NOK CORPORATIONCSR REPORT 2021

Artist: Momotaro Title: Kono Hoshi wo Mamoritai (I Want to Protect This Planet)Company Profile
Company NameNOK CORPORATION

EstablishedFoundedCapital23,335 million yen (as of March 31, 2020)

Employees

37,999 (Consolidated, as of March 31, 2020) /3,676 (Non-consolidated, as of March 31, 2020)

Net sales

596,400 million yen (Consolidated, FY 2020) /201,100 million yen (Non-consolidated, FY 2020)

Security Code

7240

Business Lines

Manufacture, purchase, import, and sale of seal products,
industrial functional parts, hydraulic equipment, plantmachinery, nuclear power equipment, synthetic chemical
products, electronic products, and various other products; andthe provision of associated services such as the installation ofmachinery and devices

Head OfficeSocial Contribution through Products

3

December 2, 1939

Message from the President

5

July 9, 1941NOK Group’s History

9

NOK Group’s Products

11

NOK Group's Global Operations

13

2020 Financial Highlights

152020 Business Highlights

19

Our Approach to CSR, Information
Disclosure, and Our Promotion System

21

NOK Group Activities and SDGs

23

NOK Group Business Overview and SDGs

25

UN Global Compact

26

SPECIAL TOPIC: Interview

27

1-12-15 Shiba Daimon, Minato-ku, Tokyo 105-8585, Japan

Contact
About the CSR report in general

We work insidewhat keeps theworld moving

Table of Contents

Corporate Communication Dept., Corporate Administration Office,
NOK CORPORATION
1-12-15 Shiba Daimon, Minato-ku, Tokyo 105-8585, Japan
TEL: +81-3-5405-6372; FAX: +81-3-5405-6379

About the Environment part of the report

Environmental Control Dept., Environmental Control Office,
NOK CORPORATION
4-3-1 Tsujido-Shinmachi, Fujisawa City, Kanagawa 251-0042, Japan
TEL: +81-466-35-4612; FAX: +81-466-35-4631

Editorial Policy
This report has been edited in reference to ISO 26000:2010-Guidance on Social
Responsibility.
●Period Covered

Social Report
Human Rights

29

Labor Practices

30

Fair Operating Practices

37

Quality Assurance

40

Participation in Communities andCommunity Development

45

Governance Report
Corporate Governance47

Most of the activities described in this report were carried out in FY 2020

Environmental Report(April 1, 2020 to March 31, 2021), but some took place in FY 2021.

Environment

54

Third-Party Opinion on CSR Report 2021

71

●Organizations Covered
All divisions of NOK CORPORATION and other NOK group companies in Japanand abroad.
●Date of Issue of Japanese Version: September 2021
●Date of Issue of English Version: November 2021

We support artists with disabilities.
NOK sponsors Paralym Art, organized by Shougaisha Jiritsu
Shien Kikou Association.
Paralym Art is a program that aims to help“disabled artists
leverage their own talent to strive for economic independence.”Starting in 2020, NOK presents a work of Paralym Art
on the cover page of its CSR report. Continuing from last year,
we once again interviewed Momotaro, who painted“KonoHoshi wo Mamoritai”(I Want to Protect This Planet) for thisissue about the thoughts that the artist put into this piece.
Unprecedented natural disasters are increasing year on
year, and many living creatures are continuing to lose theirlives. I feel that spaces where living beings can live safely
are gradually decreasing. I hope this is an opportunity forpeople to escape from being excessively focused on material values that we are accustomed to and once again recognize the importance of being able to have reverence for the
power of invisible forces.

1

NOK CORPORATION CSR REPORT 2021

NOK CORPORATION CSR REPORT 2021

2Social Contribution through Products
Humanity is currently facing a wide range of issues.
Some are environmental, such as global warming, worsening water-related issues, an increase in natural disasters and the loss of
biodiversity.
Others are social, including poverty, unequal educational opportunities, pandemics, various forms of discrimination and conflicts.
There are also economic issues such as increasing economic disparities, economic crises and a lack of funding for social welfare.
The SDGs＊ were adopted across the world in order to address these problems and challenges.

Potential Contributions to the SDGs through NOK Group’s Products and Technologies

What can we do to help achieve these goals?
The NOK Group is a comprehensive parts manufacturer that supports the provision of goods and services used in our communities
and our lives.
Some examples include the ever-evolving automobile, as well as the now-indispensable smartphone.
What can we do through our products, technologies, and business activities? There must be a lot of answers to that.

Aircrafts

We, the NOK Group,

are the people working
inside what keeps
the world moving.

DronesArtiﬁcialsatellites

Marine vessels

Building inspection systems

Oﬃce automation equipment

CamerasRockets

Astronomical
telescopes

Sharing services

Fishing tackles

Industrial robots

Pet supplies

Water puriﬁers

BicyclesProduction facilities
Surveillance / security cameras
Y
TOR
FAC

Next-generation vehicles
Motorcycles

Housing equipment

Platform screen doors

Bullet trains
Construction machinery

Trucks
Personal computers
Smartphones and tablets

Power plants

HOS

Amusement equipment

P I TA

Agriculturalchemicals

L

Agricultural
machinery

Cosmetics
ATMs

Automobiles

Traﬃc signs & safety devices

Medical and healthcare devices

3

NOK CORPORATION CSR REPORT 2021

Smartwatches

Multilingual guidance systems＊ “SDGs” stands for Sustainable Development Goals. The SDGs, adopted by the United Nations (UN) summit in 2015, are a set of international goals for the
UN member states from 2016 to 2030.They consist of 17 goals and 169 targets under the overarching principle, “Leave no one behind” on earth, andactive efforts have also been made in Japan to achieve these goals.

NOK CORPORATION CSR REPORT 2021

4

Message from the President

While honoring our 80-year history,
we will implement necessary

ly technologies.

pany from the Board of Directors showing that we are striving to

However, since early 2020, many countries have been making car-bring about diversity by having a composition that includes diverse

bon-neutral declarations, and initiatives towards climate change

members in terms of gender and other factors. Since some of thehave shifted up a gear. In light of these social conditions, whendivisions within the NOK Group are in close contact with over-reflecting on our initiatives, it is regrettable that, for example, whenseas businesses, we expect that changing the mindset of the top

expanding production facilities, financial factors were the priority

management will add new perspectives and values to the work-

criterion for investment decisions, and decisions based on envi-

place and operations.

ronmental impact were limited. This means that our connection

reforms, and aim to build a more

between environmental activities and business is weak, and thelevel of our commitment isn't high enough. Also, we have set a 30%

flexible corporate structure.

reduction in CO2 emissions by FY 2030 compared to FY 2018 as acompany target. However, this is lower than the 46% reduction by
FY 2030 (compared to FY 2013) set by the Japanese Government,
and I believe it is necessary to review the company target.
In May this year, we created an ESG committee comprised mostlyof management as a task force directly controlled by the president.
The ESG Committee was established to promote environmental
and other responsible ESG initiatives. Based on this structure and inlight of recommendations from the Task Force on Climate-related

President of NOK CORPORATION

Financial Disclosures (TCFD), we are rapidly proceeding to evalu-

Masao Tsuru

ate risks and profit opportunities associated with climate change
and conduct scenario analysis as well as conducting business impact evaluations, along with examining new responses to carbon
neutrality.
Carbon neutrality is a very ambitious target, and in order to seriously tackle it, we need to change the mindset of the entire groupand its employees. To that end, we as management need to change
first, and lead the employees to a sense of value that, in addition to
improving quality and productivity, environmental initiatives should

Appreciation for Achieving 80 Years in
Business

Building a Flexible Corporate Structure
to Respond to Changes

On July 9, 2021, the NOK group celebrated the 80th anniversary

To respond to our customers’strict requirements, the NOK Groupof its founding. I am very grateful that we were able to celebrate

has constantly pursued advanced technology and has earnestly

the milestone of 80 years in business thanks to the support from

responded to customer demands that change and diversify with

our employees and our many stakeholders, including shareholders,

the times. As a result, we have been able to gain support from

customers, suppliers, and the local community who have supported

customers across a wide range of industries globally and establish

us since our founding in 1941 in Kobe. I feel a renewed determina-

the current business foundation. However, the NOK Group’s busi-tion to work even harder, having been appointed president of theness environment is also changing at an unprecedented pace due

NOK Group with its great history. Since joining NOK in 2005, I haveto the increasing severity of the social and environmental issues wemainly focused on accounting and finance and corporate planning,

face, such as global pandemics and climate change.

both in Japan and overseas. I also worked at Freudenberg AG in

The NOK Group set forth “Flexible response to changes andGermany, NOK’s partner company, where I learned about manage-

Re-challenge to be a Sustainable Company” in its medium-term

ment that values stakeholders and contributes to society and the

management plan for the fiscal year ending March 2023. While re-communities. Based on this experience, I believe that even though

specting our 80-year history, we are aiming to create a more flexi-

the countries are different, what we should do as a company andble corporate structure by preserving what needs to be preserved

the importance of growing together with our stakeholders will notand changing what needs to be changed. In order to carry out thischange.

kind of change, it is important for the upper management to take

The first item outlined in NOK's management principles is“Manage-

the initiative in communication both inside and outside the compa-

ment has to run the Company based on feelings of love and trust

ny. I would like to keep my antenna up, collect information bothin its employees.”The NOK Group started as a dedicated manufac-

inside and outside the company, and proactively communicate thisturer and was the first company in Japan to manufacture oil seals.

message.

However, while being subjected to the rough waves of the changing times, the NOK Group’s 80-year history is one of various challenges, including the diversification of businesses, products, and operating regions, all done with the conviction of never allowing thecompany to go bankrupt. In addition to continued implementationof the management spirit that respects human dignity and protects
shareholders, I want to achieve further sustainable growth while
responding to ESG issues that are strongly called for these days.

Accelerating Environmental Management
One area where reform is necessary as an organization is environmental initiatives. The NOK Group outlined the NOK Twin Green
Plan 2030 in 2018 and has implemented environmental initiatives
since then. “Twin” refers to conducting initiatives through bothGreen Factory which is the reduction of CO2 emissions in the manproducts that contribute to next-generation environmentally friend-NOK CORPORATION CSR REPORT 2021

Diversity and Inclusion
As I stated, the philosophy of the NOK Group is a“management
spirit that respects human dignity.”We have worked towards building a pleasant working environment as well as striving for the healthand safety of employees. However, with the novel coronavirus pandemic, I feel like there has also been a change in attitudes towards
working. Also, as there are differences among what people demand
from the company depending on their generation, the company
must embrace employees’various needs and create an environment that facilitates individual’s job satisfaction and self-actualization. It is vital to implement this swiftly at our plants, which are thesource of the NOK Group’s profitability and the main constituent
of manufacturing.
At the company I worked at in Europe, there was a very diverse
workforce, people of various genders and nationalities held important positions, and everyone worked in English. In comparison, thecurrent NOK Group is a typical Japanese company with a homogenous structure geared towards Japanese people. However, thisdoes not mean we should change drastically to promote diversity,
as we would lose what makes the NOK Group special. Diversity

I consider strengthening the corporate governance structure one of
the critical issues for management, and I want to continue to workon this issue. Currently, we are adopting the format of a company
with an audit and supervisory board. In our organization, while directors who serve concurrently as executive directors work together cooperatively, on the other hand, inside and outside directors
mutually oversee one another, and auditors, including outside auditors, are in charge of auditing management.
Also, to improve board effectiveness, we have separated it from theexecutive committee. From the start of FY 2021, I have been conducting the management reports at board meetings every quarter.
I feel tense when doing so because this is like showing my grades
to the outside directors. The outside directors give me points fordiscussion and their opinions based on their respective expertiseand management oversight perspective. This is also a good opportunity for me to switch between management and oversight. Until
now, we have allocated time for discussions and approvals related
to individual cases. Therefore in the future, I want to allocate moretime for discussions concerning the direction of medium- to longterm strategy and progress management while at the same timedelegating authority to the operating officers.

Message to Our Stakeholders
The slogan of our 80th anniversary is “DREAM JOURNEY.” This
comes from“the Management has to run the Company while pursuing dreams with management plan,”which is part of our management principles. A plan is a dream of how we want to be in
the future, and our group has continued to implement corporate
planning that makes these dreams reality. This has been the foundation for the support from our stakeholders that the NOK Grouphas received over the years.
In order to live up to our 80-year history, I want to make the NOKGroup into a company that all stakeholders can be proud of. Approaching our 100th anniversary in 2041, my dream and mission is
to create a business model that can contribute to our major stakeholders, including shareholders, customers, suppliers, local communities, employees, and the earth. I want to make our next dream a
reality together with all the companies of the NOK Group and our
stakeholders.

becomes the source of an organization’s competitiveness. It shows
us new values and aspects to the direction of the business, so I

ufacturing process, and Green Product which is the development of

5

be directly linked to improving corporate value.

Improving the effectiveness of the Boardof Directors

want to promote diversity at the NOK Group. When doing so, I
want to take care so that this does not become token diversity. No
matter how diverse our employees are, if everyone’s mindset is thesame, we cannot become a truly diverse organization. Employees
have to respect the individuality of others and recognize that wewill create corporate value as a collection of diverse individuals.
In other words, I believe changing people’s mindsets is essential
when it comes to diversity, the same as for environmental issues.
That is why, for example, I want to send a message within the comNOK CORPORATION CSR REPORT 2021

6

Message from the President
From here on, I would like to introduce
our specific ESG initiatives in a Q&A format.

Q

What kind of procedures will you take toaccelerate activities related to environmental management?

A

With the NOK Twin Green Plan 2030, we won't be able to reach
the Japanese government's CO2 emission reduction target (46% reduction compared to FY 2013), so at some point in the future, wewill need to revise it. Also, we need to conduct a business impact
assessment from the risk and opportunity assessment and scenario
analysis based on the Recommendations of the TCFD, and incorporate it into a management plan.
I want to finalize the plan during FY 2022 and adopt this in the
new medium-term management plan that will start from FY 2023.
Thereby environmental management will be accelerated as environmental initiatives will be at the core of management.

Q

How was your business response andworking style during the novel coronavirus pandemic?

A

In the novel coronavirus pandemic, there were drastic changes
in working style and all employees who were able to work fromhome. Also, we used the period where our customers curtailed
their production through the proactive implementation of improvement activities, training, and study sessions. We focused on catching up with production once demand returned, and I think we wereable to achieve a working style that responded well to the changes. From this fiscal year, we established a work-from-home system.
Therefore I hope that employees will enjoy a fulfilled work andprivate life while choosing their working style.
On the other hand, we interacted with our customers online, andI feel like we were able to do so because of the trust we built up
over the years. In the future, depending on the situation, we will
return to face-to-face interactions with our customers and use bothonline and in-person interactions accordingly.

Q&A

Q

Q

A

A

Recently there has been growing concern about human rights issues in supply
chains. How is the NOK Group responding to this issue?
The NOK Group conducts procurement in 16 countries and regions,and recognizes that it has a corporate responsibility to address various human rights issues in its supply chains. The NOK Charter ofCorporate Behavior, NOK Group Procurement Policy, and the CSR
Procurement Guidelines clearly state in detail our policy regarding
human rights, the environment, conflict minerals, as well as compliance with laws. We work to share and spread these policies
with our suppliers, and we ask that they respect them when doing
business with us. We will continue to promote CSR activities for our
suppliers’supply chains so that they can fulfill their responsibilities
together with the NOK Group.

Q

Would you mind telling us about thecircumstances that led the NOK Groupto become a signatory to the UN Global
Compact?

A

NOK is developing businesses not only in Japan but globally in areas such as China and Southeast Asia. In April of this year, NOK
signed the United Nations Global Compact as a means of communicating our efforts to become a sustainable company as well as
to address environmental issues both internally and externally. We
support the 10 principles of the UNGC, including the protectionof human rights, the elimination of unfair labor practices, environmental measures, and the prevention of corruption, and contribute to the creation of a sustainable society. Going forward, we will
make declarations related to the 10 principles and work together
with overseas bases to develop activities in accordance with global
standards. We will make regular disclosures regarding our specificinitiatives to our stakeholders.

Q
A

How are you working towards the SDGs?
There are a wide array of NOK Group products that contributeto the environment, such as those that improve fuel economy andproducts that prevent the leakage of chemical substances. Throughthese products, we are contributing to the SDGs.
Automotive manufacturers are working towards the electrificationof their vehicles and are important customers for the NOK Group.
We also have many customers who are in the renewable energy
industry. So I believe that by developing new products with ourcustomers, we are contributing to the solution of various societal
issues. We will work on the SDGs as a major theme for future businesses of the NOK Group. We intend to actively propose productsthat contribute to decarbonization and the prevention of soil andsea pollution.

7

NOK CORPORATION CSR REPORT 2021

Please tell us about the direction of technical development in light of risks andopportunities.
Regarding CASE, which shows the direction of automobile innovation, I think we will be significantly affected by E, electrification. The
speed of electrification has increased further due to the growing
momentum of decarbonization. This will likely lead to the popularization of electric vehicles occurring faster than we expected.
For the seal business, we must have a product lineup that can cover
the market's demands no matter which type of vehicle becomeswidespread. Whether that be electric vehicles, plug-in hybrids, or
fuel-cell vehicles. Currently, we are rapidly innovating through collaborations with our customers aimed at developing our productline up in all directions, while incorporating not only technologythat is an extension of our existing products, but also technologies
from other areas. The central theme of this development is meeting
our customers' needs and solving issues that will arise with electrification. Our customers already have several growing demands, so
firstly we will conduct development in these areas. Freudenberg is
a company located in Europe—an advanced region in the adoptionof EVs—and they have made considerable progress in technology
development and product development. Therefore, we are collaborating with Freudenberg to make proposals to customers.

Q

Would you please tell us your capital
policy, target indicators, and dividend
payout ratio?

A

The NOK Group has established a financial base that can withstandsevere market environments and economic fluctuations such as theLehman Shock and the novel coronavirus pandemic. In the future,
we will continue to maintain our solid financial position. For financial KPIs, we first set a guideline for an equity ratio of over 50% ormore.
As for capital efficiency, we have set a medium- to long-term targetof a consolidated ROA of 5%. Starting this fiscal year, the 5% ROA
steering committee comprised mostly of board members has been
established, and discussions have begun about how to achieve thetarget.
The mission of the steering committee is to make the shift to management that is conscious of capital efficiency in addition to otherconventional indicators such as operating margin. After clarifying
business and non-business assets, I want to reallocate non-businessassets to growth investments. We will replace and optimize ourasset portfolio by increasing assets in highly profitable areas andminimizing assets in low profitability areas.
Regarding the dividends to our shareholders, as previously stated,
we intend to pay stable dividends at predetermined level regardless of changes in revenue.

Three-year Plan

(FY2020 to FY2022)
Slogan“Flexible response to changes
and Re-challenge to be a
Sustainable Company”
Chairman’s Initiatives

１. Moving away from dependence
on specific customers-Expansion of sales across businesses
and creation of new businesses for awell-balanced mix of customers

２. Repositioning quality management to origin
３. Operating practical and effective
BCM
４. Advancing digitalization that willlead to higher competitivenessand profitability
５. Implementing management spiritthat respects human dignity-Fostering vibrant people and supporting flexible and diverse work styles

NOK CORPORATION CSR REPORT 2021

8

NOK Group’s History
On July 9, 2021, we celebrated the 80th anniversary of our founding.“To become a company that all of our stakeholders can takepride in.”Since we started as a small factory in Kobe City in 1941,
we have cherished our corporate culture of being ambitious, kept
taking on challenges based on our proven technology and createda variety of products. Over the years, we have grown into a highly

unique enterprise. The corporate culture of that original factoryhas been passed down through the generations. Looking ahead toour 100th anniversary in 2041, we will pass on our dreams to the
future by addressing the social issues of the times, providing usefulproducts backed by technology, and contributing to the realizationof a sustainable society.

From a small-town factory to a global enterprise1941 to 1950

1961〜1970

1971〜1980

1981〜1999

From 2000

1941

Japan Bearing Production Co.,
Ltd. is founded

1961

Listed on the first section of theTokyo Stock Exchange

1971

Kitaibaraki Plant is established

1985

2000

1942

The company is renamed Nippon
Yushi Industry Co., Ltd., and starts
manufacturing and selling oil seals.
A two-company production system with Tokyo Yushi Industry Co.,
Ltd. (the predecessor is Edogawa
Seiki Co., Ltd., established in 1939)
is implemented

1964

Nippon Sealol Co., Ltd. is founded as a subsidiary (The company is currently known as Eagle
Industry Co., Ltd. an affiliatedcompany)

1973

SINGAPORE OILSEAL CO., PTE.
LTD. is founded as the first overseas production baseCompany name changed from
Nippon Oil Seal Industry Co.,
Ltd. to NOK CORPORATION

Sigma Freudenberg NOK Pvt. Ltd isfounded in India (currently known
as Freudenberg NOK Pvt., Ltd.)

1987

Nihonmatsu Plant is established

2002

1988

Thai NOK Co., Ltd. is founded

1989

Freudenberg-NOK General Partnership is founded in the USA

Seiwa Kasei Co., Ltd. is founded
to research, develop, and manufacture synthetic chemical products (currently known as UNIMATEC CO., LTD.).

1995

Wuxi NOK-Freudenberg Oil Seal
Co., Ltd. is founded in China

1996

PT. NOK Indonesia is founded1967

Shizuoka Plant is established

1968

NOK-USA, Inc. (currently known
as NOK Inc.) is founded in the
USA as the first overseas subsidiary
Fukushima Plant is established

1951〜1960
1951

1960

Tokyo Oil Seal Industry Co., Ltd.
merges with Nippon Yushi Industry Co., Ltd. The company nameis changed to Nippon Oil Seal
Industry Co., Ltd.
Capital participation agreement
is concluded with Carl Freudenberg KG in West Germany

1969

1970

1974

Tokai Plant is established

1976

NOK KLUEBER CO., LTD. is founded to manufacture and sell special lubricants.

1978

Equity stake taken in Pyung Hwa
Oil Seal Industry Co., Ltd. in SouthKorea

SYNZTEC CO., LTD. is founded to develop and manufacture rollers.

8,000

7,000

6,000
Great East Japan
Earthquake

5,000

Global financial crisis

2008
The dot-com
bubble burst

NIPPON MEKTRON
establishedNOK CORPORATION CSR REPORT 2021

2007

Kumamoto Plant is established

1991

4,000

SYNZTEC established

2002
2001

3,000

UNIMATEC established

2,000

The bubble economy
collapsed

1,000

1976

1969

9

Shonan R&D Center is established

2007

1985

1941

Vietnam NOK Co., Ltd. is founded

2005

NIPPON MEKTRON, LTD. is founded as a company responsible forthe electronic components business

The company name was changed to NOK.
Former name: Nippon Oil Seal Industry Co., Ltd.

1941
Founded

2004

Net sales (Billions of yen)

NOK KLUEBER established

0
1970

1980

1990

2000

2010

2020
NOK CORPORATION CSR REPORT 2021

10

NOK Group’s Products
Seal BusinessNet sales:

293 billion yen

Operating income:23.2 billion yen

Major operating companies: NOK CORPORATION, UNIMATEC CO., LTD.

Electronic Product BusinessOil seals

O-rings

Industrial rubber products

Vibration and sound isolators

Iron Rubber products

NOXTITE

Oil seals are functional parts that sealoil. Composed of synthetic rubber, metalrings, and springs, they prevent oil fromleaking through gaps in machine shafts
and prevent dust and dirt from enteringfrom the outside.

O-rings are O-shaped rubber ring gaskets. They are moderately compressedby fitting into grooves of machinery, andprevent leakage of various fluids, including
oil, water, air, and gas.

These are functional parts for industrial
use made of synthetic rubber, such as
dust covers, boots, and diaphragms.
We provide a wide range of products
including rubber products as well as
rubber-lined metal and resin products.

A wide variety of vibration and soundisolators are available, including torsional
vibration dampers to reduce crankshaft
vibration in car engines, and a center
bearing support to absorb and isolate vibration by supporting the propeller shaftsof rear-wheel and four-wheel drive carssuch as passenger cars and trucks.

Iron Rubber (polyurethane elastomer), anintermediate product between rubber andplastic, demonstrates excellent performance in resisting abrasion and absorbing
shock/vibration. We provide a wide rangeof products, including gaskets for machinery pistons and traffic safety-related products that require superior durability.

The NOXTITE acrylic elastomer has anumber of well-balanced functions, including
oil resistance, heat resistance, high strength,
and resistance to permanent compression
set. In addition to use as a material for oil seals
and O-rings, it is used in devices that require
heat resistance and oil resistance such as
the surrounding surface of car engines.

Main usage

Main usage

Main usage

Main usage

Main usage

Automobiles, construction machinery, agricultural machinery, railroad vehicles, steel mills,
industrial robots, aircraft, marine vessels, officemachinery, home electronic appliances, etc.

Automobiles, construction machinery, agricultural machinery, piping joints, water-proof
cell phones, etc.

Automobile suspension and steering, housing
equipment, etc.

Crankshafts of car engines, propeller shaftsof rear-wheel and four-wheel drive cars, etc.

Construction machinery, automobiles, semiconductor manufacturing equipment, food
manufacturing machinery, traffic safety-related
products, etc.

Single-sided FPCs

Double-sided FPCs

Multi-layer FPCs

Component assembly FPCs

Precision rubber andresin products

CHEMINOX

Single-sided FPCs (flexible printed circuits) have circuits on one side only. They
are structured to best exhibit the thin andflexible characteristics of FPCs. They are
durable against repetitive bending andcan be used for space-saving wiring in
moving areas. They are also suitable formulti-dimensional wiring in narrow gaps.

These have circuits on both sides. Compared to the single-sided version, they
allow for more complex wiring, andcontribute to downsizing and weight
reduction through the mounting of parts
on both sides. They can also be used for avariety of designs because they are freely
bendable.

These FPCs have realized higher functionality, smaller size, and lighter weight
through multi-layered circuits. Integrated
boards and cables contribute to downsizing, as they require no connectors.

FPCs are very thin films and therefore
require a special mounting process.
NIPPON MEKTRON not only manufactures FPCs alone, but also responds torequests for FPC module units by mounting semiconductors, microchip components, and connectors.

These products are sealing parts to preventthe entry of water and dust by fitting inside of
HDDs and smartphones or assembling on
the exterior. Taking advantage of the technologies cultivated in the development andmanufacturing of these products, we also
have FPCs with water proof and impact ressitance (protection) characteristics which
we add by molding rubber or resin on FPCs.

This is a fluorine chemistry-based compound with rubber additive, available invarious forms such as powder, liquid, andgas. It is used as a material and a modifier
for rubbers and resins, and provides new
possibilities for materials.

Main usage

Main usage

Main usage

Main usage

Major operating company: NIPPON MEKTRON, LTD.

HDDs, digital cameras, media players, game
consoles, automobiles, medical and healthcare devices, etc.

Digital cameras, smartphones, automobiles,
medical and health care devices, etc.

Digital cameras, video cameras, smartphones, automobiles, medical and healthcare devices, etc.

HDDs, Digital cameras, smartphones, automobiles, medical and health care devices, etc.

Roll Business

Developing and charging roller

Fixation belts andpressure rollers

Products for financial terminals

Net sales:

281.8 billion yen

Operating income:(8.4) billion yen

The developing roller feeds a specified
quantity of toner to the photoreceptor,
and the charging roller applies a specified
quantity of charges to the photoreceptor.
The electric conductivity of these products
is controlled with high precision.
Main usage
Net sales:

14.2 billion yen

Operating income:

Major operating company: SYNZTEC CO., LTD.

11 NOK CORPORATION CSR REPORT 2021

(1.4) billion yen

Surrounding area of the office machineryphotoreceptors

Fixation belts are made by combining metal and rubber, with high heat conductivity
and pyrogenicity. Pressure rollers are used
to provide evenly distributed pressure
when fixing toner. Stable fixing outcomes
last a long time.
Main usage
Fixing parts of office machinery

Main usage
Special rubber materials

Main usage

Main usage

HDDs, smartphones, etc.

Other Business

Net Sales:

Surface treatment agents, synthetic chemical
products

7.4 billion yen

Operating income:1.1 billion yen

Major operating company: NOK KLUEBER CO., LTD.

These products are used for financial
terminal devices such as ATMs and therefore require high reliability. Products include
bill-conveying belts that combine highperformance urethane rubber with threads
and textiles, and bill beater rubber withexcellent durability.
Main usage
ATMs, cash dispensers, etc.

Oil

Coating

GreaseOur high-performance oil excels in
lubricating performance, heat-resistance, and oxidation resistance, leading to longer machine operating life
and improved efficiency. NKL provides
products suitable for various fields,
including for large plants, precision
machines, food processing machinery, and semiconductor manufacturing equipment.

Our coating products offer beneficial
effects such as excellent lubrication
performance, resistance to wear,
non-adhesiveness, and insulation
performance, through their application on the surface of metal parts,
including in environments where
grease and oil cannot be used. They
are employed in various fields suchas automobiles, electric appliances,and office machinery.

Our grease features high-reliability
and long-operating life even in severe
environments such as extremes intemperature, high-speed, and highload. It is used in various fields suchas automobiles, industrial machinery,electric appliances, office machinery,
food machinery, and semiconductor
manufacturing equipment.

NOK CORPORATION CSR REPORT 2021

12

NOK Group’s Global Operations●NOK CORPORATION

Asia

Freudenberg NOK Pvt., Ltd. / India
Thai NOK Co., Ltd. / Thailand

NOK Asia Company Pte. Ltd. / Singapore

KOREA
CHINA

TAIWANINDIA
THAILANDVIETNAMMALAYSIAJAPANINDONESIA●SYNZTEC CO., LTD.

●NOK CORPORATION●SYNZTEC CO., LTD.

PT. NOK Indonesia / Indonesia

Head Office (Minato-ku, Tokyo)

Head Office (Minato-ku, Tokyo)

Wuxi NOK-Freudenberg Oil Seal Co., Ltd. / China(Fujisawa City, Kanagawa Prefecture)

Changchun NOK-Freudenberg Oil Seal Co., Ltd. / China

Fukushima Prefecture)

NOK-Freudenberg Hong Kong Ltd. / China

Fukushima Prefecture)

NOK Wuxi Vibracoustic China Co., Ltd. / China

Prefecture)

Pyung Hwa Oil Seal Industry Co., Ltd. / South Korea

Prefecture)

Vietnam NOK Co., Ltd. / Vietnam

Fujisawa Plant/Shonan R&D Center

NOK (Wuxi) Vibration Control China Co., Ltd. / China

Fukushima Plant (Fukushima City,

NOK-Frendenberg Group Sales (China) Co., Ltd. / China

Nihonmatsu Plant (Nihonmatsu City,

Taicang NOK-Freudenberg Sealing Products Co., Ltd. / China

Kitaibaraki Plant (Kitaibaraki City, Ibaraki

NOK（Wuxi）Water Treatment Technology Co., Ltd. / China

Tsukuba Plant (Tsukuba City, Ibaraki

Head Office (Minato-ku, Tokyo)

Shizuoka Plant (Makinohara City,

Prefecture)●NIPPON MEKTRON, LTD.

Mektec Manufacturing Corporation (Thailand) Ltd. / Thailand
Mektec Precision Component (Thailand) Ltd. / Thailand

NOK Precision Component Singapore Pte. Ltd. / Singapore
Mektec Manufacturing Corporation (Zhuhai) Ltd. / China

SINGAPOREJapan

Mektec Manufacturing Corporation (Suzhou) Ltd. / China
Mektec Corporation / Taiwan

Mektec Manufacturing Corporation (Vietnam) Ltd. / Vietnam

Synztec (Malaysia) Sdn. Bhd. / Malaysia

Yokosuka Plant(Yokosuka City, Kanagawa Prefecture)●NOK KLUEBER CO., LTD.

Head Office (Minato-ku, Tokyo)

Kitaibaraki Plant (Kitaibaraki City, Ibaraki
Prefecture)

UNITED STATES OF●UNIMATEC CO., LTD.
AMERICA

Shizuoka Prefecture)

Plant No. 1 (Kitaibaraki City, Ibaraki

Tokai Plant (Kikukawa City, Shizuoka
Prefecture)

Tottori Plant (Saihaku-gun, Tottori
Prefecture)

Kumamoto Plant (Aso City, Kumamoto
Prefecture)●NIPPON MEKTRON, LTD.

Head Office (Minato-ku, Tokyo)

Synztec Vietnam Co., Ltd. / Vietnam

FUKUSHIMA

Ushiku Plant (Ushiku City, Ibaraki

Synztec Precision Parts (Shenzhen) Co., Ltd. / China

Prefecture)

IBARAKI

Synztec Precision Parts (Shanghai) Co., Ltd. / China●UNIMATEC CO., LTD.

TOTTORI

Unimatec Singapore Pte. Ltd. / Singapore
KANAGAWANOK Group Head Oﬃce
TOKYO

SHIZUOKA

North America

EuropeKUMAMOTOGERMANYGroup Company

UNITED STATES OF
AMERICAJapan

Miyagi NOK Corporation (Kami-gun, Miyagi Prefecture)
NOKMETAL Co., Ltd. (Toda-gun, Miyagi Prefecture)

Tenei Seal Industry Corporation (Iwase-gun, Fukushima Prefecture)
CHINA
Miharu Industry Corporation (Tamura-gun,
Fukushima Prefecture)

Tohoku Seal Industry Corporation (Yama-gun, Fukushima Prefecture)
Nihonmatsu NOK Corporation (Nihonmatsu City, Fukushima●NOK CORPORATION

Freudenberg-NOK General Partnership / U.S.A.

●NOK CORPORATIONNOK Europa GmbH / Germany

Unimatec Chemicals Europe GmbH / Germany●NIPPON MEKTRON, LTD.

Ｍektec Manufacturing Corporation Europe DE GmbH /Germany

13 NOK CORPORATION CSR REPORT 2021

TAIWAN

Prefecture)

INDIA

Isohara Polyurethane Industry Corporation (Kitaibaraki City,
Ibaraki Prefecture)

THAILAND Nagano Prefecture)
Isshin Industries Corporation (Saku-gun,
VIETNAM Prefecture)
Kanasei Corporation (Fujisawa City, Kanagawa

MYK Corporation (Makinohara City, Shizuoka Prefecture)

KOREA

NOK
Fugaku Engineering Co., Ltd. (Kikugawa City, Shizuoka Pref.)JAPAN
Kikugawa Seal Industry Co., Ltd. (Kikugawa City, Shizuoka Prefecture)
TVC Co., Ltd. (Saihaku-gun, Tottori Prefecture)

NOK Elastomers Processing Co., Ltd. (Kama City, Fukuoka Pref.)Saga NOK Corporation (Ureshino City, Saga Prefecture)
Kusu NOK Corporation (Kusu-gun, Oita Prefecture)

Kumamoto NOK Corporation (Aso City, Kumamoto Prefecture)
Aso NOK Corporation (Aso City, Kumamoto Prefecture)

Nichinan NOK Corporation (Nichinan City, Miyazaki Prefecture)

MALAYSIASINGAPORE
INDONESIANOK CORPORATION CSR REPORT 2021

14

2020 Financial Highlights
Financial Highlights (Consolidated) over the Last 6 Years

Change in net sales / operating income/ operating income to net sales ratio(Millions of yen)

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Net sales(Millions of yen)

746,147

713,138

729,341

669,482

626,815596,369

Operating income(Millions of yen)

48,25839,77644,934

23,14012,028

14,467

(%)

6.5

5.6

6.2

3.5

1.9

2.4

(Millions of yen)

53,72745,70956,291

31,135

17,373

(%)

7.2

6.4

7.7

4.7

(Millions of yen)

30,05327,32835,281

(%)

4.0

3.8

4.8

Operating income to
net sales ratio
Ordinary income
Ordinary income to
net sales ratio
Profit (loss) attributable toowners of parent
Net income to net sales ratio

16

700,000

596,36914

600,000

12

500,000

10

18,339400,000

8

2.8

3.1

300,0006

 et salesN(left axis)

3,419△ 2,218△1,361200,0004

 perating
O
income(left axis)

0.5

-

-

100,000

Profitability0

ROE (Return On Equity)

(%)

7.4

6.7

8.0

0.8

△ 0.5

△0.3

ROA (Return On Asset)

(%)

4.1

3.8

4.6

0.4

△ 0.3

△0.2

EPS (Earnings Per Share)

(yen)

174.0

158.4

204.2

19.8

△ 12.8△7.9

PER (Price Earnings Ratio)(times)

11.1

16.3

10.1

87.2

△ 93.0△190.7

2.4％
14,467
'04

'05

'06

'07

'08

'09

'10

'11

'12

'13

'13

'14

(References)＊

'15

'16

'17

'18

'19

'20

(Result)

2(FY) 0 perating
O
income tonet salesration(right axis)＊ Since FY 2014, NOK has unified the accounting period of the overseas business and changed its depreciation method. Therefore, the values are for reference purposes only.

Analysis of Operating Results
Fiscal 2020 Operating results

Financial position
Total assets(Millions of yen)

696,989

751,797

793,314785,133

728,695

803,000

Owner’s equity(Millions of yen)

395,444418,666

459,655444,177

407,092

457,352

(%)

56.7

55.7

57.9

56.6

55.9

57.0

Capital expenditure(Millions of yen)

61,39965,13558,38870,11847,66925,728Depreciation(Millions of yen)

40,15640,391

43,97046,82943,312

40,664

Net R&D expenditure(Millions of yen)

7,632

8,274

9,443

10,45911,29810,053

Dividend

(yen)

50

50

50

50

37.5

25

Payout ratio

(%)

28.7

31.6

24.5

252.9

-

-

Operating activities(Millions of yen)

88,50368,03869,52663,854

71,37045,824

Investing activities(Millions of yen)

△ 65,682△ 62,035△ 58,681△ 79,259△ 50,425△18,719

Financing activities(Millions of yen)

△ 24,008△ 7,327△ 13,010

6,633△ 17,497

5,884

Cash and cash equivalents,
end of period(Millions of yen)

94,032

90,62989,42080,761

82,366

120,385

Equity ratio（%）

800,000

Shareholder return

Cash flows

15 NOK CORPORATION CSR REPORT 2021

With regard to the operating environment surrounding theNOK Group during FY 2020, the Japanese economy faced
domestic and overseas difficulties as economic activities andpersonal consumption remained sluggish due to the impactof the novel coronavirus pandemic. Although a wide rangeof measures taken by the government were effective to acertain extent in controlling the pandemic, the spread of thevirus was not stopped. As a result, the economic outlook
remained uncertain with the risk of economic downturn
throughout the year.
In the automobile industry, demand in Japan recovered in the second half of the current fiscal year following a temporary decline caused by the spread of
the novel coronavirus. While demand also decreased
significantly in overseas markets, demand in North
America picked up sharply during the second half ofthe fiscal year. Meanwhile, in China where economic
activities had been resumed from an early stage, demand remained brisk throughout the fiscal year.
In the electronic equipment industry, manufacturing and ship-

ment of products were delayed due to the impact of thenovel coronavirus pandemic, and demand for smartphones
and HDDs declined. On the other hand, demand for personal computers and tablets increased, reflecting the promotion of telework and online education.
In the office machinery industry, demand for both multifunction peripherals and printers declined due to the impact ofthe pandemic.
Under these circumstances, the NOK Group posted thefollowing results for fiscal 2020: Net sales totaled 596,369
million yen (down 4.9% year on year); operating income
was 14,467 million yen (up 20.3% year on year); and ordinary income amounted to 18,339 million yen (up 5.6%
year on year), resulting in 1,361 million yen in loss attributable to owners of parent (compared to a loss attributableto owners of parent of 2,218 million yen in the previous
fiscal year) due to the business restructuring expenses,
etc., arising out of voluntary retirement offered at NIPPONMEKTRON, LTD. and other factors.

NOK CORPORATION CSR REPORT 2021

16

Fiscal 2020 overview by business segment
Roll Business

Other
Business

14,184

2.4%

7,390

1.2%
Net sales

596,369
million yen■ Seal Business

Seal
Business
293,02349.1%

281,771

47.2%■Operating income (right axis)(Millions of yen)

(Millions of yen)

400,000

80,000293,023300,000
200,000

23,183100,000
0

2016

2017

2018

2019

2020 (FY)20,000

Sales declined due to a drop in demand for multifunction
peripherals and repair parts. As a result, net sales totaled
14,184 million yen (down 20.3% year on year). Operating
loss came to 1,422 million yen (compared to an operating
loss of 751 million yen in the previous fiscal year) due tothe significant impact of the drop in sales, despite efforts to
reduce personnel and other expenses.

■Net sales (left axis)■Net sales (left axis)(Millions of yen)

80,000281,771

300,000

20,000200,000

40,00010,000100,000

20,000-8,371
2016

2017

2018

2019

17 NOK CORPORATION CSR REPORT 2021

2020 (FY)0-20,000(Millions of yen)

30,00060,0000■Operating income (right axis)(Millions of yen)

3,000

14,184

2,000
1,000

-1,42200-1,000

2016

2017

2018

2019

R&D
expenditureby business

48％

159

Capitalexpenditureby business

44％

10,053（Millions of yen）

37％

223,147

2％ 1％

11％

（Millions of yen）

Electronicequipment

482

171

4％ 2％

Other
Business

25,72853％（Millions of yen）

83％

Automobiles

282,954

Electronic
Product
Business

1,100

Seal
Business

8,324Electronic
Product
Business

11,433Seal
Business

13,652

Key Risks and Opportunities by Business

0

Sales decreased due to a decline in demand during the firsthalf of the fiscal year, although demand for high-function
smartphone and automotive applications recovered in thesecond half of the fiscal year. As a result, net sales totaled
281,771 million yen (down 0.5% year on year). Operating
loss came to 8,371 million yen (compared to an operating
loss of 12,600 million yen in the previous fiscal year) due tothe effects of a reduction in personnel and other expenses
as well as a decrease in depreciation and amortization costs,
despite the drop in sales.

(Millions of yen)

596,369

Roll Business

40,000■ Roll Business

400,000

Net sales byapplication

Other
Business457

15％

60,000■ Electronic Product Business■Operating income (right axis)

Roll Business

90,267

Sales for automotive applications decreased because demand declined in the first half of the fiscal year, althoughdemand picked up from the second half of the fiscal year.
On the other hand, sales to manufacturers of general industrial machinery increased due to an upswing in demand frommanufacturers of construction machinery in China. As a result, net sales stood at 293,023 million yen (down 7.6% year
on year). Operating income was 23,183 million yen (down
4.6% year on year) due to a decrease in sales despite efforts
to reduce personnel and other expenses.
■Net sales (left axis)

Electronic
Product
Business

General industrial
machinery■ Seal Business■ Electronic Product BusinessIn the seal business, overall demand is expected to remainrobust, although demand from automotive manufacturers inJapan will likely decline as a backlash to the increase in demand in the second half of FY 2020. Overseas, demand isanticipated to remain strong on the back of brisk demand
for new vehicles, despite concerns over parts supply in North
America, especially of semiconductor components. Meanwhile, in China, demand is projected to remain vigorous.
In the medium to long term, however, we anticipate significant changes in the business environment associated withthe electrification of automobiles. For manufacturers of general industrial machinery, domestic demand for construction
machinery is expected to remain virtually unchanged. Overseas, demand for construction machinery is forecast to continue to grow in China.
Amid such circumstances, since competition from Japaneseand overseas competitors will likely intensify, we will makeefforts across sales, technology and production divisions to
expand sales of existing and new products, improve the efficiency and optimization of our production systems while
continuing to further enhance quality.

In the electronic product business, there have been issues
such as the response to fluctuations in demand for high-end
smartphones and a drop in demand for HDDs. Although
there are concerns over a transformation of the industry
structure by electrification and the current semiconductor
shortage in automotive applications, demand is expected topick up. In order to address these concerns, we will expand
sales of products for new applications, as well as continue
to improve the efficiency of our production systems to makeour production capacity capable of meeting future demand.

■ Roll BusinessIn the roll business, in addition to the traditional slowdown
in the growth of the office equipment market, there are concerns that the workstyle transformation through remote work
will lead to a shift to a paperless office, and that demand forprinters and consumables will continue to decline. In orderto respond to these, we intend to seek increased profitability
by making efforts across sales, technology and production divisions to further expand sales by improving competitivenessin quality and cost, while promoting management efficiency
by thoroughly reducing costs.

2020 (FY)NOK CORPORATION CSR REPORT 2021

18

2020 Business Highlights
Completion of Our New Urban, Low-Energy Head Office
The reconstruction of the former headquarters building, which was

We Are Protecting Forests While We Workbuilt in 1966, was completed as scheduled last year for the purpose of

NOK received certification under the Minato Model Carbon Dioxide

improving earthquake resistance and the working environment.

Fixation Certification System. A system where Minato City certifies theWith a focus on the environment employees work in, under the corpo-

amount of CO2 fixation calculated based on the amount of agreement

rate concept of“Borderless,”we intend to eliminate all boundaries, in-timber*1 or Japanese legal timber*2 used to construct buildings. Build-cluding those of departments, generations, nationalities and gender, toings with a floor space of 5,000 m2 or more are required to receive thestimulate communication and to create a workplace where each per-certification, and our new head office is subject to this requirement.

son can bring their abilities fully into play. Also, we have taken a proac-

Certificates with stars listed on them are issued according to thetive stance in adopting eco-friendly air conditioning equipment andamount of Japanese timber used. If the base value is met, one star islighting systems, as well as appliances made of domestic timber, etc.,

issued. The number of stars increases if higher targets are achieved

to fix the amount of CO2 generated. In addition, the new building has a(maximum of three stars). NOK was recognized for using large quanti-

base isolation structure and is equipped with emergency power gener-

ties of domestic timber and was awarded two stars.

ators from the viewpoint of BCM.

*1 Timber produced from municipalities (agreement municipalities) that have signed
an agreement with Minato City to promote the use of domestic timber, including
timber from forest thinning*2 Japanese timber that has been proven legal under the “Guidelines to Prove

In order to facilitate communication, there are no pillars or corridors in the office area.

Glass eaves are used to block direct sunlightthe Legality and Sustainability of Timber and Forest Products” set forth by the

The wooden whiteboard mounted on the wall of the conference room“Kiesugi-kun”

Forestry Agency

uses cypress from Saitama Prefecture

Glass is used on three sides of the building to efficiently utilize natural lightA radiant air-conditioning system is installed which warms or

Main conference room on the second floor. The first andcools the ceilingsecond floor will be used as a space for stranded people

The“Minato Model Carbon Dioxide Fixation Certification System”certificate“Lacquer art”made of cedar wood from Shizuoka Prefecture, displayed in the reception roomin the event of a disaster.

Environmentally Friendly Technology

Environmentally Friendly Technology

The“RUSTECTOR”series, seals and greases that prevent the corrosion of aluminum

Low Friction Seal Series,“Le-μ’s*”

We developed seals and greases resistant to saltwater corrosion that

A high-performance seal brand that achieves low friction while main-

can be used for aluminum housings such as electric vehicle units. The

taining seal performance. An oval ring with CNT (carbon nanotube)

unique cross-sectional shape of the seal effectively prolongs the life of

was newly added to the lineup of oil seals, seal rings (TS-ring), SP-treat-units by slowing down the advance of corrosion while maintaining highed O-rings, and rod seals for rotation/osillation. Using four low friction

sealing performance. Corrosion can be contained further by using thetechnologies (shape design, material design, surface function design,

seal in combination with highly water-resistant grease. A reduction in

and grease), it reduces loss in driving force and contributes to low fuelcost and workload compared with existing anti-corrosion treatment isand power consumption.

possible.
＊ Le-μ’s is an abbreviation of Low emission μ seal
＊ The name RUSTECTOR was coined by combining “Rust” and “Protector.”

19 NOK CORPORATION CSR REPORT 2021

NOK CORPORATION CSR REPORT 2021

20

Our Approach to CSR, Information Disclosure, and Our Promotion System
Concept of CSR
As stated in the Charter of Corporate Behavior, the NOK Groupaspires to drive the realization of a sustainable society while operating its business in a way that makes our stakeholders proud
to pursue their dreams with us. All of our business activities arefounded upon the NOK Charter of Corporate Behavior (Management Principles, Management Policies, and Principles of Corporate
Behavior). We believe that fulfilling the environmental, social, andgovernance aspects of corporate social responsibility is an integral
part of continuous business activities. We also value communication with stakeholders as an effective way to broadly examine the

CSR Promotion Systembusiness climate and situation, as well as to identify business risks
and opportunities.
NOK discloses information regarding CSR initiatives based on ISO
26000:2010 Guidance on social responsibility, and we are working
to enhance the content of our report with the objective of issuing
an integrated report. We will proceed with scenario analysis basedon the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), and we are aiming to formulate a strategy that incorporates climate-related risks and opportunities into
management strategy.

A CSR Committee was organized in October 2016 to increase
the awareness of CSR throughout the company and to promote CSR activities more effectively.
In addition, in May of this year, we established an ESG committee comprised mostly of management as a task force directly
controlled by the president in order to promote responsible
CSR and ESG initiatives (the CSR Committee will continue asa subcommittee of the ESG Committee). Centered on the ESG
Committee, we are indicating our commitment both internallyand externally through promoting activities towards the realization of a sustainable society.

Board of Directors

Committee President
chairperson
GM of Corporate
Business Strategy

Reports andProposals

GM of Corporate
Environmental
Management

Committee GM of Corporate
members Procurement
Management

GM of Corporate
Finance & Accounting

Human Rights

NOK’s Efforts

Mainly related SDGs

CarbonNeutralSubcommittee

ReportRelated Internal Organizations

Central Environmental Conservation
Committee

Information Security
Committee

Internal Control
Audit Committee

GM of Corporate
Technology

Risk Management
Committee

GM of Corporate
Sales & Marketing

Seven Core Subjects

Approval

ESG Committee

GM of Corporate
Administration

BCM Committee

Divisions

Safety and HealthCommittee

Labor-Management
Council

CSR
Sub
committee
Scenario
AnalysisSubcommittee

Stakeholders

Respect for Human Rights

Respect for Fundamental Rights and Dialogue

Customers

Development of Human Resources

Labor Practices

Diversity
Human Resource and Welfare System
Industrial Safety and Healthcare

Society
Fair Operating Practices

Principles of Corporate Behavior

Quality AssuranceP articipation in Communities

Management Policies

and Community Development

Compliance with Fair Operating Practices
Supply Chain Management

Product Quality and Safety

Management Principles

Corporate Governance

Local
Community
and Society

Social / Local Area Activities

Corporate Governance

GovernanceSuppliers

Compliance

Shareholders/ Investors

Risk Management

Sustainable Society

NOK Charter ofCorporate Behavior

Environmental Management
NOK’s Mid-Term Goals and ProgressMaterial Flow

Employees

Environmental Management System

Environment

Environment

Measures against Climate Change
Resource Conservation and Waste Recycling
Conservation of Water Resources
Measures on Substances of Concern
Environmentally friendly products

Financial
Institutions

Conservation of Biodiversity

21 NOK CORPORATION CSR REPORT 2021

NOK CORPORATION CSR REPORT 2021

22

NOK Group Activities and SDGs
The NOK Group’s activities to date have contributed to the achievement of the Sustainable Development Goals (SDGs)
adopted by the United Nations.
The links between the NOK Group’s activities and SDG targets are listed here.
We will continue contributing to solving the social issues surrounding us.

Human Rights

3.4
3.6

Labor Practices

4.4

5.1
5.5

8.5
8.8

5.1
5.4
5.5

8.5
8.8

Fair Operating
Practices

Society

Participation in
Communities andCommunity
Development

3.4

4.4

9.5

11.4

14.1

17.17
16.5
16.7
16.b

Environment

Environment

6.3
6.4

7.2
7.3

9.4

Details of Our Efforts

Goal 3： Promoting welfare benefits and the health of employees

Participation in
Communities
andCommunity
Development

Goal 4： Providing education and training programs and implementing human resource development
Goal 5： Promoting women’s empowerment and work-life balance

Goal 8： Undertaking the task of providing a safe and comfortable working environment for employees

13.1

14.1

15.4

17.16
17.17

17.17

Goal 2： Activities such as food distribution to needy families

Goal 5： Promoting women’s empowerment

Goals 8 and 10: Respect and commitment to basic human rights related to employees

11.6

12.2
12.4
12.5
12.6

17.17

17.16

Corporate
Governance

GovernanceLabor Practices

12.4
12.5

9.5

2.1

16.2
16.4
16.5

12.2
12.5

10.2

Quality Assurance

Human Rights

10.2
10.3

Goal 3： Supporting sporting events and school-sponsored sporting events

Goal 4： Educational support for elementary schools and acceptance of interns from universities and technical colleges

Goal 9： Pursuit of activities to cultivate an environment that can form the foundation of innovation such as NHK College Student
Robocon, Kids Engineer, and Student Formula Japan Tournament

Goal 11： Becoming involved in the preservation of traditional culture and temples
Goal 14： Beach cleaning

Goal 17： Cooperation with various organizations

Corporate
Governance

Goal 16： Efforts of building up a compliance/governance system and pursuing initiatives against corruption

Goal 17： Corporate management commitment and initiatives that takes into account the benefits of all stakeholders
Goal 6： Prevention of water pollution and implementation of necessary measures in water-stressed areas
Goal 7： Enhancement of energy efficiency and introduction of renewable energy

Goal 10： Formulation and implementation of a fair procurement policy

Fair Operating
Practices

Goal 12： Implementation of Green Procurement

Goal 9： Improvement of resource efficiency, introduction of anti-pollution technology and development of environmentally friendly

Goal 17： Creating a new partnership with external organizations, companies, etc. in the supply chain

Goal 11： Management of hazardous substances and waste

Goal 9： Promotion of innovation by setting forth the improvement of our unique technologies in our basic policy centered

Quality Assurance

products

Goal 16： Implementation of CSR-based procurement

around "product quality and safety"
Goal 12： Promotion of reduction of waste loss by declaring to that effect in the Group Quality Assurance Policy
Goal 17： Creating a new partnership with external organizations, companies, etc. in the supply chain and delivery destinations

Environment

Goal 12： Reduction of input energy (natural resources), management of input resources and emissions in the course of business operations, and disclosure thereof in the relevant CSR report at regular intervals

Goal 13： Response to climate change

Goal 14： Management of water discharge effluent and cleaning activities at the seaside

Goal 15： Formulating the NOK biodiversity conservation policy and carrying out such activities as tree planting

Goal 17： Implementing environmental programs in coordination with significant participants in the supply chain, including Kyoeikai andKyoryokukai

23 NOK CORPORATION CSR REPORT 2021

NOK CORPORATION CSR REPORT 2021

24

NOK Group Business Overview and SDGs
At the NOK Group, we are contributing to the solution of environmental and social issues by providing our products to our customers for theiruse.
The products of the NOK Group are built into our customers’products to become their final products, so it is difficult to see the kind of issues
to which they are contributing.
Therefore, we decided to conduct a survey to find out to which specific targets of the SDGs our products are contributing. As a result, welearned that they are contributing in various fields, including automotive.

Contribution to SDGs realized

Product

by NOK Group businesses

Biological rubber electrodes have opened up new possibilities
Biological rubber electrodes,

Stable provision

packings

of necessary parts
5

SDGs That Our Products Are Contributing To

6.1

7.2

6.3

7.3

that were difficult with existing metal electrodes, such as the

Biological rubber

measurement of brain waves, electrocardiac signals, and myo-electrodeelectric signals. With the adoption of these products, contribu-

tion regarding new R&D related to the promotion of people’shealth and wellness is expected.

for devices that

protect people’shealth

3.9

Products and technologies contributing to the improvement of environmental andsocial issues

9.4

11.6

12.4

13.1

14.1

15.1

Biological rubber electrode

17.16

A packing that is attached to pipette tips and allows reagents to

Pipette packing

be injected into small devices. It is contributing to cell cultures
and the automation of testing.

Recycled plastic products

12.5

6.4
Contribution to SDGs realized

Products and technologies contributing to the improvement of environmental andsocial issues

Product

by NOK Group businesses

Oil seals, O-rings, gaskets,

Not generatingand emitting
1electromagnetic shielding rub-

Dust resistanceseals, metal bellows, etc.

technology

ber (EM Guard), mechanicalimprovement

substances thatenvironment

Space-saving gasket
Oil seals

Efficient energy

treatmentules,

3

Reducing environ-achieve the ever-advancing and evolving low fuel consumptionof automobiles. We have also achieved conformability withrubber, FPC

7

membraneseparation

modules, etc.

mod-membrane

Water-purifiermembrane modules

mental impact

Polyurethane Timing
Water-purifier membrane modules

belt

less torque than existing oil seals. In addition to energy saving

and a reduction of heat caused by sliding, the effect lasts for a

RUSTECTOR spec-

ification soft metalof products

gaskets and special
lubricant greases
Special lubricant grease

25 NOK CORPORATION CSR REPORT 2021

sulfone with a superior balance of membrane pore diameterand flow rate as the membrane material. As a result, minuteparticles contained in contaminated and reclaimed water canbe removed, contributing to the global issues of the effective

High-damping rubber

ture significantly improved damping characteristics.

electric vehicles

vehicles with our high-damping anti-vibration rubber, which fea-

For parts needed for monitoring the voltage and current of lithFPC

FPC

ium-ion batteries, we have developed FPCs that are thin, light,

flexible, and have excellent component mountability. We arecontributing to the dissemination of electric vehicles throughUN Global Compact
NOK is developing businesses globally in areas such as China
and Southeast Asia. In April this year, we became a signatory of
the UN Global Compact (from herein UNGC) to comprehensively
announce to the world that NOK is a company that aims to realize
a sustainable society and is a company that addresses human rights
issues. We are also actively collecting information and exchanging
views by participating in several subcommittees.

use of water and elimination of water stress.

The Ten Principles of the UN Global Compact

This product has the exceptional properties of high mechani-

Human Rights

cal strength, high wear resistance, low noise and low vibration.

Principle 1: S upport and respect the protection of inter-the production lines of various industries.

Principle 2: Not to be complicit in human rights abuses

Next-generation power transmission belts and transfer belts in

We developed soft metal gaskets and greases resistant to salt-cant grease, special coating,

Extending the life

We will meet the high-level quietness requirements for electric

anti-vibration rubber,

nationally proclaimed human rights

Labor

Le-μ’
s series, special lubriRUSTECTOR series

High-damping

Supply of parts forthe change in dimensional tolerance and creep caused by theWe have achieved high filtration capability by employing poly-

Super Low Friction

4

High-damping anti-vibrationand the rough and dirt roads seen in developing countries.

Oil seals treated with a special coating“TF Coat”achieve 30%

Vibration and sound isolators,

coating products, wastewatertem where 98% of raw materials are recycled.

Median Strip Blocks

environments such as in desert and extremely cold regions

Iron Rubber products

products,

extended usage life due to high durability and a recycling sys-engine while maintaining stable seal performance in harshlong time as the coating is less likely to come off.

lubricant

For median strip blocks used on roads, we have achieved

the downsizing and weight reduction of batteries.

TF coat oil seals

transfer

Median Strip Blocks

materials

change in housing materials.

The Le-μ’s series, iron rubber
products, accumulators, solenoid
valves, actuators, thermally conductive rubber, etc.

specialRecycling of raw

Technology that prevents sand and dust from entering the

We developed lighter and more compact seal products to

impact the2

6water corrosion that can be used for aluminum housings suchas electric vehicle units. The RUSTECTOR specification soft met-

al gasket features a seal with a unique cross-sectional shapethat effectively prolongs the life of units by slowing down theadvance of corrosion while maintaining high sealing perfor-

mance. Corrosion can be contained further by using the seal in
combination with highly water-resistant grease.

Principle 3: U phold the freedom of association and theeffective recognition of the right to collective
bargaining

Principle 4: T he elimination of all forms of forced andcompulsory labor

Principle 5: The effective abolition of child labor

We will continue to contribute to the realization of a sustainable
society by supporting and implementing the ten principles of the
UNGC in our business actives. The Ten Principles are related toissues such as protection of human rights, elimination of unfair labor,
environmental measures, and anti-corruption. We will also disclosethe content of our initiatives to our stakeholders on a regular basis.

Environment

Principle 7: S upport a precautionary approach to environmental challenges

Principle 8: U ndertake initiatives to promote greater environmental responsibility

Principle 9: E ncourage the development and diffusion ofenvironmentally friendly technologies

Anti-Corruption

Principle 10: Work against corruption in all its forms,
including extortion and bribery

Principle 6: T he elimination of discrimination in respect of
employment and occupation

NOK CORPORATION CSR REPORT 2021

26

SPECIAL TOPIC
Caux Round TableJapan
Executive Director

Hiroshi
IshidaInterview

NOK CORPORATION
Senior Operating Officer
General Manager ofCorporate
Administration Office

N or i yu k i
T ak a h a sh i

Sharing awareness of“Protect Human
Rights”among all employees
IshidaThe concept“Love and Trust”of the NOK Group thatyou mentioned earlier is based on the so-called“theory of innate
goodness.”However, to convey initiatives as a company to society,
it is also important to communicate messages from the“theory of
innate evil.”For example, this means that when it comes to respecting and protecting human rights, it is necessary to show evidence that“we are not doing anything wrong, we are doing things
correctly.”Including this, what does the NOK Group think abouthuman rights?
Takahashi I feel that there is no need to change significantly in our

way of doing things, as there are many similarities between respectfor human rights as stated in SDGs and the initiatives of NOK Group.
However, it is also true that there are many things that have notbeen done. In the first place, it cannot be said that all the employees properly understand on what“Human Rights”are.
IshidaThis is the issue of how to promote correct understand-To promote human rights initiatives true to the spirit of NOK through theing and awareness of human rights. I think it is necessary to confirm

fusion of social perspectives with the company DNA of“Love and Trust”

Takahashi I agree. Without this kind of common awareness, there

this with all the employees through training or something similar.
is the risk that if we say“let’s protect human rights,”nothing would
happen.

Our employees are management partner
IshidaThe theme of today’s interview is“valuing people.”Hasand trust in employees, was born out of this history.
IshidaListening to that story, it is easy to understand that NOK

values“Love and Trust”as the DNA of the company.

NOK taken any special initiatives along this theme?

Takahashi “The Management has to run the Company based on

Takahashi The first item outlined in NOK’s management principles

feelings of love and trust in its employees”is connected to“valu-

is“Management has to run the Company based on feelings of loveing employees,”and I think the relationship with the labor union

and trust in its employees.”Our management principles exemplify

can be given an example of this. Senior management attends every“valuing people,”and these principles are the foundation for ourmonthly labor union meeting held at the head office, and they ex-

regular treatment of employees as well as our human resource

plain company policies before they are implemented, and discus-

and welfare system, so we are not doing anything special. Actually,sions are held. Also, in labor-management negotiations, frank andthere is a history to this way of thinking. Around 70 years ago, NOK

positive debate about how to develop the company is held. The

was on the verge of bankruptcy and was not even able to regularlycompany has a great deal of respect for the opinions of the labor

pay its employees. The president at the time (four generations be-union, in other words, employees’opinions, and their opinions arefore the current president) told the employees,“I will do whateverutilized in the formulation of company policies.

it takes to get the company back on its feet in a month, so I need
you to lend me your strength.”They came together and were able

IshidaNot only the upper management, but also employees areunited in their commitment.

to overcome the crisis. The management principle, a spirit of love

Takahashi Another underlying concept at the NOK Group’s core isto“pursue the well-being of employees.”From the time a person
enters a company until retirement, they experience many stages oflife, such as marriage, raising children, and retirement. The company
and the labor union get together from time to time to consider how
they can support employees so that they are happy.
IshidaI think it is a wonderful concept. For example, the re-lationship with the labor union mentioned earlier is a worthwhile
initiative. However, to effectively convey this uniqueness of the NOKGroup to society, I think it is necessary to devise the way this iscommunicated.

There are many companies implementing training in

the form of E-learning as a way to spread awareness. In addition
to E-learning, I think it would also be effective to consider humanrights with employees using actual examples of operations at offices or factories.
Takahashi It is certainly important to make those kinds of initiatives.

The NOK Group has many overseas companies, and from an overall
perspective, there are still many things to be done.
IshidaTo be able to share an awareness of human rights withall employees, it is important to promote awareness such as“howis our workplace at the moment?”or“are human rights being violated in surrounding areas such as factories?”

but also related departments within the Group, as well as external
collaborations such as customers, are necessary. It is an issue thatshould be addressed across the entire industry.
Takahashi We are taking advantage of various opportunities andconducting training sessions. Also, we are cooperating with the labor union to collect information from employees to prevent issues
before they occur. We also set up a consultation service for employees. We have also deployed a similar consultation service inGroup companies in Southeast Asia.
IshidaYou cannot change awareness about human rights in

one go. It is essential to start with relatable issues and build initiatives gradually from there.
By the way, what kind of system do you have in place to promote
activities related to human rights?
Takahashi Actually, we are working on creating the system rightnow. We have created an ESG committee with the president ascommittee chairperson, and we are enhancing activities across theentire NOK Group.
IshidaI see. That’s a good idea. It is vital that the president

leads from the front and makes commitments to their employees
and society.
You will continue to protect the DNA of Love and Trust passed
down from your predecessors. While doing so, you will change

NOK’s Unique Respect for Human Rights
Initiatives
IshidaPursuing the well-being of employees

27 NOK CORPORATION CSR REPORT 2021

Ishidawork. In order to resolve these issues, not only production sites

I would like to hear a little about your specific initiatives.

what you need to in line with the values of society. From this fusion, I hope you will expand the NOK Group’s unique initiatives torespect human rights.

How are you proceeding regarding safety, which has a close relationship to human rights?
Takahashi We have been taking initiatives regarding safety for along time. However, as there are policies for each division, there
have been difficulties with thorough implementation. There was an
unconscious tendency to favor the delivery schedule of the products. That is why the chairman once again made a commitment to“give top priority to safety”for all employees. Safety is the overarching principle of management that respects human dignity, andalong with the environment and quality, it is a very significant theme
for the NOK Group.
Ishida

You just touched upon delivery schedule, which is prob-

ably an issue related to human rights, such as safety and overtime

NOK CORPORATION CSR REPORT 2021

28

Society

Social ReportSociety

Labor Practices

Human Rights

Basic Concept

UNGC

UNGC

UNGC

UNGC

Principle1

Principle2

Principle4

Principle5

Major Initiatives Related to Human Rights(Implementation of Activities and Various Education
Programs for Promotion of Human Rights)

Human Resources Development
Basic Concept

NOK’s Human Resources Development Program

It is in the respective workplaces where employees can feel thatthe management is running“the Company based on feelings of loveand trust in its employees”as stipulated in the Management Principles. Under the Basic Principle of Human Resources Development
and the Vision of Human Resources Development, NOK aims tocreate workplaces where employees can find satisfaction in theirjobs and feel that they are growing. To this end, we are making
efforts to develop human resources who can contribute to createsuch workplaces through various programs.

NOK’s human resources development program consists of levelspecific education and development/specialized education. The
level-specific education is intended to enable attendees to understand their own roles and the expectations from the company
correctly, and to contribute to the creation of workplaces where
attendees themselves and their colleagues can find satisfaction in
their jobs and feel that they are growing.

Basic Principle of Human Resources Development“A workplace nurtures its people,
and people nurture their workplace.”
Vision of Human Resources Development“Development of human resources
who take pride in their jobs and respect each other”

29 NOK CORPORATION CSR REPORT 2021

Level-specific education
The fourth year follow-up training is a junior training program collectively targeted at employees in their fourth year after joining thecompany as new graduates. In the sessions, trainees share the details of their daily work and their experiences, and hold panel discussions with senior employees invited from various types of jobs.
Through these sessions, trainees can receive a variety of advice
on concerns that many junior employees currently have, such as
how they should perform their jobs, how to interact with people inand outside of the company, and the necessity of improving their
linguistic ability and other skills. This training provides trainees with
opportunities to share a sense of unity and be in friendly rivalry
with their peers, as well as to reconsider their roles and ways of
performing their jobs at their respective workplaces. In FY 2020,
the fourth year follow-up training was not implemented due to theimpact of the novel coronavirus pandemic.

NOK CORPORATION CSR REPORT 2021

30

Environment

We are conducting education for managers at the new manager
training and manager follow-up training to prevent all kinds of harassment, including the prevention of power harassment that was
legislated in June 2000 in Japan. For employees, we are raisingawareness by utilizing opportunities such as harassment prevention
month through company-wide educational materials. In addition,
we have established systems to prevent harassment and take swift
and appropriate action after harassment has occurred not only forthe occurrence of harassment within the group but also for harassment at external affiliates.

Our domestic Group companies are instructed to ensure compliance with the Labor Standards Act, the Labor Union Act and any
and all other labor-related laws. Our overseas Group companies
are also instructed to ensure compliance with labor-related laws ofeach relevant countries corresponding to these labor-related laws.
In FY 2020, we received no reports of violation of the Labor Standards Act at domestic business sites. Regarding domestic business sites that accepted technical interns of foreign nationalities,
we have checked the status of compliance with the Immigration

GovernanceRegarding respect of human rights and compliance with labor laws
at overseas subsidiaries, every year, we confirm whether there has
been any discriminatory treatment of employees, harassment, childlabor, and forced labor.
Also, as a consultation service for human rights, in Japan, we have
set up an internal reporting service and an external reporting service with a lawyer. We have also set up an internal reporting service
at our overseas subsidiaries. Every year several consultations arereceived, we take corrective action for those in which non-compliance has been confirmed.

2. We must not conduct acts of harassment that have adverse
effects on the workplace environment, such as impairing the
dignity of individuals and causing disadvantages to or posing
threats to them. In addition, such acts of harassment shall not
be forgiven.

Compliance with Labor-related Laws

Organizational

Review of Human Rights Compliance

1. Diversity, character and personality must be respected, andthere shall be no discrimination based on race, skin color, creed,
religion, nationality, age, gender, sexual orientation, gender
identity, national origin, or bodily or mental handicaps. Moreover, such discrimination shall not be forgiven.

Participation in Communities andCommunity Development

Our Principles of Corporate Behavior set forth“Respect for Human
Rights”and“Provision of a Safe and Comfortable Working Environment,”and our Behavioral Guidelines Concerning Employee Compliance stipulate as follows:

Dialogue between the management and employees is essential
for“running the Company based on feelings of love and trust in
its employees”and promoting its healthy development. Respecting the right to organize, the right to bargain collectively and otherrights of workers, the NOK Group has built a healthy labor-management relationship.
The employees subject to the Labor-Management Agreement account for 90% of all employees of NOK. Regular labor-management
meetings are held with the participation of the top management.
Not only negotiation about working conditions is conducted, butalso explanation on business conditions and management issues
are presented. Also, discussions on the company’s important policies and measures are held so that both the labor side and the
management side can cooperate in realizing business development
and employee happiness.

Quality Assurance

Our management principle is “The Management has to run the
Company based on feelings of love and trust in its employees.”We
value the life of each employee and respect their humanity, and at
the same time, we maximize the potential of each employee. We
thereby maintain and reinforce the company’s competitive edge.
That is to say, we firmly uphold the stance of respecting humandignity across all aspects of our operations.
A precondition for such management based on respect for the human dignity of employees is the idea of respect for basic humanrights. Based on this principle, we respect the human rights outlinedin the International Bill of Human Rights and the ILO Declaration
on Fundamental Principles and Rights at Work, and we became asignatory of the UN Global Compact.
The NOK Charter of Corporate Behavior makes a declaration as
follows:“We will carry out management that respects the humanrights of all people.”We develop our business in accordance withthis declaration.

Establishment of a Healthy Labor-Management
Relationship based on Dialogue

Practices

Respect for Basic Human Rights Related to Employees

Control and Refugee Recognition Act, working environment, living
environment and labor conditions. As a result, we made a comprehensive judgment that there was no problem.

Fair Operating

Basic Concept

To practice the management principle of respecting human dignity
is to respect and protect workers’rights. In practicing the management of respecting human dignity, we comply with the Principles
1 to 6 of the U.N. Global Compact. Moreover, practicing one of
NOK’s Management Principles,“a company with open communication,”leads to active promotion of dialogue among employees anddialogue between the company and employees. Under these Management Principles, NOK is making efforts to create a workplace
where employees can work vigorously without anxiety.

UNGC
Principle3

Labor Practices

Respect for Human Rights

UNGC
Principle1

Human Rights

Respect for Fundamental Rights and Dialogue

Society

Labor Practices

Number of participants
FY

2017

2018

2019

2020

Number ofparticipants

863

736

1,103

1,027

＊ Including group companies from FY 2019

2017

2018

2019

2020

13,351hours

12,866hours

13,992hours

15,762hours＊ Including group companies

3rd yearInterview

New employee

Environment

4th year follow-up training

NOK takes various measures to increase the number of females
recruited for management-track positions. It also provides training
and guidance to enable existing female employees in non-management-track positions to be actively promoted to management-track
positions and on to executive positions according to their willingness and abilities.
The medium-term plan for these initiatives is to increase the percentage of new female recruits for management-track positions to
10% by the end of FY 2022. The plan has also set the target of
tripling the number of female employees in management positions
compared with the number at the end of FY 2019.

New employee training

Junior training program

Management program

Level-specific education

31 NOK CORPORATION CSR REPORT 2021

Governance

4th year

Organizational

Worksite leader training

Special training

Sub-section
Chief, AssistantSection Manager

Business skills training

New manager training

Temporary assignment training

Manager follow-up training

Global human resources development

Department manager training

Section Manager

In 2006, NOK introduced a system to rehire employees who havereached mandatory retirement age. We seek to improve the system
so that retired people who still wish to work can make full use of
their rich work experience and the advanced skills gained throughtheir career at NOK. For example, retired employees can pass theirwork-related knowledge and techniques on to younger generations
while maintaining their livelihood through reemployment under thesystem.
In FY 2016, flexible working styles were introduced, and working
conditions were revised. While revising working conditions fromtime to time thereafter, we established an internal recruitment
system and a human resources registration system for senior employees. Moreover, through providing seminars on life planning tosupport livelihood after retirement and training prior to retirement
for maintaining the will to work, we continue to facilitate senior
employees taking on more active roles and to enhance their job
satisfaction after retirement.

Promoting women’s empowerment
Executive officer training

Department
Manager

Senior Employee System (Reemployment after Retirement)

Participation in Communities andCommunity Development

With the stance of localizing business execution by overseas bases,
the NOK Group promotes development and appointment of humanresources who acknowledge and understand local conditions regardless of their race or gender.
Interaction among executives, technology, manufacturing, sales,
operations and other departments of both domestic and overseas
bases is facilitated so that they can utilize the outcomes for thedevelopment of human resources and improvement of operational
quality and efficiency in each department.
Furthermore, non-Japanese employees are appointed to the executive positions of overseas subsidiaries. In addition, active appointment, development and participation of employees of foreign
nationalities are advanced by providing training for the technicaland manufacturing employees of overseas subsidiaries in the technology and manufacturing departments, and hiring non-Japanese
students in Japan.

NOK is working to promote the employment of people with disabilities so that they can take jobs according to their abilities andaptitudes and live independent lives in their communities. Divisions
around Japan promote the placement of people with disabilities
to jobs that satisfy them and the creation of workplaces that enable them to work comfortably in order to establish an environment
where people with disabilities can work vigorously.

Quality Assurance

Global Promotion of Diversity

System of NOK’s human resources development program
Operating Officer

The NOK Group upholds the stance of recruiting and appointing
various and diverse human resources regardless of their gender,race or nationality. On a global consolidated basis, approximately 38,000 employees of diverse and different nationalities, races,
genders, and employment types are currently working in the NOKGroup. We ensure that executives of both domestic and overseas
business bases understand management based on respect for human dignity, which is the basic principle of the NOK Group, andpromote the practice of such management in accordance with thecircumstances in each region.

Enhancement of Employment and Supporting System for
People with Disabilities

Practices

FY
Training
hours

Basic Concept

UN G CPrinciple6

Fair Operating

Training time results

Diversity

UN G CPrinciple1

Labor Practices

Training/expert education
Training/expert education is carried out for participants to acquire
the necessary skills to perform their duties.
The Business Skills Education program is designed to enable all
employees who wish to participate in expert education across divisional boundaries, which had previously been provided by individual divisions to the employees in their own divisions. By making theinformation on the courses held in each division in the company
visible in a unified manner, we have been able to share the information and apply for the course.
Moreover, global human resources development aims to develop
human resources who can actively use English at work, rather thansimply speaking English well. In addition to language training, weare cultivating human resources who can play an active role globally through off-the-job training to improve the attitudes and communication skills required to work overseas, as well as on-the-job
training with the aim of expanding the scope of work for individuals.
The program, which is implemented for a term of six months or
longer, is intended to supplement the internationalized human resources development system in which employees study language
abroad under the in-house system.
“The specific education”is targeted at employees who need intensive education or training from time to time. Usually, the programis implemented under the themes of active participation of the reemployed retirees and vitalization of the workplaces.
As seen from the above, NOK endeavors to develop and vitalize
employees by increasing opportunities for them to receive various
training. Such training is implemented to provide employees withnot only opportunities for simple capacity building, but also oppor-

tunities to establish solid relationships with their seniors and peers,which will be very helpful for ensuring smooth communication ateach workplace.
Training records of programs are managed and followed up in thein-house training management system. In FY 2020, 1,027 employees received training, and the total training hours were 15,762.

Human Rights

Since FY 2019, domestic group companies have been included in
the management program (worksite leader training, new manager
training, and manager follow-up training).

Top management program

Special skills training
program

Human resources
development program

Development/specialized education

NOK CORPORATION CSR REPORT 2021

32

Society

Labor Practices

As part of management based on respect for human dignity, NOK ismaking efforts to realize a working environment where employees
can balance their job satisfaction and comfortable private lives. In
addition to past measures taken to help employees achieve bothprofessional and personal goals, we now consider and undertake
various other measures from the viewpoint of work style reform.
To realize flexible and diverse work styles, we also work on theimplementation and improvement of a flextime system, childcare
leave, nursing care leave and other employee benefit systems, thelowering of the upper limit of overtime work hours for shorteningof working hours, and improvement of the rate of paid leave takenby employees.

Information concerning the personnel systems of other companies
and the labor administration of the Ministry of Health, Labour andWelfare can be obtained by participating in the regular meetings
and working group activities associated with personnel affairs measures taken by the industry group of automobile parts companies.
This helps us determine better personnel affairs systems at NOK.

Respect for human dignity is one of the NOK Group’s management
principles, and we believe that safety is a crucial precondition forsuch principle. Safety represents both a mission for management
and a desire of all employees. We have well recognized safety as a
top priority in all operations. To explicitly communicate a message
on safety from top management to employees as well as improveand ensure safety awareness and eliminate industrial accidents, weformulated the NOK Group Safety Principles in FY 2017 and arepromoting our safety activities accordingly with unified efforts.

2．
Paid leave is to be taken for 16 days or more in a year.
To achieve these targets, we are aggressively working on a policy of”
promoting digital transformation”to improve operational efficiency. The effective use of online meetings and paperless operations
amid the novel coronavirus pandemic prompted a rapid digitaltransformation of operations. Going forward, we will endeavor toestablish and further promote the systems.

3.Zero explosions and fires and thorough implementation of
measures to prevent recurrence

Safety and health activities

NOK Group’s Basic Safety Principles posted in a factory

Occupational Health and Safety Promotion System
The NOK Group has established a safety and health management
organization headed by the president of NOK to promote safety
and health activities.
The Central Safety and Health Committee, which serves as an activity organization, holds meetings twice a year to develop annual policies. These policies are then promulgated to divisions andgroup companies to promote activities based on the annual safety
and health plan. The Safety & Health Dept., which supervises safety and health affairs of the Group, as a whole, actively supports
the creation of systems by which the level of safety and healthmanagement can be maintained and improved in each division, in
collaboration with safety secretariats at plants, the head office andgroup companies.

Occupational Health and Safety Promotion System
President
Central Safety and Health Committee (Chairperson: Safety Officer)
NOK Safety and HealthControl Division

NOK

33 NOK CORPORATION CSR REPORT 2021

to half

2.Equipment safety measures through risk assessment

Domestic plants

Head office/branches

Safety and HealthCommittee(Chairperson: Head ofBusiness Unit)

Safety and Health Committee(Chairperson: General Managerof the Safety and Health
Division)Group Companies
Safety and HealthCommittee(Chairperson: Person
responsible for Safety)(1) D istribution of a video of a message fromthe upper management to all employees
We created a video of a message from the upper managementand distributed it across the Group so that each employee canfully understand that safety is our top priority. Safety culture will
be developed and instilled through repeated viewing of this video, in which the upper management speak freely, in each workplace, thus contributing to the creation of safe workplaces.
(2) Safety declaration by the heads of divisions and Safety Day
activities
The heads of divisions, including the head office, make a safety
declaration, taking the lead in the promotion of safety activities
in each division. Furthermore, we have set Safety Day, on which
all employees of each workplace work on the improvement ofawareness of safety, mutual enlightenment, identifying risks at
our own workplaces and the countermeasures every month.
(3) Measures for securing safety of facilities
Based on risk assessment for facilities and operations, we continue to take additional measures to reduce operational risks,such as introducing safety mechanisms into facilities and placing
safety covers on equipment, thereby creating a work environment where employees can work more safely through mitigating
operational loads on employees. These activities will be continued until the occupational accidents that occur due to factors
associated with facilities are totally eliminated.
(4) Zero explosion/fire
For fire management, we focus on prevention of fire disasters/
small fires and therefore established and utilize a system whichenables us to share company-wide information on near miss incidents and take preventive measures against their recurrence ina unified manner.

NOK CORPORATION CSR REPORT 2021

34

Environment

1．In principle, the total of overtime work and work on a holiday to
be within 45 hours in a month and 360 hours in a year2．
Support for retiree associations
To help employees enrich their lifestyle after retirement, NOK established retiree associations around Japan (regional eight blocks),
and supports each association in regionally holding gatherings andother events for retirees to interact with each other.

injuries and reduce the total number of occupational accidents＊ Number of cases in FY 2022 compared with the number in FY 2018

Other Welfare Systems
1．
Workplace communication
The NOK Group aspires to maintain a workplace with open communication at all times. Executives and managers take the lead increating and maintaining a workplace where good communicationis ensured between superiors and subordinates, among coworkers
and between departments. For example, through social gathering
meetings composed of officers and employees, the company supports entire divisions and respective workplaces in planning andholding social gathering events.

1.Improving the level of safety management to eliminate lost timeGovernance

NOK has endeavored to shorten the total actual working hours to
help employees to pursue comfortable and affluent lifestyles. We
annually develop a plan for new initiatives and review the performance of previous initiatives in the labor-management committee.
Specifically, we check the record of overtime work hours and paid
leave actually taken on both department and individual bases byusing the relevant data, and thereby identify issues and develop aplan of countermeasures. At the Central Labor-Management Council, we review the issues and the plan to establish medium- to longterm targets.
The current targets are as follows:“Safety is the foundation for
implementing management spirit that
respects human dignity, my desire and mymission”

Organizational

Enhanced Initiatives for Shortening Working Hours andEncouraging Employees to Take Paid Leave

NOK Group Safety Principles

Development of the medium-term occupational safety
and health plan
The NOK Group established and has been implementing continuously the medium-term occupational safety and health plan (FY2019 to FY 2022), focusing on the following three items:

Participation in Communities andCommunity Development

NOK provides childcare leave, nursing care leave and other employee benefit systems, some of which offer support that is morewide-ranging than the statutory support, to help employees workin ways that suit their lifestyles. We provide information and advice
to ensure the systems are properly functioning and facilitate theiruse by employees.
Moreover, we have promoted the creation of a comfortable workplace by adopting a flextime system (without core time), easing the
restriction on taking paid leave for half a day, and allowing expiringdays of paid leave to be reserved for up to 30 days. In FY 2021, we
introduced a telecommuting system to improve efficiency in operations and help employees achieve a better work-life balance.

Every year, NOK provides employees with an opportunity to reporton their workplace situation and the job they aspire to have in the
future. Depending on the content of the report, such as the desired
career path, an interview with a supervisor is arranged as needed,which is also an opportunity to communicate with one’s supervisor.
The results of the self-reporting are used to develop and utilize
human resources effectively in order to ensure that the right personnel are appointed to the right positions, thereby improving theworkplace environment.

Activities in FY 2020

Quality Assurance

Work-life Balance(Support for Balancing of Work and Family)

Self-evaluation and Reporting System

We improve our safety and health plan by implementing a PDCA
cycle on a quarterly basis and conduct analysis to reinforce theweak points of each workplace by utilizing radar charts on a yearlybasis. Moreover, divisions developing improvement plans are designated as“Specially Controlled Division”and receive support fromthe Safety & Health Dept. in implementing the plans.

Practices

Basic Concept

Fair Operating

Initiatives by Business Type, Theme and Cooperation

Labor Practices

Basic Concept and Initiatives for Work Style Reform

UN G CPrinciple1

Human Rights

Occupational Safety and Healthcare

Personnel and Welfare Systems

Society

Labor Practices

Lost Time Injury
Frequency Rate＊＊ Rate of occurrence of lost time injuries per one
million hours

FY2018FY2019FY2020

Average among
manufacturers

1.20

1.20

－

NOK Group (domestic)

0.46

0.27

0.21

workdays lost per 1,000 hours

FY2019FY2020

0.10

0.10

－

NOK Group (domestic)

0.007

0.004

0.004

FY2020

Safety, hygiene andhealth training forline managers

143

129

161

Facility safety
training(simulation/safety
standard training)

330

59

146

No. of units
undergoing facility
safety improvements

622

1,131

994

Investment infacilities andequipment forsafety measures

370
million yen

320
million yen

68
million yen

60
40

0

Virtual crisis simulation training

80

74

70

51

8

6

FY2019FY2020

60
40

16

20
0

FY2018Injuries not accompanied by lost time
Lost time injuries

850

715

Rate of receiving
comprehensive healthexamination

99.9％

99.9％

99.8％

Rate of receiving secondary
examination

89.4％

89.9％

91.9％

＊NOK Group (domestic)

Activities to improve the workplace environment
The NOK Group first launched activities to improve workplace environments in 1993. We have managed our working environments(noise, heat and cold), operations (work posture and the handlingof heavy objects) and support systems (the provision of facilities forrelaxation). The Mid-Term Safety and Health Plan from FY 2019 has
strengthened efforts to improve our working environments with anemphasis on group companies.
In FY 2020, we focused on improving the operational environment
in workplaces where the temperature is hot, and improved the temperature and humidity environment of 22 workplaces.

Activities for traffic safety
As part of the responsibilities of companies associated with thetraffic society through their products, the NOK Group focuses on
creating a culture of traffic safety. From the viewpoint of respecting
human dignity, we have, over a period of time, exercised necessarycontrol and provided education and guidance in promoting safe
driving, in the hope that we can reduce, even if only slightly, thenumber of people adversely affected by traffic accidents and eradicate traffic rule violations leading to accidents. In addition, we havebeen working to ensure that all employees and fellow passengers
wear seat belts since the 1970s, even before the Road Traffic Act
made the fastening of seat belts mandatory.
Moreover, in order to promote safe driving, NOK divisions areundertaking traffic safety lookouts and holding traffic safety seminars taught by the Japan
Automobile Federation andlocal police departments.
For example, we commend
good drivers according totheir number of years as
safe drivers, during which
they caused no accidents orviolations, to maintain andFuji Logistics Center of Fuji Branch was granted
improve employees’aware- a letter of appreciation for being a business sitethat promoted safe driving.
ness of traffic safety.

Total number of employees
commended for safe driving(Those commended for
30 years or longer)

Remote workout by our athlete employees
Education for managers

35 NOK CORPORATION CSR REPORT 2021

FY2018FY2019FY2020

856
（78）

910
（124）

908
（139）

Number of traﬃc accidents where NOK was responsible andNOK and the other party were both responsible (NOK Group)
120 (Cases)
120
93
100
10 0
12
80
80
51
60
60
40
40 FY2018
FY2019FY2020NOK CORPORATION CSR REPORT 2021

36

Environment

20(Cases)867

Governance80

Number of healthconsultation calls

Organizational

Number of Industrial Accidents

In FY 2019, NOK started activities to analyze the employees’healthdata, seeking to help improve their health. Meetings of occupational
health nurses and public health nurses are held to share information.
To meet the mental health needs of employees, we have developeda system that incorporates individual interviews by clinical psychologists and is thereby able to offer counseling, in addition to efforts
realizing self-care, line care and care provided by in-house occupational health staff.
We have also established a free 24/7/365 telephone hotline staffedby an external professional institution to deal with mental healthproblems at an early stage and continue to provide support forsmooth return to work.
In FY 2020, in response to novel coronavirus, we prepared a manual
for the prevention of infection and the initial measures to be takenin the event of an infection. We completed and started the internal
operation of the manual before the Japanese government’s declaration of a state of emergency was issued in March 2020, which leads
us to believe that our efforts had preventive effects. Furthermore,
we held an internal lecture meeting led by our industrial physician
concerning the forefront responses to novel coronavirus so that employees obtain correct knowledge.
We established an online interview system so that employees working from home can consult with our industrial physician and publichealth nurses more easily than ever, and this system also helped
enhance the primary prevention of infection.
We have also established a free 24/7/365 telephone hotline staffedby an external professional institution to deal with mental healthproblems at an early stage and continue to provide support forsmooth return to work.
To promote employees’physical health, we have also focused on
encouraging employees to engage in exercise in an enjoyable format, in cooperation with industrial physicians, such as the provision of guidance concerning lifestyle diseases (at the head office),
seminars to prevent back pain and stiff shoulders (at divisions) andwalking events (at divisions). In FY 2020, our athlete employees,
Okubo and Hirayama, instructed remote workout sessions threetimes, teaching a total of 100 participants muscle training throughaerobic exercise.

Participation in Communities andCommunity Development

FY2019FY2020Quality Assurance

FY2018FY2019Practices

Major safety
activities

FY2018Fair Operating

FY2018Average among
manufacturers

Safety and Health Principles

Line managers receive safety, hygiene and health training at thetime of their appointment and again at the beginning of their fourthyear to ensure a common awareness of safety and health issues.
We formulated the Safety and Health Standards to set standards for
employee education and training as well as for facility safety. Thesestandards are applied to the on-site operations of relevant departments. As practical education, virtual crisis simulation equipment
produced by NOK is also used in the safety and health training.
With the aim of raising the level of safety awareness and mutual enlightenment among safety secretariats, training workshops are held
periodically with the participation of the secretariats at domestic
group companies and plants.
To secure the safety of contractors conducting work on NOK premises, we implement the sharing of near-miss incident information
and risk prediction training before they start their work so that safe
working procedures will be ensured.

＊ Severity of injuries represented by the number ofMajor mental and physicalhealth promotion activities

Labor Practices

Lost Time Injury
Severity Rate＊

Mental and Physical Health

Human Rights(5) Safety and health education
Our Safety and Health Mottos were developed in 1976 with the aim of maintaining and raising the safety awarenessof employees and helping them acquiresafety knowledge. The Mottos havebeen used as an educational tool for all
employees to share awareness of safetyin operations.

Society

Fair Operating Practices
Human Rights

CSR Procurement Guidelines

Compliance with Fair Operating Practices

In order to fulfill our corporate social responsibility, we request that our suppliers refer to this Guidelines and actively promote CSR

Basic Concept

activities, including within their supply chains, while complying with the guidelines within the NOK Group.

1

Compliance with laws and regulations

Labor Practices

We shall comply with laws and social norms in each country, including competition laws, trade-related laws, and environment-related laws.

Respect for human rights
・We shall not deal with business entities that would use forced or child labor, that would engage in unlawful employment
Practicesof foreign nationals or any other illegal employment and that would not satisfy industrial safety and health regulations.
・We shall not discriminate on the grounds of race, ethnicity, creed, gender, age, marriage, physical characteristics,

Supply Chain Management

disability, etc. in any employment or treatment (application, recruitment, promotion, remuneration, right to receive

2 ・We shall comply with the laws and regulations of each country and region where employees are entitled to minimum
education, work grants, wages, welfare, punishment, dismissal, retirement, etc.).

Quality Assurance

wages, overtime, wage deductions, piece-work payment, other benefits, working hours (including overtime), holidays,
and annual paid holidays.
・We shall communicate and discuss with employees directly or with their representatives faithfully. We recognize the

NOK Group Procurement Policy

rights of employees to associate freely or not to associate in accordance with the laws and ordinances of individual

We share mutual interests and benefits with suppliers based on the idea of mutual prosperity.

4

We engage in open communication and build a relationship of trust with suppliers.

5

We conduct improvement activities proactively in collaboration with suppliers.

4

Green Procurement

5

Confidentiality

6

Elimination of anti-social forces

7

Activities regarding conflict minerals

8

Contribution to local communities

9

We shall prioritize the safety of customers and consumers and purchase products that satisfy safety regulations.

We shall carry out procurement activities based on the NOK Group Green Procurement Guidelines with consideration
for preserving the global environment.

We shall deal with suppliers that can appropriately manage and control the confidentiality of information on customers,
individuals and technologies, etc. obtained through business transactions.

We shall not deal with any organized crime groups, any of their members and related individuals nor any other antisocial
forces as well as any business entities associated with them.

Environment

3

SafetyGovernance2

Based on the idea of free competition, we select suppliers in a stringent manner by providing fairand equal opportunities.

3

We shall strive to avoid purchasing minerals and products that use minerals from countries where inhumane armed
forces are active and mining minerals for their financial resources.

We shall contribute to the development of local communities by promoting business transactions with local suppliers.

Information disclosure

We shall disclose business information related to management and finance, product handling and safety, quality, environment information, etc. to all stakeholders in a timely and appropriate manner, and through open and fair communication, we shall maintain and develop mutual understanding and trust.

Deployment of suppliers’CSR

order to advance initiatives throughout the supply chain, we request secondary and subsequent suppliers also to
10 Inimplement
initiatives equivalent to those described in the NOK Charter of Corporate Behavior and CSR Procurement
Guidelines.

In November 2020, the NOK Group revised the basic principle and rights on labor stipulated in this Guidelines in line with the UN Global Compact.
We request our suppliers to take actions in line with this revised Guidelines to ensure that the work environment is adequately safe, to treat
workers with respect and dignity, and to conduct work with ethics and responsibility for the environment.

37 NOK CORPORATION CSR REPORT 2021

NOK CORPORATION CSR REPORT 2021

Organizational

We comply with laws, regulations and social norms.

Participation in Communities andCommunity Development

countries and regions.

1

Fair Operating

We believe that in order to fulfill our corporate social responsibility,
it is essential to share common awareness across the procurement
supply chain while building up trustful relations therein, thereby
achieving interactive development.
In addition, today’s society has many issues such as environmental
issues and human rights issues, and companies are expected tosolve the issues for building a sustainable society. To this end, weestablished the NOK Group Procurement Policy to conduct our procurement activities with suppliers.
At the same time, we ask them to respect our Corporate Behavior
Charter, CSR Procurement Guidelines, and NOK Group Green Procurement Guidelines, and to ensure fair and impartial procurement
activities that consider possible impacts on society and the environment, thereby realizing a sustainable society. We will direct ouroverall efforts throughout the supply chain toward the realizationof this initiative.

38

Society

Society

Fair Operating Practices

Strengthening supply chain BCP / BCM

Basic policy

1.All employees work together to make constant efforts to improve quality
2.Improve our unique technology
4.Thorough compliance with laws and regulations

NOK Group
Green Procurement Guidelines

November 1, 2019 (Rev. No. 4.1)

5.Continuous policy management

1. Thorough adherence to basics
In order to earn more customers’trust, the top priority of ours
is to stick to the basics. More specifically, we will aim at educating our employees in quality assurance against correct
standards and having them comply with the same, thereby
continuously improving their skill in quality assurance. We will
ensure that the products we deliver to our customers do notcause any inconveniences due to inadequate work decisions
or non-compliance with some work.
2. Prevention of serious quality problems
As demands for product safety and quality increase, and withincreasingly sophisticated demands of customers for compliance and responses to product defects identified in themarket, a new approach to process development is required.
Therefore, we will enhance our workmanship in manufacturing
process, ranging from development to production sites to prevent such problems from occurring.
3．
Reduction of waste loss
From the perspectives of environment conservation and contribution to the bottom line of an organization, it is necessary
to reduce waste loss arising at production sites. We will give
top priority to products with high waste loss, and respective
headquarters will provide necessary support to pursue activities related to waste loss reduction.
4. Improving quality control level by utilizing IT
By promoting the digitization of operations, we will streamline
operations and strive not to rely too much on individual skills,
tips, and experience. In addition, we will improve the speed
and accuracy of traceability by further enhancing the digitization of quality records.

NOK CORPORATION

39 NOK CORPORATION CSR REPORT 2021

NOK CORPORATION CSR REPORT 2021

40

Environment

3.Continuously improve quality control technology

Under the chairman-advocated policy“Return to the basics ofquality,”we will be returning to the basics, with the following
four points in place for the three years of making a fresh start
toward ensuring customer-trusted NOK Group quality.

GovernanceBehavioral guidelines

Priority Action Items

Organizational“Putting quality first, we provide services and products with consumer confidence at all stages of research and development, design, production, sales, service, etc.”

Return to the Basics of Quality

Participation in Communities andCommunity Development

The NOK Group has maintained its workmanship in manufacturing
process under the concept“Quality is made in the manufacturing
process.”Since the foundation of NOK, our products have beenused in various fields by many customers with confidence in our
technology and quality. This is the basis of our quality.
With the aim of achieving quality in the manufacturing process, wehave concentrated our efforts in developing human resources who
engage in manufacturing under our philosophy of respecting human dignity. We have a variety of educational curriculums for such
purpose, and recently, we have focused particularly on developing
managers and supervisors. Our efforts are focused on passing the
manufacturing basics on to next generations as experienced senior
employees retire from the manufacturing sites.
In order to earn the trust of customers, it is crucial to consider all
matters as our own responsibility in every department, whether its
the research and development, design, manufacturing or sales departments, and return to the basics to achieve the three-year plan.
Thereby, we will establish our quality.
While it is not easy to communicate between each department
amid the novel coronavirus pandemic, we will strive to return tothe basics of quality by flexibly responding to the crisis which weregard as our chance.

NOK Group Three-Year Quality Assurance Policy (2020_2022)

Quality Assurance

In recent years, we have had a high incidence of natural disasters
and fires that affect steady production and procurement. We areworking to build a system in which we can obtain information on
the damage situation upon occurrence of the disaster and adequately take the necessary measures in cooperation with our suppliers.
In fiscal 2019, we sent a BCM Check Sheet to our suppliers andclarified problems through self-checking. In fiscal 2020, we strived
to build a resilient supply chain while providing guidance on effective measures.
These efforts were effective indeed, the novel coronavirus pandemic did not impact our raw material procurement. We will continuously consider and implement measures to fulfil our responsibilityof supplying products even when a disaster or accident occurs.

Basic Concept

Practices

NOK globally publishes the NOK Group Green Procurement Guidelines, which describe NOK’s environmental policy and green procurement policy. NOK is working to reduce the environmental impact in the entire supply chain in cooperation with its suppliers byasking them to submit cooperation agreements to the“NOK Group
Green Procurement Guidelines”to ensure that suppliers are awareof NOK’s environmental philosophy and policies and that they canprocure raw materials and parts in an environmentally conscious
manner.

Product Quality and Safety

Fair Operating

Promotion of Green Procurement

We at the NOK Group conduct procurement activities throughout
the supply chain in order to ensure that illegal profits are not offered to antisocial forces or armed insurgents who violate humanrights.
In addition, as a member of the Conflict Minerals Regulation Response Working Group in the Procurement and Production Subcommittee of the Japan Auto Parts Industries Association, wecollect information through the Working Group’s activities and implement conflict minerals initiatives in the supply chain.

Labor Practices

In consideration of the importance of co-prosperity with suppliers,
we have made efforts to build a strong relationship of trust and along-term cooperative relationship with suppliers.
For the purpose of fair trading, in September 2016, the Minister of
Economy, Trade and Industry announced“Towards future-oriented trading practices,”an initiative aimed to ensure fair trading andenhanced added value for both the original contractor and subcontractors, thereby improving the trading environment throughout
the supply chain. Furthermore, in December 2016, the Operational
Standards of the so-called Subcontract Act (formally, the Act against
Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors)
and the so-called Promotion Standards based on the Act on the
Promotion of Subcontracting Small- and Medium-sized Enterprises
were revised, followed by the issuance of a notification titled payment means for subcontracting.
In addition, the Japan Automobile Manufacturers Association and
the Japan Auto Parts Industries Association have formulated andannounced the Initiative for Promotion of Fair Trading and Enhancement of Productivity-Added Value.
In response to these initiatives of the government and industry, weat the NOK Group hold a seminar which covers key considerations
for persons involved in procurement and patterns of act that could
be considered problematic as well as guidelines on how to deal
therewith. We also make these matters universally known to practice fair trading.

Efforts to Deal with Conflict Minerals

Human Rights

Building Relationships of Trust with Suppliers(Coexistence and Co-prosperity with Suppliers)

Quality AssuranceSociety

Quality Assurance

To diagnose the quality assurance system

In order to continue to supply products that meet the needs of ourcustomers, NOK has established and operated a quality management system based on international standards such as ISO9001,
and is working on continuous improvement.

Management process

Horizontal ties within the NOK Group to ensure mobility

Quality Control Department Managers’Meeting

Communication

Quality Control Department Managers’Meeting

Product realization process

Customers

Order receipt

Design prototype

Trail mass
production

Initial mass
production

Mass production

Customers

DeliveryField quality

Judgment at quality gate

Mass production process
improvement

Customer satisfaction

Field quality monitoring
activities

Special quality evaluation
meeting

Nonconformity Reduction
Activities

Commendation by customers

Education / training

SuT Program

Human resource development

Development of administrators and supervisors

Motivation

In-house Quality Award System

Revitalization of the workplace

QC circle activity

GovernanceDomestic Group Companies

Overseas bases

Quality Control Office
Quality Officer

Taking advantage of field quality data

Quality Control
Department
Managers’Meeting• Deployment of bestpractices

Divisions

Factory

Quality Control Representative

Quality Control Representative

Environment

President

QA review

Formulation of a QA activity plan and applicationof it to each department
and each manufacturingsubsidiary under control.

Quality Assurance Review

Support process

Quality Officer

Quality Control
Representative

Audit / review

Organizational

Quality Assurance System Overview

Quality Assurance Activity Plan

Participation in Communities andCommunity Development

In this way, group companies in and outside Japan closely exchange information on the quality management system in an effort
to ensure that NOK’s products have a uniform level of quality on a
global basis, thereby enhancing customer satisfaction.

Policy deployment

Quality Assurance

Quality managers from domestic and overseas group companies
gather regularly to exchange information on the year-by-year development of priority implementation items and the activities status ateach site. This occasion provides gathered managers of operation
bases with an opportunity to not only share good activity cases
presented by other bases, but also to share lessons learned fromtheir activities. Recently, we conduct online meetings due to thenovel coronavirus pandemic.

We have expanded the NOK quality assurance policy and quality
targets to cover all business divisions, and each business division
has formulated its QA action plan. In the QA action plan, priority
action items and target values for achieving the quality goals areset, and these are concretely reflected in the operational implementation plan of each department, with all departments engaged
in quality activities. Its performance is evaluated through QA diagnosis and management reviews of business divisions, which leads
to effective and continuous improvement.

Control over the functions
involved in quality assurance, such as planning, coordination and promotion

Overview of quality improvement activities

Practices

To conduct quality activities by all departments

Quality Assurance Activity Plan (QA Activity Plan)NOK is making unique efforts to improve quality in each of processes from order receipt up to delivery.

Fair Operating

Quality Assurance System
At NOK, the Quality Officer also acts as a control center for thefunctions associated with quality assurance, such as planning, coordination and promotion for group companies’products. We develop a quality assurance activity plan (QA Action Plan) in line with
the NOK quality assurance policy, and conduct quality assurance
diagnosis (QA diagnosis) on site in a systematic manner.
In addition, the domestic mother factory takes the lead in supporting the launch of overseas production transfers, promoting quality
priority implementation matters, and solving quality problems. The
Quality Control Office is also involved in important matters associated with the above operations, striving to ensure smooth implementation of such operations.

NOK’s Quality Officers conduct on site QA diagnoses. Specifically,
we diagnose whether an implementation plan has been formulated based on an understanding of the intention of the policy andwhether quality improvement activities are effectively implemented.
In recent years, we are working on weaknesses by conducting production-site-driven diagnosis.

Labor Practices▶For details, please see page 3 of the ESG Data Book

Policy/Decision Making

Quality improvement activities

Quality Assurance Diagnosis (QA Diagnosis)

Human Rights

Quality Management System• Sharing of lessons
learnedField quality monitoring activities
NOK uses field quality data to regularly monitor for anything that
could lead to significant market complaints. This activity is called
MFQ* activity, and is managed in a database and enables the analysis of field quality data. This activity also leads to improved productquality. If we are successful in exploring an improvement based on
our past achievements and/or the results of surveys and analysis,
we suggest an improvement to our customers and work in collaboration with them.

Overview of field quality monitoring activities
Field

Customers
Proposal of improvement measures

Collection of actual products for survey

Sales department＊ MFQ: Monitoring Field products Quality• Grasp of customer
information• In-house information
development

As a mother factory
Production
Subsidiaries• Product transfers and launch of overseas production• Support for quality assurance activities• Promotion of priority issues

Database

Technology department(business division)• Actual product survey• Examination andimplementation of
improvement measures• Accumulation of our unique
technology

41 NOK CORPORATION CSR REPORT 2021

Quality assurance
department• Early detection ofabnormality by data
monitoring and analysis• Selection of survey target
products

NOK CORPORATION CSR REPORT 2021

42Society

Quality Assurance

The Quality Officer decides the adequacy of putting a newly developed

Special quality evaluation meeting

Articles of Quality Awards posted in company newsletter

Advancedcourse(Specialized
course)Response surface
method Weibull
analysis DRBFM etc.

Intermediate
courseMultivariate analysis
Design of experiments KT
method, etc.

Introductory course

Seven QC tools QC story
Root cause analysis, etc.

年度

最優

品質表彰制度とは部・課レベルでの改善活動
品質改善活動をより活性化に対する努力や実績を評価する制度です。
させるため、2008年度にスタートしました。
2020
年度 優秀賞受賞部門

NOK優秀賞 NOK
事業推進本部
NOK樹脂・ウレタン物流部 富士物流管理課
事業部 製造部EKK 優秀賞 EKK
製造一課
舶用事業部 製造部
呉製造課 シールリング係
MEK優秀賞 Mektec
Manufacturing
Mektec Manufacturing Corporation (Thailand) Ltd.
〈MMCT〉前工程製造部
Corporation (Suzhou)
SZT 優秀賞 Synztec
Ltd.〈MMCS〉実装製造部
Vietnam Co., Ltd.
GC製造三課〈VNH〉製造一部
CR課

PT. NOK Precision Component

製造部 樹脂部品

Batam ＜NPCB
＞

製造課

。二本
企業です ルな部の衛星 イルシー 社
ール事業 BPS）やオ 業株式会
わル工
オイルシ ール（に関シー）はNOK ストンシ る二本松
部のBPS
た。
トピ
（NNK
事業
まし
であ
ール
更し
株式会社 し、ボンデッ 3 月に前身
。
ルシ
名変
NOK
オイ
に社
年
所在
職場です 工
社と
会社
二本松
2012
式会
株式
の構内に います。
較的多い 大所帯。
ル株
松NOK
メタ
松事業場 を行って業員が比 名という
、二本
NOK
りの原
規従
124
され
月に
生産
4
集約
ものづく
どの
1年
で、非正 は、総勢い中で、立。202 ・管理部門が 4 月時点） 製造一課
が設
1年
部
化点が多
術・製造 名（202BPS製造 えなど変
る技
た
804
は
れ替
賞し
ました。
従業員数 秀賞を受 、人員の入を推進し今回最優 受注変動 」活動
設や「キの
場棟の建 返る 基本
点に立ち
う状態で
ふやとい 手。同❸系があや り に着 がら
活動
向上
づくり
る教育体
品質
組みづく を重ねな組み
ラ
者に教え で 教育の仕検討の仕作業など、 に教育プログ 。
教育
主導
）
にそれを
成室
考にする
層別
しました
も、実際 （人材育ラムを参 ・係長の階 めて実施
加
ター
了して
ました。
育プログ
が完
者・職長
部署を決
教育セン
整備
化も進め 、時間、ポ
他社の教NNK者・段取 教育担当
標準
そこで、書の動画 的や流れる異業種 、新人・作業 ムごとの手順した。 地内にあグラの目
錯誤の末 心に、プロす。
紙の作業 とで、作業
試行
て、
じ工業団
。
していま
した
ターを中 グループに
にするこ
した。
クルを回
推進しま 。教育セン
改善
順を動画 ようになりま PDCAサイ
教育
してムを設計 製造部の で、一連の手 えられる
継続
、
BPS
く伝
業ま
上げ
また、 ら検査作
かりやす 点を吸い
業か
着
細かつ分 望や改善
硫作
袋に付
ーで手
などを詳 ートで要いますリーナ
イント のアンケ
れを行
粘着ク
毎日こ
施。まずは間中は
受講者へ

品質表彰
受

MEK

最優秀賞

賞

練を実 。実習期
での訓
レス機 いていきます
は、模擬プ 環を置
生地と
えた後
位置へ
業を覚
所定の
見て作
去し、
動画を
物を除
した異

部

門

発

Inte

久喜ロール工業株

式会社 製造部

製造二課

※1

購入か
て記載 潜在的、部品の 流れに沿っ材料・の略で工程の Analysis
品の原
1 つの製や管理方法をEffects
理特性 Mode andeFailur

※2

品質

向上

活動

5Sと

❷

3定

e
Befor

「清
掃」
「清
頓」
「整
「3 定」
、
理」
「整
と。一方
とで、
5Sとは
」のこ
量」のこ
「定
めら
「しつけ
品」
潔」
「定
「定
位」
する際、 を「定とは「定 物を管理れた物」
あらゆる 」に「定めら を指します。
、
れた場所 量」置くこと
を目指し
現場
3 定を
められた きれいな
5Sとり、
すっき 表に沿って、
た。
計画
しまし
推進
推進
的に
計画

After

置き場
業台。
いる作
せん
されて
ありま
が実践
3 定管理ていない物は
決まっ

清掃が
整頓・
場
整理・
いた現
行き届

June

所が

5

2021

SZT

ESM株式会社
June

4

秀賞

S一課

NO
K
ME ・EKK・

K・
20w S
r v i e 20 年度 ZT

表る・守める・教え ます。
「決
思い
と、
て
緯を見る かったようにつき、そし ての経苦情
きていな 育のバラ を守りたくで今までのせる」がで さや、教たことし、皆る・守ら 分かりにく れ、決め 問題に対備が課書の応に追わ 。そうした き（加硫設 く
に、
標準
製造一
産対
造部
の生
環境をつ
、 口開
情を教訓
二本松
況でした
課長
BPS製
NOK
では
に
弘樹株式会社 BPS 日々 れない状 を重ねていき安定した職場
大きな苦的なもの を
りの原点
製造部
菅野
も守
い
改善 一課
BPS
一時
活動
局
ずつ
ものづく 基本を忠態）のな 善活動は 人一人が
事務
一つ
、
た状
職場に
より
た。改 です。一
活動
立ち返り
いける
放置され きまし
「キ」
最優秀賞
がで
とが大事がら成長して
一
基本の
ること
皆で
するこ 感じな
する
継続
した。
実に実行
なく、 やりがいを
んできま
、
ていった
。
通して
います
に取り組
積み重ね 1 件のみ
育を行
善を
いと思
人教
情
した
に新
つ一つ改 年度は苦
れま
を繰り返
わ
2020
毎月のよう じこと
果が得ら
結果、多く、 は毎月同 職長に「教
大きな成
ものづく
ほし
れ替えがる側として
長や
りの原点に
さ
の入
、係
という、
、
り組んで で、すが人員とでます。教え ので持ちで取 当に大切減したこした。 立ち返り向けってい ばならない 新鮮な気
は本
して
教育
苦情が低
課
ば、そ く
制強化に
々の
さなけれ になって、また、 「キ」
製造一
基本の
ます。
で働
が分かれ
た。日
造部
質保証体活動で副課長化してい のず
BPS製る側の身 えてきまし 物の価値 、同じ職場
らなる品
一雄
いる
えて
みも活性 大所 帯で
現場力向
れば、おの
佐藤
い」と伝 が作って 違いを超
や現
上
いう
た取り組
、決
教育
していけ
自分たち 用形態の 観を共有
からも いと考124 名と
の推進は
これ
課員
や雇
活動
けれ
立場
しょう。
ていきた
その価値
「キ」
でしょう
いくで
く伝え
基本の
り組
仲間として
ではない
向上して 、根気強なって取して容易と品質も どを通して
体と
にも
が主
回な
力の向上
場巡
。
ど、現場
で、現場
えています
んだこと
ました。
がり
つな

最優秀賞

定着ロール製品の不適合低 減活動
プロジェクト

部 BP

り
はあ
向に
少傾
に減
ーク
をピ
んで
苦し
8 年度
合に
不具
加。201
シール
品質
が増
件数
・オイル
。長く
苦情
ます
から
推進本部
誇り
ごろ
した。 シェアを室・事業
7 年度
しまいま がトップ
、201
品質管理
伴い
生させて で、NOK
らNOK
げに
ち上
年 1 月か 。
苦情を発 要な部品
の立
品目
2020
した
ランクの 非常に重
と、
新規
A
ない
産や
トさせま
」活 動
11 月に いられる
掛けられ をスター
BPSの増 、2019 年
の「 キ
に用
速機
に迷惑を
基本
」活動
ましたが 動車の変ン〉
お客さま 基本の「キるーガ
らせBPSは自 が、これ以上 改善活動
〈 スロ 守る・守る・
きました 共同で、品質
る・教え
ト〉
決め
セプ
事業部と
❶
コン
活動
る
程
向上
〈 活動
整備
かせ
品質
を向
表の
ば加硫工 し、
方向
る
しか
す。例え
QC工程
善す
1．同じ を整えるなど。
く改楽し
素がありま ミング
そも2．組織 て見せて
る）
ず、そも
ざまな要
浄するタイ
育て
書を
に、さま 金型を洗 記されておら3．やっ善の芽を
標準
むの
作業
間、
と明
（改
に着
くり込
温度と時 ※ 1 にきちん QC工程表は 表の整備
ンセプト
品質をつ
。
た。
は、加硫 工程表
ンとコ 育」「設
QC工程 施しました
QC
スローガ 」「教 組みにおいてもありまし 製品の
不
を実
上記
整備
要素が
いライン 。まずは全 見える化 2「標準
いて品質」に取り 準
これらの
※ を用
の下、
ます
表すらな
「型改善 では「標工程表の FMEAQC工程 ための基となり て QC
備改善」種とまと いてご紹
もの
、工程
開し
た。
につ
620
する
基に
た。
で公
た
まし
育」
作成
DB
表を
い、
しまし
と「教
化してい かりやす
その後 たQC工程整備」
スター法を検討 され形骸
手し、
す。
啓発ポ
が分
活動の
、整備し
介しま
い管理方 中で作成
施。誰も
「キ」
さらに
基本の
発させな
ない
直しを実
る管
具合を再 QC工程表が 内容の見
におけ
離と
た。
、各段階
その後、 書の断捨
しまし
工程で
までの
標準
りを目指
される
こと。
作業
て出荷 と。
解析の
準 づく
品とし
のこ
ら完成
した表 故障モード影響
生きた標

NOK

樹脂ランプ品目の外観不適合低減活動BPS

製造部・技術部

EKK

最優秀賞

2021

6

多量流動品目・高不適合率品目の不適合対 策June 2021

June 2021

3

Article published in the NOK Group newsletter“Tanetomato”

Commendation by customers
We have received favorable evaluations from our customers interms of actual quality achievement and improvement activities.
In FY 2020, we received 15 commendations concerning quality.

Road for Qualification for the Group Convention
NOK Group QC Circle Convention

During online education

ＮＯＫ
Domestic
bloc

Overseas
China block

OverseasSoutheast Asia
block

Group
Companyblock

2 circles

2 circles

3 circles

1 circle

Total of 1,219 circles

43 NOK CORPORATION CSR REPORT 2021

NOK CORPORATION CSR REPORT 2021

44

Environment

Overview of SuT Program

2020

製造

返り
K株式
立ち 向 上松NO
点に二本の原 で 現 場力づくり
動
もの 「キ」活
の
景
の背
基本
活動
会社

Governance

The NOK Group encourages employees toform quality control (QC) circles: autonomous
small groups that engage in quality improvement activities.
These QC circles also provide a place for theirmembers’growth and personality development through activities in which all the members of each circle endeavor to solve the matters they deal with in
the workplace, which also leads to revitalization of the workplace.
While NOK Group companies hold activity presentations every
year, we were forced to conduct the screening of application materials due to the restricted people flow cased by the novel coronavirus pandemic in FY 2020. A total of 1,219 circles participatedin the presentations from Japan and abroad. Three circles in Japanand five circles from abroad, which had been selected through anactivity presentation held at each company, took part in the NOKGroup QC Circle Convention. There, they reported the results of
their activities through their own QC stories, and the best QC circle
was selected.
This convention marked the 68th convention in the 57 years since
the first convention in 1963. In the NOK Group, QC circle activities
are extensively conducted at many of our operation sites and groupcompanies in Japan and abroad.

Organizational

expedites the solution of problems.

QC circle activity

Participation in Communities andCommunity Development＊ SuT is an acronym for Speed-up Tools of problem solution, meaning a tool that

Growing activity overseas

Quality Assurance

NOK strives to reduce nonconforming products to improve quality and cut back on waste. In order to avoid causing trouble tocustomers, we need to cautiously avoid producing nonconforming
products in relevant processes. To that end, we undertake a seriesof actions under which we, from the outset, take measures against
one single phenomenon of nonconformity until the product becomes free of such phenomenon. Then we replicate the process foranother phenomenon until the phenomenon no longer occurs forthe product. In this way, we conduct a one-by-one check up until
nonconformity is precluded at all stages. The Zero Nonconformity
Initiative is promoted for a multitude of themes at operation sites
on a yearly basis. It has gained a foothold and become independent
at group companies in Japan and abroad.
Basically, this project requires the repeated observation in the gemba (on site), gembutsu (actual thing) and genjitsu (actuality) stages,
and verification based on a mechanism. It has helped employees
develop their abilities to solve problems on site. Regarding mechanisms,

NOK provides quality control education for each level of the organization. Among others, in the field of problem-solving, we have been
advocating the importance of logical analysis and improvement
based on facts and data under the motto“Let’s say something withdata,”which is a hallmark QC-oriented way of thinking.
Recently, in the field of problem solving, speedy response is required. To meet such needs, we hold the SuT* Program with a focus
on diffusing the use of tools that will help speed up problem solving.
In early days of its launch in 2001, we had only eight courses forthe technology department. Since then, the program coverage has
expanded to include people from the manufacturing department
and group companies. Since then, we have come to learn peoples’
education needs for more fundamental knowledge as well as advanced techniques. At present, we have more than 20 courses frombasic“QC seven tools”to“multivariate analysis”and“design of experiments,”and we have organized a curriculum so that advanced
methods can be learned through practical exercises.
Driven by restricted people flows due to the novel coronavirus pandemic, we introduced quality control education using online training courses in FY 2020. In addition, in FY 2021, we will improve theeducational environment for those who wish to learn at any timeand in any place.
SuT is pronounced as“satto”in Japanese. Many employees who
participated in the course have applied the methodology theylearned to various improvement activities, such as QC circle andnonconformity reduction activities.

The NOK Group has an in-house quality award system in place forthe purpose of boosting quality improvement activities and enhancing motivation. Under this system, we encourage all employees of
NOK Group companies in Japan to apply for the system in unitsof their nearby action group or organization in order to raise theirawareness of quality. Once every six months, we commend organizations that have actively promoted quality improvement activities
and have achieved excellent results. Articles on the outstanding
improvements they have achieved appear in company newsletters.
The previous award-winners include the logistic departments arm
as well as the production division, which indicates that the system
is used to help create a work environment where all departments
directly or indirectly make united efforts to promote quality improvements.

Practices

Activities to reduce nonconforming products inconjunction with an understanding of the mechanism thatcauses such nonconformanceLet’s say something with data.

Improvement activities through quality control educationand practical operations based on Quality Controloriented thinking

At NOK, we are working on the Quality Dojo as a place to develop
human resources who can convey, practice and instill quality-first
thinking in their daily work.
Each division has quality trainers (Quality Dojo Masters) who run
the Quality Dojo training center and provide disciples with training
and education. Disciples who have graduated from the Dojo are responsible for providing guidance and training to their subordinates
as their daily routine in addition to their own quality as primary
duty.
Now that 10 years have passed since the Quality Dojo was established, the training curriculum has been improved to meet theneeds of each business division and group company.

In-house Quality Award System

Fair Operating

Activities Not to Make Nonconforming Productst＊ Fault Tree Analysis, a method of failure and accident analysis

What organization will be chosen as the company’s representative this year?

Quality Dojo initiatives

Labor Practices

In ensuring the delivery of stable-quality products to customers,
NOK engages in problem prevention activities, in which we divide
the development of a new product from design to production into
three stages: 1) Design prototype, 2) Trial mass production, and 3)
Management of initial mass production. We have criteria in placethat warrant us to move on to the subsequent stage so that we cansolve any problem at an early point.
In particular, for products that involve new development, a“special
quality evaluation meeting”is held at each stage for members fromthe responsible business division and relevant offices to conduct
design review, and the Quality Officer makes the decision to moveto the next stage.

Passing down“quality first thinking”

Human Rights

product into mass production.

the results of the verification are represented in an FTA* to be managed as a unique technique for use in the future.
As a new initiative, we have started the study of a failure-solving
method using AI.

Society

Participation in Communities
and Community Development

Expenditures for Social Contribution Activities and Percentage
by Field (FY 2020)

Basic Concept

Local Community
Activities/ Traditional

The Environment

2.0%

Culture Conservation

3.9%

Education

31.5%

8,189

Unit: 10,000 yen

28%

Participating in blood donation events, the Ecocap activities and medical assistance, sponsoring sports
events, and supporting school sports events

Crime Prevention /Disaster Prevention

Participating in crime prevention activities, traffic safety activities, traffic safety patrols and disasterprevention activities, and disaster relief payments

Social Welfare

Making donations to the Red Cross and social welfare corporations

Local Community Activities /Traditional Culture Conservation

Sponsoring local festivals, making donations to shrines, donating goods to the neighborhood, andinviting local residents to festive events at the plants

Environment

Participating in local cleanup activities, tree planting activities and activities for water purification by
utilizing paddy fields, and recycling

45 NOK CORPORATION CSR REPORT 2021

■ Accepting Interns from Universities andTechnical Colleges
NOK is actively providing opportunities for students to gain work
experience at a variety of workplaces within the company, withthe objective of human resource development through industryacademia cooperation.
FY 2020

Humanitiesstudents

Sciencestudents

Total

Participants in twoweek internship program(university students)

0

10

10

Participants in twoweek internship program(technical college students)

0

2

2

Participants in long-term(2-4 months) internshipprogram0

1

1

At a Kumamoto Volters game

PlantsProfessional sports teams wesponsor/support

Fukushima Plant

Fukushima Firebonds

Shonan R&D Center

Shonan Bellmare

Tottori Plant

Gainare Tottori

Kumamoto Plant

Kumamoto Volters＊ The environmental management system formulated by the Ministry of the Environ-

Crime Prevention / Disaster Prevention
As a company that manufactures automotive parts, NOK is focusing
on activities that promote safe driving and prevent traffic accidents.
In FY 2020, the NOK Fuji Branch office (Sales Office and Logistics
Center) was selected as a safe driving management promotion office among the member companies of Fuji Area Safety Driving andTraffic Education Association. Throughout the year, the company
promoted traffic safety activities and supported the activities organized by the Safe Driving and Traffic Education Association.

ment

Environment

NOK is committed to providing educational support to the next
generation, who will shape our future.
Since FY 2015, we have been sponsoring the NHK Student Robot
Contest hosted by NHK and NHK Enterprises, Inc., as well as the
ABU Asia-Pacific Robot Contest hosted by ABU (Asia-Pacific Broadcasting Union), to do our part as a manufacturing company to encourage future engineers. And in FY 2019, we also started sponsoring Robocon for Elementary School Students, hosted by NHK
Enterprises, Inc. and the Science Museum, to provide children witha chance to learn about the fun of making things.
In 2008, we started sponsoring the Student Formula SAE Competition of Japan hosted by the Society of Automotive Engineers ofJapan, Inc. We support students by providing oil seals and O-rings
to participating schools.
Furthermore, starting in FY 2019, we have been sponsoring the
Nikkei Education Challenge, hosted by Nikkei Inc. At this career-oriented educational event for high school students, company workers serve as lecturers. They talk to the students about their real-life
experiences, sharing with them the fun of working and the passionthat they have toward their work. In FY 2020, NOK dispatched an
employee to serve as a lecturer.

Holding a remote workout

Governance

Health / Medicine / Sports

Organizational

Accepting internship participants, granting scholarships, and supporting events for next-generation
development and school events

The environment is undergoing major change due to a variety ofproblems on the planet, including climate change and the impact ofmarine plastics on ecosystems. The NOK Group is implementing avariety of initiatives both domestically and overseas to hand down
the beautiful natural environment to the next generation.
Since fiscal 2019, the Shonan R&D Center has sponsored theEcology and Eco Action 21* activities promoted by Enoshima
Aquarium (Enosui). In addition to supporting surveys and research
related to biodiversity and the environment in Sagami Bay, as wellas conservation activities such as regional beautification and waste
reduction, we are also actively participating in beach cleaning
activities.
And in FY 2020, staff members from the Fukushima Plant volunteeredin the Umigomi Zero Week activities held to reduce marine debris
and also did volunteer work in gathering aquatic plants from Lake
Inawashiro (umigomi is a combination of the Japanese words for
ocean (umi) and waste or trash (gomi)).

Participation in Communities andCommunity Development

Academic / Research / Education

Environment

Quality Assurance

25.4%

Content Example■ Supporting events to help develop the next
generation

The noyaki is a seasonal springtime tradition in Aso area.

Medicine / Sports

Category

Academic / Research / Education

Before the noyaki, with the Kumamoto
plant in the background

Health /Crime Prevention /Disaster Prevention

NOK Group’s Social Contribution Activities

Practices

9.2%

Aggregate total

NOK Group’s domestic plants and overseas companies regularly
conduct cleaning activities in the areas around those plants or companies. In FY 2020, employees working at the Kumamoto plant participated in the noyaki volunteer activity. Noyaki aims to conserveand restore the grasslands of Aso, which create unique landscapesand are home to a wide variety of plants and animals. Employeesof the Kumamoto plant participate every year to protect the vastand beautiful prairies.

Fair Operating

Social Welfare

Academic /Research /NOK supports athletes in order to contribute to society through the
dreams and inspiration that sports can provide to people. In April
2019, the company hired Rintaro Okubo, a competitive swimmer,
through the Athlete Navigation System (Athnavi), a program runby the Japanese Olympic Committee (JOC) that offers job searchsupport for top athletes. In October of the same year, we also
hired Yukina Hirayama, a competitive swimmer. While continuing
to strive at their competitive activities, both athletes plan and holdremote workouts to promote our employee health. We launchedthis remote workout in FY 2020 to help prevent the spread of novel
coronavirus.
We also support the activities of professional sports teams, as weshare in their vision of achieving a prosperous coexistence with thelocal communities and society. Moreover, the NOK Group’s plants
in Japan and overseas companies provide support to local elementary schools, junior high schools, high schools, and sports clubs,
such as by offering the use of our gymnasiums and playgrounds.

Labor Practices

As stated in the Principles of Corporate Behavior in the NOK Charter of Corporate Behavior, we seek to actively participate in society
and contribute to its development as a good corporate citizen.
In particular, local communities are important stakeholders of the
NOK Group. We place importance on maintaining good communication with local communities in order to be a company that is
loved and trusted, and to make the communities feel proud of us
while growing together with them. We are also conducting a variety
of social contribution activities, and as part of our efforts in CSR, we
are focusing on participating and sponsoring programs related tothe education of our next generation.

Local Community Activities/ Traditional Culture Conservation
Human Rights

Social / Local Area Activities

Health / Medicine / Sports

Participation in beach cleanup activities

Social Welfare
In FY 2020, as the novel coronavirus pandemic caused a shortage of hygienic products, the Fukushima Plant donated non-woven
overall, hygienic gloves, and masks to the city of Fukushima.

NOK CORPORATION CSR REPORT 2021

46

Governance Report
GovernanceCorporate Governance

Human Rights

NOK Charter of Corporate Behavior
We, NOK CORPORATION, are committed to being an entity that fulfills the role of driving efforts toward the realizationof a sustainable society according to the Management Principles under the NOK spirit. We will pursue this throughdeveloping the Management Policies in such a way that all our stakeholders are proud of us and chase their dream

Corporate GovernancePrinciple10

Consult

Nine directors (including
two external directors)

Oversight

Appoint / Supervise

Discussion ofimportant mattersand reporting on theexecution of business

Audit・
ReportFive auditors (including threeexternal auditors)

Appoint / Remove
ReportInformation
Exchange

Accounting Auditor

ReportConsult

Internal Control Audit
Committee

ReportChairman and President / Representative Director
Management Meetings andManagement Reviews

Check the progress status of business plans, management
policies and operational plans

Central Labor Management Council,
etc.

Explain or discuss business plans, important organizationalchanges, management policies, etc

ReportDirectHead Office Divisions

DirectDirectReportRisk management, compliance, quality andenvironment management, etc.

Audit

３．
The Management has to run the Company while making
absolutely incredible efforts against all odds and risks.
４．
The Management has to run the Company while pursuing
dreams with management plan.

２．
We are committed to be a profitable and robust company
while fulfilling company-wide cost reduction programs
ranging from front-line sales to manufacturing floor.
３．
We are committed to continuously improving our quality
while producing and selling our products that are provento be technologically unique and socially useful, on a
global scale.

Principles of Corporate Behavior
１．
Provision of Socially
Useful Products

We will develop and provide socially useful and safe products through the creation of new value, and provide pertinent information regarding products and have sincere dialogues with end users and customers while also working
to achieve sustainable economic growth and solve social issues, thereby gaining their satisfaction and deeper trust.

２．
Fair and Appropriate
Trade

We will ensure that we engage in fair, transparent, and free competition, that transactions are appropriate, and that
responsible procurement is carried out, when selling products and purchasing materials. Also, we will maintain asound and proper relationship with political bodies and government agencies.

３．
Proper Disclosureand Management ofInformation

We will disclose accurate information about the Company timely and appropriately, and have constructive dialogues withthe various stakeholders who surround our business in order to increase the corporate value. Also, we will protect andproperly manage personal and customer data and other types of information as well as intellectual property rights.

４．
Thorough Risk
Management andSeverance of all
relations with Antisocial
Forces and Groups

We will resolutely provide systematic risk management to prepare against activities of antisocial forces, terrorists, cyberattacks, natural disasters, and other elements that threaten the lives of the public and business activities. Especially
we will resolutely confront any antisocial forces or groups and sever all relations with such groups.

５．
Commitment toEnvironmental
Conservation

We will proactively initiate environmental conservation activities while taking into account the fact that commitment
to solving environmental issues is a prerequisite for a company to engage in business activities as a going concern.

６．
Promotion of Social
Contribution Activities

As a good corporate citizen, we will actively participate in communities and contribute to their development.

７．
Cooperation with theInternational Community

As a global corporation, we will comply with laws and regulations of the countries and regions where our business
operations are based , and respect human rights and other international norms of behavior (ex. prohibition of childlabour and forced labour). Also, conduct business by taking into consideration the local culture and customs as wellas the interests of stakeholders, and contribute toward the development of the local economy and society.

８．
Respect for Human
Rights

We will carry out management that respects the human rights of all people.

９．
Provision of a Safe andComfortable Working
Environment

We will realize a work style that enhances the abilities of employees while respecting their diversity, character andpersonality, and by drawing a line between public and private matters, and maintaining order in the workplace, we willrealize a comfortable working environment that takes cleanliness, health, and safety into consideration.

１０．
Responsibilities of Our
Officers

Our officers, while carrying out management with the recognition that it is their role to realize the spirit of this Charter,
will establish effective internal control systems, and will take the lead in an exemplary manner to implement the Charterwithin the entire NOK Group, while encouraging our business counterparts to act in a manner consistent with this Charter.

１１．
Response to Problems

In the event that a matter in noncompliance with this Charter arises, which causes society to lose trust in us, ourofficers will take steps such as taking the lead in solving the problem, identifying the cause, and taking measures toprevent the recurrence of similar problems, thus fulfilling their responsibilities. Moreover, they will publicly disclose
relevant information promptly and appropriately, fulfill their accountability requirements, indicate those who are inauthority and those who are responsible, and severely punish those involved, including themselves.

Environment

Management OversightCouncil

Appoint / Remove

２．
The Management has to run the Company while uniting
to ensure full ventilation without forming any cliques.

１．We are committed to be a strong and unique parts
supplier while focusing its managerial resources on corebusiness areas.

GovernanceAppoint / Remove

１．
The Management has to run the Company based on
feelings of love and trust in its employees.

Management Policies

Operating Divisions / Group Companies

47 NOK CORPORATION CSR REPORT 2021

NOK CORPORATION CSR REPORT 2021

Organizational

Shareholders’Meeting

Management Principles

Revised on July 1, 2019

Participation in Communities andCommunity Development

Corporate Governance System

Enacted on May 1,2006

Quality Assurance

NOK has adopted the format of a company with a board of corporate auditors. In order to develop and provide products andservices from the customer’s perspective in a business environment where technological innovation and the needs of end users
are rapidly changing, we believe it is important that directors who

rules as well as the spirit behind those, and discharge our social responsibility with a strong sense of ethical values.

Practices

Corporate Governance Systembehave according to the eleven principles set forth below in the Principles of Corporate Behavior in both domestic

Fair Operating

The NOK Group aims not only to contribute to the development of
economic society by creating added value through fair competition,
but also to become a company useful for the society at large by
promoting management that can make all stakeholders proud of
the company and continue pursuing their dreams together. We also
promote a management plan to secure economic growth with stability and strong growth in revenue over the medium to long term.
For this reason, the NOK Group considers continuously strengthening the corporate governance system as one of our business management priorities, and we are committed to this goal.

useful, generating employment, and acting autonomously and responsibly. In order to achieve this realization, we will
and overseas operations, so as so respecting human rights, complying with related laws, regulations, and international

are well-versed in business operations be involved in making key
management decisions. From this point of view, the directors of
the board who concurrently serve as executive officers cooperatewith each other in the execution of their duties, while directorsof the board, including external directors, mutually monitor eachother and the corporate auditors, including external auditors, audit
management. The Board of Directors and the Board of Corporate
Auditors, which include personnel from outside the company, arethe key to strengthening the checking function.
In order to improve objectivity and transparency regarding nomination and remuneration, the Board of Directors has establishedthe Management Oversight Council with key members from outside
the company as an advisory body to the Board of Directors, which
regularly confirms important matters such as nomination and remuneration and provides appropriate advice to the Board of Directors.
In addition, significant management risks are checked and assessedat the Management Oversight Council periodically.
The Internal Control Audit Committee, an advisory body to theBoard of Directors, periodically audits systems that ensure the appropriateness of NOK’s and its subsidiaries’operations in accordance with the Internal Control Regulations, and reports the results
to the Board of Directors and the Board of Corporate Auditors.

Basic Concept

with us; and, while upholding the principle of fair and free competition, through creating added value that is sociallyLabor Practices

UNGC

48

GovernanceCorporate Governance

Established the Crisis Management Office

Preventing and minimizing negative impacts on business continuity.

2006

May.

Enacted the NOK Charter of Corporate Behavior.

Enacted and declared Management Principles, Management Policies, andPrinciples of Corporate Behavior.

Aug.

Enacted the Behavioral Guidelines Concerning Employee
Compliance.

Enacted and disseminated guidelines on matters to be complied with byemployees.

2008

Jan.

Established the Internal Control Audit Committee

Development of an internal control system, audit of its operational status andproper maintenance.

2009

Jun.

Introduced the Executive Officer System.

Separation of management oversight and executive functions, and theestablishment of an agile management system.

Changed the term of office of directors to one year.

Separation of management oversight and executive functions, and theestablishment of an agile management system.

Revised the executive compensation system.

Introduction of long-term performance-based and performance-linked
compensation system.

Established the Risk Management Committee

Minimizing risk probability and losses through cross-organizational verificationand evaluation.

2015

Jun.

One external director took officeStrengthening the management oversight function.

2016

Apr.

Installed a whistle-blowing system (including domestic groupcompanies)

Created a whistle-blowing system by establishing the Whistle-Blowing Hotline(in and outside of the company)

May.

Started assessing the effectiveness of the Board of Directors.

Improving the effectiveness of the Board of Directors

Jun.

Increased the number of external directors to two.

Strengthening the management oversight function.

Oct.

Established the CSR Committee

Raising the awareness of CSR throughout the company and promoting
effective CSR activities

Established the Central BCM Committee

Increasing the effectiveness of the business continuity plan and contributing to
the improvement of corporate value.

2019

Jul.

The Management Oversight Council (composed of the President
and Representative Director, external directors and auditors).

Check, assessment and advice on key management issues and serious risks.

2021

May.

Established the ESG Committee

Promoted the company’s continued sustainable growth and theimplementation of responsible initiatives

49 NOK CORPORATION CSR REPORT 2021

The NOK Group appropriately implements the“System for Ensuring the Propriety of Operations (Basic Policy for Internal Control
System)”established in accordance with the provisions of the Companies Act, and is committed to establishing its system under thebasic policy of continuing to strengthen corporate governance inaccordance with the Corporate Governance Code stipulated by the
Tokyo Stock Exchange.
Specifically, the company has established Internal Control Regulations based on the Basic Policy for Internal Control System. NOK’s
Head Office Divisions provide rules for the internal control system
and give directions to NOK’s operating divisions and subsidiaries,
while the Internal Control Audit Committee periodically audits theinternal control system to determine the progress of improvement
and implementation. The results of these audits are reported oncea year to the Board of Directors. During FY 2020, there were no
legal violations or lawsuits that could have seriously affected thecompany’s performance.

Compliance with the Act on Prohibition of Private
Monopolization and Maintenance of Fair Trade, Actagainst Delay in Payment of Subcontract Proceeds, Etc. to
Subcontractors and the Unfair Competition Prevention Act

Communication with Shareholders and Investors
The NOK group holds two financial results briefings every year,
one in May for annual results and another in November for interim results. Securities analysts, institutional investors, research institutions, journalists and financial institutions are invited to thesesessions, where we explain the financial results and forecasts, andalso respond to questions. Presentation materials used for financial
results briefings are available at NOK’s website. In addition, fromthe standpoint of fair disclosure, NOK participates in events for individual investors every year. NOK refrained from participating in theevent in FY 2020 to help prevent the spread of novel coronavirus.

Based on the Principle of Corporate Behavior, the NOK Group stipulates in”
the ”
Behavioral Guidelines Concerning Employee CompliNOK CORPORATION CSR REPORT 2021

50

Environment

PurposeApr.

Internal Control

Governance

Policy2004

In May of each year, NOK administers a self-evaluation questionnaire to all directors and auditors, including those from outside thecompany, asking them questions about the composition, operation,
and agendas of the Board of Directors, as well as questions about
the structure that supports the Board of Directors. The aggregate
results of responses are shared with the Board of Directors. In FY
2020, the analysis and assessment indicated that the Board of Directors as a whole was effective.

The NOK Group works to fight against bribery and corruption by
stipulating the following in its Principles of Corporate Behavior:“ Wewill engage in fair, transparent, and free competition and ensure
appropriate transactions and responsible procurement. We also
maintain a sound and proper relationship with political bodies andgovernment agencies.”
Pursuant to the Principles, the Behavioral Guidelines Concerning
Employee Compliance prohibit collusive relationships and corrupting behaviors involving business partners and public officials,
including excessive entertainment and bribery. The guidelines also
forbid embezzlement and misappropriation and other acts that may
affect company profits. These rules are communicated to employees through providing education and distributing compliance handbooks to help them maintain a high level of awareness.
In the event of a violation of the Group’s anti-corruption policy, theRisk Management Committee is primarily responsible for taking action. Information on violations of the anti-corruption rules can also
be shared via the Whistle-Blowing Hotline.
The Internal Control Audit Committee conducts annual anticorruption audits and reports the results to the Board of Directors. During
FY 2020, there were no violations in the NOK Group.

Organizational▶For details, please see p. 5 of the ESG Data Book.

Assessing the Effectiveness of the Board of Directors

Anti-Corruption Initiatives (Anti-Bribery)

Participation in Communities andCommunity Development

Year Month

Policy on Remuneration for Directors
Taking into account that directors are responsible for improving
business performance in each fiscal year and increasing corporate
value over the medium to long term, their remuneration is divided
into two categories: basic remuneration, which consists of a fixed
portion and a long-term performance expectation portion; and performance-linked remuneration. The long-term performance expectation portion is obtained by purchasing a certain amount of thecompany’s stock through the shareholders’association made upof officers, which will be held for the duration of his or her tenure.
The level of payment is determined by comprehensively taking into
account such factors as the Company’s performance, the level ofIn order to improve objectivity and transparency regarding nomination and remuneration, the Management Oversight Council wasestablished as an advisory body to the Board of Directors. The
Council regularly checks important matters such as nomination andremuneration, and provides appropriate advice to the Board of Directors. The Management Oversight Council is primarily composedof external officers with members including the Chairman of theBoard, the President and Representative Director, two external directors and one external auditor. The council checks and advises
on key management issues, such as nomination and remuneration.

Quality Assurance

Efforts to Enhance Corporate Governance

Basic policy
The remuneration, etc., for directors and auditors are based on acompensation system designed to maintain the level of securing
and retaining excellent human resources and increase their motivation to improve the NOK Group’s performance and corporate
value.

Advisory body on nomination and remuneration(Management Oversight Council)

Practices

NOK decides candidates for directors and auditors at meetings ofthe Board of Directors taking into account their abilities, insight,
character, etc., in a comprehensive manner. Specifically, the company nominates directors and auditors based on their qualifications
and aptitude for the position in accordance with the following nomination policy.
The company believes that it is important that directors who execute business operations are well-versed in the NOK Group’s operations and involved in making key management decisions.
In addition to complying with the external requirements set forthin the Companies Act and the independence criteria of the Tokyo
Stock Exchange in nominating external directors, the company expects external directors to be able to advise on the company’s
corporate activities from an objective, wide-ranging and high-level
perspective based on their wealth of experience and high level insight. In this way, the company nominates external directors on thebasis that there is no conflict of interest with general shareholders.

With respect to the remuneration of directors and auditors, thecompany establishes the following policy for determining the detailsof remuneration for directors and auditors. Based on this policy, theamount of remuneration for directors is decided by discussions at
the meetings of the Board of Directors and the amount for auditors
by discussions of auditors respectively, within the limits of the total
amount determined at the general meeting of shareholders.

Policy on Remuneration for Auditors
As auditors are responsible for auditing the execution of duties forthe entire NOK Group, their remuneration is divided into a basic remuneration according to their rank and a performance-linked remuneration for full-time corporate auditors based on their contribution
to the improvement of performance from a perspective different
from that of directors.

ance”its stance and relationship with agencies, distributors, competitors and suppliers, and complies with the Act on Prohibition ofPrivate Monopolization and Maintenance of Fair Trade, Act against
Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors
and the Unfair Competition Prevention Act, etc. The NOK Group
continuously raise employees’awareness of the principle by distributing an introductory compliance booklet and through education,etc. by the department in charge.
In addition, to ensure fair trade, the company establishes the“ FairTrade Regulations” that stipulate prohibitions and management
methods to ensure fair transactions.
In the event of a violation of the Group’s anti-corruption policy,
the Risk Management Committee is primarily responsible for taking
action. Information on violations of the anti-corruption rules can beshared via the Whistle-Blowing Hotline.
The Internal Control Audit Committee conducts an annual audit
on the status of compliance with the Act on Prohibition of Private
Monopolization and Maintenance of Fair Trade, Act against Delayin Payment of Subcontract Proceeds, Etc. to Subcontractors andthe Unfair Competition Prevention Act and reports its results to theBoard of Directors. During FY 2020, there were no violations in the
NOK Group.

Fair Operating

Nomination of Directors and Auditors

Remuneration of Directors and Auditors

dividends to shareholders, the treatment of employees, the statusof concurrently serving in consolidated subsidiaries, as well as thegeneral level of payment of listed companies for each position.

Labor Practices

We have appointed external directors and external auditors with awealth of experience and insight in industrial policy and diplomacy,
as well as with a proven track record in corporate management
based on such expertise. They advise us on our business activities
from an objective, wide-ranging and high-level perspective.
In addition, we have appointed external auditors, including a licensed tax accountant, a certified public accountant, and an attorney, who provide us with opinions based on their extensive experience and knowledge.
The secretariat of the Board of Directors provides support for external directors and external auditors. In addition, NOK has staff
members who assist auditors in their audit work such as throughresearch on laws and regulations. The secretariat of the Board of
Directors sends and explains to the external directors and external
auditor materials on agendas for the Board of Directors meetingsprior to the Board of Directors meetings.

Corporate auditors are expected to perform functions and roles
such as conducting objective and appropriate audits based on theirexpertise. The Company nominates them on the basis that there isno risk of conflict of interest with general shareholders.
In addition to the above approach, candidates for external auditors
are nominated in accordance with the external requirements set
forth in the Companies Act and the independence criteria of theTokyo Stock Exchange.

Human Rights

External Directors and External Auditors

GovernanceCorporate Governance3．
Regulations against Insider Trading
4．
Export/Import Procedures (Security Trade Control)5．
Laws Related to Intellectual Property Rights
7．
Environmental Conservation
8．
Safety and Health9．
Provision of Useful and Safe ProductsManagement and Supervisory Bodies
Board of Directors
ReportGuidance and Supervise

Business Execution Bodies
President (Risk Management Officer)

10．
Appropriate Management of Information

Direct11．
Prohibition against Acts that may Damage the Company’sInterests“Business Strategy Risk”
Management

Report“Risk of Loss”Management

Governance

Reporting Desk

Check and Evaluation

Illegal Conduct

revised on January 1, 2020

Group Strategy Review Meeting＊ Refer to the CSR information (Governance - Risk Management/Compliance) on the

Refer for Discussion

Enacted on August 1, 2006
NOK website for details of each provision.

Employees③Response

Compliance Promotion System and Initiatives
In its“Compliance Rules”the NOK Group designates divisions incharge of individual laws and regulations to promote complianceactivities in their respective operations, which act as a point of contact for reports and consultations on related laws, internal regulations and rules.
The NOK Group has designated October of every year as a compliance promotion month in order to regularly inform employees
of NOK’s compliance initiatives and to help raise their awarenessof compliance, such as through conducting a survey of all employees on their compliance awareness. The company also provides
compliance education at training for new employees and newly
appointed managers, as well as distributes compliance handbooks
to all employees and publishes a series of articles titled“An introduction to compliance”in the company’s newsletter; thereby, continuously promoting awareness.

Subsidiaries①ReportReportHead Office Divisions (Business
Administration Department)

Business Execution Bodies

Environment②Investigation/ Correction

Risk Management Committee

ReportThorough Awareness

Reported to
An illegal act by a colleague

Department head

An Illegal act in other departments

Department in charge of individual laws
and regulations

When the department in charge is
unknown, etc.

Department in charge of office operations

Whistle-Bilowing Hotline
Illegal Conduct

Report③Investigation/ Correction
Employees④Response④Response
Choose①Reporting
Internal Hotline〈NOK〉
Internal Control Audit Committee
Audit Committee (Legal Affairs Dept.)

51 NOK CORPORATION CSR REPORT 2021

Organizational

12．
Giving Report of Violations of Ordinances etc.

Participation in Communities andCommunity Development

6．
Severance of all relations with Antisocial Forces

Quality Assurance

2．
Fair and Appropriate Trade“Business strategy risk”is assessed at meetings for examining theGroup’s management strategy where risks associated with the promotion of business and new projects at Group companies are identified and discussed to maximize returns in a timely and appropriatemanner. As for“risk of loss,”the Risk Management Committee isestablished to assist the chief risk management officer, which periodically identifies and analyzes risks, as well as quantifies themthrough risk-level assessments that take into account the frequency(timing) of occurrence and the scale of loss (amount of damage);thus, examines issues and response measures by prioritizing theirimportance and urgency.

Practices1．
Respect for Human Rights, Prohibition against Discrimination andHarassment

The NOK Group establishes the NOK Group Reporting Desk andWhistle-Blowing Hotline to defect and correct illegal conduct that
violates the Compliance Rules at an early stage.
An employee who becomes aware of illegal conduct can contact
the Reporting Hotline. If the illegal conduct is not rectified despite
having reported it as described above, or if it is difficult toreportsuch conduct to the Reporting Desk designated to receive suchreports, he or she can report the matter to the Whistle-Blowing
Hotline.
The Whistle-Blowing Hotline consists of the Internal Control Audit
Committee and independent lawyers. Reports can be made anonymously, provided they are objective and specific. Moreover, thewhistle-blower is protected against disadvantageous treatment under the compliance regulations. Whenever a report or consultationis received, the Company takes appropriate action, such as investigating and correcting the situation in question.
At overseas sites, in FY 2019, the Whistle-Blowing Hotline was
set up (in and outside of the company) on a trial basis at twoof our Group companies in China. Furthermore, in FY 2020, theWhistle-Blowing Hotline was expanded to an additional 10 Group
companies in China to advance our efforts to strengthen the whistle-blowing system.

NOK’s “Risk Management Rules” stipulate the basic policy andmanagement system for risk management for the entire Group.
Based on these Rules, the company establishes a management
system in which the president is responsible for risk management
and promotes risk management for the Group. There are two typesof business risks that may affect the management of the company:“Business strategy risk”in which we seek to maximize returns
while maintaining balance with risks of increasing corporate value; and“risk of loss”in which we seek to prevent or minimize theprobability of occurrence and losses in order to maintain corporate
value.

Fair Operating

Behavioral Guidelines Concerning Employee Compliance（Plan）

Reporting and Whistle-Blowing System

Labor Practices

The NOK Group established the “Compliance Rules” in 2006,
based on the“NOK Charter of Corporate Behavior,”which stipulates compliance with laws and regulations as well as the company’s various rules and regulations. The company established the“Behavioral Guidelines Concerning Employee Compliance” as a
guideline for specific details of the regulations, which specifies theitems that employees must comply with in their business activities
and ensures that all Group employees familiarize themselves withthe guidelines.

Risk Management

Human Rights

Compliance①Reporting
External Hotline〈Lawyer〉②Cooperation

NOK CORPORATION CSR REPORT 2021

52

GovernanceCorporate Governance

Environmental ReportElectronic
Product
Business

Roll Business

Other Business＊ Subcommittee is established in each segment’s BCM Committee.

2．
Planning and promoting business continuity plan (BCP)NOK will proceed with business continuity measures based on thefollowing basic policy:
1.Give first priority to ensuring safety, protecting people and saving
people’s lives.
2.As a member of the local community, actively cooperate with therecovery of the whole region.
3.Minimize the impact on customers and stakeholders and fulfill
responsibilities as a business operator.
Each business site, including domestic and overseas group companies, has a plan that outlines policies, systems, and procedures toensure that important business operations are not interrupted or
are restored as quickly as possible if an unforeseen event should
occur. At the same time, the company is verifying the effectivenessof the plan through training and responding to identified issues. It
is also continuing to implement measures to minimize damage, im-

53 NOK CORPORATION CSR REPORT 2021

Based on the company’s unique conventional technology, we promote the improvement of technology and developmentof products, as well as strive to reduce environmental burden.

2

We will promote energy conservation to prevent global warming, reuse and recycle resources, and reduce waste towarda recycling oriented society.

3

We will set targets at the NOK Central Environmental Conservation Committee and work together with our suppliers andother related companies to make continuous improvements in reducing environmental burden. We will also strengthen ourefforts to manage chemical substances, prevent global environmental pollution, and enhance our efforts to reduce water use.

4

We comply with related laws and regulations, local government ordinances, and regional agreement, etc., and promote
activities for environmental conservation.

5

We comply with self-imposed restrictions by the industry and customers, and positively try to meet the expectations of
our stakeholders toward environmental issues.

6

We disclose information on environmental conservation and social contribution activities, and positively communicate
with local and broader society.

7

As a good corporate citizen, all employees recognize the importance of biodiversity and global environmental conservation and will strive to raise awareness of the global environment, as well as continuously improve our environmental
management system.

Enacted: September 17, 2001
Revised: April 1, 2021

Environmental Management System
To promote our environmental management activities smoothlyand steadily, company-wide efforts are made under the following
system.
The Central Environmental Conservation Committee, chaired by
the President and Representative Director, meets twice a year todetermine risks and opportunities in environmental management
and company-wide business policies. The Board of Directors is
informed of important matters such as priority tasks of identified

President of NOK CORPORATION
Chairman of Central Environmental
Conservation Committee

Environment

Subcommittee by function (cross-functional)

1

Governance

Subcommittee by organization(by business division and establishment)

Basic Policies on Environmental Conservation

Masao Tsuru

risks and opportunities and results by the ESG Committee. Under
the supervision of the company-wide environmental conservation
supervisor, the company-wide environmental secretariat and the
Subcommittee for Reduction of Energy Consumption are leading
actual environmental conservation activities, with each workplace
carrying out environmental conservation activities in accordancewith the environmental targets and policies. In fiscal 2021, we set
up a subcommittee for carbon neutrality. The subcommittee will
determine a roadmap for carbon neutrality and specific measures
for CO2 reduction to promote our carbon neutral initiatives.

NOK CORPORATION CSR REPORT 2021

Organizational

Subcommittee in Segment

The NOK Group has put together important points regarding intellectual property-related laws in the Behavioral Guidelines Concerning Employee Compliance, ensuring that all employees are awareof these points. In this way, the group promotes the application andacquisition of intellectual property rights for the company’s own
inventions, as well as respects the intellectual property rights ofothers and strives to prevent infringements of others’rights by researching and identifying the patents of other companies.
To protect NOK’s brands, we combat counterfeiting, even outside
Japan, through our Anti-Counterfeit Committee. During FY 2020,
the company uncovered three cases of counterfeit factories in China and removed web pages selling counterfeit products from online
sales sites in 664 cases.

On the basis that the company is a member of society, we give all our employees full recognition to the fact that our businessactivities, products, and services have diverse relations to the environmental impact on a global scale. We set and implement the
Basic Policies on Environmental Conservation from a longitudinal perspective in order to contribute to the realization of sustainable
development of a society toward future generations.

Participation in Communities andCommunity Development

Protection of Intellectual Property

NOK’s Policy

Quality Assurance

Segment BCM Committee

In recent years, a variety of environmental problems have emerged
and are affecting our lives. To solve environmental problems andachieve a sustainable society, we must reduce the environmental
burden in all aspects of our economic and social activities. In the
Sustainable Development Goals (SDGs), environmental issues are

regarded as one of the social issues that must be resolved, andmany countries are tightening environmental regulations and working to protect the environment. Companies are required not only tocomply with the regulations of each country, but also to contributeto the realization of a sustainable society by taking the environment
into account in their overall corporate activities.

PracticesCentral BCM Committee

Social Background

Fair Operating

Seal BusinessInformation Security
To appropriately manage and utilize information provided by customers, personal information, and such information as the company’s unique technology, the NOK Group established the NOKGroup Information Security Basic Policy. The company also established a Group-wide Information Security Committee to systematically promote activities. We also have a system in place to handle
information leaks related to important information, including customer information and personal information, as an information security incident.
In FY 2020, in response to the rapid expansion of telecommuting inline with the Emergency Situation Declaration, we took measures
focusing on the risk of information leaks when using the systemfrom outside the company. In response to increasingly sophisticated cyberattacks, we have established a system that enables us to
immediately receive support services from experts so that we canrespond swiftly in the event of actual damage. In FY 2020, there
were no major information security incidents to be announced orreported.
We will place further focus on responding to increasingly advanced
and sophisticated cyberattacks, and will continue to implement a
PDCA cycle to maintain and improve our information security measures.

NOK Group Business Continuity Management System

UNGC
Principle8

Labor Practices

1．
Business Continuity Management (BCM) System
Regarding business risks and emergencies, NOK defines natural
disasters, fires, explosions, serious accidents and epidemics of infectious disease as“events that interfere with business continuity.”
The company established the Business Continuity Management
System to ensure business continuity and to promote business continuity activities consistently and effectively should such an event
occur.
Specifically, the NOK Group BCM Committee was established as astanding committee to promote business continuity management
activities. The management system composed of the BCM Committee is used to formulate, maintain, and update the business continuity plan (BCP), secure budgets and resources to implement them,
implement preventative measures, conduct education and training,
conduct inspections, and engage in continuous activities.
In the event of an emergency, the company shall immediately set
up an emergency response headquarters at the head office andon-site response headquarters at local business establishments.
Depending on a given situation, relevant departments and divisions
will work together to deal with the situation promptly and appropriately.

Environmental Management

Human Rights

prove emergency communication methods and reporting systems,
and reinforce the earthquake resistance of our IT infrastructure.

Response to Disaster Risks

54

Environment

Board of Directors

CarbonNeutralSubcommittee

CSR
Subcommittee

Scenario
Analysis
Subcommittee

The NOK Group established the Eighth Corporate Environmental
Conservation Targets (FY 2020 to FY 2022) for the following categories: environmental management, measures against climatechange, resource conservation and recycling, water resource
conservation, measures against environmentally hazardous substances, and development of environmentally friendly products.
In FY 2020, we have established a department for environmental
risk assessment and environmental improvement. The department has conducted and completed environmental risk surveys

Slogan: Creating Corporate Value by Increasing Environmental Value
Initiatives and Goals

EvaluaResult
tion

Improving the management level of the environmental management system
Promoting and expanding education by rank and developing environmental human resources
Reducing environmental protection risks through a steady PDCA cycle

○

P.58

P.60

We will promote the development of products that willcontribute to next-generation environmentally friendly
technologies.

Initiatives

Initiatives• We will develop production facilities that will reduce energy
consumption by 20% compared with the existing ones.

• We will develop products that contribute to the spread of next
generation energy-saving technologies such as fuel cells.

• We will actively promote the use of renewable energy.
• We will strive for waste reduction and a 100% recycling rate.

• We will contribute to the reduction of environmental impact
by developing low friction technologies that will make low fuelconsumption possible.
• We will develop functional membranes that will contribute towater recycling (hygienic water supply and circulation).
• We will thoroughly control chemical substances in our products
and improve their environmental quality.

Japan

FY 2018

Reduced by 10%○

CO2 emissions

Global

FY 2018

Reduced by 10%○

CO2 emissions intensity

Japan

Previous year

Average intensity change
reduced by 1% or more over the
past five years

×Resource conservation
Promoting resource conservation through design and process changes, optimization of material
input, etc.
Waste reduction
Promoting product non-conformity measures and recycling, reducing the amount of waste disposal
in landfills by converting waste to recyclable materials, and improving the recycling rate
Waste Recycling Rate

Conservation of
Water Resources

Maintaining at rate of more than 98%○

GlobalPrevious year

Controlling an increase

P.65○

Reducing environmental burden
Reducing VOC emissions
Strengthening the chemical substance management system
Promoting green procurement (thorough management of chemical substances by suppliers)
VOC emissions

Environmentallyfriendly products-

Checking the volume of water withdrawals and wastewater in and outside Japan
Controlling the increase in total water withdrawals
Total water withdrawals

Measures on
Substances ofConcern

Japan

P.63

Global

FY 2010Less than FY 2010 results

Developing environmentally friendly products
Improving the level of environmental conservation assessment in products

P.67
○
○

NOK CORPORATION CSR REPORT 2021

P.68

56

Environment

Through measures for environmentally friendly production, we will reduce CO2 emissions from factories by
30% from the FY 2018 level.

Resource
Conservation andWaste Recycling

Electricity Consumption

Governance

Measures against
Climate Change

Reducing CO2 emissions
Developing energy-saving equipment for production processes
Reducing CO2 emissions in logistics processes
Actively introducing renewable energy

Organizational

Green Product

55 NOK CORPORATION CSR REPORT 2021

TargetParticipation in Communities andCommunity Development

which further requires measures against climate change, the NOKGroup has decided to review its total CO2 emissions targets andpromote environmental conservation activities in light of international environmental conditions such as the Paris Agreement, TCFD,
and SBT.

Relevant SDGs

Baseline Fiscal
Year

Strengthening the prevention of environmental nonconformity
Promoting the environmental risk assessment of equipment and facilities

Green Factory

Relevant SDGs

Scope ofCoverage

Fostering and establishing an environmental climate
Promoting environmental contribution activities tailored to the characteristics of each region

NOK Twin Green Plan 2030

• We will thoroughly oversee and reduce the use of hazardous
chemicals in processes.

Item

Quality Assurance

Category

Formulation of Long-term Environmental Vision for 2030

• We will work on reducing water use and ensure cleaner wastewater.

Practices

The Eighth Corporate Environmental Conservation Targets (FY 2020 to FY 2022)

Environmental
Management

Amid the worsening issues of climate change and energy caused by
global warming, the NOK Group formulated the“NOK Twin Green
Plan 2030”in 2018 in response to the SDGs adopted by the United
Nations, and has since been promoting environmental conservation
activities. However, with the emergence of global climate change,at all our plants. Our CO2 emissions and electricity consumption
are being steadily reduced to reach our targets. However, due
to the significant impact of a decrease in our production due tothe novel coronavirus pandemic, we were unable to achieve ourtarget for CO2 emissions intensity. On the other hand, we areable to meet the target levels for waste recycling rate, control ofincrease in water withdrawals, and reduction of VOC emissions.
For details, see the values of the results.

Fair Operating

PlantsWith the Paris Agreement adopted in 2015 and the SDGs agreement towards 2030, society's perception of environmental issues
is changing. As activities to realize a sustainable society become
more active, companies are strongly urged to carry out“environmental management,”which is a business activity that takes the environment into account. This includes“companies’disclosure of climate-related financial disclosure”recommended by the Task Forceon Climate-related Financial Disclosures (TCFD) and the Science
Based Targets (SBTs), which is scientific CO2 emission reduction
targets in conformity with the realization of the Paris Agreement.
The NOK Group established the NOK Twin Green Plan 2030, along-term environmental vision for the year 2030 as its environmental management, and has been engaged in environmental conservation activities such as measures against climate change, resource
conservation and recycling, conservation of water resources, measures on substances of concern, development of environmentallyfriendly products, and conservation of biodiversity. To realize asustainable society, we will continue to fulfill our social responsibility by promoting environmentally friendly business activities andprovide environmental value to society by providing products that
contribute to the environment.

Labor Practices

Subcommittee for
Reduction of Energy
Consumption

ESG Committee(Chair: President)

Principle8

Human Rights

Central Environmental
Conservation
Committee(Chair: President)

UNGC

NOK's Mid-Term Goals and Progress

Environmental Management of the NOK GroupEnvironment

Environmental Management System

FY 2020 NOK GroupINPUTOUTPUT

Raw Materials
Total raw material input

Gas emissions
81

Additives & Adhesives

10

1,000 tons

Plastics

1

1,000 tons

Metals58

1,000 tons

Energy11,899TJ

12

TJ

Kerosene

7

TJ

Heavy Oil A

137

TJ

Light Oil

150

TJ

Liquefied Petroleum Gas (LPG)

109

TJ

City Gas

212

TJ

Scope 2 (Electricity/heat)
Scope 3 (Indirect Emissions)23tProcurement

SOX (Sulfur Oxides) *2

3t・Environmental Impact Assess-

VOC (Volatile Organic
Compounds)

3

1,000 tons

Total wastewater

6,484

1,000 m3

River / Lake

2,602

1,000 m3

sawage system

3,881

1,000 m3

5.4

t

ment

・Green Procurement

Inspection of Machinery andEquipment

Production
・Life Cycle Assessment (LCA)・Pollution Prevention

・Energy Conservation

City Water
Industrial Water
Ground Water

・Waste Reduction

8,254

1,000 m3

4,488

1,000 m3

3,509
257

・Environmental Impact Assessment

1,000 m3

By-product generation
Industrial Waste
Amount of waste
recycled

Valuable waste

1,000 m

1,000 tons

・Efficient Transportation

・Promotion of Modal Shift

Customers

The NOK Group conducts a variety of education programs to foster
a company-wide environmental climate. The NOK Group conducts
education by rank for its employees and specialized education
including ISO 14001 management, energy, waste, and chemical
substance management, as well as education in preparation for
emergency situations, thereby, raise the environmental awarenessof every employee.

Industrial waste, etc.

3

Environmentally hazardous substances
5.6

BOD load *3

Final disposal

Logistics
Chemical substances subject
to the Pollutant Release
and Transfer Register (PRTR)
systemWastewater

・Environmental Conservation

Environmental Education

83

1,000 tons

46

1,000 tons

41

1,000 tons

5

1,000 tons

37

1,000 tons

127

Chemical substances
subjected to the Pollutant
Release and Transfer Register (PRTR) system (amountof movement)

323

FY 2020 results

tons

tons

＊ 1 Total CO2 emissions: Calculated based on the "Greenhouse gas emissions accounting and reporting manual.” The emission factor is based on the national emission factor by country
published by the International Energy Agency.
＊ 2 NOX (nitrogen oxides) and SOX (sulfur oxides): Total amount of NOX and SOX generated from specified facilities under the Air Pollution Control Act.
＊ 3 BOD load: Biochemical oxygen demand (BOD) is one of the indicators of water pollution and represents the amount of oxygen used by microorganisms to decompose pollutant

Contents

Number ofattendees

New employee training

Basic education on environmental conditions andcorporate environmental protection activities

97

General employee education

Environmental conditions and the status of NOK,
environmental protection activities, etc.

7,038

Education for management position

Environmental conditions and the status of NOK,
environmental protection activities, etc.

553

Emergency-related education

Education for environmental accidents and emergency
response

1,973

Education for internal auditors

Education for ISO 14001 auditors

4,286

Waste-related education

Proper waste disposal

5,991

Energy-related course

Course for energy managers

120

Chlorofluorocarbon-related course

Act on Rational Use and Appropriate Management of
Fluorocarbons etc.

15

Chemical substances-related
education

Education on the management of toxic and hazardous
materials

3,273

Item

Level-specificeducation

Environmentally hazardous substances
Chemical substances
subject to the Pollutant
Release and Transfer Register (PRTR) system (discharge volume)

Environmental audit by the Environmental Management Office staff

Specialized
education

Environment

Total water withdrawals

268,547 1,000 tons-CO2

NOX (Nitrogen Oxides) *2

・Chemical Substances Control

Water

602 1,000 tons-CO2

GovernanceGasolinement

At NOK, the Environmental Management Office is in charge of environmental audit and periodically checks and evaluates the operation of the management system, compliance with environmental laws and regulations, and the management of environmentallyhazardous substances. The results of the audit are reported to thepresident and heads of business units for prompt correction and improvement. The company strives to improve its environmental performance and reduce environmental risks by reflecting the resultsin our environmental protection management policy as necessary.

organic material in water. The figure for BOD load was obtained by multiplying the BOD measurement by the amount of effluent to rivers.

57 NOK CORPORATION CSR REPORT 2021

Organizational

TJ

Assessment of Products, etc.

・Environmental Impact Assess-

Environmental audit

Participation in Communities andCommunity Development

11,273Purchased power

38 1,000 tons-CO2

Scope 1 (Fuel)

Quality Assurance

1,000 tons

640 1,000 tons-CO2

Practices

12

・Environmental Conservation

Total CO2 emissions(Scope 1 + Scope 2)*1

NOK has a third-party organization inspect mainly the company’sproduction sites involving in environmental burden and have themacquire and maintain the ISO 14001 certification. In fiscal 2020,
there were no significant findings and the company received anevaluation that the management system is operating properly andundergoing continuous improvement. In addition, the president attends the annual meeting where inspectors report on the resultsof their inspections, so that the valuable opinions of the third party
on NOK's environmental management can be reflected in management.

Fair Operating

RubberTotal energy input

Design1,000 tons

External Inspection
Labor Practices

NOK establishes a system in accordance with the ISO 14001 standard, promotes environmental management, and strives to implement environmental management with the next generation in mind,
thereby reducing environmental burden. The current percentageof the NOK Group establishments with ISO 14001 certification is
98.5%.

Input materials and industrial waste associated with business activities

UNGC
Principle7

Human Rights

Material FlowNOK CORPORATION CSR REPORT 2021

58

Environment

Measures against Climate Change
Social Background• Improvement of vehicle fuelefficiency• Reducing fuel consumption by
improving loading rates• Optimization of air conditioning
operation

Motor

Process monitoring

TargetCO₂ emissions
Reduction
Target(Global)CO₂ emissions
Intensity
Reduction
Target (Japan)

Baseline
Fiscal Year

Baseline Figure

2018

774
[1,000 tons-CO₂]

2019

1.330
[ton-CO₂/
1 million yen]

Environment

Efforts to reduce the environmental load in our supply chain
Since FY 2020, NOK has been conducting a survey with our suppliers regarding their environmental efforts in order to work together
in the supply chain to reduce the environmental load. Through thesurvey, we confirm the status of their efforts to deal with climatechange and water risk, reduction of CO2 emissions, and water risk
assessment. Also, we are working to raise environmental awareness in our supply chain with supplementary materials on such topics as environmental trends and risk assessment methods. We willcontinue to promote the survey to raise environmental awarenessin our supply chain, and cooperate in promoting activities for environmental load reduction.

• Visualization of power
consumption• Visualization of operational
statusTarget Fiscal
Year

Target Figure

This fiscal year’sresults

Evaluation

2030

Reduction by 30%
CO₂ emissions
542 [1,000 tons-CO₂]or below

Reduced by 17.2%
CO₂ emissions
640 [1,000 tons-CO₂]○
CO₂ emissions
Achieved 2.5% or
more/year2022

Average change
reduced by 1% ormore over the past fiveyears
CO₂ emissions intensity
1.161 [ton-CO₂/
1 million yen]

Average change
reduced by 0.12% ormore over the past fiveyears
CO₂ emissions intensity
1.220 [ton-CO₂/
1 million yen]×
CO₂ emissions intensity
Average intensitychange reduced overthe past five years
1% reduction notachieved＊ Aceatet, teces quis sandanturit id molorum alignis escimil latquia volessunda si reiumque dolenit, quam ipiciunti delitaquunt is si odi quidi＊ consequos ab ium consedi psaerrum alit unto quatemquis auta voloreped quia preptatecus pario.

59 NOK CORPORATION CSR REPORT 2021

NOK CORPORATION CSR REPORT 2021

Governance• Shifting motors and pumps, etc.
to inverter type• Upgrading to high efficiency
equipment

In FIn FY 2020, the CO2 emissions of the NOK Group were reducedby 17.2% from the FY 2018 level, and it meets the target of a "30%• Control and reuse of heatdissipation and waste heat

•Introduction of renewable energy• Optimization of operating
conditions

Targets and Results• Power saving of facilities

Organizational

Status of compliance with environmental laws and regulations
During FY 2020, the NOK Group was involved in no fines, penalties
or lawsuits related to environmental incidents or complaints.

Production facilities• Improvement of
production
efficiency• Retrofit• Upgrading to high efficiency
equipment• Repair of air leak
MYK Corporation

Participation in Communities andCommunity Development

Production
Factory building

Quality Assurance• Optimization of distribution routes

Practices• Promotion of idle stop• Frequently turning off lights,
automatic light activation

The NOK Group will work to reduce emissions of CO₂, which is amajor greenhouse gas, for the prevention of global warming. Our
manufacturing departments have developed energy-saving equipment to reduce production-related energy, and the logistics department has been reducing fuel consumption for transportationequipment. We take measures to reduce CO₂ emissions across the
lifecycle of our products, including the introduction of renewableenergy throughout the company. In addition, we regard climatechange as an important issue in our business management, andthe NOK Group is planning a management strategy against climatechange in line with the TCFD recommendations.

The staff of Thai NOK, the Gold Award winner

Logistics• Switching to LED lighting

NOK Group Policy

Commendation ceremony for Fukushima Protocol compliant projects

Environmental Improvement in Collaboration among Group Companies
In addition to the environmental improvement activities our respective bases carried out, NOK established a dedicated department
for environmental risk assessment and improvement in 2020. The
staff members of the department visit our 48 bases in Japan andcarry out risk assessments and environmental improvement activities together with the staff members of the base to promote energy
conservation and prevent environmental accidents. By conducting
risk assessments and improvement activities across boundaries between bases, we are striving to share environmental information,encourage other bases to adopt efficient improvement activities,
and bring up the levels of the environmental improvement activities
at the NOK Group. NOK will continue to contribute to reducing theenvironmental burden caused by the group through our group-wide
environmental improvement activities.

GeneralFair Operating

In recent years, there has been concern that typhoons, heavy rains,droughts, heat waves, and other abnormal weather will occur more
frequently around the world, threatening the survival of humanity
in the future. In 2016, the Paris Agreement came into force at theUnited Nations, and efforts to reduce greenhouse gases such as
CO₂ and energy conservation have been gradually increasing. The
number of countries proclaiming that they are aiming to achievecarbon neutrality by 2050 has started to increase, and the worldis getting ready to move toward carbon neutrality together. In Japan, the government declared "Carbon Neutral 2050" in October
2020, and other countries have started promoting their efforts for
decarbonization. Efforts for decarbonization are becoming important for companies as a factor that influences their operations. It isnecessary for companies to conduct active efforts for the reductionof greenhouse gases, such as energy saving and the introduction ofrenewable energy based on long-term strategies, and disclosure of
information about the activities.

reduction in CO2 emissions from the FY 2018 level" stated in the
NOK Twin Green Plan 2030. The reduction achieved this year is,
however, considered to be caused by the decrease in production
due to the novel coronavirus pandemic. For the CO2 emissions intensity, NOK was unable to meet its target, or the average intensitychange reduced by 1% or more over the past five years, which
resulted in reduction by 0.12%. NOK keeps striving to reduce CO2
emissions on a global basis and aims to reduce our CO2 emissions
intensity through improvement in production efficiency and othermeasures.

Labor Practices

Environmental Award System
In FY 2020, the NOK Group established the Environmental Award
System, aiming to revitalize internal environmental activities andraise the environmental awareness of each and every employee.
Through the Environmental Award System, we are sharing information on outstanding environmental efforts to raise our environmental awareness.
In FY 2020, Thai NOK Co, Ltd., which promoted energy conservation, CO2 reduction, efficient use of water resources, andtree-planting activities under ”
Total ESG,”won the Gold Award.
Their environmental activities and community contribution activities, such as cashing in valuable resources obtained from picking
up trash and donating the money to local schools and hospitals,
were admired.
Through the Environmental Award System, we will continue tocontribute to the realization of a sustainable society by raising ourenvironmental awareness and promoting better environmental activities.

External Awards / Commendations
The Fukushima Plant received the highest award in the manufacturing industry category of the Fukushima Protocol compliant projectcommendation for their daily environmental activities to reduce
CO2 emissions, waste, and water usage.
MYK Corporation has been evaluated as Rank S for the fifth consecutive year under the business classification system of the Ministry of
Economy, Trade and Industry. In addition, we received the Chubu
Electricity Use Rationalization Committee Chairman's Award as an
excellent energy management company for developing an injection
molding machine with high energy-saving performance through useof a subsidy.
We will continue to actively develop environmental activities tocontribute to local communities and the environment and increase
our corporate value.

Human Rights

Environmental Communication

60

Environment

FY 2020 Scope 3 Breakdown(1,000 tons-CO₂)

Category

22

Fuel- and energy-related activities(not included in Scope 1 and 2)0

Upstream transportaion and distribution

10

Waste generated from operation

14

Business travel

5

Employee commuting

15
0

Downstream transportation and distribution―

Processing of sold products―

Use of sold products―

End-of-life treatment of sold products―

Downstream leased assets

0Franchises0

Investments

―

Total

269

current difficulty in calculating.

NOK Group CO2 Intensity in Japan(ton-CO2/1 million yen)
1.60 01.425

1.22

0.9 0 0
0.725

2015

2016

2017

Actual results

2018

2019

2020 （ FY）

TargetGreenhouse Gas Breakdown

Total CO2 emissions of the NOK Group(1,000 tons-CO2)

Target Figure

Reduction by 30%

900
80 0

FY 2020
CO2 emissions

60 0
50 0

CO₂ emissions
not from energy
sources

17.2% fromthe 2018 level

30 0
20 0
10 0
2018

2019

2020

61 NOK CORPORATION CSR REPORT 2021

2030（ FY）

(t-CO₂)CO₂emissions

GWP reference

33

IPCC Fourth Assessment Report(AR4 value for 100-year time horizon)

291

IPCC Fourth Assessment Report(AR4 value for 100-year time horizon)

85

IPCC Fourth Assessment Report(AR4 value for 100-year time horizon)

HFCs

481

IPCC Fourth Assessment Report(AR4 value for 100-year time horizon)

PFCs

0

IPCC Fourth Assessment Report(AR4 value for 100-year time horizon)

SF6

89

IPCC Fourth Assessment Report(AR4 value for 100-year time horizon)

0

IPCC Fourth Assessment Report(AR4 value for 100-year time horizon)

N2O

Reduced by

40 0

0

Greenhouse
gas

CH4

70 0

Cavity b
Cavity cCavity dHeating plate
Heating plate

Figure 3. Change of mold cavity temperatures when productis removed
Time after removal

Cavity a

0. 3750.20 0

Cavity a

Environment

0. 550Time after removal

NF3

Governance

1.16

1.075

Figure 2. Change of mold temperatures
when product is removed

Organizational

1.250

Figure 1. Mold
model

Participation in Communities andCommunity Development＊ Categories 9, 10, 11, 12, and 15 fall outside the aggregation range because of theDevelopment of an Analysis Technique for Vulcanization Equipment
We developed an analysis technique for the heat in the materialloading, vulcanization, and removal processes in rubber vulcanization equipment. It is aimed at finding points that lead to energy saving in vulcanization equipment and predicting the effects of possible
measures for the points.
Figure 1 illustrates a vulcanization mold model. The materials are
put into the cavities in the mold and vulcanized. Figure 2 shows ananalysis of how the mold cools while the molded product is takenout of the mold after the mold containing the vulcanized materials
is removed from the equipment. Figure 3 shows the temperaturechanges in the mold cavities identified with the analysis technique.
One point for saving energy is finding a way to suppress the temperature drop when taking out the product in the heating and cooling cycle in which the material loading, vulcanization, and removal
processes are continuously performed. To find an energy saving
measure, we analyzed a way to remove the product with a moldheating plate attached. Figure 4 shows the measurements. We
found that the measure helps keep the mold temperature in thecycle. We assume that this measure will save energy by requiring
less heating by a heater.

ized by being used as heat energy in the manufacturing process.
Therefore, we have been developing construction methods andequipment for low energy consumption. For fixed power usage,
NOK has continued to increase the use of measures already determined effective and introduced them at its plants. Such measures include the replacement and maintenance of LED lighting
and top-runner motors and the introduction of renewable energy. We also have been promoting the establishment of a system
for more robust energy conservation management by adopting
IoT technology to visualize power consumption at out facilities.
We will continue improving our activities through the expansion
and new development of energy conservation measures.

Quality Assurance

Upstream leased assets

Activities of Subcommittee for Reduction of Energy Consumption
Based on the NOK Twin Green Plan 2030, NOK engages in continuous and strategic energy conservation activities with the goalof reducing CO₂ emissions from plants by 30% from FY 2018
through environment-friendly manufacturing initiatives. Last year,
the Japanese government declared "Carbon Neutral by 2050,"
and announced a target of a 46% reduction from the 2013 levelby 2030 this year. Therefore, we must engage in more aggressive activities.
Regarding our electricity usage last year, the ratio of the electricity consumption that fluctuates according to the production
volume to the fixed electricity consumption was 60:40.
With the tool, we found that most of the former was character-

PracticesUtilization of Waste Heat (China)
Mektec Manufacturing Corporation (Zhuhai) Ltd. makes effective
use of waste heat generated in their plant. The waste heat generated by the air compressors is recycled in the dormitory's hot watersupply system, and it is expected to save 146,760 kWh annually.
We will continue to promote effective use of energy through therecovery of waste heat as one of our energy saving measures.

204

Capital goods

Fair Operating

Improvement for Air Conditioning (China)
Wuxi NOK-Freudenberg Oilseal Co., Ltd. set air conditioner air
outlets 1.8 meters closer to the floor at their production site tosave energy on air conditioning.
Through the lowered air outlets,
cold air can get to the workers
without loss, and the on-site
temperature during summer was
successfully lowered by 3°
C. Theimprovement resulted in annual
energy savings of 15,120 kWh
and the reduction of CO₂ emissions by 141.52 t-CO₂.

Purchased goods and services 168

Subcommittee for Reduction of Energy Consumption

Labor Practices

Measures for Energy Conservation (Japan)
The NOK Group is replacing fluorescent lamps with LED lamps, repairing air leaks, and taking other minor energy-saving measures.
Kyushu Plant of NOK Fugaku Engineering, one of our group companies, replaced fluorescent lamps in the manufacturing buildings
with LED lamps, and successfully reduced the amount of electricity
consumption by 1,493 kWh/month. Also, we have repaired all air
leaks in all plants, started power cutoffs on weekday nights andholidays at the headquarters plant, and stopped the unnecessary
operation of air conditioners. These efforts reduced the operatingload of the compressors, causing the amount of electricity consumption to be reduced by 132 thousand kWh (a 25.1% reduction
from the previous year) and the energy used for air conditioners to
be reduced by 30.3% from the previous year.

CO₂ emissions

Human Rights

Concrete Activities

Visualization of Power Consumption

Cavity b

NOK provides IoT-based tools for visualizing energy consumption
to continuously promote a higher level of factory energy management activities.
The visualization tool is now in operation at all business units andis becoming an aid for energy management activities. In parallelwith the horizontal deployment of the tool to satellite companies,
we have developed an application that enables advanced analysis.
The application is aimed to help daily energy management. Specifically, the application allows visualization of changes in the power
consumption by equipment model and by production process andthe power consumption during non-production hours (preheatingtime, etc.) with the identical time axis for the electric energy and theequipment operation, and it helps to make improvements.

Cavity dCavity c

Figure 4. Change of cavity temperatures Solid line: Before
improvement, Dashed line: After improvement
Power consumption DB

Power company

Plant building 1

Power receiving andtransforming facilities

By power
receiving andtransforming
facility

Facilities
By
distribution
panelboard

Chemicalconversion
coating
OthersVulcanizer

Secondary
vulcanizing
furnace

Distribution
panelboard
Byequipment
Molding Com- Air conmachine pressor ditioner

Light

Figure 5. Visualization of power consumption
NOK CORPORATION CSR REPORT 2021

62

EnvironmentNOK Group Policy

This fiscal year’s results

Evaluation

-

-

-

-

Industrial waste landfill disposal
amount (Japan)

2030

0t

37 t

By-product recycling rate
(Japan)2020

More than 98%

99.9%

○
Achieved a recycling
rate of more than 98%＊ By-product: General term for industrial waste and valuable resources＊ Recycling rate:“Recycling rate = 1 – amount of landfill disposal / amount of by-product generated × 100”

Amount of by-products generated by the NOK Group(Japan)(1,000 tons)

NOK s ﬁnal landﬁll disposal amount andwaste recycling rate (Japan)

2 ,0 0 0

70

60

47

50
40

10 0.0Target ﬁgure (Recycling rate)

98.0

1, 50 097. 5

20

1,0 0 0

95.0

26

50 0

0.03

30
20

99.9 （％）

（ t）

37

10
0

2013

2014

2015

2016

2017

2018

2019

2020（ FY）

■ Valuable waste ■ Amount recycled ■ Landﬁll disposal amount

0

2013

2014

2015

2016

■ Landﬁll disposal amount (left)

2017

2018

2019

92 . 59 0.02020（ FY）

Waste recycling rate (right)

Recycling of waste solvents as valuable resources (Japan)
NOK KLUEBER CO., LTD. is recycling waste solvents such as
post-cleaning solvents and raw material-containing solvents into
valuable resources through cleaning. By distilling and recovering
DMF / NMP / IPA / NS Clean (hydrocarbon-based cleaning agent),
approximately eight tons of industrial waste were reduced in fourmonths.
Also, NIPPON MEKTRON, LTD. has reduced 500 tons of industrial
waste by recycling acidic waste liquid as a valuable resource.

Environment

Target Figure

GovernanceTarget Fiscal Year

Promotion of recycling (Japan, China)
The NOK Group is actively promoting recycling. At Isshin Industries Corporation, they were able to reduce industrial waste by 240
liters annually by recycling the hydraulic oil used in compression
molding machines (recycled hydraulic oil).
Mektec Manufacturing Corporation (Suzhou) Ltd. has started purification treatment because copper plating solutions containing impurities are unusable. The treatment allows copper plating solutions
to be reused, and 19 tons of copper plating waste solutions werereduced annually.

Going paperless (company-wide)
NOK is promoting digitalization company-wide, and one of its goals
is to go paperless. We have selected types of paper documentsthat are printed regularly, such as pay slips, and are aiming to reduce them by 50% by 2022. Of the 220 selected types of printed
matter, we have converted 55 types into digital formats. We havesuccessfully reduced the amount of paper consumption by 25%,
and the number of paper sheets purchased has been steadily reduced at the respective bases. We will continue to strive to go
paperless in order to further reduce waste.
Reduction in food loss (Fujisawa)
The Shonan R&D Center has begun an activity to reduce food loss
in collaboration with an external company operating a cafeteria
inside the Center. We investigated the amount and breakdownof daily food waste in the cafeteria, called for adjustment of theamount of rice served, created bulletin boards to raise awareness63 NOK CORPORATION CSR REPORT 2021

Organizational

Target Items
Continuous efforts to conserve
resources

Participation in Communities andCommunity Development

The NOK Group has been promoting the 3R initiative (reuse, reduce, and recycle) to realize a recycling-oriented society. The
Group strives to contribute to a sustainable society and to enhance
our corporate value through a range of measures throughout the
product life cycle, including the efficient use of raw materials, water,and energy as well as waste reduction and recycling of resources
by improving each process.

Quality Assurance

The NOK Group’s recycling rate for FY 2020 was 99.9%, achieving
more than 98 percent of its goal.
Due to waste (disposed of in landfills) from the foundry in Tottori
Prefecture, which started operating in the second half of FY 2017,
the amount of waste disposed of in landfill in FY 2018 was 1,241
tons. But in FY 2020, the amount of waste disposed of in landfills
was reduced to 37 tons because we were able to recycle it, andthe recycling rate was improved to 99.9% of the level recorded
before the foundry started operating. The NOK Group will continue
to reduce the amount of waste by taking measures to conserve resources, such as reviewing the shape of molds and the appropriate
weight of rubber fabric, as well as measures to prevent productnon-conformity, promote recycling, and turn waste into valuable resources. Thereby, we will promote the NOK Twin Green Plan 2030
to achieve a 100% recycling rate.

Practices

We have been living a convenient and prosperous life surrounded by many things in a social system of mass production, massconsumption and mass disposal. At the same time, we are consuming a large amount of the earth's finite resources and energy,
as well as generating a large amount of waste, and we are facing
various problems such as the depletion of natural resources andenvironmental destruction. Today, shifting from a mass-production, mass-consumption, mass-waste society to a recycling society
is globally called for, and businesses are required to promote theefficient use of resources taking into account the entire productlifecycle from the procurement of raw materials to disposal and 3Rs(Reuse, Reduce and Recycle).

Fair Operating

Targets and Results

Labor Practices

Social Background

Reduction of industrial liquid (Japan)
UNIMATEC CO., LTD. has launched a project to move the outsourced treatment of waste liquid containing fluorine ions (industrial waste) in-house. Through research and development of a system
for fluorine ion removal, we found an effective adsorption method
and set it with the optimum operating conditions in practical tests
to enable in-house treatment. Through our in-house treatment, wehave successfully reduced the amount of waste liquid.

of food loss reduction, and checked the change in the amount ofwaste. The check found that the amount of food waste was reduced by 34% compared to before the activity. We will continue tocarry out the activity, and expand and promote the activity so that
it is carried out at other bases.

Human Rights

Resource Conservation and Waste Recycling

Concrete Activities

NOK CORPORATION CSR REPORT 2021

64

Environment

Social Background
TargetResults ofWastewater
Volume2019(baseline
year)

8,768
[1,000 m3]

7,386[1,000 m3]

2020

8,254
[1,000 m3]

6,484[1,000 m3]

Efficient utilization of water resources (Thailand)
Raw water supplied from the industrial park to the Thai NOK Co.,
Ltd. factory cannot be used in the production process. The raw
water is treated to make it pure through reverse osmosis (RO)membranes and deionization (DI) in the factory and supplied to the
production process. Some water that cannot be purified is usually
discarded, but Thai NOK Co., Ltd. uses it for the sewage of toilets.
The raw water is also sprayed to maintain the green area (30,000m2) in the factory site.

RO-deionized water system

Practices

Results of Water
Withdrawals
VolumeWhile complying with the laws and regulations regarding wastewater, NOK has been using voluntary standard values that are about
20% higher than standard values stated in the laws and regulations.
In addition, NOK is working to maintain a database system thatallows measurements at the factories to be shared and checked.
NOK Group factories
and the environmental risk assessment department
are working together to prevent wastewater accidents andproblems.

NOK Group s total water withdrawals

Fair Operating

Monitoring the water
withdrawals andincrease-controlledwastewater volume(Global)FY

Concrete Activities

Labor Practices

Currently, the global shortage of water resources is becoming an
issue due to the increase in water use caused by population growth
and the development of developing countries. Moreover, intensifying climate change has led to different precipitation patterns aswell as unusual intensity and frequency of rain, which may resultin the destabilization of water resources, such as the expansionof drought areas and worsening flood damage. To address thesewater risks and create a sustainable society, it is becoming more
and more important for businesses to make effective use of water
resources.

Wastewater Control

Human Rights

Conservation of Water Resources(1,000 m3)

8,254

9,000
8,000
7,000
6,000
5,000

2018

2019

2020（ FY）

of water, water quality, regulations, and reputation.

Sanitary
wash water

Watering thegarden on
the premises

Brine watertank

RO water
tank

24%

7,250

4%
7%

6,484

6,500

75

5,750
2019

2020 （ FY）

49%

sample16% ■ High■ Medium to high
■ Low to medium■ Low

The survey revealed that high water stress was observed at six
plants in Thailand and China and two plants in Germany out of all
our 75 plants. NOK will continue to globally monitor and control
water withdrawals on a group basis and promote activities to reduce water withdrawals in areas with high water risks to conserve
water resources. When building a new plant, NOK conducts waterrisk assessments and promote production that takes into accountwater withdrawals and wastewater.

Groundwater conservation (Japan)
As an initiative to protect water resources, the Kumamoto Plant
has sponsored in a groundwater recharge project in the Kumamoto region promoted by the Kumamoto Groundwater Foundation.
In the project, farmers who own paddy fields in a groundwater
recharge area and companies and organizations that sign an ownership agreement with them grow rice together. The water stored
in the fields percolates into the ground and promotes the groundwater recharge. In 2020, due to the novel coronavirus pandemic,
the farmers were asked to plant rice on our behalf, but in addition
to the contribution to the conservation of water resources, we donated 300 kg of harvested rice to food banks and actively engaged
in other social contribution activities. We will continue to promote
our activities in collaboration with external organizations and strive
to conserve water resources.

NOK CORPORATION CSR REPORT 2021

66

The
Environment
Environment

2018■ Extremely highReduction of Water Consumption and Reuse of Water (Japan, China)
Changchun NOK-Freudenberg Oil Seal Co., Ltd. treats industrial
wastewater and reuses it in the company’s cooling systems. The
treatment helps reduce the amount of water consumption by 2,831
tons.
In Japan, we are making efforts to reduce water consumption. Miyagi NOK Corporation has successfully reduced their water consumption by 51.6 tons per month by changing the water feed to the
hot water washing tank for mold cleaning from a constant water
feed to a supplementary water feed.

Governance

65 NOK CORPORATION CSR REPORT 2021

Back wash

Water stress

8,000

5,000

TO DI
PROCESS

Sand Activatedfiltration carbon
tower adsorption
tower

Organizational

The NOK Group has been promoting the monitoring of water
withdrawals and wastewater volume at each plant globally to
reduce water withdrawals. The actual water intake and wastewater volume during FY 2020 were 8,254,000 m3 and 6,484,000
m3, respectively. In the production process, the NOK Group reduced water intake by changing the number of cooling towers
used that use water by introducing water-saving and water circulation equipment and optimizing the use of cleaning water.
The amount of water intake in FY 2020 has decreased from FY
2019 along with the reduction in our production due to the novel
coronavirus pandemic. However, due to growing concerns aboutwater risks globally, the NOK Group has set a clear three-year(FY 2020–2022) goal of“controlling the increase of water intake
globally.”To achieve the goal, the NOK Group is actively promoting internal water intake reduction activities and participating inexternal water resource conservation activities, such as groundwater recharge activities, to conserve water resources both inand outside the company.

(1,000 m3)

Raw water＊ AQUEDUCT: A water risk assessment tool published by the World Resources Institute (WRI). It provides a world map with information on water risks such as quantity

NOK Group s wastewater

Targets and Results

The NOK Group conducts water risk assessments on a group basis
to efficiently promote response measures to water risks. The resultsof the study on water stress at global production bases obtainedby using AQUEDUCT*, operated by the World Resources Institute(WRI), are as follows:

Participation in Communities andCommunity Development

The NOK Group works to protect water resources by identifying
and reducing the amount of water used in the manufacturing process of our products and by taking thorough measures to clean
wastewater. In addition, the NOK Group assesses the water risks
in each country and region to respond to different water risks depending on the country and region, and promote water resource
conservation activities tailored to the characteristics of each country and region.

RO unit

Water Risk Assessment

10,000Quality Assurance

NOK Group Policy

Environment

VOC emissions targets and FY 2020 results

Social Background

4,0 0 03,049

3,0 0 0
2 ,0 0 0
1,0 0 0
0

2010

2018

2019

2020
(FY)

Emissions (t)PollutantRelease andTransfer
Register(PRTR)

AtmosphereRiver/
Lake

Landfill

126

1

0

Transfers (t)SoilsawagesystemOff-site

0

0

323

Concrete Activities
VOC Reduction by Switching to Water-soluble Paints (Japan)
The Tottori Plant is promoting the switch to water-soluble paints
for the paints used in their products. As a result, VOC emissions infiscal 2020 were 116 tons, which was below the target of 130 tons.
Some products have not been switched yet, but the Plant plans
to complete the switch in FY 2021 and reduce VOC emissions bybasing the centralized paint supply system on water-soluble paintspecifications.
Use of Eco-friendly Auxiliary Materials (Japan)
Kumamoto NOK Corporation was able to reduce VOC emissions by
0.042 tons per year by replacing the methyl ethyl ketone used forcleaning equipment in the material process with another solvent.
NOK Elastomers Processing Co., Ltd. used lacquer thinner for some
types of cleaning, but by replacing it with eco-friendly thinner, they
have successfully reduced their environmental load.

NOK Group Policy
In order to contribute to the reduction of environmental burden, theNOK Group is developing products that contribute to next-generation eco-technologies, taking into account the entire product lifecycle from procurement of raw materials to manufacturing, transportation, use and disposal.

Reducing burden on products and the environment
Vibration and sound isolators, special lubricant products, coating products, wastewater
treatment membrane modules, separation
membrane modules, etc.

Extending the life of products
Le-μ’
s series, special lubricant grease, special
coating, RUSTECTOR series, etc.

Environmentally friendly NOK products
All NOK products contribute to the environment by supporting ourcustomers’products behind the scenes.
The functions of NOK products, backed by technology, range
broadly from sealing, liquid control, and vibration and sound isolation to low friction, membrane separation and more. These NOK
products are integrated into our customers’products and are used
in a variety of end products to perform functions to protect theenvironment, such as preventing emissions or leaking, transferring
efficiently, reducing burden, and extending the life of the product.
The NOK Group is committed to providing products and developing new technologies that help realize a sustainable society.

Product development related to new energy (fuel cell)
Cell seal for fuel cell, humidifying membrane
modules, etc.

The
Environment
Environment

5,0 0 0FY 2020 PRTR Results

Efficient energy transfer
The Le-μ’s series, iron rubber (polyurethane
elastomer) products, accumulators, solenoid
valves, actuators, thermally conductive rubber, etc.

Improvement of Exhaust Treatment Process (China)
Our group companies located in China are focusing on the treatment of exhaust gas in their manufacturing process.
Wuxi NOK-Freudenberg Oil Seal Co., Ltd. used to treat non-methane hydrocarbons (NMHC) with activated carbon adsorption andcatalytic oxidizer (CO), but by using a regenerative catalytic oxidizer(RCO) device in place of the substances, they were able to reduce
the NMHC emission concentration to less than 15 mg/m³ and reduce the total NMHC emission by 28.26 tons.
Changchun NOK-Freudenberg Oil Seal Co., Ltd. was able to reduce
VOC emissions by 0.373 tons by using an air collection cover, oilsmoke purifier, and activated carbon adsorption for exhaust treatment in the molding process.
Promotion of Green Procurement
Please refer to p. 39 for our promotion of green procurement.

67 NOK CORPORATION CSR REPORT 2021

GovernanceTarget Figure

3,049[t]VOCemissionsless than
FY 2010
results

Organizational

Total VOC emissions of the NOK Group
（t ）

VOC
emissions
5,855 [t] Less than
FY 2010
results

Recently, environmental risks have been recognized and causing
increasing concern across the world, including those related to climate change, resource depletion, waste treatment, and growing
demand for water resources. In order to reduce those risks andcreate a sustainable society, we cannot ignore the environmental burden of the products we use on a daily basis. Accordingly,
companies are required to develop products and technologies that
contribute to environmental conservation in consideration of theentire life cycles of their products, from the procurement of raw
materials to manufacturing, transportation, use, and disposal. Companies also need to make better use of renewable energy, thereby
contributing to the solution of environmental issues, such as climatechange and resource depletion.

Participation in Communities andCommunity Development

The NOK Group’s VOC emissions during FY 2020 were 3,049 tons,
keeping its VOC emissions below the group’s target of 5,855 tons.
NOK will continue to seek ways to reduce emissions from adhesives and paints at each stage of production so that the company can maintain or reduce VOC emissions. The company will also
study the development of technologies to prevent an increase in
VOC emissions when the use of organic solvents increases due toincreased production.

Evaluation

Quality Assurance

Targets and Results

2010

This
fiscalyear’sresults

TargetPractices

NOK believes that it is one of the social responsibilities of a company to comply with chemical substance regulations and customers’
self-imposed standards, which are becoming stricter every year. For
this reason, the NOK Group will reduce the substances of concern
used and emitted in the production process, grasp and manage
chemical substances throughout the product life cycle, and contribute to reducing the environmental impact of the entire supply chain.

TargetVOC
Emissions(Global)Baseline
Baseline
FiscalFigureYear

Not generating and emitting substances that impact the environment
Oil seals, O-rings, gaskets, electromagnetic
shielding rubber (EM Guard), mechanicalseals, metal bellows, etc.

Fair Operating

NOK Group Policy

TargetItems

Social Background

UNGC
Principle9

Labor Practices

Chemical substances are essential to our lives, but they also cause
problems such as destruction of ecosystems and damage to people. Achieving the goal“Achieve by 2020 that chemicals are usedand produced in a way that minimizes the significant adverse effects on human health and the environment”set forth at the 2002
Earth Summit (WSSD). Aiming for this, regulations on substancesof concern are becoming stricter year by year in each country. In
order to protect the Earth’s ecosystems and protect people fromthe adverse effects of these substances, companies are required
to comply with the regulations and manage and reduce their useof chemical substances in consideration of the entire life cycles of
their products.

6,0 0 0

Environmentally friendly products

Human Rights

Measures on Substances of Concern

NOK CORPORATION CSR REPORT 2021

68

Environment

Trend of Environmental Investments and Costs (Millions of yen)Standard of Environmental Impact Assessment for Design
Design / Production• Resource conservation by
downsizing• Improving product life

Energy consumption

Occurrence ofdisposal• Reuse• Low waste
design for easy
disassembly,
recycle design

899

464

Environmental preservation
costs

850

473

620

Total

1,773

1,372

1,084

（Millions of yen）

2,000
1,500

1,084

1,000

620

• Energy-saving design by
low friction of products

Application of the Standard of Environmental Impact
Assessment for Design in FY 2020
Number of
improvements(cases)1,080

13

Shonan R&D Center

164

96

Shizuoka

810

18

149

55

22

84

66

Kumamoto

101

3

Total

2,906

367

Effects of Environmental Conservation and Economic EffectNOK tracks the amount of investments and costs required for environmental conservation in its business activities each year with theaim of efficiently and effectively promoting environmental conservation efforts, aiming to achieve sustainable development.
In FY 2020, carried out energy-saving measures such as developing
energy-saving manufacturing equipment, introducing demand control systems for air conditioners, and switching lights to LED lights,
with a focus on measures that can be conducted at a low cost. In
addition to energy-saving measures, we focused on the improvement of wastewater treatment facilities, such as the installation ofwastewater basin alarm devices and renewal of tanks and pipes.
NOK is also introducing solar panels, which also serve the purposeof business continuity management (BCM).
Effects of Environmental Conservation
Reduction of CO₂ emissions…………………………………… 2,033 t-CO2
Reduction of landfill disposal volume ……………………………… 335 t
Economic Effect of Environmental Conservation Measures
Energy saving effect … …………………………………… 61.3 million yen
Gain on sales of recyclable materials ………………… 143 million yen

FY 2020 NOK Environmental Accounting
Category
Business Area Costs
Pollution Prevention
Costs

Millions of yen

Main Contents
Environmental conservation costs to control environmental burden caused bybusiness activities within business area
Investments in and maintenance and management costs related to pollution
prevention activities

Global Environmental Investments and maintenance and management costs related to global warming
Conservation Costs
countermeasures including energy conservation
Resource Circulation
Costs

Upstream and Downstream
Costs
Management Activity Costs
Research and Development
Costs
Social Activity Costs

Costs involved in dealing
with environmental damage

Investments and maintenance and management costs related to resource
recycling activities including waste disposal and recycling
Costs of controlling environmental burden that occurs in upstream anddownstream such as green procurement, etc.

Costs associated with management activities such as ISO14001 maintenance andoperation
Costs of research and development that contributes to the environment such as
the development of environmentally friendly products

Costs related to greening of business establishments and support for the activities
of environmental conservation groups
Costs associated with the removal of environmental burdens such as special
equipment and facilities

Investments

Costs

176.0

293.3

40.0

146.2

136.0

63.9

0

83.2

0

0

0

182.8

288.0

135.0

0

0.4

0

8.1

464.0

619.6

Fines, penalties and/or legal costs associated with the settlement of environmental accidents and complaints
Total
Aggregate total

69 NOK CORPORATION CSR REPORT 2021

NOK Group Policy
We at NOK Group assessed the impact and dependence of ourbusiness activities on biodiversity and ecosystem services. Basedon the results, we identified our course of action from the perspective of biodiversity conservation and established a uniform internal
regulation NOK Standards for Biodiversity Conservation in FY 2011.
This standard defines the biodiversity-related efforts we shouldmake in our business activities and emphasizes the necessity topromote biodiversity conservation activities based on the characteristics of the region.

Support for eco-supporters (Japan)
Continuing on from FY 2020, NOK is providing support for the“Enosui eco”program for ecology and ecological actions sponsored by
Enoshima Aquarium (Enosui). As a supporter, NOK assists in conservation efforts, including survey research into the diversity of livingorganisms and habitats in Sagami Bay, as well as beautification andwaste reduction in the region. Also, we are actively participatingin the Beach Clean activity. In FY 2020, 140 people participated,
picking up garbage on the beach. By building a relationship with thelocal community, NOK is contributing to biodiversity conservation.

Concrete Activities
NOK promotes biodiversity activities based on the characteristicsof the region in cooperation with local governments and residents,
including environmental cleanup and tree planting activities in theneighborhood of its factories. We are also developing products,
taking biodiversity into consideration, and will continue to contribute to biodiversity conservation through our business activities andproducts.
Biodiversity-friendly products (Japan)
NOK KLUEBER CO., LTD. is promoting sales activities for biodegradable lubricants. Biodegradable lubricants are decomposed into carbon dioxide and water by microorganisms, and help make productsthat have a low environmental impact in case of a leak due to an
unexpected accident. Biodegradable lubricants are used in equipment and machinery from which they may be released into theenvironment, such as port cranes, ships, amusement equipment,
construction machinery, and dental lubricants.

Tree planting (Vietnam, Thailand)
Synztec Vietnam Co., Ltd. has continued to plant trees, and theplanting area is now 2,110 m2. Thai NOK Co., Ltd. has also continued to plant trees twice a year as one of its environmental conservation activities. Every year, they continue to implement the activity
in collaboration with residents of the target area and government
agencies (IEAT). In FY 2020, they planted a total of 80 trees inmangrove forests that are shrinking. In order to protect the environment and raise awareness toward conservation, we will continue
to make efforts to protect the local environment with plans to allow
children and adults to have a closer relationship with the nature.

01,083.6
NOK CORPORATION CSR REPORT 2021

70

The
Environment
Environment

Tokai
Tottori2020 ( F Y )Our life is supported by the various benefits of biodiversity, suchas the provision of food and water and stable climatic conditions,which are essential for the continued existence of all humanity. In
recent years, an increasing number of living organisms have been
becoming extinct due to the destruction of the natural environment,
overfishing, and climate variability, leading to a rapid decrease inbiodiversity. Conservation of biodiversity is positioned as one of
the critical global issues among the SDGs, with countries acrossthe world making efforts toward that end. To create a sustainable
society, business enterprises also need to carry out their businessactivities with a sensitivity to conservation of biodiversity and thenatural environment.

Umigomi Zero Week (Japan)
The Fukushima Plant and TSK Corporation participate in the Umigomi Zero Week campaign promoted by the Ministry of the Environment and other organizations to prevent marine pollution causedby plastic and marine debris. In FY 2020, a total of 74 employees
participated in the initiative. They cleaned the area around the factory twice to contribute to the beautification of the nearby environment.

Governance

612

Kitaibaraki

0
2018
2019
■ Environmental preservation costs■ Environmental preservation investments

Social Background

Organizational

Fukushima

464

Conservation of Biodiversity

Participation in Communities andCommunity Development• energy-saving equipment
design by adoption ofenergy-saving parts

Application(cases)923

500• Minimizing heat dissipation range of molding
machinePlantsEnvironmental preservation
investments

Quality Assurance• Product design withenvironmental load
process selected• Improving product yield

2020

Practices• Non-use of
substances ofconcern

Use of resources

Waste

2019

Fair Operating

Diffusion ofsubstances ofconcern

Use

2018

Labor Practices

We assess the environmental impact of designs of new products,
new materials and new production machines in accordance withNOK’s Standard of Environmental Impact Assessment for Design.
Taking the entire product life cycle into account, NOK is working on
various designs including ending the use of substances of concern,
energy-saving designs, improved product yields, downsizing, longer
service life, low friction and low wear performance, reuse of products, and low waste and recycling.

FY

Human Rights

Environmental Impact Assessment for Design

Third-Party Opinion on CSR Report 2021
opinionCongratulations on the 80th anniversary of the founding.
The CSR Report 2021 marks this occasion and continues to fulfill the role of extensively disclosing NOK’s initiatives to a wide
range of readers as part of management that resonates with all
stakeholders, as outlined in the NOK Charter of Corporate Behavior. As I stated in the CSR Report 2020, the report is in thecompletion stages as a communication tool of a B-to-B company
for multiple stakeholders. However, in this year’s report, various
groundworks for future initiatives were introduced, and both
continuous improvement efforts and the direction NOK is aiming
for were well communicated.
There was a strong recognition of the integration of CSR with business activities. The substantial disclosure regarding unique value
creation also stood out. In FY 2020, the various activities of the
NOK Group were organized within the framework of the SDGs.
However, the“NOK Group Business Overview and SDGs”sectionof this year’s report lists the relationship between various products
including oil seals and which social issues they contribute to solving in relation to the SDGs. These initiatives can be said to further
embody value creation by solving social issues through business activities. I think this is valuable information for understanding“Green
Product,”which is the main pillar of the environmental vision, NOK
Twin Green Plan 2030.
I was also impressed by the urgency communicated in the top message of the newly appointed president, Mr. Tsuru. Amid increasing
uncertainty, a strong awareness of the value creation story wasconveyed by focusing on flexible response to change and the importance of corporate sustainability. As part of these efforts, it isworth noting that the upper management has emphasized the needto further strengthen the link between environmental activities andbusiness, including Q&A sessions, by focusing on the rapid environmental changes at the root of climate change.
Progress in infrastructure improvements to promote sustainability
was also a focal point that supported the top message. The establishment of an ESG committee directly controlled by the president,
a carbon-neutral subcommittee, and a scenario analysis subcommittee under the ESG committee will be considered as the creationof a system for examining strategy in line with the TCFD framework
mentioned in the report. This increases expectations that long-term
responses to carbon neutrality will be disclosed as concrete strategies in the future. Along with developing these systems, robust
environmental management initiatives have been further enhanced,
including the completion of environment risk surveys at all businesssites, the establishment of an environmental commendation sys-tem, and the commencement of environmental questionnaires for
suppliers. This can be said to be a display of NOK’s qualities.
As such, while showing one destination as a CSR report, I wasable to get a strong feeling of how NOK will aspire to move forward to the next stages, and this is what I want to see more ofin the future.
Firstly, content should be restructured in terms of improving theclarity of the value creation story. As mentioned above, in line withhow the direction has been clarified in terms of environmental factors, it is desirable to have a structure that organically shows theconnection with value creation for other factors. In light of NOK becoming a signatory to the UN Global Compact under the management principle of“the Management has to run the Company basedon feelings of love and trust in its employees,”one option could be
to show the positive aspects of the human capital that was introduced from various perspectives in this year’s report. The need forhuman resource development and skill transfer was mentioned as
an element to support the principle of manufacturing that“quality is built in at the production process.”However, if this strength
were positioned as an intangible asset in the value creation story,
the new direction would become significantly clearer. At the sametime, the orthodox approach of clarifying NOK’s long-term visionand key issues to reach this vision could also be effective as this canalso be said to be the foundation that supports the value creation
story.
I look forward to NOK’s further progress in the new direction you
have shown in this year’s report.

Development Bank of Japan
Research Institute of

Capital FormationExecutive Fellow

Keisuke Takegahara

Response to Third-Party Opinion
Most of the products we have produced in the 79 years sinceNOK’s founding are very small, and typically people do not noticethem. Even some employees do not have a good understanding of
how these products are utilized in society. This was one area of
focus for this year’s report, so we included content to help stakeholders, including employees, understand the relationship between
the NOK Group’s product lineup and social issues.
This time we were advised to“restructure content from the perspective of the value creation story.”At the NOK Group, underthe management principle of“respecting human dignity,”we have
responded to the changes of the times by focusing on human resources to improve corporate value. However, as was pointed out
by Mr. Takegahara, organizing our human resource competencies

71 NOK CORPORATION CSR REPORT 2021

and positioning them within the value creation story would make iteasier to understand for our stakeholders. We extend our gratitude
to Mr. Takegahara for his valuable advice.
We will promote our CSR activities in response to changes of thetimes and create a report that communicates this message.

Senior Operating Officer

General Manager of Corporate
Administration Office

Noriyuki Takahashi