CSR Report 2016
Corporate Social Responsibility ReportAbout Media for CSR Report

CONTENTS“CSR Report 2016 – Nippon Light Metal Group” reports the CSR efforts
during FY2015. Please go to our company website for more detailed
contents, past activities, and financial information.

3

Editorial Policy

4

Message from the CEO

Non-Financial Information
CSR Report(Booklet/PDF)

Websitehttp://www.nikkeikinholdings.com/csr/

Main Chapter
6

Organizational Governance8

Human Rights

10

Labor Practices

12

Environment

14

Fair Operating Practices

15

Consumer Issues

16Community Involvement and Development

Financial Information
Websitehttp://www.nikkeikinholdings.com/pages/ir/

Annual Report

18

Corporate Profile, Business Summary

20

Third Party Opinion

21

Independent Assurance

Fact Book

IR Latest News

Editorial Policy
Introduction
This report is intended to describe the NLM Group’s views and approaches
regarding CSR to all stakeholders in an easy-to-understand way and toobtain their understandings.
The NLM Group recognizes various social challenges described in the

22

Data

core themes of ISO26000 and promotes CSR activities to contribute to
the solution of those challenges. Your opinions and feedback on the NLMGroup’s activities for each challenge would be greatly appreciated.
Reference Guidelines
This report used “Environmental Reporting Guidelines (2012)” prepared by
the Ministry of the Environment and “G4 Sustainability Reporting Guidelinesof the Global Reporting Initiative” as references.
Period covered
Data collection period for this report is from April 2015 to March 2016.
*Data prior to and after this period is also partially included.
Boundary
Unless otherwise specified, Nippon Light Metal Holdings Co., Ltd. and its
consolidated subsidiaries are covered. A total of 76 companies.
However, for the “Environment”, Nippon Light Metal Holdings Co., Ltd. andits consolidated subsidiaries in Japan are covered. A total of 24 companies.
Publication period
October, 2016 (Next edition: scheduled in October, 2017, Previous edition:
October, 2015)
Independent assurance
Check markindicates that a third party, KPMG AZSA Sustainability Co.,

Ltd., has provided independent assurance for the reliability of the data.

2

3

MESSAGE FROM THE CEOTeam NLM - Groundbreaking
Innovator of Aluminum and Beyond
An intensity seven earthquake, with its seismic center in the Kumamoto area of Kumamoto prefecture, occurredon April, 2016, and its aftershocks still continue to affect that area. Our deepest sympathies go out to all theGroup-wide Compliance Reinforcement

victims of the earthquake, and we hope that normal conditions are restored as soon as possible.
The NLM Group continues with its support activities through its supply chains including relief money andsupplies. Meanwhile, hereafter the NLM group strives to promote and improve a wide variety of its products for

In February 2016, Nippon Light Metal Co., Ltd., our subsidiary,

disaster preparedness and disaster mitigation that fully utilize the properties of aluminium.

received a cease and desist order and a payment order forsurcharge from the Japan Fair Trade Commission for violation of the
Antimonopoly Law. We would like to express our deepest apologies

Status of mid-term management planfor the great concern and trouble this incident has caused to
stakeholders including customers.

The NLM Group has been carrying out the three-year mid-term

through strategies by regions and categories,” and to enhance

We have reported our detailed recurrence prevention plan on

management plan started in April, 2013. As with the global resource

the “reinforcement of the business structure and strength of thepage 14 of this report. We aim to further reinforce our group-widecrisis, the aluminium market was under circumstances where its

corporate structure.” The achievement of these numerical targets

compliance system.

market price plunged by approximately 20% in these past three

has given us greater confidence in realizing that we chose the rightyears. However, the results for the year ending March 2016 havestrategies.

The NLM Group’s CSR is captured in our corporate identity thatmainly achieved the goal as shown in the diagram below. I believe

Also, it is what we call “a cross functional collaboration”, a“we are committed to making contributions to improve people’s lives

that this is a result of our steady implementation of the mid-termgroup-wide development activity, that supported these schemes.

management plan.

and preserve the global environment by continuing our application

This is an integrated activity of development, manufacturing, anddevelopment of aluminium and alminium-related materials forever”.

The NLM Group has long sought the business that can replacesales, which is to “create, manufacture and sell.” Not only sales

aluminium refining operations. The Group has formulated the mid-

but also development and production people would face various

term management plan five times from fiscal year 2002 throughstakeholders’ needs and address those needs as “Team NLM”.

this previous fiscal year and continued its efforts in shifting to newThus, we have sought for and realized the added value which only

material manufacturers, in other words, establishing high-value

the NLM group can create.

added businesses by making a clear distinction from management

In the new mid-term management plan, we aim to secure ourthat focuses on expanding operations. Our strategies in theunrivalled position as a “ground breaking innovator of aluminium andprevious mid-term management plan were designed to achieve

beyond”, by strengthening the driving forces as this “Team NLM”

“a creation of a new products and new business model throughincluding profound insights into aluminium materials, processing andclose cooperation of the group” and “business development

development backed up by experience, and service capabilities.

For fiscal year 2016, we have started activities to incorporate thiscorporate identity into more specific individual themes. We will
provide you with the results for 2015 and such themes in ourreports. We would appreciate your straightforward opinions on thisCSR report.

August 2016
Nippon Light Metal Holdings Company, Ltd.
President and Chief Executive Officer

Key indicators of the mid-term management plan and actual achievement(100 million yen)(100 million yen)(%)

5,000 management plan target 4,644
4,400 Previous mid-term

250

30.0

4,000

200

New mid-term

management plan target

4

3,719

3,000

150
140

2,000

100

1,000

50

0

0

2012

2015

(Fiscal Year)

25.0
23.6

New mid-term
management plan target

155
Previous mid-term
management plan target

20.0
15.0

Trend of overseas
sales ratio
Previous mid-term
management plan target
New mid-term
management plan target

8.9

2012

2015

(Fiscal Year)Net D/E Ratio

New mid-term
management plan target
Previous mid-term
management plan target

9.0

8.0

20.8

1.6

6.0

1.5

1.4
1.2
1.1
1.0

16.8
4.0
2.0

2012

(times)Previous mid-term
management plan target
New mid-term
management plan target

1.1
↓ ↓

0.8

5.0
0

(%)
10.0

10.0

34

ROCE
↓

Net profit

↓

Sales

2015

(Fiscal Year)

0

0.6

3.7

0.4
0.2

2012

2015

(Fiscal Year)

0

2012

2015

(Fiscal Year)5

Corporate GovernanceNippon Light Metal Holdings Co., Ltd. announces its earnings reports

In order to address various risks surrounding its businesses, theoperations and places its group companies under the umbrella of its

quarterly through the Tokyo Stock Exchange as well as through mass media

NLM Group is committed to steadily increase its corporate value byholding company, Nippon Light Metal Holdings Co., Ltd.

companies based on the disclosure rules. The President/CEO, himself,

putting in place appropriate controls and practices in agreement with

Nippon Light Metal Holdings Co., Ltd. has its own Board of Auditors

provides explanations with respect to earnings and management policies

the Group’s business strategies. The NLM Group has identified eight

and focuses on realizing the prompt and transparent management

both at the full year and the second quarterly earnings announcements.

risks requiring group-wide comprehensive management, as “major

as follows:

The earning presentation materials are available on our website.

risks”, and designated a department in charge of risk management.

- Hire three outside directors (Designate two of them as independent
board members)- Hire three outside auditors (Designate all of them as independent
board members)- Set the term for directors to be one year
- Introduce an officer system and separate management frombusiness execution.

Bi-annually(June and December)

Governance Structure Chart

Appointment/
removalPresident and CEO▲▲

Internal audit

内
部
監
査

Central CSR and Audit Office

Exchange of
opinions

Audits reports/Exchange of opinions

Nippon Light Metal Holdings Co., Ltd. considers the general meetings

2016（Fiscal Year）

Internal control system

Naturaldisasters andaccidents

Major risks

The NLM Group is intended to comply with laws, manage risks in
its business process, streamline its operation, and prepare the fairLeaks ofcorporate data
secrecyfinancial reports. The Group also works on further enhancing its
internal control system. Moreover, the Group works towards ensuring
legality and efficiency of its business operation as well as improving

Health andsafety issues
Information
system issues

and reviewing the system using examples from the opinions from
Board of Auditors and outside directors.
Furthermore, the NLM Group appoints a responsible official for
its group companies and departments to promote maintenanceand improvement of the internal control system, thereby making
continuous improvements.
The information on the operation status of the internal control system
is shared on a monthly basis at the meetings with the full-time auditors.

For the future

CSR Promotion Plan (Excerpts from FY2016 CSR Promotion Items)

Promotion Themes
Maintenance and Strengthening of Corporate Governance

Major Activity Plans
Handling of "Japan's Corporate Governance Code"

KPI
Coverage and handling rate

Dissemination of Group's compliance codeof the shareholders as a valuable event where top management isEnhancement of Complianceable to have a direct dialogue with all the shareholders. In order toInformation Security

Establishment of information management standards and group-wide deployment Coverage rate for companies that introduce the standards

gain understandings of the matter to be reported and resolved as

Overseas risks

Operation and training of the overseas safety support program

Number of trainings completed

quickly as possible, internet is used for information disclosure andBusiness continuity risks

Preparation of BCP (Business Continuity Plan)

Number of BCP trainings completed

voting. Also, the sites for the meetings are carefully selected to ensure

Communication enhancement with shareholders andinvestors

Investor briefing sessions for corporate investors

Number of sessions held

Factory tour for corporate investors

Number of tours held

better access for participating shareholders.
Many shareholders came and joined the 4rd annual meeting of theshareholders held on June 24, 2016 and offered various opinions andDistribution of booklets to all employees

Number of booklets distributed

Community Involvement andDevelopment

2015

Export control
systems

Consumer Issues

Communication with shareholders andinvestors*2 Fair Disclosure: refers to a fair disclosure of information and is something that must be promptly
disclosed to general investors in the event that a corporation tells undisclosed and important
information to specific market participants.

Fair Operating Practices▲

Operations,subsidiaries andaffiliates

Compliance Committee
CSR Committee
Quality Committee
Environment Committee,
etc.

Statutory
auditoraudits▲

Officers

Group Executive
Committee

・ Outside Auditors
Auditors

Accounting
audit

Appointment/
removalAudit reports
Directors/
Outside Directors

Board of Auditors

Board of Directors

Appointment/removal

Environmental
issuesEnvironment

Appointment/removal

Negligence oftimely disclosureof information

Product andService Defects

Labor Practices

Shareholder newsletters

Dividends per share(the period ending March)

2014

Major risks

Major IR-related communication tools

Quarterly (Every quarter)* 1 Japan’s Corporate Governance Code: This code covers a code of conduct, which listed companies
should follow, including shareholders’ rights, roles of board of directors, and whole concept ofexecutive compensations. It was established by Tokyo Stock Exchange in June, 2015.

“reviewing the information management system.”

93 times per year

Earnings briefing (Japanese and English)

code and aims at achieving effective corporate governance.

environmental management system at overseas production sites” andBi-annually(Full year and Half year)

Annually (September)

Accounting Auditor

2013

Financial results briefing for corporate investors andsecurities analysts
Personal interviews with corporate investors andsecurities analysts

Fact Book (Japanese and English)

Exchange of
opinions¥3

During FY2015, the Group implemented “checking theAnnually (September)

Reports andproposals¥5

and working on reducing risks.

Annual Report (English)

Audit reports¥4

directors in charge every half-year period, holding monthly meetings,

Code*1.” The Group carries out the measures for each principle of the

Appointment/removal¥6

rules by enhancing mutual communications between shareholders,investors and the Company.

accordance with the principles of “Japan’s Corporate Governance

General Meeting of Shareholders

FOCUS

The Group checks the status of these major risks by interviewing the*2

Major IR activities (FY2015)

The NLM Group strives to establish and maintain the structure in

The NLM Group works on the development of acorporate governance system capable of making
the most use of its organizational strength basedon the understandings that the corporate value andobligations for social responsibilities are realized
only through strong corporate governance.

Additionally, the Company strives to follow its fair disclosure

Human Rights

The NLM Group works
towards improving its
corporate value andensuring sustainablegrowth as corporate group.

The NLM Group adopts a holding company structure in its business

Organizational Governance

ORGANIZATIONAL GOVERNANCE

Risk Management

Enhancement of IR activities

Multilingualization of information transmission
Communication enhancement with stakeholders

Validation of the footsteps of sustainable growth(Editing the history of the 80th anniversary of the company)

questions.

67

Human Rights Policy

HUMAN RIGHTS

2. Non-discrimination
The NLM Group, in its various corporate business activities, will neither
indirectly nor directly engage in any acts including discrimination,harassment, (abuse), and slandering regardless of reason (e.g., sex,
race, creed, religion, nationality, ethnicity, disability, LGBT, etc.). The
Group will not overlook any of these acts, either.

4. Creating a rewarding workplace
The NLM Group will prohibit child labor, slave work, and overwork.
Instead, the Group will ensure employees their freedom of choice in
employment as well as decent work hours and wage and arrange a
comfortable work environment that is healthy and safe. Moreover, theGroup will increase its communication with employees and create arewarding workplace where everybody respects one another.

Employment rate for persons
with disabilities

FOCUS

2.41
2.09

2.07

2.05

2.06

2.0

1.94
1.5

1.92

1.91

1.89

2.12
Legally mandated
employment rate 2.0％

The company visited this time stated that “it was our first time toreceive a field survey by users”, however they were able to understandthe NLM Group’s human rights policies. The Group will continue to
conduct visits with suppliers and work on sharing its human rights
policies.

Employment of individuals with disabilities
Nippon Light Metal Co., Ltd., with its purpose to secure stable andlong-term employment for people with disabilities, established
Nikkeikin OhLis Co., Ltd. This allows everyone to work on projects asa team with a sense of unity and to take more responsibility for a wide
range of tasks. Nikkeikin OhLis Co., Ltd. is currently located both in
Shizuoka and Tokyo, and primarily performs cleaning work for facilities
and equipment and provides support work for cafeteria and offices.
Clients highly recognize their careful and accurate work.
Nikkeikin OhLis Co., Ltd. will continue to expand its job categories
and employment opportunities for people with disabilities.
Also, on January 26, 2016, Nikkeikin OhLis Co., Ltd. received its
certification as a special-purpose subsidiary in accordance with “theAct on Employment Promotion etc. of Persons with Disabilities”.

Interview with the company staff

Safety stickers on the wall

Measurement of environmental load

Females consist of only 4.3% (3.5% in the previous year) of the
management sector in the NLM Group, which is a relatively low

2015

2016 （Fiscal Year）

also implements awareness-raising policies for female employees. As
part of these efforts, the Group provides “Fortuna training” which istargeted for female employees. This training is intended not only for

Employees in the Kambara Complex of the Nikkeikin OhLis Co., Ltd.

For the future
Promotion ItemCSR Promotional Plan (Excerpts from FY2016 Promotional Items)
Major Activity Plan

KPI

trainees but for their supervisors by teaching them the awareness-

Human Rights Protection

Establishment of Human Rights Policies

raising and instructional methods.

Sharing of Human Rights Policies

Interviews with domestic and overseas suppliers

Number of companies interviewed

Promotion of Diversity

Active employment of and expansion of job categories for people with disabilities through theestablishment of a special-purpose subsidiary

Exceed 2.0% employment ofpeople with disabilities*M curve: A phenomenon that female labor force participation rate drops once in their marriage andchildbearing ages and increases when their child care reaches a certain level.

8

management.

Community Involvement andDevelopment

As of June 1st, every year.

statuses of occupational safety management and work environment

Promoting active participation by females

on enhancing a system to resolve the M curve* among females, and

0

2014

away and confirmed the presence or absence of child labor and theremains an issue. In order to address this issue, the Group works

～
～

2013

We also visited the factory which is located approximately 300km

composition rate. This indicates that recruitment of female workers

Legally mandated employment rate 1.8%

2012

management about their human rights situations at the head office.

Diversity

Toyo Aluminium K.K.

2.5

manufacturer in fiscal year 2015. We conducted interviews with theConsumer Issues● Nippon Light Metal Company, Ltd.

(%)

7. Sharing of the policy
The NLM Group, to the extent where the organization can have an
impact on, will require the introduction and implementation of this policy.

suppliers. We did the on-site visit with a Chinese metallic silicone

Fair Operating Practices

6. Measures to the conflict minerals issues
The NLM Group will not use four minerals (3TG) comprising of tin,tantalum, tungsten, and gold that were mined in Democratic Republicof the Congo and its neighboring countries and any products using
these minerals. Also, with the cooperation from its suppliers, the Groupwill identify the country of origin of such 3TG included in the materials
procured and the products and disclose such country of origin as needed.

local suppliers in order to share its human rights policies with theEnvironment

5. Remedy and correction
In the event that any possibilities to negatively impact human rights arefound through monitoring, the NLM Group will promptly provide help
and resolve such possibilities. Furthermore, the Group will arrange andimplement an internal whistleblower system to fully protect the reporter.

auditing through the purchasing managers’ on-site visits with

Nikkei Matsuo Co., Ltd. manufactures
aluminum automotive parts using molds. I
am in the Sales Department and in chargeof customer service. This time, I worked on
improving proper mold control while serving
as a bridge between the factories who want to get rid of molds and thesales who want to keep as many molds as possible. I was able to makecontinuous improvements by requesting the customers’ approvals for
disposal and by researching the controlling methods implemented by thegroup companies, thereby making a gain of approximately 500,000 yen.
Through these activities, I have learned the significance of “playing
an active role in the company and for customers” and “taking actions
with my own passion.”
Supervisor’s comment
Atsushi Miyajima
Sales manager at the time
Although it was a challenging task for Ms. Uchibori to get customers
and other departments involved, she was able to achieve her task
successfully. This gave her a great deal of confidence. And, we expectthat this experience will lead her to a broader range of work in the future.

Labor Practices

The NLM Group values human rights and will not
tolerate any discrimination, harassment, and abuse
for any reasons. Moreover, with its self-awarenessas a global corporation, the Group will give extra
considerations to any circumstances and situations
jeopardizing human rights in the scope of its businessand take diverse human resources.

3. Growth of corporate culture
In order to cope with actual and potential challenges relating to humanrights, the NLM Group will endeavor to enhance each employee’s proper
knowledge and understanding through continuous and comprehensive
educational opportunities and to foster our corporate culture that
respects human rights through human resource development.

The NLM Group facilitates an exchange of opinions and on-site

Human Rights

We respect humanrights and work on
sharing our humanrights policies.

Yoshie Uchibori (Trainee in FY2015)
Sales Department,
Nikkei Matsuo Co., Ltd.

Organizational Governance1. Compliance with relevant laws and regulations and respect forinternational standards
The NLM Group will comply with the laws and regulations of humanrights in each country and respect the international standards.

Human Rights Due Diligence in the Supply
Chain

Comment from the Fortuna trainee:

9year 2014. In fiscal year 2015, five group companies and their labor

Implementation of labor auditsof women”, by exchanging opinions about each company’s situations

bi-annually to share information on personnel and labor affairs

and challenges. The Group will continue to facilitate a dialogue

including its responses for the amendment to relevant laws. In the light

circumstances beyond control, the Group began to implement labor
audits from fiscal year 2014.
The Group reviews the maintenance and operation status of

The NLM Group develops a mid-term course of action in the health andthe regulations in the labor audit by checking 335 items preparedsafety committee in order for the Group as a whole to perform healthin accordance with various law amendments and environmental

and safety activities on an ongoing basis. There are four categories

changes. The Group summarizes the audit results as suggestions andin the health and safety activities: “field capability”, “management

makes improvements. Moreover, the Group conducts follow-up audits

capability”, “technical capability”, and “health capability.” The Groupto confirm whether appropriate improvements have been made.

develops and implements a program per each category.

in two years. The Group provided guidance and made improvementswith regard to the appropriate use of a flexible working-hour systemand preparation of a family care leave request form.

Enhance healthcapability

8

5

2014

2015

Instant access to employees assigned
overseas
To be prepared for unforeseeable circumstances including disasters
and terrorist attacks domestically and internationally, the NLM
expatriates, and their families. As part of such effort, in order topromptly and correctly understand the safety of the employees

Workplace and personnel development

traveling or assigned to the interested states in times of emergency,
Development and implementation of
the independent study group for safety

Overseasdevelopment

SMS* promoter/administrator development
Safety audit/SMS* certification
Risk reduction based on risk assessment
Development of safety engineer and safety foreperson
Countermeasures against backache and heat stroke/
Prevention measures for passive smoke

Mental health measures/ Infection control measures*SMS: Safety Management System

In terms of the enhancement of “management capability”, the Grouphas been expanding its original “Labor Health and Safety Management

143

Worker Dispatching Act

20

The Act on Securing, etc. of Equal Opportunity andTreatment between Men and Women in Employment

52

Management Systems were established, will receive final permission

Child Care and Family Care Leave Act

12

for admission after going through the Group’s internal examinations.

Labor Contract Act

24

Elderly Employment Stabilization Act

12Part-time Work Law

25

Trade Union Law

3

The Act on Employment Promotion for the Disabled3

health and safety management for all the office in the Group to be

Applicable contracting laws

41

internally certified.

System (SMS, Nippon Light Metal Holdings, Co. Ltd. style) since 2012.
The offices and departments, where the Labor Health and Safety

15 offices have already passed the examination and have obtained
certifications. The effect of such certification is reflected in theaccident occurrence rate for the certified offices. It is lower than thatfor the non-certified counterparts.
From now on, the Group will continue to maintain and strengthen

For the future

the Group established a system of instant access to employees
assigned overseas and has been implementing that system since
fiscal year 2014. Moreover, training is being provided (seven times
in two years) to confirm applicable or non-applicable information ofbusiness travelers for the entire Group within a two hour period.
Four applicable cases occurred in these two years. Fortunately no
employees were involved in any accidents/incidents. The Group willcontinue to conduct efforts in ensuring safety of employees assigned
overseas.
[Cases that implemented the instant access of employees assigned overseas]
May, 2014

Martial law in Thailand

August, 2015

A series of terrorist bomb attacks in Bangkok

November, 2015

Multiple terrorist attacks in Paris and Turkey

January, 2016

Terrorist bomb attack in Jakarta

Voice of expatriate employee
President,
Nikkei Trading Indonesia

Hiroki Katahira

I have been assigned to Jakarta city since September in 2014. The
company consists only of two local employees and one Japanese employee,
therefore I must solely conduct operations. On January 14th, 2016, about ayear from my assignment, a terrorist bomb attack occurred at a coffee shop
which is located about 10 kilometers away from our office. As soon as theattack occurred, I was contacted by the headquarters and others to confirm
the safety information. I felt secure by having many people watch over me.

CSR Promotional Plan (Excerpts from FY2016 Promotional Items)

The NLM Group facilitates an exchange of opinions and information
sharing on labor conditions on a regular basis between labor andmanagement aside from engaging in economic negotiations.
Furthermore, as a place to exchange information between labor and

2012

2012

* Accidents resulting in more than one lost work day except for commuting accidents* The past numbers for Nippon Light Metal Co., Ltd. were corrected due to changes to its coverage ofaccidents.

Group aims at protecting the safety of overseas business travelers,Year 2016

Labor Standards Act

Relationship with Labor Unions

2011

0.29
2013

Community Involvement andDevelopment

8

0.64
0.28

0.00

0.70
0.59
0.53

Consumer Issues

8

Number of items

0.71

1.06
0.89
0.58
0.51

0.65

0.84

0.52

1.06

Fair Operating Practices

Applicable laws

Year 2015

0.94

1.00

NLM Group

Environment

Enhance technicalcapability[Number of items to be audited concerning applicable labor laws]

FOCUS

Enhance field
capability
Enhancemanagement
capability

Labor audit

Number of employees who took childcare
leave (Nippon Light Metal Company, Ltd.)Year 2014

Mid-term course of action

Safety activities for teamwork

The audits were conducted on six out of thirty target companies

0.5
0

The Group’s safety activities

1.17

1.05
1.0

Nippon Light Metal
Company, Ltd.

Labor Practices

The NLM Group aspires to create a work environment
where each employee feels safe and securing while
generating stable employment opportunities andensuring appropriate compensation as a fundamental
practice. Moreover, the entire group implements longterm human resources development from a global
perspective. Furthermore, the group encourages theestablishment of a work-life balance for employees
by improving their welfare and work environment.

continually on the basis of good labor and management relationship.

management in these recent years and with consideration for possible

1.5

Average for Japan
Aluminium Association

Human Rights

We will move aheadon creating a safe
and secure work
environment anddeveloping globalized
human resources.

of wide-ranging and rapidly changing environments surrounding labor

between labor and management to improve its labor conditions

Average for manufacturers

Organizational Governance

LABOR PRACTICES

unions joined and held a discussion on a topic, “career advancement

The NLM Group holds regular meetings of human resources managers

Lost time injuries frequency rate

2013

2014

2015 (Fiscal Year)

management within the Group, the roundtable conference for the

Promotion Item

Major Activity Plan

KPI

Compliance

Development of personal information protection system for employees

Responses to globalization

Holding of global meetings on human resources

Attendance rate

Enhancement of work-life balance

Enhancement of child-rearing support plan

Turnover rate following the birth of one’s first child

Health and safety activities

Comprehensive enforcement of stress check test and appropriate follow-ups

Enforcement rate

Group’s labor and management has been held once a year since fiscal

1011

Approach to biodiversity

Basic Environmental Policy

TOPIC

The Shimizu Plant of the Nippon Light Metal Co., Ltd. uses seawater

its operation in 2015. Thus, the operation of this facility
projects 590 tons of raw materials to be recycled andthereby reduces 760 tons CO2 annually.

Greenhouse gas emissions reduction initiatives
The NLM Group’s FY2015 greenhouse gas emissions were 768
thousand tons, an approximately 3% increase from the previous
fiscal year. This increase was due to an increased production, a risein emission factor* of electricity, and an increased number of groupcompanies. Additionally, the greenhouse gas emissions per net sales(basic unit) was 2.09 tons –CO2 /million yen as a result of the energy
saving approach.

745

695

748

768

500

0

18%

Scope 2

: 481

Scope 3 : 1,927
Unit: Thousand tons-CO2

2012

2013

2014

2015

2020 (Fiscal(Target)Neutralization treatment facility run by the gas emitted from the boiler>> Basic Policy
The NLM Group will take the following approaches for theconservation of biological diversity and the sustainable useof its components:

Environment related accidents andemergency preparednessYear)* As for the hydroelectric power generation at the Kambara Complex of the Nippon Light Metal Co.,
Ltd., FY 2015 and FY 2020 (target) emissions were calculated using the user-end CO2 emissions
coefficient for fiscal 2014 announced by the Federation of Electric Power Companies of JapanThe NLM Group develops and operates a prompt reporting system forenvironmentally related accidents and emergency preparedness for
those accidents occurred domestically and abroad.
There were no penalties, lawsuits, and forfeitures for fiscal year 2015.
However, an oil spill accident occurred at the Shinjo manufacturing>> Specific Approaches• Consider the protection of ecosystems around the plants andoffices• Communicate with local communities and coordinate activities
with them• Take into account the conservation of biodiversity in the supply
chain• Provide consideration for any impact on biodiversity

plant of the Toyo Aluminium K.K. on May 11th, 2015. The oil recovery
was immediately done, therefore the damage was minimized. The
Group completed countermeasures against similar oil spill incidents
by raising the breakwater and reinforcing the preventative measures
for underground sewage. Moreover, the Group implemented thesecountermeasures to the sites* that have similar facilities.
Sites*: Scope and unit of environmental management system to be applied

The greenhouse gas emissions per net sales (basic unit)(ton-CO2/million yen)
3.0
2.5

For the future

CSR Promotional Plan (Excerpts from FY2016 Promotional Items)

2.41
2.11

2.08

2.0

2.14

2.09

Promotion Item

Major Activity Plan

Environmental management system

Preparation for transition to a certification of ISO14001:2015 edition

KPI

Scope 1 : Amount of greenhouse gas emissions directly generated by corporations
Scope 2 :	Amount of greenhouse gas emissions indirectly generated by corporations dueto their electricity and energy usages
Scope 3 :	Amount of greenhouse gas emissions from supply chain indirectly generated
by corporations

1.5

Human resource development

Participation of the environmental managers in the environmental field audits at other sites

Number of participants

1.0

Promotion of environmentallyfriendly offices

Stabilizer equipment containing high-concentrations PCBs

Number of sites registered for treatment

Understanding of the amount of low-concentrations PCBs held

Percentage of PCB content found

0.5

Reduction of greenhouse gas

Establishment of a new greenhouse gas emissions reduction initiatives

Greenhouse gas emissions, basic unit

: We have received independent assurance by KPMG AZSA Sustainability Co.,
Ltd., for the reliability of the data.

0

Approaches to biodiversity

Promotion of biodiversity conservation activities

Number of sites performing the activities

CompliancePreparation for the Mercury Pollution Control Law and the revised Waste Disposal and Public Cleaning Law (handling of mercury)Completion rate

12

Community Involvement andDevelopment

71%

: 287

2011

The NLM Group Biodiversity Guidelines (excerpts)

Consumer Issues

2005(Baseline)

2016.

Fair Operating Practices

779

To promote these biodiversity approaches across the Group, the
NLM Group formulated the Group’s biodiversity guidelines in February,• Works on understanding the impact of our business activities on
biodiversity• Strives to engage in biodiversity-friendly business activities inorder to promote the sustainable use of biodiversity and reducethe impact of our business activities on biodiversity.
• Aims at developing a promotion system for these approaches.

972

1,000

Monitoring of the drainage at the Shimizu Plant

Environment* Emission factor
Electricity: End-use CO2 emission intensity of last fiscal year announced by the Federation ofElectric Power Companies of Japan (for FY2010 and FY2011 after reflecting credits)
Fuel:
CO2 emission as per heat value and calorific value per each fuel, which are set forth on
the enforcement regulations of May 2006 Law Concerning Promotion of Measures to
Cope with Global Warming

1,143

Scope 1

Metal Co., Ltd. is aluminium hydroxide, which becomes

the boiler combustion gas was established and began

1,500

11%

discharged from the Shimizu Plant of the Nippon Light

water quality (pH) in the major drainages started in 2015.

neutralization treatment facility using CO2 included inGreenhouse gas emissions

Greenhouse Gas emissions by the NLMGroup

The main component of the waste water and polluted mudof discharge water, the observations on fish, water temperature, anda raw material for alumina. In order to recover this, the(thousand ton-CO2)

FOCUS

been done. Therefore, in order to figure out the ecosystem effects

discharges water directly to sea through a drainage. Although fish

Labor Practices

The NLM Group proactively seeks to remain inharmony with the environment across all of ourcorporate activities. The Group wishes to contribute to
the realization of a truly enriched society through ourenvironmental contribution not only with aluminium
products but also through proactive reduction of theenvironmental load in the manufacturing process
and supply chain.

from sea was found in the drainage, no regular observations haveStart-up of the neutralization
treatment facility operated by theboiler combustion gas

that they meet the discharge standard after using such water andHuman Rights

The NLM Group aims
at the realizationof a sustainable
society that lives
together in our global
environment.

and industrial water as water for business use. The Plant ensures

Organizational Governance

ENVIRONMENT

Environmental problems are no longer merely local issues but becoming
bigger and severe enough to affect not only our global environment but
also the very foundation of human existence. Thus, various efforts havebeen required by countries, communities, citizens, and corporations, inorder to establish a sustainable and recycling-based economical societythat lives together in our global environment.
With this awareness, the NLM Group proactively seeks to remain inharmony with the environment across all of our corporate activities.
This protects the foundation of our company including shareholders,
partners, employees, and the local community and ultimately leads tosound business activities.
Moreover, through social contribution initiatives for the environment,
the Group wishes to contribute to the realization of a truly enrichedsociety as a good corporate citizen.

2011

2012

2013

2014

2015 (Fiscal Year)

Proper waste treatment

13

Independent study group for quality
improvement (Hinshitsu Jishuken)

Supplier surveys
The NLM Group sends out surveys to its major domestic suppliers
every year as part of the sharing of its CSR procurement principles
with the suppliers. The Group distributed the surveys to approximately

CONSUMER ISSUES

380 suppliers for fiscal year 2015. The surveys check the suppliers’
procurement policy. Approximately 80% of the suppliers responded
to these surveys and understood the NLM Group’s CSR procurement
principles. The response rate for this annual survey has been increasing since the year 2012 when it was first introduced. Thus, we realizethat the sharing of the principles has been going well. However, we
also see challenges to be addressed from the survey responses. The
responses indicating that the proper control and handling have been
done for the items including “the elimination of antisocial forces” and“the conflict minerals/human rights issues” were only around 70%

management with practical education on-site. This study group

We are committed todevelop a system toprevent occurrences of
product and/or service
defects.

further share and respond to the principles with the suppliers.

and-desist order and surcharge payment order (2.15 million yen) fromthe Japan Fair Trade Commission for violating the Antimonopoly Act by

CSR Procurement Policy (excerpts)

circumstances, the board of directors made a resolution to confirm
that such violation has already been prohibited and implemented
strict measures for top management and the parties involved. The
NLM Group takes the current incident extremely seriously and will
be committed to preventing re-occurrence of such incident throughregularly and comprehensively enforcing the policies to revise the

2. Elimination of antisocial forces
The NLM Group never deal with antisocial forces.

Group’s rules concerning the prevention of cartel and bid-rigging acts,

3. Compliance concerning procurement
The NLM Group facilitates procurement in compliance with various laws andregulations. Furthermore, to be thorough in this policy, the Group focuses on
raising awareness on compliance concerning procurement by holding training
programs and seminar workshops on relevant laws as needed for relevant
departments in the Group.

the education and training.

5. Responses to conflict minerals/human rights issues
The NLM Group will not use four minerals (3TG) consisting of tin, tantalum,
tungsten, and gold mined in Democratic Republic of the Congo and its surrounding countries as well as any products that use these minerals.
The Group also gives consideration for human rights protection in procurement.

countermeasures.

Quality audit
The NLM Group runs quality audit for each office in and outside Japanevery year. The Central Product Safety and Quality Assurance Division
identified issues in quality assurance and control. The audit mainly
consists of the clarification of product development process andprocedures, the examination of manufacturing process, the control
and maintenance status of the partner companies and the purchased
parts, and the monitoring of compliance status with any relevant laws.
The quality audit was conducted for 54 offices and 34 companies
including the overseas offices in fiscal year 2015. As a result, althoughno legal violation was found in terms of product and service delivery,
several issues were found in quality control method and analysis.
Therefore, the Group is making necessary improvements.
Furthermore, not only the Central Product Safety and Quality
Assurance Division of the Nippon Light Metal Holdings Co., Ltd. but the

Quality Policy
We ensure trust from customers by providing distinguishing products
and services with reliable quality and safety.

quality managers from other offices participated in the audit. In fiscal
year 2015, the number of participants was about 39 people from nine
offices. The Group expects this effort to allow the participating offices>> Course of action for fiscal year 2015

to be checked from a different standpoint and lead those who do the

1. Secure customers’ trust and satisfaction by improving the quality level
2. Ensure quality and safety at each stage of the entire process from productdevelopment to quantity production
3. Establish social credibility through strengthening its legal compliance andquality risk management
4. Develop globalized human resources that possess a high level of quality
assurance skills

quality audit to develop the human resources capable of controlling
product quality through the experiences to solve quality issues out ofvarious production lines and products.

Learning from case studies
The NLM Group takes the approach of changing “failures” into “assets”
in terms of product quality. Not only the division in question but also theCentral Product Quality and Assurance Division and other relevant divisions
together investigate the root causes for the failures. The outcomes from

For the future
CSR Promotional Plan (Excerpts from FY2016 Promotional Items)
Promotion Item

Compliancequality improvement (Hinshitsu Jishuken)” which is facilitated as part ofMajor Activity Plan

KPI

our upskilling program for quality improvement and in the “group quality

Handling inquiries about the Act against Delay inPayment of Subcontract Proceeds to Subcontractors

Number ofcases handledcommittee” consisting of quality managers of the Group companies.
Moreover, the Group refers to the cases occurred at other companies andThorough the implementation of the Group Guidelines
concerning the prevention of cartel and bid-rigging acts

checks for any occurrences of similar cases in the Group. Also, the Group

Messaging of Anti-bribery
Implementation of the trainings on the Antimonopoly
Act and the prevention of cartel and bid-rigging acts

Number ofparticipantsOn-site check during the quality audit

the investigations will be shared in the “independent study group for

For the future
CSR Promotional Plan (Excerpts from FY2016 Promotional Items)
Promotion Item

Major Activity Plan

Compliance

The establishment of the systemof the management of chemical
substances in products

Improvement of quality
assurance system

Re-checking of analysis andinspection system

views the “failure” that did not have a direct impact on the customers as
the “asset”, investigates the root cause, and shares the findings in theCommunity Involvement andDevelopment

Policy on controlling chemical substances in products① Comply with domestic laws and regulations including the Act on the Evaluation ofChemical Substances and Regulation of Their Manufacture, etc.
② Control chemical substances in consideration of RoHS directive of Europe and REACH

new engineering process, the failure analysis and the development ofConsumer Issues

4. Control of chemical substances in products
With the cooperation of the partners, the NLM Group works on controllingchemical substances in products in accordance with the following as the policy on controlling such substances:distribute the surveys to sales managers in the Group, and enhancecustomer quality complaints, the establishment of quality control in

Fair Operating Practices

1. Fair and good-faith procurement
The NLM Group possesses highly competitive strengths in all of its productquality, price, lead time, availability, services, and requires for partners who
can share our CSR principles not only domestically but also internationally.
Moreover, the Group always considers a fifty-fifty business relationship witheach of our partners who was fairly selected on free competition and strives
to build and enhance mutually-beneficial partnerships. The Group is open to
new business partners and works toward disclosing necessary information
to them.

To provide products and services that are safe and meetthe customers’ expectations, the NLM Group targets its
entire process which ranges from development/design
to manufacturing and delivery, to quality assurance andmanagement activities. Although metal materials realize
various performances depending on the designs, weare also aware that they also contain risks to diminish
the significant functions of the products. Therefore, we
are working towards improving the capacity of steadyquality management and self-evaluation.

determining the supplier for polyaluminum chloride for which a local
public authority in the Niigata region is to place an order. Under suchprevention of defects in products and services, the reduction ofEnvironment

On February 5th, 2016, Nippon Light Metal Co., Ltd. received a cease-

39 staffs participated. The group dealt with themes including theLabor Practices

Cease-and-desist order and surcharge
payment order from the Japan Fair
Trade Commission

facilitated the activities five times in fiscal year 2015 and a total ofof the Nippon Light Metal Holdings Co., Ltd. visits with each office andwhich is lower than that of other items. The Group will continue to

NLM Group acts upon the “Group Compliance Codes”,
a code of conduct for all the officers and employees
to ensure compliance. Our compliance is not only
limited to legal compliance but to implementationof fair and good-faith business activities as a whole.
Due to these efforts, the Group’s actions to expand
through the supply chain and international activities
have begun.

quality improvement (Hinshitsu Jishuken)” to provide next-generation

Human Rights

The NLM Group willcomply with relevantlaws and maintain its
business activities
fairly and in good faith.

control systems and approaches with regard to five items of the CSR

The NLM Group implements the “independent study group for

Organizational Governance

FAIR OPERATING PRACTICES

KPICompletion rate forinspection“Hinshitsu Jishuken” and the “quality committee.”14

15

Social Contribution Policy

and manages a historical building, “Seizansou Villa”. The “Seizansou

earthquake in 2016, the NLM Group made a donation of 10 million

Villa” is a vacation house for Earl Mitsuaki Tanaka*1 who played an

yen through the Japanese Red Cross Society.

active role from the end of Edo Period through the Meiji Period, andFurthermore, the NLM Group raised funds from its employees andwas taken over by the Nippon Light Metal Co., Ltd. in 1946. The villa isdonated 1.6 million yen also through the Japanese Red Cross Society.

called a white chalk western-style house with a semi Japanese style.

Moreover, on May 31st, 2016, Nikkei Sangyo Co., Ltd. donated fiveIts guesthouse and garden extend over the land of approximately four

“aluminium water containers” manufactured by Nikkeikin ACT Co.,

thousand tsubo (13,000 square meters). Many historical properties

Ltd. to the Kumamoto Water and Sewer Authority. These donations

including a big glass door with the family crest and sudare (bamboo)

came out of our wish to have them used for preparation for possible

pattern have been kept with great care.

subsequent aftershocks and for the emergency drills. The GroupIn November 2015, in celebration of the 75th anniversary of theKambara Complex, the open house was held. The participants who

received words of appreciation from the administrative manager ofthe concerned authority.

were selected through open recruitment were constantly impressed

Relationship with the Fuji River watershedwith a reception room with atmosphere of those days, a bedroom

Participation in the Mt. Fuji Ekiden(Mt. Fuji Relay Race)
Nippon Light Metal Co., Ltd. and Toyo Aluminium K.K. participate in
the Chichibunomiya memorial Mt. Fuji Ekiden Race every year. This
Ekiden route starts from the Gotemba station and goes to the topof Mt. Fuji via Gotemba route. The route turns around at the top of

Nippon Light Metal Co., Ltd. owns its hydroelectric facilities in the Fuji

secured with a strong steel door, a den, and an inner court.
Nippon Light Metal Co., Ltd. will continue to preserve and take over

the watershed.

such precious historical properties together with local people.
*1 Mitsuaki Tanaka (1843-1939): He joined Tosakinnoto at the end of the Edo Period and served in the
new government after the Meiji Revolution. He subsequently served as the Director-General of Accounting
Bureau, Superintendent-General of the Metropolitan Police Department, Principal at Peers’ School, andthe Imperial Household Minister. It took ten years to bring the Seizansou Villa to its completion since theyear 1916.

Mt. Fuji and finishes at the goal, the Gotemba city athletics track

Environment

overview of the electric facilities, and explained about the current

and falling rocks, more than 100 teams get together and compete

condition of garbage dumped at the sand basin. Although the amountwith each other.

of garbage was reduced to half of the amount 15 years ago, there isThis relay race marked its 40th year in 2015. It was the 32nd

still 20 tons of garbage annually, many of which are collected bins andparticipation for Nippon Light Metal Co., Ltd. and the 10th participationcans. After providing the explanations, the Kambara complex people

for Toyo Aluminium K.K. The CEO, president, headquarters office, andFair Operating Practices

had an opportunity to exchange views with all the participants about
Participants receiving an explanation

what to do to reduce garbage in the Fuji River. They confirmed thatand celebrate the event with local people.

relationship with local people and communities.

information on the garbage pickup situations in the sand basin which

after the regular meeting of the Fuji River Fan Club, provided antemperature difference of 20 Celsius degrees, high-altitude illness,participate in the local events and consider a great deal of theand interacts with people in the watershed area, to provide theThis time, the Kambara Complex was invited to the study groupJapan. Despite such dangers as the elevation difference of 3,258m,

Regardless of the results, the Group will continue to actively

The Kambara Complex of the Nippon Light Metal Co., Ltd. wasasked by “the Fuji River Fan Club”*2, who preserves the watershedbelongs to the hydroelectric facilities.

field. This Ekiden relay race is known as the toughest relay race in

employees of the Kambara complex all came to cheer for the runners

River water system and makes active exchanges with people around
Labor Practices

The NLM Group, as a community member, makes aneffort to enhance active communication with the local
community in various regions around the world andaspires to contribute to community development. The
NLM Group strives to be a corporation group that canbe of assistance to people, the environment, culture,
education and various other areas in the community
to include both emergency and usual situations.

Human Rights

We actively
seek to enhancecommunication withthe local community.

• The NLM Group will contribute to the development of local
community by utilizing the Group’s resources effectively andengaging in the NLM style social contribution activities.
• The NLM Group will value local cultures and traditions andcontribute to their development and improvement in collaboration
with local community. Moreover, through the biodiversity
protection initiatives, etc., the Group will make contributions tolocal environmental protection.
• The NLM Group will help to develop the next-generation humanresources for the future through providing the manufacturing
education and supporting the academic and research activities.
• The NLM Group will work toward enhancing its support system toencourage its employees to voluntarily participate in contribution
activities in the local community.

Disaster relief for the Kumamoto Earthquake
In the hope of recovery of the area affected by the Kumamoto
Organizational Governance

COMMUNITY INVOLVEMENT AND
DEVELOPMENT“Seizansou Villa” Open House
The Kambara complex of the Nippon Light Metal Co., Ltd. maintains

they will continue to cooperate with each other to clean the Fuji River.

Support for Monotsukuri(manufacturing) workshop
Toyo Aluminium K.K. manufactures a highly flat and smooth aluminium
foil used for electric and medical equipment. The Yao plant of the Toyo

*2 The Fuji River Fan Club: This association was formed in 1992 with the purposes of “understanding the
Fuji River as a symbol of the area, promoting its safe use, waterfront environmental protection, and cultural
exchange of the river, and contributing to the development of local lifestyle” and has been developing various
activities. It currently has about 200 members and the majority of them are women from the Kyonan areaof Yamanashi Prefecture.

Aluminium K.K. co-sponsored “Happy Earth Day Osaka” held in Yao

FOCUS
Other

4%

Health/Medical, Sports

5%8%

Academic/Research18%

Total expenditure

117 million yen

aluminium foil for the Monotsukuri (manufacturing) Workshop held at
the same event.
More than 100 parents and children participated in this workshop

Activities in Local
Community,
Preservation ofHistorical sites andtraditional culturesand made kaleidoscopes out of the highly flat and smooth aluminium
foil. The children shouted with pleasure peeping into the shiny

36%

Community Involvement andDevelopment

Education/
Social Education

Consumer Issues

City, Osaka, in March, 2016, and provided the highly flat and smooth

NLM Group Social Contribution
Accounting (FY2015)

kaleidoscopes they made, thereby enjoyed their workshop experience.

Environmental
Contribution, Protectionof Biodiversity

Explanation session at the study group29%

For the future
Promotion Item
Local community relations

CSR Promotional Plan (Excerpts from FY2016 Promotional Items)
Major Activity Plan

KPI

Development of social contribution policy

Runners running as hard as they can

1617CORPORATE PROFILE

Business Summary

Nippon Light Metal Holdings Company, Ltd.
(abbr. The NLM HD)

Corporate Name

Date of Foundation● Alumina, Chemicals, and Ingot Business

October 1, 2012

Operating Profit

Certification Code

Capital5703

Headquarter Office

2-2-20 Higashi Shinagawa, Shinagawa-ku,
Tokyo

464,405 million yen (consolidated)

Number of Employees(100 million yen)

5,000

250

NLM Holdings

4,000

200

3,000

150

2,000

100

1,000

50

0

2011

2012

2013

2014

0

2015
(Fiscal Year)

Sales
Operating Profit(100 million yen)

NLM Holdings

NLM

150

NLM

6,000

30,000

3,000

0

0

90

2014

2015

0

(Fiscal Year)

2012

2013

2014

2015

Sales
Operating Profit(Million Yen)

● Sheet and Extrusion Products Business● Fabricated Products and Other Businesses● Foil and Powder Products Businesses

103,340 million yen
Aluminium sheets and extrusion products are used in all fields– for automotive parts and railway cars in the transport industry
and for semiconductor/liquid-crystal manufacturing equipment

2,000

technology and know-how to proactively develop products that00meet customers’ needs and to supply highly-functional sheets

2013

2014

Component ratio of Sales:

2015 (Operating Profit)

32.1%

Sales:and photosensitive drums in the electrical and electronics
industry. The NLM Group makes use of its many years ofand extrusion products.

149,220 million yen
The NLM Group has many group companies that deal withcharacteristic fabricated products. In particular, truck bodyby Nippon Fruehauf Co., Ltd. and commercial refrigerator and

120,000

12,00080,0008,000

40,0004,000

NLM supplies aluminium fabricated products closely related to02015 (Operating Profit)

everyday life including anodized aluminium foil for aluminium0● Foil and Powder Products Businesses
Sales

Sales:

30,000(Sales)● ToyaI Europe

functional ingot to respond to customers’ needs.

(Operating Profit)

160,000

Global Network● Alumina, Chemicals, and Ingot Businessingots and is highly recognized for the development of highly-

4,000● Fabricated Products and Other Businesses(Fiscal Year)

22.2%

paper. The Ingot Division manufactures a variety aluminium

60,000(Sales)

2011

2015

ceramics and plant materials for the manufacturing of pulp and

6,000

30
2013

2014

in various ways including fire retardants and raw materials for

90,000

60

2012

2013

120,000(Million Yen)

NLM Holdingshydroxide, alumina and various other chemicals, which are used

Component ratio of Sales:

120

2011

Alumina and Chemicals Division manufactures aluminium

60,000(Sales)Trend of Current Net Earnings (consolidated)(100 million yen)

NLM

109,844 million yen

9,000● Sheet and Extrusion Products Business

Trend of Current Earnings (consolidated)

Sales:

90,00013,674 (consolidated)* All data as of FY2015 or March, 2016.

Sales trend (consolidated)

23.7%

120,000(Million Yen)

39,085 million yen (consolidated)

Sales

English Corporate Name Nippon Light Metal Holdings Company, Ltd.

Component ratio of Sales:

Sales

2013

2014

Component ratio of Sales:

22.0%

Sales:

for their quality thereby occupying a top share. In addition, theelectrolytic capacitors, automotive parts, and carbon products.

102,001 million yen
Toyo Aluminium K.K. plays a central role in these businesses.

120,000

They have been developing a wide range of products

Operating Profit(Million Yen)

freezer panels by Nikkei Panel System Co., Ltd. are highly valued

incorporating aluminium special characteristics that are useful

90,0009,000

60,0006,000

30,0003,000

parts, aluminium paste, and solar cell materials, as a leading

00aluminium producer. They develop a new field utilizing their own(Sales)

2013

2014

2015

(Operating Profit)

in society, industry and everyday life, including packaging forfoodstuffs and pharmaceuticals, base materials for electronic

technology as a foundation to provide various highly-functional
materials and products to the domestic and overseas market.

● INMOBILIARIA WTV● Nikkei MC Aluminum AMERICA● T.S.T. Nikkei Metales● ToyaI America

Nippon Light Metal Holdings● ● ● Nippon Light Metal● ● ● Nikkei Sangyo● Shizuoka Kosan● Kinki Kenmazai Kogyo● Aluminium Wire Rod● Nikkei MC Aluminium● Iharanikkei Chemical Industry● Tamai Steamship● Nikkeikin Kakoh Kaihatsu Holdings● Nippon Fruehauf● Nikkei Logistics● Toyo Aluminium● Nikkei Inazawa● Nikkan● Keinara● Toyo Aluminium Ekco Products● Nikkei Metal● NKS● Fruehauf Industries● Toyo Tokai Aluminium Hanbai● Nikkei Kenzai Kogyo● Toyo Rikagaku Kenkyusho● Fruehauf Hokkaido● Toyo Aluminium Kosan● Nikkei Extrusions● Nikkei Matsuo● Fruehauf Okayama● ALPHAMIC● Shandong Nikkei Conglin Automotive Parts● Nikkei Hokkaido● Fruehauf Kyushu● Riken Light Metal Industry● Nippon Electrode● Fruehauf Shiga● Nisshin● Fuji Trading● Fruehauf Service● Nikkeikin Aluminium Core Technology● Shimizu Seibi● Sumikei-Nikkei Engineering● Nikkei MC Aluminum (Kunshan)● Nonfemet international (Chaina-Canada-Japan) Aluminum● Nikkei MC Aluminum (THAILAND)● Shandong Conglin Fruehauf Automobile● CMR Nikkei India Private Limited● Changchun Nikkei Railway Vehicle Equipment● ● ● Nikkei Siam Aluminium● Suzhou Toyo Aluminium Ekco Household Products● ● ● Nikkei Singapore Aluminium● Toyal Zhaoqing● Guangxi Zhengrun Nikkei High purity aluminum Technol● Toyo Tokai Aluminium Hanbai (Shanghai)● Ni Nikkei Shenzhen● Hunan NingXiang JiWeiXin Metal Powder● Nikkei (Shanghai) Body Parts● Toyo Aluminium Ekco Trading (Suzhou)● Nikkei Technology Center● Nikkei New Business● Seiko Electric Industries● ● Nikkei (Shanghai) International Trading● Sam-A Aluminium● Nikkei Niigata● NLM ECAL

● Arakawa Hydro Electric Power● Nikkei Kambara● Nikkei Panel System● Nikkei Heat Exchanger● Huafon nikkei Aluminium● Shiga Nikkei● Arumi Reinetsu● Toyo Precision Appliance (Kunshan)● Shimonoseki Nikkei● Toho Earthtech● PT. Nikkei Trading Indonesia● Nikkei Information Systems● Nikkei Panel System Vietnam● Nikkeikin OhLiS● Shandong Nikkei Conglin Automobile Parts● Fruehauf Mahajak

18

19

Independent Assurance Report

THIRD-PARTY OPINIONS■ From the third-party opinions
Opinions on CSR Report 2015 and the NLM Group’s responses
Major opinion

NLM Group’s responses

Page

Need to be careful in identifying regulatory compliance with the enforcement ofsocial responsibility

We recognize that regulatory compliance is a foundation and an inevitablecomponent of social responsibility together with organizational governance including
the corporate governance and internal control.

–

Need the ongoing monitoring and the expanded scope of investigation in terms ofhuman rights due diligence

We implemented our human rights DD program by visiting the metal silicone
manufacturer (China) and conducting the on-site inspection during the previous
period.

P9

Need to create social necessity with which good products and services are acceptedin collaboration with society

The development of socially meaningful products and services is becoming more
and more important. Above all, we recognize the development of products that cancontribute to solving environmental issues as number one priority.

–

Clearly spell out the direction to which the CSR activities are set out.

We recognize that we are still lacking in the perspectives to dynamically enhance
our understanding of the relationship between the NLM Group and society. We will
work on this area by considering the relationship between “corporation”, “products/
services”, and “society.”–

Consulting Fellow,
Research Institute of Economy,
Trade and Industry

Mr. Toshihiko Fujii■ CSR of the material manufacturer in another dimension
1. This is an extremely easy-to-read and good report that tells us the

3. As far as human rights due diligence is concerned, I would likecompany’s eagerness toward CSR. Especially, three special topics*

to note the value of the NLM Group’s moving into action forfeatured in this report share each employee’s social awarenessvisiting and exchanging opinions with suppliers. Also, the partners’

and its practice thoroughly. I support the feedback made at thesurvey response rate increased. The Group has been successfulround-table talk by the members who came together from various

in exposing the potential issue points including its response togroup companies to prepare this report, but in particular the

the “human right/conflict minerals issues”. I hope the Group to

indication by someone, “the point for the lasting CSR is to develop

sustain this momentum to further promote their responses to

new products and business 10 years and 20 years later, but suchsocial problems through dialogue and mutual understanding withbusiness may not necessarily be seen as an extension of the

suppliers and partners.

current business”, hits the right on the mark. New future businessmay not be continuous with the status quo, therefore we need to

4. I would like to recognize the fact that the guidelines concerningquestion our relationship with society to find it out. This has muchbiodiversity have been developed. The future challenges will be toin common with the CEO and president Okamoto’s “profoundrealize the guidelines into concrete actions. I hope that a new goal

insights into aluminium materials”. CSR and new products andof greenhouse gas emissions will be established in response tobusiness 10 years and 20 years later will interact bi-directionally.

COP21.

2. The next-generation 10-door body using an aluminium door,

5. I have seen more remarkable progress overall this year thanwhich is featured in the special topic* 3 “Opening the door forthat of last year. At the same time, I would like to see the Group

logistics in Asia”, was highly impressive since it developed

continuously consider how to contribute in solving problems thatfrom a thorough understanding of local customers’ needs andare mainly related to human rights and the environment. Bothit helps social participation of women and elderly people whichperspectives of innovation for its own business method andis a worldwide challenge. It is a good example of CSV (Creating

creation of new products and services are required. Thus, theShared Value) which shows the interpretation of social issues fromimage of “the unrivalled competing power” will emerge.

business standpoint.
* Please allow us to skip the special topics on account of limited space in the English version

20

21

★: New disclosure item

DATA
Organizational Governance★Total quantity of water intaken

Environment

Year-end dividend per share (March)(Yen)

Nippon Light Metal
Company, Ltd.

: We have received independent assurance by KPMG AZSA Sustainability
Co., Ltd., for the reliability of the data.

Acquisition of Environmental Qualifications

Nippon Light Metal Holdings Company, Ltd.

Year

2012

2013

2014

2015

2016

Water Quality

Dividend

2

3

4

5

6

Noise
Shake

Pollution Control Manager

Noise/Shake

Number of employees by country/region
Japan

Employees

Managerial
positions
Regular
Employee

Asia

U.S./Europe

Total

152

14

4

Male

1,283

191

32

1,506

Female

24

38

5

67

Male

7,109

2,419

236

9,764

Female

961

1,337

39

2,337

9,377

3,985

312

13,674Full-time directors

Total

170*1

2.0

1.91

1.94

2.0

1.5

1.5

1.0

1.0

0.5

0.5

0

0

2012 2013 2014
* As of June 1 each year

2015 2016

2.09

2.06

2.05

2.12

2012

2013

(Employees)

Fiscal Year

2012

2013

2014

2015

Number

34

16

20

17

Entry year and month

2010/04

2011/04

2012/04

2013/04

Retention rate

97.1

93.2

92.9

98.1

* Rate of employees in office on April 1st three years after joining the company

Number of employees taking childcare leave (Nippon Light Metal Co., Ltd.)
5(Employees)

2014

8

2015

8

8

Labor Practices★Graduate recruitments (Nippon Light Metal Co., Ltd.)2012

Fiscal year

2013

70

2014

54

2015

41

47

2014

2015

New hires (number)

148

122

79

98

%

7

6

4

5

separated employees

128

124

140

100

%

6

6

7

5

★Union participation rate (Nippon Light Metal Co., Ltd.)Fiscal year

2012

2013

2014

2015

Participation rate

100

100

100

100

0.5
0

0.94

1.00
0.52

0.65

0.84

0.00
2011

0.71

0.64
0.28

2012

0.29
2013

Nippon Light Metal Co., Ltd. average
Nippon Light Metal Group average

0.89
0.58
0.51
2014

(Ton – CO2 per million yen)
2011 2012 2013 2014 2015

Emissions 2.11

2.41 2.08 2.14 2.09

Emissions (thousand ton)

96.4

17

0.9
1.7

Category 5 Industrial Waste3

0.2(Thousand ton)

Recycled/Reduced

Disposed (landfill)

34.9

28.3

36.5

32.1

29.9

35.6

38.9

34.3

28.6

27.0

40.9
32

33.2

29

6.6

2.9

3.5

2005

2011

2012

(Baseline)

2.2
2013

2.0
2014

2.4
2015

2012

2013

2014

2015

11.4
6.3

8.2
5.8

7.8
5.0

7.5
5.2

8.5
4.9

Electricity (PJ)
Fuel (PJ)

2012

2013

2014

2015

Fiscal year 2011 2012 2013 2014 2015

47.8

45.2

38.4

36.5

36.5

Quantity

SOx emissions

(Ton)

720

983

559

543

NOx emissions

640

678
(Ton)

372 372 379

402
288

443

350

496
380 396422 370

2005 2011 2012 2013 2014 2015 20202005 2011 2012 2013 2014 2015 2020
(Baseline)(Target)* Decrease in SOx and NOx in FY2015 is due to the fuel conversion.
* The past numbers were corrected due to errors in emissions of SOx and NOx in FY2014.

0.0

0.0

0.0 13,033

83

Cumene

1.0

0.0

0.0

0.0

0.0

0.0

87

Chrome and Trivalentchrome compounds

0.0

1.5

0.0

0.0

0.0

19

165

2,4-Dichlorotoluene

7.1

0.0

0.0

0.0

0.0

0.0

186

Methylene Chloride

36,000

0.0

0.0

0.0

0.0

7,100

281

Trichloethylene(Million yen)

0.0

0.0

0.0

0.0

8,170

0.0

0.0

0.0

0.0

31,160
6,672

4,103

0.0

0.0

0.0

0.0

Toluene149,156

1.2

0.0

0.0

0.0 141,240

Nickel

0.0

7.0

0.0

0.0

0.0

43

696

1,016

309

Nickel compounds

0.0

0.0

0.0

0.0

33.7

870

700

149

184

874

Upstream/Downstream costs

0316Management costs

32

153

0

2,920

Environmental conservation cost
Resource circulation cost

Total

2. Economic Effect of Environmental Conservation Activities
Earnings(Million yen)

Changes in Expenditures*1*2 (Million yen)

Total

Earnings from recycling
waste produced in
the course of main
business activities
and recycling of usedproducts

383

Total

383

Details

Total

Energy expenditures

3,097

Water expenditures

8

Waste disposal expenditures50

VOC*3 processing expenditures

15

Legally required contributions
for the reduction ofdesignated environmentally
harmful substances(Example: SOx pollution levy)

4

1,526

1,612

0.0

0.0

0.0

0.0

0.0

310

14

0.0

0.0

0.0

0.0

374

Hydrogen Fluoride andits water-soluble salt

0.5

0.0

0.0

0.0

0.0

66

384

1-Bromopropane

11,000

0.0

0.0

0.0

0.0

0.0

5,295

392

N-hexane

0.0

0.0

0.0

0.0

686

405

Boron compounds

140 35,000

0.0

0.0

850

1,511

412

Manganese and its
compounds

0.0

0.0

0.0

0.0

0.0

4.5

438

Methylnaphthalene

369

0.0

0.0

0.0

0.0

0.0

448

Methlenebis(4,1-Phenylene) =Diisocyanate

0.0

0.0

0.0

0.0

0.0

310

Number of cases of lawsuits, penalties, or forfeitures concerning environment
Fiscal Year

2011

2012

2013

2014

2015

Number of cases

0

0

0

0

0

Fair Operating Practices
Number of cases reported through the compliance Hotline
2012

2013

2014

2015

13

10

7

3

Number of cases

Fiscal

2012

2013

2014

2015

Number of meetings held

1,435

1,623

1,874

2,038

Total number of participants

15,354

17,136

18,547

19,600Consumer issues
Number of legal violations in the delivery of products/services

Environmental Conservation Expenditures

1,615

0.1

PhenolCompliance Meeting*1: Changes in expenditures are calculated using the following methods:
Changes in expenditures = expenditures incurred during a base period (FY2014) – expenditures
incurred during current year (FY2015)*2: –(minus) indicates an increase in expenditures*3: Volatile Organic Compounds(Million yen)

321 Vanadium compounds
349

Fiscal Year

3,174

Total

1,542

300

9,500
13,422308

Investment(Cost)
6,639(Million yen)
7,145
5,908

5,053

5,637

1,014

(Baseline)

0.0

0.0

297 1,3,5-Trimethyl benzene

Pollution prevention cost

(Investment amount)

719

0.0

1.1

Expenditure

Costs incurred within
business area

2020

Fiscal year 2011

0.0

40,223

21

Environmental Accounting(Target)★The energy uses per net sales★Quantity of raw materials(thousand ton)
(GJ/million yen)(basic unit)
used in productions

22,576

Xylene296 1,2,4-Trimethyl benzene

Details2011

Ethyl Benzene

4,946

5,637

2015

Fiscal Year

2011

2012

2013

2014

2015

Number of violations

0

0

0

0

0

Community involvement and development
Social Contribution Expenses(Target)

2011

3,972

53
80

0.0

1,612

2014

Outsidebusiness
office

0.0

11

2013

Sewage

0.0

198

2012

Landfill

0.0

0

2011

Soil

0.0

0

2005

Moving quantity
Business office

0.0

Environmental remediation costs(Baseline)

Atmosphere

Publicwater
district0.6

Social activity costs

0

Emissions
Name of Substances

0.0

0.2

5

Class 1 Designated Chemical Substances(kg) mg-TEQ for Dioxin, etc.

1,036

(Target)1. Environmental Conservation Expenditure-1,033* –(minus) indicates an increase in expenditures

FY2015 Emissions of Substances controlled under the PRTR
No.

2015

16,077* The past number was corrected due to an error in recycled/reduced in FY2014.

21.8

2015

-415

Dioxins

3

12

2014

-350

N-dodecyl alcohol

Category 7 Employees’ commuting

13.4

2013

2014

273

0.0

12.7

2012

2013

243

0

12.8

2011

2012

-246

3

Category 6 Business trip

17.7

2011

2020

R & D costs

14.0

3,174

122

(Target)50

Rate (%)

1,858

0.6

0.70
0.59
0.53
2015

(Target)Category

1.06* Accident requiring more than one day of absence (excluding accident on the way to work)* The past numbers were corrected due to changes to its coverage of accidents.

22

Greenhouse Gas Emissions per unit net sales (basic unit)
Fiscalyear(Million yen)

383

357

* The past number was corrected due to an error inearnings in FY2014.

(Baseline)

011

Basic unit

Lost time injuries frequency rate

1.0

2020

(Target)

34

15

(%)

1.06

2015

10

2013

1.17

2014

Category 4 Freight, Shipping (Upstream)

20

2012

1.05

2013

Category 3 Fuel and energy not included in Scope 1 & 2.

2016

Fiscal year

Manufacturing industry average
Japan Aluminium Association average

2012

Category 2 Capital goods

25★Number and rate of new hires and those who left (Nippon Light Metal Co., Ltd.)

1.5

2011

* Target value means an average value of five
years from FY2018 through FY2022. This
plan shall be reviewed in cases of any majorchanges to such prerequisites as “Energy
Basic Plan” and “Environmental Action Plan inElectric Industry (Federation of Electric Power
Companies)”.

(Employees)

4393

108 110(Baseline)

30* Emissions are calculated multiplying the activity amount by a corresponding CO2 emission coefficientpublished by the Ministry of Economy, Trade and Industry and the Ministry of the Environment.
* Scope 3 Category 1 emissions are calculated based on the volume of purchase of the top-three items interms of purchase volume. Of these, the volume of aluminium ingots is the volume purchased by Nippon
Light Metal Co., Ltd.
(PJ)
Energy use* The past numbers were corrected due to errors in the calculation in FY2012 and FY2014.

Employees

2005

Category name
(%)

101

97

110

10

Category 1 Products/Services purchased

Retention rate three years after joining the company (Nippon Light Metal Co., Ltd.)116

27.9 26.3 26.0 27(Ton)2005 2011 2012 2013 2014 2015 2020

40

768

748

695

COD emissions(Million m3)

2005 2011 2012 2013 2014 2015 2020

Breakdown of Scope 3 emissions* The past numbers were corrected due to errors in the calculation from FY2012 to FY2014.

2013

745

30.9 29.0

20(Baseline)

Number of the re-employed after retirement (Nippon Light Metal Co., Ltd.)

Number(thousand ton – CO2)

779

382

Emissions and Disposal of Waste and Waste Byproducts

50002015 2016

2012

2
2

972

1,000

2014

Fiscal Year

33.8

1,143

(%)

2.5

1.89

Total discharge

93

Greenhouse Gas Emissions(Toyo Aluminium K.K.)
2.41

1.92

Qualified Manager of the Specially Controlled Non-infectious waste
Industrial Wastes Subject to Special Control
Infectious waste
Qualified Person for Energy
Heat/Electricity
Management
Density-related
Environmental Measurer
Noise/Shake-related(Changes in Expenditures)* We began to grasp the quantity from FY2015, excluding quantity of seawater intaken.

1,500

Employment Rate of People with Disabilities(Nippon Light Metal Co., Ltd.)

General Powder Dust
Qualified Engineer of the Industrial Waste Treatment Facility*1: The percentage of female in director positions is 0%

2.07

Dioxin, etc.

(Employees)(Million yen)
433

22.6

Quantity

87
140
22
21
33
48
25
10
140
6

(Earnings)

2015

Fiscal year

Number of Employees
Atmosphere

Human Rights

2.5(Employees)

Name of Qualification

Economic Effect of Environmental Conservation Activities(Million m3)

2012

2013

2014

2015

2011

2012

2013

2014

2015

(Million yen)

Fiscal Year

2012

2013

2014

2015

Expenditure

71

95

121

117

23

CONTACT INFORMATION

Nippon Light Metal Holdings Company, Ltd.
CSR Contact, CSR & Auditing Administration Department
Tennozu Yusen Bldg, 2-2-20 Higashi Shinagawa, Shinagawa-ku, Tokyo, 140-8628
TEL: +81-3-5461-8601
Fax: +81-3-5461-9188