Environment
Contents /Editorial Policy

Nissha Group
Sustainability

SocialThird Party
Verification

Environment

Human
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

Table of Contents
Table of Contents / Editorial Policy
Editorial Policy

Social1

Governance

Human Rights
Human Rights

Nissha Group Sustainability

Governance13

CEO Message

2

Nissha Philosophy

3-1

Human Resources Policy and System

14

Sustainability Vision

3-2

Respect for Diversity

15

Promotion Framework for Sustainability

3-3

Human Resources Development

16

Materialities (Key Issues) and KPIs

3-4

Employee Engagement

17

Initiatives in which Nissha Participate and External
Evaluation

3-5

Safety and Health18

Nissha Group Stakeholders

3-6

Health and Productivity Management

19

Human Resources

Fair Operating Practices / Local Communities

EnvironmentIntellectual Property

20

Environmental Policy and Management Structures

4

Partnership with Our Suppliers

21

Impact on the Environment out of Our Business
Operations

5

Along with Local Communities

22

Responding to Climate Change(Addressing the TCFD Recommendations)

6

Quality Management /Efficiency and Productivity Improvement

CO2 Emissions and Reduction Efforts

7

Quality Management

23

Third Party Verification

8

Efficiency and Productivity Improvement

24

Waste Management

9

Management of Chemical Substancesand Environmental Risks

10

Water Resources

11

Environmental Objectives and Status of Achievement(Nissha Group in Japan)

12

Nissha Sustainability Report 2024

Corporate Governance25

Initiatives of Internal Audit Office

26

Internal Control System

27

Risk Management and Compliance

28

Information Security

29

Trade Management30

Anti-corruption

31

Business Continuity

32

Tax Principle

33

Responsible Mineral Procurement

34

Management System and Other Certification
Acquisitions

35

GRI Standards Content Index / ESG Data
GRI Standards Content Index

36

ESG Data

37

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

1. Editorial Policy
The Nissha Group believes that appropriate information disclosure and communication with stakeholders are important. The Nissha Report, an integrated report, comprehensively provides financial andnon-financial information to shareholders, investors, and other stakeholders, including the companyʼs
initiatives for sustainable corporate growth. The Nissha Sustainability Report (this report) is publishedonce a year to provide comprehensive and detailed information on non-financial information.
Sustainability Report 2024 covers our initiatives and performance in the fiscal year ended December
2023 (January–December 2023), following the editorial policy given below.

The Role of Nissha Sustainability Report
Summarized

Financial Information

Non-Financial Information

1-1

Guidelines Used as Reference• The GRI Sustainability Reporting Standards• ISO26000• Environmental Reporting Guidelines 2018, issued by the Japanese Ministry of the Environment

1-2

Period Covered

From January 2023 to December 2023

1-3

Publication Dates

Nissha Report(Integrated Report)

Website: Investor Relations

Current issue: July 2024 for Japanese, August 2024 for English
Last issue: July 2023 for Japanese, August 2023 for English
Next issue: June 2025 for Japanese, August 2025 for English (planned)
Website: Sustainability

1-4
Securities Report
Financial Results
Presentation Materials
and so on

Sustainability Report
Corporate Governance Reportand so on

Nissha Sustainability Report 2024

Scope of Reporting

The information and data contained in this report focus mainly on activities conducted by the Nissha Group. Where information for the entire group is not available, the scope of reporting is indicated separately. “Nissha” or “the Company” refers to “Nissha Co., Ltd.” while “Nissha Group” or “theGroup” collectively refers to the Group overall, including Nissha Co., Ltd. “Headquarters” or “Kyoto
Global Headquarters” refers to the headquarters and affiliated companies located within the headquarters premises. The major affiliated companies of each Nissha Group business are given below.
Significant activities conducted by companies in our supply chain are also included in this report.

1-1

Environment
Contents /Editorial Policy

1-5

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Major Affiliated Companies and Businesses
Companies

Nissha Industries, Inc.

*

Nissha Precision and Technologies, Inc.

Major Businesses
Industrial Materials*

Fair Operating Practices/ Local Communities

1-6

DevicesNissha Printing Communications, Inc.

OthersZonnebodo Pharmaceutical Co., Ltd.

OthersNissha Business Service, Inc.

OthersNissha USA, Inc.

Industrial Materials, Devices

Nissha Eimo Technologies

Industrial Materials

Nissha PMX Technologies,S.A. de C.V.

Industrial Materials

Nissha Medical Technologies

Medical Technologies

Nissha Europe GmbH

Industrial Materials, Devices

Nissha Advanced Technologies Europe GmbH

Industrial Materials

Nissha Metallizing Solutions

Industrial Materials

Nissha Korea, Inc.

Industrial Materials, Devices

Nissha Industrial and Trading (Shenzhen) Co., Ltd.

Industrial Materials

Nissha (Kunshan) Precision IMD Mold Co., Ltd.

Industrial Materials

Guangzhou Nissha High Precision Plastics Co., Ltd.

Industrial Materials

Taiwan Nissha Co., Ltd.

Industrial Materials, Devices

Nissha Industrial and Trading Malaysia Sdn. Bhd.

Industrial Materials

Nissha Precision Technologies Malaysia Sdn. Bhd.

Industrial Materials

Nissha Vietnam Co., Ltd.

Devices

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

Major Changes in Reporting Scope

Date

Content

Impact on reporting scope

January 1, 2024

Schuster Kunststofftechnik GmbH absorbed and

The content of the Sustainability Reportmerged with Back Stickers GmbH and changed

2024 has not been affected.

DevicesNissha FIS, Inc.

Governanceits trade name to Nissha Advanced Technologies
Europe GmbH.

1-7

Publishing Division and Contact for Inquiries

Nissha Co., Ltd.
ESG Promotion
Contact: Website Contact
TEL: +81 75 811 8111

* Nitec Industries, Inc. and Nitec Precision and Technologies, Inc. changed their trade names to Nissha Industries, Inc. and Nissha Precision
and Technologies, Inc., respectively, on December 31, 2023.

Nissha Sustainability Report 2024

1-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

2. CEO Message
The Mission of Nissha Group is to enrich peopleʼs lives by creating and developing technology into economic and social value
through the diverse capabilities, passion, and leadership of the
global Nissha Group. Nissha Group is a forward thinking global
company, conducting main businesses in Industrial Materials,
Devices, and Medical Technologies.

ongoing basis, but also to strengthen the management foundation underpinning our business activities, reduce risks that
could hamper business continuance, and promote governanceto ensure these are all carried out appropriately. These activities
will create the economic and social values stated in our Mission,
allowing us to enrich peopleʼs lives.

The Group views sustainability as “ initiatives for sustainablegrowth and development for both the company and society. ”
Based on this view, we consider social issues to be business
opportunities. We strive not only to leverage our strengths toprovide products and services that help solve these issues on an

The Group has set out the Sustainability Vision (long-term vision). We are aiming to create social value by providing products
and services that contribute to solving social issues in the priority
markets of medical, mobility, and environmental fields, and toachieve a 30% reduction in total CO2 emissions in 2030 (versus2020) with a view to carbon-neutral by 2050.

NISSHA の成長・発展

社会の成長・発展

Sustainable growthof Nissha

Sustainable
developmentof society

事業機会の創出

Creating business oppotunities
リスクの低減Risk reduction
経営基盤の強化To realize our Sustainability Vision, it is imperative that we continue to provide value to society through our businesses withour customers. Our employees around the world who share our
Mission are our driving force. In order to create value beyond
conventional thinking amidst a drastically changing market environment, we are promoting diversity in various aspects, cooperating across countries, businesses, and generations, and creating
an inclusive organization in which diverse human resources canthrive. We will also strive to increase employee engagement by
developing human resources and fostering a corporate culturethat enables each and every employee to demonstrate his or her
strengths with passion.
We look forward to your continued guidance and encouragement.

Compact since April 2012. We have in place various

Strengthening management foundation
ガバナンスの推進

Corporate governanceNissha Sustainability Report 2024

Nissha Co., Ltd. support the United Nations Global

July 2024
Junya Suzuki
Chairman of the Board, President and CEO
Nissha Co., Ltd.

targets and work actively based on the 10 principlesof the Global Compact in the area of human rights,
labor, the environment, and anti-corruption.

2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

3. Nissha Group Sustainability
3-1

Nissha Philosophy

Nissha has integrated its standards of thought, rules of conduct,and Mission ̶ ideals held in high regard ̶ into Nissha Philosophy
that is greatly valued.

3-2

Sustainability Vision (long-term vision for 2030)

Nissha views sustainability as “initiatives for sustainable growth and development for both the company and society.” We believe that solving social
issues, which are primal needs, will support social development and lead to corporate growth.
Throughout our 90-plus year history, we have grown by evolving and expanding our core technologies and reorganizing our target markets. Under
our Mission, we have analyzed the magnitude of social issues and the sustainability of market growth for the next 10 years, and relatively evaluatedthe added value that can be created through our core technologies. Based on this analysis, we have positioned Medical, Mobility, and Sustainable
Materials as our growth areas.
Sustainability Vision(Long-term vision for 2030)

With integration and orchestration of the diverse capabilities of our people and ourtechnologies, we will contribute to solving global social issues in the priority markets ofmedical, mobility, and sustainable materials, and realize the enrichment of people's lives.

Social value
Solve social issues through business activities● Solve medical issues, realize safe andcomfortable mobility, and contribute toa circular society● Reduce 30% of total CO emissions, in view
2of carbon-neutral by 2050 (compared to2020)●■ Mission
Economic value

We realize the enrichment of peopleʼs lives by●

Aim for JPY 300 billion of net sales（including JPY 150 billion in medical business）

creating technology and developing it●

into economic and social value through the diverse capabilities,●

ROE 15%
Operating Profit Margin 12%

passion, and leadership of the global Nissha Group.
Mobility

Sustainable Materials

IT Devices

Solve medical issues

Realize safe and comfortable mobility

Contribute to a circular society• Reduce patient burden (QOL improvement)• Efficiency and labor saving in diagnosis
and treatment• Promote telemedicine (consultation andtreatment)• Comfort: More comfort in interior space• Safety and Convenience: Improve communication between people and cars
• Sustainability: Reduce environmental impact• Achieve carbon neutrality• Protection of the natural environment• Provision of petroleum-based plastic
alternative

Contribute to solving social issues
through our capabilities cultivatedfor IT devices

MedicalNissha Sustainability Report 2024

• Penetrate IT technology into society
through advancement of digital transformation

3-1

Environment
Contents /Editorial Policy

3-3

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Promotion Framework for Sustainability

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

■ Structure

Nissha has established a Sustainability Committee, chaired by the President and CEO with the
Senior Executive Vice President (ESG Promotion) as the Vice-Chair. This committee is composed ofbusiness organizations, divisions, and the ESG task force related to the themes of Creating business
opportunities, Risk reduction, Strengthening management foundation, and Corporate governance,
and which all work in concert with each other.
The ESG task force has been established to address the themes of Enhancing human capital,
Respect for human rights, and Responding to climate change. These are considered to be
par ticularly impor tant from an ESG perspective, and the ESG task force is responsible foraccelerating activities for each of these at Nissha.
The Sustainability Committee holds a general assembly once per year, in which it authorizes the
key performance indicators (KPI) and action items set by the main related business organizations,divisions, and the ESG task force based on the materialities determined through resolutions at
the Board of Directors. In addition, monthly business reviews and quarterly progress confirmation
meetings are held to confirm whether or not the set KPIs and action items are progressing asplanned. Each business organization, division, and the ESG task force oversee the management ofrespective strategy items, KPIs, and action items. In the fiscal year ended December 2023, we held
one Sustainability Committee General Assembly and three Progress Review Meetings.
The Board supervises the activities of the Sustainability Committee, discussing reports from theSustainability Committee and the ESG Task Force, and making necessary recommendations.

Nissha Sustainability Report 2024

3-2

Environment
Contents /Editorial Policy

3-4

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Materialities (Key Issues) and KPIs

3-4-1 Materiality Identification
To realize our Sustainability Vision, the Nissha Group identifies particularly important items as
materialities. We also set and engage in specific strategy items, KIPs, and action items reversecalculated to achieve 2030 goals.
Materialities are evaluated from the 4 perspectives of, Creating Business Opportunities, Risk
Reduction, Strengthening Management Foundation, and Corporate Governance, using the twoaxes of importance to society and stakeholders, and importance to Nissha. In addition, we holddialogues with stakeholders including customers, shareholders and investors, and include that
insights in "importance to society and stakeholders". The identified issues and their positioning
within the Group are discussed by the Sustainability Committee, and materialities are identified
through deliberations and resolutions by the Board of Directors.

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

■ Materiality Identification Process
STEP1
Identify related social
issuesIdentify social and management issues related to the realization of the
Sustainability Vision by referencing SDGs*1, GRI Standards*2, RBA*3, etc.

STEP2
Prioritize

Incorporate knowledge gained through dialogue with customer s,shareholders, investors, and other stakeholders regarding the social andmanagement issues identified in Step 1, while analyzing and prioritizing
on two axes: "importance to society and stakeholders” (considering
SDGs, external evaluation, etc.) and "importance to Nissha".

STEP3
Verify validity

Examine the validity of the priorities via inter views conducted withbusiness divisions involved in the Sustainability Committee, ESG task
force and other organizations.

STEP4
Establish
materialities, KPIs,
and action items

Based on Steps 1 to 3, materialities are identified through deliberations
and resolutions by the Board of Directors. In addition, business divisions,organizations, and the ESG task force incorporate strateg y items,
KPIs, and action items which are then approved by the Sustainability
Committee.

*1. Sustainable Development Goals: Adopted by the United Nations in September 2015
*2. Global Reporting Initiative Standards: Global guidelines for sustainability reporting*3. Responsible Business Alliance: International code of conduct for labor, health and safety, environment, ethics, etc. for the electronics andother industries

Nissha Sustainability Report 2024

3-3

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

The Nissha Group is considering environmental changes that can potentially impact our businessactivities. We identify particularly important items for the realization of the Nissha Group
Sustainability Vision as material issues and review these items once a year.

■ Creating Business Opportunities
Identified based on important social issues (needs) in the priority markets as stipulated in
Sustainability Vision

Solve medical issues(Medical devices)

Scenario for Achieving Materialities(Strategy Items)

Expansion of business for Medical
Devices / Healthcare market

KPIs and Action Items(FY2026)• Net sales of Medical
Technologies business

Fair Operating Practices/ Local Communities

Expansion of business for Mobility
marketPromotion of circular
economy (Sustainable
Materials)

Expansion of business for Sustainable Materials market• Net sales of Mobility segment

RelatedSDGs

Materialities

Scenario for Achieving Materialities(Strategy Items)

GRI Standards Content
Index / ESG Data

KPIs and Action Items(FY2026)

Respect for humanrights• Reduction of labor and humanrights risks• Number of child labor and forcedlabor cases at primary suppliersin areas* with high labor andhuman rights risks : 0

Responding toclimate change• Reduction of CO2 emissions• Reduction of total CO2 emissions-18% (compared to 2020)

Providing responsible
products and services• Maintain and expand quality management system in accordancewith business strategy• Enhance quality at the design stage
with a focus on product safety andfeasibility• Implement quality education• Number of serious quality
incidents: 0

Sustainableprocurement• Establishment and operationalization of stable procurement• Achieve sustainable andstable procurement throughprocurement strategies that
understand the capabilities ofsuppliers and the risks associatedwith each procured item
[FY2024]• Cost reduction through global
sourcing• Transition to green procurement

Data security inresponse to increased
use of generative AI• Continuously enhance security
systems• Maintain and improve security
literacy among all employees• Improve productivity throughproactive use of generative AI• Timely deployment of security
systems across the entire Nissha
Group• Company-wide implementationof phishing email training andeducational systems• Develop governance and provide
education related to generative AI• Providing mobility products that
contribute to safety, comfort, andreduction of environmental impact• Promotion of circular economy• Solving marine plastic pollution
issues• Contribution to improving resource
utilization efficiency• Biodiversity conservation considerations

GovernanceEvaluated and identified environmental and social risks that impede business continuity in aiming toachieve Sustainability Vision• Contribution to medical carecentered on minimally invasive(heart disease) and acute care fields

Contribute to thesafety and comfortof transportationand logistics, and the
reduction of environmental impact(Mobility)

Quality Management / Efficiency
and Productivity Improvement■ Risk Reduction

3-4-2 Materialities of Nissha Group / KPIs and Action Items

Materialities

Governance• Net sales of Sustainable
Materials segment

Related
SDGs* Risk areas as defined by the International Labour Organization: Central and South America, Southeast Asia, and China

Nissha Sustainability Report 2024

3-4

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

■ Strengthening Management Foundation■ Corporate Governance

Identified major management foundation elements in the quest for realizing our Sustainability
Vision and accelerating business activities

Identified major corporate governance elements in the quest for realizing our Sustainability Vision
and accelerating business activities

Materialities

Enhancing humancapitalEfficiency andproductivity
improvement

Scenario for Achieving Materialities(Strategy Items)

KPIs and Action Items(FY2026)

RelatedSDGs

Materialities• Promote opportunities forfemale employee• Female manager ratio
Global consolidated: 23%
Nissha non-consolidated: 12%

Improving theeffectiveness of theBoard of Directors• Enhancement of trainings for
management / strategic humanresources, and employee rotation• Selection rate of leader
candidates in selective training
programs
Nissha non-consolidated: 45%

Advancement of
global governance• Improve efficiency and productivity by digitalization of value
creation processes• Expand data-based decisionmaking mechanisms• Reduce working hours throughthe introduction of productivity
enhancement tools at overseas
subsidiaries: 20,000 hours /year (compared to 2023)• Reduce working hours for nonroutine tasks by using generativeAI

Nissha Sustainability Report 2024

Scenario for Achieving Materialities

KPIs and Action Items

Related
SDGs• Upgrade systems related tocorporate governance and group
governance• Improve the evaluation of theeffectiveness of the Board of
Directorsー• Complete the global risk
management systemdevelopment (regional risk
management systems)ー(Strategy Items)(FY2026)■ Boundaries of Materialities
Materialities

Boundaries
Inside Nissha Group

Outside Nissha Group

Respect for human rights●●

Responding to climate change●●

Providing responsible products and services●●

Sustainable procurement●●

Data security in response to increased use of generative AI●

Enhancing human capital●

Efficiency and productivity improvement●

Improving the effectiveness of the Board of Directors●

Advancement of global governance●

3-5

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Materialities■ Creating Business Opportunities

Solve medical issues(Medical devices)

Scenario for Achieving Materialities(Strategy Items)

Expansion of business for Medical Devices /Healthcare market• Contribution to medical care centered onminimally invasive (heart disease) and acutecare fields

Contribute to the safety andcomfort of transportationand logistics, and the
reduction of environmental
impact(Mobility)
Promotion of circular
economy(Sustainable Materials)

Expansion of business for Mobility market• Providing mobility products that contributeto safety, comfort, and reduction ofenvironmental impact

Expansion of business for Sustainable
Materials market• Promotion of circular economy• Solving marine plastic pollution issues• Contribution to improving resource utilization
efficiency

Fair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

■ Risk Reduction

3-4-3 FY2023 Initiatives and ProgressMaterialities

Governance

KPIs and Action
Items (FY2023)

Achievement
Status ＊• Net salesof Medical
Technologies
business○• Net sales ofMobility segment△• Net sales of
Sustainable
Materials
segment△

Scenario for Achieving Materialities(Strategy Items)

Progress in FY2023

Respect for humanrights• Reduction of labor and humanrights risks• Number of child labor and forced labor cases atprimary suppliers in areas* with high labor andhuman rights risks : 0• Conducted the regular annual survey of target
suppliers using the CSR survey form, and all
suppliers scored above the threshold• In addition to the above, site audits werecarried out for some selected suppliers. Minor
issues noted were given pointers on how to
improve them, and the results were confirmed
at a later date

Responding to climatechange• Reduction of CO₂ emissions• Achieved an 18.7% reduction in CO₂ emissions
in 2023, surpassing the target reduction ratioof a 9% (compared to 2020)• Promoted switch to renewable electricity atdomestic and overseas production bases andpromote energy conservation measures• Implemented Scope 3 emissions tracking, andthird party verification was obtained for someof them.

Providing responsible
products and services• Maintain and expand quality
management system in accordance with business strategy• Enhance quality at the design
stage with a focus on productsafety and feasibility• Implement quality education• Number of serious quality incidents: 0• Maintained or obtained new quality
management accreditation (ISO 13485, IATF
16949)• Confirmed the work related to design using
design review (DR) implementation andparticipation, and internal audits and screening
chances• Drafted and implemented training plans foreach function. Held 50 lectures, attended bya total of some 1,500 people. Also carried out
basic training for people working in loading

Sustainableprocurement• Establishment and operationalization of stable procurement• Carried out risk reduction measures for
those major components which require
procurement risk measures. Achieved
target implementation rate

• Biodiversity conservation considerations* This evaluates the level of achievement of net sales plans for each segment in FY2023.

* Risk areas as defined by the International Labour Organization: Central and South America, Southeast Asia, and China

Nissha Sustainability Report 2024

3-6

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources■ Strengthening Management Foundation
Materialities

Enhancing humancapitalScenario for Achieving Materialities(Strategy Items)• Promote opportunities forfemale employee

Fair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

■ Corporate Governance
Progress in FY2023• Female manager ratio
Global consolidated: 22.7%
Nissha non-consolidated: 7.1%
• Heads of departments which had female
employees in the grades before managerial
staff met with HR to work on planned fosteringand promoting based on the departmentʼs
expectations and the personʼs own wishes• Enhancement of trainings for
management / strategic humanresources, and employee rotation• Selection rate of leader candidates in selective
training programs
Nissha non-consolidated: 41.5%• Nissha Academy Business School beginnercourse held

Efficiency andproductivity
improvement• Improve efficiency and productivity by digitalization of value
creation processes• Carried out e-Learning training (approx.
200 attendees) and training using internal
instructors (approx. 400 attendees) in order toimprove IT literacy as well as training humanresources with expertise in both the businessand digital fields• The planned reduction of 39,000 hours / year
in working hours through the use of efficiency
tools and automation such as RPA was notachieved. Initiatives in the Nissha Group in
Japan have made a certain level of progress,
and we are planning to expand the use tooverseas Nissha Group companies• Made work more efficient using a work designer

Creating technologies
to achieve businessstrategies• Create product platforms aimed
at increasing development efficiency in priority markets• Product groups were listed and thecommon technologies needed when
they were developed were clarified, thenproduction platforms were built and thetarget number of cases (3 cases / year) was
achieved

Nissha Sustainability Report 2024

GovernanceMaterialities

Improving theeffectiveness of theBoard of Directors

Advancement of global
governance

Scenario for Achieving Materialities(Strategy Items)• Upgrade systems related tocorporate governance and group
governance

Progress in FY2023• Put into practice the Desirable Relationshipbetween Internal Directors and Outside
Directors• Reconfirmed the standard for agenda items
submitted to the Board of Directors and review
operation of reporting items• Implemented actions in response to internal
control checklist• Understood the compliance status of the RBA
Code of Conduct (Malaysia and China regions)3-7

Environment
Contents /Editorial Policy

3-5

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Initiatives in Which Nissha Participate and External Evaluations

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

on the 10 principles of the Global Compact and work daily
toward achieving them with an eye to meeting the needs ofglobal society. We disclose information about our activities insustainability reports, published on the Nissha Group website.

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

■ TCFD (Task Force on Climate-Related Financial

Disclosures)

3-5-1 Initiatives in Which Nissha Participate■ United Nations Global Compact

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

LabourPrinciple 3: Businesses should uphold the freedom of associationand the effective recognition of the right to collective
bargaining;
Principle 4: the elimination of all forms of forced and compulsory
labour;Nissha Co., Ltd. support the United Nations Global Compact
since April 2012.
The United Nations Global Compact (UNGC), the world's largest
sustainability initiative, brings together the United Nations andthe private sector (companies and organizations) to build ahealthy global society. Its purpose is to have various companies
and organizations show responsible and creative leadership, andthereby act voluntarily as good citizens to achieve sustainablegrow th. Companies and organizations that sign the UNGC
are required to continue to work toward the realization of
the 10 principles, which relate to the protection of humanrights, the elimination of unfair labor practices, environmental
responsibility, and the prevention of corruption, based on thecommitment of the top management of the company.
At Nissha Group, we have in place various target s ba sed

Nissha Sustainability Report 2024

Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment
and occupation.

Environment
Principle 7: Businesses should support a precautionary approach toenvironmental challenges;

I n J a n u a r y 202 2 , w e e x p r e s s e d a g r e e m e n t w i t h t h e
recommendations from the TCFD (Task Force on Climate-related
Financial Disclosures).
The TCFD, established by the Financial Stability Board (FSB),
recommends that companies take measures to understand andaddress climate change-related risks and opportunities as amanagement issue.
In this Report, we have implemented information disclosurethat employs the framework items recommended by the TCFD.
And in addition to aiming for the continued enhancement ofgovernance and strategy concerning climate change moving
forward, we will also promote the expansion of information
disclosure■ Japan Clean Ocean Material Alliance (CLOMA)

Principle 8: undertake initiatives to promote greater environmental
responsibility; andPrinciple 9: encourage the development and diffusion of environmentally friendly technologies.

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

United Nations Global Compact

In January 2019, we joined the "Japan Clean Ocean Material
Alliance" (CLOMA), which aims to solve the marine plastic waste
problem. CLOMA is an organization established by the public
and private sectors to accelerate efforts across industries such as
proper management of plastic waste, promotion of the 3Rs, andpromotion of developing of alternative materials.

3-8Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

3-5-2 External Evaluation■ CDP■ EcoVadis■ FTSE Blossom Japan Sector Relative Index

I n F e b r u a r y 2024, w e
received a "B" rating in the
Climate Change Report 2023
published by the CDP, aninternational non-governmento r g a n i z a t i o n ( N G O) t h a t
focuses on the environment. This is the third highest of the eightlevels of evaluation.

We have been awarded the Bronze rating in EcoVadis sustainability
survey. EcoVadis is a global sustainability rating provider that aims to
improve corporate environmental and social initiatives throughout
the supply chain. They evaluate companies' activities in the areasof Environment, Labor Practices and Human Rights, Ethics, andSustainable Procurement.

We have been selected a s
a constituent stock of the
FTSE Blossom Japan Sector
Relative Index. This index
developed by FTSE Russell
is de sig ned to ref lec t theperformance of companies inJapan demonstrating strong
Environmental, Social and Governance (ESG) practices in eachsector. The Government Pension Investment Fund (GPIF) is using it
as their ESG index.

■ MSCI ESG Ratings■ FTSE Blossom Japan Index■ MSCI ESG Leaders Indexes

We have received an “ A A”
rating (the second highest
rating) in MSCI ESG Ratings.
MS CI In c. c a l cu l at e s a n dpublishes numerous stock
indices, and provides a variety of tools for institutional investors
globally to support their decision-making on investment. The MSCIESG Ratings comprehensively evaluates the companiesʼ activities
for the environment, social, and governance of thousands ofcompanies around the world and compares them by industry. MSCI
evaluates and rates the companies in seven grades from the highest
rank “AAA” to the lowest “CCC”. （*1）

We have been selected a s
a constituent stock of the
FTSE Blossom Japan Index.
T h e F T SE B l o s s o m Ja p a n
Index is an index developed
by FTSE Russell that reflects
the performance of Japanese
co mp a ni e s w i t h su p er i o renvironmental, social and governance (ESG) performance. The
Government Pension Investment Fund (GPIF) using it as their ESG
index.

We have been selected as aconstituent stock of the MSCIESG Leaders Indexes. This is a
global index developed by USbased MSCI Inc. and formedby selecting top-rated ESG companies. （*1）

Nissha Sustainability Report 2024

3-9

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

■ MSCI Nihonkabu ESG Select Leaders Index■ S&P/JPX Carbon Efficient Index■ SOMPO Sustainability Index

We have been selected a s
a constituent stock of the
MSCI Nihonkabu ESG SelectLeaders Index. This index uses
the MSCI Japan Investable
Market Index (IMI) developed by US-based MSCI Inc. as its parent,
and formed by selecting top-rated ESG companies with the targetof 50% of stocks in each industry. The Government Pension
Investment Fund (GPIF) also uses it as their ESG index. （*1）

We are included as a constituent
stock of the S&P/JPX Carbon
Efficient Index. The S&P/JPX
Carbon Efficient Index is built by
the S&P Dow Jones Index, one of
the worldʼs largest independentindex companies, based oncarbon emissions data from
Trucost, a pioneer in environmental assessment. This index increases theinvestment weight of companies in the same industry with high carbon
efficiency, and those that disclose information on their greenhouse gas
emissions. The Government Pension Investment Fund (GPIF) is using it
as their ESG index.

We hav e b e en s el e c te d a s
a co ns t itu ent s to ck of t he
SOMPO Sustainability Index,
an index managed by Sompo
Asset Management Co., Ltd.
in su cce s si o n sin ce 2012.
This index is a unique active
index, which is composed ofapproximately 300 companies
with outstanding ESG initiatives.

■ MSCI Japan ESG Select Leaders Index■ Morningstar Japan ex-REIT Gender Diversity Tilt Index■ Certified Health and Productivity Management Out-We have been selected as aconstituent stock of the MSCIJapan ESG S elec t Leader s
Index. This index uses the
MSCI Japan Investable Market
Index (IMI) developed by US-based MSCI Inc. as its parent, andformed by selecting top-rated ESG companies with the target 50%
of market capitalization in each industry.（*1）

We have been selected as aconstituent stock of theMorningstar Japan ex-REIT
Gender Diversity Tilt Index(hereinafter, GenDi J), which isadopted by the Government
Pension Investment Fund(GPIF) as an ESG investment index. GenDi J is an index of the initiatives
concerning corporate gender diversity provided by Morningstar, aleading investment research firm and mutual fund rating evaluator in
the United States. We are currently in Group 1 (the top of 5 groups).
（*2）

Nissha Sustainability Report 2024

2024

Sompo Sustainability Index

standing Organizations
We have been recognized as a
"Certified Health & Productivity
Ma na g em ent O u t s t a n ding
Organizations (Large Enterprise
Category)" by the Ministry of
Economy, Trade and Industry
for the third year in a row.
The cer tification is given tocompanies with especially excellent health management practices.

3-10

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification■ Kurumin Certification
We have received “ Kurumin”
certification for threeconsecutive terms since thefiscal year ended March 2010,
and also certified with Platinum
Kurumin in March 2019. Basedon the Act on Advancement of
Measures to Support Raising
Next-Generation Children, “ Platinum Kurumin” is a certificationof companies that have already obtained Kurumin certification inrecognition of their measures to support employees with children andare carrying out initiatives at an even higher level.

■ DX (Digital Transformation) Certification
In August 2021, we havecertified as a "DX-Certified
Operator" based on the DX(Digital Transformation)
certification system establishedby the Ministry of Economy,
Trade and Industry (METI). It wasevaluated that our DX efforts
and appropriate information
disclosure to stakeholders meet the standards required by METI.

Nissha Sustainability Report 2024

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities*1 THE INCLUSION OF Nissha Co., Ltd. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS,
TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE ASPONSORSHIP, ENDORSEMENT OR PROMOTION OF Nissha Co., Ltd. BY MSCI OR ANY
OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCIAND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF
MSCI OR ITS AFFILIATES.
*2 Morningstar, Inc., and/or one of its affiliated companies (individually and collectively,“Morningstar”) has authorized Nissha Co., Ltd. to use of the Morningstar Japan exREIT Gender Diversity Tilt Logo (“Logo”) to reflect the fact that, for the designatedranking year, Nissha Co., Ltd. ranks in the top quintile of companies comprising theMorningstar® Japan ex-REIT Gender Diversity Tilt IndexSM (“Index”) on the issueof gender diversity in the workplace. Morningstar is making the Logo available foruse by Nissha Co., Ltd. for informational purposes. Nissha Co., Ltd. use of the Logo
should not be construed as an endorsement by Morningstar of Nissha Co., Ltd. or asa recommendation, offer or solicitation to purchase, sell or underwrite any security
associated with Nissha Co., Ltd. The Index is designed to reflect gender diversity in theworkplace in Japan, but Morningstar does not guarantee the accuracy, completenessor timeliness of the Index or any data included in it. Morningstar makes no express or
implied warranties regarding the Index or the Logo, and expressly disclaim all warranties
of merchantability or fitness for a particular purpose or use with respect to the Index, any
data included in it or the Logo. Without limiting any of the foregoing, in no event shall
Morningstar or any of its third party content providers have any liability for any damages(whether direct or indirect), arising from any partyʼs use or reliance on the Index or the
Logo, even if Morningstar is notified of the possibility of such damages. The Morningstar
name, Index name and the Logo are the trademarks or services marks of Morningstar,
Inc. Past performance is no guarantee of future results.

Governance
Quality Management / Efficiency
and Productivity Improvement

3-6

Governance

GRI Standards Content
Index / ESG Data

Nissha Group Stakeholders

We identify the stakeholders as our customers, shareholders,
employee s, supplier s, and s o ciet y. Toward realizing our
Mission, we aim to realize our respective visions while valuing a
relationship with the stakeholders in which we affect each other.

Nisshaʼs Circle of Trust■ Customer
The Nissha Group operates three core businesses, Industrial
Materials, Devices, and Medical Technologies. We provide a rangeof products and services that satisfy market needs and engage inbusiness activities that help solve social issues. We also promote
fair operating practices, efforts in labor and human rights, and thebuilding of environment-conscious production systems so that ourcustomers can feel safe about entrusting us with work.

3-11

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

Communication■ Employee■ Society• Sales activities in daily operations• Products and services information provided on our website• Providing information for sustainability survey• Providing information about conflict minerals• Supplier responsibility (SR) audits by customers

The Nissha Group recognizes that human resources are thedriving force for improving corporate value. We view changes
in the business environment as opportunities for growth, andaim to grow both the company and our employees by bringing
together "diverse capabilities and passions.” We respect ouremployeesʼ human rights and diversity from a global perspective,p r o m o t e t h e c r ea t i o n o f s af e, c o mf o r t a b l e w o r k p l a c eenvironments, and offer support for diverse work styles so that
our employees can live up to their full potential.

The Nissha Group comprises a network that spans across theglobe, and in each region, we carry out business activities withrespect for the local culture and climate. While promoting
communication with local communities to fulfill our basic
responsibilities as a corporation and to be a company that isneeded by society, we also strive to be aware of global social
issues and play a role in resolving them.

■ Shareholder
We have in place an Investor Relations (IR) division and a
Shareholder Relations (SR) division to serve as contact points for ourshareholders and investors, and to establish a system for promoting
deeper communication with our shareholders and comprehensively
providing financial and non-financial information. We also create
opportunities to meet directly and exchange dialogue with ourshareholders and investors through IR events and one-on-one
briefings. Feedback and comments are reported regularly at Boardof Directors meetings and to the management, and used for theenhancement of our corporate value.

Communication• Shareholdersʼ meetings and management briefings following
shareholdersʼ meetings• Financial results presentations for institutional investors• The Medium-term Business Plan presentations for institutional
investors• One-on-one briefings for institutional investors• Response to individual inquiries• IR information and sustainability information provided on our
website• Materials published for shareholders and investors (integrated
report, business report, sustainability report, etc.)• Providing information to investigation institutions for ESG
investment

Nissha Sustainability Report 2024

Communication• Dialogue between labor and management• Education and training• Personnel evaluation and interviews• Hotline• Providing information via the company intranet and company
newsletter• Engagement survey and interviews

Communication• Environmental initiatives• Support and promotion of arts and culture• Future generation support activities• Exchange events with community people• Factory and facility tours• Cleanup activities in factory areas• Employeesʼ participation in volunteer activities■ Supplier
We procure the materials, equipment, and services necessary for
production and a wide range of business activities from suppliersin various regions. We work fairly and equally with all suppliers topromote sustainable procurement in order to share awareness ofour social responsibility and enhance mutual corporate value.

Communication• Procurement activities in daily operations• CSR procurement briefings• CSR survey (Self Assessment Questionnaire: SAQ) and audit• In-house exhibitions and seminars themed around supplierproducts and technologies

3-12Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Third Party
Verification

Environment

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

4. Environmental Policy and Management Structures
4-1

Policy and Principles

4-2

Nissha Group has established an "Environmental Policy". And together with a "Environment Principles" thatoutlines specific conduct and regulations, we disseminate them to all employees. We have also set out the
Nissha Group Environmental Objectives within the Nissha Group in Japan. Each business site and division
sets their own goals in an effort to achieve those objectives, and acts in accordance with their activity plans.
These goals are linked with the Key Performance Indicators (KPI) for each business unit and are directly connected with our business activities. In January 2024, we set the environmental goals for a six-year period
from the fiscal year ending December 2024 to the fiscal year ending December 2029.

Environment Policy
Nissha Group, as a member of the global society, aim for business development and the realization of asustainable society through environmentally conscious corporate activities.

Management Structures

The Nissha Group deploys our environmental management system in all aspects of our businessactivities.
Under the Risk Management and Compliance Committee, at Nissha Group in Japan Environmental
Management Representative take the core role in creating environmental management systems
through the leadership of a senior director of Corporate General Affairs, and Corporate General Affairs of the Head Office serves as the central office for this endeavor. Furthermore, we also create,
maintain, and constantly improve systems for compliance with environmental laws and regulations
and the RBA (Responsible Business Alliance), which serves as a global code of conduct mainly forthe electronics and automobile industries.

Environmental Management Structure

Junya Suzuki
Chairman of the Board, President and CEO
Nissha Co., Ltd.

The Environment Principles
1. We shall honor environmental laws, agreements with local communities, and demands from our customers.
2. We shall promote the reduction of greenhouse gas emissions through working to improve energy efficiency,
etc. in order to deal with climate change risks.
3. We shall aim to construct a recycling society through our business activities, from product development andproduction to sale, etc., reducing the environmental impact of our supply chain overall.
4. We shall construct a management system and promote continuous improvements to suit changes in thebusiness environment.
5. We shall value biodiversity and prevent pollution while co-existing with nature.
Daisuke Inoue
Director of the Board, Senior Executive Vice President, General Affairs
Nissha Co., Ltd.
Established on April 1, 2012 / Revised on May 1, 2022

Nissha Sustainability Report 2024

4-1

Environment
Contents /Editorial Policy

4-3

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Environmental Management
System (EMS)The Nissha Group operates an environmental occupational
health and safety management system that includes compliancewith items required by customers and by laws and regulations,based on the ISO14001 Environmental Management Systemand the ISO45001 Occupational Health and Safety Management
System. We formulated an action plan to achieve our targets, andin addition to repeating the PDCA cycle with an eye to sustained
improvements, we are striving to implement and improve assessments through regular internal audits and management reviews.
Core business sites that have acquired ISO14001 certification
implement environmental hazard evaluations (risk assessments).
We evaluate the environmental risks that have been identified,
set priorities, and reflect the assessment in concrete actions. In
addition to setting KPI directly related to business activity, we also
strive for environmental performance improvement that interlocks with quality targets, etc. Through these activities, we assess
negative risks that impose an undesirable impact on the environment and business and engage in improvement, maintenance,and management aiming to reduce those risks.

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Dataconsideration the reduction of environmental impact, develop
and mass-produce products that contribute to reducing environmental impact, such as sustainable packaging materials.
Moreover, the EMS for the Nissha Group covers all our bases, notonly major production bases, but also small production bases
and sales bases with little impact on the environment. Domestic
business locations are classified into ISO14001-certified bases
and noncertified bases and set their priority management items
as appropriate. The effectiveness of our EMS has ensured a highlevel of performance by engaging in confirmation, correction,and improvement through initiatives including once-a-year periodic internal auditing and support for legal and regulatory compliance and responding to law and regulation revisions. The biannual management review report meeting includes confirmationon the response to points stipulated by the officer responsible forgeneral affairs and environment management representatives
and the sharing of major environmental risks and action examples that may be useful as a reference. As such, it links to continued improvement.

In our currently active 8th Medium-term Business Plan (FY2024.
12 – FY2026.12), we set medical devices, mobility, sustainable
materials, etc. as priority markets, and aim for growth via product lineups and services that contribute to solving social issues.
As positive environmental contributions, our development andproduct technology divisions set development themes at the
product design and development stage from the social issue resolution perspective of SDGs and ESG in addition to taking into

Nissha Sustainability Report 2024

4-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

5. Impact on the Environment out of Our Business Operations
In order to manage the impact on the environment out of our business operations, Nissha Groupgrasps the input of major materials, the amount of waste, the amount of energy and water used,
and the amount of exhaust and emissions.
The amount of major raw materials used at the Nissha Group in the fiscal year ended December
2023 was 85,273t, a decrease of approximately 31% from 123,982t used in the previous fiscal
year. Of this amount, 16,466t was used at domestic production bases, a decrease of approximately
14% from the 19,114t used in the previous fiscal year. 68,807t was used at overseas production
bases, a decrease of approximately 34% from 104,868t used in the previous fiscal year. Overseas
production bases account for approximately 81% of the total amount of major raw materials used.
Of this amount, the paper used for Nissha Metallizing Solutionsʼ metallized paper products accounted for approximately 80%.
The amount of energy used by the Nissha Group was 217,027MWh of electricity, a decrease of
approximately 13% from the 250,732MWh used in the previous fiscal year, and 10,029,000m3 ofgas, a decrease of approximately 4% from the 10,485,000m3 used in the previous year. From thefiscal year ended December 2020, CO2 emissions are calculated using the market-based method forbases in Japan and the location-based method for overseas bases.
The overall Nissha Group waste material gross emissions were 20,841t, a decrease of approximately
23% from the 27,207t emitted in the previous fiscal year. In addition, Nissha Group in Japan wastematerial gross emissions were 11,057t, a decrease of approximately 19% from the 13,606t emitted in the previous fiscal year. The source of the reduction was a decrease in waste material output
by Nissha Precision and Technologies, Inc. (NPT). The overseas Nissha Group company waste material gross emissions were 9,784t, an increase of approximately 28% from the 13,601t emitted in
the previous fiscal year.

Nissha Sustainability Report 2024

5-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

SocialThird Party
Verification

Environment

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

INPUT

PET/acryl film

Devices

Others805t

Resin/plastic

5,887tFilm

Gravure ink

616t

Molds and molding

Resin

219t

materials

Chemical substances

16t

Ink

73t

2t

Touch sensors

0t

116t

Recyclable
resources

Waste containing noble metals

Recyclable

Waste containing

Metal waste

resources

noble metals(items sold for

Metal waste

recycling)

Resin waste(items sold for Resin waste
115t

Paper waste

Recyclable

Waste plastic

resources

Iron scrap, waste cans(industrial

Waste solvents, waste ink,

waste)

waste cloth

18t

Packing materials

Packaging materials

57t

Paper

55,185t

Waste acid, alkali

Cardboards

1,263tSludge, others

Aluminum

1,163t4,801tMetallic materials

3t

Metal

Resin materials

3t

Chemical substances

Half-finished goods

121tOthersPrinted circuit board
assembly

4t

Total for overseas production bases

4,823tPackaging materials

553t

Product materials

71t

Resin materials

31t

PET film

3t

Alminum

6t

Packing materials

27t

Paper

3,513tInk

38t

Packaging materials

1t

Total for production bases in Japan

Nissha Sustainability Report 2024

1,471trecycling)

Other metals

Materials used in productmanufacturing processes

Overseas production bases

Production bases in Japan

735t

Chemical substances

MedicalTechnologies

Overseas production bases

Solvents

Aluminum

GRI Standards Content
Index / ESG Data

OUTPUT

Production bases in Japan
Industrial
Materials

Governance61t
3,368t104t
68,807t

Waste for

General business waste

simpleOthers (industrial waste)incineration/

3,560tPaper waste
Others7,470t27t

landfill
Total for production bases in Japan

11,057t

Recyclable

Waste plastic

resources

Waste ink, waste(industrial

solvents

waste)

Others

Non-recyclable

Incineration/

waste

landfill

Total for Nissha Group

20,841t

Including production bases in Japan and overseas

Water

Electricity

217,027MWh

Gas

10,029,000m3

Tap water

912,000m3

Underground water

42,000m3

Industrial water

100,963t

CO2
VOC

Wastewater
Energy1,762t
9,784t

85,273t

Including production bases in Japan and overseas

615t

Total for overseas production bases

Emissions
Total for Nissha Group

7,407t*1681t2,002,000m3*1. Detoxified by direct combustion, catalyst deodorization, etc.

1,282,000m3

16,466t

5-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

6. Responding to Climate Change (Addressing the TCFD Recommendations)
Nissha Group publicly endorsed the recommendations made by
the Task Force on Climate-related Financial Disclosures (TCFD) in
January 2022. Since then, we have been analyzing the financial
impact of risks and opportunities related to climate change on
our Groupʼs businesses using the framework of the TCFD recommendations, and disclosing the results.

Materialities (Key Issues) Management

General Risks Management• Materialities (key issues) are identified through deliberation and resolution by the Board of Directors meeting and managed by the Sustainability
Committee which is chaired by the Chairman of the Board, President andCEO and vice-chaired by the Director of the Board, Senior Executive Vice
President (in charge of ESG Promotion).

• Risks that would hinder smooth business operations are managed by
the Risk Management and Compliance Committee, which is chaired by
the Senior Executive Vice President (in charge of legal affairs).

• The Sustainability Committee manages the identified materialities. The
ESG Task Force has been set up to promote the theme of “responding toclimate change,” which is considered particularly important from the ESG
perspective.

6-1

Governance

The Nissha Group manages its response to climate change by
distinguishing between materiality (risks and opportunities related to the realization of our Sustainability Vision), which arematerial issues for the Group, and general risks (risks related tosmooth business operations).
The governance and promotion structure for materialities andgeneral risks are as shown below.

• In addition to setting KPIs and Action Items and reporting progress to the
Sustainability Committee, the ESG Task Force discusses the companyʼs responses to climate change with the Board (excluding independent outside
directors, but including the President) on a half-yearly basis.
• The Board of Directors supervises the activities of the Sustainability Committee, which manages items related to materialities (KPIs, Action Items).
It deliberates on the contents of the Committeeʼs report once a year, andgives instructions for improvements as necessary.
• The President makes important strategic and financial decisions concerning our responses to climate change within the scope of his authority. To
help them make decisions appropriately, the President and the Senior
Executive Vice President (in charge of ESG Promotion) learn about climatechange through study sessions and training by outside experts.

• The Risk Management and Compliance Committee centrally manages
risks. It assesses risks and selects key risks. One of the key risks, BusinessContinuity (natural disasters such as earthquakes, typhoons, and floods)
encompasses climate change-related risks, and the Business Continuity
Management Subcommittee takes charge of moving ahead with this.
• The Business Continuity Management Subcommittee sets KPIs andAction Items, and promotes measures for reducing risks. It formulates
and updates response plans for preparing for or dealing with emergency
situations in the event of a natural disaster, and reports on progress to
the Risk Management and Compliance Committee.
• The Board of Directors supervises the activities of the Risk Management
and Compliance Committee, which manages key risks that include
climate change-related risks. It deliberates on the contents of the Committeeʼs report once a year, and gives instructions for improvements asnecessary.

• Introduced stock-based compensation * as mid- to long-term performance-linked compensation for directors (excluding independent outside
directors) and corporate officers. One of the indicators for the mid-termtarget is the degree of progress to the total CO2 emissions reduction target.
*About stock-based compensation- Points are awarded based on the degree of achievement of mid-term targets and the consolidated performance target for each fiscal year over the three-year period of Nissha ʼs Medium-term Business Plans.
- On a set date in the final fiscal year of each Medium-term Business Plan, points are confirmed, and Nissha shares and money equivalent to Nissha shares converted at the market price are granted.

Nissha Sustainability Report 2024

6-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

In the Nissha Group, the departments responsible for promoting
the Sustainability Committeeʼs materialities (business divisions,lead departments, ESG Task Force) and the departments thatmanage risk for the Risk Management and Compliance Committee (business divisions, lead departments, subcommittees) workwith the various departments (corporate management departments, business development divisions, business divisions) at the
Head Office and with Group companies in Japan and overseas
on formulating measures, thus working on reducing general risks
and achieving the materialities, including climate change.

SocialHuman
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG DataManagement Structure
Board of Directors
Supervise
Approve materiality

ReportReportSupervise

Sustainability Committee

Risk Management and Compliance Committee

Management of Materialities (Key Issues)

Management of General risks

Committee Chair

Committee Chair

Vice Chair

Secretariat(President)(Director of the Board, Senior Executive Vice President, Legal Affairs)(Director of the Board, Senior Executive Vice President, ESG Promotion)(Corporate Legal Affairs and Global Integration Planning Departments)

Secretariat(ESG Promotion Department)

Creating
Business
Opportunities(Businessdivisions)

Risk
Reduction(Lead
Departments)

Strengthening
Management
Foundation(Lead
Departments)

Corporate
GovernanceBusiness divisions, lead departments,and subcommittees that manage risks(Lead
Departments)

ESG Task Force

ReportInstruction / Supervise

ReportInstruction / Supervise

Head Office
Corporate
Management
Departments

Nissha Sustainability Report 2024

Business
Development
Divisions

Nissha Group in Japan

Nissha Group in Overseas

Business
Divisions6-2

Environment
Contents /Editorial Policy

6-2

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities*3.RCP4.5: a scenario in which CO 2 emissions peak in 2040 and stable economic

Strategydevelopment is achieved.
*4. RCP8.5: a scenario in which CO2 emissions continuously increase and uneven economic
development is achieved.

We have conducted a scenario analysis of the impact of futureclimate change on our business operations, using a range of scenarios of projected environmental change, based on the framework recommended by the TCFD.

Temperature rise in 2100 under each scenarioof the Nissha Group (Industrial Materials, Devices, Medical
Technologies)‒ Scenario analysis time horizon: Study transition risks andphysical risks and opportunities in the short term (1-2 years),
medium term (3-5 years), and long term (6-10 years)‒ Assumed scenario: See IEA's Net Zero Emissions by 2050
(NZE)*1, Stated Policies Scenario (STEPS)*2, IPCC's RCP4.5*3
and RCP8.5*4, etc. scenarios*1.NZE: a scenario in which the world decarbonizes and achieves virtually zero
scenario ” because the averagetemperature increase as of 2100, compared to pre-industrial times, will be
between 1.3 and 1.5 .
*2.STEPS: a scenario in which countries implement their stated current specificpolicies on decarbonization and no additional decarbonization-related policies
are introduced. It is called the “ 3scenario ” because the average temperature

increase as of 2100, compared to pre-industrial times, will be between 2.4 and2.8 .

Nissha Sustainability Report 2024

Governance

GRI Standards Content
Index / ESG Data

parameters in each scenario, and the results are described
below as “magnitude of risk” and “magnitude of the opportunity.”)(iv) Consider countermeasures (adaptation, mitigation)(3) Results of risk analysis

Source: created internally based on the IEA World Energy Outlook, 2021

‒ Scenario analysis target business: Three main businesses

CO 2 emissions in 2050. It is called the “ 1.5

Quality Management / Efficiency
and Productivity Improvement

Our transition and physical risks related to climate change, andthe magnitude of the risks in each scenario, as well as our response to these risks are analyzed and considered as shown in
the table below for the set time horizon.

The Medical Technologies business has now been added to theanalysis, so all three of the major businesses of Nissha are now
covered. We also analyzed the impact of future climate change
on our business on a time horizon of 1 to 2 years in the shortterm, 3 to 5 years in the medium term, and 6 to 10 years in thelong term, including the Sustainability Vision, and we considered
measures to respond to these impacts.
(1) Scenario analysis assumptions

Governance

Under the two scenarios referenced from the IEA, we believe that
we can visualize many climate change-related risks and opportunities by using the 1.5 °C scenario in which regulations are tightened and zero CO2 emissions are achieved by 2050, and the 3°C
scenario in which no additional policies are introduced and climatechange measures do not progress.
(2) Scenario analysis process
Scenario analysis was conducted using the following process:(i) Consider significant climate-related risks and opportunities for three main businesses(ii) Consider and create scenarios as preconditions for evaluation(iii) Assess risks and opportunities based on the scenarios(Risks and opportunities are assessed by calculating andevaluating the "financial impact" as of 2030 using the

6-3

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

Results of risk analysis
Type

Changes in the external environment

Introduction of a carbon tax

TargetbusinessTimehorizonRisks to Nissha

Policies/laws and regulations

Increase in production and countermeasure costs due to carbon taxation on CO2 emissions
Industrial Materials
Medium to
Deviceslong-term
Medical Technologies
Increase in the cost of procuring raw materials needed to produce
products due to the carbon taxes

Industrial Materials
Increase in electricity procurement costs due to switch to renewable
Devices
Changes in national carbon emission Medical Technologies Medium to energy sources for electricity and soaring levies, etc.
long-term
targets and policies
Cost of reducing CO2 emissions in logistics (procurement and shipping)
Devicesincreases

Risk magnitude*1,2
3℃
1.5℃
Small

Medium

Small

Small

-

Small

Industries and Markets

Transition risk

Medium to Increase in the cost of procuring raw materials needed to produce
long-term products due to the progression of plastics-related regulations‐

Introduction of CFC regulations

Devices

Medium to Restrictions on use of specified CFCs and their substitutes used atlong-term production bases increase capital investment costs

Small

Fluctuations in raw material prices

Industrial Materials

Increase in petrochemical material costs due to changes in crude oil
MediumMedium to demand
long-term‐
Increase in raw material costs due to increased use of reprocessed plastic

Increase in EV sales

Industrial Materials

Changes in customer behavior(increase in requests from customers Devices
to reduce CO2 emissions)Short tomediumterm

Net sales decline due to lost business opportunities caused by insufficient
responses to customer requests

Technologies

Transition to materials and technoloDevices
gies with lower environmental impact

Reputation

Costs increase due to replacing product packaging materials

Growing importance of ESG assessDevices
ment in customersʼ supplier selection

Mediumterm

logical trends and develop products‒ Adaptation Improve purchasing power through global procurement‒ Mitigation Introduce energy-saving production equipment‒ Mitigation Reduce electricity consumption‒ Mitigation Consider the introduction of solar and wind power generation facilities‒ Adaptation Study trends in the logistics industry and consider shifting to transportation methods that emit

less CO2‒ Adaptation Study the use of biomass plastic and recycled plastic as low-carbon materials, research techno-

Industrial Materials

Decrease in sales opportunities for EV-related products due to changes
in market structure‒ Adaptation Study the use of biomass plastic and recycled plastic as low-carbon materials, research techno-‐

Introduction of plastic tax

Short tolong-term

Adaption / Mitigation measures‒ Mitigation Switch to renewable energy sources at production sites
Medium ‒ Mitigation Introduce energy-saving production equipment‒ Mitigation Review productivity and efficiency in the production processes

Smalllogical trends and develop products‒ Adaptation Further promote the development of the ecosense molding brand of sustainable molded products orient-

ed toward the elimination and reduction of plastic, and increase the sales ratio of sustainable materials

Small

Medium ‒ Adaptation Research technology trends to enable compliance with CFC regulations
‐

Small
‐

Small

Medium‐Small‒ Adaptation Study the use of biomass plastic and recycled plastic as low-carbon materials, research techno-

logical trends and develop products‒ Adaptation Further promote the development of the ecosense molding brand of sustainable molded products orient-

ed toward the elimination and reduction of plastic, and increase the sales ratio of sustainable materials‒ Adaptation Promote product development and enhance production facilities in response to market trends

for next-generation vehicles other than Evs‒ Mitigation Conserve energy through improved productivity and reduce CO2 emissions through switch torenewable energy‒ Adaptation Investigate alternative materials that can reduce costs while maintaining the quality of packag-

ing materials

Net sales decline due to substituting our products for low-carbon prodMedium Medium ‒ Adaptation Develop low-carbon products with lower environmental impact
ucts made by other companies
Net sales decline due to lost business opportunities resulting from delays
Medium Medium ‒ Adaptation Promote the development of low-carbon technologies
in the development of low-carbon technologies

Short tomediumterm

ESG assessment declines due to delays in addressing climate-related issues, and we are not chosen as a supplier resulting in a decline in net sales

Small‒ Adaptation Enhance climate change initiatives and disclose information appropriately

Small

Small

‒ Adaptation Improve and strengthen BCP, and establish a system to support affected sites‒ Adaptation Build a supply chain for stable procurement, including multi-company purchasing and out-

‒ Decline in net sales due to production delays or suspensions resulting

Acute

Physical risks‐

Intensification of extreme weather*3

Industrial Materials
Devices

Short tolong-termfrom damage to production bases, and incidence of repair costs due todamage to company assets such as buildings, facilities, and inventory‒ Decline in the companyʼs net sales due to the impact of the suspensionof the supply of raw materials and parts due to disasters at suppliers

sourced production of raw materials at multiple factories and lines*1. Risk magnitude evaluation horizon: Changes in net sales Large: 20 billion yen or more, medium: 5 to 20 billion yen, small: less than 5 billion yen / Operating profit/loss: Large: 3 billion yen or more, medium: 1 to 3 billion yen, small: less than 1 billion yen*2. Scenarios in which no risks are incurred are indicated with a “-”*3. For physical risks, hazard maps were created for the key production bases for each business (30 locations) and AQUEDUCT was used to carry out surveys. The financial impact on bases where risks had been identified was evaluated by considering the frequency of occurrence.

Nissha Sustainability Report 2024

6-4

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

Based on the above analysis, no significant and hard-to-handle risks associated with climate change
were identified at this stage in our three main businesses. The following risks associated with climatechange are applicable to multiple businesses and will have a relatively large impact on our business.

As a measure to address (ii), in the Industrial Materials business, we are investigating technologicaltrends, examining the use of biomass PET and other biomass plastics and recycled plastics, and developing products to reduce the use of virgin plastics.

[Transition risk](i) Increase in production and countermeasure costs due to carbon taxation on CO2 emissions (1.5°
C scenario)(ii) Increase in the cost of procuring raw materials needed to produce products due to the carbon
taxes (1.5°C scenario)[Physical risks]No physical risks have been identified at this stage.

As a measure to address (i), we are promoting the switch to renewable electricity at our production
bases. Our main production bases in Japan, Nissha Industries, Inc. Koka Factory and Nissha Precision and Technologies, Inc. Himeji Factory and Kaga Factory have already made the switch to 100%
renewable electricity. At overseas bases, Nissha (Kunshan) Precision IMD Mold Co., Ltd. (China), a
production base for the Industrial Materials business, has continued to generate solar power, andNissha Metallizing Solutions (Belgium) has replaced part of its electricity with solar and wind power
at its production bases. In addition, we are working to reduce power consumption by streamlining
production and saving energy in production and infrastructure facilities. We will continue to promotemeasures while verifying the cost and effectiveness of such measures.

The Nissha Group has taken measures to address risks that we believe have a relatively large impact with respect to climate change in our three main businesses, and we consider ourselves to have climate resilience.
We will continue to monitor trends in the business environment under the 1.5°C and 3°C scenariosand develop our business strategically.
(4) Results of opportunity analysis
Based on our awareness that solving social issues related to climate change will create our business
opportunities, we have analyzed and examined the magnitude of the opportunities in each scenario
and our response to these opportunities in the time horizon we have set, as shown in the table below.

Results of opportunity analysis
Type

Products and Services

Target businessTimehorizonIndustrial Materials
Devices

Medium tolong-term

Expansion of demand for products that contribute to GHG emission
reductions

Industrial Materials

Medium tolong-term

Increase in sales opportunities for plant-derived sustainable molded
products due to the progression of plastics-related regulations

Industrial Materials
Devices

Short tolong-term

Increase in sales opportunities for EV-related products due to changes inmarket structure

Industrial Materials

Medium tolong-term

Increase in sales opportunities due to increased demand for sustainable
molded products as a result of the lower costs of plant-derived plastics

Devices

Mediumterm

Changes into theexternal environment
Carbon price
Changes in national
carbon emission
targets and policies
Increase in EV sales
Fluctuations in raw
material prices
Arrival of a hydrogenbased society

Opportunities to Nissha

Demand for Fuel Cell Vehicles (FCVs) expands

Opportunity magnitude*1,2
3℃

1.5℃

MediumMedium

Small
Small

Small
Small
Small
Small

Countermeasures‒ Develop and expand sales of products that contribute to GHG emission reductions (highly recyclable decorative

film moldings, gas sensor modules for refrigerant detection, etc.)‒ Further promote the development of the ecosense molding brand of sustainable molded products oriented toward

the elimination and reduction of plastic, and increase the sales ratio of sustainable materials‒ Develop and expand sales of new products for EVs (decorative film molded products and functional products forexteriors, touch sensors, etc.)‒ Further promote the development of the ecosense molding brand of sustainable molded products oriented toward

the elimination and reduction of plastic, and increase the sales ratio of sustainable materials‒ Develop and expand sales of products for the mobility market (such as hydrogen detectors) that contribute to

reducing our environmental impact*1. Opportunity magnitude evaluation horizon: Changes in net sales Large: 20 billion yen or more, medium: 5 to 20 billion yen, small: less than 5 billion yen / Operating profit/loss: Large: 3 billion yen or more, medium: 1 to 3 billion yen, small: less than 1 billion yen*2. Scenarios in which no opportunities are incurred are indicated with a “-”

Nissha Sustainability Report 2024

6-5

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

The following climate change opportunities are applicable to multiple businesses and have a relatively large impact on our business.
［Opportunities in transition risks］(i) Expansion of demand for products that contribute to GHG emission reductions(ii) Increase in sales opportunities for EV-related products due to changes in market structure
As a measure to address (i), the Industrial Materials business aims to expand sales of existing decorative films and molded products for mobility and consumer electrical appliances. The Nissha Group's
decorative films and molded products contribute to the reduction and control of GHG emissions byadding patterns and functions at the same time they are molded to eliminate the need for secondary decoration processes after molding, as well as by building an optimal supply chain for customers
from seven molding bases located around the world. We also aim to create products with even lower
environmental impact by undertaking recyclability studies and conducting Life Cycle Assessments(LCA) for each product to quantitatively evaluate the environmental impact.
In the Devices business, we are aiming to expand sales of gas sensor modules that can detect next-generation refrigerants produced by Nissha FIS. Although the next-generation refrigerants used in air conditioning and refrigeration units today have low ozone depletion potential, leak detection is necessary as
they are mildly flammable and have an extremely high greenhouse effect. We believe that our Group's
gas sensors can contribute to both safety and the prevention of global warming, and we aim to increase
our net sales by expanding our sales region to include North America and other overseas markets.
As a measure to address (ii), we have identified the expansion of products targeting the mobility
market as one of the priority markets for achieving our Sustainability Vision, and we are working toenhance EV-related products as a measure to address climate change.
The Industrial Materials business aims to expand sales of exterior decorative and functional products. For EVs that do not require engine cooling, there is a growing need to decorate the front as avehicle face design to replace the front grille, as well as a need to add functions to ensure the proper
operation of automatic driving radars in this area. In addition, there is a need for a heating function
to melt snowing sticking on headlights and front grilles.
The Devices business aims to expand sales of touch sensors for curved surfaces and large displays. Our
touch sensors are made from film-based material which provides high visibility and a narrow frame
while being thin, light, unbreakable, and bendable. In line with the growing demand for designs fornext-generation vehicles, a variety of touch sensors that leverage these features are required for EVs.

Nissha Sustainability Report 2024

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

We aim to expand net sales by developing new products that meet these EV needs to expand our product lineup. We intend to reflect our scenario analysis results in our business strategy, such as the growing demand for products that contribute to reducing GHG emissions and the expanding EV market.

6-3

Risk Management

The Nissha Group manages its climate change risks by distinguishing between materialities (risks andopportunities related to the realization of the Groupʼs sustainability vision), which are material issues
for the Group, and general risks (risks related to smooth business operations) and by the Sustainability Committee and the Risk Management and Compliance Committee assessing and managing eachof these risks in accordance with the following process.
In particular, for the risks associated with climate change, we conduct scenario analysis for eachbusiness. We extract transition risks and physical risks, evaluate the timing of risk occurrence and theimpact on finances for each scenario, and consider risk adaptation and mitigation measures.
Refer to 6-2 Strategy■ Risk Management by the Sustainability Committee
The Group has set out where it wants to be in terms of management by 2030 in the form of ourSustainability Vision (long-term vision). We are aiming to create social value by providing products
and services that contribute to solving social issues, and to achieve a 30% reduction in total CO 2
emissions in 2030 (compared to 2020) with a view to carbon-neutral by 2050. And to realize theSustainability Vision, we have identified items of particular importance as materialities.
The Nissha Group evaluates social issues from the perspectives of Creating Business Opportunities, Risk
Reduction, Strengthening Management Foundation, and Corporate Governance using the two axes of“importance to society and stakeholders”, and “importance to Nissha (i.e. importance for achieving our
Sustainability Vision)”. The identified social issues are prioritized by the Sustainability Committee, andmaterialities are identified through deliberations and resolutions by the Board of Directors.
We have identified the following material issues relating to climate change from the perspectives ofCreating Business Opportunities and Risk Reduction.

6-6

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

Materiality
Risk reduction

SocialHuman
RightsHuman
Resources

Related SDGs

Responding to climate change

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

work to reduce risk in business activities. Through these processes, key risks that include those associated with climate change are selected at the general meeting of the Risk Management and Compliance Committee.

■ Risk Assessments
Contribute to the safety and comfort of transportation
Creating businessand logistics, and the reduction of environmental impact

opportunities
Promotion of circular economy（1） Target bases‒ All Group companies in Japan‒ 55 Group companies overseas (Including when major overseas subsidiaries and their own

subsidiaries have been evaluated)（2） Target risks

The ESG Task Force works based on KPIs and Action Items approved by the Sustainability Committee.
It reports on its activities once per half year to Nisshaʼs internal directors, including the President, todebate the necessary actions.
Activities related to creating business opportunities are handled by the business divisions. The business divisions report to the Chairman of the Board, President and CEO at monthly meetings (business
reviews), at which the Chairman of the Board, President and CEO confirms the progress of businessstrategies based on key performance indicators and gives instructions on necessary action.
The Sustainability Committee reports its activities annually to the Board of Directors, and the Boardof Directors utilizes the contents of the report to formulate the Medium-term Business Plan andRolling Plan.

‒ Cross-group risks (including compliance risks) common to each business/Group company

Refer to 28-4 Risk Assessments（3） Selection process for key risks

The following process is used by the Risk Management and Compliance Committee to select key risks.
(i) For the above cross-group risks, the high-value risks calculated using the "probability of occurrence" and "impact when it occurs" horizons are considered the "inherent risks".
(ii) In addition, the "effectiveness of control activities" is evaluated, and risks with low "effectiveness of control activities" with respect to "inherent risks" are selected as key risks.
（4） Management method

Refer to 3-3 Promotion Framework for Sustainability / 3-4 Materialities (Key Issues) and KPIs

‒ Key risks (low "effectiveness of control activities" with respect to "inherent risks"): The lead de-■ Risk Management by the Risk Management and Compliance Committee

partment or subcommittee establishes key performance indicators and action items, and the
Risk Management and Compliance Committee confirms progress (business risks are led by thebusiness division and confirmed by business reviews and other means).

The Nissha Group carries out risk assessments for all Group companies both in Japan and overseas,and selects key risks for each company. The assessment targets, the common risks that cut acrossbusiness fields and Group companies, are assessed on two axes, “ probability of occurence” and“impact when it occurs,” with the addition of the effectiveness of control activities. The assessment
results are used to consider priority order by business divisions/Group companies, and business divisions/general managers confirm the validity of this from a business management perspective, thenNissha Sustainability Report 2024

‒ High "effectiveness of control activities" with respect to "inherent risks": Subject to monitoring,

managed by the lead department or subcommittee, and the Risk Management and Compliance Committee confirms the status of maintenance and operation.
‒ Cross-group risks other than "inherent risks": Managed by the business division and lead de-partment, and reported at the Monthly Business Review (MBR).

6-7

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

SocialThird Party
Verification

Environment

Human
RightsHuman
Resources

The company has selected Business Continuity (natural disasters such as earthquakes, typhoons, andfloods) as one of our key risks and includes climate change risk in this category.
As a measure to address risks, a "Business Continuity Plan" has been formulated to prepare for andrespond to natural disasters and emergencies should they occur, and the plan is promoted by the Busi
ness Continuity Management Subcommittee under the Risk Management and Compliance Committee. The Business Continuity Management Subcommittee, which manages such risks, works to mitigate risks based on KPIs and action items approved by the Risk Management and Compliance Committee, and reports the state of its activities to the Risk Management and Compliance Committee.

6-4

Indicators and Targets

We have defined total CO2 emissions as an indicator for assessing and managing risks related toclimate change. Our Sustainability Vision aims for a 30% reduction in CO2 emissions in 2030 (compared to 2020), with a view to carbon-neutral by 2050.
In the next fiscal year and beyond, we will consider establishing and publishing indicators and targets
to assess and manage climate change-related business opportunities.

The Nissha Groupʼs CO2 Emissions Reduction Target and Results (Scope1 and 2)(unit: t-CO2)
140,000-3%

120,000-6%-9%100,000

Reduction targets

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

The Nissha Group views sustainability as an initiative toward the achievement of sustainable growthand development for both the company and society. In other words, we consider social issues to bebusiness opportunities. We consider it important not only to leverage our strengths to provide products and services that help resolve these on an ongoing basis, but also to strengthen the managementfoundation underpinning our business activities, reduce risks that could hamper business continuance, and promote governance to ensure these are all carried out appropriately.
In the Sustainability Vision that presents our vision for ourselves in 2030, the Nissha Group defines
Medical, Mobility, and Sustainable Materials as the key markets to solve social issues through businessactivities. In addition, we have expressed our aim to reach 150 billion yen in products related to the
medical market, out of our consolidated sales of 300 billion, and are pressing ahead with reorganizing
our business portfolio.
The Medical Technologies business has now been added to the analysis, so all three of the major businesses of the Nissha Group have now been analyzed. As a result, although the transition and physicalrisks for the Nissha Group that are associated with climate change are important, we believe that theirimpact on our finances will be limited if sufficient measures are taken to address the risks we haveidentified through our analysis. Also, contributing to solving social issues related to climate change isconsidered a business opportunity for the Nissha Group.
Additionally, we have confirmed that the risks associated with climate change and its financial impact
will be small for the Medical Technologies business compared to other businesses. This means thatour growth strategy of business expansion in the medical market, which the Nissha Group is engaging
in with a view to our Sustainability Vision, is seen as something that can also contribute to reducing
climate change risks for the Group.

-30%（compared to 2020）

80,000

Achieved -18.7%

40,00020,000
0

2020

2021

2022

2023
Scope1

Nissha Sustainability Report 2024

2030
Scope2

6-8

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

GRI Standards Content
Index / ESG Data

Governance

7. CO Emissions and Reduction Efforts
2

7-1

CO2 Emissions Reduction Target

The global movement towards a decarbonized society by reducing greenhouse gases in response to theParis Agreement is progressing. Nissha Group regards addressing climate change as one of its most important management issues and our Sustainability Vision (long-term vision) aims for a 30% reduction in
CO2 emissions in 2030 (compared to 2020).
To promote specific activities towards our Sustainability Vision, we have established an ESG Task Forceunder the Sustainability Committee on the theme of addressing climate change, which is chaired by the
President. The ESG Task Force is promoting actions to reduce our Scope 1 and Scope 2 CO2 emissions by
3% per year, and to identify Scope 3 categories and calculate CO2 emissions in our supply chain.

7-2

Summary of Emission

The Groupʼs CO2 emissions are characterized by the ratio of Scope 2 emissions being significantly
higher than the ratio of Scope 1 emissions.
The total emissions for the fiscal year ended December 2023 was 100,963t-CO2, which is 25.4%
of Scope 1 and 74.6% of Scope 2. Total emissions dropped 12.0% over the 114,691t-CO2 fromthe previous fiscal year. The main reasons for this were the reductions in electricity use at the Himeji
Factory and Kaga Factory of Nissha Precision and Technologies, Inc. (NPT), and at Nissha Metallizing
Solutions (NMS).
Reference year
(FY2020)

The Group will promote these initiatives on a global basis, while monitoring global trends relating to the
reduction of CO2 emissions and moving ahead with switching to sustainable energy supplies, with an eye
to introducing even more ambitious target-setting.

Emission（t-CO2）％

FY2021
Emission（t-CO2）

FY2022％Emission（t-CO2）

FY2023％Emission（t-CO2）％Year-on-vs. reference

year

year

Scope 1

20,85316.8

24,19619.3

28,43524.8

25,609 25.4

-9.9

+22.8

Scope 2

103,35183.2

101,048

80.7

86,25575.2

75,354 74.6

-12.6

-27.1

Total

124,204

100,963

-12.0

-18.7

125,244

114,691

Refer to 8. Third Party Verification
The 100,963t-CO2 total CO2 emissions for the fiscal year ended December 2023 shown above includes 2,431t-CO2 from the chemical reactions used at the Koka Factory of Nissha Industries, Inc.
(NII) and at Nissha Metallizing Solutions GmbH (Germany) and Nissha Metallizing Solutions N.V.
(Belgium). This represents a 41.0% decrease compared to the previous fiscal yearʼs emissions of
4,121t-CO2.

Nissha Sustainability Report 2024

7-1

Environment
Contents /Editorial Policy

7-3

Nissha Group
Sustainability

SocialThird Party
Verification

Environment

Trends in CO2 Emissions andEnergy Consumption, etc.

The Nissha Groupʼs CO2 emissions and energy consumption are
shown below. The totals obtained by multiplying the individual
consumption of fuels such as electricity, gas, gasoline, diesel, andheavy oil with the specified factors are Nisshaʼs energy consumption levels. The figures obtained by multiplying energy consumption by the CO2 emission factors are the CO2 emissions of theGroup.
Nissha Group emits almost no energy-related greenhouse gases
other than CO2, and its impact is minimal.

Human
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities■ Energy Consumption and Basic Unit

Quality Management / Efficiency
and Productivity Improvement(unit: t-CO2, excluding basic unit)

GRI Standards Content
Index / ESG Data

■ Gas Consumption(unit: 1,000GJ, excluding basic unit)

Company

FY2021

FY2022

FY2023Nissha and others

104

124

109

NII

322

134

181

NPT

1,590

1,327

950

NCI

25

21

17

Overseas production bases

1,084

1,055

775

Total

3,124

2,662

2,032

Basic Unit*

0.01650.01370.0121(unit: 1,000m3)

Company

FY2021

FY2022

FY2023Nissha and others

244

195

204

NII

2,891

2,571

2,303

NPT

1,729

2,015

1,807

NCI

0

0

0

Overseas production bases

5,694

5,703

5,714

Total

10,558

10,485

10,029■ Gasoline, Diesel, and Heavy Oil Consumption*Energy consumption (1,000GJ) / Net sales (Millions of JPY)

■ CO2 Emissions Volumes and Basic Unit

Governance(unit: kl)

Company

FY2021

FY2022

FY2023Nissha and others

48

39

43

(unit: MWh)

NII

8

10

11

■ Electricity Consumption

Company

FY2020

FY2021

FY2022

FY2023Company

FY2021

FY2022

FY2023

NPT

11

10

9

Nissha andothers

3,721

3,925

4,249

5,429

Nissha and others

9,090

11,59011,447

NCI

2

2

1

NII

11,507

13,253

6,835

6,437

NII

19,30018,55918,446

Overseas production bases

151

147

133

NPT

69,57265,60453,056

48,661

NPT

151,635

126,056

108,512

Total

220

207

198

NCI

770

870

666

862

NCI

2,463

2,130

1,979

Overseas production bases

Overseas production bases

82,48592,39776,644

38,634

41,592

49,88539,575

Total

264,973

250,732

217,027

Total

124,204

125,244

114,691

100,963

Renewable Electricity

2,591

20,70934,095

0.69

0.66

0.59

0.60

Non-renewable electricity

262,382

230,023

182,932

Renewable Electricity Ratio

1.0

8.3

15.7

Basic Unit**CO2 emissions / Net sales (Millions of JPY)

Nissha Sustainability Report 2024

About the following tables
1. As of the fiscal year ended December 2020, we have adopted market standards
for the electricity emissions factor in Japan and use location standards for eachcountry as overseas electricity emissions factors.
2. The company names listed in the tables are as follows.
Nissha and others: Nissha Co., Ltd. and affiliated companies
NII: Nissha Industries, Inc.
NPT: Nissha Precision and Technologies, Inc.
NCI: Nissha Printing Communications, Inc.

7-2

Environment
Contents /Editorial Policy

7-4

Nissha Group
Sustainability

Environment

Third Party
Verification

Emissions Reduction Efforts

As a measure to reduce CO2 in the Nissha Group in Japan, NII Koka
Factory, a production base for our Industrial Materials business, isinto its second fiscal year of using 100% renewable electricity, andis also working on reducing its gas consumption, having updated
the old-style deodorizing equipment with a heat storage type as ofDecember 2023. NPT Himeji Factory and Kaga Factory, production bases for our Devices business, switched to 100% renewableelectricity for the factories in December 2023.
At overseas bases, since 2018, Nissha (Kunshan) Precision IMD
Mold Co., Ltd. (China), an Industrial Materials business unit production base, has continued to generate solar power, and Nissha
Metallizing Solutions N.V. (Belgium) replaced part of its electricity with wind power at its production bases. Nissha Metallizing
Solutions S.r.l. (Italy) introduced solar power generation in 2022
and a cogeneration system in 2023, and is generating electricity
through gas combustion and effectively using the waste heatgenerated to produce hot and cold water.
In addition, we are switching to LED lighting and upgrading aging
facilities with energy-efficient equipment to contain electricity
consumption.

7-5

Basic Unit Management of Energy
Consumed in Production

In addition to monitoring and managing energy consumption
per corporate unit as required by the Act on the Rational Use ofEnergy, the Groupʼs domestic production bases have been con-Nissha Sustainability Report 2024

SocialHuman
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

ducting basic unit management of energy consumed in production since the fiscal year ended March 2014, aiming to improvethe efficiency of energy use. The actual basic unit for each production base in the fiscal year ended December 2022 was set at
1.00, and the target for 2023 was set at 0.99 or less, based on
this. The results were as follows.
At NPTʼs Kaga Factory, initiatives to reduce the amount of electricity used through consolidating plants meant that it achieved
0.99 or less compared to its performance in the previous fiscal
year. The Nissha Global Headquarters failed to meet its target
due to an increase in electricity consumption, while the NPT
Himeji Factory and NPT Kaga Factory failed to meet their targets
due to a deterioration in basic unit energy consumption.

Company

Basic unit
(based on production volume etc.)
FY2022
results

FY2023
evaluation

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

9 of 15 categories, as shown in the table below. Our Scope 3 is expected to exceed 40% of the total of Scopes 1, 2, and 3. Categories
1, 4, 6, 7, and 11 were subjected to third party verification by DNVBusiness Assurance Japan K.K.
(unit：t-CO2)

FY2022
Scope 3 Category

FY2023Coverage

Coverage

Domestic

Overseas

Domestic

Overseas50,616

97,14438,891

Under
investigation

1

Purchased goods andservices

2

Capital goods

17,126

Under investigation

3

Fuel and energyrelated activities (notincluded in Scope 1, 2)

15,684

Under investigation

4

Upstreamtransportationand distribution ofpurchased products*2

4,272

10,341

4,368

Under
investigation

Upstreamtransportationand distribution of
shipments*3

7,398

19,296

6,561

Under
investigation

FY2023targetFY2023
results

Nissha(Headquarters)

1.00 0.99 or less

1.28

×

NII Koka Factory

1.00 0.99 or less

1.01

×

6

Business travel

579

ー

638

ー

NPT Himeji Factory

1.00 0.99 or less

1.88

×

7

Employee commuting

2,261

ー

2,038

ー

NPT Kaga Factory

1.00 0.99 or less

0.58

〇

11 Use of sold products

NCI

1.00 0.99 or less

1.41

×

5

Waste generated inoperations

End of life treatment of
12
sold products

4,462

Under investigation

7,739
535

10,370
4,091

417

Under
investigation*Figures in bold have been certified by a third party
Refer to 8. Third Party Verification

7-6

Initiative in Scope*13 Management

In the fiscal year ended December 2022, the ESG Task Force took
the lead in reaffirming the applicability of Scope 3 for each category.
In the fiscal year ended December 2023, the ESG Task Force grasped*1. Scope: Scope of greenhouse gas (GHG) calculation. The following three are shown.
Scope 1: Direct GHG emissions from sources owned or controlled by the company.
Scope 2: Indirect GHG emissions through consumption of electricity, steam, or heat.
Scope 3: Indirect emissions other than those in Scope 2.
*2. Emissions arising from the transport and delivery of raw materials purchased from major material
suppliers.
*3. Emissions arising from the transport and delivery of products manufactured by the Nissha Group.

7-3

Environment
Contents /Editorial Policy

7-7

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Coverage and Calculation Method of CO2 Emission
Calculation■ Scope 1, 2
• Nissha Co., Ltd.

• Nissha Medical Technologies SAS• Nissha Industries, Inc.

• Nissha Schuster Kunststofftechnik• Nissha Precision and Technologies, Inc. • Nissha Back Stickers

Coverage• Nissha Printing Communications, Inc.

• Nissha Back Stickers International• Nissha FIS, Inc.

• Nissha Metallizing Solutions N.V.

• Nissha Business Service, Inc.

• Nissha Metallizing Solutions S.r.l.

• Zonnebodo Pharmaceutical Co., Ltd.

• Nissha Metallizing Solutions Ltd.

• Nissha Eimo Technologies• Nissha Metallizing Solutions Produtos Metal-• Nissha PMX Technologies, S.A. de C.V.

izados Ltda

• Nissha Medical Technologies• Nissha Metallizing Solutions GmbH• Lead-Lok, Inc.

• Nissha (Kunshan) Precision IMD Mold Co., Ltd.

• CEA Global Dominicana, S.R.L.

• Guangzhou Nissha High Precision Plastics Co., Ltd.

• CEA Medical Manufacturing, Inc.

• Nissha Precision Technologies Malaysia Sdn. Bhd.

• Nissha Medical Technologies Ltd.

• Nissha SB Poland Sp. z o.o.

Calculated based on Ministry of the Environment "Greenhouse Gas Emissions Calculation
Report Manual (Ver.4.9)” (CO2 emission factors)
Calculation

CO2 emissions associated with the fuel use: Emission factor based on the Act on Promotion

methodof Global Warming Countermeasures
CO2 emissions associated with power purchase: Emission factor based on the market-based
method for domestic bases and the location-based method for overseas bases

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

■ Scope 3
Category1. CO2 emissions from major domestic material suppliers
Coverage

Major domestic / overseas suppliers at Nissha Group in Japan (39 companies)

Calculation

CO2 emissions per product or supplier electricity and fuel consumption x emission factor x

methodsales ratio

The verified 38,891t-CO2 emissions are from 39 key suppliers of Nissha Group in Japan, from whom
we purchase 74% of all our purchases.
Category4. CO2 emissions from distribution of upstream major domestic material suppliers
Coverage

Major domestic / overseas suppliers at Nissha Group in Japan (27 companies)

Calculation

Total CO2 emissions of suppliers calculated using either the ton-kilometer method, fuel con-methodsumption method, or fuel method

The verified 4,368t-CO2 emissions are from 27 key suppliers of Nissha Group in Japan, from whom
we purchase 59% of all our purchases. We will strive to further increase our coverage.
Category4. CO2 emissions from logistics of major upstream domestic suppliers
Coverage

Logistics suppliers (37 companies)
Domestic transportation: based on the Fuel Economy Law (Joint Guidelines for Calculating
CO2 Emissions in the Logistics Sector) Ver.3.1

Calculation

Overseas transportation: Sum up CO2 emissions from Global Logistics Emissions Council

method(GLEC) Framework Ver2.0**A framework created by the Smart Freight Centre, an international non-profit organization working to reducegreenhouse gas emissions associated with cargo transport.

The verified 6,561t-CO2 emissions are from 37 key logistics suppliers of Nissha Group in Japan, fromwhom we purchase 88% of all our purchases.

Nissha Sustainability Report 2024

7-4

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

Category 6, 7. CO2 emissions associated with business travel and employee commuting• Nissha Co., Ltd.
• Nissha Industries, Inc.
• Nissha Precision and Technologies, Inc.
• Nissha Printing Communications, Inc.
Coverage• Nissha F8, Inc.
• M crossing Co., Ltd.
• Nissha FIS, Inc.
• Nissha Business Service, Inc.
• Zonnebodo Pharmaceutical Co., Ltd. (commuting only)
Calculated based on;

Calculation
methodMinistry of the Environment/Ministry of Economy, Trade and Industry “Basic Guidelines for
Calculating Greenhouse Gas Emissions Through the Supply Chain（Ver.2.5)”
Ministry of the Environment "Calculation intensity database for calculating greenhouse gas
emissions of organizations through the supply chain（Ver.3.3)”

Category 11. CO2 emissions from use of sold products
Coverage
Calculation
methodGas sensors provided by Nissha FIS, Inc. (21 types)
Calculated by electricity consumption × product life × annual sales × emission factor

The verified 10,370t-CO2 emissions cover all the products produced (or products sold) by the Nissha Group. Among the Group's products, the gas sensor range, which are active devices, fall under
Category 11, while other products do not fall under this category. As a result, the gas sensor range
emissions are calculated and are subject to verification by a third party.
* Calculations of CO2 emissions are subject to inherent uncertainty due to, for example, incomplete scientific knowledge used to determine emission
factors and numerical data.

Nissha Sustainability Report 2024

7-5

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

8. Third Party Verification
The Nissha Group has received a verification statement fromDNV Business Assurance Japan K.K. on the accuracy of the CO2
emissions data contained in this report in order to improve thereliability of our environmental performance data.

Nissha Sustainability Report 2024

8

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

9. Waste Management
In the fiscal year ended December 2023, the Nissha Groupgenerated a total of 20,841t of waste, including waste sold forrecycling, waste reused as resources, and waste for simple incineration/landfill.

for simple incineration/landfill) was 1,528 t. Our recycling andresource reuse rate for the Nissha Group in Japan was 99.8%,
allowing us to successfully meet our target of zero emissions (arecycling and resource reuse rate of 99.5% or above). Nissha
Industries, Inc. (NII), Nissha Co., Ltd. Head Office, and Nissha
Business Service, Inc. (NBS) as well as our suppliers have beenworking together to form a system for creating value from transfer films, and started operation in July 2023.

At Nissha Group in Japan, we recognize that waste and waste converted into valuable resources have the following five main risks.

■ Total amount of waste generated and recycling■ Total amount of waste generated and recycling• Accidents and disasters caused by waste and waste converted
into valuable resources (including at treatment contractors)

and resource reuse rate (Nissha Group in Japan)

and resource reuse rate (Nissha Group overseas)

The total amount of waste generated by the Nissha Group in
Japan in the fiscal year ended December 2023 was 11,057t, adecrease of approximately 19% compared to the 13,606t in thefiscal year ended December 2022. At the Nissha Group in Japan,
hazardous waste (industrial waste requiring special treatment)
was 5,970t, while non-hazardous waste (industrial waste, waste

The total amount of waste generated by the Nissha Groupoverseas in the fiscal year ended December 2023 was 9,784t,
an decrease of approximately 28% over the 13,601t from thefiscal year ended December 2022. This was mainly due to an
decrease in waste material output at Nissha Metalizing Solutions(NMS), which produces sustainable materials (metallized paper)for the Industrial Materials business. The recycling and resource
reuse rate for major overseas Nissha Group production bases was
82.0%, an decrease of 4.6 points from 86.6% in the fiscal year
ended December 2022.

9-1

18,000Total Amount of Waste
Generated by Nissha Group

99.9%

99.8%

%
100

99.8%

95

15,00012,00011,697

90
9,380

9,000
6,000

85

7,470
5,743

80
4,203

3,560
75

3,000
0

25
FY2021
Waste sold for recycling

FY2022

FY202370

Risk Management Related toWaste and Waste Converted in
Valuable Resources• Environmental pollution and violation of laws caused by inappropriate waste treatment• Leakage of confidential information from waste and waste
converted into valuable resources• Refusal by waste disposal company to pick up waste• Revocation of waste disposal company licenses
To alleviate these risks, we are working on safety managementof waste in accordance with the Nissha Group Waste Management Regulations. In line with these regulations, each base has
drawn up its own Waste Management Manual and makes efforts
toward thorough waste separation and management. At the
Nissha Group production bases in Japan, emergency response
drills in the event of a leak are conducted once a year to prevent
environmental pollution from liquid waste from the perspectiveof preventing accidents and disasters. Furthermore, even small
quantities of chemicals and spray cans are thoroughly checked
for waste properties and monitored to prevent spillages duringtransport and accidents at treatment facilities.

Waste reused as resources

Waste for simple incineration / landfill

Nissha Sustainability Report 2024

27

22

9-2

Recycling and resource reuse rate

9-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

The Nissha Group Waste Management Regulations, which serve
as rules to prevent waste material related accidents and environmental contamination, employ standards for selecting outside contractors to process waste material. The regulations also
proscribe and implement standards for periodic processing site
inspections that make use of checklists. In addition, we have inplace standards for managing waste and waste converted into
valuable resources that contain confidential information, andpromote management in association with our information security management system (ISMS).
Furthermore, we are monitoring the progress of waste disposal bystrengthening the use of electronic manifests, and in preparation
for delays, we are building a structure that allows us to respondquickly, such as by strengthening communication with contractors that have suspended disposal and reviewing waste disposal
contractors.
In addition, at the Kyoto Global Headquarters, there is a need toaddress waste risks associated with business changes, such aschanges in the content of waste materials generated as researchand development by the business development division progress.
In particular, before handing over chemical waste, we strictly
manage the discharge of chemicals by preparing waste material
lists and thoroughly checking Safety Data Sheet (SDS), and wehave been in even closer communication with industrial waste
disposal contractors to ensure waste is disposed of safely.

Nissha Sustainability Report 2024

9-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

10. Management of Chemical Substances and Environmental Risks
10-1 Approach to Chemical Substances
Used in Products and Their Production Processes
The majority of the Nissha Group's products are incorporated
into products manufactured by our customers, and since thespecifications differ for each product, there is no equivalent ofa general-purpose product. In addition, many of the materials
used in our products are specified by customers. They correspond to “Material” of the 4M (Man, Machine, Material, Method),which are the four elements for proper quality control. As thisis a customer-approved matter, the chemical substances used(contained) in materials are also the customersʼ confidential information. For this reason, we cannot disclose the chemical substances used in our products together with the product name on,for example, our website. Such information is generally disclosed
by our customers through their own products, while we disclose
information on chemical substances used in our products by providing Safety Data Sheets *1 (SDS) and other information to ourcustomers.
*10-1 and 10-2 describe the state of management of chemical substances used in products
manufactured by our Industrial Materials business (excluding Metallized paper) and Devices
business mainly in Japan which are then shipped overseas, including to Europe.
*1. A document containing information on the properties and handling of the chemical concerned

10-2 Management of Chemical
Substances Used in Products
10-2-1 Establishment and Operation of the Nissha
Control Criteria for Chemical Substances in
Purchased Products
We use our Nissha Control Criteria for Chemical Substances in Purchased Products as our standards to control chemical substancesused in our products and their production processes.
These standards reflect the laws and regulations of relevant countries and regions, as well as standards for customers' use of chemical substances based on industry norms and standards such as
the GADSL (Global Automotive Declarable Substance List), which
is a list of environmentally hazardous substances common to theautomotive industry, and provide comprehensive management of
all chemical substances used in our products. Whenever new candidate substances for regulation are added, such as substances ofvery high concern under the REACH Regulation, or whenever the
relevant laws or regulations are amended, or our customersʼ chemical substances criteria change, we identify the differences from ourcriteria in order to adapt to these changes.
The Nissha Control Criteria for Chemical Substances in Purchased
Products are revised on an annual basis, taking these differences
into account, and explanatory meetings are held when major revisions are made to inform the relevant departments. The details of
the control criteria indicated in these standards are as follows.

Nissha Sustainability Report 2024

1. Usage-prohibited substance: Substances for which we prohibit
either deliberate or not deliberate use. Inclusion of impurities isalso prohibited.
2. Deliberate usage-prohibited substance: Substances for which we
prohibit deliberate use. There are restrictions on the inclusion of
impurities.
3. Regulated substance: Substance which requires a content reportfrom suppliers to Nissha.
The Nissha Group considers the entire life cycle of the products weprovide to our customers. In addition, in promoting the reductionof environmental impact and consideration for human health, we
intend to place importance on transactions with suppliers who workon products with low environmental impact, biodiversity, and consideration for the environment. In order to comply with laws andregulations concerning chemical substances, we have established amanagement promotion system and are working to investigate andcontrol chemical substances used in our products.

10-2-2 Management System
The points required to comply with the Nissha Control Criteria
for Chemical Substances in Purchased Products are listed below.
We are putting measures into place at each stage of the process,building a comprehensive countermeasures system.
• Warranty system based on cooperation with material suppliers
The following documents are submitted once a year by suppliers who provide us with materials for mass production.
‒ Certificates of conformity to the Nissha Control Criteria

10-1Environment
Contents /Editorial Policy

‒
‒
‒
‒
‒
‒

Nissha Group
Sustainability

Environment

Third Party
Verification

for Chemical Substances in Purchased Products
Reports on the inclusion of prohibited substances
Reports on the inclusion of chemical substances in productsContent information
Inductively Coupled Plasma (ICP) analysis data
Safety Data Sheet (SDS)
Written pledges• Countermeasures in the production process‒ Enforcement of rules when accepting materials‒ Distinguishing between storage locations and labeling of
input materials‒ Ensuring and maintaining traceability‒ Identifying and separating non-compliant substances• Provision of information accompanying sales to customers‒ Provision of information on chemical substances used in
products‒ Registration in International Material Data System (IMDS)
and the customerʼs management system‒ Issuance of SDS
To promote management of the chemical substances used in
our products, the environmental and safety management division at head office functions as the secretariat and works withthe product design and development, quality assurance, and procurement and sourcing divisions at each business unit to inspect
the state of management of chemical substances, including differences with the Nissha Control Criteria for Chemical Substances in Purchased Products. In addition to new products, whenselecting new materials or changing materials in the design anddevelopment stages, we conduct design reviews (DR) and assess
compliance with the Nissha Control Criteria for Chemical Substances in Purchased Products while considering the impact on

Nissha Sustainability Report 2024

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

human health and the environment. This system then ensuresstrict control of chemical substances, from the design stage tothe final product, responding to changes in the needs of society
and the demands of our customers for the use and managementof chemical substances.
We do not use any chemical substances that fall under the usage-prohibited substances category in our products. With regard
to the management of chemical substances used in our products, we have shifted to maintenance management by establishing and operating a management system, and we do not currently operate a reduction plan that involves the establishment of
Key Performance Indicators.
On the other hand, we are promoting compliance with the Nissha Control Criteria for Chemical Substances in Purchased Products by setting an environmental perspective at the design anddevelopment stage, which is one of our environmental targets.
In the fiscal year ended December 2022, there were no cases inwhich chemical substances used in our products were recalledfrom the market or reshipped with changing in materials.

10-2-3 Comprehensive Response to Chemical Substances of Concern■ Efforts to comply with the RoHS Directive
Nissha complies with environmental regulations in Europe mainly through the Nissha Control Criteria for Chemical Substances in
Purchased Products, our voluntary regulations on chemical substances. Our products comply with the RoHS Directive *, which
regulates the use of certain substances in electrical and electronic equipment.

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

*This refers to the European “Directive on the Restriction of the Use of Certain Hazardous
Substances in Electrical and Electronic Equipment (2011/65/EU)” and its amendments.
The Directive prohibits the inclusion in products of lead, mercury, cadmium, hexavalentchromium, PBB, PBDE, bis(2-ethylhexyl) phthalate, butyl benzyl phthalate, dibutyl
phthalate, and diisobutyl phthalate in excess of the maximum permissible amount, except
for exempted applications.

Nissha has been working on either not using or using fewer
hazardous chemical substances used in our products since thefirst edition of the Nissha Control Criteria for Environmentally
Controlled Substances was established in 2007, leading up to
the current Nissha Control Criteria for Chemical Substances in
Purchased Products. Substances regulated by the RoHS Directive(formerly Directive 2002/95/EC) have been subject to control
as environmentally controlled substances since the first edition
by complying with customer requests in accordance with thedirective. Although Annex III (exemption list) was amended by aEuropean Commission Decision (effective January 2013), noneof the relevant chemical substances are used in our products.
• Addition of specific phthalate esters to restricted substances
The European Commission Delegated Directive (EU)2015/863 (effective July 2019) amended Annex II (List of
Restricted Substances), designating specific phthalate esters *as a new restricted substance. As a result, the marketing ofelectrical and electronic equipment (EEE) containing specified
phthalate esters in the European Economic Area (EEA) has
been banned. To date, we have not used any of the relevant
chemical substances in our products.
*Bis (2-ethylhexyl) phthalate [DEHP], Benzyl butyl phthalate [BBP], Dibutyl phthalate [DBP],
Diisobutyl phthalate [DIBP]

10-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification■ Compliance with REACH Regulation
The REACH Regulation (EC 1907/2006) are a European law
on the registration, evaluation, authorization and restriction ofchemical substances. REACH came into force in 2007 with theaim of protecting human health and the environment.
We have a system in place to comply with the REACH Regulation
through the management of chemical substances used in our products.
Many of the products listed on our website fall under the category of “ articles ” as defined by the REACH Regulation. The
REACH Regulation requires the communication of information
within Europe when “articles” contain a Substance of Very High
Concern (SVHC) as specified by the supervisory authority (European Chemicals Agency: ECHA). The Nissha Control Criteria for
Chemical Substances in Purchased Products defines SVHCs as
substances prohibited for intentional use, and based on information and data obtained from our material suppliers, we haveconfirmed that we do not currently use SVHCs in our core products (molded products). This is also stated in the SDS and otherdocuments that we provide in response to customer requests.

Human
RightsNissha Sustainability Report 2024

Fair Operating Practices/ Local Communities

Content of the Nissha Control Criteria for Chemical Substances in
Purchased Products and List of Target Substances (partial excerpt)
Contests ofstandards

List of target substances• Asbestos fibres• Dioxins• Ozone depleting substances• Fluorinated greenhouse gases
Usage-prohibited • Bisphenol-A (with usage conditions)• Substances prohibited from being manufactured (Manufacsubstance*1
ture-prohibited substance)• Specific amine (with regulations on impurity content)• Azo-dyes which do not form specific amine (with regulations on impurity content concentration)• Arsenic and its compounds (with usage conditions)

Deliberate
usage-prohibited
substance*2• Substances subject to RoHS directive• REACH SVHC (Substances of Very High Concern)• Nickel and its compounds (with usage conditions)• Polychlorinated biphenyls (PCBs)• Specific phthalates• Specific benzotriazol• Dimethylfumarate (DMF)• Perfluorooctane sulfonates (PFOS)• Perfluorooctanoate (PFOA)• Natural rubber• Class 1 Specific Chemical Substances of Law Concerning
the Examination and Regulation of Manufacture, etc. of
Chemical Substances• TSCA PBT substances• TSCA preferred substances• POPs Convention residual organic pollutants

Regulated
substance*3• Global Automotive Declarable Substance List
• Conflict minerals• The Proposition 65• Children's Safe Product Act (RCW 70.240.030) The Reporting List of Chemicals of High Concern to Children (CHCC)■ Compliance with other regulations
As stated above, Nissha operates in compliance with the RoHS
and REACH directives, as well as a wide range of other regulations including TSCA (U.S. Toxic Substances Control Act), California Proposition 65 and GADSL. To comply with the U.S. TSCAPBT regulations, we are addressing the prohibition of the manufacture, processing, and commercial distribution of five typesof PBT substances (decaBDE, PIP (3:1), 2,4,6-TTBT, PCTP, and
HCBD) and parts and products containing such substances (theregulation on processing and commercial distribution of PIP (3:1)
is scheduled to come into effect on October 31, 2024).

Human
Resources*The above list shows examples of regulated substances that apply to purchased products(Nissha product raw materials, chemicals used in the production process for materials, etc.)*1. Use, either deliberately or not deliberately, is prohibited. Inclusion of impurities is also
prohibited.
*2. Deliberate use is prohibited. There are regulations on the inclusion of impurities.
*3. Substance which requires a content report from suppliers to Nissha

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

10-3 Chemical Substances Used in
Production Processes
10-3-1 Operation of the Nissha Control Criteria for
Chemical Substances in Purchased Products
In addition to the chemical substances used in our products, we
also regulate the chemical substances used in our production
processes in accordance with the Nissha Control Criteria for
Chemical Substances in Purchased Products. These include thesubstances prohibited for manufacturing under the Enforcement
Order of the Industrial Safety and Health Law and the Act on
Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment and Promotion of Improvements to
the Management Thereof (PRTR Act).
When Nissha Precision and Technologies, Inc. (NPT) uses chemical substances, we examine the substances based on prescribed
procedures and uses chemical substances in consideration of theenvironment, health and safety.

10-3-2 Reduction of Chemical Substances in Use
The Environmental Objectives for Nissha Group in Japan include
reducing usage rate of chemical substances at ISO14001-certified sites. In the fiscal year ended December 2023, the Nissha
Industries, Inc. (NII) Koka Factory worked to reduce the use of
PRTR organic solvents. Although it failed to achieve its basic unit
target, it managed to achieve the basic unit reduction for substances not covered by PRTR. The Nissha Precision and Technol-

10-3Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verificationogies, Inc. (NPT) Kaga Factory achieved its target of reducing theamount of chemicals used in its wastewater treatment facilities.
Fiscal year

FY2021

FY2022

FY2023

Assessment

○

△

×

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

personnel are familiar with these measures. Through an internal audit, we check the status of chemical substance management.

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

addition to production bases, the Kyoto Global Headquarters
also carried out emergency drills in collaboration with suppliers in its premises.

*GHS (Globally Harmonized System of Classification and Labelling of Chemicals): Provides
internationally-standardized rules to harmonize the contents of safety data sheets and〇 Satisfactory: Objective achieved△ Unsatisfactory: Objective not achieved but good progress made× Poor: Objective not achieved and poor progress made10-4 Management of Environmental
Pollutants
The Nissha Group in Japan constructed a system to understand and manage how environmental pollutants are used ateach business site. We use this system even for the calculationof emission and transfer amounts which the Act on Confirmation, etc. of Release Amounts of Specific Chemical Substancesin the Environment and Promotion of Improvements to theManagement Thereof (PRTR Act) requires reporting on.
In the fiscal year ended December 2023, there were transfers/
emissions of 1t or more for ethylbenzene, xylene, toluene,
ferric chloride, water-soluble copper salts (excluding complex
salts), and diethylene glycol monobutyl ether.
We take great care with management when handling chemical
substances, such as establishing our own voluntary standards.
In addition to displaying GHS * labels on containers to warn
people, we carry out measures to prevent environmental pollution such as installing spillover containers to ensure safety if
the main container develops a leak, and ensure that all related

Nissha Sustainability Report 2024

standards of classification per hazard for chemical products.

10-5 Response to Environmental Risks(Preventing Environmental Accidents or Pollution)
The Nissha Group in Japan realizes that pollution from chemical
substances is a serious environmental risk, and works to manage
it. To prevent environmental accidents from happening duringstorage or transportation of chemical substances within a work
site, we lay out management procedures that consider the scale
and frequency of accidents. In addition, we have set emergency
response procedures and carry out training on an ongoing basis
to minimize the influences in event of a leak, and revise and improve our methods as required.
• Examples of initiatives for preventing pollution
Equipment of emergency cutoff devices
Sites for deliveries of liquid chemicals via tanker truck or waste
liquid collection are equipped with emergency cutoff devices
to prevent any substances from leaking outside the site if an
accident occurs.

In the fiscal year ended December 2023, there were no serious
environmental accidents or violations of environmental regulations at the Nissha Group, and no penalties or fines were incurred.

• Leak response training
We have established response procedures to prevent pollution
from spreading in the event of a leak at a site for receiving
chemicals, unloading chemicals, or collecting waste liquid. In

10-4

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

10-6 Prevention of Water Pollution
We have set our own strict standards and regularly conduct voluntary surveys of wastewater quality to prevent water pollution.
The table on the right shows the results of measurement ofwastewater quality at our core production bases.
*1. Water Pollution Control Act*2. Law Concerning Special Measures for Conservation of the Environment of the Seto
Inland Sea

SocialHuman
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

GRI Standards Content
Index / ESG Data

Governance■ Nissha Precision and Technologies, Inc. (NPT) Himeji Factory

Items measured

Agreement
value*2

Regulatory
value*1

Voluntarystandard

Evaluation

3160

〇

6.5 〜

6.9

〇

6.8

〇

7.1

〇

〜8

7.5

〇

7.4

〇

7.2

〇

mg/l

3.7

〇

2.6

〇

1.1

〇

9

mg/l

4.4

〇

4.8

〇

2.9

〇

5

4.5

mg/l

2.6

〇

1.1

〇

0.9

〇

1

0.9

mg/l

<0.5

〇

<0.5

〇

<0.5

〇

pH

5.8 〜

5.8 〜

〜 8.6

〜 8.6

BOD

120

10

9

COD

120

10

150
Vegetable oil 30

Analysis
value

〇

5,000

substances

Evaluation

3,854

5,000

Mineral oil 5

Analysisvalue

Evaluation

FY2023〇5,200

n-hexane derived

Analysisvalue

FY2022

4,150

Discharged waterSS

FY2021Unit
3m

Phenol

5

0.1

0.08

mg/l

<0.005〇<0.005〇<0.005〇

Copper

3

0.5

0.4

mg/l

0.02

〇

0.01

〇

0.01

〇

Zinc

2

1.5

1.2

mg/l

<0.01

〇

<0.01

〇

<0.01

〇

Soluble iron

10

0.15

0.08

mg/l

0.03

〇

0.03

〇

0.01

〇

Soluble manganese

10

0.15

0.045

mg/l

0.04

〇

0.02

〇

0.02

〇

Chromium

2

0.02

0.02

mg/l

<0.02

〇

<0.02

〇

<0.02

〇

Nitrogen

60

10

9

mg/l

4.5

〇

4.3

〇

3.7

〇

Phosphorus

8

1

0.45

mg/l

0.03

〇

0.02

〇

0.03

〇

■ Nissha Precision and Technologies, Inc. (NPT) Kaga Factory
Items
measuredpH

Voluntarystandard

5.8 〜 8.6

6.2 〜 8.2

FY2021
Unit

Final effluent(Average)

FY2022

Final effluent(Maximum)

Final effluent(Average)

FY2023

Final effluent(Maximum)

Final effluent(Average)

Final effluent(Maximum)

7.4

〇

7.7

〇

7.6

〇

7.7

〇

7.5

〇

7.7

〇

27.0

〇

BOD

160 or less40 or less

mg/l

23.3

〇

35.0

〇

17.4

〇

24.0

〇

17.3

〇

COD

160 or less80 or less

mg/l

37.7

〇

44.0

〇

25.8

〇

36.0

〇

22.1

〇

29.0

〇

SS

200 or less20 or less

mg/l

6.0

〇

10.0

〇

7.7

〇

21.0

〇

5.7

〇

11.0

〇

30

15 or less

mg/l

0.5

〇

0.5

〇

0.5

〇

0.5

〇

0.5

〇

0.5

〇

n-hexane derived
substances

Nissha Sustainability Report 2024

Regulatory
value(Prefecture)

10-5Environment
Contents /Editorial Policy

10-7

Nissha Group
Sustainability

SocialThird Party
Verification

Environment

Human
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

List of PRTR-Designated Chemical Substances

In FY2023, the substances subject to notification under the PRTR Act in 2023 are as shown in the table below.

■ Nissha Industries, Inc. (NII) Koka Factory
PRTR
No.

Name ofchemical substance

Unit: kg

FY2021
Discharge
volume into theatmosphere

FY2022

Volume transferred
to industrial waste
processing companies

Reportingrequired /not required

Discharge
volume into theatmosphere

FY2023

Volume transferred
to industrial waste
processing companies

Reportingrequired /not required

Discharge
volume into theatmosphere

Average over the 3 years

Volume transferred
Reportingto industrial waste
required /processing companies not required

Discharge
volume into theatmosphere

Volume transferred
to industrial waste
processing companies

53

Ethylbenzene

2,273

928

〇

1,211

494

〇

894

364

〇

1,459

595

80

Xylene10,524〇

12,022

4,910

〇

6,262

2,557

〇

9,603

3,922
283

88

Hexavalent chromium compounds

0.1

4,298
850 *

〇

0.1

0

〇

0.1

0

〇

0

296

1,2,4-Trimethylbenzend

59

24

ー

1

0.3

ー

1

0.3

ー

20

8

300

Toluene106,873

43,652〇

57,72823,579〇30,868

10,289〇65,15625,840392

N-hexane

258

105

〇

0

0

〇

127

52

〇

128

52

*The increase in the transfer amount of Hexavalent chromium compounds in FY2021 is due to the disposal of unnecessary materials at the renewal of factory equipment.

■ Nissha Precision and Technologies, Inc. (NPT) Himeji Factory
PRTR
No.

Name ofchemical substance

Unit: kg

FY2021
Discharge
volume into theatmosphere

FY2022

Volume transferred
to industrial waste
processing companies

Reportingrequired /not required

Discharge
volume into theatmosphere

FY2023

Volume transferred
to industrial waste
processing companies

Reportingrequired /not required

Discharge
volume into theatmosphere

Average over the 3 years

Volume transferred
to industrial waste
processing companies

Reportingrequired /not required

Discharge
volume into theatmosphere

Volume transferred
to industrial waste
processing companies

71

Ferric chloride*1

0.0

0.0

ー

0.0

0.0

ー

ー

ー

ー

0.0

0.0

272

Water-soluble copper salts (excluding complex salt)

0.0

2,677.4〇

0.0

2,491.4〇

0.0

2,588.8〇

0.0

2,585.9

453

Molybdenum and its compounds

0.0

0.0

〇

0.0

0.0

〇

0.0

0.0

ー

0.0

0.0

627

Diethylene glycol monobutyl ether*2

ー

ー

ー

ー

ー

ー

0.0

13,568.0〇

0.0

4,522.7*1. Not subject to notification from FY2023. *2. Subject to notification from FY2023.

■ Nissha Precision and Technologies, Inc. (NPT) Kaga Factory
PRTR
No.

Name ofchemical substance

Unit: kg

FY2021
Discharge
volume into theatmosphere

FY2022

Volume transferred
to industrial waste
processing companies

Reportingrequired /not required

Discharge
volume into theatmosphere

FY2023

Volume transferred
to industrial waste
processing companies

Reportingrequired /not required

Discharge
volume into theatmosphere

Average over the 3 years

Volume transferred
to industrial waste
processing companies

Reportingrequired /not required

Discharge
volume into theatmosphere

Volume transferred
to industrial waste
processing companies

71

Ferric chloride*1

0.0

0.0

〇

0.0

0.0

〇

0.0

4,665.0ー

0.0

1,555.0

272

Water-soluble copper salts (excluding complex salt)

0.0

0.0

〇

0.0

0.0

〇

0.0

0.0

〇

0.0

0.0

627

Diethylene glycol monobutyl ether*2

ー

ー

ー

ー

ー

ー

0.0

14,405.0〇ーー*1. Not subject to notification from FY2023. In FY2023, unnecessary materials due to factory consolidation were disposed. *2. Subject to notification from FY2023.

Nissha Sustainability Report 2024

10-6

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

10-8 Prevention of Air Pollution
10-8-1 Soot and Dust and NOx Emissions
Several production bases of the Nissha Group in Japan own anduse gas boilers, which are subject to the Air Pollution Control Act,and emit soot and dust and NOx. The measured values and compliance status for the last three years are as follows.

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

■ Kyoto Headquarters
Unit

FY2021

FY2022

FY2023

Average over the 3years

Compliance

NOx

ppm

25

27

26

26

〇

Soot and dust

g/m³n

0.002

Less than 0.001

0.004

ー*

〇

Sulfur dioxide

ppm

n/a

n/a

n/a

n/a

n/a

Carbon monoxide

ppm

n/a

n/a

n/a

n/a

n/a

*Not calculated■ Nissha Industries, Inc. Koka Factory

10-8-2 VOC Emissions
The Nissha Industries, Inc. Koka Factory uses organic solvents
such as toluene and xylene in its production process. Volatile
Organic Compounds (VOCs) generated by the use of organic solvents are detoxified and discharged through direct combustion
deodorization, catalytic deodorization, and other measures.

Unit

FY2021

FY2022

FY2023

Average over the 3years

Compliance

NOx

ppm

32

29

43

35

〇

Soot and dust

g/m³nLess than 0.01

Less than 0.01

Less than 0.01

Less than 0.01〇

Sulfur dioxide

ppm

n/a

n/a

n/a

n/a

n/a

Carbon monoxide

ppm

n/a

n/a

n/a

n/a

n/a

■ Nissha Precision and Technologies, Inc. Himeji Factory
Unit

FY2021

FY2022

FY2023

Average over the 3years

Compliance

NOx

ppm

34

31

31

32

〇

Soot and dust

g/m³

Less than 0.001

Less than 0.001

Less than 0.001

Less than 0.001〇

Sulfur dioxide

ppm

n/a

n/a

n/a

n/a

n/a

Carbon monoxide

ppm

n/a

n/a

n/a

n/a

n/a

*The Air Pollution Control Act requires that soot and dust and NOx be measured and monitored in terms of soot concentration rather than the total amount.
*We use gas-fired boilers that do not emit SOx (sulfur oxides).

Nissha Sustainability Report 2024

10-7

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

11. Water Resources11-1 Basic Concept11-2 Target and Progress

The Nissha Group's Environmental Policy is to aim for businessdevelopment and the realization of a sustainable society throughenvironmentally conscious corporate activities. In addition, theEnvironment Principles declare that we shall aim to construct a
recycling society and that we shall value biodiversity and prevent
pollution while co-existing with nature, thereby indicating ourstance towards the Nissha Group's business activities. We areworking to reduce water consumption through appropriate use,water recycling (reuse), and more efficient water use.

The Nissha Group in Japan has set the following target for water
use and conduct annual evaluations.

Approximately 95% of both water intake and wastewater discharge within the Nissha Group comes from activities at ourdomestic production bases. The majority of this intake and discharge occurs at the Nitec Precision and Technologies, Inc. (NPT)
Himeji and Kaga Factories, which are the production bases forthe Devices business.
The production process for film touch sensors, the core productof the Devices business, requires good quality water to maintainproduct quality. In addition, we have established and are operating the Nissha Control Criteria for Chemical Substances in Purchased Products for the management of chemical substancesused in production processes, which reflect relevant laws, regulations and customer standards, and we have established strict voluntary standards and conduct regular voluntary measurements
to thoroughly control wastewater quality.

Refer to 12. Environmental Objectives and Status of Achievement (Nissha Group in Japan)*The "Physical Risk (Quantity)," "Physical Risk (Quality)," and "Reputation Risk" items arescored, and the risk level is evaluated on a 5-point scale: Low (0-1), Low-Medium (1-2),
Medium-High (2-3), High (3-4), and Extremely-High (4-5).

TargetReduce use of water by improving production efficiency andsaving water〇 Satisfactory: Objective achieved

FY2021

FY2022

FY2023〇〇〇

11-4 Management of Water Intake
and Wastewater△ Unsatisfactory: Objective not achieved but good

progress made × Poor: Objective not achieved and poor progress madeThe NPT Kaga Factory continued to reduce water usage throughfactory consolidation, and the NPT Himeji Factory implemented
water-saving activities, resulting in a reduction in water usage atboth factories. We will continue to reduce water consumption
and save water for miscellaneous use by improving production
efficiency at our factories.

11-3 Understanding Water Stress Areas
We use Aqueduct*, a global tool for water risk assessment developed by the World Resources Institute (WRI), to assess water risk
at our production bases.
In 2023, the “Overall Water Risk” at domestic production bases
was Low (0-1) or Low - Medium (1-2). The NPT Himeji and Kaga

Nissha Sustainability Report 2024

Factories, both of which have relatively high levels of water consumption in the Nissha Group, fall into the Low-Medium (1-2)
risk category. In terms of water intake and use, we do not have asignificant impact on local water resources, but we will continue
to work to reduce our impact on the environment by setting targets to reduce water use and devising an infrastructure.

All of the Nissha Group production bases in Japan use water supplied by a third-party (tap water and industrial water). In the fiscal
year ended December 2023, there were no violations regarding
water intake or drainage.

■ NPT Himeji Factory
The NPT Himeji Factory uses industrial water (for use in production) and tap water (for general use) supplied by Hyogo Prefecture. Wastewater is discharged to the Seto Inland Sea via anearby river after being treated at the factory. The area where
the factory is located is subject to the Law concerning Special
Measures for Conservation of the Environment of the Seto Inland Sea, which is stricter than the Water Pollution Prevention
Act. To comply with the law, the factory operates a wastewater
treatment facility using activated carbon adsorption. In addition,
we operate and manage water quality by establishing voluntary

11-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governancestandard values for water quality control that are stricter thanthose set by laws and regulations.

11-6 Water Data

■ NPT Kaga Factory

The amount of water usage and water discharge by the Nissha Group are shown in the table below.

The NPT Kaga Factory uses tap water supplied by Ishikawa Prefecture. Wastewater is purified to a level that meets effluent
standards at the factory's wastewater treatment facility before
being discharged into the Sea of Japan via a nearby river. As at
the Himeji Factory, we operate and manage water quality by establishing voluntary standard values for water quality control thatare stricter than those set by laws and regulations.

Water usage

Items

Unit

Boundary

Tap waterm3

Production bases in Japan and overseas

1,291

1,287

1,249

993

912

Underground waterm3

Production bases in Japan and overseas

103

40

46

49

42

Industrial waterm3

Production bases in Japan and overseas

1,943

1,725

1,670

1,549

1,282

m3

Production bases in Japan and overseas

3,305

3,033

2,594

2,342

2,002

Water discharge

FY2019FY2020

FY2021GRI Standards Content
Index / ESG Data

FY2022

FY2023

11-5 Initiatives for Appropriate
Water Use
■ NPT Kaga Factory• During the production process, products are washed using
purified water to ensure that no impurities remain on the
products. While a single rinse tank requires a large amount ofwater, increasing the number of rinse tanks by making them
multi-level can reduce the amount of purified water usage.
This method is known as multistage countercurrent washingor cascade rinsing. The Kaga Factory uses this method to wash
products with a small amount of water by removing impurities
in stages which results in significant water savings.
• The filter cloth in the sludge dewatering press (filter machine)
is washed periodically to prevent clogging. When washing thecloth, we reuse purified wastewater from the factory as cleaning water to reduce water consumption.

Nissha Sustainability Report 2024

11-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

12. Environmental Objectives and Status of Achievement (Nissha Group in Japan)
The Nissha Group in Japan has set the Nissha Group Environmental Objectives for a period of six
years from the fiscal year ended December 2018 for those bases that have obtained ISO14001
certification. In accordance with these Objectives, each base and division establish environmental
targets, and we aggregate and assess the results each fiscal year in order to manage progress.

12-1 Initiatives and Achievements in FY2023
1. Prevention of pollution
TargetFY2021

FY2022

FY2023

Environmental Objectives(1) Maintain zero environmental accident*1

×

×

〇

Period: FY2018 - FY2023(2) For environmental risks classified as significant environmental aspects on the hazard assessment list*2, implement measures and reduce the possibility of occurrence
by one level by December 31, 2023

〇

〇

〇

Scope: Nissha Group in Japan ISO14001 certification sites (“certification sites”)

Assessment Definitions〇 Satisfactory: Objective achieved△ Unsatisfactory: Objective not achieved but good progress made× Poor: Objective not achieved and poor progress made*Company names and abbreviations
NII: Nissha Industries, Inc.
NPT: Nissha Precision and Technologies, Inc.

*1. Accidents that affect areas outside the factory*2. A list to determine risk level based on identifying environmental risks and evaluating them based on two axes: likelihood of occurrence andseverity when they occur.

(1) There were zero accidents related to the environment in fiscal year ended December 2023.
(2) As one of our efforts to reduce environmental risks, we conducted a chemical leakage response
drill. As a result, the factory's environmental risk “potential” (the value in the environmental risk
assessment) has been reduced by more than one level.

FIS: Nissha FIS, Inc.
NCI: Nissha Printing Communications, Inc.
NBS: Nissha Business Service, Inc.

2. Mitigation of climate change
Target*1(1) Reduce CO2 emissions rate (basic unit) by 6% or moreby the fiscal year ending December 2023

*2(2) Reduce CO2 emissions rate (basic unit) by 1% or morecompared to the previous year

FY2021

FY2022

FY2023

〇

〇

〇

×

×

×

*1. CO2 emissions rate (basic unit) = CO2 emissions / Production volume (depend on the sites)*2. Reference value: Results in fiscal year ended December 2017

Nissha Sustainability Report 2024

12-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources(1) We managed a drop of more than 6% of the basic unit target to be achieved by the fiscal year
ended December 2023, showing we were on the planned track. In addition to various energy-saving initiatives, we are converting to renewable energy and the NII Koka Factory obtain
100% of their electricity from renewable energy sources. In addition, as of December 2023, theelectricity used at the NPT Himeji and Kaga Factories changed to 100% renewable electricity.
(2) In order to reduce the CO2 emission rate (basic unit) by at least 1% over the previous fiscal year,
we set targets for each factory and reduced energy input in conjunction with quality improvements. One out of the six locations (NPT Kaga Factory) achieved at least a 1% reduction compared to the previous fiscal year. However, five locations (Global Headquarters, NII Koka Factory,
NPT Himeji Factory, NPT Kyoto, NCI) did not achieve the target.

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

(2) For the fiscal year ended December 2023, one out of the six locations (Global Headquarters)
achieved at least a 1% reduction compared to the previous fiscal year. However, five locations (NII
Koka Factory, NPT Himeji Factory, NPT Kaga Factory, NPT Kyoto, NCI) did not achieve the target.
(3) The Nissha Group in Japan as a whole achieved a recycling rate of 99.7%, and has maintained
zero emission of waste (a recycling and resource reuse rate of 99.5% or more) as in the previous
fiscal year.
(4) The Nissha Head Office, the NII Koka Factory, and NBS worked together to create a scheme thatwould allow film, which had been processed as waste plastic, to be made valuable. This initiative
allowed a reduction in waste processing costs. At NII, we are working to reduce the environmental impact from waste, adopting a recycling method that involves cleaning cloths that had solvents on them.

3. Reduction of waste
TargetFY2021

FY2022

FY2023(1) Reduce waste generation rate (basic unit) *1 by 6% or
more*2 by the fiscal year ending December 2023

×

×

×

(2) Reduce waste generation rate (basic unit) by 1% or morecompared to the previous year

×

×

×

(3) Maintain zero emissions (recycling and resource reuserate of 99.5% or more)

〇

〇

〇

(4) Reduce cost of waste treatment

△

×

〇

*1. Waste generation rate (basic unit) = Waste generation / Production volume (depend on the sites)

4. Reduction of water usage
TargetReduce use of water by improving production efficiency andsaving water (Certification sites set individual targets)

FY2021

FY2022

FY2023〇〇〇At the NPT Kaga Factory, we have continued to work on reducing water usage through factory consolidation, and have been able to reduce water usage by more than 1%. In addition, at the NPT Himeji
Factory, we have been able to reduce water usage through water-saving initiatives. We will continue toreduce water consumption and save water for miscellaneous use by improving production efficiency at
our factories.

*2. Reference value: Results in fiscal year ended December 2017

(1) Each factory is working to improve its yield rate and efficiency through quality improvement activities and reducing the amount of wasted materials by improving production efficiency. For the
fiscal year ended December 2023, four out of the six locations (NPT Himeji Factory, NPT Kaga
Factory, NPT Kyoto, NCI) did not achieve the target, and the company-wide evaluation was set to" × ". The main reason for NPT's failure to meet its intensity target is the decrease in production
volume.

Nissha Sustainability Report 2024

5. Reduction of chemical substances usage
TargetCertification sites reduce usage rate of chemical substances(Certification sites set individual target values and target
chemical substances)

FY2021

FY2022

FY2023

〇

△

×

12-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

GRI Standards Content
Index / ESG Data

GovernanceAt the NPT Kaga Factory, we achieved the reduction of chemical substances usage with the amountof drainage water treatment agent through consolidating factories.

7. Enhancement of environmental performance in supply chain

The NII Koka Factory did not achieve the target of a 1% reduction from the previous year due to thedecrease in production volume, although we continued to reduce the use of PRTR-designated substances and organic solvents which do not contain designated substances.

Target

6. Environment-conscious design
TargetFY2021

FY2022

FY2023(1) Introduce the viewpoint of energy saving, resource saving,durability, recycling, and so on in product design anddevelopment.

〇

〇

〇

(2) Design environment-conscious processes and reduce theenvironmental impact of production.

〇

〇

〇

(1) As a positive risk assessment (a positive environmental aspect), the design and development
divisions of the Industrial Materials and the Devices businesses set development themes fromthe perspective of solving social issues such as SDGs and ESG, and incorporate the reduction ofenvironmental impact at the product design stage. In addition, they are moving ahead with thedevelopment and mass production of products that contribute to reducing environmental impact, such as the use of sustainable materials. FIS also designs and develops parts that contributeto environmentally-friendly customer products, such as hydrogen detectors and coolant sensors
used in fuel cell vehicles.
(2) NII and NPT are complying with established company standards regarding the management ofchemical products, and also designing production processes that promote reduced environmental impact.

Enhance environmental performance based on customer
requirements and the RBA code of conduct (only applicablesites)FY2021

FY2022

FY2023〇〇〇

In consideration of feedback we received in customer-driven supplier auditing, we are continuing ourenvironmental improvement efforts. With the help of our suppliers, we respond to questionnaires
and conduct on-site inspections which reflected our customersʼ demands in relation to the environment. In addition, we examine CO2 emissions during production processes and check chemical materials used in products. Through these activities, we are grasping the environmental impacts in our
supply chain in order to contribute to environmental improvement.

12-2 Environmental Objectives from 2024 to 2029
The Nissha Group in Japan has set the Nissha Group Environmental Objectives to cover the six years
between the fiscal year ending December 2024 and the fiscal year ending December 2029. In accordance with these Objectives, each base and division establish environmental targets, and we continue to aggregate and assess the results each fiscal year in order to manage their progress.
In addition, we shall revise the Nissha Group Environmental Objectives appropriately in line with themedium-term management plan (every three years) or if there are any major changes in businessactivities, etc.

1. Complying with laws and regulations/customer requirements(1) Violations of regulatory values in environmental laws, regulations and local ordinances: 0(2) Serious warnings related to the environment noted during audits of customer requirements: 0(3) Violations of compliance with customer requirements for chemical substances in products: 0

Nissha Sustainability Report 2024

12-3

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

2. Responses to climate change(1) Reduce CO2 emissions by 27% by FY2029 (Baseline: FY2020 actual value)(2) Reduce CO2 emissions rate (basic unit) by at least 1% compared to the previous fiscal year (Sites
subject to the Act on the Rational Use of Energy)

3. Reducing environmental impact of the overall supply chain(1) Engage in zero-emission (at least 99.5% recycling rate) maintenance and management(2) Reduce waste generation rate (basic unit) by 1% or more compared to the previous fiscal year.
(3) Work to reduce the amount of chemical substances usage(4) Work to reduce the amount of water usage(5) Incorporate perspectives such as saving energy, saving resources, durability, resource circulation,
recycling, and environmental impact reduction in the product design, development, and process
design stages

4. Prevention of pollution for the conservation of biodiversity(1) In order to prevent environmental risks from pollution, implement risk reduction measures forenvironmental risks that fall under the category of significant environmental aspects in the hazard assessment list*, and gradually lower the hazard assessment by FY 2029.
(2) Maintain zero environmental accident* A list to determine risk level based on identifying environmental risks and evaluating them based on two axes: likelihood of occurrence andseverity when they occur

Nissha Sustainability Report 2024

12-4

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

13. Human Rights
This policy has been translated into Japanese, English, Chinese, Korean, Malay, Spanish and German,
and widely distributed to all Nissha Group employees. In addition, we ask all our suppliers to understand our policy and work with us on initiatives directed at labor and human rights.

13-1 Basic Policy
We at Nissha Group have in place a basic policy on labor and human rights. In formulating the policy, the10 principles of the United Nations Global Compact, which we joined in April 2012, and the Responsible
Business Alliance (RBA) code of conduct were used as reference. The RBA code of conduct is a global codeof conduct for the IT devices and mobility industries, which Nissha sees as the priority markets. It referencesinternational norms and standards including the International Bill of Human Rights and the ILO Declaration
on Fundamental Principles and Rights at Work.

Basic Policy on Labor and Human Rights
Nissha Group will observe the international norms, laws and ordinances related to human rights and labor
standards and will make efforts to continually improve human rights and labor standards.
1. Child labor: We will prohibit child labor and also implement relief measures.
2. Forced labor: We will eliminate all forms of forced labor, including bonded labor.
3. Health and safety: We will secure the health and safety of our employees and provide a hygienic workplace environment.
4. Freedom of association and the right to collective bargaining: We will guarantee the right to organize
and the right to collective bargaining.
5. Discrimination: We will not discriminate based on a personʼs age, disability, ethnic group, gender, marital status, nationality, political support, race, religion, sexual orientation, pregnancy or membership in aunion. We will also not be party to this.
6. Punishment: We will not perform physical punishment or mental or physical coercion and we will not
engage in verbal abuse.
7. Working hours: We will observe the laws, ordinances and labor agreements related to working hours,
rest breaks and holidays.
8. Remuneration: We will observe the laws and ordinances related to the payment of appropriate wages.

13-2 Structure
The Nissha Group recognizes that human resources are the driving force for improving corporate
value, and has identified “respect for human rights” as one of our materiality. A task force has been
established under the Sustainability Committee to deal with the themes of "enhancing human capital and respect for human rights" and is working to address respect for human rights at the Group's
suppliers. For other important human rights risks, a Labor and Human Rights Subcommittee has
been established under the Risk Management and Compliance Committee, which is working to reduce these risks throughout the Group.

Board of Directors

Sustainability Committee

ESG Task Force(Enhancing Human Capital,
Respect for Human Rights)

Risk Management and Compliance Committee

Labor and Human Rights Subcommittee

Junya Suzuki
Chairman of the Board, President and CEO
Nissha Co., Ltd.
Established on June 1, 2018

Nissha Sustainability Report 2024

13-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

13-3 Initiatives Related to Laborand Human Rights
Our initiatives related to labor and human rights can be broadlyclassified into initiatives by the ESG Task Force (enhancing humancapital and respect for human rights) to address material issues
throughout the Group and initiatives by the Labor and Human
Rights Subcommittee to address risks related to compliance withinternational norms and laws in the area of labor and humanrights that apply to the Group.
The ESG Task Force has as its strategy “reduction of labor and human rights risks” for the “respect for human rights” materiality. In
the fiscal year ended December 2021, we used a questionnairetargeted at all group companies to confirm that there were nocases of child labor or forced labor. In the fiscal years ended December 2022 and 2023, we worked to achieve zero child laborand forced labor at the Groupʼs primary suppliers.

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

laws and regulations and the RBAʼs code of conduct, etc. Specifically, in addition to checking whether the salaries paid irrespectiveof employment categories such as full-time, contract, or temporary
employees, etc. meet the minimum wages set by the prefectural
governments, and whether working hours and overtime are correctly reflected in wages in compliance with laws and regulations
and the RBA, we also check whether items which have been pointed out and corrected in previous audits continue to be compliedwith and so on. Internal audit findings are reported through the report line, and the Labor and Human Rights Subcommittee provides
support to production bases, as necessary, so that corrective action
can be taken. The results of the internal audit conducted during
the fiscal year ended December 2023 were favorable with no major findings.

Initiatives for Foreign Technical Interns

Refer to 21-4 CSR Audit and Labor and Human Rights Risk Survey
In the fiscal year ended December 2023, we highlighted childlabor, forced labor and discrimination, carrying out compliancetraining aimed at all Group companies both in Japan and overseas.
In Japan, 2,911 people were targeted for this training, and we
confirmed that 100% of these people took said training.
The Labor and Human Rights Subcommittee operates a management system, and its key performance indicators/action items
include items related to materiality issues, risk assessments conducted at the Company-wide level, and risk assessments specificto affiliated companies.
Furthermore, we conduct internal audits once a year at major
Nissha Group production bases in Japan to check compliance with

Nissha Sustainability Report 2024

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Dataof the interns and establishing a worker-friendly environment. For example, when employees first join the company, they are given opportunities to experience Japaneseculture and we organize recreational activities so they canlearn about local culture.
Furthermore, we are preparing and providing signs showing evacuation routes and the location of the medical
office, notices about harassment and other consultation
desks, pay slips, and training materials, etc. in both Japanese and Vietnamese so that both all employees andtechnical interns can understand them easily. In terms ofcommunication, senior trainees and employees work withinterpreters to provide detailed explanations and to create
an environment where trainees can always ask for help ifthey have any questions.
Fifteen technical interns completed their training in thefiscal year ended December 2023 and returned to theirhome countries. We hope that many young people will
acquire skills and grow as world-class human resources
while experiencing different cultures, and we will continue
to support them in this endeavor.

Workplaces in Nissha Group that accept technical interns
from Vietnam make creative efforts in information sharing
and communication toward protecting the human rights

13-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

13-4 Harassment Prevention

13-5 Relationship with Labor Union

We at the Nissha Group establish a set of Harassment Prevention
Regulations, which prescribe measures to prevent various formsof harassment in the workplace, with the aim of realizing soundworkplace environments in which all employees can live up to
their full potential. As a structure for promoting harassment prevention, we designate chief promoters of harassment prevention
at each base and we have established an external hotline consultation service (Refer to 28-6 Hotline Consultation Service).
The contact information is provided through the Nissha Group
intranet and e-learning, and we are working to ensure that employees understand that the system is set up so they can discuss
issues with confidence by assuring them that their privacy will
be fully respected and that they will not be treated unfairly or bedisadvantaged for making use of these services. In the fiscal year
ended December 2023, there was one case related to harassment filed at hotline consultation service, but it has already beenhandled.

Our Basic Policy on Labor and Human Rights contains the provision, “Freedom of association and the right to collective bargaining.” In Japan, the labor contract concluded between company
and labor union confirms, “the Company and the Union shall respect each otherʼs position and maintain a peaceful relationshipbetween labor and management as well as strive for the maintenance and improvement of labor conditions and the growth of
the Company.” In the fiscal year ended December 2023, there
were no significant violations of freedom of association.

We also provide annual e-Learning training to all employees toprevent harassment, in addition to providing training for chief
promoters of harassment prevention to solve problems and prevent harassment, and discuss and implement measures for further improvement.

We have the Nissha Crew Alliance as the only labor union in the
Nissha Group in Japan. This is based around employees in thethree companies of Nissha Co., Ltd. plus the domestic Group
companies Nissha Industries, Inc., and Nissha Printing Communications, Inc. As of April 2023, employees at Nissha Precision
and Technologies, Inc. are also eligible to join. (Total union membership as of January 2024 was 1,253 members.) The vision of
the Nissha Crew Alliance is “ realizing new happiness ” through“new ways of working (workplace sphere) ”, “new lifestyles (social
sphere)”, and “new union activities (individual sphere)”. It aims to
support all employees of the Nissha Group in Japan. The Nissha
Crew Alliance engages in regular negotiations and discussions
based on this concept to build stable labor-management relations
while resolving common issues in the Nissha Group in Japan.
The Management Council, whose members are mainly directors
and corporate officers of Nissha Co., Ltd., holds regular meetings
with the Nissha Crew Alliance. In addition to negotiating anddiscussing employee working conditions, the Council shares information on the management of the Nissha Group. During the
fiscal year ended December 2023, the Management Council met

Nissha Sustainability Report 2024

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

eight times, including regular bi-monthly meetings and ad-hoc
meetings. In addition, the labor and management offices strive
to prevent labor problems by sharing employeesʼ opinions on theworking environment and the working hours situation once amonth. Furthermore, when changing important labor conditionsof the Nissha Group in Japan, the company engages in communication with the union in addition to regular consultations, with theaim of reaching an agreement satisfactory to both parties. In thefiscal year ended December 2023, an agreement was reached ona severance pay system based on the new human resources system. Previously, severance pay systems varied by companies, but
now they have been unified and as of January 2024, a new joint
severance pay system has been adopted at all major companies
in the Nissha Group in Japan. In addition, opinions were voiced on
both sides regarding improving the existing systems and formulating new measures, so we have been working together on theissue. With prices continuing to rise and growing pressure for wage
increases, labor and management reached an agreement on increasing starting salary for new graduates and raising overall salarylevels in January 2024, following on from 2023.
Nissha Industries, Inc. and Nissha Printing Communications, Inc.
have also established labor management liaison meetings at thecompany and office level to provide forums for labor and management to exchange opinions. Moreover, Nissha Precision andTechnologies, Inc. has established the Workplace Improvement
Committee, with members from both labor and management, towork on promoting improvements in the workplace environment
and in welfare benefits.
In fiscal year ended December 2023, the Nissha Group in Japan
had no report either of a strike or lockout. We will continue to respect the mutual positions of both company and union, and build
a sound relationship between labor and management.

13-3

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

14. Human Resources Policy and System
14-1 Policy

14-2 Human Resources System (Scope: Nissha Group in Japan)

The Human Resources Policy upon which the Nissha Group base our human resources strategy istaken directly from our Mission, which reflects growth both for the company and employees throughdiverse capabilities and passion. The Nissha Group continues to grow by seeing changes in the market
environment as business opportunities and by improving our value proposition to customers, driven
by the diversification of our human resource capabilities and core technologies. Since growth throughsuch change is at the core of our management strategy, our Human Resources Policy states clearly thatmanagement strategy and human resource strategy should be in lock-step.

Based on the idea that company growth leads to employee growth, and employee growth tocompany growth, the Group operates a human resources system focused on roles and abilities.

Human Resources Policy
Nissha Group aims for growth both for the company and employees through diverse capabilities
and passion, seeing changes in the business environment as opportunities for growth.
1. We shall develop employees who embody Nissha Philosophy and contribute to society
through our business activities.
2. We shall respect diversity of employees and utilize their individuality and strengths.
3. We shall emphasize global teamwork to achieve results.

In this system, the required skills are clearly stated, and employees demonstrating the skills requiredby the company will be given a fair chance to be promoted, regardless of age or length of service. In
the human resources system for general employees, we not only take extra care of those employees
who have key posts, but use a multiple-track personnel promotion system based on expectedroles. The actions expected of the managers who direct these employees have been clarified as
managerial competencies consisting of the ability to change (leadership) and the ability to execute(management). In addition, we expanded the treatment for people with advanced specialist skills
previously offered to only select managerial staff, and as of the fiscal year ending December 2024,
started a new allowances payment for employees, regardless of whether they are managerial staff
or ordinary employees, who contribute to their company or business using advanced specialist skills.
Each employee carries out their duties with an awareness of the abilities required based on
their position, and receives feedback from their supervisor on the gaps with the abilities actuallydemonstrated in the semi-annual performance review. This encourages the growth of each
employee, which in turn leads to further growth for the company.

4. We shall encourage proactive actions and unconventional innovation.
5. We shall provide rich training programs and challenging growth opportunities.
6. We shall create a workplace full of energy where employees feel safe to work.
Junya Suzuki
Chairman of the Board
President and CEO
Nissha Co., Ltd.
Established on January 1, 2021 Revised on May 1, 2022

Nissha Sustainability Report 2024

14-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

① Diversity

14-3 ESG Task Force Initiatives
The Nissha Group has set “enhancing human capital” and “respect for human rights”, as social (S)material issues to realize our Sustainability Vision. In order to accelerate our efforts in these areas,
we have established task forces under the Sustainability Committee to address three themes, (1)diversity, (2) human resources development, and (3) labor and human rights. For each theme, wehave set key performance indicators on a global basis for where we see ourselves in 2030 (Long-term
Vision or Sustainability Vision) and where we want to be in three years (Medium-term Vision), andbackcasting from these, we set annual activities targets and work to carry them out.
Key Performance Indicators andAction Items for 2026

Fair Operating Practices/ Local Communities

Governance

Key Performance Indicators andAction Items for 2030

1. Diversity

Female manager ratio
Global consolidated: 23%
Nissha non-consolidated: 12%

Female manager ratio
Global consolidated: 25%
Nissha non-consolidated: 17%

2. Human
resourcesdevelopment

Selection rate of leadership candidates
Nissha non-consolidated: 45%

Selection rate of leadership candidates
Nissha non-consolidated: 50%

3. Labor andhuman rights

0 incidents of child labor or forced laborat primary suppliers in regions with highrisks of labor and human rights (Central
and South America, Southeast Asia andGreater China).

Identify audit targets based on annual
purchasing results and continue toperform audits
Zero child labor and forced labor

Although the definition of managerial staff varies between countries, we have adopted a new
standardized definition of managerial staff on a global basis, and we monitor the situation regularly.
At the end of the fiscal year ended December 2023, the ratio of male to female employees in theGroup was approximately 6 (male) to 4 (female), but the ratio of male to female managerial staff
was approximately 8 (male) to 2 (female), which indicates a discrepancy. In order to get the ratioof female managerial staff, a key performance indicator, closer to the ratio of female employees
by 2030, we are working on a project to promote the advancement of women with a special focus
on Japan, where the disparity between men and women in management positions in particular is
considerable.

② Human resources development
As indicated in our Human Resources Policy, the Group is aiming to maximize employee capabilities
and achieve sustainable corporate growth by providing full training programs and challenging
growth opportunities. In particular, in order to increase our pool of management and strategic
personnel who will lead the management of the entire company and its businesses, we have set,
as a key performance indicator, the attendance rate of employees at the Nissha Academy Business
School (beginner and intermediate levels) as the "selection rate of leadership candidates”. We haveset a goal of increasing the selection rate of leadership candidates to 50% (Nissha non-consolidated
basis) by 2030, and are working on systematic training.

③ Labor and human rights
We are working to "understand and reduce human rights risks" at Nissha Group domestic andoverseas bases and their primary suppliers. In the fiscal year ended December 2023, we conducteda CSR survey of 131 of our primary suppliers in regions* with high labor and human rights risks, andconfirmed that there was no use of child labor or forced labor.
Refer to 13-3 Initiatives Related to Labor and Human Rights* Areas identified by the ILO (International Labour Organization) as having high labor and human rights risks: Central and South America,
Southeast Asia and Greater China

Nissha Sustainability Report 2024

14-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

14-4 Talent Management System
We have introduced a talent management system to grasp
the abilities of each employee and make the most of theirindividuality and strengths. The talent management system
records employee backgrounds, evaluations, and results ofengagement surveys and self-assessment. This data is then used
to develop and implement various measures.
This has become a useful tool for management. For example,
by using the same system as for implementing personnel
evaluations, we can not only grasp the status of progress in realtime but the past personnel evaluations for those who havebeen transferred can be referenced by their superiors at their
new place of work. From the fiscal year ended December 2023,
we have been implementing employee skill surveys by registering
the abilities, experiences, and knowledge of each employee,
and moving ahead with collecting and making visible suchinformation. We will continue these sorts of initiatives to moveahead with data-based talent management in the future.

14-5 Fair Evaluation and Treatment(Scope: Nissha Group in Japan)

Human
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

done. In addition to these two, some general employees working
on production lines or in routine work are evaluated based on
the held skills evaluations, which assess whether they have thenecessary skills and knowledge for their job.
Bonuses and salary increases for general employees are basedon all three of performance evaluations, demonstrated skills
evaluations, and held skills evaluations, while promotions
are based on demonstrated skills evaluations and held skills
evaluations. Bonuses and salary increases for managerial staff,
from whom greater commitment to outcomes is required, arebased on performance evaluations only, while promotions are
based on demonstrated skills evaluations.

14-6 Wage Management
Wages and other compensation for labor are appropriately
stipulated in the wage rules of each affiliated company and inindividual contracts in accordance with the laws and regulationsof each country. The Nissha Group makes no distinctions basedon age, gender, or other factors. The wage gap between maleand female in the fiscal year ended December 2023 is shown
below. The figures show a comparison of female with a malewage set at 100.

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

The human resources system used for full-time workers at
Nissha applies equally to male and female, and they are both
treated the same. Differences between male and female arise
from differences in rank or age composition. There is a smaller
ratio of female in managerial positions or higher ranks, whichhave relatively higher salaries, and this affects the differences
over all positions. Looking at managerial staff alone, female are
100.2 compared to the maleʼs 100, so there is no difference.
We are considering further promotion of initiatives for theadvancement of women which should lead to improvements inthe overall difference.
In addition, non-regular workers include employees who aretreated differently, such as contract employees who are rehired
af ter mandator y retirement and employees working underindividual labor contracts. The main reason for the difference
between male and female is that employees rehired on an
ongoing basis as non-regular workers in managerial positions
following mandated retirement are, as noted above, mostly
male, which affects the overall difference.

(Nissha Co., Ltd.)The Nissha Group considers rewarding employees for theirachievements to be the foundation of our human resourcess y s tem. Per s o nnel e v aluatio ns are b a s e d o n the t ar ge t
management system, and focus on the two axes of performance
evaluations, which assess KPIs tied to the mission of theorganization an employee belongs to and the management
strategy of the company, and demonstrated skills evaluations,which assess whether actions appropriate to the role have been

Nissha Sustainability Report 2024

Male

All workers

Female100

75.9

Full-time workers

100

78.1

Non-regular workers

100

60.0

* Calculated based on the regulations in the Act on Promotion of Women's Participation
and Advancement in the Workplace (Act No. 64 of 2015).

14-3

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

SocialThird Party
Verification

Environment

Human
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

15. Respect for Diversity■ Employee Composition (Nissha Co., Ltd.)

15-1 Nissha Group Employee Composition
The diversity of the Nissha Group shows in our employee composition, and a variety of employees ofdifferent nationalities, genders, and ages are active. With the expansion of our activities across theglobe, about 60% of permanent employees work at Nissha Group companies outside Japan. Nissha
Group overseas bases are continuing to hire local employees and locally hired employees have been
appointed to upper management positions, such as CEO, at eight of the 17 major overseas groupcompanies.

Area

Japan

Unit: Number of employees

North America

Central andSouth America

Asia

Europe

Male

1,489

750

191

281

501

Female

433

617

415

301

243

Total

1,922

1,367

606

582

744

* Figures exclude temporary employees and directors by a delegation agreement.

GenderDirectors of
the Board*1

Corporate
officers

Nisshafellows

Managerial
staff*2

Total employees*3

Averageage*4

Averageyears ofemployment*4

End of
FY2019

Male

8

12

1

162

609

42.9

15.3

Female

1

0

0

10

210

36.7

11.0

End of
FY2020

Male

8

11

2

145

531

43.0

15.4

Female

1

0

0

8

189

37.3

11.5

Male

8

12

2

157

534

43.8

15.6

Female

1

0

0

9

197

37.8

10.8

Male

8

12

1

153

513

44.7

17.2

Female

1

0

0

10

197

38.2

11.8

Male

8

11

1

152

514

44.8

17.2

Female

1

0

0

12

206

38.1

11.6

End of
FY2021■ Composition by region (Nissha Group, as of the end of December 2023)

Number of employees by region and genderFiscalYear

End of
FY2022End of
FY2023*1. Directors include Independent Outside Directors of the Board.
*2. Managerial staff exclude corporate officers.
*3. Employees exclude temporary employees.
*4. Average age and average years of employment indicate the average number of employees included in total employees.

■ Composition by employment status (Nissha Group, as of the end of December 2023)

Composition by employment status and gender
Permanent
NumberTemporary

Composition (%)

NumberComposition (%)

Male

3,212

61.5

894

65.4

Female

2,009

38.5

474

34.6

Total

5,221

―

1,368

―

* Figures exclude directors by a delegation agreement.

Nissha Sustainability Report 2024

15-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

SocialThird Party
Verification

Environment

Human
RightsHuman
Resources■ Composition by age (Nissha Co., Ltd., as of the end of December 2023)
Unit: Number of employees
Age

18-19

20-29

30-39

40-49

50-59

60-69

Male

0

36

106

213

152

7

Female

4

45

66

63

27

1

■ Number of employees (Nissha Group)

Unit: Number of employees

End of FY2019

End of FY2020

End of FY2021

End of FY2022

End of FY2023

Male

3,692

3,432

3,470

3,362

3,212

Female

2,026

1,958

1,939

1,963

2,009

Total

5,718

5,390

5,409

5,325

5,221

Fair Operating Practices/ Local Communities■ Composition of managerial staff (Nissha Group in Japan)

End of
FY2022End of
FY2023Governance

GRI Standards Content
Index / ESG Data

15-2 Employment of Persons with Disabilities
The Nissha Group is working to achieve a percentage that is above the statutory rate of persons
with disabilities employed at domestic Group companies which are targeted by government ʼsemployment ratio system for persons with disabilities. To ensure that employees with disabilities
can work with peace of mind, we provide support from outside specialists, help them develop
their skills, and hold regular interviews with Human Resources. In the fiscal year ended December
2023, we invited a counselor from the Kyoto Vocational Center for Persons with Disabilities andcreated a space for dialogue between the counselor and department heads of where the employeeswith disabilities worked. The following shows the changes in the employment rate of persons withdisabilities in our company. Three people were hired in the fiscal year ended December 2023,
meaning our percentage of persons with disabilities employed exceeded the statutory rate.

Unit: %Of all permanent employees who left Nissha Group companies in Japan in the fiscal year ended
December 2023, 2.52% left for personal reasons.

End of
FY2021

Quality Management / Efficiency
and Productivity Improvement■ Legal employment rate and Nisshaʻs employment rate

* Figures exclude temporary employees.

FiscalYear

Governance

Male

FemaleOf which mid-carrier employees

Total

Of which foreign
employees

Number

281

14

295

94

2

Composition
ratio (%)

95.3

4.7

―

31.9

0.7

Number

269

15

284

91

1

Composition
ratio (%)

94.7

5.3

―

32.0

0.4

Number

261

17

278

89

1

Composition
ratio (%)

93.9

6.1

―

32.0

0.4

End of FY2019

End of FY2020

End of FY2021

End of FY2022

End of FY2023

Employment rate ofNissha

2.38

2.11

2.12

2.07

2.67

Statutory
employment rate

2.2

2.2

2.3

2.3

2.3

We shall continue to strengthen links with external organizations such as Hello Work, create places
that are easy to work in, and promote understanding of workplaces for the disabled. Through theseactions, we aim to both create opportunities to hire and employ persons with disabilities and at thesame time, achieve “Diversity and Inclusion” (We welcome diverse capabilities interacting as equals
and enhancing our organizational performance) part of our Shared Values.

* Managerial staff exclude temporary employees.

Nissha Sustainability Report 2024

15-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

SocialThird Party
Verification

Environment

Human
RightsGovernanceFair Operating Practices/ Local Communities

Human
Resources

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

15-3 Foreign Employees in Active Roles

15-4 Promotion of Women's
Advancement

next-generation female managerial staff, who are in leadershiproles just below the managerial level.

The Nissha Group conducts recruitment activities regardless ofnationality. In our Group, where a diverse range of people plays
active roles, non-Japanese nationals account for more than
60% of all employees. The number of foreign nationals working
for the Nissha Group in Japan is increasing. In our Kyoto Global
Headquarters, we have set up a worship room available for those
who wish to use it, as well as a small purification facility to purify
the body before worship.

The Nissha Group aims to be a company where all employees,
regardless of nationality, gender, age, and more, can exercise
their abilities to the full.

■ Action Plan for the Japanese Act on Promotion of
Womenʼs Participation and Advancement in the

The total number of new graduates and mid-career hires and thenumber of newly hired foreign employees at Nissha Co., Ltd. isshown below.
Unit: Number of employees
Total
numberof hires

New graduates
Foreignnationals

Total
numberForeignnationals

Country

FY2020

19

12

0

7

0

-

FY2021

34

11

0

23

0

-

FY2022

27

12

1

15

0

Republicof Korea

FY2023

51

12

0

39

2

Republicof Korea,
Brazil* Figures for mid-career hires from the end of FY2020 to the end of FY2022 have been revised
due to a review of the aggregation method in accordance with the disclosure of the midcareer hiring ratio based on the Comprehensive Promotion of Labor Policies Act.
* The number of mid-career hires includes employees who were promoted from non-regular to

Nissha Sustainability Report 2024

Refer to 14-3 ESG Task Force Initiatives

The Japanese Act on Promotion of Womenʼs Participation andAdvancement in the Workplace requires companies with 101 or
more employees to draft an action plan for promoting womenʼsparticipation in business. In the Nissha Group, five companies,
Nissha Co., Ltd., Nissha Industries, Inc., Nissha Precision andTechnologies, Inc., Nissha Printing Communications, Inc. andNissha Business Service, Inc. have formulated action plans thatspecify quantitative targets and the details of their initiatives.
In line with the action plans based on the Womenʼs Participation
Act, moving forward, we will continue to upgrade our initiatives sothat all female employees can live up to their full potential.

Mid-career

Total
numberregular employment.

The Nissha Group has set the ratio of female managerial staff,
one of the symbols of diversity, as a KPI. We are working on
promoting the advancement of women, setting targets of 23%
globally consolidated and 12% for Nissha non-consolidated by
2026. In the fiscal year ending December 2024, several women
will be appointed as managerial staff, and Nissha expects
the percentage to increase to more than 8.5% on a nonconsolidated basis.

WorkplaceFemale managers ratio
End of
FY2020End of
FY2021

End of
FY2022End of
FY2023

Forecast at theend of FY2024

Nissha
Group
(%)

19.4

20.0

21.5

22.7

23.0 〜 24.0

NISSHA
(%)

5.0

5.4

5.9

7.1

8.5 〜 9.5

The Nissha Group in Japan opened a career counseling office in
2021, where women can get support for career planning that
accommodates their life events. In addition, we are providing
challenging growth opportunities for female employees byenhancing selective training and company-wide common
training items for each grade, and systematically developing
next-generation managerial staff through personnel rotation.
Through these initiatives, we shall steadily increase the ratio of

15-3

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

16. Human Resources Development
16-1 Basic Concept
The Nissha Group in Japan offers a wide range of training
programs to realize our medium- to long-term growth strategy
and to suppor t employees' medium- to long-term careerdevelopment and promote their growth. These programs havebeen organized into an in-house university, Nissha Academy.
Specifically, we have established selective training programs todevelop management and strategic human resources, rankspecific training programs that match the employeeʼs stage,function-ba sed training programs to provide specialized
knowledge according to job type and duties, and career design
training programs tailored to employeesʼ life stage. The Nissha
Group overseas is also developing various training programs
under the Nissha Academy flag, based on the actual situationin each country and region. Through such human resources
development initiatives, the Group aims to see the company andour employees grow together.

Nissha Sustainability Report 2024

16-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

16-2 Training Systems

graduated from schools of management with lectures based onpractical case studies by in-house instructors.

■ Selective training

Executive MBA program and a graduate school program
for working professionals

We carry out selective training with the object of systematicallytraining the human resources necessary to achieve our mediumto long-term growth strategy, including training candidates
for the next generation of management/strategy personnel orglobal personnel.

As a higher level training program of the Business School, we alsooffer opportunities to attend an external executive MBA course,
or graduate schools in the fields of business management or data
science as an adult student. These programs are mainly used toacquire new skill sets in anticipation of a change in position thatinvolves a major change in perspective or viewpoint.

Business School
This training program is designed to systematically develop
human resources to lead the management of the entire company
and its businesses.
It covers the knowledge and skills involved in developing andimplementing business strategies. Participants who complete thetraining program will be actively provided with opportunities to
put what they have learned into practice, including participating
in projects and formulating medium-term management plans.
The Business School offers three courses: a beginner course
for those aiming to gain the skills and knowledge needed to
become assistants to managerial staff, an intermediate course
for those aiming to gain the skills and knowledge required ofentry-level managerial staff, and an advanced course for thoseaiming to gain the skills and knowledge required for upper-level
managerial staff. The beginner course is taught by in-houseofficers and managerial staff who have completed programs at
the Business School, and covers basic business literacy and the
Nissha Group's corporate philosophy system (Nissha Philosophy).
The intermediate and advanced courses are original programs
that combine MBA-based lectures by outside professors from
graduate schools of management or Nissha staff who haveNissha Sustainability Report 2024

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

tic Group companies. For about a month, regardless of hiring
company or academic history, they will learn the outline of the
Nissha Group as a whole as well as its businesses and products
through lectures and field trips to factories. After that, students
undergo business unit training or factory training as appropriate
for their positions. After being assigned positions, they expand
their experiences broadly while utilizing rotations across job
types and departments, in consideration of development froma long-term perspective, supporting new employees to grow instages.

Overseas trainee system
We have an overseas trainee system for developing young humanresources (from both liberal arts and science backgrounds)
who can flourish in global business settings regardless of their
job type. Employees who have been with the company for atleast three years can apply, and, following an internal selection
process, will be dispatched as trainees for about a year. By
working at overseas subsidiaries in Europe, America, or Asia,
they can improve their specialized skills, language abilities,
and intercultural adaptability with the goal of becoming global
leaders, including candidates for overseas postings, in the future.

■ Rank-specific training
Rank-specific training is provided at milestones such as whenentering the company, promoted, and appointed to certain
positions.

New employee training
At the Nissha Group, the first three years after new graduatesenter the company are positioned as the initial training period. At
the start of this period, group training is conducted at all domes-

16-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification■ Function-based training
Training is provided to employees to allow them to acquire theknowledge and skills required for their job type and duties, suchas engineering, production, purchasing, etc.

Priority market skills training
In accordance with our portfolio strategy, Nissha is working on
shifting from the IT devices market to non-IT device markets,
such as medical and mobility. Priority market skills training backs
up our portfolio strategy from the education and training aspects. It is our unique training program for improving the qualityof our value proposals to customers in non-IT device markets.
Priority market skills training consists of three layers: (1) Basiceducation for engineers, (2) Practical design skills for engineers,and (3) Practical education by target markets for non-engineers
as well. This composition reflects the demand for advanced design skills by corporations in position to provide parts and modules in the medical market such as Nissha, and the demands ofcompliance with quality management systems and regulations
specific to each industry.
In 2023, multiple subjects were offered in each level from (1) to(3), with a focus on the medical and mobility markets, and a total of 819 people took these trainings.

Common training for engineers
The technical knowledge required tomeet the needs of global customers
is taught from the dual aspects of
the “core technologies” that are ourstrengths, and the science-based“common engineering” knowledge(quality, statistics, intellectual prop-

Nissha Sustainability Report 2024

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

erty, etc.) that all engineers, regardless of where they work, should
be aware of. Employees are taught all this, from introductory toapplied fields, in line with their individual experience and knowledge
levels.
In order for us to continue to grow while changing our target markets and products, we train engineers who can create products thatcome with “Nisshaʼs unique strengths” beyond the boundaries ofbusiness units.

16-3 Support for Employees' Voluntary
Desires to Learn and Grow

We support self-study for the purpose of encouraging employees
to voluntarily seek opportunities for study, and to enhance theireducation or gain knowledge about the Company's business, byproviding information on programs that encourage study andby providing a system that subsidizes half of the cost for those
employees who complete self-study.

16-4 Career Planning Support
Since the fiscal year ended December 2019, we have been
providing career design training annually for full-time employees
in their 50s. All full-time employees aged 50-59 have completed
this training (as of December 31, 2023), which is designed tohelp them understand changes in the external environment,
company systems, and their own values and strengths, andchoose their own careers.

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

16-5 Training Records
The table on the right shows the total training hours per year of
employees (full-time and contract) who participated in major
training programs offered by the Nissha Group in Japan andthe training hours per employee, obtained by dividing the total
number of hours by the number of employees.
Some training sessions are held every two years, and others
every three years. While the number of programs and students
have both fluctuated from year to year, we carry out training
based on careful study of the targets and required times so thatthe necessary education can be given to the necessary people.
In addition, we are also working on increasing efficiency thoughways such as compressing time for group training by combining
pre- and post-study to meet the needs of diverse working styles
and reduced work hours.
GenderTotal training
hours per year

Training hours
per employee

FY2021

FY2022
23,252

FY2023Male

28,92820,042

Female13,498

7,361

8,697

Total

42,42630,61328,739

Male

16.4

14.2

12.2

Female

24.0

15.3

17.7

Total

18.2

14.4

13.4

* Training hours per employee are calculated based on the number of full-time employees andcontract employees of the Nissha Group in Japan.

16-3

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

16-6 In-House Training Programs
The Nissha Group values an organizational culture in which
senior employees train junior employees and encourages inhouse training programs. Instructors are primarily managerial
staff who share their experience and knowledge with other
employees. In addition to expanding personal connections
among employees, through this initiative more employees are
rediscovering Nisshaʼs strengths and attractiveness, and ourorganizational strength and sense of unity are improving. We
previously had employees take part in external training programsin areas in which we have not accumulated knowledge in-house,
as we accumulate knowledge in these areas we are graduallycreating training programs in-house. This ratio varies from year
to year, but we are aiming to achieve a 50% in-house training
ratio.

Nissha Sustainability Report 2024

16-4

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

17. Employee Engagement
The Nissha Group has established Diversity and Inclusion as oneof the Shared Values, which is the principle of employee behavior,and is working to create a workplace where human resources
with diverse values and diverse backgrounds can maximize theirabilities. At Nissha Group in Japan, we are implementing work
style reforms with the aim of improving productivity, along withenhancing various support systems and promoting the creationof a workplace that supports diverse and flexible work styles.
These are some of the ways we provide support to help our
employees achieve a work-life balance.

17-1 Engagement Survey
For employees to work passionately and for the company andemployees to grow together, we believe it is important for thecompany to improve employee engagement by putting in placea system that encourages this and fostering an organizational
culture that is easy to work in. As one of these efforts, we started
engagement surveys in 2022. In the first half of the fiscal year
ended December 2023, these were expanded to contract
employees in addition to all full-time employees in Japan,
and these targeted around 3,100 employees, excluding thoseworking at overseas Nissha Group factories, etc. in the second
half of the fiscal year ended December 2023. The purpose ofthis survey was to identify issues that will improve the diverse
capabilities and passions of Nissha, the source of our growth,and to improve it to the way we are, and will be conductedannually in the future.
Compared to the previous fiscal year, there were, overall,
improvements in the key indices, showing that actions in the

Nissha Sustainability Report 2024

workplaces over this period were bearing fruit. In addition,
increa s e d intere s t amo ng emp l oye e s l ead to a sizeab l e
improvement in the response rate. These results will be analyzed
at the company, business, and workplace levels to create specificactions with the aim of further improvements. By continuingthese efforts into the future, we shall foster a corporate culture
where all employees can work with passion.

■ Engagement survey results
KPI

TargetResponse rate
Global consolidated

More than80%

Positive response rate
Global consolidated

Will to contribute to the organization

ResultFY2022

FY2023

83.0%

94.2%

FY2022

FY2023

95.6%

95.5%

87.8%

89.0%

82.3%

83.4%

78.8%

80.6%

I want to contribute to Nissha

Organizational Commitment
I am proud to work for Nissha

Rewarding
I find my work rewarding

17-2 Flexible Work Hours
We have introduced a flextime system to promote work-lifebalance, as well as to accommodate the time difference between
Japan and overseas, enabling flexible working styles that meetboth the needs of our customers and variations in businessdemands. Employees manage their time in a planned andautonomous manner, without setting a core time. A wide rangeof employees, from the sales departments to the development,
engineering, and management departments take advantage ofthis system.

17-3 Telework System
A telework system has been introduced to promote effective
and flexible working styles for employees, as well as helping
them balance their home and work lives. In the fiscal year ended
December 2020, by expanding its scope from employees withchild-rearing and family care responsibilities to any employee
who can perform the same level of work at home as at theoffice, the system is now also an indispensable part in the eventof transportation disruptions or disasters.

Feeling of contributing to society
I feel I contribute to society through my
work

17-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

17-4 Child-Rearing and Family Care
SupportWe are enhancing the support system for child-rearing andfamily care for the flexible working styles of employees at various
life stages.

■ Major child-rearing support system
By drafting an action plan and executing a range of measures
based on the Act on Advancement of Measures to Support
Raising Next-generation Children, many of our efforts in childrearing support exceed statutory guidelines.
Support system

Nissha Group in Japan

Shorter hours
during pregnancy

During pregnancy (up to maternity
leave before childbirth)
Up to 3 hours per day―

Days off for
spouseʼs childbirth

3 days at the time of spouseʼschildbirth(Special paid leave)―

Shorter hours forchild-rearing

Up to completion of elementary
schoolUp to 3 hours per day

Up to 3 years old
By effort: Start of elementary
schoolDays off for childnursing

1 child: 5 days
2 or more children: 10 days
Up to start of elementary school:
paid
From the first to sixth grade: unpaid

1 child: 5 days
2 or more children: 10 days
Either paid or unpaid
Up to start of elementary
schoolChild-rearing
support fundAmount: 150,000 yen (for eachoccasion below)
Period:• Birth• Start of elementary school• Start of junior high school• Start of senior high school• Start of technical college

Nissha Sustainability Report 2024

Statutory coverageSocialHuman
RightsGovernanceFair Operating Practices/ Local Communities

Human
Resources

Quality Management / Efficiency
and Productivity Improvement

In addition to the above, in order to support female employees
who wish to return to work early after childcare leave, we haveintroduced a system to provide financial support to employees
who return to work by the end of the month in which their childturns six months old and who meet certain requirements, and asystem to cover part of the expenses of private day care.

■ Number of employees who used child-rearing

Support (Nissha Group in Japan)
The number of employees who used child-rearing leave, worked
shorter hours for child-rearing, and took days off for child nursing
are as the table below. In order to help employees make effective
use of our support systems, we notify both the employee andhis or her manager of the various systems immediately after
birth registration is filed. Thanks to improved recognition of thesystems available, the number of male employees using childrearing systems is increasing year after year.
SupportsystemChild-rearing
leave

Shorterhours forchild-rearing―

Days off forchild nursing

Gender

FY2019FY2020

FY2021

FY2022

FY2023

Male

18

19

21

25

38

Female

43

50

46

48

43

Total

61

69

67

73

81

Male

7

2

2

3

6

Female

90

93

87

92

82

Total

97

95

89

95

88

Male

79

56

49

50

60

Female

78

64

59

65

62

Total

157

120

108

115

122

Reinstatement Rate*1(%)

Retention
rate*2(one year)(%)

Governance

GRI Standards Content
Index / ESG Data

Gender

FY2019FY2020

FY2021

FY2022

FY2023

Male

100.0

100.0

100.0

100.0

100.0

Female

95.0

100.0

95.6

95.8

100.0

Average

96.8

100.0

97.1

97.6

100.0

Male

100.0

92.0

83.3

87.5

95.0

Female

90.0

88.6

91.3

100.0

88.6

Average

93.5

90.0

88.5

94.7

90.6

*1. Number of employees reinstated after child-rearing leave in the current fiscal year ÷ Numberof employees expected to be reinstated after child-rearing leave in the current fiscal year x 100*2. Number of employees remaining at the end of December in the current fiscal year after
being reinstated after child-rearing leave in the previous fiscal year ÷ Number of employees
reinstated after child-rearing leave in the previous fiscal year x 100■ Major family care support systems
Support system

Nissha Group in Japan

Statutory coverage

Family careleave

Total 240 working days

Total 93 days

Shorter hours
for family care

Until the reason for homecare has passed
3 hours per day

At least 3 years from startof useDays off forfamily care

1 family member: 5 days
2 or more family members:
10 daysPaid

1 family member: 5 days
2 or more family members:
10 daysEither paid or unpaid

In order to appropriately respond to inquiries and offer consultation
about certification of needed long-term care and long-term careinsurance, we have established a help desk that connects to an
external specialist.

The reinstatement rate and retention rate (1 year) after childrearing leave are given below. Many employees are reinstated after
taking leave and continue to work in the Nissha Group.

17-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Third Party
Verification

Environment■ Number of employees who used family care leave

Family careleave
Shorterhours forfamily careDays off forfamily care

Gender

FY2019FY2020

FY2021

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities■ Communication with employees(Nissha Group in Japan)
SupportsystemSocialFY2022

FY2023

Male

3

1

0

0

0

Female

1

0

0

0

0

Male

0

0

0

0

0

Female

1

0

0

0

1

Male

12

8

5

6

8

Female

5

7

1

6

7

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

■ Kurumin Certification

A dedicated "Thinking about Careers" website is available on
intranet to introduce various systems and personal experiences
to help employees think independently about the career options
available when life events such as marriage, childbirth, childcare,nursing care, treatment for illness, and retirement occur.
In addition, we established a system that is easy for employees
to under stand by consolidating contact to the Per sonnel
Consultation Desk and referring employees to the appropriate
person in charge according to the content when they havequestions or concerns about life and career plans in general, notjust in relation to childcare or nursing care.

Nissha has received “Kurumin” certification for three consecutive
terms since the fiscal year ended March 2010, for a total of
11 years, and in March 2019 we were certified with Platinum
Kurumin.
Based on the Act on Advancement of Measures to Support
Raising Nextgeneration Children,“Platinum Kurumin” is a system
to cer tif y companies that have already obtained Kurumincer tification in recognition of their mea sures to suppor t
employees with children and are carrying out initiatives at aneven higher level. This certification was in recognition of ourintroduction of systems to support a balance between work andchildrearing for both men and women, our initiatives to reduce
overtime work, our ongoing seminars on topics related to thepromotion of women in the workplace, and so on.
Within the Nissha Group, Nissha Business Ser vice Co., Ltd.
received Kurumin cer tification in 2015, followed by Nitec
Precision and Technologies, Inc. (currently, Nissha Precision andTechnologies, Inc.) in 2016.
We shall continue aiming to create a workplace where each
employee can work energetically, enjoying a rich life where workand child-rearing are balanced.

Nissha Sustainability Report 2024

17-3

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Third Party
Verification

Environment17-5 Promotion of the Use of Annual
Paid Leave

We are continuing efforts such as disseminating informationinternally via the intranet, registering annual paid leave plans forthe year in advance in the attendance management system, anddistributing the results of leave taken to department managers.
Five days a year have become standard as required leave, so
we changed our target to eight days as of 2023, and many
employees were able to achieve. As a result, the average takeup rate in FY2023 was 72.0%, a further improvement over lastyearʼs rate. Currently, the target has been raised to ten days per
year, and we will continue to promote the use of annual paid
leave.
In October 2019, we introduced annual paid leave by the hour asa system for facilitating more flexible use of annual paid leave.
This system is widely used by employees.

■ Average days and percentage of annual paid leaveused (Nissha Group in Japan)
Fiscal Year

FY2019FY2020

FY2021

FY2022

FY2023

Average
days

12.2

11.4

11.5

12.9

14.1

Percentage of
use

65.9

61.4

60.3

66.1

72.0

Nissha Sustainability Report 2024

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

17-6 Saved Expired Leave System
T he Nis sha Group in Japan ha s intro duced a paid leaveaccumulation system that allows employees to save up to 30
days of expired annual paid leave to be used in unforeseen
circumstances or to facilitate the performance of social roles.
This system is used in the event of illness either of the employee
or a family member, childcare and family care, school events andholidays, and volunteer activities including registering as a donor
with the bone marrow bank.

17-7 Volunteer Leave System (Nissha
Group in Japan)

T he paid leave accumulation sy s tem can b e us ed w hen
participating in volunteer activities such as registering as adonor with the bone marrow bank, assisting at welfare facilities
managed by local government s, and activities related toreconstruction assistance following natural disasters. In thefiscal year ended December 2023, four people used the system
for a total of eight days.

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

17-8 Outpatient Sick Leave System(Nissha Group in Japan)

In fiscal year ended March 2016, we introduced an outpatient
sick leave system with the aim of supporting employees who
require long-term outpatient treatment to continue working. The
system enables employees with specified disorders to take 12days off per year for treatment. In addition, when further support
is required due to currently undergoing treatment, up to 24 days
can be taken. Nine employees used the system in the fiscal year
ended December 2023.
Fiscal Year

FY2019FY2020

FY2021

FY2022

FY2023

Male

1

2

3

5

5

Female

2

2

3

4

4

Total

3

4

6

9

9

17-9 Support for Reinstatement After
Long-Term Leave

For employees reinstated at work after long-term leave due
to illness or injury, we have introduced rehabilitation work toprevent recurrence and support a smooth return to work. After
returning to work, we ask employees to submit periodic reports
to check on their status, and they also have interviews with ourindustrial physicians to check on anything that requires special
allowances in employment. For employees to whom paid leave
was not granted during long-term leave, three days of paid leave
are granted when the employeeʼs attendance at work is at least
95% for a period of three months after reinstatement.

17-4

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsGovernanceFair Operating Practices/ Local Communities

Human
Resources

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

17-10 Management of Working Time

17-11 Internal Job Posting System

17-12 Awarding System (Nissha Group)

Nissha Group in Japan promote the reduction of overtime work
to realize employee health and work-life balance. In addition
to improving productivity, Group companies have been steadilydecreasing overtime hours over the years through ongoing
activities including employee training aimed at optimizing
working hours and sending out individual aler t e-mails to
employees who are likely to work long hours. As a result, there
was an 11% reduction from the previous fiscal year in 2023.
At the same time, Group companies are working to equalize
working hours among departments by reviewing the division ofduties.

The Nissha Group introduced an internal job posting systemwith the aim of providing employees with the opportunity tochoose their own career path as well as appointing employees
to positions that reflect their aptitude and thereby enhancing
our organizational strength. Under this system, we first recruit
the human resources needed for divisions and operations that
we focus on, such as priority markets and new businesses withhigh commercialization potential, from the perspective ofmanagement strategies such as medium-term business plans.
Employees who meet the requirements apply on their own
initiative and those that pass the selection are transferred to
the relevant division. Employees transferred through internal
recruitment are playing active roles in their divisions.

Nis sha Group e s t ablished var ious awarding s y s tems for
employees. These systems aim to praise the recipients of theawards and motivate the company and organizations as a whole
by clarifying the requirements that the company should praiseand by widely disseminating facts that correspond to suchrequirements through the company and organizations.
The results of the four main group-wide awards in the fiscal
year ended December 2023, namely the CEO's Award, the BU
Headʼs Award, the Synergy Award, and the New Hope Award, areas follows. These award winners include employees at overseas
bases. As part of the companyʼs efforts to create synergy, we
encourage movement across business units and divisions,so many employees who have contributed to cross-sectional
projects have been selected.

■ Implementation status of internal Job posting

system (Nissha Group in Japan)
Fiscal Year

FY2019FY2020

FY2021

FY2022

FY2023

Number of job
posting9Nooffering

15

31

14

Male

4

-

6

2

0

Female

1

-

1

0

1

Successful
applicants(transferees)

Nissha Sustainability Report 2024

Number of
winners

Type

Content

CEO's Award(Company-wide)

For employees who have made significant
contributions to the consolidated performancen/aCEO's Award(Group Companies)

For employees whose sales and operating
profit greatly exceed the previous year's
level and plan, or who have contributed
to the bold and dynamic execution ofbusiness strategies

11

BU Headʼs
Award

For employees who have made significant
contributions to business performance or
strategy

41

Synergy Award

For employees who have created synergies across regions and businesses

57

New HopeAward

For domestic employees who act proactively without fear of failure or change asworkplace heroes

15

17-5

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

In addition to the group-wide awards
mentione d ab ove, the Group als oop erate s an award sy s tem for Group
companies, including the Group
Company Representative Award,
which recognizes employees who havep er formed out st andingly well. The
Group has established the global tagline' P e r f o r m a n c e C h a m p i o n', w h i c h i smeant to recognize employees who haveachieved results, and all of these awards
are operated under a unified concept andvisual.

17-13 Career Resumption ProgramThis program supports former employees who resigned due tolife events such as childbirth, childcare, or nursing care, or for
personal reasons such as job change, by giving them the option
to return to work for the Nissha Group. This program enables us
to draw on the range of experiences, knowledge and skills thatformer employees who are already familiar with our corporate
culture and business have acquired outside the company, suchas at other companies. It allows them to play active roles again
as human resources with diverse values and careers. In 2023,
there were two cases of this program being utilized within the
Nissha Group in Japan.

Human
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

17-14 Employee Stock Ownership Plan /J-ESOPAs part of our efforts to provide employees with incentives
to increase the corporate value of the Group and to support
medium- to long-term asset formation, we operate an employee
stock ownership plan for full-time and contract employees of the
Nissha Group in Japan.
In addition, we introduced a Stock Benefit Trust (Employee
Shareholding Purchase-type) in November 2019 as a systemthat allows all employees and contract employees who join theemployee stock ownership plan to receive the benefits of the risein the stock price of the Company's shares for three years. This
program ended in January 2023 and was reintroduced in March
2023.

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

17-15 Retirement Pay System
Nissha has updated to a retirement pay system based aroundrole and ability as of the fiscal year ending December 2024 inorder to unify it with its human resources system. In addition,
expanding the defined benefit pension plan, in which pension
assets can be carried, from the existing system allows both
dealing with employment flexibility and supporting employee
asset growth.

As of the end of December 2023, 28.5% of the employees havejoined, and together hold 0.9% of the Company's shares.

■ Subscription Status of Employee Stock Ownership

Plan
Year

2019

2020

2021

2022

2023

Number of
eligible
subscribers

2,353

2,089

2,081

2,011

2,033

Number ofsubscribers

625

543

573

553

579

Subscription
rate

26.6

26.0

27.5

27.5

28.5

In addition, in the fiscal year ended December 2020, we
introduced a Stock Benefit Trust (J-ESOP) for employees of theCompany and some of its subsidiaries.

Nissha Sustainability Report 2024

17-6

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

18. Safety and Health18-1 Policy and Principles

18-2 Safety and Health Management System

The Nissha Group has established a Basic Policy for Occupational Health and Safety and Basic
Principles for Occupational Health and Safety which outlines specific actions and disciplines, andhas informed all employees of their content, aiming to ensure the health and safety of all people
involved in our business activities.

Under the Risk Management and Compliance Committee, the Nissha Group in Japan operates anenvironmental occupational health and safety management system that includes compliance withitems required by customers and by laws and regulations, based on the ISO14001 Environmental
Management System and the ISO45001 Occupational Health and Safety Management System. We
formulated an action plan to achieve our targets, and in addition to repeating the PDCA cycle with aneye to sustained improvements, we are striving to implement assessments through regular internal
audits and management reviews. The Safety and Health Committees established at each base areformed from representatives from the bases, such as the safety manager and the health manager,
along with employee representative members selected from the Nissha Crew Alliance (labor union) andworkplaces. The Committee is responsible for responding to occupational accidents and implementing
corrective measures, as well as bringing about safe and comfortable workplaces.

Occupational Safety and Health Policy
Nissha Group places safety first in its business activities and continues to actively work on areas such as improving the working environments and health of Nissha People, remaining a company where Nissha People
can remain healthy in both physical and mental.
Junya Suzuki
Chairman of the Board, President and CEO
Nissha Co., Ltd.

Safety and Health Management Structure

Occupational Safety and Health Principles
1. We shall strive to eliminate and reduce risks through increasing risk sensitivity and responding to changes forachieving “zero accidents”.
2. We shall promote measures related to health and promote the maintenance and improvement of both
physical and mental health.
3. We shall introduce appropriate management resources to ensure the safety and promote the health of Nissha People, and work to improve their effectiveness.
4. We shall ensure the safety of Nissha People by having them mutually interact and act with discipline.
5. We shall construct a management system and promote continuous improvements to suit changes in thebusiness environment.
6. We shall comply with relevant laws and regulations, act with integrity, and create a safe culture.
Daisuke Inoue
Director of the Board, Senior Executive Vice President, General Affairs
Nissha Co., Ltd.
Established on April 1, 2007 / Revised on May 1, 2022

Nissha Sustainability Report 2024

The Nissha Group in Japan manages the progress of safety and health objectives, conducts safety
and health risk assessments at workplaces, takes measures to prevent the recurrence of occupational
accidents, monitors the number of accidents and the results of working environment measurements,
and conducts internal audits and takes corrective action. The progress of these activities is reported

18-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

at management review report meetings that all bases participate
in. At the end of the fiscal year, a review is held on whether the
management system is functioning effectively and to link it toactivities for the next fiscal year as part of the PDCA cycle.

18-3 Initiatives for FY2023

Human
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Safety Patrols* Figures include accidents involving temporary employees.

A team led by the safety manager, health manager and industrial
physician conducts safety patrols of workplaces. In addition
to checking for potential hazards and unsafe work practices
in the workplace, and whether chemical substances are being
managed appropriately, the patrols also try to raise workplacesafety awareness by incorporating the perspective of customer
requirements.

*1. Refers to the number of injuries and casualties resulting from occupational accidents(one or more days of leave) per one million working hours.

The Nissha Group in Japan has set safety and health targets
in line with our Occupational Safety and Health Policy andOccupational Safety and Health Principles, and are developinga range of occupational accident prevention activities with thegoal of zero occupational accidents over the three-year period
linked with the Medium-term Business Plan.

We honor workplaces that have worked diligently on these safety
and health activities and have not experienced any accidents
during the year. We also present an annual safety and healthaward, the Annual Zero Accident Award, in an effort to foster aculture of safety.

Workplace Risk Reduction - Risk Assessment

18-4 Occurrence of Occupational Accidents

We conduct risk assessments to reduce occupational safety andhealth risks in the workplace in accordance with our internal
regulations. Risk assessments are conducted regularly on aworkplace basis to continuously identify sources of hazards,
conduct risk assessments, and determine and implement risk
reduction measures based on the risk assessments. When an
injury accident occurs, we conduct a risk assessment for thatwork, and take risk reduction measures. Chemical substancerisk assessments are conducted at workplaces that use chemical
substances, such as technical development departments andproduction facilities. A major revision to the laws concerningchemical substance management in 2023 meant a substantial
shift from the existing legal compliance focus to autonomous
management. In the Nissha Group in Japan, we aim for zero
health effects from chemical substances, and are moving ahead
with the responses needed for autonomous management.

*2. Refers to the severity of occupational accidents in terms of the number of working days
lost per one thousand working hours.

Occurrence of Occupational Accidents by Region (Nissha
Group major overseas production bases)
The numbers of occupational accidents at the Nissha Groupmajor overseas production bases in the fiscal year ended
December 2023 are given in the table below.
RegionNumber

North
America

14

Central andSouth America

2Europe

13

Asia

1

* Work-related accidents requiring absence from work. The count for the number of accidents isbased on the standard in each region.

The following table shows the occurrence of occupational
accidents in the Nissha Group in Japan. There were two more
accidents in the fiscal year ended December 2023 than theprevious year, with a total of nine occupational accidents.
However, our goal is zero, and we are continuing to push ahead
with initiatives for this.

Occurrence of Occupational Accidents (Nissha Group in
Japan)Item

FY2021

FY2022

FY2023

15

7

9

7

0

5

Occupational accident
frequency*1 (%)

1.48

0.35

0.91

Occupational accident
severity*2 (%)

0.05

0.00

0.04

0

0

0

Number of occupational
accidents
4 or more days of leave

Fatal accidents

Nissha Sustainability Report 2024

GRI Standards Content
Index / ESG Data

Governance

18-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

18-5 Safety and Health Education andTraining

Generaltraining

In accordance with our Safety and Health Education and Management
Regulations, we are focusing on education and training to raise safety
awareness and foster a culture of safety, using remote educationand e-Learning. We also share information and develop educational
programs at our major overseas production bases.

Human
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Individual safety education

120

General lifesaving training

72

AED lessons/First aid team training

133

Traffic safety education

1,574

18-6 Safety Slogan
We created a safety slogan to raise awareness of safety with theaim of eradicating occupational accidents. This slogan is displayed
at all of our production bases in Japan and overseas.

General lifesaving training

Individual safety education

Governance

GRI Standards Content
Index / ESG Data

18-7 External Evaluation
The Nissha Group in Japan received the following awards related
to health and safety in the fiscal year ended December 2023.
Award target

Award nameAwarding bodyNissha Industries, Inc.

Excellent Safe Driving
Management Office

Koka Konan Safe
Driving Management
Association

Nissha Precision andTechnologies, Inc.

“Challenge 100”
accident-free, violationfree movement

Automobile Safe Driving
CenterNissha Precision andTechnologies, Inc.
Tsu (production base)

Chairmanʼs Award of
Mie Prefecture Labor
Standards Association
Federation
Superior WorkplaceAward

Mie Labor Bureau
Mie Prefecture Labor
Standards Association
Federation
Labor standards
associations around thecountry etc.

Training Participation
Category

Lesson/Session

Training on intake

Generaltraining

Number of attendees
in FY2023

62

Safety training at the time of assignment

5Training when installing new equipment

77

Health and safety training (healtheducation)

141

Health training (prevention of heatstroke)

70

Risk assessment training (safety andhealth/chemical substances)151

Foreman education

15

Chemicals training (risk assessment ofchemicals/chemical emergencies)

125

Safety training (chemical substances)724

Nissha Sustainability Report 2024

18-3

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

19. Health and Productivity Management
19-1 Policy

19-2 Structure

Nissha Group sees its Mission, ''We realize the enrichment of peopleʼs lives by creating technology
and developing it into economic and social value through the diverse capabilities, passion,and leadership of the global Nissha Group.'' To achieve this, we have formulated a Health andProductivity Management Policy based on the belief that it is important for the realization of ourMission that each and every employee to be healthy in mind and body and to be highly motivated intheir work, as this will lead to improvements in company performance.

We have appointed Senior Vice President, Chief Human Resources Officer in charge of health andproductivity management as part of our health and productivity management promotion structure.
Under the Risk Management and Compliance Committee, the Health and Productivity Management
Subcommittee, led by the director of the committee, staff plan and promote health measures for
the Group.

Health and Productivity Management Policy
Nissha Group aims to create new values through our diverse capabilities and passion. We consider
the maintenance and improvement of mental and physical health to allow employees to fully
exercise their abilities to be an important management issue, and promote a range of measures tothat end.
Junya Suzuki
Chairman of the Board, President and CEO
Nissha Co., Ltd.
Established on September 3, 2018
Revised on July 1, 2021

Nissha Sustainability Report 2024

19-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsFair Operating Practices/ Local Communities

Human
Resources

FY
2022*Measurement started
from the fiscal year ending
December 2024

1

Improve literacy of individuals
and managers regarding
women's health
Systematic training related
to mental health

2

FY
2023

3

FY
2024

• Average lost work time rate per employee in the survey, Wfun
(A questionnaire developed by the University of Occupational
and Environmental Health to measure the degree of work
impairment due to health problems)

―

―

12.9%

• Number of respondents

―

―

2,151

• Response rate

―

―

100%

4

0.72%

0.81%

―

• Positive response rate for the question “I find my work
rewarding” in the engagement survey

―

62.1%

62.4％

• Number of respondents―

2,005名2,039名• Response rate

―

97.0%

99.2%

Final Metrics for
Health-Related Targets

Management Issues
Addressed via
Health Management

Participation rate in seminars on women's health
Percentage of participants inmental health-related training(self-care, line care)

Exercise opportunities
for employees

Percentage of employees exercisingat least two days per week(questionnaire)

Healthy menu offerings

Number of Wellness menu
items consumed

Percentage of highly
stressed persons(stress check)

Social Value

1

Improved
Presenteeism

Percentage of obese
employees(BMI of 25 or higher)

Percentage of employees who eat breakfast (questionnaire)

Disease Prevention and Early Detection
Subsidies for full medical exams

Percentage of employees receiving a full medical exam

No smoking on-site

Percentage of smokers (questionnaire)2

Improved
Absenteeism

3

Increased
Engagement

Improved Work Styles and Work Environments

System for minimal
intervals between shifts

Independent career choice

Absenteeis

Metrics for Changes in
Employee Awareness and Behavior

Improved Lifestyles

Balance of work hours• Number of people on leave + number of long-term absences /total number of employees

Metrics for Health Investment
Policy Initiative Progress

Improved Health Literacy

Breakfasts at company café
convenience store

Final health-related target indices (Scope: Nissha Group in Japan)

Presenteeis

Health Investment

GRI Standards Content
Index / ESG Data

GovernanceDifference between max and min hours worked by division

Worktime Interval
compliance rate

Percentage of employees
who sleep sufficiently(questionnaire)

A Diverse Workforce Demonstrating Passion and High Performance

In the Group, we include “ Diverse people flying high in their roles with passion” as one of the
management issues we want to solve through health and productivity management, and have set
three KPIs (presenteeism, absenteeism, and engagement). We are moving ahead with concrete
actions in four categories to make these improvements.

Quality Management / Efficiency
and Productivity Improvement

Health Investment Outcomes

19-3 Health and Productivity Management Strategy Map
The Health and Productivity Management Strategy Map is a visualization by corporations engaged inhealth and productivity management of the problems they face and their initiatives to solve them.

GovernanceWe realize the enrichment ofpeopleʼs lives by creating newvalue through the diverse
capabilities and passion of the
global Nissha Group

Corporate Value
We improve the value
propositions offered tocustomers through a diverse
workforce that is healthy andhighly motivatedNo. of career plan programs in use*Figures as of the end of December each year

Engagement*Measurement started
from the fiscal year ended
December 2023

Nissha Sustainability Report 2024

19-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Third Party
Verification

Environment

19-4 Various Measures

Results in
FY2023We provide low-salt platedmenus with balanced
nutrition in the company
cafeteria.

Consumption
rate: 11.2%

In progress

Boost the rate ofdetailed medical
checkups

Those employees whose
health check results showedthat they needed further
detailed examinations will be
eligible to have the company
will pay costs for detailed
examinations (up to a
maximum of 10,000 yen per
examination) and their time
will be counted as working
hours if their examination isduring working hours (onceper examination).

Screening rate:
67%

Screening rate:
more than 70%

To support employees inquitting smoking, we offer
our correspondence course
in quitting smoking, the Stop
Smoking Challenge, and
the Graduate from Smoking
health guidance fromcompany health staff. We
also provide a subsidy (up to
10,000 yen) for participants
to purchase aids for stoppingsmoking.

Ratio of smokers:
25.7%

−

Industrial health staff provide
support for reviewing thelifestyle habits of employees
who are at high risk ofdeveloping lifestyle diseases
and who are likely to benefit
by modifying their lifestyle.

Ratio taking:94%
Ratio continuing:
98%−

Specific healthguidance

Nissha Sustainability Report 2024

Human
Resources

We hold seminars on
women's health that areopen to both men andwomen (simultaneously
available online, withrecordings available later).

GovernanceFair Operating Practices/ Local Communities

Participation rate:
6%

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

In progress

19-5 Certified Health and Productivity
Management Outstanding
Organizations

Targets in
FY2026

Improvements
to number ofWellness Plates
consumed

Reduction inratio of smokers

Human
RightsParticipation rate
in seminars on
women's health

The Health and Productivity Management Subcommittee,
which includes occupational health staff, plays a central rolein promoting health management through various measures
based on the Strategy Map.
Initiatives

SocialWe have been recognized as a "Certified Health & Productivity
Management Outstanding Organizations (Large Enterprise
Category)" by the Ministry of Economy, Trade and Industry forthe third year in a row. The certification is given to companies
with especially excellent health management practices.

19-3

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

20. Intellectual Property
20-1 Basic Concept20-2 Initiatives■ Training

The use of intellectual property is essential for the Nissha Group
to appropriately protect and provide customers with products
obtained as a result of our R&D and business activities. In order
to contribute to our business performance and conduct effective
and safety R&D and business activities, the Group emphasizes"building an intellectual property portfolio" and "avoiding intellectual property risks" under the leadership of the Intellectual
Property Management Department.

■ Building an intellectual property portfolio

The Nissha Group is enhancing its various training programs so thateach and every employee works with an understanding of intellectual
property right acquisition and usage and the risk associated withintellectual property.

We use the intellectual property system to properly safeguard
the results of our research and development. Right acquisition
is not limited to patents, but covers a wide range of other rights,
including designs, trademarks, and copyrights. In addition,
as the Groupʼs products are sold globally, we are working toobtain rights in other countries as well as Japan. The Intellectual
Property Management Department coherently manages, fromapplication to rights expiration, and intellectual property rights
we have obtained are utilized strategically throughout the entire
Nissha Group.

■ Avoiding intellectual property risks
To prevent inadver tent use of the intellectual proper ty ofother companies or the unauthorized use of our intellectual
property by third parties, we have established a SDI (Selective
D i s s emi nat i o n of Inf o r mat i o n) s y s t em t hat co n s t a nt l ymonitors whether these intellectual properties are being usedappropriately.

We offer a wide range of training for all employees taught byIntellectual Property department staff, from fundamental curriculum
such as explanations on how to read patent publications and theprocess of patent acquisition to on-the-job curriculum such astechniques for surveying patents from other companies. In the fiscal
year ended December 2023, a total of 165 employees attended.
In mandatory training for employees in engineering fields, we invitedan outside specialist instructor to teach about ways to find inventions
and techniques for searching for development themes, and so on.
This training was designed to continuously improve employeesʼ skills
and knowledge regarding intellectual property. In the fiscal year
ended December 2023, a total of 65 employees attended.

To prevent problems related to intellectual proper t y, theIntellectual Proper ty Management Depar tment examines
contracts related to intellectual property, such as joint researchand joint development.

Nissha Sustainability Report 2024

20

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

21. Partnership with Our Suppliers
21-1 Basic Policy
The Nissha Group procures the materials, equipment, and services necessary for production and awide range of business activities from suppliers in various regions. We work fairly and equally withall suppliers to promote sustainable procurement based on our Purchasing Principles in order toshare awareness of our social responsibility and enhance mutual enterprise value.
Our Purchasing Principles apply to all business operations throughout the Nissha Group. Basedon these principles and the Purchasing Management Regulations as a management frameworkoutline, we operate a system for each business.

Purchasing Principles
Nissha Group achieves sustainable procurement by building relationships of trust with our suppliers
through mutually fair purchasing.
Nissha Group evaluates our suppliers in terms of fairness, impartiality, and comprehensively based on thefollowing criteria.
1. Stable business foundation and reliable management principles
2. Excellent technology development and the abilities to propose products or services that consider environmental impacts
3. Provision of stable, high-quality products or services
4. Price competitiveness5. Stable production capacity and lead times
6. Effective business continuity management plans
Nissha Group achieves sustainable procurement by working with our suppliers in the following areas.
1. Labor and human rights
2. Health and safety
3. Environment
4. Ethics
5. Information security

Hisashi Iso
Director of the Board, Executive Vice President, Corporate Supply Chain
Nissha Co., Ltd.

We request all of our suppliers to comply with the Purchasing Principles and the CSR Procurement
Guidelines. These Guidelines are based on the Responsible Business Alliance (RBA), a code of
conduct mainly for the electronics and automotive industries, and on other codes of conduct that
our customers request we follow. The items are listed below.

■ Items of CSR Procurement Guidelines and SAQ (Self Assessment Questionnaire）
1. Labor and human rights

2．Health and safety

3．The environment(1) Elimination of Involuntary Labor(1) Occupational safety and health(1) Environmental permits and re-(2) Prohibition of child labor, pro-(2) Emergency preparedness

tection of young workers and(3) Prevention of occupational injury

porting(2) Pollution prevention and re-and illness

source reduction(3) Working hours(4) Industrial hygiene(3) Hazardous substances(4) Wages and benefits(5) Physically demanding work(4) Solid waste(5) Humane treatment(6) Machine safeguarding(5) Air emissions(6) Non-discrimination(7) Sanitation, food, and housing(6) Materials restrictions(7) Freedom of association(8) Health and safety communica-(7) Water management

student workerstion(8) Energy consumption and greenhouse gas emissions

4．Ethics

5．Information Security(1) Business integrity(1) Building of information management system(2) No improper advantage(2) Defense against threats on computers and networks(3) Disclosure of information(3) Management and protection of personal information(4) Intellectual property

and confidential information(5) Fair business, advertising and competition(6) Protection of identity and non-retaliation(7) Responsible sourcing of minerals

Established on April 2, 2009 / Revised on January 1, 2024

Nissha Sustainability Report 2024

21-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

21-2 Maintaining Purchasing Related
Rules

After the sweeping revision of our Purchasing Management
Regulations in 2021, we are currently working on formulating a
range of regulations that will form the subordinate documents,
with the aim of further unifying rules and improving control overpurchasing operations at each Group company. In particular, inorder to ensure compliance with laws and regulations such as
the Act against Delay in Payment of Subcontract Proceeds, etc.
to Subcontractors (hereinafter referred to as the “ Subcontractors
Act ”), and others that have become stricter in recent years, weformulated the Subcontractors Act, etc. Compliance Regulations,and are working to create internal rules and spread awareness ofcontent that we expect to see required by the law soon ahead oftime.
In addition, to ensure the content of these new regulations andrules are understood and put into practice, the Nissha Group asa whole will hold briefings that include comprehension testing,
and will check operational status using internal audits.
In Septemb er 2020, we est ablished and announced our
Declaration of Partnership Building as promoted by government
agencies such as the Cabinet Office, and are promoting activities
designed to build trust relationships with all of our suppliers andenhance mutual enterprise value.

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

21-3 Nissha Group Supply Chain
We at the Nissha Group collaborate with various suppliers
through our business activities, and our supply chain is expanding
globally. The global supply chain has been severely affected
recently by the pandemic, regional conflict, the sharp rise in
raw material and fuel prices due to dramatic foreign exchange
shifts, supply shortages and price hikes due to labor shortages,
as well as natural disasters. However, thanks to the cooperationof our suppliers, the Nissha Group is continuing sound businessactivities.

Main Entities of the Nissha Group Supply Chain

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

21-4 CSR Audit and Labor and Human
Rights Risk Survey■ CSR Audit
At the same time as accepting CSR audits from customers, theNissha Group carries out annual inspections using our own
unique Self Assessment Questionnaire (SAQ) so that we canascertain the status of suppliers as we build a safe, reliable supply
chain. The CSR auditing and Self Assessed Questionnaires (SAQ)
are based in our CSR Procurement Guidelines (21-1).
Carrying on from the previous year, in the fiscal year ended
December 2023 the Industrial Materials Business Unit andthe Devices Business Unit carried out surveys of 95 companies(73 existing suppliers, 22 new suppliers) in Europe and Asia,
including China, in addition to Japan. The results showed nopoints of concern.
We will continue to conduct these surveys, and if any concerns
are identified in the SAQ responses, Nissha employees qualified
as internal auditors will act in accordance with the procedures
such as visiting suppliers and conducting on-site audits.

■ Labor and Human Rights Risk Survey
In the fiscal year ended December 2023, the ESG Task Force*
took the lead in conducting a survey on labor and human rights.
The sur vey targeted suppliers that meet the following two
criteria.
(1) Located in areas of high labor and human rights risk (ILO
Standard: China, Southeast Asia, etc.).
(2) Top 80% of purchase value per base or there is no alternative
procurement source.

The survey found no points of concern at any of the targeted

Nissha Sustainability Report 2024

21-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

suppliers (131 companies). Additionally, we conducted onsite audits for nine of these companies. We followed up on theissues identified during the on-site audits and confirmed thecompletion of corrective actions. The specific countries andnumber of targeted companies of our suppliers are as follows.
• China, 4 companies• Malaysia, 2 companies• Mexico, 2 companies• Brazil, 1 company

In the fiscal year ending December 2024, we will continue thissurvey and conduct on-site audits of suppliers that we deem
particularly necessary in order to reduce risk in our transactions.
* The ESG task force is set up under the umbrella of the Sustainability Committee onthemes considered particularly important from an ESG perspective, and responsible foraccelerating the respective activities.

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

21-5 Development of Procurement
Personnel

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Datatraining system (mechanism) in a plan to improve the level ofeach and every employee.

Focusing its efforts on training procurement personnel, theNissha Group in Japan has continued to provide the basic
procurement education and procurement training by external
instructors since the fiscal year ended March 2009. To date,more than 1,000 employees have taken these courses.
In the fiscal year ended December 2023, we carried out
e-Learning on basic matters of the Subcontractors Act andrevisions to operating standards related to beating down prices.
These targeted not only the procurement and sourcing division
but also departments related to procurement, such as technicaland development departments. All 329 targeted personnel
completed the training.
In addition, 448 people took the basic procurement education
course, which incorporates laws, regulations, and contract items
related to procurement and internal rules such as our Purchasing
Principles and Purchasing Management Regulations. Follow-ups
were also done after testing comprehension of the training, suchas re-training and re-testing of those who were deemed in needof re-training.
Training was also held for overseas Group companies, and in thefiscal year ended December 2023, basic procurement education
was given to a total of 84 people in 6 overseas Group companies
in Europe and North America, and 5 overseas Group companies
in Asia outside China. This training will be expanded to otherGroup companies in future, and standardized between sites.
We are currently moving ahead with a plan to implement training
globally to help reinforce procurement departments and improve
procurement skills. We are studying the use of skill maps topromote visualization of work skills and the construction of a

Nissha Sustainability Report 2024

21-3

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

22. Along with Local Communities
22-1 Policy

22-2 Initiatives

Along with aiming to “realize the enrichment of peopleʼs lives” our Mission calls for through our business activities, the Nissha Group engages in social contribution by clarifying key activity areas.

The Nissha Group are expanding our business globally. We promote activities that meet the needs ofour stakeholders through communication with them in each region.
As a company with its headquarters in Kyoto, Nissha Co., Ltd., engaged in the following activities in
the fiscal year ended December 2023.

Social Contribution Policy

Environment / support for future generation

Nissha and Nissha People contribute widely to society to realize the enrichment of peopleʼs lives professedin our Mission by resolving social issues through our businesses and supporting the fields listed below.
Main fields of our support:

Environment
Arts and Culture
Medical and wellness
Junya Suzuki
Chairman of the Board
President and CEO
Nissha Co., Ltd.
Established on March 6, 2009 / Revised on June 1, 2022

・Participated in the activities for environmental workshops at ele-mentary schools organized by the Kyoto Chamber of Commerce
Employees visited elementary schools in Kyoto City to carryout environmental workshops. The workshops gave children
the opportunity to think about environmental issues such as
global warming and plastic waste, introduced our initiatives
for reducing environmental impact and sustainable materials,
and explained how the company is taking on social issues.
Workshop at: Kyoto Municipal Yousei Elementary School on September 6, 2023
Kyoto Municipal Kotoku Elementary School on September 26, 2023
Support for future generation
・Introduced our business as part of social studies courses

Our Kyoto Global Headquarters received requests from local
elementary schools, and dispatched staff to talk about ourbusiness and a factory as part of the schools ʼ social studies
courses. The classrooms and factory were linked online on theday, so the children and the factory workers could interact.

Nissha Sustainability Report 2024

22-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

・Participated in Childrenʼs Monodzukuri Project run by the Kyoto City Board of Education

Exhibited a corporate booth at the Kyoto Monodzukuri Hall of Fame, Kyoto City Inquiry Learning Center for Career Education (Kamigyo-ku, Kyoto) held by the BOE. In addition, we provided
teaching materials for about 1,100 people to use in the Workshop Class hands-on study program for manufacturing that the Hall runs for elementary school children.
Promotion and support of arts and culture
・Sponsorship of arts and crafts exhibitions

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

・Support for the areas and people affected by the 2024 Noto Peninsula Earthquake

In January 2024, we donated 10 million yen (5 million yen each from Nissha Co., Ltd. and Nissha
Precision and Technologies, Inc.) to support the victims of the Noto Peninsula Earthquake and tohelp with reconstruction in the affected areas.
Donation made through: Japan Platform*, a non-profit organization* Emergency humanitarian assistance framework established in 2000 as an intermediary support organization to support theactivities of NGOs. Japan Platforms works to deliver aid from Japan quickly and effectively to victims of natural disasters inJapan and abroad, refugees and internally displaced persons due to conflicts.

We sponsor exhibitions and art displays in Japan.
Special Exhibition: Visionaries: Making Another Perspective (Kyoto City KYOCERA Museum ofArt)

22-3 Membership in Community Organizations (Nissha)

Henri Mattise: The Path to Color (Tokyo Metropolitan Art Museum)Nissha participate in various activities in the region.

Special Exhibition: Ancient Mexico: Maya, Aztec, and Teotihuacan (Tokyo National Museum,
Kyushu National Museum, National Museum of Art, Osaka)Special Exhibition: Numinous Minamiyamashiro Treasures from the Mountains between Naraand Kyoto (Nara National Museum)
Claude Monet: Journey to Series Paintings (Ueno Royal Museum, Nakanoshima Museum of Art,
Osaka)KYOTO GRAPHIE international photography festival 2023 (The Museum of Kyoto and othervenues in Kyoto City)・Participation as a museum partner

Kyoto National Museum (Higashiyama-ku, Kyoto)
Humanitarian Assistance・Support for the areas and people affected by the 2023 Turkey-Syria Earthquake

In February 2023, we donated 3 million yen to support the victims of the 2023 Turkey-Syria
Earthquake and to help with reconstruction in the affected areas.

Organization / host

Position / membership status

Company
registered

Kyoto Association of Corporate Executives

Special secretary

NisshaKyoto Chamber of Commerce and Industry

Permanent member

NisshaKyoto Employersʼ Association

Councilor

NisshaKyoto Industrial Association

Director

NisshaKyoto Institute of Technology

Joint management council member

NisshaKyoto City University of Arts

Management advisory board member

NisshaRitsumeikan University Business School

Education Curriculum Council Member

NisshaKyoto Institute of Invention and Innovation

President

NisshaNISSHA FOUNDATION

Representative Director

NisshaDonation made through: Japan Platform*, a non-profit organization

Nissha Sustainability Report 2024

22-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

23. Quality Management
We need to expand the provision of products and services aimed at the medical and mobility markets, priority markets for us, to achieve our sustainability vision. The quality of these products andservices has a high likelihood of influencing the life and health of people, so require sophisticatedquality management. To achieve this, it is essential that we not only operate systems that can beapplied globally in line with the various target markets, but develop human resources with the mindsets, knowledge, and skills that can adapt to these.

Quality Policy
Nissha Groupʼs products and services enhance value for customers and society through the establishment
and operation of quality management system that is designed to ensure quality, cost, robust supply chains,and compliance with relevant laws and regulations.
Junya Suzuki
Chairman of the Board
President and CEO
Nissha Co., Ltd.

The Nissha Group has identified the “responsible provision of products and services” as a materiality
and address the issue by setting KPIs and action items.

Strategy Items• Maintain and expand quality management system in accordance with business strategy• Building quality with an emphasis on product safety and feasibility at the design stage,
operation of per-product design reviews and increasing their level• Fostering and improving the quality mindset (Implementation of function-based training)

KPIs and Action
Items (FY2024)

Nissha Quality Way
1. CUSTOMER FOCUS

Number ofserious quality
incidents: 0

We continuously achieve customer-defined quality.
2. LEADERSHIP
We are all committed to upholding and executing our Quality Policy – each and every one of us is a leader.
3. PROCESS APPROACH
We work based on systematic approach and continue to improve.

23-1 Policy / Nissha Quality Way

4. QUALITY BY DESIGN
We build quality into design, focusing on product safety and feasibility.
5. VALIDATED DECISION MAKINGIn April 2022, along with a revision of our Quality Policy, we established the Nissha Quality Way as acode and standard of conduct necessary to actualize the Quality Policy. These are our fundamental
philosophies for quality in the Nissha Group and the upper level policies for all the quality policies
currently featured in the Quality Management System (QMS).
The Chief Quality and Production Officer (CQPO) carries out plant assessments for all our production
bases in Japan and major overseas production bases. Additionally, he uses an array of opportunities
to spread and percolate our Quality Policy and the Nissha Quality Way, including training at foreign
bases, training targeting new employees and promoted employees, and inclusion in internal company publications (published in Japanese, English, and Chinese).

Nissha Sustainability Report 2024

We are established in evidence-based and scientific approach.
6. QUALITY BY CONNECTED SUPPLY CHAIN
Quality is at the core of our trusting relationship within our supply chain.
7. BAD NEWS FIRSTWe quickly address challenges through rapid response and escalation process.
Yutaka Nishimoto
Director of the Board, Executive Vice President, Chief Quality and Production Officer
Nissha Co., Ltd.
Established on April 1, 2011 / Revised on April 1, 2022

23-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement23-2 Quality Slogan

23-3 Quality Management System (QMS)

For the quality improvement, it is essential to take actions witha strong awareness of customers. Across the entire the Nissha
Group, every single employee is required to be responsible for
their daily work and to constantly improve quality. To actualize
that, it is necessary for each employee to work with “passion” andto consolidate the “wisdom” and ingenuity” of all employees.

Out of our belief that the systematization of work is important,
the Nissha Group constructs our quality management systems
to align with their target markets. We also create quality targets
that conform with quality policies as well as planning to meetthose targets. This is employed in the process of cycling through
PDCA and in our quest to actualize target performance.

Following our Quality Policy revision and the establishment of the
Nissha Quality Way, we revised our quality slogan in April 2022.
The slogan shows that the protagonist who creates quality is"me", that is, all employees working in our group. Just as in our
Quality Policy and the Nissha Quality Way, we are spreading andpermeating this slogan throughout all Nissha Group companies
both in and outside Japan.

In addition to creating, implementing, and continually improving quality control systems based in the international ISO9001(2015 version), we are steadily constructing quality assurance
systems individually aligned with medical, mobility, and sustainable materials designated as the priority markets in our Sustainability Vision (long-term vision) for where we want to be in 2030.

“Quality”

Quality by Everyone, Everyday,with Passion
私は品質に責任を持つ
一人ひとりが情熱を持ち、全員参加で、品質を継続的に改善しよう！

In businesses oriented towards the medical market, we have acquired a first-class marketing license for medical devices, an operating permit required to manufacture and sell medical devices
within Japan. Affiliated companies Nissha FIS, Inc. and Nissha
Precision and Technologies, Inc. have also both registered asbusinesses manufacturing medical devices. Moreover, fourteen
Nissha Group bases have obtained ISO13485, the international
standard for quality management systems in the medical devices
industry (as of March 2024).
In businesses targeting the mobility market, eight Nissha Groupfactories and support sites, including Nissha Precision and Technologies, Inc. Himeji Factory (including the Kyoto site), which
manufactures touch sensor modules, have obtained IATF16949
certification for quality management systems in the automotive
industry (as of March 2024).

GRI Standards Content
Index / ESG Data

Governancemanagement, confirmation of compliance in internal audits(promises to customers, standards and regulations, and company
rules), and confirmation of QMS status in management reviews
and instructions for improvement. Through these operations, weare continuously improving the structure and performance of ourquality management systems.

Customerrequirements for QMS
Additional requirements
for medical devices

Common requirements
specific to the automobile industry

P

ISO9001

ISO9001

Quality management
system for automotive(IATF16949)

Quality management
system for medical devices(ISO13485)

Context of the organization(four clauses)
Leadership (five clauses)

D
Operation(eight clauses)

Plan (three clauses)

A

Improvement(three clauses)

C

Performance evaluation(three clauses)

Support (seven clauses)

Quality management system (ISO9001)

These quality management systems include quality performanceNissha Sustainability Report 2024

23-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

SocialThird Party
Verification

Environment

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

23-4 Two Strategies in the 8th Medium-term Business Plan

■ Quality and Added Value Creation at the Design and Development Stages

In the quality and production strategy, part of the 8th Medium-term Business Plan (2024-2026),
we are working on maximizing profit margins throughout the entire value chain through quality andadded value creation at the design and development stages, and the pursuit of lean operation at themass production stage.

This shows how it is important to build in quality at the design stage rather than at the prototyping
and production stages.

(Nissha Quality Way)High

Marketing (Customer Oriented)
Customer
Needs

DesignEngineering

Operation

Products
andServices

Design change freedom

80% certainty

Capabilities

Value Added

Efficiency

MarginQuality and Added Value Creation

Pursuit of Lean Operation

Nissha Quality Way

Nissha Operational Excellence

Low
Planning/Inquiry

Upstream

Nissha Sustainability Report 2024

Difficult to change design
once 80% certainty is reached

Quality/Cost certainty

Development/
Product design

Production process
designMass production

Downstream

23-3

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources■ The Pursuit of Lean Operation at the Mass Production Stage(Nissha Operational Excellence)
Nissha Operational Excellence is a principle to maximize profit margin. It expresses our commitment
to evolve globally by raising our capability / quality and will to maximize profit margin to a higher level, learning from sharing best practices among bases in addition to sustained continuous improvements at each base. Nissha Operational Excellence is universal to all our bases, departments, andfunctions regardless of location, and all teams within whole Nissha to embrace and practice it. The
idea is never about pushing the Global Headquarters or Japanese way of operations to other bases.
We use all bases that yield excellent results as role models.

Safety5S

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

23-5 Overall Optimization and Continuous Improvement
The Nissha Group sees linkages between departments and between company functions as process
linkages. As such, we promote the accurate identification of "input" and "output". We are aiming
for overall optimization by being aware of process connections and thoroughly implementing theimportance of division of roles within the company, and by having all employees stand from thecustomer's perspective. We believe that basic concepts like this and the sorting out of functions willbuild the foundation as a manufacturing company.
The accumulation of bits of insight and ingenuity from all employees is the source of great improvements in work processes. This approach forms the foundation of Nissha Groupʼs “small-group activities” and “improvement proposal system”. We believe this is extremely important as a manufacturing
company, and we are deepening this approach across the entire Nissha Group. Moreover, based on
the idea that employees are our most important management resource, we are actively engaging in
the development of human resources, such as through the continuous planning and implementation of a range of education. Through these activities, we are implanting the concepts of (1) always
interweaving ingenuity into your work, (2) judging based on data (facts), and (3) using the PDCA
(Plan, Do, Check, Act) Cycle to continuously improve, so that we can further improve our customers ʼsatisfaction. As specified in the “VALIDATED DECISION MAKING” in the Nissha Quality Way, we areconstantly pursuing improvement from a fact based, scientific approach.
Training

Practical education

There's a shield that symbolizes our strong focus on Safety. Nissha Group saying, "Not because I haveto, but because I want to," reflects our dedication to safety and keeping our employees healthy.

① General quality training (for new employees, promoted① Support for small-group activities

The logo features five gears that represent, which stand for sort, straighten, shine, standardize andsustain. Each gear signifies one of these principles, showing how they all work together to make thewhole system run smoothly.

②

TARGETSThe logo stands for our main targets: Quality, Cost, and Delivery.

KAIZENThe logo represents KAIZEN, the concept of continuous improvement. We used moving arrows toshow our dedication to always making processes better.

*The Corporate Marketing and Communications team of Nissha Medical Technologies proposed Nissha Operational Excellence in order topresent the Plant Management Overview in an easy-to-understand way and to spread awareness of this.

Nissha Sustainability Report 2024

③
④
⑤

⑥

employees, new managerial staff, managers, and overseas assignees)
Priority markets skill training
Management system training (ISO9001, IATF16949,
core tools, internal quality auditor)
Quality control training (QC Exam levels 3 and 4, QC
Seven Tools, New QC Seven Tools, basic statistics)
Quality methodology training (statistical methods,
experimental design, Taguchi methods, reliability engineering, etc.)
Digital Transformation training (AI, statistical processing,
Python, etc.）② Support for Digital Transformation activities

Information sharing① Company-wide Presentation Meeting of Small-group Activities② Presentation Meeting of Digital Transformation ac-

tivities③ Utilize the company intranet to inform all Nissha

Group employees on improvement content including small-group activity, improvement proposals,
Digital Transformation activity, and automatization
examples23-4

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

23-6 Quality and Safety of Products
Information on product handling and safety is clearly stated in thedelivery specifications, etc. to customers. In the unlikely event thatan incident involving a defect in our products or services leads toa violation of laws and regulations or a serious accident related toquality assurance, we will respond in accordance with our Regulations for Responding to Serious Quality Incidents and work to resolve the situation as soon as possible. In addition to providing appropriate reports to government agencies in accordance with thelaw, we have a system in place to inform customers of any necessary information as quickly as possible. Employees are made awareof the importance of ensuring product quality and safety throughcorporate ethics and compliance training and other programs. As
stated in "BAD NEWS FIRST" in the Nissha Quality Way, we thinkthat when a problem occurs, prompt escalation and early response
is an opportunity to strengthen trust from all of our stakeholders,
including customers.
The evaluation of our product quality is determined by our customers. The Nissha Group indexes and manages quality performance with factors including quality defects and delivery
disappointments communicated by customers as a "customer
satisfaction level" index.
In the fiscal year ended December 2023, there were no serious
quality incidents or violations (no fines), as defined in the Regulations for Responding to Serious Quality Incidents. We will continue
striving to maintain the number of serious quality incidents andviolations at zero.

Nissha Sustainability Report 2024

23-5

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

24. Efficiency and Productivity Improvement24-1 Approach

Contents

The Nissha Group includes efficiency and productivity improvement as a materiality. By enhancing
these through the use of digital technologies, we can not only strengthen our own competitiveness,but provide value to our customers and contribute to solving social issues. Initiatives to improve efficiency and productivity are a vital part of our Mission: “creating technology and developing it into
economic and social value ” The Nissha Group aims to create sustained growth and social value
through the use of digital technologies.
Strategy Items

STEP2
STEP3

Cost (input)
reduction

Increase productivity through the digitization of internal business processes.
Resources secured through this to be reinvested into high-value-added
operations.

Added value

Extend digitization to the entire organization to increase the added value we(output) increaseprovide to our customers by leveraging accumulated data.

New added value

Contribute to the creation of new added value and the resolution of social(output) creation

issues by utilizing accumulated data and know-how and digital technology.

KPIs and Action Items (FY2026)• Expand data-based decision-making mechanisms

Improve efficiency and

STEP1

Examples of initiatives• Reduce working hours through the introduction of productivity

productivity by digitalization

enhancement tools at overseas subsidiaries: 20,000 hours / yearof value creation processes(compared to 2023)*

Currently, society is experiencing unprecedented and rapid changes thanks to digital technology. DX
is not just digitalization; it requires transforming internal processes as well. We are reforming not justproduction but all internal processes through going digital. To move ahead with these changes andreforms, we consider human resources are the most important thing, so are focusing efforts on employee training.

• Reduce working hours for non-routine tasks by using generative AI* Working hours before introducing automatization and efficiency tools (A) - Working hours after introducing tools (B) = Hours reduction per task (C)(C) × Annual work frequency = Annual hours reduction

24-2 Initiatives Through FY2023

We are gradually moving ahead with DX in the following three steps, and working to develop the environment and human resources to support it. In particular, Step 1, Cost reduction, and Step 2, Added value
increase, are linked with improving efficiency and productivity.

The Nissha Group is both moving ahead with the digitalization of its production bases as well as the digitization of the departments responsible for indirect operations.
In the fiscal year ended December 2023, the following results were achieved in the digitalization of indirect
operations.
• Image-based stamps using images or diagrams were completely abolished, all approval processes weresystematized, and governance strengthened.
• Storage of documents related to product design was systematized, strengthening Nisshaʼs asset safety.
Projects to promote DX (DX projects) also had notable results.
• A system was developed to use AI to assess the content and output simple estimates from past

Nissha Sustainability Report 2024

24-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

design information when designing a new product.
• Visual control was brought in for the operational status ofequipment in Nissha Group production bases around theworld.
• Performance forecast and planning was systematized (simulations of planned values, calculations of optimal values).
• System log data was analyzed to optimize all work processes.
Additionally, as a method of productivity improvement in desk
work arenas, we introduced features including RPA (Robotic Process Automation), an electronic approval system, and AI-powered chatbot functionality. We also saw results from automating
and streamlining work through enlarging the scope of systemapplication by interweaving multiple systems so as to transcend
the discrete effects gained by using each individual system alone.
RPA in particular has seen impressive results: since its full scale
implementation in 2019 to the end of 2023, an approximate
84,000 hours of work time per year was automatized andstreamlined.
In addition, employee training included content related to data
science such as statistics or the creation of AI/machine learningmodels using Python. Training also focused on the business process of creating workflow diagrams, as well as on thinking abilities such as logic. Awareness of the convenience and usefulnessof training that uses online platforms has gradually penetrated,
and a corporate environment has evolved where even employees
themselves will actively learn.

Nissha Sustainability Report 2024

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement24-3 Initiatives for FY2024 and beyond
In the fiscal year ending December 2024 we are creating systems
for sustained growth such as pushing ahead with Group-wide
digitalization, promoting customer satisfaction, and boosting ourcompetitiveness as ways to improve efficiency and productivity.
Digitalization means we can expect improvements in the quality ofthe products and services we provide to our customers. It will also
lead to improvements in customer satisfaction through prompt
and accurate provision thanks to automated processes.
- Digitalization and automatization of processes

Governance

GRI Standards Content
Index / ESG Datamize work processes, increasing productivity.
In a labor market that is getting tougher on a daily basis, it isgetting harder to secure human resources with advanced digitaltechnology skills in particular. Nissha aims to develop 100 “humanresources who can promote DX through their own abilities ” over
the three-year period from 2024 to 2026 in order to ensure sustained growth. We are carrying out the following human resources
development strategies in order to achieve this goal.
- Enriching training programs
We are improving our training contents through the provision ofteaching materials and analysis of questionnaire results based on
a comprehensive partnership agreement with Shiga University.
We dispatch employees to Shiga Universityʼs Graduate School ofData Science, promoting the training of human resources who
can create value from data.

We will analyze existing work processes and move ahead withdigitalization and automatization. We will utilize technologies
such as workflow management systems and RPA (Robotic Process Automation) to try to improve work efficiency. For example,
automating billing processing or report creation will increase theamount of work that can be done without direct employee engagement, allowing for increased productivity. In the fiscal year
ending December 2024, we plan to focus on expanding them toour overseas subsidiaries.

- Spreading DX literacy- Strengthen data utilization and improve analysis processes- Providing opportunities for practice

We will move further ahead with the utilization of our accumulated data, and strengthen systems such as visualization andanalysis that lead to better productivity and product quality. We
will use big data and AI to strengthen our collection and analysis of work-related data and to encourage data-driven decision-making, we will bring in technologies such as visualization
tools like management dashboards and digital twins that allow
simulations in virtual space. Through visualization of information
and rapid analysis, we can propose effective measures and opti-

We hold workshops that focus on particular issues as a way toprovide opportunities to put learned knowledge and skills into
practice, working to revitalize our DX projects.

We spread DX literacy among all Group employees throughevents themed around IT and DX. We also use in-house training
and online education platforms, establishing a curriculum to promote the development of human resources who will promote DX.

It is vital to ensure and foster the right people for digital transformation. To grow sustainably while responding to labor market
changes, there are three key pillars: enrich solid training programs,
spread DX literacy, and provide opportunities for practice. Nissha
will strive to achieve our targets through these initiatives.

24-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

GRI Standards Content
Index / ESG Data

Governance

25. Corporate Governance25-1 Basic Approach to Corporate Governance25-2 Overview of Corporate GovernanceNissha, since its foundation, has been executing strategies that promptly address external challenges, under committed leadership. The Company believes that strengthening corporate governancealong with such leadership will promote agile and decisive decision making, as well as ensuring management transparency and fairness.

We have established a corporate governance structure as shown in the figure below (as of January 1, 2024).
Shareholders' Meeting

Based on this recognition, the Company places corporate governance as one of the key management issues, strives to maintain and improve it, and seek out sustainable corporate growth and anincrease in corporate value over the medium- to long-term. In an effort to clarify the Nissha Groupʼsbasic approach to and policy for implementing corporate governance, we established a Corporate
Governance Policy.

Appointment / Dismissal
Cooperation
Monitoring* For further information, please follow the link below.
About ＞ Corporate GovernanceCorporate Governance Policy（PDF）

Audit and Supervisory Board:
4 Audit and Supervisory
Board Members

Audit(including 2 Independent Audit
and Supervisory Board Members)

Audit andSupervisory
Board Member's
OfficeAccounting Auditor

Cooperation

Appointment / Dismissal

Audit
Cooperation

Appointment / Dismissal

Board Of Directors:
9 Directors

Inquiry(including 4 Independent
Outside Directorsof the Board)

Chairman of the Board,
President and CEO

ReportNomination andCompensation
Committee

Management Meetings
Investment Committee

Internal Audit
Disclosure Control Committee
Sustainability Committee
ESG task force

Business Review

Risk Management and Compliance Committee
Accounting
Audit

Regional Collaboration Committee（RCC）

Corporate Officers

Business Unit / Corporate Administration/ Subsidiaries and others

Nissha Philosophy (Mission・Shared Values)

Nissha Sustainability Report 2024

25-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

We make major business judgments and oversees the executionof the duties of the Directors of the Board at meetings of theBoard of Directors, and as a company with an Audit and Supervisory Board, will strive to maintain and improve the oversight andchecking functions by Audit and Supervisory Board Members andan Audit and Supervisory Board which are independent from theBoard of Directors. We adopt a corporate officer system in aneffort to clarify the powers and authority in the speedy decision
making and the implementation of decisions, under which theBoard of Directors will be in charge of the formulation of strategies and business oversight, and the Corporate Officers will be incharge of the execution of business.
The President chairs the following meetings toward appropriate
and efficient business execution.
Management Meeting
Comprises Inside Directors of the Board as core members. Deliberates on matters relating to the direction of important managerial issues within the scope of the Presidentʼs authority.
Investment Committee
Ensures discipline in investment decisions by discussing thestrategic rationale for investments and the appropriateness ofinvestment recovery plans prior to submitting particularly important investment matters to the Board of Directors, and bymonitoring investments after they are made once every quarter.
Business Review
A committee for each business division made up of Internal
Directors and management from the business division (such as
Corporate Officers). It checks business strategies every monthor every quarter based on the KPIs and considers the actions totake in the short term. Along with monitoring work execution
by the Corporate Officers, it is designed to respond quickly tochanges in the business environment.

Nissha Sustainability Report 2024

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

We also have in place the following organizations in order to enhance the management monitoring function, ensure that business execution complies with laws and regulations as well as our
Articles of Incorporation, and to manage risks.
Sustainability Committee
Chaired by the president and CEO and vice-chaired by the
Senior Executive Vice President (ESG promotion). The Sustainability Committee is made up of business organizations and responsible departments, as well as the ESG Task Force. Based on
the Sustainability Vision, it collaborates to work on the themesof creating business opportunities, risk reduction, strengthening
management foundation and corporate governance. The ESG
Task Force was established to address issues that are considered to be particularly important from an ESG perspective, andis promoting these respective activities.
Risk Management and Compliance Committee
This committee is chaired by the Director of the Board, Senior
Executive Vice President, Legal Affairs. The Risk Management
and Compliance Committee centrally manages risks that would
hamper business activity continuance (risks related to businessstrategies and business content, risks related to finance, and risks
that encompass the entire Group). It liaises with committees anddepartments that manage risks to prioritize them from a Groupwide, cross-cutting perspective and control them appropriately.
Disclosure Control Committee
Chaired by the President. Discusses the necessity of timely disclosure of corporate information and the contents of disclosure.
Internal Audit Office
Under the direct control of the President, audits the internal
control systems of the Nissha Group, analyzes and evaluates
their status of establishment and operation, and offers suggestions for improvement.

Governance
Quality Management / Efficiency
and Productivity Improvement

25-3

Governance

GRI Standards Content
Index / ESG Data

Directors of the Board andthe Board of Directors■ Policy and Procedures for Appointment/

Dismissal of Directors of the Board
The Board of Directors of Nissha is comprised of an appropriate
number of Directors, up to twelve. The selection of Directors is donewith respect to the diversity and balance of skills that the Board
requires. In addition, Independent Outside Directors of the Board
comprise at least one third of the Board, and these Independent
Outside Directors are those who satisfy the "Standards for Independence of Independent Officers” set out by the Board of Directors.
In the event that a Director of the Board damages the trust or honorof the company, markedly diminishes our corporate value, or gives
rise to grounds that he or she is unfit to perform his or her duties,
the Board of Directors confirms the presence of a valid reason andmakes the Director of the Board subject to a proposal for dismissal.
To ensure clarity in management responsibilities for each fiscal year,
the term of office of Directors of the Board is set at one year.
Having received reporting from the Nomination and Compensation Committee, based on the policy above, the Board of Directors makes decisions on proposals for the appointment/dismissalof a Director of the Board to be deliberated at the general meeting of shareholders.
* For further information, please follow the link below.
About ＞ Corporate GovernanceStandards for Independence of Independent Officers (PDF)

25-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources■ The skill set necessary for the Board of Directors, and the values, experiences, andGovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

Values, Experiences, and Skills (Shares Among Directors)

skills in common required for all Directors
We require all Directors to share certain values, experiences, and skills to make important management
decisions, exercise high levels of effectiveness in supervising the execution of the Companyʼs business, andcontribute to the enhancement of our corporate value. Moreover, we consider the optimal and balanced
distribution of skills (experience and knowledge) among the Board of Directors in those fields that are necessary based on our management strategy to be key for the Board. In addition, those fields will change as
the business environment changes.

GlobalDirectors must have experience in overseas management or other experience andknowledge to recognize management issues from a broad perspective to accelerate
global business development

Finance

Directors must have experience and knowledge in finance to improve the profitability
and capital efficiency of the business as well as to secure a stable financial base to increase corporate value over the medium to long term

Where we want to be by 2030 is presented in the form of our Sustainability Vision (long-term vision for2030). In addition, we have established a medium-term strategy reflecting our Sustainability Vision for2030, and formulated strategies to take us there in the form of three-year medium-term business plans.
To achieve these plans, the Company considers the skills (experience and knowledge) in the fields indicated on the right of particular importance for the Board of Directors.

Changes and Discontinuous Growth

Directors must be able to take appropriate risks and branch out into new areas without
being bound by preconceived notions to adaptively cope with changes in the businessenvironment and ensure the survival and development of the businessLong-Term Strategic
Orientation

Directors must have the ability to develop long-term visions and backcasts to formulate
strategies aimed at growth through the reorganization of our business portfolio

Communication Skills

Directors must have the ability to ensure mutual understanding and respect throughcommunication to build trust with stakeholders

The following skills matrix illustrates our approach to the values, experience, and skills required of all Directors,
as well as the distribution of skills (experience and knowledge) necessary for the Board of Directors as a whole.

Skills Matrix (Board of Directors)
Term

Age

Areas of particular specialty for each Director*Outside Directors

Career at other companies*Inside Directors

Corporate
management

Independence

Experience inpriority markets

Business development,
M&A

Marketing

〇

〇

〇

〇

Junya Suzuki

24 years 9 months

50s

―

〇

〇

〇

〇

Daisuke Inoue

6 years

50s

―

〇

〇

Wataru Watanabe

6 years

50s

―

〇

〇

Yutaka Nishimoto

3 years

50s

―

〇

〇

〇

〇

Production,
Technology, Quality〇

Legal,
Risk management〇〇

Hisashi Iso

3 years

50s―

Kazuhito Osugi

7 years 9months

70s

〇

―

〇

Kazumichi Matsuki

5 years

70s

〇

―

〇

Juichi Takeuchi

2 years

60s

〇

―

〇

〇

〇

Yukiko Hashitera

―

50s

〇

―

〇

〇

〇

〇

〇

〇

〇
〇
〇

*Term and age are at the conclusion of the ordinary general meeting of shareholders in March 22, 2024
*The above fields are those where Directors can particularly exercise their specialties based on the experiences, etc., of each member of the Board. It does not show all the experiences, knowledge, or skills possessed by each Director.

Nissha Sustainability Report 2024

25-3

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

As of March 22, 2024, four of the Company's nine Directors of
the Board are Independent Outside Directors and one is a female.
In addition, all four Independent Outside Directors of the Board
have been designated as independent directors, based on the
judgment that they meet the criteria for independence stipulatedby the stock exchange and that there are no conflict of interest
risks between them and general shareholders.

■ Role of the Board of Directors
Our Board of Directors convenes for regular meetings once amonth and for extraordinary meetings as needed. The meetings
are chaired by the President.
The Board of Directors is responsible for formulating strategies
and supervising. Along with making decisions in accordance with
the Board of Directors Regulations regarding matters requiring adecision by the Board of Directors in accordance with the provisions of laws, regulations, and articles of incorporation, and on
key matters for business management, it also supervises the workof Directors and Corporate Officers.
In order to ensure flexibility and expertise in business judgements, we have in place a system in which matters to be resolved
at the general meeting of shareholders, such as distribution of
surpluses and acquisition of treasury stock, can be decided by the
Board of Directors.
We confirm an investigation into the existence of any transactions between the Company and related parties such as the
Directors of the Board and Audit & Supervisory Board Members,
Corporate Officers, and their relatives, and if any material facts
exist, they will be resolved by the Board of Directors, which will
make a decision after duly deliberating the reasonableness ofthe transaction. In addition, we must obtain the approval of the

Nissha Sustainability Report 2024

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

Board of Directors when engaging in conflict of interest transactions as prescribed by laws and regulations with the Directors of
the Board.

Supervisory Board Members, the secretariat of the Board of Directors creates an annual schedule of board meetings and notifies members in advance.

■ Initiatives to Enhance the Content of Discussions■ Evaluation of Effectiveness of the Board of Directors

Our Board of Directors meetings involve brisk, substantive discussions. Independent Outside Directors of the Board draw on deep
insight into their respective fields of specialty to provide accurate
advice and opinions, contributing to the enhancement of bothmanagement transparency and the Boardʼs oversight functions.

Since April 2016, our Board of Directors has been working on
continuous improvements to enhance the effectiveness of corporate governance by conducting an annual analysis and evaluation of the composition and operation of the Board of Directors
in the previous year.

To improve the quality of discussions among the Board of Directors, and to enhance its roles of strategy formation and supervision, Nissha sends the minutes and related materials for
the Board of Directors meetings ahead of time, and in addition,holds preliminary briefings focused on key agenda items for Independent Outside Directors of the Board and Independent Outside
Audit and Supervisory Board Members. Also, in order to ensure
full discussion, key agenda items such as the Medium-term
Business Plan and corporate acquisitions above a certain size are
discussed multiple times as reporting items before being put on
the agenda for resolution. By allocating time for explanations
and deliberation of agenda items based on their importance andnature, meetings can be conducted more thoroughly and efficiently.

For the Board of Directors meetings held in the fiscal year ended
December 2023, we conducted a questionnaire on the evaluation of the effectiveness of the Board of Directors and third-party
interviews from December 2023 to January 2024, and the Boardof Directors analyzed and evaluated the results at its meetingin February 2024. An outline of the results was disclosed in the
Corporate Governance Report submitted to the Tokyo Stock Exchange at the end of March 2024.

Furthermore, in order to further improve the monitoring functionof the Board of Directors, the management status of acquired
corporations above a certain size is regularly reported directly at
the Board of Directors meetings by local managers. The Board of
Directors meeting confirms the details and makes any necessary
points regarding them.
To secure attendance by Directors of the Board and Audit and25-4

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

Reasons for Appointment and Board of Directors Meeting Attendances in FY ended December 2023

Name

Junya
Suzuki

Daisuke
Inoue

WataruWatanabe

YutakaNishimotoHisashi Iso

Reason for appointment

Attendance atmeetings ofthe Board of
Directors

Mr. Junya Suzuki has duly performed his duties as Chairman of the Board, President and CEO, such asdecision-making on important managerial issues and the supervision of the execution of operations.
He has also committed to management from medium- to long-term perspectives and has shownstrong leadership and decisiveness toward the realization of the Nissha Groupʼs Mission since he assumed office as Chairman of the Board, President and CEO in 2007. We appointed him as a Directorof the Board because we believe that he is an appropriate talented person who will continue to carryout sound growth strategies for the Company and supervise the execution of operations.

100％(18/18
meetings)

Mr. Daisuke Inoue has duly performed his duties as a Director of the Board, such as decision-making
on important managerial issues and the supervision of the execution of operations. In addition, heassumes responsibility for business management as Senior Executive Vice President and General
Manager of Devices Business Unit, working to establish and implement marketing-based strategies
for winning new orders while showing strong leadership from the perspective of the Nissha Group asa whole as an executive responsible for General Affairs and Legal Affairs. We appointed him as a Director of the Board because we believe that he is an appropriate talented person who will continue tocarry out sound growth strategies for the Company and supervise the execution of operations.

100％(18/18
meetings)

Mr. Wataru Watanabe has duly performed his duties as a Director of the Board, such as decision-making on important managerial issues and the supervision of the execution of operations. As
well as drawing up and promoting medium-term business plans as Senior Executive Vice President
and Chief Strategy Officer, he shows strong leadership in accelerating the reorganization of the business portfolio of the Company and expanding business performance by creating new businesses as
Senior Director of New Business Development Office. We appointed him as a Director of the Board
because we believe that he is an appropriate talented person who will continue to carry out soundgrowth strategies for the Company and supervise the execution of operations.

100％(18/18
meetings)

Mr. Yutaka Nishimoto has duly performed his duties as a Director of the Board, such as decision-making on important managerial issues and the supervision of the execution of operations. As
Executive Vice President and Chief Quality and Production Officer, he is working to establish a comprehensive quality assurance system and to design and implement the optimum deployment of production capacity in accordance with our business strategy from the perspective of the Nissha Group
as a whole. At the same time, he shows strong leadership in putting in place an efficient and costadvantageous logistics system from a global point of view as an executive responsible for Corporate
Logistics. We appointed him as a Director of the Board because we believe that he is an appropriate
talented person who will continue to carry out sound growth strategies for the Company and supervise the execution of operations.
Mr. Hisashi Iso has duly performed his duties as a Director of the Board, such as decision-making
on important managerial issues and the supervision of the execution of operations. He assumes responsibility for business management as Executive Vice President and General Manager of Industrial
Materials Business Unit, working to establish and implement marketing-based strategies for winningnew orders while showing strong leadership in putting in place an efficient and cost advantageous
procurement system from a global point of view as an executive responsible for Corporate Supply
Chain. We appointed him as a Director of the Board because we believe that he is an appropriate talented person who will continue to carry out sound growth strategies for the Company and supervise
the execution of operations.

Nissha Sustainability Report 2024

Name

Reason for appointment

Attendance atmeetings of theBoard of Directors

Kazuhito
Osugi

Mr. Kazuhito Osugi has given valuable advice and opinions across the whole range of theCompanyʼs management, making the most of the deep insight in the field of finance hehas cultivated in the Bank of Japan over the years and broad experience fostered by participating in corporate management as an Independent Outside Director of the Boardfor the Company or other companies. Mr. Kazuhito Osugi has duly performed his duties,
such as the supervision of the execution of operations. We appointed him as an Independent Outside Director of the Board because we expect that he will continue to givehis valuable counsel and strive to enhance management supervisory functions from an
independent point of view across the whole range of the Companyʼs management.

100％(18/18
meetings)

Mr. Kazumichi Matsuki has given valuable advice and opinions across the whole rangeof the Companyʼs management, making the most of his hands-on experience in proactive and broad business development and deep insight concerning its governance as heassumed important posts regarding legal affairs and compliance at a company globally
Kazumichi developing business while participating in corporate management at manufacturers.
Mr. Kazumichi Matsuki has duly performed his duties, such as the supervision of the
Matsukiexecution of operations. We appointed him as an Independent Outside Director of theBoard because we expect that he will continue to give his valuable counsel and strive toenhance management supervisory functions from an independent point of view acrossthe whole range of the Companyʼs management.

100％(18/18
meetings)

JuichiTakeuchi

Mr. Juichi Takeuchi has given valuable advice and opinions across the whole range of
the Companyʼs management, making the most of his broad hands-on experience andextensive knowledge in the medical market, a priority market of the Company, as he has
been engaged in management strategies, alliances, sales and marketing in a medical
devices company, where he led its global strategies and assumed responsibility for its
overseas subsidiaries over the years. Mr. Juichi Takeuchi has duly performed his duties,
such as the supervision of the execution of operations. We appointed him as an Independent Outside Director of the Board because we expect that he will give his valuable
counsel and strive to enhance management supervisory functions from an independent
point of view across the whole range of the Companyʼs management.

100％(18/18
meetings)

YukikoHashitera

Ms. Yukiko Hashitera has experience in leading an IPO and corporate management as
Representative Director and President of a bio venture company after engaging in research and development in the pharmaceutical industry related to the medical market,
a priority market of the Company. Ms. Yukiko Hashitera also has broad hands-on experience and extensive knowledge in corporate management, innovations, and humanresources development gained by co-founding and serving as CEO of an incubator tocreate new businesses. We appointed her as an Independent Outside Director of theBoard because we expect that she will give her valuable counsel and strive to enhance
management supervisory functions from an independent point of view across the whole
range of the Company's management.

Appointed in
FY2024100％(18/18
meetings)

100％(18/18
meetings)

25-5

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Third Party
Verification

Environment

SocialHuman
RightsHuman
Resources

Major Items Discussed in the Board of Directors meeting in FY ended December 2023
Theme

Agenda‒ Interim review of the 7th Medium-term Business Plan and formula -tion of the 8th Medium-term Business Plan
Management strategy‒ Personnel matters concerning Directors of the Board and Audit andSupervisory Board Members/Corporate Officers‒ Compensation of Directors of the Board

Corporate measures

Quality Management / Efficiency
and Productivity Improvement（1）The appointment/dismissal standards for Directors of the Board and the appointment stan-dards for Audit & Supervisory Board Members（2）Proposals for candidates for Directors of the Board and Audit and Supervisory Board Members,

and proposals for dismissal of Directors of the Board（3）Proposals for the appointment/dismissal of the Chairman of the Board, titled directors, and the CEO（4）Matters related to the succession plan for the President（5）Policy on compensation of Directors of the Board

Investment projects‒ Preliminary deliberations related to corporate acquisitions

and monitoring‒ PMI of major overseas subsidiaries, management briefings by CEO‒ General meeting of shareholders‒ Evaluation of the effectiveness of the Board of Directors‒ IR and SR reporting‒ Presentations by corporate officers (business reports)

25-4 Nomination and Compensation Committee

GRI Standards Content
Index / ESG Data

With consultation from the Board of Directors, the Nomination and Compensation Committee deliberates on and provides a response regarding the following matters.

‒ Financing (including issuing bonds, borrowing, etc.)‒ Verification of the reasonableness of cross-shareholdings

Governance■ Role‒ Consideration of shareholder return measures‒ Activity reports of Sustainability Committee, ESG Task ForceOthersFair Operating Practices/ Local Communities

Governance（6）Compensation of Directors of the Board■ Membership (as of March 22, 2024)（1）Four independent members:

Kazuhito Osugi (Independent Outside Director of the Board and Committee Chair)
Kazumichi Matsuki (Independent Outside Director of the Board)
Juichi Takeuchi (Independent Outside Director of the Board)
Yukiko Hashitera (Independent Outside Director of the Board)（2）Two inside members:

Junya Suzuki (Chairman of the Board, President and CEO)
Wataru Watanabe (Director of the Board and Senior Executive Vice President)■ Nomination and Compensation Committee meetings held and attendance in FY■ Purpose

ended December 2023

We establish a Nomination and Compensation Committee as an advisory panel for the Board of Directors in order to ensure the objectiveness and fairness of the appointment/dismissal of Directors of
the Board and the appointment of Audit & Supervisory Board Members, and incorporate the knowledge of Independent Outside Directors of the Board, as well as the compensation of the Directors of
the Board. The chair and the majority of the members are selected from Independent Outside Directors of the Board.

During the fiscal year ended December 2023, there were four meetings of the Committee, and the attendance status of each member is described below.

Nissha Sustainability Report 2024

25-6

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Name

Environment

AttendanceSocialThird Party
Verification

Name

Human
RightsHuman
Resources

Attendance

Kazuhito Osugi

100%

4/4meetings

Juichi Takeuchi

100%

4/4meetings

Asli M. Colpan *100%

4/4meetings

Junya Suzuki

100%

4/4meetings

Kazumichi Matsuki

100%

4/4meetings

Wataru Watanabe

100%

4/4meetings*As of March 22, 2024, Ms. Asli M. Colpan stepped down from the Nomination and Remuneration Committee, and Ms. Yukiko Hashitera wasnewly appointed to the same committee.

■ Major Items Discussed by the Nomination and Compensation Committee in FY

ended December 2023
‒ Composition and candidates for Directors of the Board and Audit and Supervisory Board Members‒ Chairman of the Board, Titled Directors, and the CEO‒ Remuneration for Directors towards the 8th Medium-term Business Plan
‒ Amount of compensation of Directors of the Board

25-5

Audit and Supervisory Board Members and the Audit and Supervisory Board■ Policy and Procedure for Electing Auditors
Our Audit and Supervisory Board comprises an appropriate number of four or fewer members.
Inside Audit and Supervisory Board Members are elected for the wealth of experience required in
auditing. Independent Audit and Supervisory Board Members are elected from certified public accountants and attorneys with a focus on specialized knowledge in financial matters, accounting,and legal affairs, who satisfy the requirements of not only the Companies Act but also the standards
for independence of independent officers, established by our Board of Directors.
Having received reporting from the Nomination and Compensation Committee, and with prior approval of the Audit and Supervisory Board, based on the policy above, the Board of Directors makes
decisions on proposals for the appointment of Audit and Supervisory Board Members to be deliber-

Nissha Sustainability Report 2024

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

ated at the general meeting of shareholders.
At present, our Board consists of four members, of which two are Full-time Audit and Supervisory
Board Members and two are Independent Audit and Supervisory Board Members. All two Independent Audit and Supervisory Board Members have been designated as independent officers, as theymeet the standards of independence established by the stock exchange and are judged not to have aconflict of interest with general shareholders.

■ Role of Audit and Supervisory Board Members and the Audit and Supervisory Board
Our Audit and Supervisory Board Members and Audit and Supervisory Board audit the execution of duties
by Directors, Members of the Board and Corporate Officers as stipulated by laws and regulations, ourArticles of Incorporation, and internal regulations, and make appropriate decisions from an independent,
objective standpoint on electing and dismissing accounting auditors and exercising their authority relating to audit fees, etc. Independent Audit and Supervisory Board Members draw on their highly specialized
knowledge as certified public accountants and attorneys to contribute to the maintenance and improvement of our corporate governance structure.
Our Audit and Supervisory Board determines the duties of Audit and Supervisory Board Members, theaudit structure, and the audit standards that describe the evaluation basis for audits and the action
guidelines. In accordance with these, the Board develops auditing policies and Nissha Group's Corporate
Governance auditing plans.
In compliance with the above, Audit and Supervisory Board Members attend Board of Directorsʼ meetingsand other important meetings, review approval documents and other important documents, perform
visiting audits at major offices and affiliated companies, and regularly exchange views with the President
and CEO, Directors of the Board, and General Managers. In order to increase the effectiveness of audits,
Audit and Supervisory Board Members hold regular meetings and coordinate closely with the Accounting
Auditor, Internal Audit, and corporate divisions such as Corporate Finance and Corporate Legal Affairs.
Full-time Audit and Supervisory Board Members regularly hold the Group board of auditorsʼ meetings
with the Audit and Supervisory Board Members of the Nissha Group companies in Japan, at which theyshare information and exchange opinions, as well as work to strengthen and enhance auditing in theGroup companies, such as by jointly conducting visiting audits.

25-7

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Reasons for Appointment and Board of Directors/Audit and Supervisory Board Meeting

Name

TetsuyaTaniguchi

Kenji Imai

Reason for appointment

Mr. Tetsuya Taniguchi engaged in operations of corporate
communications, investor relations and corporate social
responsibility, after having been in charge of operations in
the general affairs, and strived for transparency and clarity indisclose for shareholders and investors. Also, he has extensive knowledge of the Nissha Groupʼs business as a whole.
Since he assumed the position in March 2020, Mr. Tetsuya
Taniguchi has duly performed supervisory functions as a
Full-time Audit and Supervisory Board Member of the Company, making the most of the broad experience and insighthe has gained. We appointed him as an Audit and Supervisory Board Member since we believe that he will continue to
execute his duties appropriately.

100％(18/18
meetings)

Mr. Kenji Imai is well-versed in the Groupʼs businesses andhas broad experience and deep insight cultivated throughhis long career of engaging in sales and business strategies
in the Industrial Materials and Devices businesses of theCompany by leading the formulation and implementation of
performance and investment plans. Since he assumed theposition in March 2022, Mr. Kenji Imai has duly performed
supervisory functions as a Full-time Audit and Supervisory
Board Member of the Company, making the most of thebroad experience and insight he has gained. We appointed
him as an Audit and Supervisory Board Member since we believe that he will continue to execute his duties appropriately.

100％(18/18
meetings)

Nissha Sustainability Report 2024

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

YusukeNakanoMr. Yusuke Nakano has deep knowledge of finance, ac counting and management administration as a certified
public accountant and profound wisdom in governing corporate management, and has been auditing the Company
from his professional perspective. He also participates incorporate management as an independent outside directorof the board of another company, an Independent Audit
and Supervisory Board Member of the Company and an
independent audit and supervisory board member of othercompanies. We appointed him as an Audit and Supervisory
Board Member since we believe that he will continue toreflect his experience and deep insight in the audit of theCompany from an independent point of view.

100％(18/18
meetings)

100％(13/13
meetings)

YusakuKurahashi

Mr. Yusaku Kurahashi has extensive insight in corporate
governance, risk management, and corporate legal affairs
cultivated through his hands-on experience as a lawyer, as
well as a global perspective gained though his experienceabroad. He has also participated in corporate management
as an Independent Outside Director of the Board (Audit andSupervisory Committee Member) and an Independent Audit
and Supervisory Board Member of other companies. In lightof such broad experience and deep insight, we appointed
him as an Audit and Supervisory Board Member since wejudge that he can appropriately execute his duties as an
Independent Audit and Supervisory Board Member from an
independent point of view.

Appointed in
FY2024

Appointed in
FY2024

Attendances in FY ended December 2023
Attendance atAttendance atmeetings ofmeetings of
the Audit andthe Board ofSupervisory
Directors
Board

Governance100％(13/13
meetings)

100％(13/13
meetings)

25-8

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources25-6 Compensation of Directors of the Board and Audit
and Supervisory Board Members■ Basic Policy on Compensation of Directors of the Board and Audit andSupervisory Board Members
We establish a compensation system for Directors of the Board and Audit and Supervisory Board
Members based on the individual ʼs role in business execution and management oversight, and sothat the role may be fulfilled appropriately, toward linking the compensation with the sustainablegrowth of the Nissha Group and the enhancement of our corporate value over the medium to longterm. In particular, our policy on compensation of Directors of the Board who are responsible forbusiness execution, is to ensure that the system promotes value sharing with our shareholders andcontributes to the improvement of our financial results and corporate value.

■ Policy for determining the details of individual compensation for Directors of
the Board (hereinafter, the “determination policy”)
Method of determining the determination policy
The Company resolved the determination policy at the meeting of the Board of Directors held on February 19, 2021. The Company consulted the Nomination and Compensation Committee in advanceregarding the details of the resolution made at the meeting of the Board of Directors and received its
report.
Outline of the details of the determination policy
The Companyʼs compensation plan for Directors of the Board was designed to lead to the sustainablegrowth of the Nissha Group and the improvement of corporate value over the medium to long term
and to ensure that their respective duties are duly performed.
The basic policy on compensation for Directors of the Board who are responsible for business execution is to promote the sharing of value with shareholders and contribute to the improvement ofcorporate performance and corporate value. The compensation consists of a base salary (monetarycompensation), which is fixed compensation, bonus (monetary compensation), which is short-

Nissha Sustainability Report 2024

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Dataterm performance-linked compensation, and stock compensation, etc., which is medium- to longterm performance-linked compensation. The base salary (monetary compensation) is fixed monthly
compensation and determined based on the importance of duties each Director of the Board is
responsible for and their positions. The bonus (monetary compensation), which is short-term performance-linked compensation, is based on periodic profit or loss, such as consolidated net sales andconsolidated operating profit, as indicators to function as an incentive to achieve performance targets for each fiscal year and to encourage appropriate management. The Company determines theamount of the bonus by evaluating the level of achievement of the performance targets and pays it ata fixed time each year. Stock compensation, etc., which is medium- to long-term performance-linked
compensation (non-monetary compensation, etc.), was designed to function as an incentive to promote a sense of contribution to the sustainable growth of the Nissha Group and the improvementof corporate value over the medium to long term. Specifically, a Board Benefit Trust (BBT) is used.
Under this system, the Company awards points to Directors of the Board, etc. according to their titles
and the attainment levels of consolidated performance targets as well as medium-term performancetargets for each fiscal year during a three-year period covered by the medium-term business plan.
On a fixed date in every final fiscal year of the medium-term business plan, the Company grants or
pays shares in the Company and cash equivalents of such shares at their market value (hereinafter
together, “Company Shares”) through the trust according to the number of points awarded. As for indicators for awarding points, consolidated net sales and operating profit are used for the consolidated
performance targets for each fiscal year, while the level of achievement of ROE, one of our key business management indicators set forth in a medium-term business plan, is used for the medium-term
performance target.
The ratios of compensation by type are determined based on the compensation level of companies ofa similar scale to the Company and those in related industries and general trends.
Compensation for Independent Outside Directors of the Board does not include performance-linked
compensation as they supervise management from a standpoint independent from business execution. It consists solely of a basic salary, which is fixed compensation, and is determined by considering
the career and responsibilities of the relevant Independent Outside Director of the Board.
The Company has established a Nomination and Compensation Committee as an advisory panel for
the Board of Directors of the Company. The Nomination and Compensation Committee is chaired by
an Independent Outside Director of the Board and the majority of its members are Independent Out-

25-9

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

side Directors of the Board. The Chairman of the Board, President
and CEO prepares proposed compensation amounts for Directors of the Board in accordance with predetermined calculation
methods within the range of compensation limits determined at
general meetings of shareholders. Upon consultation by the Boardof Directors, the Nomination and Compensation Committee deliberates the details of the proposed compensation amounts andsubmits a report to the Board of Directors. The Board of Directors
then determines the compensation amounts based on the report.

■ Results of FY ended December 2023

Reasons for the Board of Directorsʼ determination that thedetails of compensation for Directors of the Board for the
fiscal year ended December 2023 are in line with the determination policy

Directors of the Board(Excluding Independent Outside Directors of the Board)

257

Audit and Supervisory Board Members(Excluding Independent Audit and Supervisory Board
Members)
Independent Outside Directors and Independent Audit
and Supervisory Board Members

The Nomination and Compensation Committee deliberated on
the individual compensation for Directors of the Board for the fiscal year ended December 2023 from various viewpoints and confirmed that the details of compensation for Directors of the Boardand the determination process are in line with the determination
policy. With respect for the report from the Nomination and Compensation Committee, the Board of Directors determined that thedetails of compensation are in line with the determination policy.

■ Matters regarding compensation for Audit andSupervisory Board Members
Compensation for Audit and Supervisory Board Members isdetermined through discussions among Audit and Supervisory
Board Members within the range of compensation limit determined at a general meeting of shareholders. It consists solely ofa fixed basic salary as Audit and Supervisory Board Members are
responsible for auditing the entire Nissha Group from an independent standpoint.

Nissha Sustainability Report 2024

Governance

GRI Standards Content
Index / ESG Data

Compensation by category (Million yen)

Title

Fixed
Total
compensationcompensation(Million yen)
Base salary

Performance-relatedcompensation

Number ofmembers

Bonuses

Stock compensation, etc.
(Non-monetarycompensation, etc.)

171

45

40

5

33

33

―

―

2

54

54

―

―

6

* The performance-linked stock compensation, etc. is stated at the amount of provision for management board benefit trust recorded for the current fiscal year. The Company Shares weredelivered on a fixed date after the end of the period covered by the 7th Medium-term Business Plan (from January 1, 2021 through December 31, 2023).

25-7 Corporate Officers
To respond flexibly to changes in the business environment,
Nissha considers it important that the experiences, knowledge,
abilities, ages, and so on of Corporate Officers be both the bestand distributed without bias. The term of Corporate Officers is
one year.

foreign nationals and one is female.
Corporate Officers include persons with experience of working
overseas or at other companies, as well as those with expertisesuch as those with master's or doctoral degrees.

■ Diversity of Corporate Officers (as of January 1, 2024)
At present, we have 18 Corporate Officers, of which two are

25-10

Environment
Contents /Editorial Policy

26.

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Initiatives of Internal Audit Office26-1 Systems

26-2 Audit Content

In order to maintain independence and objectivity, the Internal Audit
Office is independent of operating departments and is under the directcontrol of the Chairman of the Board.

Audits by Internal Audit Office are broadly classified into "internal control audits" and "theme audits" based on the Financial Instruments
and Exchange Act. Internal control audits are conducted jointly withaccounting auditors by selecting the scope of evaluation from theperspectives of company-wide controls, financial reporting, businessprocesses, and IT controls. This auditing is aimed at guaranteeing thereliability of financial reporting as a result of assessing the effectivenessand efficiency of the Nissha Group ʼ s business activities. The Internal
Audit Office also audits the legal compliance status of business activitiesof the Nissha Group and the Risk Management and Compliance Committee activites. In this context, the assessments concerning importantrisks selected by the Risk Management and Compliance Committee
include business ethics matters such as the prohibition of corruption.
These assessments are audited to ensure they are being properly andeffectively conducted in accordance with risk management and compliance regulations. Theme audits, on the other hand, use a risk-based
approach to select themes at the beginning of each fiscal year to audit
risks that cannot be covered by internal control audits.

Our Internal Audit Regulations outline fundamental matters concerning internal audits. They set forth a system for drafting or revising our
medium-term audit plans and fiscal year audit plans that adjust to our
medium-term business plans and changes in law and the social andeconomic environment, and then acquiring the approval of the Chairman of the Board, President and CEO. The audits are implemented for
all Nissha Group business operations in a method that covers all major
sites over the three years medium-term business plan, and conductedin accordance with the annual plan.
After the audit, advice and recommendations are given to the departments subject to the audit, and after a certain period of time, follow-up
audits are conducted to check the status of improvements in the areas
identified. Audit results are reported and advice given at monthly meetings with the Chairman of the Board, President and CEO.
Additionally, the Internal Audit Office hold one meeting per quarterwith the Full-time Audit and Supervisory Board members in which theyreport on their activity status, exchange opinions, and ensure mutual
collaboration with the Audit and Supervisory Board. Moreover, once perquarter, the three entities of the in-house Directors, Full-time Audit
and Supervisory Board members, and Internal Audit hold a meeting(Triangle QBR). Therein, the Internal Audit reports on information andissue awareness it gained during the processes of auditing. This content
is reported, together with the annual audit plan, once per half-year at
the Board of Directors meeting. It contributes to the strengthening ofNisshaʼs audit and supervisory functionality.

Nissha Sustainability Report 2024

Governance
Quality Management / Efficiency
and Productivity Improvement

27.

Governance

GRI Standards Content
Index / ESG Data

Internal Control
SystemNissha has established an Internal Control Policy by a decision of
the Board of Directors to provide a system to ensure the appropriateness of work as stipulated by the Companies Act. Nissha isworking to improve our corporate value by constructing and operating an Internal Control System to guarantee that the work ineach of the companyʼs organizations is being done legally, appropriately, and efficiently. To ensure reliability of financial reporting,
we submit the assessment results of our internal control systemin the form of internal control reports to the Prime Minister of Japan and disclose the contents to our shareholders and investors.

26-3 Initiatives for FY2023
In the fiscal year ended December 2023, in addition to an internal
control audit, a theme audit was carried out on the status of support
for laws and regulations in relation to the Act Against Delay in Payment
of Subcontract Proceeds, etc. to Subcontractors and the Electronic
Books Maintenance Act, as well as one on the status of managementof poisonous or hazardous item storage facilities. An audit was also carried out related to the overall business management of domestic andoverseas affiliated companies selected through risk analysis.

26,27

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

28. Risk Management and Compliance
Through our Risk Management and Compliance Committee, and based on our Risk Management
Policy, the Nissha Group conducts centralized management over risks that hinder business operations. Once a year, based on the business models for each company and the business organizations,
we prioritize and appropriately control risks that could hinder the continuity of business activities for
all companies, in cooperation with the departments and subcommittees that have primary responsibility for risk.

28-1 Policy

Risk Management Policy
Nissha Group strives to accurately identify the risks we face, avoid unexpected loss, and appropriately control risks, thereby ensuring business continuity and enhancing our corporate value toward realizing the enrichment of peopleʼs lives by creating technology and developing it into economic and social value.
1. We build and maintain a structure for responding to the various risks present in our business environment.
2. We promote risk management at the managerial level toward conducting organization-wide activities andpreserving management resources.
3. In the event of an emergency, we work to minimize damage, resume business activities as quickly as possible, and prevent recurrence.
4. We conduct in-house training to enhance awareness of and the ability to respond to risks, and ensure thateach employ takes responsible, swift, and appropriate action.
5. We periodically review our risk management structure, including this policy, and make improvements on acontinuous basis to ensure effective risk management at all times.

Junya Suzuki
Chairman of the Board, President and CEO
Nissha Co., Ltd.
Established on July 1, 2015 / Revised on January 1, 2022

Nissha Sustainability Report 2024

28-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

28-2 Guidelines

28-3 Structure

The Group has sets “Act with Integrity” (we act with integrity and maintain the trust placed) as oneof the Shared Values that are principle of employee behavior. And we declared that each officer andemployee should act in good faith and continue to be a trusted company. We established the Corporate Ethics and Compliance Guidelines, which sets out the basic ideas concerning corporate ethics
and compliance that each officer and employee is expected to follow.

Nissha has established a Risk Management and Compliance Committee chaired by Director of theBoard, Senior Executive Vice President (in charge of legal affairs) and composed of all in-house Directors of the Board. The Risk Management and Compliance Committee holds a general meeting
once a year and progress confirmation meetings every quarter, and reports to the Board of Directors
each year on the status of activities. The Board of Directors oversees the activities of the Risk Management and Compliance Committee, discusses reports from the Committee, and gives improvement instructions as necessary.

In addition, the Nissha Group has prepared the Corporate Ethics and Code of Conduct Manuals as away to more clearly embody the Corporate Ethics and Compliance Guidelines and make it more understandable to our employees. Along with distributing this to all employees, it has also been postedon the Nissha intranet. This Manual was prepared in Japanese, English, Chinese, and Vietnamese,and having the entire company study it at the same time is designed to ensure awareness, alongwith the Corporate Ethics and Compliance Guidelines.

Corporate Ethics and Compliance Guidelines
Nissha Group acts according to the “Principles” in order to realize the enrichment of peopleʼs lives by always
creating technology and developing it into economic and social value.

Principles
1. We value and hold on to high ethical standards, integrity in our actions, and act with good common
sense through our responsible behavior.
2. We pursue the Co-existence with the Stakeholders including our customers, shareholders, suppliers,
local communities and our employees.
3. We will comply with all laws and regulations, internal corporate regulations, and socially accepted rules
and norms, also act according to “Corporate Ethics and Code of Conduct”.
4. If we witness any actions contrary to the “Corporate Ethics and Code of Conduct" or are suspicious ofcertain behaviors or decisions, we should immediately report to and consult with our supervisors.
Junya Suzuki
Chairman of the Board, President and CEO
Nissha Co., Ltd.
Established on April 1, 2012 / Revised on January 1, 2022

Nissha Sustainability Report 2024

The Risk Management and Compliance Committee centrally manages the cross-company risks,business risks, and financial risks of the Nissha Group on a global basis. Of these, for the cross-company risks, the Committee selects key risks in line with the results of the risk assessment at the annual general meeting. The selected key risks are set as key performance indicators for the lead departments or subcommittees, and minimized through their activities. In addition, the status of these
activities is reported in the progress meetings, and the Committee confirms whether the set KPIs
are progressing as planned, and rotates the PDCA cycle (the Sustainability Committee manages the
progress of materiality risk items).
The Business Review for each businessdivision and the Investment Committee
for the corporate finace department
manage business risks and financial risks.
Progress is reported at the annual general meeting, and the Committee checks
the contents.
In addition, if a serious risk incident arises(including a serious report to the hotline),
the Risk Management and Compliance
Committee convenes on an emergency
basis.

Board of Directors
ReportSupervise

Risk Management and Compliance Committee
Committee Chair(Director of the Board, Senior Executive Vice President,
Legal Affairs)

Secretariat(Corporate Legal Affairs
and Global Integration Planning Departments)

Business divisions, lead departments,and subcommittees that manage risks

28-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

28-4 Risk Assessments
The Risk Management and Compliance Committee carries out
risk assessments on the 16 items to the right under its purview.
The lead departments or subcommittees that manage the key
risks selected through this risk assessment set Key Performance
Indicators and action items, and work to mitigate these risks
through their activities.
We aim to conduct risk reduction that is even more in line withbusiness activities. In addition to the Headquarters Corporate
Division risk assessment, risk priority levels will be considered inbusiness units and affiliated companies as well. General Managers will select key risks, taking into account the process ofconfirming appropriateness from a business management perspective. Furthermore, Group companies overseas study within
their business departments the priorities and appropriateness ofhigh-priority risks selected by each company and select key risks.

■ Risk Assessments and Risk Management Methods(1) Evaluation targets• All Group companies in Japan• 55 Group companies oversea (Including when major
overseas subsidiaries and their own subsidiaries have been
evaluated.)(2) Target risks• Cross-group risks (including compliance risks)(3) Selection process for key risks
The following process is used by the Risk Management andCompliance Committee to select key risks.

Nissha Sustainability Report 2024

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities(i) For the above cross-group risks, the high-value risks calculated using the "probability of occurrence" and "impact
when it occurs" horizons are considered the "inherent risks".
(ii) In addition, the "effectiveness of control activities" is evaluated, and risks with low "effectiveness of control activities"
with respect to "inherent risks" are selected as key risks.
(3) Management method

Key risks
Low "effectiveness of control
activities" withrespect to "inherent risks"

The lead department or subcommittee
sets the Key Performance Indicators andaction items to mitigate risks. The progressof these activities is monitored by the Risk
Management and Compliance Committee.
(Business risks are spearheaded by thebusiness organization, which checks via
business reviews, etc.)

High "effectiveness of control
activities" withrespect to "inherent risks"

Subject to monitoring, and the Risk Man agement and Compliance Committee
confirms the status of maintenance andoperation by the lead department or subcommittee.

Cross-grouprisks other than"inherent risks"Managed by the business organizationand lead department, and reported at theMonthly Business Review (MBR)

The following items are also positioned as content for corporate
ethics and compliance that officers and employees of the Nissha
Group should follow.

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

1. Fair business practices (violation of antitrust laws, violation of unfair competition laws, threats and coercion
against anti-social forces and companies, bribery andcollusion with business partners, insider trading, circular transactions, etc.)
2. Labor and human rights (harassment (e.g. sexual
harassment, power harassment), health and mental
health management, health and safety, etc.)
3. Enhancement of human capital (ensuring management human resources and global human resources,
mismatch between business portfolio and human resources portfolio, etc.)
4. Ensuring quality and safety of products/services (useof banned substances, quality falsification, recalls andserious complaints, etc.)
5. Ensuring quality and safety of medical products/services (use of banned substances, violation of the Pharmaceuticals and Medical Devices Act)
6. Intellectual property rights (patent infringement, information contamination, etc.)
7. Supply chain management (supplier management (labor and human rights, health and safety, environment,
information security, compliance), child labor andforced labor, etc.)
8. Environmental protection (climate change response,
waste management, chemical substances management, water pollution, etc.)
9. Trade management (trade management (e.g. violationof foreign exchange and customs laws))
10. Information systems (theft and leakage of confidential

28-3

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

In the fiscal year ended December 2024, as a result of the risk
assessment, the Nissha Group in Japan has chosen as key risks fairbusiness practices, labor and human rights, product and service
quality and safety, medical product and service quality and safety,
supply chain management, information systems, and business
continuity. The Nissha Group overseas has selected labor andhuman rights, financial affairs, information systems and business
continuity.

and personal information, information leaks via SNS,
malware infection, etc.)
11. Asset management (misappropriation of company
property (money), theft or loss of company assets)
12. Business continuance (natural disasters (earthquakes,
typhoons, floods, etc.), fire and accidents)
13. Business strategies (changes in competitive/market
environments)
14. Business development (development delays, interruption in technology)28-5 Promotion of Corporate Ethics
and Compliance

15. Production activities (design defects, release of defective products)
16. Finance (failure of capital planning, exchange rate
fluctuations)

The Risk Management and Compliance Committee promotes
corporate ethics and compliance activities throughout the entire Nissha Group. All Nissha Group bases in Japan and overseas
appoint managers and group leaders in charge of promoting
corporate ethics and compliance. Concerning compliance with
the Pharmaceutical and Medical Device Act, in order to achieve*Items in parenthesis are examples of risks.

Governance

GRI Standards Content
Index / ESG Datafurther promotion of the priority markets, we have maintained a
Medical Healthcare Consultation Desk since the fiscal year ended
December 2021 in addition to providing the above training efforts, etc.

■ Promotion Structure
The managers and group leaders in charge of promoting corporate
ethics and compliance not only implement initiatives to improve
the awareness of corporate ethics and compliance in their respective divisions but also implement corporate ethics and complianceon a day-to-day basis through organizational management, serveas handy consultants for their workplace, and, should an incident
arise, work with Corporate Legal Affairs to deal with it.

■ Awareness-raising activities
Corporate Legal Affairs also holds training sessions, etc., as a way
to further boost awareness among these promotion managers,
leaders, and other employees. During the fiscal year ended December 2023, training was conducted as appropriate for each

Corporate Ethics
and Compliance Structure

Board of Directors

Risk Management
and Compliance Committee
Committee Chair:Director in charge of legal affairs

Audit

Re

Audit and Supervisory Board(Audit and Supervisory Board Members)portReportReportSecretariat: Legal Affairs

ReportConsult /ReportManager

All Employees
SupportReport /Consult

Group Leader

Report / Consult

Appointed Employee(if required)(Full-time employees,
contracted employees,
temporary employees etc.)

ReportHotline (External)
Report / Consult

Nissha Sustainability Report 2024

28-4

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

department or affiliated company with themes such as the Antimonopoly Act or insider trading restrictions. Carrying out trainingthat is relevant to the work of trainees has further improved onsite employee awareness of compliance.
And overseas, our Europe, China, and North American bases are
identifying and reducing risks according to regional characteristics. During the fiscal year ended December 2023, training washeld at EU bases on money laundering and personal data, at Chinese bases on the RBA Action Guidelines, and at North Americanbases on internal whistleblowing systems.

■ Company-wide Simultaneous Training, etc.
The Group designates every October and November as Corporate
Ethics and Compliance Months, and provides groupwide training
at all bases in Japan and overseas. This simultaneous training isprovided not just for full-time, contract, and temporary employees, but for managers of subcontractors and even part-timers.
In the fiscal year ended December 2023, at domestic bases,
we selected training themes from the significant risks identified
through risk assessment, focusing on fair business practices, labor and human rights, and appropriate handling of information.
In our Western and Asian bases as well, we introduce examples
on themes the Nissha Group deems important and hold training
corresponding to the laws and customs related to each differingbusiness operation content at all domestic and overseas bases.
The ratio of those taking training during the fiscal year ended December 2023 at domestic bases was 100% (2,911 people).
Questionnaires are sent out after each company-wide simultaneous training session to collect a wide range of information andopinions from all employees about concerns and actions thatneed to be improved in the workplace from the perspective ofcorporate ethics and compliance. Examples and results of improvements based on this information are reported to the Risk

Nissha Sustainability Report 2024

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Management and Compliance Committee, along with reports on
training implementation.

■ Officer Training, etc.
At the Nissha Group, in addition to company-wide simultaneoustraining, we also hold compliance training designed for officers.
In April 2024, we invited an external instructor (a lawyer) to
provide training on global compliance and global internal whistleblowing systems.

28-6 Hotline
The Nissha Group in Japan has in place an Internal Reporting
Code and a hotline based on the Whistleblower Protection Act forthe purposes of quickly identifying the facts about illegal, unfair,or unethical conduct by an organization or individual, minimizing
the risk of a crisis, promoting ethical and legal compliance, andultimately enhancing our corporate value.
We are working to disseminate information about the hotline
through the Corporate Ethics and Code of Conduct distributed
to all employees, the Labor and Human Rights Handbook, theNissha Group intranet, in-house training, and awareness posters.
All employees working for the Group in Japan and overseas canuse this service, and in the fiscal year ended December 2019, we
expanded the scope of users by establishing a contact point forsome of our domestic suppliers. This contact point is an outside
attorney, an independent and impartial third party.
The Internal Reporting Code contains the following.
• The whistleblower shall not be subjected to any disadvanta-

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

geous treatment by the Company or other employees dueto their report.
• Anonymous reporting is also possible.
All complaints received are relayed from the hotline (an outside
attorney) to the Corporate Legal Affairs. The Corporate Legal
Affairs liaises with the relevant departments after consultingwith the outside attorney about the best way to investigate andconfirm the issue. Said investigation and confirmation are thencarried out with consideration for the protection of the whistleblower. The content is reported to the Risk Management andCompliance Committee, where it is discussed as necessary, after
which, measures are taken according to the results of the investigation and discussion.
The number and main content of consultations received during
the fiscal year ended December 2023 are shown below.
• Hotline Consultations (for employees): 8 cases (Including 2
from overseas bases)
The contents mainly dealt with human relations in theworkplace and harassment. In all cases, warnings and guidance were given and the workplace environment improved,correcting the issues. An overview summary was disseminated via the Nissha intranet, awareness was raised foreveryone instead of just for the perpetrators, and measures
were taken to prevent recurrence.
• Supplier hotline: 0 cases
For overseas locations as well, in addition to already operating
report acceptance services for some group companies in China
and the Southeast Asian region, we commenced the operationof report acceptance services in some North American and European bases starting in the fiscal year ended December 2023.

28-5

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Hotline Organizational Chart (Nissha Group in Japan)

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

28-7 Dealing with Antisocial Forces

Whistle-blower (consulter)
ReportingComplaint

Hotline (outside attorney)
Complaint

Corporate Legal Affairs
Investigationcooperation
requestInvestigationcooperation
request* When the likelihood ofinternal whistleblowing is low* In case of possible
internal
whistleblowing

Complaint* When the subjectof the complaintis officers

In accordance with our basic policy for dealing with antisocial
forces and our regulations for dealing with antisocial forces,
etc., Nissha has established that it will have no dealings whatsoever with antisocial forces. In principle, we confirm in advancethrough the prescribed procedures that our existing and new
business partners are not members of antisocial forces. This has
cut off all possibilities of involvement in money laundering by antisocial forces.

Audit and Supervisory
Board Members
Investigationcooperation request

Suitable division

Relevant division
関係部門

Reporting

Reporting

法務部

orCorporate Legal Affairs or Audit and Supervisory Board Members

監査役

Reporting* Consideration for theprotection of whistle-blower

Risk Management and Compliance Committee
Request for recurrence prevention measures

Suitable division

Request for discipline

Corporate Human Resources
and Employee Benefits
Disciplinary action
through a separate
procedure

Violator

Nissha Sustainability Report 2024

28-6

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

29. Information Security
29-1 Policy and Principles

29-2 Management Structure

The Nissha Group has created, and continues to operate, an Information Security Management System(ISMS) based in the ISO27001 that is applied to all group companies, and that reflects our Information
Security Policy and our principles outlining specific conduct and regulations known as the Information
Security Principles. We prevent threats to the leak of important information received from our customers
and suppliers and important information managed under tight control within the company, particularly
highly confidential information assets such as new product information, advanced technologicalinformation, and personal information.

As an organization to promote information security within the Nissha Group, the Information Security
Subcommittee was established under the Risk Management and Compliance Committee, and works on
maintaining and improving the ISMS*.

Information Security Policy
Nissha Group constructs a reliable and safe information security management system (ISMS) based on an understanding of the importance of information security in business activities and continually improve this in order tocontinue to be a company that provides economic and social value to our stakeholders.
Junya Suzuki
Chairman of the Board, President and CEO
Nissha Co., Ltd.

Under the CIO (Chief Information Officer), the head of the Information Security Subcommittee is the ISMS
management representative, and the ISMS secretariat has been established in the IT department to oversee
all IT environments in the Group. The ISMS covers all bases within the entire Nissha Group, including overseas
affiliates. For each affiliated company and department, an information security manager and an information
security promoter are appointed, and ensures the system operates in each workplace. In addition, the ISMS
secretariat plays a central role in conducting reviews for top management, internal audits of the ISMS, andregular ISO27001 audits by external examiners to provide opportunities for improvement.
* ISMS=Information security management system

Management Structure
Risk Management andCompliance Committee

Information Security Principles
1. We shall continually improve our information security management system by establishing, implementing, andreviewing the information security objectives so that the confidentiality, integrity, and availability of information
assets can be maintained and improved.

ISMS Management
Representative(Head of Information
Security Subcommittee)

2. We shall comply with laws, regulations, and contract stipulations related to information security.
3. We shall establish criteria for rationally evaluating risks related to information security and methods for risk assessment, and work to maintain and improve information security.

ISMS Internal Audit Team

4. We shall work to prevent the occurrence of incidents or accidents related to information security, and, if an accident does occur, shall respond promptly and work to both minimize damage and prevent recurrence.
5. Nissha People shall understand the Information Security Policy and Basic Principles, and always act with anawareness of information security.
Shinichiro Kobayashi
Vice President, Chief Information Officer
Nissha Co., Ltd.

Information Security
Managers

Information Security
Managers

Information Security
Managers

Information Security
Managers

Information Security
Promoters

Information Security
Promoters

Information Security
Promoters

Information Security
Promoters

Established on July 1, 2013 / Revised on May 1, 2022

Nissha Sustainability Report 2024

29-1

Environment
Contents /Editorial Policy

Domestic

Overseas282
employees

52
employees

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Information Security Managers

89 employees

Information Security Promoters

193 employees

Information Security Managers

16 employees

Information Security Promoters

36 employees

29-3 Deployment of the Management
SystemThe Nissha Group operates the ISMS across all its corporations,both in Japan and overseas.
In Japan, we have obt ained ISO27001 cer tification, theinternational standard for ISMS. Overseas, we have been rollingout ISMS as a unified standard globally, including for corporations
that have newly joined our Group as a result of M&A and so on.
This rollout was completed in the fiscal year ended December
2019. At present, in addition to an annual ISMS internal audit,
we are working to maintain and improve ISMS operations
through the PDCA cycle.

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

29-4 Efforts for Risk Reduction

29-5 Training

The Nissha Group maintains an Information System (confidential
information, per sonal information, information securit y)as one risk area managed under the Risk Management andCompliance Committee. In the fiscal year ended December
2020, we worked on appropriate management of trade secrets
and operation. In the fiscal year ended December 2021, wepermeated this operation, performed internal auditing of theimplementation status, and promoted expansion abroad. In thefiscal year ended December 2022, we launched an initiative toappoint internal auditors from among locally hired employees tostrengthen the effectiveness of internal audits overseas and to
improve education and awareness. We brought in Multi-Factor
Authentication (MFA) to deal with recent security threats in thefiscal year ended December 2023.

Cyber attacks are becoming increasingly sophisticated day byday, so merely strengthening systems will not prevent all of them.
To prevent damage, it is essential for each and every employee tobe fully aware of information security and act with discipline sothat they can learn about threats and methods, and recognize
issues as soon as possible.

Information assets are important information that differentiates
us from our competitors and increases our competitiveness,so it is essential to reduce risks such as information leaks.
Through ISMS internal audits, we advance the permeation ofcontrol methods corresponding to the level of importance, andparticularly implement thorough and strict control concerning
trade secrets.

The Group holds training sessions for all employees, using
e-Learning, based on training materials that reflect our internal
information security policies determined in-company. The fiscal
year ended December 2023 training attendance rate was 100%.
We intend to carry out initiatives to increase awareness andliteracy among employees regarding information security. The
Nissha Group aims to improve information security through both
system enhancements and a high level of awareness and literacyof information security among each and every employee.

In addition, with the rapid progress of IT and the diversificationand spread of devices, we are working on measures to reduce
the risk of our corporate image and brand being af fected
or information leaks through social media postings. We arealso working on information security measures for personal
information devices as used for BYOD (Bring Your Own Device),in addition to company-supplied computers and terminals.

Nissha Sustainability Report 2024

29-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

30. Trade Management30-1 Policy and Principles

30-2 Structure

The Nissha Groupʼs ratio of overseas sales is 86.6% in the fiscal year ended December 2023. As theGroupʼs businesses expand globally, disciplined trade management is an essential issue from theperspective of business continuity.

Nissha Group trade management is now consolidated in the Trade Management Subcommittee under
the Risk Management and Compliance Committee. Across the entire Nissha Group, including overseas
affiliates, we select trade management supervisors and engage in trade management based on theTrade Management Policy, Trade Management Principles, and Trade Management Basic Regulations.

Targeting all group companies, we maintain "Trade Management Policy" and "Trade Management
Principles” outlining specific conduct, compulsory conduct, and regulations. As an Authorized
Economic Operator (AEO), we also establish necessary rules and regulations, and maintain astructure toward continuous improvement of trade management in order to respond to various
internal and external changes in the environment.

At Nissha Group in Japan, we place Trade Management Subcommittee members (responsible persons,directors, and members) in business divisions, corporate management departments, and affiliatedcompanies to create a management system. At the same time, since overseas Nissha Group companies
have different laws, regulations, and business practices in each country or region, we assign a tradecontrol manager to each base to manage.

Trade Management Policy
Nissha Group fulfills its responsibilities as a company to its stakeholders by developing a trade management system and complying with laws and regulations related to trade management, such as security
export control.

Junya Suzuki
Chairman of the Board, President and CEO
Nissha Co., Ltd.

Risk Management andCompliance Committee
Trade Administration andControl Subcommittee

Head of Trade Administration andControl Subcommittee

Trade Administration andControl Subcommittee
Secretariat

Trade Management Principles
1. We comply with laws and regulations related to trade management in each country and region.
2. We shall appoint a person responsible for trade management in our bases, and in addition to developing the trade management system, this system shall be maintained and improved.
3. We shall cooperate with public agencies and logistics partners in each country to establish a soundtrade management system.
4. Nissha People will undergo any training required for trade management, and each person shall carryout their work appropriately.
Hisashi Iso
Director of the Board, Executive Vice President, Corporate Supply Chain
Nissha Co., Ltd.
Established on October 1, 2016 / Revised on January 1, 2024

Nissha Sustainability Report 2024

Business divisionCorporate division

Affiliated companies

Overseas bases

responsible persons,directors, members

responsible persons,directors, members

trade control managers

At Nissha Group in Japan, a range of operational regulations and rules for trade-related operations
required of AEO businesses have been established, while each department is preparing work standards
and manuals to ensure export and import operations are carried out appropriately. At Nissha Groupbases overseas, we are working on permeation of the Trade Management Policy, Trade Management
Principles, and Trade Management Basic Regulations as well as preparing management documents.

30-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Authorized Economic Operator (AEO) Program

Nissha Precision Technologies Malaysia Sdn. Bhd., based in
Malaysia, obtained approval as both an AEO Exporter and an AEO
Importer in October 2014. Their post-audits were conducted in
May 2022, and we maintain both approvals.

The AEO program is designed to secure and facilitate global trade
and to strengthen a country ʼ s international competitiveness byproviding benefits such as reduced or simplified customs controls

Governance

GRI Standards Content
Index / ESG Data

• Aim 2: Zero omitted declaration of charge factors: By regularly
operating that the internal post-checking system establishedto prevent occurrence is working correctly in cooperation withrelated departments, no incidents occurred in the fiscal year
ended December 2023, as in the previous fiscal year.

to operators with cargo security management and compliancestructures. The September 11, 2001, terrorist attacks on the
United States raised awareness of the necessity of an international

30-5 Training

framework for reinforcing anti-terrorism measures by ensuring
both security and efficiency in the international movement ofgoods. In 2006, the World Customs Organization (WCO) adopted
a set of AEO guidelines as a global standard and the basis onwhich countries enact laws and operate their respective AEO
programs. Japan launched its AEO program in 2006, starting with

AEO Approval Form

Quality Management / Efficiency
and Productivity Improvement

employment histories with Nissha.

30-3 AEO Approval
Nissha Co., Ltd. obtained approval as an AEO Exporter in June
2014, and as an AEO Importer in June 2015. Their second
postaudits were conducted in October 2019, and we maintain all
approvals. As of December 14, 2023, 60 companies in Japan areapproved as both AEO Importer and AEO Exporter. Being one ofthese companies with dual approval, we have in place a system
for safe and smooth international logistics.

Governanceexporters and expanding gradually into the current form.

Starting in the fiscal year ended December 2020, we provide
theme-based education oriented towards employees involved in
actual importing and exporting. In the fiscal year ended December
2023, we carried out training for 235 employees actually involvedin trade operations in Japan, regardless of their department.

■ Themes• Security trade controls• Determining relevance and screening transactions

30-4 Initiatives for FY2023• Incoterms and HS codes• Internal import/export steps

In the fiscal year ended December 2023, following on from theprevious fiscal year, we engaged in the following two items aiming to implement proper and lawful operations during importingand exporting.
• Aim 1: Zero incidents of illegal/unlawful declarations: During
the fiscal year ended December 2023, there were no casesin the shipping divisions, where one had arisen the previous
fiscal year, but there were 12 new cases in the administrative divisions. We are working to build a system to prevent
recurrences of human error by employees who have short

Nissha Sustainability Report 2024

30-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

31. Anti-corruption
31-1 Guidelines

31-2 Efforts to Ensure Awareness and Internal Audits

The Nissha Group regards corrupt practices, such as bribery, collusion with business partners, violations of the Competition Law and the Unfair Competition Prevention Act to be one of the major risks
managed by the Risk Management and Compliance Committee. We have established the Nissha
Group Anti-Corruption Guidelines and made them known to our bases both in Japan and overseas.

In addition to these Guidelines, the Nissha Group has set out specific standards for domestic andoverseas bases, and used the Nissha intranet to spread awareness. Also, training is provided for all
operations of the Group to ensure compliance with the relevant laws, regulations, and customs.

Nissha Group Anti-Corruption Guidelines

In the fiscal year ended December 2023, one of the case studies in the company-wide simultaneous training on corporate ethics and compliance was bribery at an overseas base. Because bribery is
an entrenched practice in some countries and regions, we conduct internal audits on a regular basis.
The Group has not identified any cases of corruption in the fiscal year ended December 2023.

The Nissha Group makes clear that all officers and employees are prohibited from presenting customers,
suppliers, and government officials, either directly or indirectly, with gifts or entertainment that may constitute corrupt practice, and observes Japanʼs Unfair Competition Prevention Act, the United Statesʼ Foreign
Corrupt Practices Act, the United Kingdomʼs Bribery Act, and the regulations of other countries and regions
regarding anti-corruption.
1. We neither present to nor accept from customers, suppliers, and government officials offers of unfair
advantage.
2. We neither present to nor accept from customers, suppliers, and government officials offers with gifts orentertainment that exceed the limit permitted by internal standards, laws, and regulations.
3. We strive to understand the circumstances of the Nissha Group overall, and periodically review ourinitiatives.
4. We respond with sincerity to requests from our customers for cooperation in investigations, by providing
necessary information.
Junya Suzuki
Chairman of the Board, President and CEO
Nissha Co., Ltd.
Established on April 1, 2017 / Revised on January 1, 2018

Nissha Sustainability Report 2024

31

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

32. Business Continuity
32-1 Policy and Principles

32-2 Structure

We at the Nissha Group establish the Business Continuity Plans Policy, which the Business Continuity Management (BCM) Subcommittee under the Risk Management and Compliance Committee plays a central
role in promoting in preparing for and responding to emergencies such as a natural disaster or pandemic.

The BCM Subcommittee has been set up under the Risk Management and Compliance Committee
as a system for operating BCM in the Nissha Group. The President and CEO serves as the person responsible for BCM activities, and BCM Promoters have been appointed at the Nissha Co., Ltd. Head
Office and each Group company. The secretarial office holds BCM Subcommittee meetings on aregular basis. These are used to confirm initiatives and the status of improvement of BCM measures
for the Nissha Group overall, training persons in charge, and planning and carrying out BCM drills.

Business Continuity Plans Policy
Nissha Group formulates business continuity plans to minimize damage and work towards prompt businessrecovery, while ensuring the safety of human life first, in the event of a major natural disaster, fire, power cut,
epidemic, or other major event that interrupts business. In addition, we carry out regular revisions and drills toensure the effectiveness of these plans, and promote business continuance management.
Junya Suzuki
Chairman of the Board, President and CEO
Nissha Co., Ltd.

Risk Management and Compliance Committee
Business Continuity Management (BCM)
Subcommittee
BCM Activities Representative

Business Continuity Plans Principles
1. In the event of a major interruption of our business, we shall ensure the safety of human life as our top priority
while preventing secondary disasters.
2. We shall define buildings, equipment, information systems, human resources, and suppliers as key management resources/ stakeholders, and formulate business continuity plans. In addition, we shall consider changes in the business environment and regularly revise these plans.
3. We shall clarify which businesses are to be prioritized for continuance/ recovery, and achieve this recovery
within the target timeframe.
4. We shall regularly conduct training and drills related to business continuance, and work to improve our organizational capacity to respond to risks.
5. We shall contribute to society through working with local communities to support recovery and rebuilding.
6. We shall comply with laws, policies in Japan and overseas, and other norms with regards to business continuance.
Daisuke Inoue
Director of the Board, Senior Executive Vice President, General Affairs
Nissha Co., Ltd.

Nissha /BCM Promoters

Secretariat(General Affairs
Department)

Departments

Affiliated Companies /BCM Promoters

Affiliated Companies /BCM Promoters

Secretariat

Secretariat(Corporate
Administration
Department)(Corporate
Administration
Department)

Factories / Departments

Factories / Departments

Established on September 28, 2006 / Revised on May 1, 2022

Nissha Sustainability Report 2024

32-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

32-3 Initiatives
Nissha Group in Japan haves in place a set of Emergency Response Regulations that defines “emergency” and stipulates theaction and structure required between initial response to a disaster and business recovery. In the event of a serious interruption ofbusiness due to emergency over a certain level, such as a natural
disaster or pandemic, we set up a response task force headedby the President. In addition to habitually stockpiling supplies atmajor bases in Japan in preparation for emergencies, we also distribute “survival cards” listing information about what to do when
an earthquake strikes, educate employees using an e-Learning,and conduct emergency training to promote thorough awarenessabout the general rules for action and response in an emergency.
Our Basic Plan for BCM stipulates in detail the steps to be taken in order to promote early recovery of key business locations.
In efforts to verify the effectiveness of these steps, we organize
business continuity planning (BCP) exercises on a regular basis
for employees including the management. We respond quickly tochanges in management environment and reorganization, suchas managing the latest editions of relevant documents.

Nissha Sustainability Report 2024

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

Operation of a safety confirmation system

Implementation of management BCP training

We have introduced a system under which employees register

We hold BCP drills annually in accordance with the BCM

their safety information so that we can smoothly and quickly

Subcommittee Action Plan. These drills are simulations to checkconfirm their safety status in the event of a major natural disasterthat BCP functions adequately in the event of an incident such as

such as an earthquake or typhoon, a pandemic or other emer-

an earthquake.

gency. As part of our safety confirmation drill during our biannual

During the fiscal year ended December 2023, targeted at thedisaster drills, we send an e-mail to all employees simultaneously,

Devices Business Unit, Nissha Precision and Technologies, Inc.

and managers confirm the safety of the members of the compa-

Himeji Factory and Kaga Factory, Nissha FIS, Inc., and the Nissha

ny based on employeesʼ responses to the e-mail.

Head Office were linked online, and carried out drills simulating

In 2023, the other Group companies in Japan also brought in thesame system. This system allowed us to smoothly confirm employee safety after the 2024 Noto Peninsula Earthquake.

an earthquake in Hyogo Prefecture. This drill started with setting
up a base headquarters, then participants rapidly responded
within their own scope of responsibility, working to ensure
employee safety and minimize business risk.
We consider the construction and operation of BCP/BCM
important for improving the companyʼs competitiveness and also
leading to improved corporate value, and we continue to conduct
a diverse range of situation-based drills each year.

32-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Risk Surveys

Responses to the Noto Peninsula Earthquake

The Nissha Group carries out annual risk surveys at affiliatedIn the Noto Peninsula Earthquake that struck at 16:10 oncompanies in Japan and overseas. These surveys draw on theJanuary 1, 2024, Nissha Precision and Technologies, Inc.

expertise of specialists in risk consulting. For the fiscal year ended

Kaga Factory (Kaga City, Ishikawa Prefecture) experienced an

December 2023, the surveys covered Nissha FIS, Inc. The risk

earthquake registering an upper 5 on the Japanese seismicof fire or explosion was assessed in terms of fire management,

intensity scale. Nissha immediately moved to confirm relatedbuilding and motive power, use and processes, fire-fighting

people ʼ s safety and the situation at the factory, and at 18:00

equipment, and fire hazards, while for natural hazards, disasterwe set up the Noto Earthquake Measures Headquarter andprevention measures for lightning, earthquakes, flooding and sobegan activities. This allowed us to quickly confirm that none

on were also confirmed. Overall, the evaluation was positive, but

of our employees, including dispatch employees and contract

we will continue to implement the PDCA cycle to make further

workers, had been harmed. Although there was some damage at

improvements.

the factory to production equipment and the roof, there was no

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

major damage.
Later, while checking the effects on the production system
including the supply chain, we worked on recovery, and were able
to get up and running again quickly.

Kameoka Factory

Nissha FIS, Inc.

Nissha Sustainability Report 2024

32-3

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

33. Tax Principle
Nissha Group will compliance with tax laws and regulations in each country and each region based on Tax Principle, in order to fulfill our corporate social responsibilities (CSR).

Tax Principle

Therefore, We will strive to provide necessary information appropriately and cooperatively in response to requests from tax authorities in each country and region while issuing tax returns properly and paying appropriate

Basic Principle

amount of tax according to tax laws and regulations in each country and region.

Nissha Group will strive to minimize tax risks, enhance our corporate value by complying with tax laws and reg-

If tax authorities inform us of tax adjustments, we will immediately take appropriate measures to prevent simi-

ulations in each country and each region.

lar issues happen unless we file a petition of objection against their action or interpretation.

Nissha Group will pay close attention to the trends in the international tax framework such as Base Erosion
Profit Shifting (BEPS) project and make properly responses to such changes as a global company.
1. Nissha Group's approach to tax planning
Nissha Group will enter into transactions with a business purpose and a business activity and in case we approach

4. The approach of Nissha Group to risk management and governance arrangements in relation totaxation in each country and region
Nissha Group's tax policy is reviewed and controlled by our group's Chief Financial Officer who is responsible
for our groupʼs tax strategy and policies, and the status is reported to Board of Directors on an on-going basis

to tax planning, we will implement it properly and efficiently in compliance with tax laws and regulations.

through our groupʼs Chief Financial Officer.

Our group will consider taxes as an essential factor in our business planning and make use of available tax

Where there is significant uncertainty or complexity in relation to application or interpretation of tax laws, we

incentives within the scope of normal business activities. However, we will not engage in transactions for thewill take appropriate measures after seeking external advices.

primary purpose of tax avoidance and transactions without any actual business activities.
2. The level of risk to taxation that Nissha Group is prepared to accept
Nissha Group's Tax Principle is to minimize tax risks wherever possible when undertaking tax matters.
We will work to identify, evaluate, and manage tax risks in each country and region to reduce such risks, andwhere there is significant uncertainty or complexity in relation to tax risks, we will ask for advice from third parties.

Hitoshi Koya
Executive Vice President, Chief Financial Officer
Nissha Co., Ltd.
Established on December 25, 2017
Revised on May 1, 2022

3. The approach of Nissha Group towards its dealings with Tax authorities in each country and region
Nissha Group believe that we can build and maintain good relationship with tax authorities in each country andregion corresponding with them and disclosing necessary information in a sincere and appropriate manner.

Nissha Sustainability Report 2024

33

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

34. Responsible Mineral Procurement34-1 Policy

34-2 Initiatives

Nisshaʼs policy on conflict minerals is outlined in our Basic Approach to Responsible Mineral Procurement. We clearly state our belief that Nissha Group products do not use materials made from conflictminerals, which are used to finance armed groups involved in human rights abuses such as looting,assault, and forced labor, and we follow the OECD's conflict minerals due diligence guidance.

34-2-1 3TG Usage Status
The 3TG (tin, tantalum, tungsten, and gold) used in Nissha Group's products are shown in the tablebelow.
Segment

Basic Approach to Responsible Mineral Procurement
The Nissha Group is deeply concerned that a portion of the conflict minerals extracted by the Democratic

In April 2012, Nissha became a signatory to the “Global Compact” as advocated by the United Nations. We
at Nissha Group have fully embraced the Ten Principles stated in the Global Compact as a cornerstone of our
Corporate Mission. Based upon our recognition of the importance of these principles and aiming for co-existencewith our stakeholders, we are committed to non-use of these conflict minerals, as raw materials in our products
as they result in an infringement of basic human rights. Accordingly where our company becomes aware of theuse of any conflict minerals, we will immediately implement all measures required regarding that use.
1. Nissha Group is presently implementing ongoing control systems for conflict minerals which we maintaincontinuously.

3TG in use

Industrial Materials

Only a small portion of Decoration (Mobility) and
Decoration (Home appliances and others)

Tin

Devices

For Tablet devices, Smartphones, Portable gameplayers, Industrial equipment (logistics related),
Mobility, Gas sensors and others

Tin, tantalum,
tungsten, and gold

Medical Technologies

Only a small portion of Medical devices (CDMO)

Tin, tungsten, and gold

Republic of the Congo and its neighboring countries are being used as a source of funding for militia thatthrough acts of looting, violence and forced labor are infringing on fundamental human rights.

Applicable product group* The names of the segments and product lineups are in line with "25. Net sales (2) Disaggregation of revenue” in our Annual Securities Reportfrom January 1, 2023 to December 31, 2023. The proportion of net sales of products using 3TG accounted for approximately 30% in thefiscal year ended December 2023.

34-2-2 Survey Requests to Suppliers

2. Nissha Group will promptly provide to its customers conflict minerals information including its smelters, etc.
3. Nissha Group in respect of this issue will publish the relevant information in its sustainability reports.
We will continue to make sincere efforts for the responsible procurement of related minerals in order tofulfill our corporate social responsibilities.
Junya Suzuki
Chairman of the Board, President and CEO
Nissha Co., Ltd.
Established on March 12, 2014 / Revised on January 1, 2018

Nissha Sustainability Report 2024

The Nissha Group, mainly through its related business units, requests suppliers to conduct a surveyof 3TG used mainly in materials for mass-produced products using the latest CMRT (Conflict Minerals Reporting Template), generally once a year. Then, based on the CMRTs submitted by suppliers,
we prepare our CMRTs and submit them to our customers.
We review the content of CMRTs submitted by suppliers, and if a refinery, etc. is no longer in business or has changed its name, we ask suppliers to resurvey.
Concerning the survey for the fiscal year ended December 2023, in addition to handling refineries

34-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

that were removed from the Responsible Minerals Assurance Process (RMAP) compliance list due
to the impact of sanctions imposed by the U.S. government and others on Russia and refineries ourcustomers requested not to be used, we encouraged our suppliers to procure their 3TG from Conformant Smelters & Refiners. We intend to continue these kinds of efforts in the future.

34-2-3 Developing and Implementing Strategies to Address Identified Risks
In some cases, we may ask suppliers to utilize the RMAP audit program if non-certified refineries areincluded in the refinery information they have submitted in the CMRT. Additionally, concerning 3TG,
if it becomes clear that a relationship exists with a refinery upstream in the supply chain that is involved in armed forces or human rights abuses, we will consider taking strict measures in line with ourcustomerʼs requests. However, there were no such cases in the fiscal year ended December 2023.

34-2-4 3TG Survey Results
The CMRT provided by the Responsible Minerals Initiative (RMI) is designed so that the scope ofdeclaration during responding can be selected from (1) company level, (2) product level, and (3) user-defined level. However, we ask suppliers to respond at the product level in order to ensure that thesmelters of minerals used in the parts and materials for Nissha Group products can be definitively
identified. We believe that this type of surveying will enable us to identify targets for risk reduction,such as non-certified smelters and refineries, and will lead to effective due diligence.
In our 3TG survey for the fiscal year ended December 2023, we received responses from 100% of
our suppliers for almost all product lineups. As a result of analyzing the responses from suppliers, incases that included smelters that were not accredited by RMI, we took steps to reduce risk by changing suppliers and asking suppliers to utilize the RMAP audit program.
Recently, we are receiving surveys with Extended Mineral Reporting Template (EMRT) from our customers concerning minerals other than the 3TG such as cobalt.
In light of this situation, we are considering incorporating environmental perspectives in addition tohuman rights violations in our current policies, Basic Approach to Responsible Mineral Procurement.

Nissha Sustainability Report 2024

34-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

35. Management System and Other Certification Acquisitions
The Nissha Group's management system and other certification
status are as follows. (as of March 2024)■ Quality■ Quality
Subject Areas

ISO9001

Subject Areas

Quality

ISO13485
Medical devices

Nissha Co., Ltd.

〇 *1

Nissha Co., Ltd.

〇 *4

Nissha Precision and Technologies, Inc.

〇

Nissha Precision and Technologies, Inc.

〇 *5

Nissha Industries, Inc.

〇

Graphic Controls Acquisition Corp.

〇

Nissha Printing Communications, Inc.

〇

Lead-Lok, Inc.

〇

Nissha F8, Inc.

〇 *3

CEA Medical Manufacturing, Inc.

〇

Nissha Business Service, Inc.

〇

Sequel Special Products, LLC〇

Nissha FIS, Inc.

〇

Nissha Medical Technologies (Ohio), Inc.

〇

Nissha Metallizing Solutions N.V.

〇

Nissha Medical Technologies SAS〇

Nissha Metallizing Solutions S.r.l.

〇

Nissha Medical Technologies Ltd.

〇

Nissha Metallizing Solutions GmbH〇CEA Global Dominicana, S.R.L.

〇

Nissha Metallizing Solutions Ltd.

〇

Isometric by Nissha Medical Technologies〇

Nissha Metallizing Solutions Produtos Metalizados Ltda〇

Nissha (Kunshan) Precision IMD Mold Co., Ltd.

〇

Nissha Advanced Technologies Europe GmbH〇

Guangzhou Nissha High Precision Plastics Co., Ltd.

〇

Nissha Back Stickers International〇

Nissha Precision Technologies Malaysia Sdn. Bhd.

〇

Nissha SB Poland Sp.zo.o.

〇*4. For departments related to BS Probe Holder EX in Global Headquarters.

Nissha (Kunshan) Precision IMD Mold Co., Ltd.

〇

*5. For departments related to BS Probe Holder EX products at Kyoto (production base).

Guangzhou Nissha High Precision Plastics Co., Ltd.

〇

Nissha Precision Technologies Malaysia Sdn. Bhd.

〇

*2

■ Quality*1. Only obtained at sales, purchasing, design and development, production and logistics
departments of Industrial Materials Business Unit, Devices Business Unit and RB

Subject Areas

Business and Product Development in Global Headquarters, Tokyo Division Headquarters
and Kameoka Factory.
*2. Obtained at the Himeji Factory and Kyoto (production base).
*3. Obtained at the Kyoto studio.

Nissha Co., Ltd.

ISO22716
Cosmetics〇 *6*6. Obtained for the production of microneedle patch for cosmetics in the PCBU Production
department of the New Business Development Office at the Global Headquarters.

Nissha Sustainability Report 2024

35-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

SocialThird Party
Verification

Environment■ Quality

Human
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities■ Environment
Subject Areas

IATF16949〇 *7

Nissha Precision and Technologies, Inc.

〇 *8

Nissha Eimo Technologies〇

Nissha PMX Technologies, S.A. de C.V.

〇

Nissha Advanced Technologies Europe GmbH〇

Nissha (Kunshan) Precision IMD Mold Co., Ltd.

〇Guangzhou Nissha High Precision Plastics Co., Ltd.

〇

Nissha Precision Technologies Malaysia Sdn. Bhd.

〇

*7. For the support departments related to the touch sensor module for automotive in
Global Headquarters and Kameoka Factory.
*8. Obtained at the Himeji Factory and Kyoto (production base).

Governance

GRI Standards Content
Index / ESG Data

■ Energy
Subject Areas

Automotive

Nissha Co., Ltd.

Quality Management / Efficiency
and Productivity Improvement

ISO14001
Environment

Nissha Co., Ltd.
Global Headquarters〇

Nissha Industries, Inc.
Headquarters / Koka Factory〇

Nissha Precision and Technologies, Inc.
Headquarters / Himeji Factory〇

Kaga Factory〇

Tsu (production base)〇Kyoto (production base)〇*9

Subject Areas

ISO50001
EnergyNissha Metallizing Solutions S.r.l.

〇

Nissha Metallizing Solutions GmbH〇

Nissha Advanced Technologies Europe GmbH〇■ Occupational health and safety
ISO45001
Subject Areas

Occupational
health and safety

Nissha FIS, Inc.

〇

Nissha Business Service, Inc.

〇

Nissha Metallizing Solutions S.r.l.

〇

Nissha PMX Technologies, S.A. de C.V.

〇

Nissha Metallizing Solutions Produtos Metalizados Ltda〇

Nissha Metallizing Solutions S.r.l.

〇

Nissha Metallizing Solutions GmbH〇

Nissha Metallizing Solutions Produtos Metalizados Ltda〇

Nissha Medical Technologies SAS〇

Nissha Advanced Technologies Europe GmbH〇

Nissha (Kunshan) Precision IMD Mold Co., Ltd.

〇Guangzhou Nissha High Precision Plastics Co., Ltd.

〇

Nissha Precision Technologies Malaysia Sdn. Bhd.

〇

*9. Obtained at administration departments and design and product development departments.

Nissha Sustainability Report 2024

35-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

SocialThird Party
Verification

Environment■ Information security

Human
RightsHuman
Resources

Nissha Co., Ltd.
Global Headquarters

Information
security〇

Tokyo Division Headquarters〇

Nagoya Sales Office〇

Kameoka Factory〇

Nissha Industries, Inc.
Headquarters / Koka Factory
Kameoka Factory
Nissha Precision and Technologies, Inc.
Headquarters / Himeji Factory

Quality Management / Efficiency
and Productivity Improvement

GRI Standards Content
Index / ESG Data

Governance■ Others
ISO27001

Subject Areas

Fair Operating Practices/ Local Communities

Governance

〇
〇 *10
〇

Subject Areas

FSC COC

Nissha Co., Ltd.

〇

Nissha Printing Communications, Inc.
Headquarters〇

Osaka Sales Offie〇

Tokyo Sales Office〇

Kameoka Factory

〇

PEFC

EN15593

EC93/42/EEC*11

Nissha Metallizing Solutions N.V.

〇

Nissha Metallizing Solutions S.r.l.

〇〇

Nissha Metallizing Solutions GmbH〇〇

Nissha Metallizing Solutions Ltd.

〇

Nissha Metallizing Solutions Produtos Metalizados Ltda

〇

〇

〇

Graphic Controls Acquisition Corp.

〇

Tsu (production base)〇Nissha Medical Technologies Ltd.

〇

Kyoto (production base)〇*11. For paper purchasing departments in Nissha Co., Ltd.

Kaga Factory

Nissha FIS, Inc.

〇

Nissha Printing Communications, Inc.
Headquarters〇

Osaka Sales Offie〇

Tokyo Sales Office〇

Kameoka Factory〇 *10

Nissha F8, Inc.
Tokyo Studio〇Kyoto Studio〇Nissha Business Service, Inc.

〇

*10. Certification is included in the Kameoka Factory of Nissha Co., Ltd.

Nissha Sustainability Report 2024

35-3

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Third Party
Verification

Environment

SocialHuman
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

36. GRI Standards Content Index
Nissha Sustainability Report 2024 refers to GRI Sustainability Reporting Standards. The relationshipbetween the standards and the content of our report are as shown in the table below. Unless otherwise specified, the location indicate the pages of Nissha Sustainability Report 2024.
GRI Standards

Disclosure Item

Location of Nissha Information Posted

GRI Standards

Disclosure Item
Chair of the highest governancebody

25-3 Directors of the Board and the Board of Directors > Roleof the Board of Directors

25-4

2-12

Role of the highest governance body 3-1 Nissha Philosophy, 3-2 Sustainability Vision (long-termin overseeing the management ofvision for 2030), 3-3 Promotion Framework for Sustainability,
impacts
3-4 Materialities (Key Issues) and KPIs

3-1

Pages
on PDF

13-5 Relationship with Labor Union

1. The organization and its reporting practices
2-1

Organizational details

Website About > Company Outline
Website About > Nissha Group

2-2

Entities included in theorganizationʼs sustainability
reporting

1-4 Scope of Reporting

1-2

1-6 Major Changes in Reporting Scope

1-2

Reporting period, frequency andcontact point

1-3 Publication Dates

1-1

1-7 Publishing Division and Contact for Inquiries

1-2

2-4

Restatements of information

15-3 Foreign Employees in Active Roles

15-3

2-5

External assurance

8. Third Party Verification8

2-6

Activities, value chain and otherbusiness relationships

1. Editorial Policy

1-1

21. Partnership with Our Suppliers

21-1

2. Activities and workers

Website About > Company Outline
Website About > Nissha's Business
Website Business > By Industry
2-7

Employees

15-1 Nissha Group Employee Composition

2-8

Workers who are not employees

-

15-1

26, 273-2

2-14

Role of the highest governance body 3-3 Promotion Framework for Sustainability
in sustainability reporting

3-2

2-15

Conflicts of interest

25-4

2-16

Communication of critical concerns 3-3 Promotion Framework for Sustainability

25-2 Overview of Corporate Governance25-3 Directors of the Board and the Board of Directors > Roleof the Board of Directors
Website > Investors > IR Library > Securities Report (only in Japanese)

27. Internal Control System
28-5 Promotion of Corporate Ethics and Compliance28-4

25-3 Directors of the Board and the Board of Directors > The
skill set necessary for the Board of Directors, and the values,
experiences, and skills in common required for all Directors

25-3

2-18

Evaluation of the performance ofthe highest governance body25-3 Directors of the Board and the Board of Directors > Policy 25-2
and Procedures for Appointment/Dismissal of Directors of theBoard, Evaluation of Effectiveness of the Board of Directors,
Reasons for Appointment and Board of Directors Meeting
Attendances in FY ended December 2023

2-19

Remuneration policies

25-6 Compensation of Directors of the Board and Audit andSupervisory Board Members

2-20

Process to determine remuneration

25-2 Overview of Corporate Governance25-1

Website > Investors > IR Library > Nissha Report 2024 p76

25-3 Directors of the Board and the Board of Directors, 25-4
Nomination and Compensation Committee

25-2

Website > Investors > IR Library > Securities Report (only in Japanese)

3-3 Promotion Framework for Sustainability

2-10

Nomination and selection of thehighest governance body26, 27

Collective knowledge of the highest
governance body25-6 Compensation of Directors of the Board and Audit andSupervisory Board Members

Governance structure andcomposition

3-2

2-17

3-2

2-9

25-1

25-9

Website > Investors > IR Library > Securities Report (only in Japanese)

3. GovernanceNissha Sustainability Report 2024

27. Internal Control System
3-3 Promotion Framework for Sustainability

Delegation of responsibility for
managing impacts

Website > Investors > IR Library > Securities Report (only in Japanese)
2-3

13-3

2-13
1-1

1-5 Major Affiliated Companies and Businesses

Pages
on PDF

2-11

General Disclosures

GRI 2: General
Disclosures 2021

Location of Nissha Information Posted

25-9

36-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

GRI Standards

Disclosure Item
2-21

Third Party
Verification

Environment

SocialHuman
RightsLocation of Nissha Information Posted

Human
Resources

Pages
on PDF

Annual total compensation ratio

-

2-22

Statement on sustainable
development strategy

2. CEO Message

2

2-23

Policy commitments

3-1 Nissha Philosophy

3-1

4. Environmental Policy and Management Structures

4-1

13-1 Basic Policy

13-1

27. Internal Control System

26, 27

Embedding policy commitments

28-2 Guidelines

28-2

7. CO2 Emissions and Reduction Efforts

7-1

13-3 Initiatives Related to Labor and Human Rights

13-2

27. Internal Control System

26, 2728-5 Promotion of Corporate Ethics and Compliance

28-4

2-25

Processes to remediate negative
impacts

28-6 Hotline

28-5

2-26

Mechanisms for seeking advice andraising concerns

13-4 Harassment Prevention

13-3

28-6 Hotline

28-5

2-27

Compliance with laws andregulations

10. Management of Chemical Substances and Environmental
Risks

10-1

12. Environmental Objectives and Status of Achievement(Nissha Group in Japan)

12-1

21-4 CSR Audit and Labor and Human Rights Risk Survey

21-2

31. Anti-corruption

31

3-5-1 Initiatives in Which Nissha Participate

3-8

22-3 Membership in Community Organizations (Nissha)

22-2

2-28

Membership associations

Fair Operating Practices/ Local Communities

GRI Standards

Quality Management / Efficiency
and Productivity Improvement

Disclosure Item

Governance

GRI Standards Content
Index / ESG Data

Location of Nissha Information Posted

GRI 3: Material Topics
2021

3-1

Process to determine material topics 3-4-1 Materiality Identification

3-3
3-3

3-2

List of material topics

3-4 Materialities (Key Issues) and KPIs

3-3

Management of material topics

3-4-1 Materiality Identification
3-3
4. Environmental Policy and Management Structures
4-1
6. Responding to Climate Change (Addressing the TCFD
6-1
Recommendations)
12. Environmental Objectives and Status of Achievement
12-1(Nissha Group in Japan)
13-1 Basic Policy, 13-2 Structure, 13-3 Initiatives Related to 13-1
Labor and Human Rights
14-1 Policy, 14-2 Human Resources System (Scope: Nissha
14-1
Group in Japan), 14-3 ESG Task Force Initiatives, 14-4 TalentManagement System
16-2 Training Systems, 16-3 Support for Employees' Voluntary 16-2
Desires to Learn and Grow, 16-4 Career Planning Support,
16-6 In-House Training Programs
18-1 Policy and Principles, 18-2 Safety and Health
18-1Management System
21-1 Basic Policy > CSR Procurement Guidelines
21-1
23-1 Policy / Nissha Quality Way
23-1
27. Internal Control System
26, 2728. Risk Management and Compliance
28-1
29. Information Security
29-1
30. Trade Management
30-1
32. Business Continuity
32-1
33. Tax Principle
33

201-1

Direct economic value generated
and distributed

Website > Investors > IR Library > Securities Report (only inJapanese)

201-2

Financial implications and other risks 4-3 Environmental Management System (EMS)
and opportunities due to climate
6. Responding to Climate Change (Addressing the TCFD
changeRecommendations)

Economic
Economic performance

5. Stakeholder engagement

GRI 201: Economic
Performance 2016

28. Risk Management and Compliance2-29

Approach to stakeholder
engagement

3-6 Nissha Group Stakeholders

3-11

2-30

Collective bargaining agreements

13-5 Relationship with Labor Union

13-3

Nissha Sustainability Report 2024

Pages
on PDF

Material Topics

4. Strategy, policies and practices

2-24

Governance

4-2
6-1

28-1

Website > Investors > IR Library > Securities Report (only inJapanese)

36-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

GRI Standards

Disclosure Item
201-3

201-4

Third Party
Verification

Environment

SocialHuman
RightsLocation of Nissha Information Posted

Defined benefit plan obligations and 17-15 Retirement Pay Systemother retirement plans
Website > Investors > IR Library > Securities Report (only inJapanese)
Financial assistance received fromgovernment

Human
Resources

Pages
on PDF

Fair Operating Practices/ Local Communities

GRI Standards

17-6

202-1

Ratios of standard entry level
wage by gender compared to local
minimum wage

-

202-2

Proportion of senior management
hired from the local community

15-1 Nissha Group Employee Composition

203-1

203-2

15-1

GRI 301：Materials
2016

Infrastructure investments andservices supported

-

204-1

205-1
205-2

Significant indirect economic
impacts-

GRI 302：Energy
2016

Proportion of spending on local
suppliers

Operations assessed for risks related to corruption
Communication and training
about anti-corruption policies andprocedures

28. Risk Management and Compliance

28-1

31. Anti-corruption

31

205-3

Confirmed incidents of corruption
and actions taken

31. Anti-corruption

31

206-1

Legal actions for anti-competitive
behavior, anti-trust, and monopoly
practices

n/a

207-1

Approach to tax

33. Tax Principle

Tax governance, control, and risk
management

33. Tax Principle

33

207-3

Stakeholder engagement and
33. Tax Principle
management of concerns related to
tax

33

207-4

Country-by-country reporting

-

301-1

Materials used by weight or volume

5. Impact on the Environment out of Our Business Operations

301-2

Recycled input materials used

-

301-3

Reclaimed products and theirpackaging materials

-

302-1

Energy consumption within theorganization

5. Impact on the Environment out of Our Business Operations
7. CO2 Emissions and Reduction Efforts

7-1

302-2

Energy consumption outside of theorganization

7-6 Initiative in Scope 3 Management

7-3

302-3

Energy intensity

7. CO2 Emissions and Reduction Efforts

7-1

302-4

Reduction of energy consumption

5. Impact on the Environment out of Our Business Operations

5-1

7. CO2 Emissions and Reduction Efforts

7-1

302-5

Reductions in energy requirements
of products and services

-

303-1

Interactions with water as a sharedresource

11-3 Understanding Water Stress Areas, 11-4 Management of 11-1
Water Intake and Wastewater, 11-5 Initiatives for Appropriate
Water Use, 11-6 Water Data

303-2

Management of water dischargerelated impacts

10-6 Prevention of Water Pollution

10-5

11-1 Basic Concept, 11-3 Understanding Water Stress Areas,
11-4 Management of Water Intake and Wastewater

11-1

5. Impact on the Environment out of Our Business Operations

5-1

11-6 Water Data

11-2

Nissha Sustainability Report 2024

5-1

33

5-1

Water and effluentsGRI 303：Water andEffluents 2018

303-3

Tax
GRI 207: Tax 2019

Pages
on PDF

207-2-

Anti-competitive behavior
GRI 206：Anticompetitive Behavior
2016

Location of Nissha Information Posted

EnergyAnti-corruption
GRI 205：Anticorruption 2016

GRI Standards Content
Index / ESG Data

Materials

Procurement practices
GRI 204：
Procurement Practices
2016

Governance

Environmental

Indirect economic impacts
GRI 203：Indirect
Economic Impacts
2016

Quality Management / Efficiency
and Productivity Improvement

Disclosure Item-

Market presenceGRI 202：Market
Presence 2016

Governance

Water withdrawal

36-3

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

GRI Standards

Disclosure Item
303-4

Third Party
Verification

Environment

Water discharge

SocialHuman
RightsLocation of Nissha Information Posted

Human
Resources

Pages
on PDF

5. Impact on the Environment out of Our Business Operations

5-1

10-6 Prevention of Water Pollution

10-5

11-6 Water Data

11-2

303-5

Water consumption

-

304-1

Operational sites owned, leased,managed in, or adjacent to,protected areas and areas of highbiodiversity value outside protected
areas

-

GRI Standards

Quality Management / Efficiency
and Productivity Improvement

Disclosure Item
305-7

GRI 306：Waste 2020

304-2

Significant impacts of activities,
products and services on biodiversity

Governance

GRI Standards Content
Index / ESG Data

Location of Nissha Information Posted

Nitrogen oxides (NOx), sulfur oxides 5. Impact on the Environment out of Our Business Operations(SOx), and other significant air
emissions
7-3 Trends in CO2 Emissions and Energy Consumption, etc.

Pages
on PDF
5-1
7-2

10-8 Prevention of Air Pollution

10-7

306-1

Waste generation and significant
waste-related impacts

9-2 Risk Management Related to Waste and Waste Converted
in Valuable Resources

9-1

306-2

Management of significant wasterelated impacts

9-2 Risk Management Related to Waste and Waste Converted
in Valuable Resources

9-1

306-3

Waste generated

5. Impact on the Environment out of Our Business Operations

5-1

9-1 Total Amount of Waste Generated by Nissha Group

9-1

306-4

Waste diverted from disposal

5. Impact on the Environment out of Our Business Operations

5-1

9-1 Total Amount of Waste Generated by Nissha Group

9-1

306-5

Waste directed to disposal

5. Impact on the Environment out of Our Business Operations

5-1

9-1 Total Amount of Waste Generated by Nissha Group

9-1

10. Management of Chemical Substances and Environmental
Risks

10-1

12. Environmental Objectives and Status of Achievement(Nissha Group in Japan)

12-1

21-4 CSR Audit and Labor and Human Rights Risk Survey

21-2

304-3

Habitats protected or restored

-

304-4

IUCN Red List species and national
conservation list species with
habitats in areas affected byoperations

-

305-1

Direct (Scope 1) GHG emissions

5. Impact on the Environment out of Our Business Operations

5-1

7. CO2 Emissions and Reduction Efforts

7-1

305-2

Energy indirect (Scope 2) GHG
emissions

5. Impact on the Environment out of Our Business Operations

5-1

7. CO2 Emissions and Reduction Efforts

7-1

5. Impact on the Environment out of Our Business Operations

5-1

Supplier environmental assessment

7. CO2 Emissions and Reduction Efforts

7-1

5. Impact on the Environment out of Our Business Operations

5-1

GRI 308：Supplier
Environmental
Assessment 2016

7. CO2 Emissions and Reduction Efforts

7-1

5. Impact on the Environment out of Our Business Operations

5-1

7. CO2 Emissions and Reduction Efforts

7-1

Emissions
GRI 305：Emissions
2016

Fair Operating Practices/ Local Communities

Waste

Biodiversity
GRI 304：Biodiversity
2016

Governance

Environmental compliance

305-3

Other indirect (Scope 3) GHG
emissions305-4

GHG emissions intensity

305-5

Reduction of GHG emissions

305-6

Emissions of ozone-depleting
substances (ODS)

Nissha Sustainability Report 2024-

GRI 307：
Environmental
Compliance 2016

307-1

Non-compliance withenvironmental laws and regulations

308-1

New suppliers that were screenedusing environmental criteria

-

308-2

Negative environmental impacts inthe supply chain and actions taken

12. Environmental Objectives and Status of Achievement(Nissha Group in Japan)

12-1

21-1 Basic Policy, 21-2 Maintaining Purchasing Related Rules, 21-1
21-3 Nissha Group Supply Chain, 21-4 CSR Audit and Laborand Human Rights Risk Survey

36-4

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

GRI Standards

Environment

Disclosure Item

Third Party
Verification

SocialHuman
RightsLocation of Nissha Information Posted

Human
Resources

Pages
on PDF

SocialFair Operating Practices/ Local Communities

GRI Standards

Quality Management / Efficiency
and Productivity Improvement

Disclosure Item

401-1

New employee hires and employee
turnover15-1 Nissha Group Employee Composition

15-1

401-2

Benefits provided to full-time
employees that are not provided totemporary or part-time employees

-

401-3

Parental leave

17-4 Child-Rearing and Family Care Support

17-2

Minimum notice periods regarding
operational changes

13-5 Relationship with Labor Union

13-3

GRI 404：Training and
Education 2016

Location of Nissha Information Posted

Pages
on PDF

Average hours of training per year
per employee

16-5 Training Records

16-3

404-2

Programs for upgrading employee
skills and transition assistanceprograms

14-4 Talent Management System

14-3

15-4 Promotion of Women's Advancement

15-3

16. Human Resources Development

16-1

17-11 Internal Job Posting System、17-12 Awarding system(Nissha Group)、17-13 Career Resumption Program

17-5

402-1

20-2 Initiatives > Training

20

21-5 Development of Procurement Personnel

21-3

29-5 Training

29-2

30-5 Training

30-2

Percentage of employees receiving
regular performance and careerdevelopment reviews

14-5 Fair Evaluation and Treatment (Scope: Nissha Group in
Japan)

14-3

Diversity of governance bodies andemployees

15-1 Nissha Group Employee Composition

15-1

Occupational health and safety
GRI 403：
Occupational Healthand Safety 2018

GRI Standards Content
Index / ESG Data

404-1

Labor/management relations
GRI 402：Labor/
Management
Relations 2016

GovernanceTraining and education

Employment
GRI 401：Employment
2016

Governance403-1

Occupational health and safety
management system

18-1 Policy and Principles, 18-2 Safety and HealthManagement System

18-1

403-2

Hazard identification, risk
assessment, and incident
investigation

18-1 Policy and Principles, 18-2 Safety and HealthManagement System, 18-3 Initiatives for FY2023

18-1

32-3 Initiatives > Risk Surveys

32-3

Diversity and equal opportunity

403-3

Occupational health services

18-1 Policy and Principles, 18-2 Safety and HealthManagement System, 18-3 Initiatives for FY2023

18-1

403-4

Worker participation, consultation,and communication on
occupational health and safety

18-1 Policy and Principles, 18-2 Safety and HealthManagement System, 18-3 Initiatives for FY2023

18-1

GRI 405：Diversity
and Equal Opportunity
2016

403-5

Worker training on occupational
health and safety

18-5 Safety and Health Education and Training

18-3

403-6

Promotion of worker health19. Health and Productivity Management

19-1

403-7

Prevention and mitigation ofoccupational health and safety
impacts directly linked by business
relationships

18-1 Policy and Principles, 18-2 Safety and HealthManagement System, 18-3 Initiatives for FY2023

18-1

403-8

Workers covered by an occupational
18-1 Policy and Principles, 18-2 Safety and Healthhealth and safety management system Management System

18-1

403-9

Work-related injuries

18-4 Occurrence of Occupational Accidents

18-2

403-10Work-related ill health18-4 Occurrence of Occupational Accidents

18-2

Nissha Sustainability Report 2024

404-3

405-1

25-3 Directors of the Board and the Board of Directors > The 25-3
skill set necessary for the Board of Directors, and the values,
experiences, and skills in common required for all Directors,
25-7 Corporate Officers > Diversity of Corporate Officers (as ofJanuary 1, 2024)
405-2

Ratio of basic salary andremuneration of women to men

14-6 Wage Management

406-1

Incidents of discrimination andcorrective actions taken

-

14-3

Non-discrimination
GRI 406：Nondiscrimination 2016

Freedom of association and collective bargaining
GRI 407：Freedomof Association andCollective Bargaining
2016

407-1

Operations and suppliers in which
the right to freedom of associationand collective bargaining may be atrisk

13-5 Relationship with Labor Union

13-3

21-1 Basic Policy, 21-2 Maintaining Purchasing Related Rules, 21-1
21-3 Nissha Group Supply Chain, 21-4 CSR Audit and Laborand Human Rights Risk Survey

36-5

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

GRI Standards

Environment

Disclosure Item

Third Party
Verification

SocialHuman
RightsLocation of Nissha Information Posted

Human
Resources

Pages
on PDF

Child labor
GRI 408：Child Labor
2016

GovernanceFair Operating Practices/ Local Communities

GRI Standards

Quality Management / Efficiency
and Productivity Improvement

Disclosure Item

Governance

GRI Standards Content
Index / ESG Data

Location of Nissha Information Posted

Pages
on PDF

Supplier social assessment
408-1

Operations and suppliers at
significant risk for incidents of childlabor

13-1 Basic Policy, 13-3 Initiatives Related to Labor andHuman Rights

13-1

GRI 414：SupplierSocial Assessment
201621-1 Basic Policy, 21-2 Maintaining Purchasing Related Rules, 21-1
21-3 Nissha Group Supply Chain, 21-4 CSR Audit and Laborand Human Rights Risk Survey

414-1

New suppliers that were screenedusing social criteria

-

414-2

Negative social impacts in the supply 21-1 Basic Policy, 21-2 Maintaining Purchasing Related Rules, 21-1
chain and actions taken
21-3 Nissha Group Supply Chain, 21-4 CSR Audit and Laborand Human Rights Risk Survey

Forced or compulsory labor
GRI 409：Forced orCompulsory Labor
2016

409-1

Operations and suppliers at
13-1 Basic Policy, 13-3 Initiatives Related to Labor and13-1
significant risk for incidents of forced Human Rights
or compulsory labor21-1 Basic Policy, 21-2 Maintaining Purchasing Related Rules, 21-1
21-3 Nissha Group Supply Chain, 21-4 CSR Audit and Laborand Human Rights Risk Survey

Security practices
GRI 410：Security
Practices 2016

410-1

34. Responsible Mineral Procurement

GRI 415：Public Policy
2016

Rights of indigenous peoples
GRI 411：Rights ofIndigenous Peoples 2016

411-1

Incidents of violations involving
rights of indigenous peoples-

Operations that have been subject
to human rights reviews or impact
assessments

13-3 Initiatives Related to Labor and Human Rights

13-2

21-4 CSR Audit and Labor and Human Rights Risk Survey

21-2

412-2

Employee training on human rights
policies or procedures

-

412-3

Significant investment agreements
and contracts that include humanrights clauses or that underwent
human rights screening

-

412-1

GRI 417：Marketingand Labeling 2016

GRI 418：Customer
Privacy 2016
413-1

413-2

Operations with local community
engagement, impact assessments,
and development programs-

Operations with significant actualand potential negative impacts on
local communities-

Nissha Sustainability Report 2024

-

416-1

Assessment of the health and safety impacts of product and service
categories

416-2

Incidents of non-complianceconcerning the health and safety
impacts of products and services

23-6 Quality and Safety of Products

417-1

Requirements for product andservice information and labeling

-

417-2

Incidents of non-complianceconcerning product and service
information and labeling

-

417-3

Incidents of non-complianceconcerning marketing
communications

-

418-1

Substantiated complaints
concerning breaches of customer
privacy and losses of customer data-Non-compliance with laws andregulations in the social andeconomic area

-

23-5

Customer privacy

Local communities
GRI 413：Local
Communities 2016

Political contributions

Marketing and labeling

Human rights assessment
GRI 412：Human
Rights Assessment
2016

415-1

Customer health and safety
GRI 416：Customer
Health and Safety
2016

Security personnel trained in human rights policies or procedures

34-1

Public policy

Socioeconomic compliance
GRI 419：
Socioeconomic
Compliance 2016

419-1

36-6

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

GRI Standards Content
Index / ESG Data

Governance

37. ESG Data
The ESG Data is a compilation of quantitative information shown in Nissha Sustainability Report andsome additional information. The data for the five years from FY2019 to FY2023 are collected for eachtheme. In addition, a list of policies, principles and guidelines is posted at the end of this document.
* In the boundary, Nissha Co., Ltd. is described as “ Nissha" and the entire group companies including Nissha Co., Ltd. is describedas “Nissha Group”. In addition, domestic companies within the "Nissha Group" are referred to as “Nissha Group in Japan”. Individual company names are abbreviated as below, and the grouping of production bases in Japan or overseas are stated accordingly.
•NII: Nissha Industries, Inc.

•NPT: Nissha Precision and Technologies, Inc.

Unit

Boundary

FY2019FY2020

FY2021

FY2022

FY2023

5. Impact on the Environment out of Our Business Operations
Total inputtNissha Group

101,398

114,036 127,430 123,982

85,273

Total input (production bases in Japan)t

Production basesin Japan

19,612

20,482

22,981

19,114

16,466

PET/acryl film

Industrial Materialst

Production basesin Japan

1,123

978

1,165

1,057

805

Solvents

Industrial Materialst

Production basesin Japan

841

686

843

748

735

Ink

Industrial Materialst

Production basesin Japan

751

671

742

705

616

Resin

Industrial Materialst

Production basesin Japan

n/a

n/a

117

160

219

Materials used in manufacturing processes

Devicest

Production basesin Japan

10,702

12,103

13,72911,244

4,801

Chemical subsutances

Devicest

Production basesin Japan

n/a

n/a

n/a

n/a

4,823

t

Production basesin Japan

n/a

n/a

n/a

n/a

553

Packing materials

DevicesNissha Sustainability Report 2024

Unit

Boundary

FY2019FY2020

FY2021

FY2022

FY2023

1,621

1,849

1,589

900

n/a

55

73

71

OthersDevicest

Production basesin Japan

Product materials

Medical Technologies*1tProduction basesin Japan

n/a

n/a

Paper

Others*2t

Production basesin Japan

4,348

3,958

4,424

3,764

3,513

Ink

Others*2t

Production basesin Japan

47

42

47

40

38

*1. Starting in the fiscal year ended December 2021, we added input data from the domestic Japanese Medical Technologies business.
*2. Posted as "Information and Communication" until Nissha Sustainability Report 2021.

Environment
Items

Items

Total input (Overseas production bases)tOverseas
production bases

81,786

93,553 104,449 104,868

68,807ResintOverseas
production bases

1,636

1,290

4,506

6,075

5,887

Molds and their materialstOverseas
production bases

85

90

120

113

115

Touch sensorstOverseas
production bases

0

0

0

0

0

Paper

t

Overseas
production bases

69,63078,391

88,131

88,31855,185

CardboardstOverseas
production bases

1,391

1,752

1,073

123

1,263

AluminumtOverseas
production bases

140

2,594

2,218

1,991

1,163

Chemical substancestOverseas
production bases

5,204

6,560

6,105

6,551

3,368

OtherstOverseas
production bases

1,571

1,031

568

1,438

104

Electricity

MWhProduction basesin Japanand overseas

274,593

Gas

Thousand m3

Production basesin Japanand overseas

11,585

Energy257,464 264,973 250,732 217,027

9,085

10,558

10,485

10,02937-1

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Items

Environment

SocialThird Party
Verification

Items

1,291

1,287

1,249

993

912

CO2 emissions basic unit of net sales

Underground water

Thousand m3

Production basesin Japanand overseas

103

40

46

49

42

Industrial water

Thousand m3

Production basesin Japanand overseas* Up until FY 2019, CO2 emission coefficients were fixed values. However, in FY2020 and beyond, these are derived from data calculated using
market-based method for Japan and location-based method for overseas.
*1. These are derived from data calculated using market-based method for Japan and location-based method for overseas.

1,943

1,725

1,670

1,549

1,282

Total output (production bases in Japan)t

Production basesin Japan

16,437

18,53817,465

13,606

11,057

Recyclable resources (items sold for recycling)t

Production basesin Japan

5,877

6,406

5,743

4,203

3,560

Recyclable resources (industrial waste)t

Production basesin Japan

10,537

12,105

11,697

9,380

7,470

Waste for simple incineration/landfilltProduction basesin Japan

23

27

25

22

27

t

Overseas
production bases

9,156

11,397

13,121

13,601

9,784

t

Overseas
production bases

7,272

8,433

9,838

10,904

7,407

Recyclable resources (industrial waste)tOverseas
production bases

666

1,369

1,335

877

615

Non-recyclable wastetOverseas
production bases

1,218

1,595

1,948

1,819

1,762

t

Production basesin Japanand overseas

808

700

826

752

681

Thousand m3

Production basesin Japanand overseas

3,305

3,033

2,594

2,342

2,002

t-CO2

Production basesin Japanand overseas

26,603t-CO2

Production basesin Japanand overseas

152,399

Total

t-CO2

Production basesin Japan
147,266*1
and overseas

124,204 125,244 114,691 100,963

Production bases in Japan

t-CO2

Production bases
106,788*1
in Japan

85,57083,65264,806

61,388Overseas production bases

t-CO2

Overseas
production bases

38,634

41,592

49,88539,575

Scope 1, CO2 emissions

Scope 2, CO2 emissions

CO2 emissions

Nissha Sustainability Report 2024

24,19628,435

FY2020

FY2021

FY2022

FY20230.85*1

0.69

0.66

0.59

0.60

n/a

n/a

n/a

50,616*t-CO2

Overseas

n/a

n/a

n/a

97,144 investigation

Capital goods

t-CO2

-

n/a

n/a

n/a

17,126 investigation

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

t-CO2

-

n/a

n/a

n/a

15,684 investigation

t-CO2

Domestic

t-CO2

Overseas

t-CO2

Domestic

Upstream transportationand distribution of shipments

Under

Under

Under

4,272*
48,68245,646

18,603

4,553

19,72017,766

n/a

n/a

n/a

38,891*

4,368*
Under

10,341 investigation
7,398*

6,561*

Under
19,296 investigation

t-CO2

Overseas

Waste generated in operations

t-CO2

-

Business travelt-CO2

Domestic

1,214

293

281

579*

638*

Employee commuting

t-CO2

Domestic

2,347

2,244

2,204

2,261*

2,038**

10,370*417

Use of sold products
End of life treatment ofsold products

20,853

FY2019Domestic

Upstream transportationand distribution of purchased products

7. CO2 Emissions and Reduction Efforts

Boundary
Production basesin Japanand overseas

t-CO2

Purchased goods andservices

Scope 3, CO2 emissions

Unit
t-CO2/
Millionyen

GRI Standards Content
Index / ESG Data

Thousand m3

Wastewater

FY2023GovernanceTap water

VOC

FY2022

Quality Management / Efficiency
and Productivity Improvement

Boundary

Recyclable resources (items sold for recycling)

FY2021

Fair Operating Practices/ Local Communities

Production basesin Japanand overseas

Total output (Overseas production bases)

FY2020

Human
Resources

Unit

Water

FY2019Human
RightsGovernance

25,609Under

4,462 investigation

t-CO2

-

n/a

n/a

n/a

7,739

t-CO2

Domestic

n/a

n/a

n/a

535

t-CO2

Overseas

n/a

n/a

n/a

Under
4,091 investigation* Some of these figures include those certified by a third party.

40,478*1

103,351 101,048

86,25575,354

Energy consumption

Total

Thousand GJ

Production basesin Japanand overseas

3,266

2,966

3,124

2,662

2,032

Production bases in Japan

Thousand GJ

Production basesin Japan

2,208

1,999

2,040

1,607

1,256

Overseas production bases

Thousand GJ

Overseas
production bases

1,058

967

1,084

1,055

775

37-2

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Items

Energy consumption basic unit of net sales

Electricity consumption

Gas consumption

Unit

Boundary

Third Party
Verification

FY2019

ThouProduction bases
sand GJ/
in JapanMillionand overseas
yen0.0189274,593

Human
Rights

FY2020Items

Governance

GRI Standards Content
Index / ESG Data

Boundary

FY2019FY2020

FY2021

FY2022

FY2023

SS

mg/l

1.6

1.9

2.6

1.1

0.9

N-hexanemg/l

NPT Himeji
Factory

<0.5

<0.5

<0.5

<0.5

<0.5

257,464 264,973 250,732 217,027

Phenolmg/l

NPT Himeji
Factory<0.005<0.005<0.005<0.005<0.0050.0137

FY2023

Quality Management / Efficiency
and Productivity Improvement

NPT Himeji
Factory0.0165

FY2022

Fair Operating Practices/ Local Communities

Unit

0.0165

FY2021

Human
Resources

Governance0.0121

Total

MWh

Production basesin Japanand overseas

Production bases in Japan

MWh

Production basesin Japan

197,029

183,200 182,488 158,335 140,384

Coppermg/l

NPT Himeji
Factory

0.04

0.05

0.02

0.01

0.01

Overseas production bases

MWhOverseas
production bases

77,56374,264

82,48592,39776,644Zinc

mg/l

NPT Himeji
Factory

<0.01

<0.01

<0.01

<0.01

<0.01

Total

Thousand m3

Production basesin Japanand overseas

11,585

9,085

10,558

10,485

10,029Soluble ironmg/l

NPT Himeji
Factory

0.02

0.03

0.03

0.03

0.01

Thousand m3

Production basesin JapanSoluble manganese

mg/l

0.04

0.04

0.02

0.02

5,359

4,166

4,865

4,782

4,314

NPT Himeji
Factory

0.04

Production bases in Japan

Thousand m3

Overseas
production bases

Chromium

mg/l

<0.02

<0.02

<0.02

<0.02

6,226

4,919

5,694

5,703

5,714

NPT Himeji
Factory<0.02

Overseas production bases

Nitrogenmg/l

NPT Himeji
Factory

8.0

4.2

4.5

4.3

3.7

kl

Production basesin Japanand overseas

246

Phosphorus

mg/l

NPT Himeji
Factory

0.19

0.02

0.03

0.02

0.03

97

72

70

60

64

Measurements of Wastewater Quality, NPT Kaga Factory-

NPT Kaga Factory

7.5

7.5

7.4

7.6

7.5

133

151

147

133

pH

Final effluent (Average)

150

Final effluent (Maximum)-

NPT Kaga Factory

7.5

7.7

7.7

7.7

7.7

Final effluent (Average)

mg/l

NPT Kaga Factory

21.9

23.4

23.3

17.4

17.3

Final effluent (Maximum)

mg/l

NPT Kaga Factory

34.0

40.0

35.0

24.0

27.0

Final effluent (Average)

mg/l

NPT Kaga Factory

34.0

33.5

37.7

25.8

22.1
29.0

Total
Gasoline, diesel, and heavy
oil consumption

Environment

Social

Production bases in Japankl

Production basesin Japan

Overseas production bases

klOverseas
production bases

205

220

207

198

9. Waste Management
Recycling and resource reuse rate%

Nissha Group in
Japan

BOD
99.9

99.9

99.9

99.8

99.8

10. Management of Chemical Substances and Environmental Risks

COD

Measurements of Wastewater Quality, NPT Himeji Factory
Discharged waterm3

NPT Himeji
Factory

4,655

4,156

4,150

3,854

3,160

pH

-

NPT Himeji
Factory

6.9 / 7.6

6.8 / 7.5

6.9 / 7.5

6.8 / 7.4

7.1 / 7.2

BOD

mg/l

NPT Himeji
Factory

2.8

4.0

3.7

2.6

1.1

COD

mg/l

NPT Himeji
Factory

7.3

5.2

4.4

4.8

2.9

Nissha Sustainability Report 2024

SS

N-hexane

Final effluent (Maximum

mg/l

NPT Kaga Factory

47.0

47.0

44.0

36.0

Final effluent (Average)

mg/l

NPT Kaga Factory

9.1

6.3

6.0

7.7

5.7

Final effluent (Maximum)

mg/l

NPT Kaga Factory

18.0

23.0

10.0

21.0

11.0

Final effluent (Average)

mg/l

NPT Kaga Factory

0.6

0.6

0.5

0.5

0.5

Final effluent (Maximum)

mg/l

NPT Kaga Factory

0.8

0.9

0.5

0.5

0.5

37-3

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Items

Environment

Unit

Boundary

SocialThird Party
Verification

FY2019Human
Rights

FY2020

FY2021

Human
Resources

FY2022GovernanceFair Operating Practices/ Local Communities

FY2023Items

PRTR-designated chemical substances, NII Koka Factory

53 Ethylbenzene

80 Xylene

88 Hexavalent chromium
compounds

296 1,2,4-Trimethylbenzend

300 Toluene

392 N-hexane

Discharge into the atmospherekg

Transferred to industrial
waste processing companieskg

NII Koka Factory
NII Koka Factory

1,211
463

710
286

2,273
928

1,211

894

494

kg

Transferred to industrial
waste processing companieskg

NII Koka Factory

4,075

6,431

4,298

4,910

2,557

Discharge into the atmospherekg

NII Koka Factory

0.1

0.1

0.1

0.1

0.1

Transferred to industrial
waste processing companieskg

NII Koka Factory

0

0

850*

0

0

Discharge into the atmospherekg

NII Koka Factory

265

25

59

1

1

Transferred to industrial
waste processing companieskg

NII Koka Factory

95

10

24

0.3

0.3

Discharge into the atmospherekg

NII Koka Factory

100,846

61,535 106,873

57,72830,868Transferred to industrial
waste processing companieskg

NII Koka Factory

5,520

25,13443,652

23,57910,289Discharge into the atmospherekg

NII Koka Factory

4,518

601

258

0

127

Transferred to industrial
waste processing companieskg

NII Koka Factory

2,741

245

105

0

52

NII Koka Factory

9,937

15,745

10,524

12,022

6,262

272 Water-soluble copper
salts (excluding complex
salt)

Unit

Boundary

FY2019FY2020

FY2021

FY2022

FY2023

Discharge into the atmospherekg

NPT Himeji
Factory

0

0

0

0

0

Transferred to industrial
waste processing companies

kg

NPT Himeji
Factory

0

0

0

0

0

Discharge into the atmospherekg

NPT Himeji
Factory

n/a

n/a

n/a

n/a

0

Transferred to industrial
waste processing companikg

NPT Himeji
Factory

n/a

n/a

n/a

n/a

13,568.0

Discharge into the atmospherekg

NPT Kaga Factory

0

0

0

0

0

Transferred to industrial
waste processing companies

kg

NPT Kaga Factory

0

0

0

0

4,665.0

Discharge into the atmospherekg

NPT Kaga Factory

0

0

0

0

0

Transferred to industrial
waste processing companies

kg

NPT Kaga Factory

0

0

0

0

0

Discharge into the atmospherekg

NPT Kaga Factory

n/a

n/a

n/a

n/a

0

Transferred to industrial
waste processing companies

kg

NPT Kaga Factory

n/a

n/a

n/a

n/a

14,405.0*1. Not subject to notification from FY2023.
*2. Subject to notification from FY2023.
PRTR-designated chemical substances, NPT Kaga Factory

272 Water-soluble copper
salts (excluding complex
salt)

627 Diethylene glycol
monobutyl ether*2*1. Not subject to notification from FY2023. In FY2023, unnecessary materials due to factory consolidation were disposed.
*2. Subject to notification from FY2023.

Environmental accidents

Discharge into the atmospherekg

NPT Himeji
Factory

0

0

0

n/a

n/a

Transferred to industrial
waste processing companies

kg

NPT Himeji
Factory

0

0

0

n/a

n/a

Discharge into the atmospherekg

NPT Himeji
Factory

0

0

0

0

0

Transferred to industrial
waste processing companies

kg

NPT Himeji
Factory

1,352.8

1,820.2

2,677.4

2,491.4

2,588.8

Nissha Sustainability Report 2024

GRI Standards Content
Index / ESG Data

Governance

12. Environmental Objectives and Status of Achievement (Nissha Group in Japan)

PRTR-designated chemical substances, NPT Himeji Factory

71 Ferric chloride

627 Diethylene glycol
monobutyl ether*2

71 Ferric chloride*1* The increase in the transfer amount of hexavalent chromium compounds transferred in FY2021 was due to the disposal of materials no longer
needed as a result of the renewal of factory facilities.

*1

453 Molybdenum and its
compounds

364

Discharge into the atmosphere

Quality Management / Efficiency
and Productivity Improvement

NumberNissha Group in
Japan

0

0

1*1

1*2

0

*1. In FY2021, there was one chemical leak accident at the NII Koka Factory, but it did not have a significant environmental impact.
*2. In FY2022, a delivery companyʼs truck experienced a fuel leak at Nissha FIS, Inc., but it did not have a significant environmental impact.

37-4

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Human Rights
Items

Fair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

GRI Standards Content
Index / ESG Data

Governance

Human Resources
Unit

Boundary

FY2019FY2020

FY2021

FY2022Items

FY2023

Unit

Boundary

FY2019 FY2020 FY2021 FY2022 FY2023

14. Human Resources Policy and System

13. Human Rights
Harassment Help Desk number of consultations

NumberNissha Group

9

8*1

12*1

-*2

Gap between male and female in terms of wages-*2*1. As the Harassment Help Desk (outside the company) and the Hotline have been shared since January 2020, only the number of cases handled
by the internal consultation service is shown in the number of cases handled by the Harassment Help Desk in the FY2020 and FY2021.
*2. As the Harassment Help Desk (internal consultation service) and the Hotline have been shared since July 2022, the information has been consolidated into the number of cases reported to the Hotline.

Membership ofLabor Union

Governance

Total

NumberNissha Group in Japan

1,308

1,133

The Nissha Labor Union

NumberNissha Group in Japan

739

649

The Nitec Industries Labor
Union

NumberNissha Group in Japan

433

354

1,106

1,051

1,253

-

-

-

-

-

Full-time workers

Non-regular workers

-

Male

-

Nissha

n/a

n/a

n/a

100

100

Female-Nissha

n/a

n/a

n/a

76.3

75.9

Male

-

Nissha

n/a

n/a

n/a

100

100

Female-Nissha

n/a

n/a

n/a

77.7

78.1

Male

-

Nissha

n/a

n/a

n/a

100

100

Female-Nissha

n/a

n/a

n/a

56.2

60.0

* FY2022 and FY2023 are shown due to a change in the aggregation method from the fiscal year ended December 2022.

The Nissha Printing CommuniNumber
cations Labor Union

Nissha Group in Japan

136

130

-

-

* The figures show a comparison of female with a male wages set at 100.

-

* Calculated based on the regulations in the Act on Promotion of Women's Participation and Advancement in the Workplace (Act No. 64 of 2015).
* The human resources system used for full-time workers applies equally to male and female, and they are both treated the same. Differences arise* In January 2021, the Nissha Crew Alliance was organized as the single labor union of the Nissha Group in Japan, led by employees of Nissha Co.,
Ltd., Nitec Industries, Inc. (currently, Nissha Industries, Inc.) and Nissha Printing Communications, Inc.
Number of reports on strike or lockout

All workers

NumberNissha Group in Japan

0

0

0

0

from differences in rank or age composition. There is a smaller ratio of female in managerial positions or higher ranks, which have relatively higher
0salaries, and this affects the differences over all positions.
* Non-regular workers include employees who are treated differently, such as contract employees who are rehired after mandatory retirement andemployees working under individual labor contracts. The main reason for the difference between male and female is that employees rehired on an
ongoing basis as non-regular workers in managerial positions following mandated retirement are, as noted above, mostly male, which affects theoverall difference.
15. Respect for Diversity
Number of locally hired CEO
Number of employees by area
(Japan)Number of employees by area
(Asia)

Number of employees by area
(Europe)Nissha Sustainability Report 2024

NumberNissha Group

8

8

8

8

8

Total

Number

-

2,300

1,988

1,990

1,915

1,922

Male

Number

-

1,853

1,587

1,574

1,500

1,489

FemaleNumber

-

447

401

416

415

433

Total

Number

-

720

674

661

633

582

Male

Number

-

336

310

312

319

281

FemaleNumber

-

384

364

349

314

301

Total

Number

-

523

680

698

693

744

Male

Number

-

346

478

505

488

501

FemaleNumber

-

177

202

193

205

243

37-5

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Items
Total
Number of employees by area
(North America)

Number of employees by area
(Central and South America)

Composition by employment status(Permanent)

Composition by employment status(Temporary)

Composition of Directors of the
Board

Composition of corporate officers,
excluding concurrently serving as
Directors of the Board

Composition of Nissha fellows

Composition of managerial staff

Composition of employees

Nissha Sustainability Report 2024

SocialThird Party
Verification

Environment

Unit

Boundary

Number-Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

FY2019 FY2020 FY2021 FY2022 FY2023
1,577

1,509

1,539

1,151

Governance

Items

1,367

Male

Number

-

918

841

873

690

750

FemaleNumber

-

659

668

666

461

617

Total

Number

-

598

539

521

933

606

Male

Number

-

239

216

206

365

191

Quality Management / Efficiency
and Productivity Improvement

Average
Average age

Average years of employment

Governance

GRI Standards Content
Index / ESG Data

Unit

Boundary

Age

Nissha

FY2019 FY2020 FY2021 FY2022 FY2023
39.8

41.5

42.2

42.9

42.9

Male

Age

Nissha

42.9

43.0

43.8

44.7

44.8

FemaleAge

Nissha

36.7

37.3

37.8

38.2

38.1

AverageYear

Nissha

13.2

14.4

14.3

15.7

15.6

Male

Year

Nissha

15.3

15.4

15.6

17.2

17.2

FemaleNumber

-

359

323

315

568

415

FemaleYear

Nissha

11.0

11.5

10.8

11.8

11.6

Total

NumberNissha Group

5,718

5,390

5,409

5,325

5,221

Total

NumberNissha

2

0

2

2

4

Male

NumberNissha Group

3,692

3,432

3,470

3,362

3,212

Male

NumberNissha

0

0

0

0

0

Composition by age (18-19)

FemaleNumberNissha Group

2,026

1,958

1,939

1,963

2,009

FemaleNumberNissha

2

0

2

2

4

Total

NumberNissha Group

1,741

2,012

1,443

1,438

1,368

Total

NumberNissha

116

94

82

72

81
36

Male

NumberNissha Group

1,209

1,429

866

865

894

Male

NumberNissha

63

54

42

33

FemaleNumberNissha Group

532

583

577

573

474

Composition by age (20-29)

FemaleNumberNissha

53

40

40

39

45

Total

NumberNissha

9

9

9

9

9

Total

NumberNissha

246

217

217

193

172

Male

NumberNissha

8

8

8

8

8

FemaleNumberNissha

1

1

1

1

1

Total

NumberNissha

12

11

12

12

11

Male

NumberNissha

12

11

12

12

11

Composition by age (30-39)

Composition by age (40-49)

Male

NumberNissha

164

133

135

117

106

FemaleNumberNissha

82

84

82

76

66

Total

NumberNissha

281

262

269

261

276

Male

NumberNissha

225

214

218

205

213

FemaleNumberNissha

0

0

0

0

0

FemaleNumberNissha

56

48

51

56

63

Total

NumberNissha

1

2

2

1

1

Total

NumberNissha

172

145

155

175

179

Male

NumberNissha

1

2

2

1

1

Male

NumberNissha

156

129

134

152

152

Composition by age (50-59)

FemaleNumberNissha

0

0

0

0

0

FemaleNumberNissha

16

16

21

23

27

Total

NumberNissha

172

153

166

163

164

Total

NumberNissha

2

2

6

7

8
7

Male

NumberNissha

162

145

157

153

152

Male

NumberNissha1

1

5

6

FemaleNumberNissha

10

8

9

10

12

Composition by age (over 60)

FemaleNumberNissha

1

1

1

1

1

Total

NumberNissha

819

720

731

710

720

Total

NumberNissha Group

5,718

5,390

5,409

5,325

5,221

Male

NumberNissha

609

531

534

513

514

FemaleNumberNissha

210

189

197

197

206

Number of employees

Male

NumberNissha Group

3,692

3,432

3,470

3,362

3,212

FemaleNumberNissha Group

2,026

1,958

1,939

1,963

2,009

37-6

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Items

Composition of managerial staff

Third Party
Verification

Environment

Unit
Male

SocialBoundary

Number Nissha Group in Japan

Human
RightsHuman
Resources

273

281

269

Number Nissha Group in Japan

n/a

13

14

15

17

Total

Number Nissha Group in Japan

n/a

286

295

284

278

Number Nissha Group in Japan

n/a

86

94

91

89

employees
Of which foreign
employees
Percentage of persons with disabilities employed%

Nissha

n/a
2.38

2
2.11

2
2.12

1

Number of employees who usedchild-rearing leave

Number of employees who worked

2.07

1
2.67

Number of employees who tookdays off for child nursing

16. Human Resources Development

Annual training hours

Training hours per employee

Total

Hours

Nissha Group in Japan 22,265 26,337 42,426 30,613 28,739

Male

Hours

Nissha Group in Japan 17,768 19,092 28,928 23,252 20,042

Reinstatement rate after child-

Hours

Nissha Group in Japan

4,497

rearing leave

Average

Hours

Nissha Group in Japan

Male

Hours

Nissha Group in Japan

FemaleHours

Nissha Group in Japan

7,245 13,498

7,361

8,697

9.7

13.1

18.2

14.4

13.4

9.6

11.8

16.4

14.2

12.2

Retention rate after child-rearing

10.0

17.9

24.0

15.3

17.7

leave (1 year)

17. Employee Engagement
Number of employees who used

Response rate
Will to contribute to thePercentage of Positive

organization
Organizational Commitment

RewardingFeeling of contributing to society

Responses
Percentage of Positive
Responses
Percentage of Positive
Responses
Percentage of Positive
Responses%

Nissha Group

n/a

n/a

n/a

83.0

94.2

%

Nissha Group

n/a

n/a

n/a

95.6

95.5

%

Nissha Group

n/a

n/a

n/a

87.8

89.0

Number of employees who used%

Nissha Group

n/a

n/a

n/a

82.3

83.4

%

Nissha Group

n/a

n/a

n/a

78.8

80.6

Average percentage of annual paid leave usedshorter hours for family care

Number of employees who useddays off for family care

* We started engagement surveys in 2022.
Average days of annual paid leave usedfamily care leave

Number of employees who used
Days%

Nissha Group in Japan
Nissha Group in Japan

12.2
65.9

11.4
61.4

11.5
60.3

12.9
66.1

14.1

outpatient sick leave system

72.0
Number of internal job posting

Nissha Sustainability Report 2024

Governance

Boundary

Number Nissha Group in JapanGRI Standards Content
Index / ESG Data

FY2019 FY2020 FY2021 FY2022 FY2023
61

69

67

73

81

Male

Number Nissha Group in Japan

18

19

21

25

38

FemaleNumber Nissha Group in Japan

43

50

46

48

43

Total

Number Nissha Group in Japan

97

95

89

95

88

Male

Number Nissha Group in Japan

7

2

2

3

6

FemaleNumber Nissha Group in Japan

90

93

87

92

82

Total

Number Nissha Group in Japan

157

120

108

115

122

Male

Number Nissha Group in Japan

79

56

49

50

60

FemaleNumber Nissha Group in Japan

Average

FemaleEngagement Survey

Unit
Total

shorter hours for child-rearing
Number Nissha Group in Japan

Quality Management / Efficiency
and Productivity Improvement

Items

261

FemaleOf which mid-carrier

Fair Operating Practices/ Local Communities

FY2019 FY2020 FY2021 FY2022 FY2023
n/a

Governance%Nissha Group in Japan

78

64

59

65

62

96.8

100

97.1

97.6

100

Male

%

Nissha Group in Japan

100

100

100

100

100

Female%Nissha Group in Japan

95.0

100

95.6

95.8

100

Average%Nissha Group in Japan

93.5

90.0

88.5

94.7

90.6

Male

%

Nissha Group in Japan

100

92.0

83.3

87.5

95.0

Female%Nissha Group in Japan

90.0

88.6

91.3

100

88.6

Total

Number Nissha Group in Japan

4

1

0

0

0

Male

Number Nissha Group in Japan

3

1

0

0

0

FemaleNumber Nissha Group in Japan

1

0

0

0

0

Total

Number Nissha Group in Japan

1

0

0

0

1

Male

Number Nissha Group in Japan

0

0

0

0

0

FemaleNumber Nissha Group in Japan

1

0

0

0

1

Total

Number Nissha Group in Japan

17

15

6

12

15

Male

Number Nissha Group in Japan

12

8

5

6

8

FemaleNumber Nissha Group in Japan

5

7

1

6

7

Total

Number Nissha Group in Japan

3

4

6

9

9

Male

Number Nissha Group in Japan

1

2

3

5

5

FemaleNumber Nissha Group in Japan

2

2

3

4

4

Number Nissha Group in Japan

9

0

15

31

14

37-7

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Items

Successful applicants (transferees)

Boundary

Human
RightsHuman
Resources

5

n/a

7

Unit

Boundary

Stomach cancer screening rate%

Nissha Group in Japan

99.3

92.4

94.0

93.0

92.9

Colorectal cancer screening rate%

Nissha Group in Japan

95.6

96.8

96.8

96.2

97.3

49.4

60.3

66.7

66.7

92.7

57.3

81.1

74.2

74.7

90.2

Number Nissha Group in Japan

4

n/a

6

2

0

1

n/a

1

0

1

Companies)

Nissha Group

n/a

n/a

0

0

0

NumberNissha Group

n/a

n/a

10

0

11

FY2019 FY2020 FY2021 FY2022 FY2023

Nissha Group in Japan
Uterus cancer screening rate

Number%(held on a biennial
basis)
Nissha Group in JapanBU Headʼs Award

NumberNissha Group

n/a

n/a

35*1

21

41

Synergy Award

NumberNissha Group

n/a

n/a

32

79

57

New Hope Award

NumberNissha Group

n/a

n/a

13

8

15

Nissha People Award

NumberNissha Group

111

111

n/a

n/a

n/a

* In FY2021, the award system was revised and the Nissha People Award was abolished, while other awards were newly established.
*1. Includes the number of winners of the Director's Special Award, which corresponds to the BU Head's Award.
Subscription rate in employee stock ownership plan

Items

GRI Standards Content
Index / ESG Data

Governance1

Number Nissha Group in Japan

CEO's Award (Group

Quality Management / Efficiency
and Productivity Improvement

2

Male

wide)

GovernanceFair Operating Practices/ Local Communities

FY2019 FY2020 FY2021 FY2022 FY2023

Number Nissha Group in Japan

FemaleCEO's Award (Company-

Number of award winners

Third Party
Verification

Environment

Unit
Total

Social%Nissha Group in Japan

26.6

26.0

27.5

27.5

28.5

18. Safety and Health

Breast cancer screening rate%

(held on a biennial
basis)

Smoking rate*%

Nissha Group in Japan

29.3

27.8

28.5

25.6

25.7

Obesity rate*%

Nissha Group in Japan

24.1

23.7

29.7

24.8

25.7

Percentage of individuals maintaining appropriate weight%

Nissha Group in Japan

n/a

68.4

69.7

68.4

66.7

Percentage of individuals with regular exercise habits%

Nissha Group in Japan

n/a

23.8

21.2

24.0

24.5

Percentage of individuals with abnormal findings%

Nissha Group in Japan

n/a

75.4

73.5

78.2

78.2

Percentage of individuals at risk for high blood pressure%

Nissha Group in Japan

n/a

0.1

0.0

0.2

0.2

Percentage of individuals at risk for blood sugar issues%

Nissha Group in Japan

n/a

0.3

0.2

0.3

0.3

%

Nissha Group in Japan

97.0

96.2

99.0

99.9

94.0

%

Nissha Group in Japan

n/a

96.2

99.0

99.0

98.0

Specific health guidance implemention rate (Implemented /Frequency of work-related accidents-

Nissha Group in Japan

0.49

0.98

1.48

0.35

0.91

Severity of work-related accidents-

Nissha Group in Japan

0.00

0.01

0.05

0.00

0.04

Fatal accidents（employee fatalities due to accidents at work)

Number Nissha Group in Japan

0

0

0

0

0

Number of work-related accidents

NumberNissha Group

59

48

53

60

39

Stress check implementation rate%

Nissha Group in Japan

100

100

100

99.9

100

Number of work-related accidents (Japan)

Number

-

13

15

15

7

9

Presenteeism%

Nissha Group in Japan

n/a

n/a

n/a

n/a

n/a

4 or more days of leave
Number of work-related accidents (North America)
Number of work-related accidents (Central and SouthAmerica)Targeted)Specific health guidance continuation rate (Completed / Initialinterview participants)

Number

-

2

3

7

0

5

Absenteeism%

Nissha Group in Japan

n/a

n/a

n/a

0.72

0.81

Number

-

21

10

14

19

14

Engagement%

Nissha Group in Japan

n/a

n/a

n/a

n/a

62.1

Number

-

11

2

2

2

2

* Excluding Kaga Factory and Tokyo Division Headquarters until the fiscal year ended December 2020.

Number of work-related accidents (Europe)

Number

-

12

19

17

30

13

Number of work-related accidents (Asia)

Number

-

2

2

5

2

1

19. Health and Productivity Management
Regular health checkup rate%

Nissha Group in Japan

100

98.8

99.7

100

100

Detailed checkup rate after regular health checkup%

Nissha Group in Japan

37.8

34.7

51.7

60.3

75.3

Lung cancer screening rate%

Nissha Group in Japan

98.7

99.4

100

100

100

Nissha Sustainability Report 2024

37-8

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

SocialThird Party
Verification

Environment

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Fair Operating Practices / Local Communities
Items

Unit

Boundary

FY2019 FY2020 FY2021 FY2022 FY2023

Million yen Nissha Group in Japan

n/a

99

111

153

Unit

Boundary

FY2019FY2020

FY2021

FY2022

FY2020

FY2021

FY2022

FY2023

NumberNissha

0

0

0

0

1

Foreign national Corporate Officers

NumberNissha

2

2

2

2

2

Total
compensation

FY2023Fines due to a serious accident that conflict with laws or
regulations as a result of flaws in our products and services

NumberNissha Groupin Japan

0

0

0

0

0

Japanese Yen

Nissha Groupin Japan

0

0

0

0

0

Compensation
by category (Basesalary)Governance
Items

Unit

Boundary FY2019

FY2020

FY2021

FY2022

FY202325. Corporate GovernanceDirectors of the Board

NumberNissha

9

9

9

9

9

Independent Outside Director of the Board

NumberNissha

4

4

4

4

4

Female Directors of the Board

NumberNissha

1

1

1

1

1

Foreign national Directors of the Board

NumberNissha

1

1

1

1

0

Audit and Supervisory Board Members

NumberNissha

4

4

4

4

4

Independent Audit and Supervisory Board Member

NumberNissha

2

2

2

2

2

Female Audit and Supervisory Board Members

NumberNissha

0

0

0

0

0

Corporate Officers, excluding concurrently serving as Directors of
the Board

NumberNissha

12

12

12

12

14

Nissha Sustainability Report 2024

Boundary FY2019* The number of Directors of the Board, Audit and Supervisory Board Members, and Corporate Officers is as of the conclusion of the Ordinary General
Meeting of Shareholders for the relevant fiscal year.

23. Quality Management
Number of serious accident that conflict with laws or regulations as a result of flaws in our products and services

Unit

GRI Standards Content
Index / ESG Data

GovernanceFemale Corporate Officers

105

Quality Management /Efficiency and Productivity Improvement
Items

Quality Management / Efficiency
and Productivity Improvement

Items

22. Along with Local Communities
Social contribution expenses

GovernanceCompensation
by category(Bonuses)

Directors of the Board (Excluding Independent
Outside Directors of the Board)

Million yen

Nissha

255

226

328

318

257

Audit and Supervisory Board Members(Excluding Independent Audit and Supervisory
Board Members)

Million yen

Nissha

28

26

28

32

33

Independent Outside Directors of the Board
and Independent Audit and Supervisory Board
Members

Million yen

Nissha

50

46

53

54

54

Directors of the Board (Excluding Independent
Outside Directors of the Board)

Million yen

Nissha

174

151

169

171

171

Audit and Supervisory Board Members(Excluding Independent Audit and Supervisory
Board Members)

Million yen

Nissha

28

26

28

32

33

Independent Outside Directors of the Board
and Independent Audit and Supervisory Board
Members

Million yen

Nissha

50

46

53

54

54

Directors of the Board (Excluding Independent
Outside Directors of the Board)

Million yen

Nissha

55

52

113

89

45

Audit and Supervisory Board Members(Excluding Independent Audit and Supervisory
Board Members)

Million yen

Nissha

-

-

-

-

-

Independent Outside Directors of the Board
and Independent Audit and Supervisory Board
Members

Million yen

Nissha

-

-

-

-

-

Directors of the Board (Excluding Independent
Outside Directors of the Board)

Million yen

NisshaMillion yen

Nissha

-

-

-

-

-

Million yen

Nissha

-

-

-

-

-

Compensation by Audit and Supervisory Board Members
category (Stock(Excluding Independent Audit and Supervisory
Board Members)
compensation,etc.)
Independent Outside Directors of the Board
and Independent Audit and Supervisory Board
Members

25

22

45

57

40

37-9

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Number ofmembers subject
to aggregationof compensationand etc.

Third Party
Verification

Environment

Items

Unit

SocialBoundary FY2019

Human
RightsHuman
Resources

FY2020

FY2021

FY2022

FY2023

5

5

7

5

5

Nissha

2

3

2

3

2

Nissha

8

6

6

7

6

Directors of the Board (Excluding Independent
Outside Directors of the Board)

NumberNisshaAudit and Supervisory Board Members(Excluding Independent Audit and Supervisory
Board Members)

NumberIndependent Outside Directors of the Board
and Independent Audit and Supervisory Board
Members

NumberFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

NisshaGroup

Hotline number of reports

9

12

7

4

8

* The Hotline is a whistle-blowing and other consultation service for inappropriate, illegal or unethical behavior by organizations or individuals, and is
not limited to harassment consultation.
35. Management System and Other Certification Acquisitions
ISO9001 acquisition site

Number ofsites

Nissha
Group

24

29

25

19

18

ISO13485 acquisition site

Number ofsites

Nissha
Group

10

10

10

12

14

ISO22716 acquisition site

Number ofsites

Nissha
Group

0

1

1

1

1

IATF16949 acquisition site

Number ofsites

Nissha
Group

8

9

10

8

8

ISO14001 acquisition site

Number ofsites

Nissha
Group

13

17

17

18

17

ISO50001 acquisition site

Number ofsites

Nissha
Group

2

5

4

4

3

OHSAS18001・ISO45001 acquisition site

Number ofsites

Nissha
Group

3

3

1

2

2

ISO27001 acquisition site

Number ofsites

Nissha
Group

11

17

18

18

18

FSC COC acquisition site

Number ofsites

Nissha
Group

4

5

10

10

10

PEFC acquisition site

Number ofsites

Nissha
Group

2

2

2

EN15593acquisition site

Number ofsites

Nissha
Group

1

1

1

1

1

EC93/42/EEC acquisition site

Number ofsites

Nissha
Group

2

2

2

3

2

n/a

n/a

Governance

GRI Standards Content
Index / ESG Data

List of policies, principles and guidelines
Title

28. Risk Management and Compliance

Nissha Sustainability Report 2024

Governance

Sustainability Report 2022・Web site

Pages on PDF

Enviroment Policy and Principles

4. Environmental Policy and Management Structures

4-1

Basic Policy on Labor and Human Rights

13. Human Rights

13-1

Human Resources Policy

14. Human Resources Policy and System

14-1

Occupational Safety and Health Policy and Principles

18. Safety and Health

18-1

Health and Productivity Management Policy

19. Health and Productivity Management

19-1

Purchasing Principles

21. Partnership with Our Suppliers

21-1

Social Contribution Policy

22. Along with Local Communities

22-1

Quality Policy / Nissha Quality Way

23. Quality Management

23-1

Corporate Governance Policy

Website About > Corporate Governance-Risk Management Policy

28. Risk Management and Compliance28-1

Corporate Ethics and Compliance Guidelines and Principles

28. Risk Management and Compliance

28-2

Information Security Policy and Principles

29. Information Security

29-1

Trade Management Policy and Principles

30. Trade Management

30-1

Nissha Group Anti-Corruption Guidelines

31. Anti-corruption

31-1

Business Continuity Plans Plicy and Principles

32. Business Continuity

32-1

Tax Principles

33. Tax Principles

33

Basic Approach to Responsible Mineral Procurement

34. Responsible Mineral Procurement

34-1

37-10