuring Growing Global 2 (EGG2).” Of this, overseas sales
accounted for over 70% of sales, demonstrating that our presence as a global company
is increasing. As the scope of the Group’s business expands and globalization becomes
more pronounced, actual and potential risks inevitably arise. In response to this, it isnecessary to build group governance with a sense of intensity, and an even more
Iwao Toigawa
important issue is how to make the group management governance system function
Outside Director, Audit
effectively.
and Supervisory
Regarding group governance systems, the Ministry of Economy, Trade and Industry
Committee Member
published practical guidelines in June 2019 as a supplement to the CG Code. Risk
management includes the appointment and remuneration of Group companies’
management, but naturally the role of the Group Head Office and the state of internal control systems are also
important. In particular, internal control systems include the so-called three lines of defense (business departments
as the first line, the administration departments as the second line, and the internal audit departments as the thirdline). As an Outside Director and Audit and Supervisory Committee member, I must pay close attention to whether
these departments are constructed and operated as effective systems.
As the core role of the Group Head Office, the proportion of Outside Directors on the Board of Directors is being
increased based on the requirements of the CG Code to further diversify the Board of Directors (even if individuals
are qualified in the same profession, their careers and backgrounds, etc. differ). Moreover, in response to thedecrease in the number of internal Directors, reforms are underway to enhance the Executive Officer system andfunctions. Furthermore, business reports at Board of Directors meetings, both on a non-consolidated andconsolidated basis, have been modified from conventional reporting methods to place more emphasis on
qualitative information on issues in each department, rather than just quantitative information and analysis, andlively discussions are taking place as a result.
As the Nihon Nohyaku Group has a high degree of expertise in research and development, and there arevarious laws and regulations specific to the Group’s business, I cannot contribute to governance as an Outside
Director without daily study. For this reason, I receive a variety of specialized information from the executive sidethrough relevant workshops and other events. I also enhance communication with the administration departments
on a daily basis, and strive to share accurate information through collaboration between the Audit and Supervisory
Committee, the Internal Control & Audit Department, and the Accounting Auditor (auditing firm).
The business risks and issues surrounding Nihon Nohyaku are expected to diversify as we advance our growthstrategy, so I will strive to overcome these challenges and contribute to the realization of “Global Innovator for
Crop & Life.”

Responsible Care Promotion Committee

Corporate Social Responsibility Report 2023

30

Overall ESG

Expansion of Compliance and Risk Management
Compliance

For details, see CSR Data Book 2023 p.13
https://www.nichino.co.jp/en/csr/csr_data.html

Approach to and Promotion System for ComplianceApproach to and Promotion System for Risk Management

To the Nihon Nohyaku Group, compliance includes not only complying with laws and regulations, internal regulations
and contracts, but also prohibiting unethical behavior that is not socially acceptable under high ethical standards. We
have established the Compliance Committee as a concrete promotion system for realizing this philosophy.
The Compliance Committee consists of Executive Officers or full-time Directors from each department, and theadministrative office is operated by the General Affairs & Legal Department. Furthermore, we have appointed
Compliance Promotion Supervisors and Compliance Promotion Managers in each department and office. Compliance
Promotion Supervisors formulate policies and provide guidance to ensure thorough compliance in their departments,
and Compliance Promotion Managers provide practical support to further promote and ensure compliance.

Recognizing that risk management is an important part of management, the Group takes appropriate measures toprevent potential risks in our business activities and focuses on preventing losses caused by the materialization ofrisks, as far as possible.
Nihon Nohyaku has established a basic policy and management system for risk management for the entire Group in
the “Risk Management Regulations.” The Risk Management Committee, composed of full-time Directors or Executive
Officers who supervise each department, identifies risks, prevents risks from materializing, and takes measures tominimize the impact of risks that have materialized.

Compliance Initiatives
Nihon Nohyaku fulfills its corporate social responsibility by ensuring that the business activities of all officers andemployees comply with laws and regulations, as well as internal rules and norms, and by preventing corporate
scandals.
To achieve the above, we hold regular Compliance Committee meetings twice a year to summarize complianceactivities and decide on policies for the next half of the year. Based on these decisions, we hold workplace meetings(twice a year) and a group council within Group companies (once a year). At the workplace meetings held twice a year,
we aim to improve compliance awareness through the sharing of compliance-related incidents and training materials
that reflect the latest circumstances.
To respond quickly and appropriately to compliance violations, in addition to an organization-based reporting system,
we have also established an “internal reporting system” in compliance with the Whistleblower Protection Act andrelated laws and regulations. This system allows all officers and employees to report directly to officers in charge ofcompliance and to external law firms.

Initiatives toward Anti-Corruption
One of the Basic Principles of the Group states that “we commit to be a trustworthy company for all stakeholders
through our fair and vigorous business activities,” and we actively fulfill our corporate social responsibility throughsound business activities in compliance with relevant domestic and international laws and regulations. In addition, werequest all officers and employees of the Group to comply with the “Prohibition on Bribery,” “Understanding andCompliance with the Bribery Laws and Regulations and Policy for Prevention of Bribery,” “Appropriate Approval
Procedures and Ex-post Facto Confirmation Procedures,” “Building of Sound Business Relationship,” “Regular Risk
Assessment, Review and Improvement,” “Thorough Records Management” and “Prompt Report.”
In FY2022, there were no bribery-related violations or cases involving sanctions.

Global Expansion and Management
To ensure compliance at overseas Group companies, Nihon Nohyaku has established the Group ComplianceCouncil to conduct lively discussions and share useful advice among Group companies. Through these activities,
besides ensuring compliance with local laws and regulations, we also provide support that enables overseas Group
companies to fully respond to local social issues based on corporate ethics.
Such support includes verifying whether overseas Group companies and their suppliers/contractors are having anegative impact on the local environment and society (for example: monitoring and guidance to ensure that our
products are not used in inappropriate ways by customers, and confirming with Group companies to ensure that
inappropriate gifts, etc. have not been given to public officials or other private companies), and considering appropriate
measures that go beyond laws and regulations.

31

Risk Management

NIHON NOHYAKU CO.,LTD.

Risk Management Initiatives
In principle, the Risk Management Committee holds a regular committee meeting in March every year to summarize
the activities of the year and decide on policies for the next fiscal year. Based on these decisions, we hold workplacemeetings (twice a year) and a group council within Group companies (once a year). At the first workplace meeting in
FY2022, we worked to enhance employees’ understanding of management risks and company-wide risks, and to
improve risk management awareness. At the second meeting, discussions aimed at updating the list of risks faced byeach workplace were conducted. As a result of the discussions at each workplace, we identified new risks, including
geopolitical risks, soaring global energy prices, and soaring raw material prices due to inflation and other factors. In
addition, in FY2022, we conducted our first e-learning program on the basics of BCP and risk management, with theaim of raising risk management awareness across the company.

Enhancing BCP (in Japan: an earthquake directly hitting Tokyo, natural
disasters, pandemics)
We have established the Nichino Group Emergency Response Regulations and a system to establish a controlledorganization to respond quickly and accurately in the event of an emergency such as a disaster or pandemic, or whensuch an event is predicted.
In addition, we have established guidelines for large-scale disaster countermeasures at each of our major bases,
and prepared action standards and a business continuity plan (BCP) in the event of large-scale disasters such as anearthquake directly hitting Tokyo or natural disasters. These guidelines and plans are reviewed as necessary.
In FY2022, we continued to have an Emergency Response Committee in place as a measure to prevent the spreadof COVID-19. The Committee appropriately issued notifications to Nihon Nohyaku and our Group companies regarding
measures to prevent the spread of infection, based on government requests. In terms of specific preventive measuresagainst the spread of infection, we restricted the number of employees coming into the office to up to 30% by making
the most of the work-from-home system. Moreover, in response to government requests, we reviewed our infection
prevention measures and internal guidelines for domestic and overseas business trips as appropriate.
Although we began to lift restrictions on coming into the office from May 2023, from the perspective of the impact onwork, work-life balance, workstyle reform and improving productivity, we continue to use both systems of working at theoffice and working from home. At the Head Office, we aim to have 60% of employees work in the office, and dependingon the business characteristics of each department, we will effectively utilize open plan offices and the work-fromhome system.

Corporate Social Responsibility Report 2023

32

Third-Party Opinion and
Third-Party Verification

Company Overview and List of
The Nihon Nohyaku Group Companies

Third-Party Opinion
Nihon Nohyaku Co., Ltd.
Group companies (consolidated)Non-consolidated subsidiaryaccounted for by the equity method
Group companies (non-consolidated)Affiliated companies accounted for by
the equity method

2“CSR Report 2023” reports on the philosophy structure, strategies, and activities
related to CSR of the Nihon Nohyaku Group. Its connection to the content on thewebsite has become clearer, resulting in a more complete report.

7

30
23
32

29
25
19

3
11 17

21

33 12

14

5

4 8
6 13 18

24
31

15
28
27
22
26

1 9 10 16 20

Nihon Nohyaku Co., Ltd.

as of August 1, 2023

19-8 Kyobashi 1-Chome, Chuo-ku,
Head Officeaddress
Tokyo 104-8386
FoundedNovember 17, 1928
Capital14,939 million yen
Number of employees 1,567 (as of March 31, 2023)(consolidated)
Main business
Manufacture, import, export, and sale of avariety of products including agrochemicals,
pharmaceuticals, animal health products,
industrial chemicals, wood preservatives,and agricultural materials

Head Officeand Branches

Research
Facilities
Manufacturing
Plant (contracted)

1 Head Office, Tokyo Branch (Chuo-ku, Tokyo)
2 Sapporo Branch (Sapporo-shi, Hokkaido)
3 Sendai Branch (Sendai-shi, Miyagi)
4 Osaka Branch (Osaka-shi, Osaka)
5 Fukuoka Branch (Fukuoka-shi, Fukuoka)
8 Osaka Office (Osaka-shi, Osaka)

6 Research Center (Kawachinagano-shi, Osaka)
7 Naganuma Nursery (Yubari-gun, Hokkaido)

10  Nichino Service Co., Ltd.
( 11 Fukushima Plant / 12 Kashima Plant / 14 Saga Plant)

Consolidated Group Companies
9 Nichino Ryokka Co., Ltd.

10 Nichino Service Co., Ltd. (Head Office)11 Fukushima Plant

12 Kashima Plant

13 Kawachinagano Center

Sales of chemicals/pesticides for golf courses, home & garden,
and greenification, sales of turf and turf-related materials,
planning and construction of gardens and amenity areas
Manufacturing and sales of agrochemicals, contracted
manufacturing, storage and transport of agrochemicals,
cultivation and management of fields and real estate
management

14 Saga Plant

Agrochemical sales, promotion, development, and registration in the U.S.A.
Agrochemical residue analysis and chemical substance
17 Fukushima Analytical Technology Center safety testing
18 Osaka Analytical Technology Center
19 Taiwan Nihon Nohyaku Co., Ltd.
Agrochemical sales, promotion, development, and registration in Taiwan
20 AgriMart Corporation
Sales of termite control materials and epidemic prevention insecticides
21 Nichino India Pvt. Ltd.
Agrochemical manufacturing, sales, import and export,
promotion, and development in India
22 Sipcam Nichino Brasil S.A.
Agrochemical manufacturing and sales in Brazil
23 Nichino Europe Co., Ltd.
Agrochemical sales, promotion, development, and registration in Europe
15 Nichino America, Inc.

16 Nihon Ecotech Co., Ltd.

Chuo-ku, Tokyo
Chuo-ku, Tokyo
Nihonmatsu-shi, Fukushima
Kamisu-shi, Ibaraki
Kawachinagano-shi, Osaka
Miyaki-gun, Saga
Wilmington, U.S.A.
Chuo-ku, Tokyo
Nihonmatsu-shi, Fukushima
Kawachinagano-shi, Osaka
Taipei, Taiwan
Chuo-ku, Tokyo
Hyderabad, India
Uberaba, Brazil
Cambridge, UK

Non-consolidated Subsidiary Accounted for by the Equity Method
24 Nichino Vietnam Co., Ltd.

Agrochemical sales, promotion, and development in Vietnam

Ho Chi Minh, Vietnam

Agrochemical promotion in China
Agrochemical development and registration in Brazil
Agrochemical sales, import and export, promotion, anddevelopment in the Andes and Central America
Agrochemical sales, promotion, development, and registration in Mexico
Agrochemical sales, promotion, development, and registration in South Korea
Sales and development of adjuvants and biostimulants in the UK and Europe

Shanghai, China
Sao Paulo, Brazil
Bogota, Colombia

Non-consolidated Companies
25 Nichino Shanghai Co., Ltd.

26 Nichino do Brasil Agroquímicos Ltda.
27 Nihon Nohyaku Andica S.A.S.

28 Nichino México S. de R.L. de C.V.
29 Nichino Korea Co., Ltd.

30 Interagro (UK) Ltd.

Mexico City, Mexico
Seoul, South Korea
Hertfordshire, UK

Affiliated Companies Accounted for by the Equity Method
31 Agricultural Chemicals (Malaysia) Sdn. Bhd.

32 Sipcam Europe S.p.A.

33 Tama Kagaku Kogyo Co., Ltd.

33NIHON NOHYAKU CO.,LTD.

Agrochemical manufacturing and sales in Malaysia
Agrochemical manufacturing and sales in Europe
Contract manufacturing of active ingredients and raw materials for
agrochemicals, pharmaceuticals and functional materials

Penang, Malaysia
Milan, Italy
Yashio-shi, Saitama

Points that can be commended
One of the aspects of this report that can be commended is its disclosure of
progress on priority issues (materiality). I commend Nihon Nohyaku for not only
reporting on activities, but also for making concrete disclosures such as mentioning thecommitment of top management and disclosing KGI/KPIs and their progress. Priority
issues are the most important items in CSR promotion, and how a company responds
to priority issues determines whether they can increase corporate value and add value
to their business. I’m looking forward to Nihon Nohyaku’s continuously thoroughdisclosures.
I also commend the Company for promoting diversity and developing humanresources as part of human rights management. Showing employees’ faces throughcontent such as the “Diversity Discussion” (p.9-10) made it easier to get a sense of theatmosphere at the workplace. Legislation addressing human rights is progressing in
global business, and I look forward to seeing Nihon Nohyaku further develop its
overseas business, promoting risk management through further improvement of
human rights management.

Mitsunobu Ando

Representative Director,
Association for Sustainability
Communication. He specializes insustainability management and
ESG information disclosure. With
the mission of “updating
sustainability in Japan,” heprovides sustainability
management support mainly for
listed companies. He is the authorof “Future Business Illustrated SX& SDGs” (MdN), “Emergent
Responsible Management” (Nikkei
Publishing) and many others.

Points to be improved upon
One area that could be improved upon is the disclosure of CSR strategies. Although
the amount of information on activities has increased since last year, I feel details on
the strategic side of things are still insufficient. If Nihon Nohyaku explained how muchadded value could be created through CSR promotion activities within its management
strategies aimed at being a Global Innovator, I believe the story of value creation would become clearer, and people
would be able to more deeply understand the Company’s business model.
Furthermore, although Nihon Nohyaku declared its support for the TCFD in 2022, its current environmental
information disclosure does not comply with the updated disclosure framework required by the TCFD, making it difficult
to understand the status of climate change response in the Company’s business development. The TCFD frameworkhas been adopted in the international disclosure guidelines of the International Sustainability Standards Board (ISSB),
which is considering making disclosure mandatory in Japan, so I suggest Nihon Nohyaku address this disclosure issue
as soon as possible. In particular, there is not enough information on business opportunities in “risks andopportunities,” so it is difficult to see how CSR promotion would contribute to competitive advantage. This needs to be
improved.
Sustainability-related disclosure rules are being rapidly finalized all around the world, and in Japan, partial disclosurein securities reports became mandatory as of April 2023. Even as disclosure rules change significantly, I hope that
Nihon Nohyaku will continuously respond to the information needs of stakeholders and promote the “NICHINO” brandglobally.

In Response to the Third-Party Opinion
We would like to express our sincere gratitude to Mr. Ando for his evaluation and opinion on this report. As a “Global
Innovator for Crop & Life,” the Nihon Nohyaku Group strives every day to contribute to the realization of sustainability(sustainable society). In editing this CSR report, we placed emphasis on the process of selecting CSR priority issues
and the implementation status of each issue. We will further enhance our disclosure content, focusing on the points
indicated by Mr. Ando, and continuously strive to improve our corporate value so that all stakeholders will understandand empathize with us.
Atsushi Kanaoka, General Manager, CSR Promotion Department, Nihon Nohyaku Co., Ltd.

Third-Party Verification
The CSR Report 2021 issued two years ago was verified by Japan Chemical Industry Association (JCIA) in
accordance with the mid-term target of the Nichino Group Responsible Care program (FY2020 to FY2024) (August2021). The verification included confirmation of the reasonableness of the methods of calculation and aggregation of
the performance indicators (numerical values) listed in this report as well as the accuracy of reported information
other than the numerical values in the report.
Corporate Social Responsibility Report 2023

34

Head Office19-8, Kyobashi 1-Chome (Kyobashi OM Bldg.),
Chuo-ku, Tokyo 104-8386, JAPANPhone+81-570-09-1177

Websitehttps://www.nichino.co.jp/en/index.html

We practice Green Purchasing.

Nihon Nohyaku received a
Development Bank of Japanloan based on the DBJ
Environmentally Rated Loan
Program, and has been rated
as “a company with advanced
environmental activities.”