type B1-E

SUSTAINABILITYDATACONTENTS
116 M
 aterial Balance and Environmental
Contribution of the Nippon Sanso
Holdings Group117 Environment
120 Society
123 Governance
125 Intellectual Property and Research andDevelopment126	Calculation Methods for Scope 3 GHG
Emissions128	Calculation Methods for GHG Emission
Reduction Contribution
129 Independent Assurance Report

INFORMATION

Sustainability Data

Material Balance and Environmental Contribution of the Nippon Sanso Holdings Group

Environment
Unit

Raw material

EnergyFuels

Energy consumption ratio
by segment

1.0% 1.3%

0.2%

1.5%

11,856 TJ
104,976 TJ(107.76 million kWh)Electric power

INPUT

Energy consumption ratio
by facility

117,586 TJ

Heat

754 TJ

Water

4,591 ten thousands of m3

Water supply fromlocal government

10.2%

9.3%
31.8%
24.2%

86.0%
34.4%

1,759 ten thousands of m3

Groundwater

271 ten thousands of m3

Surface water

2,558 ten thousands of m3

Air separation
HyCO business
Liquid carbon dioxide businessDistribution
Other

3 ten thousands of m3

Gas Business in Japan
Gas Business in the United States
Gas Business in Europe
Gas Business in Asiaand Oceania
Thermos Business

BUSINESSACTIVITIESOtherOUTPUTAir separation

HyCO business

GHG Emissions

5,921 thousands of tonnes CO2e

Scope 1

1,087 thousands of tonnes CO2e

Scope 2

4,834 thousands of tonnes CO2e

Distribution

GHG emissions ratio
by facility

GHG emissions ratio
by segment

1.4% 1.1%

0.2%
10.8%

18.0%

2,988 ten thousands of m3

Wastewater

Liquid carbon dioxidebusiness

1.1%

15.0%

38.1%

14,352 tonnes

Waste emissions

78.4%

3,875 tonnes

Waste disposed of as landfill* Please refer to P.117–P.119 for the reporting boundary and waste amount calculation method.
Indicators with mark have been assured by KPMG AZSA Sustainability Co., Ltd. with respect toactual results for FYE2022.

Air separation
HyCO business
Liquid carbon dioxide businessDistribution
Other

36.0%

Gas Business in Japan
Gas Business in the United States
Gas Business in Europe
Gas Business in Asiaand Oceania
Thermos Business

GHG Emission Reduction Contribution
6,865 thousands of tonnes CO2e*1
Products and services*2

Industrial gases*3, *4

3,176
thousand of tonnes CO2e

3,689
thousand of tonnes CO2e

Indicators with mark have been assured by KPMG AZSA
Sustainability Co., Ltd.

*1 F or details on the reporting boundaries and calculation methods, please refer to P.128, “Calculation
Methods for GHG Emission Reduction Contribution.”*2 G
 HG emission reduction contribution for products and services is calculated in accordance with the
Guidelines for Quantifying GHG Emission Reductions of Goods or Services through Global Value
Chain (Ministry of Economy, Trade and Industry).
*3 GHG emission reduction contribution from the use of industrial gases*4 G
 HG emission reduction contribution through industrial gases includes the reduction contribution of
consolidated subsidiaries in Japan, Europe, Asia and Oceania, and certain affiliated companies.

NIPPON SANSO HOLDINGS CORPORATION

116

FYE2022

FYE2021

Greenhouse Gas (GHG) Emissions

Material Balance
Air, natural gas, by-product gas(CO2 raw material)

FYE2020

INTEGRATED REPORT 2022

GHG Emissions Scope 1

Thousands oftonnes CO2e

1,061

987

1,087

GHG Emissions Scope 2

Thousands oftonnes CO2e

4,747

4,664

4,834

GHG Emissions Scope 3—Total for the Following Categories*

Thousands oftonnes CO2e

3,667

4,341

3,408

Category 1
Purchased goods and services

Thousands oftonnes CO2e

883

883

897

Category 2*
Capital goods

Thousands oftonnes CO2e

65

44

42

Category 3
Thousands ofFuel- and energy-related activities not included in Scope 1 and Scope 2 tonnes CO2e

276

248

276

Category 4
Upstream transportation and distribution (Including transportation
services whose cost is borne by the Company)

Thousands oftonnes CO2e

40

37

39

Category 5
Waste generated in operations

Thousands oftonnes CO2e

N/A

2

1

Category 6
Business travel

Thousands oftonnes CO2e

1

1

1

Category 7
Employee commuting

Thousands oftonnes CO2e

3

3

3

Category 8
Upstream leased assets

Thousands oftonnes CO2e

N/A

N/A

N/A

Category 9
Downstream transportation and distribution

Thousands oftonnes CO2e

N/A

N/A

N/A

Category 10
Processing of sold products

Thousands oftonnes CO2e

N/A

N/A

N/A

Category 11
Use of sold products

Thousands oftonnes CO2e

1,583

2,436

1,466

Category 12
End-of-life treatment of sold products

Thousands oftonnes CO2e

N/A

N/A

N/A

Category 13
Downstream leased assets

Thousands oftonnes CO2e

N/A

N/A

N/A

Category 14
Franchises

Thousands oftonnes CO2e

N/A

N/A

N/A

Category 15
Investments

Thousands oftonnes CO2e

816

687

683

Reporting boundary: Scope 1 emissions and Scope 2 emissions represent Nippon Sanso Holdings and its main consolidated subsidiaries. For information on Scope 3 emissions aggregation, pleaserefer to P.126–P.127.
Scope 1 emissions: Direct emissions occurring from sources owned or controlled by the company
Scope 2 emissions: Indirect emissions from the use of electricity, steam, and heat
Scope 3 emissions: Indirect emissions other than Scope 2 emissions
GHG emissions in Japan are calculated using emission factors provided in Japan’s Act on Promotion of Global Warming Countermeasures (for electricity, up until FYE2021 the basic emission factors for each electricity provider and from FYE2022 the adjusted emission factors for each provider). For GHG emissions overseas, Scope 1 emissions are calculated using emission factors set forthin Japan’s Act on Promotion of Global Warming Countermeasures. Scope 2 emissions are calculated using country-specific emission factors published by the IEA. However, for electricity inEurope, beginning FYE2021 a separate emission factor for each electricity provider is used, and emissions are calculated making reference to the Guarantee of Origin. Furthermore, fromFYE2022, emissions from electricity use at Taiyo Gases Co., Ltd. and Top Thermo Manufacturing (Malaysia) Sdn. Bhd are calculated using emissions coefficients for each electricity provider, whileemissions from electricity use in the United States, China, Taiwan, and Singapore are calculated using published grid coefficients for each country. Please refer to P.126–P.127 for calculation
method for Scope 3 emissions.
Indicators with mark have been assured by KPMG AZSA Sustainability Co., Ltd. for FYE2022.
* Due to a revision of the aggregation method, figures presented in previous fiscal years have been retroactively amended.

NIPPON SANSO HOLDINGS CORPORATION117

INTEGRATED REPORT 2022

INFORMATION

Sustainability Data

FYE2020

Unit

FYE2022

FYE2021

Products and Services
Industrial Gases

FYE2020

FYE2021

FYE2022

Waste

Contributions to Environmental Protection through Products

GHG Emission Reduction
Contribution

Unit

Thousands of tonnes CO2e

2,373

―

Thousands of tonnes CO2e

3,176
3,689

2,892
2,174

See P.128 for details about reporting boundaries and the calculation methods.

Energy Usage

Energy Consumption
Electric power
Fuels
Heat

109,512
97,483
11,378651

Terajoules
Terajoules
Terajoules
Terajoules

104,142
93,40010,004
738

117,586
104,976
11,856754

Waste generated*1
Waste disposed of as landfill*2
Hazardous waste generated*3
Waste recycled*4

TonnesTonnesTonnesTonnes

3,762
284
197
2,381

14,715*5
7,152
1,799*5
4,885*5

14,352
3,875
2,015
7,623

Reporting boundary: Nippon Sanso Holdings and its main consolidated subsidiaries
Beginning FYE2021, main overseas consolidated subsidiaries are included in the reporting boundary. Waste generated by the Gas Business in Japan is the volume for which the Company issued
a manifest.
*1 Includes valuable materials *2 Includes residue after intermediate treatment outside the Group company *3 Includes specially controlled industrial waste*4 We consider waste collected to be the amount of resources recycled. *5 To improve the accuracy of data aggregation, values presented in FYE2021 have been retroactively amended.

Reporting boundary: Nippon Sanso Holdings and its main consolidated subsidiaries
The energy of the consumed fuels are calculated based on the gross calorific values specified in Japan’s Act on the Rational Use of Energy. Purchased electricity and purchased steam are converted into primary energy amounts.

The figures for chemical oxygen demand (COD) emissions, nitrogen emissions in wastewater, and phosphorus emissions have been omitted from disclosure since the amounts of these emissions
have been immaterial. The Nippon Sanso Holdings Group uses water primarily for indirect cooling, and its impacts on water quality are therefore not large. Taiyo Nippon Sanso and its Japanesesubsidiaries have five business sites that are subject to restrictions on the concentration of COD, nitrogen, and phosphorous emissions in wastewater. The total amounts of COD, nitrogen, andphosphorous emissions for all five sites amount to less than one tonne each.

Environmental Impact

GHG Emissions

Nitrogen oxide (NOx) emissions
Sulfur oxide (SOx) emissions
Particulate emissions
Volatile organic compound (VOC) emissions

Tonnes

3.2
1.4
0.1
10

1.8
1.0
0.1
5

2.0
1.1
0.1
8

Tonnes21

8

10

TonnesTonnesTonnesReleases of substances designated under the Pollutant Release
and Transfer Register (PRTR)*

Water Usage
Breakdown ofsources of fresh water
withdrawnTen thousands of m3
Ten thousands of m3
Ten thousands of m3
Ten thousands of m3
Ten thousands of m3
Ten thousands of m3

Thousands of tonnes CO2e
Thousands of tonnes CO2e
Thousands of tonnes CO2e
Thousands of tonnes CO2e
Thousands of tonnes CO2e
Thousands of tonnes CO2e

5,808
2,273
2,164
871
499
1

5,651
2,014
2,066
1,049
511
11

5,921
2,253
2,130
885
638
15

109,51237,04837,94625,0689,437
13104,142
33,63536,172
24,9609,201
174

117,586
37,442
40,48428,468
10,952240

10,013
3,742
2,861
2,464
945
1

9,592
3,402
2,824
2,442
908
16

10,776
3,783
3,114
2,762
1,094
23

3,002
732
724
1,317
229

4,335
676
707
2,730
205
17

4,591
746
729
2,703
393
20

3,762
3,675

14,715*2
5,505
5,691
758
395
2,366*2

14,352
4,187
3,486
2,909
1,399
2,371

Energy Consumption

Reporting boundary: Consolidated subsidiaries in Japan, including Taiyo Nippon Sanso Corporation* Due to a revision of the aggregation method, figures presented in previous fiscal years have been retroactively amended.

Water Withdrawal
Water supply from local government
Municipal waterIndustrial water
Groundwater
Surface water
Other

GHG Scope 1 + Scope 2
Gas Business in Japan
Gas Business in the United States
Gas Business in Europe
Gas Business in Asia and Oceania
Thermos Business

3,002
1,496
429
1,067
276
1,230

Ten thousands of m3

4,591
1,759
576
1,183
271
2,558
3

4,335
1,472
490
982
258
2,602
3

̶

Reporting boundary: Gas production plants operated by consolidated subsidiaries of Nippon Sanso Holdings in Japan, business locations with facilities specified under the Water Pollution
Prevention Act, and main overseas consolidated subsidiaries

Total
Gas Business in Japan
Gas Business in the United States
Gas Business in Europe
Gas Business in Asia and Oceania
Thermos BusinessThousands of gigajoules
Thousands of gigajoules
Thousands of gigajoules
Thousands of gigajoules
Thousands of gigajoules
Thousands of gigajoules

Electricity Consumption

Total
Gas Business in Japan
Gas Business in the United States
Gas Business in Europe
Gas Business in Asia and Oceania
Thermos BusinessMillions of kWhMillions of kWhMillions of kWhMillions of kWhMillions of kWhMillions of kWh

Water Withdrawal

Result of Water Stress Level Survey Results
The NSHD Group conducts a survey on water stress over all of its production sites in order to apprehend the risks related to use of water
resources and facilitate more effective response to water risks. Using the Aqueduct water risk evaluation tool developed by the World Resources
Institute, we surveyed water stress at 119 sites, with the following results.
* Water risk category: Baseline water stress
Upper level: Water usage (thousand m3), lower level: Number of production sites

High

Medium–highMediumMedium–low

Low

Japan

0
(0/24)

0(0/24)

1,834(6/24)

4,675(15/24)488(3/24)The United States840(5/44)

305(3/44)

1,469(13/44)490(4/44)

4,122(19/44)

Europe752(7/29)

0(0/29)

9,521(8/29)

249(3/29)

16,489(11/29)Asia and Oceania

270(3/20)

115(1/20)

724(5/20)

797(6/20)

1,805(5/20)

Thermos

0
(0/2)

0
(0/2)

0
(0/2)

84
(1/2)

111
(1/2)

Overall

1,862(15/119)420(4/119)13,548(32/119)

6,295(29/119)

23,015(39/119)

Total
Gas Business in Japan
Gas Business in the United States
Gas Business in Europe
Gas Business in Asia and Oceania
Thermos Business

Ten thousands of m3
Ten thousands of m3
Ten thousands of m3
Ten thousands of m3
Ten thousands of m3

̶

Ten thousands of m3

Waste Generated (Including Valuable Materials)*

1

Total
Gas Business in Japan
Gas Business in the United States
Gas Business in Europe
Gas Business in Asia and Oceania
Thermos Business

TonnesTonnesTonnes―――Tonnes87

TonnesTonnes*1 Beginning FYE2021, main overseas consolidated subsidiaries are included in the reporting boundary. Waste generated by the Gas Business in Japan is the volume for which the Company
issued a manifest.
*2 To improve the accuracy of data aggregation, values presented in FYE2021 have been retroactively amended.

• FYE2022 data
• Conducted a water stress survey using the Aqueduct water risk evaluation tool
• Reporting boundary: Production sites with ASU, HyCO, or liquid carbon dioxide facilities with annual water withdrawal of 20,000 m3 or more and Thermos

NIPPON SANSO HOLDINGS CORPORATION118

INTEGRATED REPORT 2022

NIPPON SANSO HOLDINGS CORPORATION119

INTEGRATED REPORT 2022

INFORMATION

Sustainability Data

Society
Unit

FYE2020

FYE2021

FYE2022

Employees and Diversity (Consolidated)

Unit

FYE2020

FYE2022

FYE2021

Employees, Diversity, and Work–Life Balance (Registered employees of Taiyo Nippon Sanso Corporation)
Number ofindividuals
Number ofindividuals
Number ofindividuals
Number ofindividuals
Number ofindividuals
Number ofindividuals

Employees*
Gas Business in Japan
Gas Business in the United States
Gas Business in Europe
Gas Business in Asia and Oceania
Thermos Business

19,341

19,155

19,172

Employees

6,292

6,295

6,465

Employees by gender

4,724

4,534

4,406

Male

2,794

2,884

2,912

Female

4,195

4,114

4,102

1,336

1,328

1,287

Employees by gender
Number ofindividuals
Number ofindividuals

Male
FemaleNumber ofindividuals

2,024

2,065

2,075

Number ofindividuals
Number ofindividuals

1,775

1,789

1,784

249

276

291

20s and below

%

18.9

19.5

19.8

30s

%

19.7

20.1

20.3

Employees by age group (Composition ratio)

15,54615,307

15,233

40s

%

29.6

27.6

25.7

3,795

3,848

3,939

50s and above

%

31.8

32.9

34.2

Employees by age group (Composition ratio)

Years of consecutive service

20s and below

%

16.8

16.6

16.4

Overall average

Years

17.9

17.8

17.8

30s

%

24.8

24.6

25.0

Men

Years

18.5

18.5

18.6

40s

%

29.0

28.6

30.1

Women

Years

13.8

12.9

13.3

50s and above

%

29.4

30.2

28.5

Average age

Years

41.9

42.3

42.4

New hires

Number ofindividuals

109

102

85

%

3.1

2.8

3.3

Hours

31,20032,16016,320Years of consecutive service
Overall average

Years

12.4

11.3

11.4

Employee turnover rate*1

Men

Years

12.7

11.7

11.5

Companywide employee training hours*2

Women

Years

11.5

9.5

11.1

New employee training hours

Average age

Years

41.0

42.3

44.2

Employee training hours

New hires

Number ofindividuals

2,095

1,893

2,917

Unions members

Hours

13,897

17,716

21,504

Number ofindividuals

1,146

1,195

1,214

%

56.6

57.8

58.5

0

0

0

Employee turnover rate

%

6.1

5.7

7.1

Union members as a percentage of the total number of employees

Female employees as a percentage of the total number of employees

%

19.6

20.1

20.5

Layoffs*

Female managers as a percentage of total managerial positions

%

13.7

14.6

14.8

Female employees as a percentage of total number of employees

%

12.3

13.4

14.0

Female managers as a percentage of total managerial positions

%

1.5

1.5

1.5

* Aggregated from actual figures of the Nippon Sanso Holdings Group companies as of the end of each fiscal year. Due to differences in the reporting periods, part of the data includes figures asof the end of December.

Number ofindividuals

3

Employment ratio of persons with disabilities (as of June 1 of each fiscal year)
Employees and Diversity (Non-Consolidated)

Number of employees reemployed after retirement

Number ofindividuals

̶

81 *

86 *

Number ofindividuals
Number ofindividuals

̶

66

71

̶

15

15

Female employees as a percentage of the total number of employees

%

̶

18.5

17.4

Female managers as a percentage of total managerial positions

%

̶

4.1

3.6

Employees
Employees by gender
Male
Female* Includes employees working concurrently for Taiyo Nippon Sanso Corporation (47 employees in FYE2021, 49 employees in FYE2022)

NIPPON SANSO HOLDINGS CORPORATION

120

INTEGRATED REPORT 2022

Employees using childcare leave systems
Men
Women
Employees using nursing care leave or long-term nursing care leave
Usage rate for annual paid leave*4

%

2.3

2.3

2.5

Number ofindividuals
Number ofindividuals
Number ofindividuals
Number ofindividuals
Number ofindividuals

64

74

82

7

16

19

0

6

6

7

10

13

0

0

0

%

62.5

60.2

61.5

0

0

0

Number ofindividuals

Employees using volunteer leave system*1 Employee turnover rate is the number of employees leaving the Company during the fiscal year (including mandatory-age retirees and excluding personnel transferring to other Group companies) divided by the number of employees at the end of the fiscal year
*2 Reporting boundary: Training hours of Taiyo Nippon Sanso Corporation employees and Taiyo Nippon Sanso Group employees who took training held by Taiyo Nippon Sanso Corporation*3 Employees leaving the Company for reasons attributable to the Company (dismissals)*4 The number of new days granted in the reporting year is the denominator. The number of days used in the reporting year is the numerator. The denominator does not include the number ofdays carried over from the previous fiscal year.

NIPPON SANSO HOLDINGS CORPORATION121

INTEGRATED REPORT 2022

INFORMATION

Sustainability Data

Unit

FYE2020

FYE2021

FYE2022

GovernanceUnit

FYE2020

FYE2022

FYE2021

Activities of Committees

Others (Consolidated)

Expenditures on social contribution initiatives

Millions of yen

49.4

109.7

84.5

Number ofindividuals
Number ofindividuals
Number ofindividuals
Number ofindividuals

Management Configuration
Internal directors* Data is calculated on a consolidated basis from FYE2021.

Independent outside directors

9

9

9

7

7

6

2

2

3

4

3

1

Occupational Health and Safety

Directors serving concurrently as executive officers

Frequency rate of occupational accidents resulting in lost workdays(Number of injuries / fatalities due to occupational accidents per million work hours)

Percentage of directors serving concurrently as executive officers

%

44.4

33.3

11.1

Nippon Sanso Holdings Group (Including Taiyo Nippon Sanso Group)

ー

2.20*

2.51*

2.10

Independent outside directors as a percentage of total Board of
Directors’ members

%

22.2

22.2

33.3

Taiyo Nippon Sanso Group

ー

0.73

0.64

0.52

Female directors as a percentage of total Board of Directors’ members

%

0.0

0.0

11.1

Term of appointment

Years

1

1

1

Frequency of Board of Directors’ meetings

Times

12

11

14

Attendance at Board of Directors’ meetings

%

99.1

98.0

98.4

%

100.0

100.0

100.0

0

0

0

4

4

4

1

1

1

2

2

2

* To improve the accuracy of data aggregation, values presented in past fiscal years have been retroactively amended.
Reporting boundary: Consolidated subsidiaries with production divisions in Japan and overseas

Attendance of independent outside directors at Board of Directors’ meetings

Reporting Boundary

Number of directors attending less than 75% of Board of Directors’ meetings

Main consolidated subsidiaries
Consolidated subsidiaries in Japan including Taiyo Nippon Sanso Corporation (International Carbon Dioxide Co., Ltd. added from FYE2022);
Matheson Tri-Gas, Inc.; Nippon Gases Euro-Holding S.L.U. and its consolidated subsidiaries; Leeden National Oxygen Ltd.; Leeden Gases Sdn. Bhd;
Nippon Sanso Ingasco, Inc.; Nippon Sanso Ingasco Philippines, Inc.; Nippon Sanso Ingasco Clark, Inc.; Nippon Sanso (Thailand) Co., Ltd.;
Ayutthaya Industrial Gases Co., Ltd.; Taiyo Gases Co., Ltd.; Nippon Sanso Vietnam Joint Stock Company; Taiyo Nippon Sanso India Pvt. Ltd.;
Shanghai Taiyo Nippon Sanso Gas Co., Ltd.; Suzhou Taiyo Nippon Sanso Gas Co., Ltd.; Dalian Changxing Island Taiyo Nippon Sanso Gas Co., Ltd.;
Dalian Taiyo Nippon Sanso Gas Co., Ltd.; Yangzhou Taiyo Nippon Sanso Semiconductor Gases Co., Ltd.; Matheson Gas Products Korea Co., Ltd.;
Nippon Sanso Taiwan, Inc.; Taiyo Nippon Sanso Engineering Taiwan, Inc.; Fu Yang Gas Co., Ltd.; Supagas Pty Ltd; Nippon Sanso Myanmar Co., Ltd.;Top Thermo Manufacturing (Malaysia) Sdn. Bhd; Vacuumtech Philippines Inc.

Beginning FYE2021, environmental data includes the HyCO plant and liquid carbon dioxide plant of Nippon Gases Euro-Holding S.L.U. and its
consolidated subsidiaries, Top Thermo Manufacturing (Malaysia) Sdn. Bhd. and Vacuumtech Philippines Inc.; and from FYE2022, data was addedfrom Nippon Gases Euro-Holding S.L.U. and its subsidiary filling sites, Leeden Gases Sdn. Bhd., and Matheson Gas Products Korea Co., Ltd.

Audit & Supervisory Board members
Internal Audit & Supervisory Board members
Independent outside Audit & Supervisory Board members

Number ofindividuals
Number ofindividuals
Number ofindividuals
Number ofindividuals

Independent outside Audit & Supervisory Board members as a percentage of total Audit & Supervisory Board members

%

50.0

50.0

50.0

Female Audit & Supervisory Board members as a percentage of total
Audit & Supervisory Board members

%

0.0

0.0

0.0

Frequency of Audit & Supervisory Board meetings

Times

16

16

17

Attendance at Audit & Supervisory Board meetings

%

92.2

100.0

100.0

Attendance of independent outside Audit & Supervisory Board members
at Audit & Supervisory Board meetings

%

89.6

100.0

100.0

Number of Audit & Supervisory Board members attending less than 75%
of Audit & Supervisory Board meetings

Number ofindividuals

1

0

0

Average age of directors and Audit & Supervisory Board members
Number of executive officers*
Female executive officers as a percentage of total executive officers

Years

64.3

64.8

65.8

Number ofindividuals

22

7

6

%

0.0

0.0

0.0

* Figures for FYE2021 represent executive officers of Nippon Sanso Holdings (including the President CEO). Figures for FYE2020 and earlier represent executive officers of Taiyo Nippon Sanso
Corporation (including the President CEO).

NIPPON SANSO HOLDINGS CORPORATION122

INTEGRATED REPORT 2022

NIPPON SANSO HOLDINGS CORPORATION123

INTEGRATED REPORT 2022

INFORMATION

Sustainability Data

Unit

FYE2020

FYE2022

FYE2021

FYE2020

Unit

FYE2022

FYE2021

Intellectual Property

Activities of Committees

Advisory Committee on Appointments and Remuneration
Members
Internal directors
Independent outside directors
Frequency of meetings
AttendanceManagement Committee
Members
Frequency of meetings
Attendance*1
Investment Committee
Members*2
Frequency of meetings
Attendance*1
Global Strategy Review Committee
Members
Frequency of meetings
Attendance
Global Risk Management Committee
Members
Frequency of meetings
Attendance
Global Compliance Committee
Members*3
Frequency of meetings*4
Attendance*1 Average attendance rate

Intellectual Property and Research and Development*2 Excluding additional attendees and Secretariat

Number of individuals
Number of individuals
Number of individuals
Times
%

3
1
2
11
100.0

3
1
2
6
100.0

5
2
3
10
100.0

17
16
97.1

13
6
100.0

13
11
100.0

12
2
100.0

15
1
93.3

15
3
93.3

Number of individuals
Times%
Number of individuals
Times%
Number of individuals
Times
%

̶
̶
̶

17
1
100.0

17
1
100.0

̶
̶
̶

17
1
100.0

18
1
100.0

20
0

20
0

8
1
87.5

Registered patents
Patents

1,255

1,578

1,591

Japan

Patents

802

925

941

Overseas

Patents

453

653

650

Total

* Figures through FYE2020 represent Taiyo Nippon Sanso Corporation patents only. The figures for FYE2021 onward represent the total for all NSHD Group operating companies combined.

NSHD Patents

Times%
Number of individuals
Times

̶

%
*3 Excluding attendees and Secretariat from FYE2022

̶

1%

1,800
1,500

1,255

1,200

1,094

1,147

900

328

373

453

738

774

802

2018

2019

2020

600
300
0

Number of individuals

Ratio of NSHD Patents by Business

Patents

Japan

Overseas

1,578

1,591

653

650

8%

11%
12%
925

34%

941

17%
2021

12%

2022 (Years ended

35%

Number of
Patents Overseas

Number of
Patents in Japan

941

20%

650

25%

March 31)

* Figures through FYE2019 represent the number of patents as of December 31 of
the previous fiscal year. The figures for FYE2020 onward represent the number ofpatents at fiscal year-end. Figures through FYE2020 represent Taiyo Nippon Sanso
Corporation patents only. The figures for FYE2021 onward represent the total for
all NSHD, including those of its operating companies.

25%

Industrial gases
Plant and engineering

Electronics-related products
MedicalThermos
Others

*4 Not held during FYE2020 or FYE2021 due to COVID-19

Research and Development
Remuneration for Officers

Research and Development

Remuneration for directors (excluding outside directors)
Millions of yen
Total
Millions of yen
Basic remuneration
Millions of yen
Corporate political contributions
Remuneration for Audit & Supervisory Board members (excluding independent outside members)
Millions of yen
Total
Millions of yen
Basic remuneration
Remuneration for independent outside directors
Millions of yen
Total
Millions of yen
Basic remuneration
Remuneration for independent auditors
Millions of yen
Total
Millions of yen
Remuneration for audit services
Millions of yen
Other remuneration for independent auditors

255
162
93

263
169
94

200
141
59

25
25

27
27

28
28

102
102

100
100

108
108

198
195
3

210
209
1

222
218
4

Not adopted
AdoptedNot adopted
AdoptedNot adopted
AdoptedAdopted(Internal)(Currently disclosed on
the Company website)

Millions of yen

3,389

3,315

3,569

Gas Business in Japan

Millions of yen

2,691

2,694

2,872

Gas Business in the United States

Millions of yen

658

589

659

Thermos BusinessMillions of yen

39

32

37

Total

OthersAnti-takeover measures
Code of ethics—

Policy on transparency of tax affairs——

Millions of yen
Corporate political contributions*
Number of violations
Violations of rules for the prevention of corruption
Monetary penalties incurred as a result of violations of guidelines forMillions of yen
the prevention of corruption

AdoptedAdopted(Currently disclosed on
the Company website)

0.0
0

0.0

０

0.2
0

0.0

0.0

0.0

* Reporting boundary is consolidated from FYE2022.

NIPPON SANSO HOLDINGS CORPORATION124

INTEGRATED REPORT 2022

NIPPON SANSO HOLDINGS CORPORATION

125

INTEGRATED REPORT 2022

INFORMATION

Sustainability Data

Calculation Methods for Scope 3 GHG Emissions
Referenced Guidelines
Our Scope 3 GHG emissions are calculated based on the Corporate Value Chain (Scope 3) Accounting and Reporting Standard
issued by the GHG Protocol.
For emission factors, we used the emission factor database Ver. 3.1 provided in the Green Value Chain Platform, the Inventory
Database for Environmental Analysis (IDEA v2) for supply chain GHG emissions accounting, and information included in MiLCA
Ver. 2, a life-cycle assessment software developed by the Japan Environmental Management Association for Industry.
Reporting Boundary
Unless otherwise specified, the data covers Nippon Sanso Holdings and its consolidated subsidiaries in Japan, including
Taiyo Nippon Sanso Corporation.
Calculation Method by Category

Category 1
Purchased goods and services

Calculated by multiplying the amounts of products and services in physical or monetary units purchased by Taiyo Nippon Sanso Corporation by the respective emission factor for each type of productor service. However, emissions from transport and shipping services and from oxygen, nitrogen, andargon purchased from Taiyo Nippon Sanso’s consolidated subsidiaries or affiliates are included in thereporting boundary of Scope 1 or 2, or categories 4 and 15 of Scope 3, and are therefore deductedfrom the procured amounts used for this calculation.

Category 2
Capital goods

Calculated by multiplying the amounts of capital investment during each reporting fiscal year by anemission factor per price of capital goods.

Category 3
Fuel- and energy-related activities
not included in Scope 1 and 2This category includes emissions associated with the extraction, production, and transportation of­purchased fuels and those consumed in the production of electricity and steam that are purchasedby the Group.
Fuels: Calculated by multiplying the amount purchased during the fiscal year by an emission factor
for each fuel type.
Electricity and steam: Calculated by multiplying the amount purchased from outside the Group by
the upstream emission factor for each purchased energy reflecting electricity transmission loss.

Category 4
Upstream transportation and distribution (Including distribution services
whose cost is borne by the Group)

Calculated by subtracting the CO2 emissions from logistics subsidiaries, which are included in Scope 1
emissions, from the CO2 emissions reported for Taiyo Nippon Sanso Corporation and Nippon Ekitan
Corporation as specified shippers in accordance with the Act on Promotion of Global WarmingCountermeasures.
CO2 emissions related to transportation and distribution of products for which Taiyo Nippon Sanso
Corporation and Nippon Ekitan Corporation bear the transportation costs are included in this category.

Category 5
Waste generated in operations

Calculated by multiplying industrial waste output by the emission factors for each waste type(including transportation stages).

Category 6
Business travel

Calculated by multiplying the number of employees of consolidated subsidiaries in Japan, including
Taiyo Nippon Sanso Corporation by the emission factor (0.13 tonnes of CO2/person/year).

Category 7
Employee commuting

Taiyo Nippon Sanso Corporation employees: For train commuters, the annual payment for commuter
passes is multiplied by an emission factor per transportation expense. For car com­muters, the roundtrip distance is multiplied by the annual number of commuting days and an emission factor perperson-kilometer for passenger car.
Employees of Japanese consolidated subsidiaries: The number of employees is multiplied by theannual number of commuting days, and multiplied by the emission factor per commuting day.

NIPPON SANSO HOLDINGS CORPORATION126

INTEGRATED REPORT 2022

Category 8
Upstream leased assets

Since the amount of applicable lease assets is negligible, emissions in this category are not calculated.

Category 9
Downstream transportationand distribution

The emissions associated with the transportation of sold products whose cost is borne by Taiyo
Nippon Sanso Corporation and Nippon Ekitan Corporation fall within category 4 as the Group basically bears the cost of transporting products.

Category 10
Processing of sold products

The Taiyo Nippon Sanso Group’s main product group is gas, and since it is difficult to rationallycalculate the GHG emissions associated with the processing of these products, the emissions are
not calculated.

Category 11
Use of sold products

The amount of CO2 emissions generated from the use of propane gas (LP gas), liquid carbon dioxidegas, and dry ice, and from use of electricity for the operation of its ASUs during the service life,
which were sold to customers outside of the Taiyo Nippon Sanso Group.

Category 12
End-of-life treatment of sold products

The Taiyo Nippon Sanso Group’s primary products are gases (oxygen, nitrogen, and argon). After use,these gases return to the atmosphere and do not become waste. Furthermore, since the gas containers are loaned, and therefore the amount of waste from sold is negligible, emissions in this category
are not calculated.

Category 13
Downstream leased assets

Since the amount of applicable lease assets is negligible, emissions in this category are not calculated.

Category 14
Franchises

As the Group does not have any businesses in this format, there are no emissions in this category.

Category 15
Investments

Calculated by multiplying the GHG emissions of each of the eight affiliates of Taiyo Nippon Sanso
Corporation in Japan that produce gas by the Company’s shareholding ratio (as of the fiscal year-end).
The eight companies’ GHG emissions are based on their actual emissions in the reporting period.

NIPPON SANSO HOLDINGS CORPORATION127

INTEGRATED REPORT 2022

INFORMATION

Sustainability Data

Calculation Methods for GHG Emission Reduction Contribution

Independent Assurance Report

We include the following products and services sold by consolidated subsidiaries of Nippon Sanso Holdings and certain affiliatedcompanies in the calculation of GHG emission reduction contribution. The calculation method per product or service is as follows.
The CO2 emission factors used for electricity are 0.453 t-CO2/MWh in Japan, 0.402 t-CO2/MWh in Europe, and the emissions
factors published by the IEA for each country in Asia and Oceania.
Environmental product offerings
and applications
Products and services

Combustion-type exhaustgas abatement system
Reporting boundary: Consolidated
subsidiaries in Japan

SF6 recovery service
Reporting boundary: Consolidated
subsidiaries in JapanSCOPE-Jet®
Reporting boundary: Consolidated
subsidiaries in JapanMG Shield®

Reporting boundary: Consolidated
subsidiaries in Japan

New refrigerants
Reporting boundary: Consolidated
subsidiaries in Europe

Nitrogen gas supply system
for laser processing (PSA)
Reporting boundary: Consolidated
subsidiaries in Japan

Shuttle Chef®
Reporting boundary: Consolidated
subsidiaries in Japan

Hydrogen station
Reporting boundary: Consolidated
subsidiaries in Japan
Industrial gases

Oxygen-enriched combustion in blast furnaces
Reporting boundary: Consolidated
subsidiaries in Japan and Europe,and affiliated companies in Japan

Oxygen-enriched combustion in electronic furnaces
Reporting boundary: Consolidated
subsidiaries in Europe and Asiaand Oceania

Argon (Ar) welding
Reporting boundary: Consolidated
subsidiaries in Europe

Calculation method for GHG emission reduction

Independent Assurance Report
To the Representative Director, President CEO of Nippon Sanso Holdings Corporation

Calculation period
FYE2020

FYE2021

FYE2022

We were engaged by Nippon Sanso Holdings Corporation (the “Company”) to undertake a limited assurance engagement of the envi-

Contribution to GHG emission reduction through products and services using the Nippon Sanso Holdings Group’s proprietary technologies

ronmental and social performance indicators marked withAn average processing capacity of 0.6 L/min for nitrogen trifluoride (NF3) gas per one combustion-type exhaustgas abatement system was assumed, and this value was multiplied by the number of such systems that were
installed in FYE2019 and FYE2022, the number of operating hours per year, and the global warming potential(GWP) of NF3 to calculate the GHG emission reduction contribution. The amount of CO2 emissions from fuelused in combustion equipment was deducted

included in its Integrated Report 2022 (the “Report”) for the fiscal year ended March 31, 2022.

The volume of sulfur hexafluoride (SF6) gas recovered in FYE2022 was multiplied by its GWP to calculate GHG
emission reduction contribution.

Based on actual observed values at two electronic furnace manufacturers who had introduced SCOPE-Jet®, theelectricity-saving effect per volume of jet oxygen (kWh/Nm3) was calculated. The ratio of the number of plantsthat have introduced SCOPE-Jet® to the total number of electric furnace manufacturing plants was multipliedby the volume of crude steel products by electric furnaces in Japan in FYE2022, and the resulting number was
assumed to be the production volume of crude steel contributed by the electricity saving from SCOPE-Jet®. The
amount of oxygen consumed by SCOPE-Jet® in the production of this crude steel, and the amount of electricity
saved per volume of oxygen were multiplied by the CO2 emission factor for electricity to calculate the GHG emission reduction contribution. The amount of the CO2 emissions generated during the manufacture of the oxygen
was deducted.
The amount of SF6 gas whose use was avoided through use of MG Shield® sold in FYE2022 was multiplied by thegas’ GWP to calculate the GHG emission reduction contribution.

○

○

○

(the “Indicators”) for the period from April 1, 2021 to March 31, 2022

The Company’s Responsibility
The Company is responsible for the preparation of the Indicators in accordance with its own reporting criteria (the “Company’s reporting

○

○

○

criteria”), as described in the Report.
Our Responsibility
Our responsibility is to express a limited assurance conclusion on the Indicators based on the procedures we have performed. We conducted our engagement in accordance with the ‘International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements

○

○

○

other than Audits or Reviews of Historical Financial Information’ and the ‘ISAE 3410, Assurance Engagements on Greenhouse Gas
Statements’ issued by the International Auditing and Assurance Standards Board. The limited assurance engagement consisted of making
inquiries, primarily of persons responsible for the preparation of information presented in the Report, and applying analytical and otherprocedures, and the procedures performed vary in nature from, and are less in extent than for, a reasonable assurance engagement.
The level of assurance provided is thus not as high as that provided by a reasonable assurance engagement. Our assurance procedures

○

○

○

included:• Interviewing the Company’s responsible personnel to obtain an understanding of its policy for preparing the Report and reviewing theWe calculated the amount of reduction contribution by assuming a 7% per year leakage rate of new refrigerants
sold from FYE2016 to FYE2022, and multiplying leakage amount by the difference between the GWP of alternative refrigerants and the GWP of new refrigerants. The reduction contribution assumes annual leakage of 7%
from equipment sold in the preceding fiscal year, continuing at the same rate in the next fiscal year.

Company’s reporting criteria.
−○○• Performing analytical procedures on the Indicators.
• Examining, on a test basis, evidence supporting the generation, aggregation and reporting of the Indicators in conformity with the

The annual power consumption of Taiyo Nippon Sanso Corporation’s conventional air compressor was comparedwith that of the energy-saving type nitrogen gas supply system to calculate the annual electricity saving fromusing the energy-saving type system. The annual electricity saved was multiplied by the CO2 emission factor forelectricity and the cumulative number of units sold from FYE2013 to FYE2022 to calculate the GHG emission
reduction contribution.

○

The amount of electric power usage saved per year from using Shuttle Chef® when cooking was multiplied by
the CO2 emission factor for electricity and the total number of units sold over the three years from FYE2020 toFYE2022 to calculate the GHG emission reduction contribution.

○

The annual CO2 emissions, which include emissions during the manufacture of the hydrogen, emitted by fuel cellvehicles (FCVs) filled with hydrogen at hydrogen stations sold or operated by Taiyo Nippon Sanso Corporationand operated during FYE2022 was compared with the annual CO2 emissions of gasoline cars to calculate the
GHG emission reduction contribution.

○

○

○

Based on actual observed values at two electronic furnace manufacturers who had introduced oxygen burners,
the electricity-saving effect per volume of jet oxygen (kWh/Nm3) was calculated. The amount of the reduction
was calculated by multiplying the amount of oxygen transmitted to the customer by the electricity reduction pervolume of oxygen for the oxygen burner, but the CO2 emissions coefficient for electricity. The amount of CO2
emission generated in manufacturing the oxygen has been deducted.
We calculated the contribution to the reduction of overall CO2 emissions from using Ar-CO2 mixed gas as a welding gas, based on actual values when performing CO2 welding and Ar-CO2 mixed gas welding using welding
equipment. The calculation was based on the differences in welding speed and CO2 emissions to the atmosphere.
Specifically, we calculated the contribution as the difference in CO2 emissions released directly when conducting
CO2 welding and Ar-CO2 mixed gas welding with regard to the CO2 generated in both methods, adding the
reduction effect of lower electric power consumption due to increased welding speed with mixed-gas welding.
The impact of reduced electricity consumption was calculated by multiplying the amount of electricity consumption saved due to mixed gas welding by the CO2 emissions coefficient. The amount of CO2 emissions generated
in the manufacture of Ar is deducted from the contribution to reduced CO2 emissions.

NIPPON SANSO HOLDINGS CORPORATION128

INTEGRATED REPORT 2022

Company’s reporting criteria, and recalculating the Indicators.
• Visiting the Goi Plant of Chiba Sanso Center Co., Ltd. selected on the basis of a risk analysis.
• Evaluating the overall presentation of the Indicators.

○○

Conclusion
Based on the procedures performed, as described above, nothing has come to our attention that causes us to believe that the Indicatorsin the Report are not prepared, in all material respects, in accordance with the Company’s reporting criteria as described in the Report.

○○

Our Independence and Quality Control
We have complied with the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board forContribution to GHG emission reduction through industrial gases produced and supplied by the NSHD Group
We calculated the GHG emission reduction contribution as the difference between the amount of CO2 emissions
in the production of crude steel using 100% coke and the production of crude steel via pulverized coal combustion based on crude steel production by the eight steel companies to whom the NSHD Group supplied oxygen in
FYE2022.
This calculation method is described in “The Impact of Oxygen on Reducing CO2 Emissions in Blast Furnace
Ironmaking” (July 2011) by Dr. Michael F. Riley.
We deducted the amount of CO2 emitted during the production of oxygen and the pumping of gas into theblast furnace.

• Inquiring about the design of the systems and methods used to collect and process the Indicators.

Accountants, which includes independence and other requirements founded on fundamental principles of integrity, objectivity, profes−○(Japan)○(Japan andEurope)sional competence and due care, confidentiality and professional behavior. In accordance with International Standard on Quality Control
1, we maintain a comprehensive system of quality control including documented policies and procedures regarding compliance withethical requirements, professional standards and applicable legal and regulatory requirements.

/s/ Kazuhiko Saito−−○

Kazuhiko Saito, Partner, Representative Director
KPMG AZSA Sustainability Co., Ltd.
Tokyo, Japan
September 16, 2022

−

−

○

Notes to the Reader of Independent Assurance Report:
This is a copy of the Independent Assurance Report and the original copies are kept separately by the Company and KPMG AZSA Sustainability Co., Ltd.

NIPPON SANSO HOLDINGS CORPORATION129

INTEGRATED REPORT 2022