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 202412-4