Nissha
Sustainability Report

2019

CEO Message

2

Nissha Group’ s Sustainability

Approach to CSR ／ CSR Management ／ Materiality in risk management
Nissha Group's Stakeholders ／ External Assessment ／ United Nations Global Compact

Nissha Philosophy
Special Feature

18
20

Organizational Governance23

Corporate GovernanceCorporate Ethics and Compliance
Distribution of Added Value to Stakeholders

24
37
39

Human Rights

40

Human Rights

41

Labor Practices

46

Human Resources Development
Respect for Diversity
Support for Diverse Work Styles
Safety and Health

47
50
56
62

Environmental Policy and Management Structures
Environmental Objectives and Status of Achievement
Environmental Impact as a Result of Business Operations
Adaptation to Climate Change
Waste Management
Management of Chemical Substances and Environmental Risks

Fair Operating Practices

14
17

Special Feature 1
Special Feature 2

The Environment

3

68
69
72
76
78
85
89
96

Initiatives Related to Information Security
Trade Management
Initiatives Related to Intellectual Property
Partnership with Our Suppliers
Initiatives Related to Conﬂict Minerals
Initiatives Related to Anti-corruption
Tax Policy

97
100
103
105
109
110
111

Consumer Issues

113

Consumer Issues

Along with Local Communities

Along with Local Communities

Editorial Policy

GRI Content Index

112

117
118
123
126

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Sustainability Report 2019

CEO Message
Nissha has been constantly attempting to improvecore technologies while integrating thetechnological elements into the printing technology
we have cultivated since our founding.
Consequently, we have realized expansion of ourbusiness domain through diversification of products
and target markets, and expansion into global
markets. This history of ours is one of creatingproducts and services that lead to solutions tosocial issues while continually listening to thechanging needs of the target markets and ourcustomers' requirements.
Various activities are currently under development around the world to achieve the goals set out
as Sustainability Development Goals (SDGs) adopted by the United Nations. We see these needs
as business opportunities and hope to make a social impact utilizing our technology and humanresource capabilities.

In April 2012, we joined the United Nations Global
Compact. Recognizing that minimizing thenegative effects of our business activities on theenvironment and society is another important
corporate responsibility, we are actively working
on 10 principles relating to the four areas ofhuman rights, labor, the environment, and anticorruption.
We look forward to your continued guidance andencouragement.

May 2019
Junya Suzuki
Chairman of the Board
President and CEO

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Sustainability Report 2019

Nissha Group’s Sustainability
Approach to CSR

The Nissha Group is currently accelerating its business activities in the medical devices market
and the high-function packaging materials market, in addition to expanding its business in the
IT market and the automotive market, core markets in the Sixth Medium-term Business Plan.
This done with a view to placing optimization of our business portfolio from the perspective ofbalanced management at the heart of our management strategy. Nissha is rolling out products
and businesses that contribute to solving social issues both directly and indirectly based aroundthese four key markets.
With the changes taking place in Nissha Group businesses as our Medium-term Business Plan
unfolds, Nissha has established a CSR Committee, under which there are eight subcommittees
which work to understand changes in and reduce the environmental and social risks that
hamper business continuance. Working backwards from the vision of where we see our company
headed, we proactively respond to these environmental and social risks, aiming to become acorporation our customers and all our other stakeholders value. We believe that reducing
environmental and social risks, as well as expanding our products and businesses that
contribute to solving social issues, will improve sustainability for the Nissha Group.

CSR Management

Reducing environmental and social risks with the CSR Committee
The CSR Committee establishes materiality (material issues) in environmental and social risk
management, prioritizing risk elements that would prevent business continuance, and works to
reduce them. Its eight subcommittees use the PDCA Cycle to deal with strategy items, KPI, andtarget values for each material issue. The activity policies and results of each subcommittee arechecked quarterly by the CSR Committee at progress check meetings, and reported annually to
the Board of Directors.
In the fiscal year ended December 2018, the first year of the Sixth Medium-term Business Plan,
we ensured compliance with the Responsible Business Alliance (RBA), a code of conduct for theelectronics and automotive industries, and adhered to the code of conduct for suppliers that ourcustomers demand, working to reduce risks related to areas such as labor human rights, safety
and health, the environment and ethics, and to respond to the risk management demanded by
the IT market and the automotive market. In the fiscal year ending December 2019, we areworking on reducing risk for the medical devices market and the high-function packaging
materials market in step with the progress of the Sixth Medium-term Business Plan.

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CSR Committee Organization Chart

Mission of the CSR Committee
The CSR Committee prioritizes non-financial risk factors that would hamper business continuity,
based on the business portfolio aimed at in the Medium-term Business Plan from the perspectiveof improving medium- to long-term corporate value, and exercises leadership for their solution
through the subcommittees under it.

Structure of the CSR Committee
Monitoring Side
Committee Chair: Chief Executive Officer(

Vice Chair: Chief Financial Officer Director of the Board, Senior Executive Vice President, Senior Director of
Human Resources, General Affairs and Legal Affairs)

,

,

,

Committee Members: Chief Strategy Officer Chief Quality Officer Chief Information Officer Chief Supply
Chain Officer

Executive Side
Section president:Related Corporate Management Department Head and Group HeadSecretary General: Corporate Social Responsibility Group Leader
Secretariat: Corporate Social Responsibility, Corporate Communications

Materiality in Risk Management

Nissha prioritizes environmental and social risk factors that would hamper business continuance,
evolution, or growth, and tackles risk mitigation for notably important issues, designating themas material issues (materiality).
Selection of material issues is made with reference to the Global Reporting Initiative (GRI)
Standards, which are guidelines for the disclosure of non-financial information, and assessed on
the twin axes of materiality to the Nissha Group and materiality of our stakeholders. The visionand basic strategies of the Sixth Medium-term Business Plan are reflected in materiality to the
Nissha Group, while materiality to our stakeholders incorporates the opinions of stakeholders
both in the company and outside. With the start of the fiscal year ending December 2019, we
have revised our material issues to match the progress of the Sixth Medium-term Business Plan.

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Analysis map

The impacts of the Nissha Group and its supply chain are extracted

Step 1

based on examples provided by the GRI Standards. Boundaries, or

Identify topics

where the impact occurs, are identified.
Topics from Step 1 are measured for materiality to the Nissha Group

Step 2(based on the medium-term business plan) and materiality to ourPrioritize

stakeholders (SDGs, external assessment), plotted on an analysis map,and prioritized based on degree of impact.
Topics are validated especially from the standpoint of our stakeholders

Step 3

based on assessment by outside experts and interviews with CSR

Validatesubcommittees.
For each material topic identified in steps 1 to 3, an action program, KPI,

Step 4
Determine materiality and KPI

and target KPI values are set by CSR subcommittees and approved by
the CSR Committee.

Boundaries of material topics
Boundaries

Materiality

Inside of Nissha Group

Suppliers

Product Responsibility●●

Complying with Laws and Regulations●●

Human Rights in the Workplace●●

Responsibility for Product and Service Continuation●●

The Environment●●

Occupational Health and Safety●●

Protection of Customer Information

●

●

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Materiality in the fiscal year ended December 2018
Responses focused on the IT and automotive markets, the key markets laid out in the Sixth Medium-term Business Plan(excerpt)
Materiality

Subcommittee

Strategy Items

KPI (target values)

Human Rights in the- Increased recognition rates- Recognition rate for the

Workplacefor the Harassment Help

Harassment Help Desk (80%Deskor more)Labor and Human Rights- Compliance rate with 60- Managing weekly working

working hours total per week

hours

(100%)

Achievement Status〇 Reached recognition rateof 80%△ Compliance rate of 98%- Number of bases in Europe- GDPR supporthat have completed Risk
assessment and correction (5Complying with Laws andRegulations

bases)
Corporate Ethics and- Compliance education- Implementation rate ofgroup-wide training (100%)

Compliance- Number of overseas- Construction of the internal

subsidiaries that havereporting system for overseas

completed preparations tobases

construct the internal〇 Correction completed in 5
bases

〇 Implementation rate of100%〇 System constructed in 9
bases

reporting system (9 bases)- Introduction of ISMS
operation to companies

Protection of Customer
Information- Ensuring establishment ofInformation Security

ISMS operation by overseas
companies

recently acquired through× Not introduced at 2
companies

M&A (2 companies)- Support for ISMS operationfor existing companies(during the fiscal year ended
December 2018)〇 Completed implementationof operational support attarget bases

Responses to Climate
ChangeEnvironmental, Safety and- Improve levels of responses

Healthto climate change

Diversity and Equal- Expand communication with

Opportunity

foreign nationals andLabor and Human Rights

international students(expand employment offoreign nationals in regular- CDP score of B

- Ratio of foreign nationals
among those offered jobs
(20%)

〇 Obtained a CDP score ofB〇 Foreign nationals offeredjobs: 25%

hiring periods)
Occupational Health and
SafetyEnvironmental, Safety and
Health- Number of injury accidents- Reduce injury accidents(15% fewer than the previous
fiscal year)〇 20% reduction

Responsibility for Product andService Continuation- The PDCA cycle in the
BCM- Maintain BCM system

BCP/BCM basic plan is inoperation〇 Implementation rate of100%

Supplier Assessment
The CSR Committee

CSR Supplier audits (social

Secretariat is responsible

and environmental aspects)- Number of audits carried out(1 temporary employment
agency)〇 Carried out for 1 company

Items migrated to “maintain” through activities during the fiscal year ended December 20186

Sustainability Report 2019

Materiality in the fiscal year ending December 2019
Material issues with risk reduced through the activities of the subcommittees are removed from the list, but
their importance remains in terms of our risk management. These items are managed by the relevant
subcommittees to ensure that they retain their low-risk status. On the other hand, material issues where risk
reduction is inadequate are continued to be targeted for mitigation, and, along with newly-identified risks, havestrategy items, KPIs, and target values set by the relevant subcommittees.
Materiality in risk management in the fiscal year ended December 2018 was focused particularly on the IT
market, and on the automotive market where future growth is expected. In the fiscal year ending December
2019, building on the degree of achievement of KPIs for the previous fiscal year, the contents were revised inaccordance with the progress of the Sixth Medium-term Business Plan, and items where risk reduction had
been achieved were migrated to items classified as “maintain.” Additionally, new material issues were set inorder to use them as content for two of the four key markets set out in the Sixth Medium-term Business Plan,
medical devices and high-function packaging materials.

Responses focused on materiality supporting Medical Devices and High-function Packaging Materials, the key markets
laid out in the 6th Medium-term Business Plan (excerpt)
Subcommittee

Material Issue
Product Responsibility

Strategy Items

KPI (target values)- Understanding the status of responses in the
CSR Committee Secretariat

environmental and social aspects within the- Publishing information in accordance with

Medical Technologies business and reducing

SASB*1 disclosure demands

risks- Number of bases where training is given on- GDPR*2 support

Complying with Laws andRegulations

the revised personal information protection
regulations (14 domestic bases)

Corporate Ethics andCompliance- Construction of the internal reporting system- Number of bases in Europe that havefor overseas bases

completed preparations to construct theinternal reporting system (1 overseas base)- Maintenance and enhancement of trade- Maintenance and enhancement ofmanagement

management levels for workers througheducational programs on trade management

Human Rights in the
Workplace
Labor and Human Rights- Understanding and reducing human rights
risks- Number of human rights risks understood at
key overseas bases, mainly in North America
and Europe (10 risk items)

Responsibility for Product and- Understanding and reviewing BCP

Service Continuation
BCM- Understanding the status of BCP operation

operational status at key overseas bases,

at key overseas bases and reducing risks

mainly in North America and Europe (2companies)

The Environment
Environmental, Safety and
Health- Understanding and reducing theenvironmental impact of key overseas bases Responses to climate change- Construction of an environmental dataacquisition system from key overseas bases,
mainly in North America and Europe- Maintain CDP*3 score of B

Occupational Health and
SafetyEnvironmental, Safety and
Health- Understanding the status of safety and- Construction of a safety and health data

health at key overseas bases and reducing

acquisition system from key overseas bases,risk

mainly in North America and Europe

Protection of Customer
Information
Information Security- Ensuring operation of ISMS*4 at overseas
companies- Number of new implementations of ISMS atoverseas companies that previous lacked it (3cases)

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*1. SASB: Sustainability Accounting Standards Board*2. GDPR: General Data Protection Regulation*3. CDP: Carbon Disclosure Project*4. ISMS: Information Security Management System
Items newly specified for the fiscal year ending December 20198

Sustainability Report 2019

Nissha Group's Stakeholders

We identify the stakeholders that support Nissha Group operations as our customers, shareholders,
employees, suppliers, and society. Toward realizing our Mission, we incorporate the voice of our stakeholders
into business activities that contribute to a sustainable society. Both we and our stakeholders have a clear
vision, and we mutually affect each other toward realizing it. Our aim is to work together and create value forthe future.

Circle of Trust

Customers
Nissha Group’s businesses—Industrial Materials, Devices, Medical Technology, and Information andCommunication—serve customers, centering on companies, spanning a broad range of fields.
We approach challenges seriously from the standpoint of our customers, resolve issues together, andoffer optimal solutions. With a quality control system in place, we seek to produce quality products andservices that win our customers’ satisfaction.

◆Communication channels

Marketing activities in daily operations
Activities to enhance customer satisfaction
Information provided for CSR survey
Information provided about conflict minerals
Products and services information provided by website
Supplier responsibility (SR) audits by customers

Shareholders
We have a total of 50,855,638 outstanding shares and 10,795 shareholders. In a breakdown ofshareholders by type, 36.7% are Japanese financial institutions and securities firms, 23.8% foreign
institutions and individuals, 20.1% other Japanese corporations, 17.7% Japanese individuals and9

Sustainability Report 2019others, and 1.7% treasury stock (as of the end of December 2018).
In addition to disclosing information, we create opportunities to meet directly and exchange dialogue
with our shareholders and investors through IR events and one-on-one briefings. Feedback andcomments are reported regularly from IR representatives to management as well as at Board of
Directors meetings, and used as a valuable resource for enhancing our corporate value.

◆Communication channels
Shareholders’ meetings

Management briefings following shareholders’ meetings
Financial results presentations and teleconferences for institutional investors
One-on-one briefings for institutional investors
Response to individual inquiries
Various materials (reports) published for shareholders and investors
IR information provided via the Nissha website
Information to investigation institutions for such as sustainable investment

Employees
The Nissha Group has 5,861 employees. The number of employees in a breakdown by region, 39%
work in Japan, 15% in Asia, 20% in North America, 9% in Europe, and 17% in Central and SouthAmerica (as of the end of March 2019).
We promote the creation of safe, comfortable workplaces and offer support for diverse work styles,
respecting our employees’ human rights diversity from a global perspective. We at Nissha Group
believe our employees are our most important management resources, and aim to achieve growth forboth the company and our employees.

◆Communication channels

Labor-management meetings
Safety and health committees
Workplace improvement committee
Education and training
Personnel evaluation and interviews
Hotline (for reporting to outside the company)
Harassment help desk
Employee awareness survey and interviews

Suppliers
Nissha Group’s global operations revolve around procurement activities and engagement with a large
number of suppliers.
We strive to build partnerships of co-existence and co-prosperity with our suppliers, and create
corporate value founded on integrity. We seek to evaluate our suppliers fairly, impartially, andcomprehensively at all times, and promote CSR procurement.

◆Communication channels

Procurement activities in daily operations
CSR procurement briefings
ESG check sheets
CSR survey and auditing
In-house exhibitions and seminars themed around supplier products and technologies

Society
The Nissha Group has 14 bases in Japan and 41 overseas (as of the end of March 2019), each ofwhich carries out business activities with respect for the culture and climate of the region in which it
operates.
We aim for widespread co-existence based on relationships of mutual trust with society. We promote
communication with local communities not only to fulfill our basic responsibilities as a corporation but
also to be a company that is needed by society. We strive to be aware of global social issues and playa role in resolving them.

◆Communication channels

Exchange events with community councils and community people
Factory and facility tours

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Cleanup activities in factory areas
Next-generation support activities
Support and promotion of arts and culture
Social contribution activities in collaboration with NPOs
Employees’ participation in volunteer activities

External Assessment

Major examples of external assessment in fiscal year ended December 2018 are given below (Nissha Group in Japan).

Date

Certification/award

Company/baseDetails
Nissha Co., Ltd. received a Gas Chromatography Contribution Prize
from the Discussion Group for Gas Chromatography of the Japan
Society for Analytical Chemistry (JSAC).

Gas Chromatography

May 2018

Contribution Prize

The Discussion Group for Gas Chromatography is a main constituent
Nissha Co., Ltd.

of JSAC. Prizes were presented to commemorate the 60th
anniversary of the discussion group’s founding. Nissha wasrecognized as a corporation for its significant contribution to theglobal advancement and development of gas chromatography as wellas to the discussion group.

October

Good Design Award for

2018

2018

Vermed® Claravue developed by Integral Process SAS, Nissha Group
Nissha Co., Ltd.

company set up in France to produce and sell medical equipment, was awarded
the Good Design Award 2018 by the Japan Institute of Design Promotion.

Acquisition status of ISO certification and others is given below (Nissha Group, as of the end of December 2018).

Standards
Subject Areas

ISO/TS16949
IATF16949

Nissha Co., Ltd. Global Headquarters
Nissha Co., Ltd. Tokyo Division

ISO9001

ISO14001○*1○*2

OHSAS18001
ISO45001

ISO27001○

Nissha Co., Ltd. Kameoka Factory○○

Nitec Industries, Inc. Koka Factory

○

○

○

○

○

○

○

○

○

○

○

○

○

○

Nitec Precision and Technologies, Inc.
Himeji Factory
Nitec Precision and Technologies, Inc.
Kaga Factory

ISO13485

Others○○*1

Headquarters

ISO50001

Nitec Precision and Technologies, Inc. Tsu
Factory
Nitec Precision and Technologies, Inc.
Kyoto Factory
Nissha FIS, Inc.
Nissha Printing Communications, Inc.
Headquarters / Kyoto
Nissha Printing Communications, Inc.
Osaka Division Headquarters
Nissha Printing Communications, Inc.
Headquarters / Kameoka Factory
Nissha F8, Inc.

○

○*1

○

FSC COC○*1○FSC COC○○FSC COC

○*3

○

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Sustainability Report 2019

○Nissha Business Service, Inc.
Eimo Technologies, Inc.

○○○

Nissha Si-Cal Technologies, Inc.
Nissha PMX Technologies, S.A. de C.V.

○○○

Graphic Controls Acquisition Corp.
○

Nissha Medical Technologies Ltd.

○

Tyrolmed GmbH○○

Integral Process SAS○

Sequel Special Products, LLC○

Lead-Lok, Inc○

CEA Global Dominicana, S.R.L.

○
○

○

○

Nissha Back Stickers○

AR Metallizing N.V.

○

AR Metallizing Srl.

○

AR Metallizing Ltd.

○AR Metallizing Produtos Metalizados Ltda.

○

○

○

○

○

○

○

○

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

○

Guangzhou Nissha High Precision Plastics
Co., Ltd.
Nissha Precision Technologies Malaysia
Sdn. Bhd.

○

93/42/EEC○○CEA Medical Manufacturing Inc.

Nissha Schuster Kunststofftechnik

93/42/EECFSC COC○○FSC COCFSC COC○FSC COC*1. Management divisions are excluded from the scope of certification.
*2. Only management divisions and design and product development divisions have obtained certification.
*3. Only the Kyoto site has obtained certification.

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Sustainability Report 2019

United Nations Global Compact

On April 3, 2012, Nissha Co., Ltd. joined the United Nations Global Compact.
The Global Compact is a voluntary initiative based on 10 principles in the area of
human rights, labor, the environment, and anti-corruption. Its purpose is to havevarious companies show responsible and creative leadership, and thereby act
as good members of society and participate in creating a global framework forsustainable growth.
Signatory companies are required to express within and outside the company
the commitment of top management, establish a CSR framework, makecontinuous improvements aiming for higher levels of management and CSR,
and submit annual reports on the status and results of activities in the format of a Communication on Progress(COP).
At Nissha Group, we have in place various targets based on the 10 principles of the Global Compact and work
daily toward achieving them with an eye to meeting the needs of global society. We disclose information about
our activities in CSR reports, published on the Nissha Group website.

The Ten Principles of the UN Global Compact
Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed humanrights; andPrinciple 2: make sure that they are not complicit in human rights abuses.
LabourPrinciple 3: Businesses should uphold the freedom of association and the effective recognition of theright to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment and occupation.
Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility; andPrinciple 9: encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion andbribery.

United Nations Global Compact website: http://www.unglobalcompact.org

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

MissionWe realize the enrichment of people’s lives by creating technology and developing it into economic
and social value through the diverse capabilities, passion, and leadership of the global Nissha Group.

Brand Statement"Empowering Your Vision""Empowering Your Vision" expresses the relationship of Co-existence between Nissha and our stakeholders.
Both we and our customers, shareholders, employees, suppliers, and society have visions, and we mutuallyaffect each other toward realizing it. We maximize our capabilities driven by our Technology, Passion, andLeadership, and with the energy infused in us by our stakeholders, together create value for the future.

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Nissha Innovation Way
We capture market needs accurately and fuse our diverse capabilities and core technologies
into innovation that creates new value for our customers.

Nissha Innovation Way is a diagram of the product portfolio that the Nissha Group should aim
for and the way of creating customer value to be realized.
Our current core technologies comprise "Printing", "Coating", "Laminating", "Molding" and"Patterning". We will continue to expand and evolve by incorporating new technologies andmaterials.

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Shared Values
Customer is Our Priority
We are committed to maximizing customer value.

Diversity and Inclusion
We welcome diverse capabilities interacting as equals and enhancing our organizational performance.

Commitment to Results
We work with diligence and deliver results.

Done is Better than Perfect
We take actions first rather than sacrificing time value for perfection.

Act with Integrity
We act with integrity and maintain the trust placed in us.

Corporate Logo
The logo captures the Vision of Nissha
Strength, Craft and Innovative Spirit are the core concepts inherent in the logo. Each letter has been carefullybalanced and the shape language throughout the logo is intentionally designed to reference the craft andpassionate workstyles. The color "Nissha Blue", that is adopted a soft and approchable blue color.
All Nissha Group companies share the same Nissha Values.

Nissha’s corporate identity received the Bronze prize in the Graphic Design category at International
Design Awards. Chase Design Group, who was responsible for building a new brand system including
Nissha's logo, applied for this award.
*The International Design Awards (IDA) exists to recognize, celebrate and promote legendary design visionaries and to uncoveremerging talent in Architecture, Interior, Product, Graphic, and Fashion Design.

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Special Feature

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Special Feature 1
Patient-friendly Medical Devices Created by Nissha’s Processing Technology

ーMedical Technology Businessー“We want patients to receive treatment and get on the path to recovery as soon as possible. Is
there any way our medical devices can help make that happen?” That was the thinking behindthe development of our Vermed® Claravue product under our Vermed® brand of medical
devices by our Medical Technologies business unit. We visited medical sites many times toaddress their challenges and developed the product by making continual improvements.

Vermed Claravue®, New ECG Electrode Reduces Burden on Medical Providers
Vermed Claravue® is a lead attaching ECG electrode featuring a new shape that was redesigned
for speedier testing and monitoring in acute medical care and other such settings. In December
2018, sales were launched in Japan. Demand is increasing in France, the United States, and theUnited Kingdom where sales had already been launched.
There is often a complicated array of cables and leadwires placed around the patient when
performing tests using catheters, surgeries, and other procedures. Vermed Claravue® unifies
leadwires to reduce tangling and uses different colors for each electrode signifying where they
go to simplify the attachment process. These features shorten preparation times for testing andsurgery and alleviate stress for medical practitioners and patients, thereby contributing tosmoother catheter tests.

Different colors indicate electrode positioning

Simplification of work with unification of leadwires

Medical Technologies Business Expected to Grow
The Medical Technologies business, one of our four current businesses, is being expanded in the
medical devices market, which is expected to undergo steady growth on a global basis, against
a backdrop that includes an aging society and the spread of preventive care. It is the newest of
our four businesses, but it enjoys the highest level of growth. Our business plan has it
accounting for around 13% of overall Nissha Group sales in the fiscal year ending December
2019.
We aim to enhance our distinctive product line in this business by expanding our product design,development, and other capabilities in order to respond widely to customer needs in the healthcare industry. In addition to contracted manufacturing of medical devices such as surgicalinstruments and medical electrodes for major medical devices manufacturers primarily in Europe
and the United States, we have our own brand called “Vermed®.” Our target is acute medicalcare in the field of heart disease, which is one of the leading causes of death worldwide. We also18

Sustainability Report 2019

focus on medical consumables, which are closely related to Nissha’s core technologies such as
printing, lamination, molding, and patterning.
There is increasing demand in the medical devices market for products and technologies toaddress the current trend toward minimally invasive treatments. For example, in treatments
using catheters, which are effective for minimally invasive treatment, improved operability ofequipment is required to achieve a high level of treatment, and innovation is necessary for thebuilt-in mechanisms. We believe that Nissha’s core technologies will be useful for solving
challenges of minimally invasive treatments because they can contribute to the shift toelectronic devices in medical equipment and miniaturizing and reducing the weight of products.

Product Development Leveraging Feedback from Medical Practices
In order to provide truly useful products, it is important to ascertain the needs of medical
practices and reflect them in product design and development. In December 2018, weparticipated in a medical devices learning program for catheter treatment organized jointly by anon-profit organization and medical institution in the State of New York in the United States.
This non-profit organization provides detailed training programs to companies on the use of
medical devices for vascular diseases based on its mission to accelerate development of nextgeneration technology in vascular treatment among physicians, engineers, entrepreneurs, andindustrial circles, which are key opinion leaders. Through our participation in this program, wewere able to ascertain more practical needs related to diagnosis and intervention procedures for
cardiac electrophysiologic studies (EPS) and recognize the challenges for developing current andnext-generation equipment.
This initiative of supporting innovation of treatments for heart disease by obtaining feedback
directly from medical practices is symbolic of our corporate stance of aiming for manufacturingthat is useful to society. By supporting advancement of medical technology through thedevelopment of products that address the needs of medical practices, the Medical Technologies
business aims to improve patient quality of life and continue contributing to the enrichment ofpeople’s lifestyles.

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Special Feature 2
Risk Management Activities Supporting a Changing Business
Aiming to Be a Production Factory Trusted by Customers

ーNPT Kaga Factoryー

The Devices business develops film-based touch sensors, which are the key product, force
sensors that detect the force of pressure, gas sensors that detect gas, and other such products.
These products are used widely in smartphones, tablets, game consoles, industrial equipment,
automobiles, and other such products in the global market. It is the biggest of Nissha’s fourbusinesses, accounting for around 60% of overall sales in the fiscal year ended December 2018.
Subsidiary Nitec Precision and Technologies, Inc. (NPT) is solely responsible for productdevelopment, trial production, and mass production for the business. With four factories in
Himeji, Kaga, Tsu, and Kyoto, it is trusted by global customers and is striving to build andmaintain a production system that can reliably handle the work.
In order to maintain the trust of customers, it is important that our factories not only provide astable supply of products, engage in efficient manufacturing, and implement thorough quality
control but also face challenges such as the environment, human rights, and health and safety
head on and engage in ethical operations. NPT has adopted the standards of the Responsible
Business Alliance (RBA) Code of Conduct for labor, health and safety, the environment, ethics,
etc. in its daily business activities and works continually to improve the level of factory
management through efforts including taking corrective action with respect to supplier
responsibility (SR) audits conducted by customers.
This special feature highlights the initiatives of the Devices business through a dialog between
Masahiro Nishida, Factory Manager of the NPT Kaga factory, and Naoko Emoto of the Corporate
Environmental and Safety Management Group of the Nissha Corporate General Affairs, whoprovides support for the environment and health and safety initiatives at the factory.

Raising the Level of the Factory Through RBA Compliance
Emoto: As one of the main factories supporting the Devices business, the NPT Kaga factory
addresses compliance with RBA standards and SR audits by customers on a daily basis.
Nishida: The RBA Code of Conduct provides global standards for electronic components liketouch sensors as well as automobiles, toys, aircraft, IoT, and other industries. These standards

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fall into the four categories of labor, health and safety, the environment, and ethics, and require
the development of a management system to promote them.

Masahiro Nishida
Factory Manager, Nitec Precision andTechnologies, Inc. Kaga Factory
In 1984, he joined Nissha and was involved in development ofelectronic component products at the Central Research Laboratory(at the time). He was transferred to the Industrial Materials
Business Unit in 2000 where he was in charge of quality control,
design, and technology development. In 2012, he was transferredto the Production Technology Department of the Devices Business Unit, and he started in
his current position in 2015.

Emoto: Some of the RBA requirements are stricter than legal standards, aren’t they?
Nishida: Yes. The global RBA Code of Conduct has many standards that go beyond what isrequired by Japanese law. It’s difficult to immediately address all of them, but in order to earn
the trust of our customers, compliance with global standards such as this is essential. It’s also arequirement for beginning or continuing to do business with customers.
Emoto: Compared to a few years ago, a lot more customers are requiring compliance with RBA
or similar codes of conduct. Many of our customers sell finished products, so they are often held
responsible not only for internal accidents and misconduct but also for accidents and misconductthat happens at their suppliers. The expectations and watch on companies by non-governmentalorganizations, non-profit organizations, and regular citizens is growing stricter day by day. It’s
not uncommon for a single incidence of misconduct to force the suspension of a company’s
operations or bring about boycotts of its products.

Naoko Emoto
Corporate Environmental and Safety Management Group of
Corporate General Affairs, Nissha Co., Ltd.
After joining the company, she was transferred from Finance
Division to Safety and Health Division, and started in her current
position in 2014. She is in charge of a wide range of operations,
including workplace safety patrols, internal training (as a lecturer),
and responding to customer SR audits. She works on activities togive added value to Nissha’s products and services.

Nishida: You're exactly right. The RBA is an initiative to require safety of the work environment,
respect for and dignified treatment of workers, responsibility for the environment, andoperational ethics in the electronic component, automotive, and other industries and their
supply chains. The Nissha Group complying with the RBA Code of Conduct means that we are asafe and reliable supplier for our customers, and it also increases our chances of being selectedby prospective customers.
Emoto: That’s why it’s important to implement a management system for continual
improvement of environmental and health and safety management, human rights initiatives,and other efforts. I often observe customer audits of factories as the person in charge ofNissha’s Corporate Environmental and Safety Management Group, and there’s a solid sense thatthe level of efforts and management taking place at all NPT factories is steadily improving.

Consideration of the Human Rights of All Factory Workers
Emoto: The whole RBA Code of Conduct places priority on considering human rights, doesn’t it?
I’ve heard that it comes from international human rights standards, including the ILO
Declaration and the Universal Declaration of Human Rights.

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Nishida: Yes. The RBA prohibits forced labor for all factory workers. Not only does it prohibit
slavery and human trafficking, but it also requires that all work be voluntary. On top of that, it
requires that workers be free to move about the facility where they work and to terminate theiremployment contract and also prohibits employers from holding onto worker IDs, passports, andother such documents. Moreover, if a worker paid an agent commission when looking for thejob, it requires that such fees be returned to the worker by the employer.
Emoto: The background behind that is apparently discrimination against and inhumane
treatment of migrant and foreign workers. The Kaga factory has accepted technical interns from
Vietnam, hasn’t it?
Nishida: Yes. Of course, we ensure that our treatment of technical interns is in compliance with
the RBA. We’ve put up bulletin boards and informational posters, including evacuation routes,
throughout the premises to ensure greater safety and peace of mind in daily operations.
Messages on the bulletin boards are, of course, provided in both Japanese and Vietnamese.

A talk with Vietnamese employees

Building a Foundation Capable of Handling Changes in the Business
Emoto: I see. By managing the factory based on the RBA Code of Conduct, you’ve established afoundation that allows global customers to entrust you with work with peace of mind.
Nishida: Exactly. That foundation provides fundamental support to Nissha, which is amanufacturing company. For example, even if there is a change in a product produced at thefactory, our customers can entrust us with the work with peace of mind. The foundation of thefactory cultivated through RBA compliance is one of Nissha’s strengths.
Emoto: Speaking of business changes, I heard that you were involved in development at theIndustrial Materials Business Unit prior to being transferred to the Devices Business Unit.
Nishida: Yes. At the Industrial Materials Business Unit, I was in charge of development, design,and quality control. I take advantage of that experience in my current job of managing thefactory. About 25 years ago, I was involved in development of components for LCD panels in acompany-wide development organization. The photolithography process* I worked on at thattime are now being applied to the touch sensors we produce.
Emoto: You’ve been along for the ride as Nissha has evolved.
Nishida: Nissha listens to the needs of changing markets and customers and has grown by
creating and delivering products and services to meet those needs. I hope to build an evenstronger foundation to continue supporting the evolving business.
*Photolithography process: A technology that forms high precision patterns by exposing thesurface of a substance coated with photo-sensitive material (resist) to intensive light.

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Organizational GovernanceWe recognize corporate governance as a key management priority,

and work to maintain and improve our structure toward achieving sustainable growthand enhancing our corporate value over the medium to long term.

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Corporate Governance
Basic Approach to Corporate GovernanceNissha, since its foundation, has been executing strategies that promptly address external challenges, undercommitted leadership. The Company believes that strengthening corporate governance along with suchleadership will promote agile and decisive decision making, as well as ensuring management transparency
and fairness. Based on this recognition, the Company places corporate governance as one of the key
management issues, strives to maintain and improve it, and seek out sustainable corporate growth and anincrease in corporate value over the medium- to long-term.
In an effort to clarify the Nissha Group’s basic approach to and policy for implementing corporate governance,in October 2015 we established a Corporate Governance Policy.
Corporate Governance Policy (October 31, 2018)[245.8KB]

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Overview of Corporate Governance

We have established a corporate governance structure as shown in the figure below.
*as of March 22, 2019

Corporate Governance Structure

We make major business judgments and oversees the execution of the duties of the Directors of the Board at
meetings of the Board of Directors, and as a company with an Audit and Supervisory Board, will strive tomaintain and improve the oversight and checking functions by Audit and Supervisory Board Members and an
Audit and Supervisory Board which are independent from the Board of Directors.
We adopt a corporate officer system in an effort to clarify the powers and authority in the speedy decision
making and the implementation of decisions, under which the Board of Directors will be in charge of theformulation of strategies and business oversight, and the Corporate Officers will be in charge of the executionof business. In addition, we also establish a Nomination and Remuneration Committee as an advisory panel
for the Board of Directors.
The Board of Directors formulates our Policy for Internal Control, and prepares and oversees the operation ofsystems designed to ensure appropriate business execution in the Nissha Group.
The Chairman of the Board, President and CEO chairs the following meetings toward appropriate and efficientbusiness execution.
● Management Meeting: Comprises Inside Directors of the Board as core members. Deliberates on mattersrelating to the direction of important managerial issues within the scope of the President’s authority.
● Monthly Business Review (MBR): Reviews the progress of business strategies based on key performanceindicators (KPI) and determines actions to take over the short term. The purpose of the MBR is to monitor
business execution by Corporate Officers and quickly respond to changes in the business environment.
● Investment Committee: Reviews particularly important investment matters prior to submission to the Boardof Directors for approval.
We also have in place the following organizations in order to enhance the management monitoring function,
ensure that business execution complies with laws and regulations as well as our Articles of Incorporation, andto manage risks.
● CSR Committee: Chaired by the Chairman of the Board, President and CEO. From the perspective of
increasing corporate value over the medium- to long-term and based on the business portfolio sought by themedium-term business plan, ranks in order of priority risk factors that may prevent business continuity, anddemonstrates leadership in activities to minimize those risks implemented by its eight subcommittees, namely

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Corporate Ethics and Compliance, Business Continuity Management, Labor and Human Rights,
Environmental, Safety and Health, Information Security, Trade Administration and Control, Quality, andCustomer Satisfaction.
● Disclosure Control Committee: Chaired by the Chairman of the Board, President and CEO. Discusses thenecessity of timely disclosure of corporate information and the contents of disclosure, and discloses important
information on the Nissha Group in a timely, proper manner.
● Internal Audit: Under the direct control of the Chairman of the Board, President and CEO, audits the internal
control systems of the Nissha Group, analyzes and evaluates their status of establishment and operation, andoffers suggestions for improvement.
>Internal Control System, Risk Management and Initiatives of Internal Audit>Corporate Ethics and ComplianceDirectors of the Board and the Board of Directors
Policy and Procedures for Appointment/Dismissal of Directors of the Board
Our Board of Directors comprises an appropriate number of 12 or fewer members, taking into account diversity
and balance between the knowledge, experience, and skills of the individual to ensure that the Board fulfills itsrole of making important management decisions and overseeing the execution of duties by Directors of theBoard and Corporate Officers.
Inside Directors of the Board are elected for their acquaintance with our operations and suitability for carryingout sound growth strategies and overseeing business execution. Several Independent Outside Directors of theBoard are elected who satisfy the requirements of not only the Companies Act but also the “Standards for
Independence of Independent Officers”, established by our Board of Directors.
In the event a Director of the Board engages in behavior that damages the trust or honor of the Company,
engages in behavior that markedly diminishes the Company’s corporate value, or other just grounds are foundwhich give rise to a finding that the Director of the Board is unfit for the performance of his or her duties, theBoard of Directors will make the corresponding Director of the Board the subject of a proposal for dismissal.
To ensure clarity in management responsibilities for each fiscal year, the term of office of Directors of theBoard is set at one year.
The Board of Directors makes decisions on a proposal for the appointment/dismissal of a Director of the Board
to be submitted for deliberation to the general meeting of shareholders, based on the reports of theNomination and Remuneration Committee based upon the above stated policy.
Standards for Independence of Independent Officers (February 14, 2018)[88.1KB]

Diversity of the Board of Directors *as of March 22, 201926

Sustainability Report 2019At present, our Board of Directors consists of nine members, of which four are Independent Outside Directorsof the Board with one being a woman.
The Board includes individuals with experience abroad or at another company, or holding a master’s degree inbusiness administration. Each of our four Independent Outside Directors of the Board has experience into
general corporate management and business management in manufacturing industry, specialized knowledge
in corporate governance, business strategies, management strategies, legal affairs and compliance, and broad
insight into monetary economics.
We consider that the four Independent Directors satisfy standards for independence of outside officers
stipulated in the “Guidelines concerning Listed Company Compliance, etc.” by the Tokyo Stock Exchange,
hence they have sufficient independence and there is no risk of conflict of interest with general shareholders.
Therefore, we have designated them as Independent Officers.

Role of the Board of Directors
Our Board of Directors convenes for regular meetings once a month and for extraordinary meetings asneeded. The meetings are chaired by the Chairman of the Board, President and CEO.
We build a system which enables the Board of Directors to make decisions regarding the distribution of
surpluses, the acquisition of treasury stock and other matters to be decided by general meeting ofshareholders in order to ensure maneuverability and expertise in business judgment.
The Board makes decisions on matters that require resolution by the Board as stipulated by legislation and ourArticles of Incorporation, as well as on important managerial matters as stipulated by the Regulations of theBoard of Directors and other internal regulations, and overseas business execution by Directors of the Board
and Corporate Officers.
We confirm an investigation into the existence of any transactions between the Company and related parties
such as the Directors of the Board and Audit & Supervisory Board Members, Corporate Officers, and theirrelatives, and if any material facts exist, they will be resolved by the Board of Directors, which will make adecision after duly deliberating the reasonableness of the transaction. In addition, we must obtain the approvalof the Board of Directors when engaging in conflict of interest transactions as prescribed by laws andregulations with the Directors of the Board.

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Initiatives to Enhance the Content of Discussions
Our Board of Directors meetings involve brisk, substantive discussions. Independent Outside Directors of theBoard draw on deep insight into their respective fields of specialty to provide accurate advice and opinions,contributing to the enhancement of both management transparency and the Board’s oversight functions.
Toward improving the quality of discussions, we distribute a meeting agenda and related materials in advance,and explain particularly important matters to Independent Outside Directors of the Board and Independent
Audit and Supervisory Board Members beforehand. Toward thoroughness, important issues such as themedium-term business plan and major M&A deals are discussed once or twice as matters to be reported prior
to being listed as matters to be resolved. By allotting times for briefing and discussion in accordance with thedegree of importance of the matter, we aim for sharp, focused meeting operation.
In an effort to enhance the Board’s monitoring function, the status of matters such as major M&A deals andestablishment of subsidiaries and joint ventures are reported in meetings after a certain amount of time has
passed since the resolution at the Board.
To secure attendance by as many Directors of the Board and Audit and Supervisory Board Members as
possible, the secretariat of the Board of Directors creates an annual schedule of board meetings and notifies
members in advance.

Evaluation of Effectiveness of the Board of Directors
Once a year since April 2016, our Board of Directors analyzes and evaluates board membership and operationin the previous fiscal year toward continuous improvement in the effectiveness of corporate governance.
From January to March 2019, we distributed the results of a questionnaire covering all board meetings held in
FY2018.12 and disclosed an outline of the results in a Corporate Governance Report submitted to the Tokyo
Stock Exchange in March.

Nomination and Remuneration Committee
PurposeWe establish a Nomination and Remuneration Committee as an advisory panel for the Board of Directors inorder to ensure the objectiveness and fairness of the appointment/dismissal of Directors of the Board and theappointment of Audit & Supervisory Board Members, as well as the remuneration of the Directors of the Board.
The chair and the majority of the members are selected from Independent Outside Directors of the Board.

Role
With consultation from the Board of Directors, the Nomination and Remuneration Committee deliberates on
and provides a response regarding the following matters.
(1) The appointment/dismissal standards for Directors of the Board and the appointment standards for Audit &Supervisory Board Members(2) The appointment/reappointment/dismissal for Directors of the Board and the appointment/reappointment
for Audit and Supervisory Board Members(3) Policy on remuneration of Directors of the Board(4) Remuneration of Directors of the Board

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Membership *as of March 22, 2019
(1) Four independent members: Kazuhito Osugi (Independent Outside Director of the Board and Committee
Chair), Makoto Ando (Independent Outside Director of the Board), Asli M. Colpan (Independent Outside
Director of the Board), and Kazumichi Matsuki (Independent Outside Director of the Board)(2) Two inside members: Junya Suzuki (Chairman of the Board, President and CEO), Hayato Nishihara(Director of the Board and Senior Executive Vice President)

Audit and Supervisory Board Members andthe Audit and Supervisory Board
Policy and Procedure for Electing Auditors
Our Audit and Supervisory Board comprises an appropriate number of four or fewer members.
Inside Audit and Supervisory Board Members are elected for the wealth of experience required in auditing.
Independent Audit and Supervisory Board Members are elected from attorneys and certified public
accountants with a focus on specialized knowledge in legal affairs, financial matters, and accounting, who
satisfy the requirements of not only the Companies Act but also the “Standards for Independence ofIndependent Officers”, established by our Board of Directors.
The Board of Directors, upon gaining the consent of the Audit & Supervisory Board, make decisions on a
proposal for the appointment of Audit & Supervisory Board Members to be submitted for deliberation to thegeneral meeting of shareholders, based on the reports of the Nomination and Remuneration Committee based
upon the above stated policy. At present, our Board consists of four members, of which two are Full-time Audit
and Supervisory Board Members and two are Independent Audit and Supervisory Board Members.

Role of Audit and Supervisory Board Members andthe Audit and Supervisory Board
Our Audit and Supervisory Board Members and Audit and Supervisory Board audit the execution of duties byDirectors, Members of the Board and Corporate Officers as stipulated by legislation, our Articles ofIncorporation, and internal regulations, and make appropriate decisions from an independent, objective
standpoint on electing and dismissing accounting auditors and exercising their authority relating to audit fees,
etc. Independent Audit and Supervisory Board Members draw on their highly specialized knowledge as
attorneys and certified public accountants to contribute to the maintenance and improvement of our corporate
governance structure.
Our Audit and Supervisory Board determines the duties of Audit and Supervisory Board Members, the audit
structure, and the audit standards that describe the evaluation basis for audits and the action guidelines. In
accordance with these, the Board develops auditing policies and Nissha Group's Corporate Governanceauditing plans.
Complying with these, each Audit and Supervisory Board Member attends the meetings of the Board of
Directors and other important meetings, reviews approval documents and other important documents,
performs visiting audits at major offices and affiliated companies, and conducts audits by exchanging opinions
regularly with the President and CEO, Directors, and General Managers. The Audit and Supervisory Board
holds regular meetings with the Accounting Auditor, Internal Audit, and corporate division including the
Corporate Finance and Corporate Legal Affairs to closely cooperate with each other and increase the audits’
efficiency. In addition, the Board regularly holds the Group Meeting of Audit and Supervisory Board Members,consisting of full-time Audit and Supervisory Board Members of the Company and Audit and Supervisory
Board Members of its affiliated companies, in order to strengthen and enhance audits throughout the whole
Nissha Group.

Policy on Determining Remuneration of Directors of the Board andAudit and Supervisory Board Members
As a rule, officer remuneration (for Directors of the Board and Corporate Officers responsible for businessexecution) follows a system corresponding to degree of contribution to the enhancement of our corporate
performance and corporate value. A breakdown of officer remuneration and the procedure by which it isdetermined are as follows.

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Remuneration of Directors of the Board
Inside Directors of the Board
Remuneration of Directors of the Board consists of basic compensation, bonuses, and stock compensation.
Basic compensation is set according to the individual’s position and the significance of his or her role, andreflects evaluation of the individual’s degree of contribution and performance. Bonuses are based on
consolidated business results (net sales, EBITDA, performance of the business for which the individual is
responsible, etc.) in the relevant fiscal year, and reflect evaluation of the level of target achievement.
The stock compensation program we have in place is called the Board Benefit Trust (BBT). This is a systemlinked to business results in which Nissha’s shares are acquired through a trust using funds contributed by
Nissha, and these shares are paid to Directors of the Board through the trust in accordance with a Policy on
Directors’ Stock Compensation, established by our Board of Directors. By further clarifying the link between
Directors’ compensation and the value of the company’s shares, and having our Directors of the Board
experience together with our shareholders not only the benefits of a rise but also the risks of a decline in shareprices, the system aims to increase awareness in Directors of the Board of the importance of improving
business results and enhancing the Nissha corporate value over the medium to long term.
The program awards points based on the individual’s position, points calculated according to consolidated net
sales and EBITDA each fiscal year, and in the closing year of a medium-term business plan, points calculated
according to the level of achievement of target management indices return on investment (ROE) , return on
invested capital (ROIC) and Equity Ratio. On a fixed day in the closing year of the medium-term business plan,
the points are converted into Nissha shares, and Directors of the Board are paid a cash equivalent of theseshares at market value.
Independent Outside Directors of the Board
Remuneration of Independent Outside Directors of the Board consists of basic compensation only, based on
factors such as the individual’s career and duty etc. Remuneration linked to business results is not provided,
as the role of Independent Outside Directors of the Board is separated from business execution.

Procedure
The Board of Directors make inquiries to the Nomination and Remuneration Committee regarding the basic
policy on Directors’ remuneration and the remuneration of Directors of the Board, and will enlist theappropriate involvement and advice of Independent Outside Directors in conducting an examination of the
remuneration.

Remuneration of Audit and Supervisory Board Members
Remuneration of Audit and Supervisory Board Members is determined through discussion with the individual
within the scope of total remuneration approved at the General Meeting of Shareholders.

Remuneration by Category
Total
Title

Number of(Million yen)

Remuneration

Board
Basic

(Million yen)

Remuneration

Bonuses

Members

Stock

Directors of theBoard (Excluding
Independent Outside

252

168

60

23

6

28

28

-

-

2

48

48

-

-

7

Directors of the Board)
Audit and Supervisory Board
Members(Excluding
Independent Audit andSupervisory
Board Members)
Independent Outside
Directors and Independent
Audit and Supervisory Board
Members

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Corporate Officers *as of January 6, 2019
In order to adapt flexibly to changes in the business environment, we appoint Corporate Officers also taking
into account diversity and balance between the knowledge, experience, and skills of the individual. The term ofoffice of Corporate Officers is set at one year.

At present, we have 16 Corporate Officers, of which two are foreign nationals.
These include individuals with experience abroad or at another company, or holding a master’s degree inbusiness administration.

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Internal Control System

NisshaCo.,Ltd.buildsandoperatesaninternalcontrolsysteminaccordancewithaPolicyforInternalControlformulatedbytheBoardofDirectors.Thesystemisdesignedtoensurethatthedutiesofeachinternalorganizationarecarriedoutlegally,appropriately,andeﬃcientlytowardenhancingourcorporatevalue.Toensurereliabilityofﬁnancialreporting,wesubmittheassessmentresultsofourinternalcontrolsystemintheformofinternalcontrolreportstothePrimeMinisterofJapananddisclosethecontentstoourshareholdersandinvestors.
Policy for Internal Control
Pursuant to the Companies Act and the Ordinance for Enforcement of the Companies Act, the Company shallestablish systems to ensure the properness of operations (hereinafter referred to as “Internal Control”) of thegroup consisting of the Company and its subsidiaries (hereinafter referred to as the “Nissha Group”) as
follows:
1) Systems necessary to ensure that the execution of duties by Directors of the Board and employeesof the Nissha Group complies with laws and regulations and the Company’s Articles of Incorporationi. The Company shall establish a “Guideline of the Corporate Ethics and Compliance” and “Code of
Conduct” based on its “Mission,” “Shared Values,” etc., which specify the basis of mission and thought
common to the entire Group, so as to comply with laws and social ethics from a global point of view.
ii. The Company shall establish a Corporate Ethics and Compliance Subcommittee under the internal
regulations to carry out monitoring and educational activities to ensure compliance with laws andregulations, the Company’s Articles of Incorporation and social norms. In addition, the Company shallappoint a Manager and Leader in charge of promotion in each business unit of the Nissha Group toestablish a structure for promoting Corporate Ethics and Compliance. An “in-house reporting system”
shall be established and operated, through which employees may provide information directly to theCompany, while due measures are taken for the protection of whistleblowers.
iii. The Company shall elect multiple Independent Outside Directors of the Board to maintain and enhance
the function of supervising the execution of duties by Directors of the Board.
In addition, the Company shall establish a Nomination and Remuneration Committee as an advisory
panel for the Board of Directors of the Company in order to ensure the objectiveness and fairness of thenomination of Directors of the Board and Audit and Supervisory Board Members as well as the
remuneration of the Directors of the Board. The Nomination and Remuneration Committee shall bechaired by an Independent Outside Director of the Board and the majority of its members shall be
Independent Outside Directors of the Board.
iv. The Internal Audit Division, which is under the direct control of the Chairman of the Board, President
and CEO, shall analyze and evaluate the state of the establishment and operations of an Internal
Control system, propose an improvement plan, and enrich the system.
v. The Company shall set a basic policy to counter antisocial forces, shall not have any relationship with
antisocial forces, and shall not respond to any unreasonable demands with a resolute attitude incompliance with the Regulations regarding antisocial forces, and the Nissha Group shall strive forthorough implementation of such measures2) Systems regarding the retention and management of information relating to the execution of duties
by Directors of the Board
i. The Company shall retain and manage information regarding execution of duties by Directors of theBoard, including the minutes of the General Meetings of Shareholders, the minutes of the meetings ofthe Board of Directors and the requests for managerial decision, properly and with certainty pursuant to
the laws and regulations and in-house regulations on information management, and the information
shall be maintained in a condition which can be inspected.
ii. The Company shall disclose important information on the Nissha Group timely and properly by
establishing a Disclosure Control Committee which shall discuss the necessity of timely disclosure ofcorporate information and the contents of disclosure.

3) Rules and other systems for risk management of the Nissha Groupi. The Company shall formulate the Basic Policy for Risk Management to specify the Nissha Group’s
initiatives in risk management.

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ii. The Company shall respond to the risk of managerial losses by organizing company-wide and crossorganizational subcommittees to manage the issues of Corporate Ethics Compliance, BCM, Labor andHuman Rights, Environment Health and Safety, Information Security, Trade Administration and Control,
Quality, and Customer Satisfaction under the CSR Committee led by the Chairman of the Board,
President and CEO as the acting Committee Chairman.
iii. Each subcommittee and the superintending division shall establish a management policy, rules, etc.;
determine risk analysis, risk assessment, and related measures; conduct daily monitoring activities; andreport the results of reviews to the CSR Committee.
iv. The CSR Committee shall summarize major risks faced by the Company on a regular basis for review
by management while reporting them to the Board of Directors.

4) Systems necessary to ensure the efficient execution of the duties by Directors of the Board of the
Nissha Groupi. Through the introduction of the corporate officer system, the Company shall establish functionalsegregation between strategy development and management monitoring functions to be undertaken by
the Board of Directors and business execution functions to be undertaken by the Corporate Officers.
ii. The Board of Directors of the Company shall approve medium-term business plans, and the Directors of
the Board and employees shall execute operations based on such strategic and performance plans.
iii. The Chairman of the Board, President and CEO shall request the Corporate Officers to report the statusof their execution of business and confirm whether or not the business is executed according to theplans at a monthly meeting (MBR: Monthly Business Review).
iv. The Company shall share the status of execution of business by the Corporate Officers and the strategy
implementation items to be undertaken by its organizations through the use of IT to improve businessefficiency.

5) Systems necessary to ensure the proper business operation of the Nissha Groupi. The Company shall formulate the Affiliated Company Management Regulations to set basic
administration policy for the management of each company of the Nissha Group. In addition, theCompany shall manage the performance of important operations of each company of the Nissha Groupby designating matters requiring approval of and reporting to the Company with regard to the executionof those operations in the Regulations on Requests for Managerial Decisions.
ii. The Company shall appoint its officers or employees to become Directors of the Board and Audit andSupervisory Board Members of each company of the Nissha Group in order to ensure the proper
execution of operations.
iii. The corporate division shall manage the proper execution of operations at each company of the Nissha
Group and lead and counsel it, as necessary.
iv. The Company shall periodically convene the Group Audit and Supervisory Board meeting for theexchange of information among the Audit and Supervisory Board Members of the Nissha Group andstrive to improve and strengthen the audits for each company of the Nissha Group.

6) Matters regarding employees assisting the duties of Audit and Supervisory Board Members, when
Audit and Supervisory Board Members ask for appointment of such employees, and matters regarding
the independence of such employees from Directors of the Board
i. The Company shall establish an Auditor and Supervisory Board Member’s Office to assist the duties of
Audit and Supervisory Board Members, and shall arrange for employees to be exclusively assigned to
the Office.
ii. The Auditor and Supervisory Board Member’s Office shall belong to the Audit and Supervisory Boardand be independent from Directors of the Board. With regard to matters regarding the personnel affairsof the employees of the Auditor and Supervisory Board Member’s Office, approval of the Audit andSupervisory Board shall be obtained through consultation.

7) Systems for reporting to Audit and Supervisory Board Members by Directors of the Board andemployees of the Nissha Group and other systems regarding reporting to Audit and Supervisory
Board Members
Directors of the Board and employees of the Nissha Group shall quickly report to the Audit and Supervisory
Board items that will potentially have a serious influence on the Nissha Group, the status of risk management,
the results of internal audits, the status of internal reports and the details of such reports, etc. The Audit andSupervisory Board Members of the Company shall request the Directors of the Board and employees of the
Nissha Group to report such matters as necessary. In addition, whistleblowers shall not be treateddisadvantageously in any way whatsoever as a consequence of such reporting.

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Sustainability Report 20198) Other systems necessary to ensure the effective audit by Audit and Supervisory Board Members
i. The regular meetings for exchanges of opinions between the Chairman of the Board, President andCEO, Directors of the Board and the Audit and Supervisory Board shall be held. The Audit andSupervisory Board Members shall also set up regular meetings with the Accounting Auditor, Internal
Audit Divisions and corporate division to cooperate with them closely.
ii. The Audit and Supervisory Board Members shall attend not only the meetings of the Board of Directors,
but also other important meetings, and express their opinions as necessary. In addition, they shall also
examine the requests for managerial decision and other important documents.
iii. The Company shall ensure objectivity and effectiveness of audits through Independent Audit andSupervisory Board Members, including those who have considerable knowledge concerning financeand accounting or legal affairs, such as a certified public accountant or an attorney, etc.
iv. The Company shall bear expenses necessary for the execution of duties by the Audit and Supervisory
Board Members. If an Audit and Supervisory Board Member requests the Company to make anadvance payment of such expenses pursuant to laws and regulations, the Company shall promptly
comply with the request upon confirmation.

Risk Management
With a risk management policy in place to clarify our approach, we promote risk management to counter risks
that may have a significant impact on our business activities, and to be fully prepared in the event an
emergency does occur.
Having organized a CSR Committee chaired by the President and CEO and defined risks that require
addressing as “any thing or situation that hinders Nissha Group’s implementation of Mission,” we are working
to reduce all conceivable risks associated with business processes, including those related to disasters,
accidents, and compliance, as well as to appropriately cope with risks that have surfaced.

Risk Management Policy
The Nissha Group strives to accurately identify the risks we face, avoid unexpected loss,
and appropriately control risks, thereby ensuring business continuity and enhancing ourcorporate value toward realizing the enrichment of people’s lives by creating technology
and developing it into economic and social value.
1.We build and maintain a structure for responding to the various risks present in ourbusiness environment.
2.We promote risk management at the managerial level toward conducting
organization-wide activities and preserving management resources.
3.In the event of an emergency, such as a situation with critical managerial
consequences or a natural disaster, we work to minimize damage, resume businessactivities as quickly as possible, and prevent recurrence while prioritizing the safetyof human lives.
4.We conduct in-house training to enhance awareness of and the ability to respond torisks, and ensure that each employ takes responsible, swift, and appropriate action.
5.We periodically review our risk management structure, including this policy, andmake improvements on a continuous basis to ensure effective risk management at
all times.

Established on July 1, 2015
Revised on January 1, 2018
Junya Suzuki
Chairman of the Board
President and CEO
Nissha Co., Ltd

34

Sustainability Report 2019We have in place a set of Emergency Response Regulations that defines “emergency” and stipulates theaction and structure required between initial response to a disaster and the early stages of business recovery.
For instance, in the event of a serious interruption of business due to emergency over a certain level, such asa large earthquake or new global influenza epidemic, we are to set up a response task force headed by thepresident at Global Headquarters in Kyoto. We also stockpile supplies at major bases in Japan, distribute“survival cards” listing information about what to expect and do should an earthquake strike, and educate
employees using an e-learning system to promote awareness about the general rules for action and response
in an emergency.
Our Basic Plan for Business Continuity Management (BCM) stipulates in detail the steps to be taken in orderto promote early recovery of key business locations. In efforts to verify the effectiveness of these steps, weorganize business continuity planning (BCP) exercises on a regular basis for employees including themanagement. Any changes in management environment and reorganization are reflected quickly in the latest
editions of relevant documents.
Through these activities, we aim to secure the safety of Nissha Group employees and their families, contributeto the restoration of communities and of society at large, and ensure business continuity and maximum service
to our customers.

Column 1: Exchanging Views on Risk Management with
Nissha Group Companies in Europe and the US

In September 2017, representatives from Nissha Group companies in Europe and the United States gatheredat Nissha USA for an exchange of views on risk management. The session provided a good opportunity to
deepen communication beyond national and cultural boundaries about topics centering on the Nissha Group’s
approach to risk management, BCM, and risk hedging with property insurance.

Column 2: BCP Training for Earthquake Emergency

On December 22, 2016, we conducted BCP training at Nissha Group’s Global Headquarters targeting
primarily the management. The exercise simulated a situation in which bases of the Devices businessin Japan were struck by an earthquake. The management received reporting from relevant divisions,provided instructions in response, and verified the effectiveness of their decision-making flow. The
President served as leader of the headquarters task force. Following his instructions, management,
corporate divisions, and bases worked as one and succeeded in taking appropriate action.
We quickly resolved the challenges that surfaced through this session, and will continue to organize
further training toward even more effective BCP. Our goal is to build a structure capable of achieving
swift restoration and business continuity in the event of a real-life emergency.

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Sustainability Report 2019

Initiatives of Internal Audit
Internal Audit, to maintain impartiality and objectivity in its functions, serves as an organization independent ofbusiness execution divisions in drawing up annual auditing plans, investigating whether business activities arecarried out appropriately and efficiently, and offering advice and recommendations to internal organizations.
Furthermore, it conducts follow-up audits to confirm how each finding that has surfaced through the audits is
improving. The office makes reports and offers suggestions based on the results of its audits to the President
and CEO at monthly meetings, and presents particularly important matters at Board of Directors’ meetings.
Moreover, it holds meetings with full-time Audit and Supervisory Board Members every three months toestablish mutual cooperation with the Audit and Supervisory Board.
Audits in the fiscal year ended December 2017 focused on communication covering strategies and theexecution thereof at business divisions, business administration and the process of post-merger integration at
Nissha Group companies in Japan, and safety control structures at factories in Japan. Internal Audit alsoestablished the scope of evaluation and performed an independent assessment of financial reporting-related
internal controls in accordance with the Financial Instruments and Exchange Act.

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Sustainability Report 2019

Corporate Ethics and Compliance
Guideline of the Corporate Ethics and Compliance“Corporate Ethics and Compliance Guidelines” is the fundamental guideline for thinking about the corporate
ethics and compliance of Nissha Group that each employee can implement to realize Nissha Philosophy. We
set forth the following 4 Foundational Rules and 10 Important Points. All executives and employees work topromote and thoroughly implement corporate ethics and compliance.

Foundational Rules

1.Wevalueandholdontohighethicalstandards,integrityinouractions,andactwithgood
commonsensethroughourresponsiblebehavior.
2.WepursuetheCo-existencewiththeStakeholdersincludingourcustomers,
shareholders,suppliers,localcommunitiesandouremployees.
3.Wewillcomplywithalllawsandregulations,internalcorporateregulations,andsociallyacceptedrulesandnorms.
4.Ifwewitnessanyactionscontrarytothe"CorporateEthicsandCodeofConduct"oraresuspiciousofcertainbehaviorsordecisions,weshouldimmediatelyreporttoandconsult
withoursupervisors.
10 Important Points

1.FreeandFairCompetition
2.PreventionofCorruptPractices
3.ProductQualityandSafety
4.ProtectionofIntellectualProperty
5.AppropriateHandlingofInformationandResources
6.CompliancewithImport/ExportRegulations
7.ProperDisclosureofInformationandCompliancewithInsiderTradingRegulations
8.EnvironmentalProtectionandConservation
9.CreatingaComfortableWorkplace,andCommunityandSocialContribution
10.RespectforHumanRights

Promotion Structure and Initiatives
All Nissha Group bases in Japan and abroad appoint managers and group leaders in charge ofpromoting corporate ethics and compliance. These managers and group leaders not only
conduct training in their respective divisions but also implement corporate ethics and complianceon a day-to-day basis through organizational management, serve as a liaison for referring
specific cases to Corporate Legal Affairs, and take on the role of consultant in their workplace.

37

Sustainability Report 2019In order to increase awareness of the managers and group leaders, we distribute quarterly
issues of Corporate Ethics and Compliance News.
Designating every October and November as corporate ethics and compliance month, weorganize group-wide training at all bases in and outside Japan. In the fiscal year ended
December 2018, we implemented e-learning for employees at bases in Japan, and got them toconsider the creation of organization where scandals are less likely by looking at cases fromother companies. For employees at production bases, who do not use a PC, and employees atoverseas bases, we conducted practical training and a check test tailored to each base’s
operations, laws, and customs. Outside attorneys and Legal Affairs at Nissha’s Global
Headquarters in Kyoto, serve as instructors in group training sessions at a number of bases.
We carried out a company-wide questionnaire after training was completed, and collected abroad range of information on workplace conduct that might constitute a breach of corporate
ethics and compliance, and what conduct should be improved. Cases where improvement iswarranted are dealt with, and their results are reported together with the outcomes of training
to the Corporate Ethics and Compliance Subcommittee.
Moreover, in the fiscal year ended December 2018, we had an opportunity to learn about
handling of confidential information from other companies’ cases. In addition to a briefing on thecontents of the Unfair Competition Prevention Act, we provided training by an external instructor
for employees responsible for mergers and acquisitions (M&A) on the regulations regarding
insider trading. Also we posted information about insider trading regulations, through quarterly
publication on the Nissha intranet to enlighten employees.

Corporate Ethics and Compliance Structure38

Sustainability Report 2019

Distribution of Added Value to Stakeholders
Our distribution of added value to stakeholders in the fiscal year ended December 2018 is givenin the table below. Distribution to shareholders, employees, creditors, government agencies,
and society increased over the previous fiscal year. The main part of the increased distribution
to the local community was assistance funds for those affected by the torrential rains in westernJapan of July 2018.

Distribution of Added Value to Stakeholders

Stakeholders

Shareholders

AmountDescription(million yen)
1,519

Remarks
Figures published in financial

Dividends

results
Calculated by Corporate

Sum of expenses for salaries,
Employees

9,865

wages, bonuses, andretirement benefits

Social Responsibility, using
results of the fiscal year ended
December 2018 (excluding
personnel expenses included
in manufacturing costs)

Creditors(financial institutions)
Government agencies(national, local)

842

Figures published in financial

Interests

results

Sum of taxes paid including
2,111

corporation tax, inhabitant tax,
and enterprise tax

Figures published in financial
results

Money and in-kind donations,provision of facilities, andemployees’ volunteering
Society61

services converted intomonetary value (using methods

Calculated by Corporate
Social Responsibility

established by Nippon
Keidanren)
Company(internal reserves)

2,791

Amount of increase in

Figures published in financial

surpluses

results

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Sustainability Report 2019

Human Rights
We operate a management system based on

our Basic Policy on Labor and Human Rights,

and strive to observe legislation, international norms,

and code of conduct such as that provided by the EICC.

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Sustainability Report 2019

Human Rights
Basic Policy on Labor and Human Rights
We at Nissha have in place and adhere to a basic policy on labor and human rights toward realizing our
Mission. The 10 principles of the United Nations Global Compact and the electronics and automotive
industries’ code of conduct provided by the Responsible Business Alliance (RBA) were used as reference informulating the policy. In addition to Japanese, English, Chinese, Korean and Malay, which we already had,
this policy has been translated into Spanish and German in 2018, and widely distributed to the Nissha Group.

Basic Policy on Labor and Human Rights
The Nissha Group will observe the international norms, laws and ordinances related tohuman rights and labor standards and will make efforts to continually improve humanrights and labor standards.
1. Child labor: We will prohibit child labor and also implement relief measures.
2. Forced labor: We will eliminate all forms of forced labor, including bonded labor.
3. Health and safety: We will secure the health and safety of our employees and provide ahygienic workplace environment.
4. Freedom of association and the right to collective bargaining: We will guarantee the right toorganize and the right to collective bargaining.
5. Discrimination: We will not discriminate based on a person’s age, disability, ethnic group,
gender, marital status, nationality, political support, race, religion, sexual orientation, pregnancy
or membership in a union. We will also not be party to this.
6. Punishment: We will not perform physical punishment or mental or physical coercion and wewill not engage in verbal abuse.
7. Working hours: We will observe the laws, ordinances and labor agreements related to working
hours, rest breaks and holidays.
8. Remuneration: We will observe the laws and ordinances related to the payment of appropriate
wages.
June 1, 2018
Junya Suzuki
Chairman of the Board
President and CEO
Nissha Co., Ltd

In April 2012, we joined the United Nations Global Compact, thereby declaring that we support and will makecontinuous efforts to practice the initiative’s 10 principles in the areas of human rights, labor, the environment,
and anti-corruption. We include the 10 principles in our Corporate Ethics and Code of Conduct Manual, citing“respect for human rights” as a key item. The manual is produced in the Japanese, English, and Chinese
languages and distributed through regular study sessions targeting all employees. After each training session,
we collect signatures from our employees confirming that they understand and will base their conduct on thecontents of the manual.

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Sustainability Report 2019

Building and Operation of a Management System
We adhere to international norms and laws on human rights and labor standards, and strive forcontinuous improvements in the content of our activities.
The Labor and Human Rights Subcommittee of our CSR Committee is currently promoting theestablishment of a compliance system for the Responsible Business Alliance (RBA) code of
conduct at all major Nissha Group bases and important suppliers in Japan. In the fiscal year
ended March 2016, it built and started to operate a labor and human rights management
system. And in the fiscal year ended December 2017, it followed this up with internal audits ofmajor Nissha Group companies. There were audit findings such as the lack of knowledge
regarding the existence of the Harassment Help Desk, but this was corrected through the use of
e-learning for employees.
In the fiscal year ending December 2019, we have been engaging in human rights risk
assessment at our overseas production bases and training foreign technical interns in order todeal with the material topic of respect for the human rights of employees and the strategic topic
of understanding and reducing human rights risks. In addition, we are promoting compliancewith work style reforms, measures to encourage flexible work styles and relaxing lifestyles. We
are also providing in-house training on harassment.

HotlineNissha has installed a hotline for the Nissha Group in Japan as well as selected overseas bases,
and created an internal regulation (Internal Reporting Code) based on the Whistleblower
Protection Act. The purpose is to quickly grasp the facts, about illegal, unfair or unethicalconduct by an organization or individual, minimize the risk associated with a crisis, promote
ethical and legal compliance, and ultimately enhance our corporate value. In the interest ofneutrality and fairness, the hotline reaches a third party served by an outside attorney’s office.
Our Internal Reporting Code protects whistle-blowers from any unfavorable treatment by either
the company or other employees on account of their complaints, and obligates the acceptanceof anonymous reporting. In fiscal year ended December 2018, the hotline was used 22 times.
The complaints concerned workplace environment and interpersonal relationships, and requests
to improve workflows at production bases. All complaints received are relayed from the hotline
to the Corporate Ethics and Compliance Subcommittee secretariat, which as a rule coordinateswith relevant divisions to carry out an investigation and fact-checking while protecting thewhistle-blower. The contents are reported and discussed as needed at the Corporate Ethics andCompliance Subcommittee, and then measures are taken according to the investigation anddeliberation results.
We are working to create an environment where employees feel comfortable about discussing
even minor matters to make corporate ethics and compliance a familiar presence for all
employees. And to enhance employee awareness of the hotline through the Corporate Ethics
and Code of Conduct Manual, the Nissha intranet, and in-house training toward further
reinforcing corporate ethics and compliance.

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Sustainability Report 2019

Hotline Organizational Chart

Preventing Harassment
With the aim of preventing and resolving problems in the workplace, including sexual and power
harassment, on April 1, 2015, we began establishing help desks both in our offices andexternally specializing in harassment.
We give every employee, including dispatch employees, a wallet-sized card that shows them
who can discuss their problems. Consultations at the help desks involve interviews with thecounselee, the actor, and related parties, investigating any factual relationships, making a
judgment, and solving the problem. In the fiscal year ended December 2018 the help desks
were used nine times (internal help desk: seven times/external help desk: two times), and allissues were dealt with. In addition, we hold training sessions for harassment help desk staff
every year. These are led by external instructors, and targeted at staff in charge of in-house
help desks. The training is designed to give staff the basic readiness to be a consultant, informthem of what to be aware of, and so on.
In April 2018, we carried out e-learning for our managerial staff using a video seminar focusedon giving leadership that does not become power harassment, and in July we held a compulsory
e-learning seminar on preventing harassment for all employees. This training is designed todeepen our employees’ understanding of preventing harassment and create a workplaceenvironment with a positive, open, relaxed atmosphere that does not permit harassment. We
intend to plan and carry out timely training as needed in the future.

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Sustainability Report 2019

Fair Evaluation and Treatment
We at the Nissha Group view evaluation systems as a mechanism for ensuring consistency
between the company’s strategy and individuals’ goals, and for determining treatment
accordingly. To this end, we conduct a personnel evaluation of all full-time Nissha Group
employees twice a year. The evaluations cover the level of achievement of employees’ goals,
accountability and responsibility, and the results of which are reflected in bonuses, pay raises,and promotions. By organizing interviews at the time the goals are set and the results areevaluated, we strive for evaluation and treatment that are fair and convincing.
We revised our managerial personnel system in October 2014, our general personnel system in
April 2015, and, in January 2018, the managerial personnel system at our subsidiary, Nissha
Printing Communications, Inc. (NCI). Through these activities, we aim to realize a highly
convincing evaluation system in which employees are rewarded for producing results.

Wage Management
The Nissha Group appropriately determines wages paid in exchange for labor in accordance with the wage
regulations of each company, based on the laws of the relevant country. Our regulations do not allow fordifferent wage levels by age or gender.
Once a year, Human Resources leads internal audits of Nissha Group companies in Japan in the areas oflabor and human rights to check that prefectural requirements concerning minimum wages and work times arecorrectly reflected.

Freedom of Association and Collective Bargaining
Our Basic Policy on Labor and Human Rights contains the provision, “4. Freedom of associationand the right to collective bargaining: We will guarantee the right to organize and the right tocollective bargaining.”
We have engaged in dialogue with the labor union toward expanding women’s participation inbusiness and otherwise creating workplace environments where employees can live up to theirfull potential. As a result, we formulated a set of Private Day Care Expense Coverage
Regulations and introduced a program for preventing delays in the reinstatement of women
employees after childbirth because they could not enroll their child in a non-authorized nursery(in Japan, these are significantly costlier than those certified by local authorities, which haveyears-long waiting lists).
With the change in fiscal year end date from March to December at Nissha Group companies inJapan, in the fiscal year ended December 2018, we held discussions toward reviewing
employment regulations. As a result, we introduced a program that allows two company-ownedhouses for employees transferring to a location away from their family when a gap emerges
between the timing of the transfer and the start of a new school year (April in Japan). We also
introduced a career resumption program for re-hiring employees who have once had to retiredue to reasons such as childbirth, child-rearing, and family care, and started operating this in
January 2018.
In the fiscal year ending December 2019, we intend to carry out discussions with the labor
union, with a view to incorporating time acquisition for annual paid leave systems and expansionof working from home, in order to respond to work style reforms, aiming for more flexible work
styles and relaxed lifestyle.

Relationship with Labor Union
The Nissha Group has three labor unions: the Nissha Labor Union (organized in March 1946)*1, the Nitec
Industries Labor Union (March 2012)*2, and the Nissha Printing Communications Labor Union (October2015)*3. In January 2016, these three unions formed the Nissha Group Labor Union. While one union percompany is our basic approach to promoting well-disciplined organization and building sound relationships
between labor and management, we recognize that regular exchange of information and coordinated action

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Sustainability Report 2019

between labor unions is necessary to resolve common challenges within the Nissha Group. Based on thisunderstanding, we at the Nissha Group have solid relationships and hold regular negotiations and discussions
with our labor unions.
Nissha Co., Ltd. holds regular Management Council meetings with the Nissha Labor Union, joined by
employees excluding managerial staff, to negotiate and discuss employees’ labor conditions and share
information about the Nissha Group’s business operations. Although no minimum period is set for notifying theunion of significant changes in labor conditions, the company exchanges dialogue with the union on a daily
basis with the aim of reaching an agreement satisfactory to both. Furthermore, we organize monthly Work
System Committee meetings primarily to share information about work times and prevent large amounts ofovertime work.
The labor contract confirms, “the Company and the Union shall respect one another’s position and maintain apeaceful relationship between labor and management as well as strive for the maintenance and improvementof labor conditions and the growth of the Company,” and stipulates, “the Company shall respect the Union’s
right to organize, right to collective bargaining, and right to act as a group,” thereby guaranteeing basic laborrights for union members.
Affiliated companies Nitec Industries, Inc. (NII) and Nissha Printing Communications, Inc. (NCI) also holdnegotiations and discussions about employees’ labor conditions with their respective labor unions. The
Workplace Improvement Committee, established by both labor and management at Nitec Precision andTechnologies, Inc. (NPT), works to promote improvements in the workplace environment and in welfare
benefits.
In fiscal year ended December 2017, the Nissha Group had no report either of a strike or lockout or of asituation that infringed on our employees’ freedom of association. We will continue to respect the mutual
positions of both company and union, and build a sound relationship between labor and management.
*1. As of the end of December 2018, the Nissha Labor Union has a membership of 765.
*2. As of the end of December 2018, the Nitec Industries Labor Union has a membership of 436.
*3. As of the end of December 2018, the Nissha Printing Communications Labor Union has a membership of 185.

Voice of the Labor Unions
At the Nissha Group Labor Union, one union per company
is our basic approach to promoting well-disciplinedorganization and building sound relationships between
labor and management. Each union offers suggestions,
negotiates between labor and management, and performs
checks true to the characteristics of the company. Weemphasize autonomy, such as providing guidance forManagement Council meetings between the union andTakashi Yoshioka

management at each company. In addition, the Nissha

Executive Labor Leader

Group Labor Union holds discussions between labor andNissha Group Labor Union

management and determines the introduction of new
regulations, or revisions to existing regulations, for issues that are common to all, suchas the various systems, regulations, and so on. Nissha Group employees are becoming
increasingly diverse as our business globalizes. To ensure we can become a company
where all these employees can pool their strengths, wield their individual strengths, andgrow together, the Nissha Group Labor Union promotes the utilization of future-oriented
human resources who are richly imaginative and not bound by past habits and forms.

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Sustainability Report 2019

Labor Practices
Our employees are our most important management resource.

We support diverse work styles, create workplace environments
where diverse employees can live up to their full potential,
and promote human resources development.

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Sustainability Report 2019

Human Resources Development
We at Nissha Group believe our employees are our most important management resources. We work todevelop human resources based on our Human Resources Development Policy.

Human Resources Development Policy
We implement a planned development of human resources needed for the company to grow andactively support our employees in the voluntary development of their skills with the aim of achieving
growth for both the company and our employees.

Approach to Human Resources Development
We at Nissha Group approach human resources development from the three areas of planned humanresource development, skill development, and career development. For each area, we aim to promotecomprehensive education incorporating the perspectives of training system, on-the-job training (OJT),
medium- to long-term career path development, and human resource systems to support these programs.

Human Resources Development Model

Planned human resource development
Implement planned development to foster and secure the human resources needed to achieve themanagement vision. (e.g., growth strategy, business continuity, creation of corporate culture)
Skill development
Individual employees voluntarily develop their skills and increase their market value.
→The company supports this and thereby enhances the quality of its human resources.
Career development
Support medium- to long-term career development and promote growth toward employees’ ideals.
(Provide opportunities to recognize the importance of and pursue career development.)

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Sustainability Report 2019

Training System (Major Programs by Area)
Area

Training
Nissha Academy (selective training for next-generation management

Planned humanresource development

candidates), rank-specific training, manager training, overseas appointee
training, etc.
Theme-specific training (leadership, logical thinking, presentation, etc.), foreign

Skill development

language training, accounting education, in-house TOEIC testing,correspondence course, etc.

Career development

Education for young employees (first, second, and third years of joining Nissha
Group), career development training, etc.

Selective Human Resource Development
In 2013, we established Nissha Academy, an in-house institute for fostering human resources
with more advanced, specialized knowledge. While we continue to expand on our rank-specificand theme or function-specific training, global human resource education, and careerdevelopment, Nissha Academy employs a selective system to provide training.
As part of Nissha Academy, we operate a Business School which provides knowledge and skillsin the proposal and execution of management strategies including accounting, finance,
marketing, and human resources to foster leaders capable of company and business oversight.
Graduates are actively provided with opportunities to practice what they have learned throughinvolvement in projects, the drafting of medium-term business plans, and so on, which helps
with their medium-term career development as well.
As a gateway to Nissha Academy, in fiscal year ended March 2016, we launched business
literacy training, a short-term intensive selective program covering the basics of themes such as
management, accounting, and marketing. This program also goes beyond inputting knowledge
to featuring practical contents, where participants apply what they have learned to analyze thecurrent situation of their company and discuss its challenges through group work and thecreation of individual reports.

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Sustainability Report 2019

Programs to Support Employees’ Will to Learn and Grow
The Nissha Group offers many open-call training courses which employees may sign up for in line with theirchoice of personal development theme. Examples are courses designed to foster universal business skills
such as logical thinking, problem-solving, communication skills, and so on. In the fiscal year ended December
2017, we organized an open-call management workshop for experienced managers designed to allow them todraw out the determination and capabilities of the people in their departments, and in the fiscal year ended
December 2018, we started a new open-call training course for management. These are some of the ways weare enhancing our training for managers to respond to their will to learn and grow. In addition, ourcorrespondence courses and self-learning programs via Skype support voluntary learning by covering half theprice of subsequent courses for graduates.
We brought in an e-learning system in-house in the fiscal year ended December 2018, which, along withenhancing common training for all employees, provides a wide range of learning opportunities. This training
covers five key themes and content which all Nissha Group employees should know. These include Corporate
Ethics and Compliance, Harassment Prevention, and Information Security. We also convert e-learning into
video-based teaching materials for employees who mainly work in factories and cannot use their own
computers. In this way, we are working to uniformly raise and standardize the knowledge of all employees of
the Nissha Group in Japan.

Training Records
The total number of hours dedicated to major training programs in the Nissha Group in Japan and training
hours per employee (by gender) are given in the table below.

Fiscal year
ended March2017

Annual training hours

Training hours per employee

Fiscal year ended

Fiscal year ended

December 2017

December 2018

Male

17,605

14,204

Female

7,609

5,561

Total

25,214

19,765

Male

9.3

7.4

Female

17.9

13.1

Total

10.8

8.4

15,117(19,573)
6,330(7,277)
21,446(26,850)
7.9(10.2)
14.6(16.8)
9.1(11.4)* Training hours per employee are calculated based on the number of full-time employees of the Nissha Group in Japan.
* Figures in parenthesis are the results including e-learning.
* With the change in fiscal year end date from March 31 to December 31, the fiscal year ended December 2017 covers anine-month period (from April to December).

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Sustainability Report 2019

Respect for Diversity
The Nissha Group has a set of Shared Values that serve as a code of behavior for Nissha People seeking torealize our mission. One of those values, Diversity and Inclusion, declares, “We welcome diverse capabilities
interacting as equals and enhancing our organizational performance.” To grow as a global company, we
respect diverse work styles by diverse human resources, and aim to create workplaces in which all employees
can perform to their full potential.

Composition of "Nissha People"

The diversity of the Nissha Group shows in our employee composition in terms of gender, age,and employment status. With the expansion of our activities across the globe, about 60% of
regular employees work at Nissha Group companies outside Japan. We hire a diverse range of
people on a global basis. Locally hired employees are appointed to upper management positions
such as CEO at eight local subsidiaries of the Nissha Group’s overseas bases, where they are
deeply involved in management.

Composition by region (Nissha Group, as of the end of December 2018)* Figures exclude temporary employees.

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Sustainability Report 2019

Composition by employment status (Nissha Group, as of the end of December 2018)* Figures exclude directors by a delegation agreement.

Composition of Nissha People (Nissha Co., Ltd.)
Directors ofCorporate

the Board

officers

Managerial

GenderFY ended Mar.

Male

6

13

1

204

760

41.4

15.2

Female

1

0

0

7

195

34.7

9.3

Male

6

15

1

153

610

41.1

13.7

Female

1

0

0

7

180

35.0

9.8

Male

7

18

1

154

619

41.5

13.9

Female

1

0

0

7

183

35.4

10.2

Male

7

15

1

165

603

41.8

14.1

Female

1

0

0

9

188

35.9

10.7

Male

8

12

1

161

616

42.1

14.5

Female

1

0

0

11

203

36.5

10.7

2015

FY ended Mar.
2016

FY ended Mar.
2017

FY ended
Dec. 2017

FY ended
Dec. 2018

Nissha fellows

Employees

staff

Average age

Average years

Fiscal Yearof employment

Note 1: Directors include independent directors.
Note 2: Employees exclude temporary employees.
Note 3: All figures are as of the end of the fiscal year. z

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Sustainability Report 2019

Composition by age (Nissha Co., Ltd., as of the end of December 2018)

Number of employees (Nissha Group)* Figures exclude temporary employees.

Of all permanent employees who left Nissha Group companies in Japan in the fiscal year ended December
2018, 3.1% left for personal reasons.

Percentage of People with Disabilities Employed at Major Group Companies in Japan
Private enterprises in Japan with 45.5 or more employees, as a rule, are required to employ a given
percentage of people with disabilities. Nissha Group companies that fall under this category each work to meetthe statutory rate. At Nissha Co., Ltd. and affiliated companies subject to the rule, Human Resources
organizes regular interviews with employees with disabilities and strives to maintain an environment where
they can perform to their potential. The company also has a system for appointing permanent employees
taking into consideration their disability, and assigning job coaches to support the development of potential,
toward long-term employment in tune with the capabilities and circumstances of individual employees.
People with disabilities accounted for 2.18% of the Nissha workforce as of December 31, 2018, for a slightdecrease compared to the previous fiscal year. Those employed at Nitec Industries, Inc. (NII) increasedslightly, to 2.63%.
Each applicable group company plans to continue making efforts to meet and maintain the target statutory
rate.

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Sustainability Report 2019

* With the change in fiscal year and date, the fiscal year ended December 2017 covers a nine-month period (from April to
December).
* The statutory employment rate for people with disabilities in private company is 2.2% since April, 2018.

Women Employees’ Participation in Business

Activities toward Expanding Women’s Participation in Business
True to the Diversity and Inclusion cited in our Shared Values, Nissha Group aims to be a corporategroup where employees can live up to their potential regardless of nationality, gender, or age.
Amid growing demand in Japanese society, we recognize women’s participation in business as aparticularly important priority, and to this end launched a project team led by Human Resources in July
2014. Nissha Co., Ltd., Nitec Industries, Inc. (NII), and Nitec Precision and Technologies, Inc. (NPT)—
three companies are subject to the Act on Promotion of Women’s Participation and Advancement in
the Workplace (Women’s Participation Act), which came into effect in April 2016. But our activities
extend beyond these three companies across the Nissha Group as a whole.

Practical Training for Women Employees
In order to promote women’s participation in business, we believe it is crucial both for the
management to recognize the necessity of promoting women’s participation in business and taking
advantage of diversity, and to raise the awareness of women employees themselves. To this end, we
kicked off training for the management in the fiscal year ended March 2016, and career developmenttraining for women employees in general positions at a majority of our bases in Japan from the fiscal
years ended March 2017 to December 2018. In the past fiscal year, we also organized training for
women manager candidates.
The training for women employees in general positions seeks to instill awareness of a career plan. It
encourages participants first to understand the significance of working at Nissha and necessity ofcontinuing to take on challenges and building a career over the long term, and then to reflect on theircareer to date, identify their strengths, and create an action plan for the future.

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Sustainability Report 2019In a follow-up program, interviews were arranged between the participants and their respective
superiors to discuss what challenges the women wanted to take on for enhancing their sense of job
fulfillment. This dialogue helps to deepen understanding of women employees in managers, and at
the same time offers both the managers and the women employees the opportunity to practice what
they learned in training. Not merely approaching individuals but promoting communication between
them thereafter—we believe this makes the training more effective.
The career development training for women manager candidates followed the same contents as forgeneral employees, with the addition of studies on what it takes to draw on one’s strengths whileserving as leader, and an exchange of views between the participants.

Enhancement of Systems and Communication Tools
In November 2016, we established a system for sharing with employees the expense of using nonregistered childcare facilities. Employees in Japan who wish to be reinstated at work after taking childrearing leave often have difficulty enrolling their child in day care service registered with themunicipality, as mass enrollment closes in April, and the next opportunity seldom arrives before Aprilof the following year. The system covers part of the expense of temporarily enrolling a child in a nonregistered childcare facility until an opening becomes available at a registered facility, with the aim ofsupporting employees’ quick reinstatement at work at the timing of their choice. An employee using
the system has been reinstated at work since January 2016.
In January 2018, we introduced a career resumption program for re-hiring employees who have once
had to retire due to reasons such as marriage, childbirth, child-rearing, spouse’s job transfer, andfamily care. This is designed to support the rebuilding of a career path for employees who wish to
return to Nissha and use the experience and expertise they gained before retirement. After the
introduction of this system, three people have registered at retirement.

Major Initiatives to Date

Launch project team
FY ended March 2015

Interview women employees
Distribute Work-Life Balance Support Guidebook

FY ended March 2016

Open NISSHINE portal site
Administer employee questionnaire
Organize forum on women’s participation in business

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Sustainability Report 2019

Conduct training for management (department directors andabove)

Establish system for sharing the expense of using nonregistered childcare facilities
FY ended March 2017

Conduct training for management (all managers includinggroup leaders)
Conduct career development training for women employees

FY ended December 2017

Conduct career development training for women employees
Conduct training for women manager candidates

Conduct training for women manager candidates
FY ended December 2018

Conduct training for management (all managers includinggroup leaders)Start operation of career resumption program for re-hiring
employees who have once retired due to specified reasons

Declaration on Action by a Group of Male Leaders who will Create aSociety in which Women ShineIn May 2017, Nissha Co., Ltd. President and CEO Junya Suzuki joined the “Declaration on Action by aGroup of Male Leaders who will Create a Society in which Women Shine,” supported by the Cabinet
Office.
While a nationwide movement headed by industry leaders to support women who will and do shine invarious fields, male leaders who had already been promoting the empowerment of women compiled
the “Declaration on Action by a Group of Male Leaders who will Create a Society in which Women
Shine.” The Presidnet and CEO Junya Suzuki agreed to this action and expressed participation.

Action Plan for the Japanese Act on Promotion of Women’s Participation
and Advancement in the Workplace
The Japanese Act on Promotion of Women’s Participation and Advancement in the Workplacerequires companies with 301 or more employees to draft an action plan for promoting women’s
participation in business. In the Nissha Group, three companies fall under this category: Nissha Co.,
Ltd., Nitec Industries, Inc., and Nitec Precision and Technologies, Inc. One more company, Nissha
Printing Communications, Inc., has voluntarily formulated an action plan in line with our aim to create
an environment in which all employees can live up to their full potential across the entire Nissha
Group.

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Sustainability Report 2019

Support for Diverse Work Styles
True to the Diversity and Inclusion cited in our Shared Values, we in the Nissha Group embrace and take fulladvantage of diverse values and capabilities. In addition, we are implementing work style reforms with the aimof improving productivity, along with enhancing systems and promoting the creation of a workplace that
supports diverse and flexible work styles. These are some of the ways we provide support to help our
employees achieve a work-life balance.

Flexible Work Hours
We have in place flexible work hours as a mechanism in which employees can voluntarily determine their own
start and finish times of the working day. The aims of the system include responding flexibly to the timedifference between Japan and overseas, to deadlines, and to the busy and slow hours of the working day, andenabling employees to maintain harmony between work and life. Initially introduced in sales departments, thesystem was expanded gradually to other divisions and today benefits employees also in development andadministration.

Work at Home System
In fiscal year ended March 2015, we introduced a work-at-home system with the aims of promoting harmony
between employees’ work and life, and improving their work efficiency. The system enables employees livingwith a child before completion of elementary school and employees providing family care to work at homeeither on two full days a week or for a number of hours a day. In the fiscal year ended December 2018, fifteen
employees used the system (twelve for child-rearing, one for family care, and two for other reasons).

Support for Reinstatement after Long-term Leave
For employees reinstated at work after long-term leave due to illness or injury, we set forth the consideration to
be taken by workplaces according to the condition of the employee’s health in an aim to prevent recurrence of
the illness or injury and achieve a smooth return to work. We arrange periodic consultations with an industrial
physician to confirm the considerations necessary in the workplace, and have a system in which reinstatedemployees may shorten their work time by up to two hours per day for a period of six months.

Child-rearing and Family Care Support
We are working to expand our support systems and enable employees to have flexible work styles in thevarious stages of life. By drafting an action plan and executing a range of measures based on the Act on
Advancement of Measures to Support Raising Next-generation Children, many of our efforts in child-rearing
support exceed statutory guidelines.

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Sustainability Report 2019

Major child-rearing support systems
Support system

Nissha Group in Japan

Statutory coverage

During pregnancy (up to
Shorter hours during pregnancy－

maternity leave before childbirth)
Up to 3 hours per day

As a rule, up to 1 year old (1 year
Child-rearing leave

Up to 2 years old

6 months old when certain
conditions are met)

5 days at the time of spouse’sDays off for spouse’s childbirth－childbirth(Special paid leave)

Shorter hours for child-rearing*

Up to completion of elementary

Up to 3 years old

schoolBy effort: Start of elementary

Up to 3 hours per day

school1 child: 5 days
2 or more children: 10 days
Days off for child nursing

Paid

1 child: 5 days

Up to start of elementary school:

2 or more children: 10 days

paid

Either paid or unpaid

From the first to sixth grade:
unpaidAmount: 150,000 yen (for eachoccasion below)
PeriodChild-rearing support fund－

• Birth• Start of elementary school• Start of junior high school• Start of senior high school• Start of technical college

Major family care support systems
Support system
Family care leave
Shorter hours for family care*Days off for family care

Nissha Group in Japan
Total 240 working daysThree years from starting date
3 hours per day

Statutory coverage
Total 93 daysThree years from starting date1 family member: 5 days

1 family member: 5 days

2 or more family members: 10

2 or more family members: 10

days

days

Paid

Either paid or unpaid

We also have in place a system in which employees may save up to 30 days of expired leave to be used in theevent of illness, either of the employee or of a family member, and for child-rearing, family care, school events,
and days on which a child’s kindergarten or school is closed.

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Distribution of Work-Life Balance Support Guidebook
To support our employees in achieving work-life balance, we created a Work-Life Balance Support Guidebook
containing information on both in-house and outside systems for child-rearing and family care. The first edition
was distributed to all employees in October 2014, and a revised edition in May 2017. The contents are
published on the Nissha Group intranet since April 2015, and useful information on welfare services wereadded in April 2016.

Kurumin Certification
Nissha has received “Kurumin” certification for three consecutive terms
since the fiscal year ended March 2010, for a total of 11 years, and in
March 2019 we were certified with Platinum Kurumin.
Based on the Act on Advancement of Measures to Support Raising
Next-generation Children, “Platinum Kurumin” is a system to certify
companies that have already obtained Kurumin certification inrecognition of their measures to support employees with children andare carrying out initiatives at an even higher level. This certification wasin recognition of our introduction of systems to support a balance
between work and child-rearing for both men and women, our initiatives
to reduce overtime work, our ongoing seminars on topics related to the

Kurumin Logopromotion of women in the workplace, and so on. Within the Nissha
Group, Nissha Business Service Co., Ltd. (NBS) received Kurumin certification in 2015, followed by Nitec
Precision and Technologies, Inc. (NPT) in 2016.
We shall continue aiming to create a workplace where each employee can work energetically, enjoying a richlife where work and child-rearing are balanced.

Status of Major Long-term Leave and Time Taken Off from Work (Nissha Group in Japan)
Promotion of the Use of Annual Paid Leave
To promote the use of annual paid leave, we encourage employees to take four days a year, two days each in
the first and second halves, under the Annual Paid Leave Plan. Also, we offer a further two days in which
employees may request to take paid leave on their birthday, that of a family member, or their wedding
anniversary. As a result of ongoing efforts, the average paid leave taken exceeds 10 days per year.
Moving forward, we are considering introducing paid leave by the hour as a mechanism for facilitating more
flexible use of paid leave and supporting employees’ efforts to balance child-rearing and family care with work.

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Sustainability Report 2019

Average days and percentage of annual paid leave used (Nissha Group in
Japan)The number of employees who used child-rearing leave, worked shorter hours for child-rearing, and took days
off for child nursing are given in the graphs below.

Number of employees who used child-rearing leave

Number of employees who worked shorter hours for child-rearing

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Sustainability Report 2019

Number of employees who took days off for child nursing

Reinstatement rate after child-rearing leave: Male 100%, Female 100%
Reinstatement rate = Number of employees reinstated after child-rearing leave in the current
fiscal year ÷ Number of employees expected to be reinstated after child-rearing leave in thecurrent fiscal year x 100
Retention rate after child-rearing leave (1 year): Male 83.3%, Female 96.4%
Retention rate = Number of employees remaining at the end of December in the current fiscal
year after being reinstated after child-rearing leave in the previous fiscal year ÷ Number of
employees reinstated after child-rearing leave in the previous fiscal year

Number of employees who used family care leave
The number of employees who used family care leave, worked shorter hours for family care, and took days off
for family care are given in the table below. We are making efforts to raise employee awareness of our efforts
to support diverse work styles in an aging society by distributing the Work-Life Balance Support Guidebook
containing information on both in-house and outside systems for family care, and publishing the contents on
the Nissha Group intranet.

SupportFY ended

FY ended

December

December

2017

2018

FY ended

FY ended

FY ended

March 2015

March 2016

March 2017

Male

0

0

0

0

1

Female

0

0

0

1

0

Male

0

1

1

0

0

family care

Female

0

0

0

1

1

Days off for

Male

1

4

7

9

8

Female

2

4

5

7

8

systemFamily careleave
Shorter

Genderhours forfamily care

Outpatient Sick Leave System
In fiscal year ended March 2016, we introduced an outpatient sick leave system with the aim ofsupporting employees who require long-term outpatient treatment to continue working. The
system enables employees with specified disorders to take 10 days off per year for treatment.
Two employees used the system in fiscal year ended December 2018.

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Sustainability Report 2019

Reduction of Overtime Work
Nissha Group companies in Japan promote the reduction of overtime work on an ongoing basis.
Twice a month, we notify all divisions of overtime hours recorded.* Managers use thisinformation to provide a reminder about overtime work to employees in their division. Divisions
that recorded a large amount of overtime work are questioned as to the causes and the physicalcondition of employees in an effort to improve awareness about work time management. In thefiscal year ended December 2018, we started sending alert e-mails from our human resources
system to employees who are working too long each day or taking too much overtime, and their
managers.
Moving forward, we will work to further reduce overtime work and at the same time aim to
produce greater results without relying on long work hours, in line with our basic group-wide
strategy of improving productivity.
* The Japanese government’s guidelines for promoting work-life balance set a nationwide targetof reducing the percentage of employees who work more than 60 hours per week to 5.0% by
2020. With this in mind, all Nissha Group companies in Japan are working to manage work
hours on a weekly basis.

Internal Job Posting System
The Nissha Group introduced an internal job posting system in fiscal year ended March 2012 with the aim ofproviding employees with the opportunity to choose their own career path as well as appoint employees topositions that reflect their aptitude and thereby enhance our organizational strength. The company posts
specific job openings internally, employees who meet the criteria apply for the job of their own will, and those
who pass the screening are transferred to the relevant post. Employees who have transferred through thesystem are playing an active role in their new division.

Status of utilization

Fiscal YearFY ended

FY ended

FY ended

March 2015

March 2016

March 2017

Number of27

job posting
Successful

8

FY ended

FY ended

December

December

2017

2018

0

0

15

Male

FemaleMale

FemaleMale

FemaleMale

FemaleMale

Female

3

3

1

0

-

-

-

-

2

1

applicants(transferees)* Job openings posted twice a year up to FY ended March 2015, and once a year since FY ended March 2016

Awarding system
The Nissha Group has in place various awarding systems that aim to reward praiseworthy
endeavors and create a setting in which the employees responsible for the endeavors influenceand motivate the company and organizations as a whole.
In the fiscal year ended December 2018, 33 employees received the Passion Award, given to
those groups or individuals who boldly tackle challenges with passion to ensure the success of a
project, and 220 employees received the Nissha People Award celebrating workplace stars who
epitomize our Shared Values. The awards are presented globally across the Nissha Group, withrecipients including employees at overseas bases.

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Sustainability Report 2019

Safety and HealthOccupational Safety and Health Policy / Safety and Health Objectives
The Nissha Group has in place a Occupational Safety and Health Policy declaring that we
position the safety and health of all involved in our business activities as a top management
priority, and promote thorough awareness of this policy. The safety and health objective of the
Nissha Group established based on this policy sets the three-year period of the Sixth Mediumterm Business Plan until the fiscal year ending December 2020 as its period target, aiming forzero work-related accidents during this period. In the fiscal year ending December 2019, we will
also roll out a range of activities for preventing work-related accidents to achieve this objective.

Occupational Safety and Health Policy
Nissha Group recognizes that ensuring the safety and health of all people engaged in our businessactivities is a top management priority for the continuity and development of our operations, and to
this end, commits to the following practices.
1. We promote the participation of all in creating comfortable workplace environments anddeveloping sound physical and mental health.
2. We pursue Co-existence with society in compliance with relevant laws and regulations, and withthe requirements agreed upon by Nissha of local communities, public institutions, and ourcustomers.
3. We strive for continuous improvement in occupational safety and health standards through theoperation of management system.
This policy will be distributed widely to all people in the Nissha Group as well as released to thegeneral public.
November 6, 2014
Junya Suzuki
Chairman of the Board
President and CEO
Nissha Co., Ltd.

Safety and Health Management System / Safety and Health Subcommittee
The CSR Committee’s Safety and Health Subcommittee is responsible for the safety and health activities of
the Nissha Group. It compiles quarterly reports to the CSR committee on the progress of our safety and healthobjectives, the measures taken by each base on work-related accidents, safety and health performance suchas occurrence of work-related accidents, and internal audits and corrective measures based on the audits. The
subcommittee conducts year-end reviews on whether our management system is functioning effectively, andoversees the Safety and Health Committees operated by each base, toward improving the level of safety andhealth activities throughout the Nissha Group.
The Safety and Health Committees of each base consist of base representatives including a safety manager
and health manager, and employee representatives selected from the labor union and each workplace. The
members meet to report on work-related accidents and corrective measures, and to exchange views andpropose measures for improvement toward realizing a safe and comfortable workplace. Any work-related
accidents that occur at each base, together with corrective measures on them, are promptly reported to the
Safety and Health Subcommittee for sharing with other bases. The corrective measures are reported from theofficer overseeing the base and the head of the subcommittee to the president for appropriate review.

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Safety and Health Management Structure

Occurrence of Work-related Accidents
Half the accidents in the fiscal year ended December 2018 involved falls, being caught ortrapped in machines, and cuts. Thanks to a decrease in accidents resulting in days of leave,
however, we saw improvement in the severity of work-related accidents. After the accident, we
are working on corrective measures such as equipment repair and procedure revision.

Occurrence of Work-related Accidents (Nissha Group in Japan)

Item

Frequency of workrelated accidents*1
Severity of workrelated accidents*2

FY ended

FY ended

December

December

2017

2018

FY ended

FY ended

FY ended

March 2015

March 2016

March 2017

0.92

1.16

1.99

1.45

0.84

0.04

0.02

0.02

0.01

0.01

0

0

0

0

0

Fatal accidents*1. Frequency of work-related accidents: Refers to the number of injuries and casualties resulting from work-related
accidents (four or more days of leave) per one million working hours*2. Severity of work-related accidents: Refers to the severity of work-related accidents in terms of the number of working
days lost per one thousand working hours
Definitions from work-related accident statistics, Ministry of Health, Labour and Welfare
Figures include accidents involving temporary employees

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Number of Work-related Accidents (Nissha Group in Japan and major overseas
production bases, by gender)
The number of work-related accidents at the Nissha Group in Japan and major overseas production bases in
the fiscal year ended December 2018 are given in the table below. Overseas figures represent accidents that
resulted in days of leave.

Male

Female

Total

Japan

20

5

25

North America

5

6

11

Central and South America

5

2

7

Europe

9

1

10

Asia

1

2

3

Reduction of Workplace Risks – Risk Assessment
We continue in our efforts to conduct point-based evaluations of the dangers and harms that production
equipment and chemical substances used in the workplace may have on workers, and to take measures
starting with the highest risks. Based on the results of risk assessment, we work to identify the remaining risks
and reflect them in our management efforts. In selecting materials used in our products, we have also
incorporated a mechanism for evaluating the health hazards of chemical substances into the design review
process toward assessing the risks to workers during mass production.

Safety Patrols
Members of the Safety and Health Committees of each base take the lead in conducting safety patrols of
workplaces. In addition to regular monthly patrols, the heads of each base carry out special safety patrols
during Japan’s national safety week in July toward enhancing workplace awareness about safety.

Safety and Health Education and Training
We provide education and training required inworkplaces based on our Safety and Health Educationand Management Regulations. Contents center on
regular programs comprising training forenvironmental safety promoters, training foremen at
our production bases in Japan, training in assessing
risks, and lessons in life-saving and using an
automated external defibrillator (AED) in preparationfor emergencies. In particular, we were able toimprove our results by enhancing safety education forsmaller offices, which a lot of injuries occurred lastTraining for environmental safety promotersfiscal year, and by holding seminars on preventing
falls, which can lead to serious injuries.

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Category of Training and Attendance (Nissha Group in Japan)

Category

Lesson/Session

General training

New employee training (safety and health)Attendance FY ended
December 201833

Risk assessment training (safety and health,55

chemical substances)

Safety training

Foreman education by RST trainer

17

Safety training (small office)87

Health training (occupational health and healthy

102

obstacle by e-learning)
Fall disaster prevention seminar (outside lecturer)

38

General life saving lesson

24

AED lesson

11

Formulated Health Declaration
On September 3, 2018, we formulated a Health Declaration aimed at maintaining or improving
the health of all Nissha Group employees. The Nissha Group sees its mission as to realize theenrichment of people’s lives by creating technology and developing it into economic and social
value through the diverse capabilities, passion, and leadership of the global Nissha Group. We
believe that the physical and mental health of each and every employee is the most importantelement in achieving this mission, which is why we have formulated our Health Declaration, andare ensuring all employees are aware of it.

Health Declaration
The Nissha Group aims to create new values through the diverse capabilities and passion. We
consider the maintenance and improvement of our employees’ mental and physical health to be a vital
part of that, and so are improving our workplace environments through promoting a range ofmeasures related to health.
September 3, 2018
Junya Suzuki
Chairman of the Board
President and CEO
Nissha Co., Ltd.

Health Promotion Initiatives
We carry out various initiatives on a continuous basis with the aim of preventing lifestyle diseases, andmaintaining and enhancing the health of employees.
In the fiscal year ended December 2018, we organized an original event for measuring bone density, gauging
blood vessel age, and promoting stopping smoking. A total of 1,500 employees attended. In addition to an
explanation of their measurement results, participants received advice on improving dietary, exercise, andlifestyle habits using a specially prepared leaflet. In addition, we hold classes on quitting smoking and offer
programs on quitting smoking for smokers. Also, as one of our initiatives for preventing passive smoking, weclosed all indoor smoking areas in the Nissha Global Headquarters on October 1, 2018. We shall continue towork towards making our grounds entirely smoke-free.

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Sustainability Report 2019In the fiscal year ending December 2019, we plan to hold an experience-based health event to strengthen the
promotion of exercise habits, and will prepare tools that allow people to continue with simple exercises
afterwards as well. In addition, as a high-risk approach, we are further undertaking measures to maintain andimprove health by recommending visits to a medical institution to employees who required either detailed
examination or reexamination as a result of their health checkup, and also provide specific health guidancewith support from a designated medical institution to employees who required it as a result of their healthcheckup.

Mental Health Support“Employee-friendly Workplace” page in Nissha internal newsletter

As part of our mental health support offering, we organize mental health classes, covering selfcare and line care, by a clinical psychologist each year since the fiscal year ended March 2010,
and introduced stress check surveys in the fiscal year ended March 2013 ahead of a mandatory
system coming into effect in December 2015. We distributed a mental health handbook to all
employees so that they can recognize and cope with stress based on their survey results.
We also continue to promote the creation of employee-friendly workplaces. In fiscal year ended
March 2015, we provided line care education about supporting the process of improving
workplace environments. And in fiscal year ended March 2016, we sought pilot workplaces foradministering general checkups with the aim of creating pleasant workplaces from the bottom
up. The checkup teams first identified the good points of each workplace, the points that require
improvement, and the reasons for improvement, and then formulated a plan based on themembers’ input, and set to work topic by topic. Ideas for creating employee-friendly workplaces
are published in our internal newsletter to familiarize employees with the concept. In future, weplan to spread the initiative across Nissha Group companies. In the fiscal year ended December
2018, we provided feedback for and explanation of the results for the stress check workplace
analysis to workplace leaders. Our aim is to use the results of this workplace analysis to create aworkplace that is easy and comfortable to work in.
As for support on a personal level, we have an outside web counseling service through which a
specialized counselor offers mental health advice online. Being accessible even to employees
who have difficulty juggling their work schedule with an appointment, and offering the benefit ofprivacy protection, the service is used several times each year. For employees working longhours, appointments are arranged with our healthcare staff and industrial physician. This helps
us understand the employees’ health condition as well as coordinate with their superior and thehuman resources division in providing any required follow-up.
Also, for employees who require special attention in terms of mental health, we follow our Longterm Leave Regulations and offer time to recover from their condition as well as consideration in
the workplace upon reinstatement, in an aim to prevent recurrence and achieve a smooth return
to work. We will carry on promoting collaboration between each division, the human resources
division, and our healthcare staff in efforts to create comfortable workplaces.

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Sustainability Report 2019

Mental health support structure

Certification as Health and Productivity Management Organization (White 500)

Nissha Co., Ltd. was certified as a Health and Productivity Management Organization in the large
enterprise category (White 500) for the third consecutive year at an announcement ceremonyon February 21, 2019, co-hosted by the Japanese Ministry of Economy, Trade and Industry, andNippon Kenko Kaigi. Certification was granted in recognition of our initiatives for promoting
health-conscious activities. We will continue to encourage the participation of all in creating
safe, comfortable workplace environments and promoting sound physical and mental health.

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The Environment
We strive to reduce environmental risks, prevent pollution,and create opportunities in line with our Environmental Policythat aims for “business development and the realization of a sustainable society.”

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Environmental Policy and Management Structures
The Environmental, Safety and Health Subcommittee of the CSR Committee operates amanagement system that suits the business operations of the Nissha Group as part of its
initiatives towards a sustainable environment that supports our business. The Subcommittee
also builds, operates, and continually improves its own environmental safety and healthmanagement systems for Nissha Group bases in Japan that include an environmental
management system based on ISO14001 and a health and safety management system basedon ISO45001, as well as initiatives based on requests for compliance from customers. Throughthese activities, the Subcommittee works to comply not only with laws but also with global
standards such as the code of conduct provided by the Responsible Business Alliance (RBA).
The environmental policy of the Nissha Group in Japan calls for business development and therealization of a sustainable society. Along with ensuring each Nissha Group employee is aware ofthis policy, each factory and organization sets targets and implements action plans for theachievement of the Nissha Group environmental objectives, which serve as medium-term goals
for the Nissha Group in Japan. The environmental objectives correspond to key performanceindicators (KPI), and are directly linked with daily tasks.
The Subcommittee members are selected from various related divisions and bases, and areheaded by the environmental and safety management representative. The Environmental and
Safety Management Group in Corporate General Affairs functions as the secretariat and runs the
Subcommittee under the overall supervision of management. To further strengthen thefoundation that supports our business, we are building and maintaining a structure forconforming to the RBA and other global standards, with the aim of improving our company’senvironmental, social, and governance (ESG) rating. Through these activities, the Subcommittee
promotes risk management for the environment, and safety and health, of the Nissha Group,and supports our business continuance.
*ESG rating: A method of rating companies based on environmental, social, and governance performance.

Environmental Policy
Nissha and its subsidiaries, as members of the global society, aim for business development and therealization of a sustainable society through environmentally conscious corporate activities.
1. Prevention of Pollution
We comply with legal requirements and agreements with society, and strive to prevent environmental
pollution in all aspects of our corporate activities such as product development, design, materials,
production, sales, and facilities.
2. Product Safety
We fulfill promises with our customers and deliver safe and environmentally conscious products.
3. Prevention of Global Warming
We make a contribution to prevention of the global warming by efficient using of resources andenergy.
4. Continuous Improvement
We strive for continuous improvement by establishing an environmental management system andreviewing it in response to changes in the business environment.
5. Co-existence with Society
We promote open dialogue with our customers, shareholders, suppliers, employees, and society
through our efforts to preserve the global environment.

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Sustainability Report 2019

April 1, 2012
Junya Suzuki
Chairman of the Board
President and CEO
Nissha Co. Ltd.

Operating an Effective Environmental Management System (EMS)The Environmental Management System (EMS) for the Nissha Group in Japan covers all ourbases—not only major production bases but also small production bases and sales bases withlittle impact on the environment. We divide these EMS bases into ISO14001-certified and noncertified bases so that we can set meaningful priorities in tune with the actual circumstances ofeach location, check and correct key management items through internal audits, and operate aneffective EMS.
At ISO14001 certification sites, which are also our major production bases, specific activities are
based both on negative risks to be maintained, managed, and improved through environmental
risk assessment, and on positive risks, which we view as environmental performance to beenhanced in sync with business targets and quality targets. Our environmental management not
only conforms to procedures and legal obligations but also links with our business operations, inline with the revised ISO14001 standard requiring strategic environmental management. We
build and operate more effective internal audit structure combining environmental internal
audits with safety and health internal audits, which are conducted based on ISO14001 as well as
codes of conduct provided by the RBA and our customers. The standards for our internal audits
are based on ISO14001 as well as the codes of conduct provided by the RBA and our customers.
In this way, along with compliance with relevant legislation and with the needs of ourcustomers, the Nissha Group in Japan promotes strategic environmental management with aneye to enhancing our levels of environmental management. In future, in addition to operation ofenvironmental management systems in the Nissha Group in Japan, we will move ahead with
understanding the environment risks at our key production bases overseas, which areresponsible for products for the key markets set out in our Medium-term Business Plan.

Nissha Group Environmental Management Structure70

Sustainability Report 2019

Energy Management and Environmental Communication Structures71

Sustainability Report 2019

Environmental Objectives and Status of Achievement
To promote environmental initiatives, as of the fiscal year ended December 2018 the targetsetting cycle for the Nissha environmental objectives has been revised from three years to six
years for the Nissha Group in Japan. The results of initiatives are collected and assessed eachyear and progress managed with the aim of achieving the environmental targets of the Nissha
Group in Japan through achieving the environmental targets of each relevant business base anddivision.

New Environmental Objectives from Fiscal Year Ended December 2018
We have defined a set of environmental objectives for the Nissha Group applicable between thefiscal years ended December 2018 and ending December 2023. Whereas our previous set ofenvironmental objectives covered a three-year period, the new set covers a six-year period withthe aim of carrying out activities over the longer term.

Nissha Group Environmental Objectives[FY2018.12–FY2023.12]
Scope: Nissha Group in Japan ISO14001 certification sites (“certification sites”)

1. Prevention of pollution(1) Maintain zero environmental accidents (accidents that affect areas outside the factory)(2) For environmental risks classified as significant environmental aspects on the hazard
assessment list, implement measures and reduce the possibility of occurrence by one level by
December 31, 2023
* The degree of severity may not change after measures are implemented* For items classified as “maintain,” follow the designated procedure and strive to prevent
environmental accidents* Risk levels in the environmental hazard assessment list are given separately in the Safety and
Health Management Manual
2. Attention to climate change(1) Reduce CO2 emissions rate (basic unit) by 6% or more by the fiscal year ending December
2023(2) Reduce CO2 emissions rate (basic unit) by 1% or more compared to the previous year
Baseline: Results in fiscal year ended December 2017
* Each organization may set KPI or quality targets as environmental targets* Companies classified as “specific business operator” in the Act on the Rational Use of Energy use
the basic unit reported under the act* Use the default value (0.555 kg-CO2/kWh) as emission factor<Sample initiatives>
In the area of fixed energy consumption, upgrade energy-saving facilities and equipment In the areaof variable energy consumption, improve production efficiency, quality, and work processes Make
effective use of space, e.g., through solar power generation, outdoor greening, and energy-saving
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Sustainability Report 2019

3. Reduction of waste(1) Reduce waste generation rate (basic unit) by 6% or more by the fiscal year ending
December 2023
(2) Reduce waste generation rate (basic unit) by 1% or more compared to the previous year
(3) Maintain zero emissions (recycling and resource reuse rate of 99.5% or more)(4) Reduce cost of waste treatment
Baseline: Results in fiscal year ended December 2017
* Each organization may set KPI or quality targets as environmental targets* Indexes need not be the same as the CO2 emissions rate basic unit (production volume may besubstituted with number of items produced)<Sample initiatives>
Promote multi-sourcing and resource reuse
Control the amount of waste generated, e.g., by reducing use of raw materials
4. Reduce use of water
Reduce use of water by improving production efficiency and saving water (Certification sites
set individual targets)
5. Reduce use of chemical substances
Certification sites reduce usage rate of chemical substances (Certification sites set individual
targets)
6. Environment-conscious design(1) Introduce the viewpoint of energy saving, resource saving, durability, recycling, and so onin product design and development(2) Design environment-conscious processes and reduce the environmental impact of
production<Sample initiatives>
Assess positive risks
Design and develop products that do not contain substances prohibited in the Nissha Control Criteria
for Chemical Substances in Purchased Products
7. Enhance environmental performance in supply chain / value chain
Enhance environmental performance based on customer requirements and the RBA code of
conduct (applicable sites only)
Note 1: Nissha Group environmental objectives, as a rule, cover a six-year period
Note 2: Nissha Group environmental objectives are to be reviewed in line with changes in internal(e.g., medium-term business plan) and external circumstances
Note 3: Each site selects applicable items from Nissha Group environmental objectives

Status of Achievement in Fiscal Year ended December 2018

1. Prevention of pollution
Target: (1) Maintain zero environmental accidents (accidents that affect areas outside thefactory)(2) For environmental risks classified as significant environmental aspects on the hazard
assessment list, implement measures and reduce the possibility of occurrence by one
level by December 31, 2023
Assessment
Results

Satisfactory
Factories with ISO14001 certification, the primary production bases for the
Nissha Group, are working on reducing environmental risk through the use of73

Sustainability Report 2019environmental risk management. These activities are designed to drop the riskof environmental accidents by one level through the implementation of risk
mitigation measures. Training for emergency situations, such as evacuations
and substance leakage, was carried out in the fiscal year ended December
2018 on top of making continuous efforts in rainwater management. As aresult, the Nissha Group in Japan maintained zero environmental accidents inthe fiscal year ended December 2018.

2. Attention to climate change
Target:(1) Reduce CO2 emissions rate (basic unit) by 6% or more by the fiscal year ending
December 2023
(2) Reduce CO2 emissions rate (basic unit) by 1% or more compared to the previous
year

Baseline:

Results in fiscal year ended December 2017

Assessment

Poor
Starting in the fiscal year ended December 2018, we changed the name of ourinitiative from “Prevention of global warming” to “Adaptation to climatechange.” This will allow target business locations to carry out a wider range ofactivities as measures to mitigate or adapt to climate change.
The major Nissha Group bases in Japan are working on reducing the basic unitof CO2 emissions by at least 1% annually, or 6% over six years. Specifically,
reducing and making more efficient the amount of energy consumed inconjunction with quality management in all target factories, saving energy inResults

production equipment at the Nitec Precision and Technologies, Inc. (NPT)
Himeji Factory, improving boiler control at the Nitec Industries, Inc. (NII) Koka
Factory, and other improvements to equipment that lead to reduced energy
consumption. As a result, targets were achieved for Nissha Global
Headquarters, NII Koka Factory, and Nissha Printing Communications, Inc.
(NPC) Kyoto Factory, but there was a large impact from changes in demand
from the devices business, preventing NPT, which is responsible for the
production of these devices, from achieving its target. This means that thecompany-wide environmental objectives were not met.

3. Reduction of waste
Target:(1) Reduce waste generation rate (basic unit) by 6% or more by the fiscal year ending
December 2023
(2) Reduce waste generation rate (basic unit) by 1% or more compared to theprevious year
(3) Maintain zero emissions (recycling and resource reuse rate of 99.5% or more)(4) Reduce cost of waste treatment

Baseline: Results in fiscal year ended December 2017
Assessment

Poor
We are working on reducing the waste generation rate at major Nissha Groupfactories in Japan, with a goal of at least 1% reduction annually, or 6% over
six years. The waste generation rate can be reduced by boosting the rate ofquality items through improved quality management, or reducing the amountof wasted materials by improving the efficiency of materials investment.

Results

Improvements have been made thanks to quality management company-wide,
but NPT failed to achieve its objectives due to the large influence of changes indemand in the Devices business, which means that the company-wide
environmental objectives were not met.
However, we were able to achieve zero waste emissions (recycling andresource reuse rate of 99.5% or more).

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4. Reduce use of water
Target: Reduce use of water by improving production efficiency and saving water
Assessment

Unsatisfactory
We managed to reduce the amount of industrial water used at the NPT Tsu
Factory and the amount of water used in the gardens of the NPT Himeji

Results

Factory. However, at the NPT Kaga Factory, the impact of production for large
orders in the fiscal year ended December 2017 meant that more water thanever had to be used.

5. Reduce use of chemical substances
Target: Certification sites reduce usage rate of chemical substances
Assessment

Satisfactory
We tackled reducing the ratio of chemical products used in plants with
ISO14001 certification.
The NPT Himeji Factory has reduced PRTR-designated substances throughResultschanging the chemicals used in wastewater processing. In addition, the NPT
Tsu Factory has reduced the amount of cleaning solvents used in its processes,
while the NPT Kaga Factory has reduced the use of organic solvents, both
successfully.

6. Environment-conscious design
Target: (1) Introduce the viewpoint of energy saving, resource saving, durability, recycling, andso on in product design and development(2) Design environment-conscious processes and reduce the environmental impact of
production
Assessment

Satisfactory
The Industrial Materials business unit uses environmentally-friendly design at

Results

the product planning stage through initiatives to assess positive risk in the
Devices business unit.
The development of Nissha FIS’s Handy Gas Chromatograph and theirhydrogen detector that complies with ISO26262 used environmentally-friendly
design, helping with the company’s business activities.
At NPT, designing a production process that complied with company standards
set out for managing chemical substances has created a process that considers
health and safety as well as reduced environmental impacts.

7. Enhance environmental performance in supply chain / value chain
Target:Enhance environmental performance based on customer requirements and the RBA
code of conduct

Assessment

Results

Satisfactory
Focused on the business unit procurement division, we are working on
surveying and improving environmental impacts in the supply chain throughefforts such as distributing CSR questionnaires and local supervision.

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Environmental Impact as a Result of Business Operations
In order to grasp the impact of our business operations on the environment, we conduct surveys
of resource and energy usage (input) and gas, water, and waste emissions (output). The results
for the Nissha Group in the fiscal year ended December 2018 are given in the table below.
The amount of major raw materials used at the Nissha Group during the fiscal year ended
December 2018 was approximately 119,000 tons. Of this amount, the amount used at ouroverseas bases accounted for approximately 77%. In addition, the largest single material usedat the Nissha Group was paper for metallized paper, a product from the Industrial Materials
business, accounting for approximately 65%. The next largest was materials for production
processes in the Devices business, which accounted for approximately 13%.
On the other hand, the amount of waste products generated in the Nissha Group during the
fiscal year ended December 2018 was approximately 27,000 tons. Of this amount,approximately 82% was generated by our domestic production bases.

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Industrial Materials

INPUT

OUTPUT

Production bases in Japan

Production bases in Japan
1,311t

PET/acryl film
Solvents

1,099tGravure Ink

1,001tOthersWaste containing(items sold fornoble metals

recycling)

Metal waste
Resin waste

148t

8,735tPaper waste

DevicesMaterials used in
15,522t

product manufacturing

Recyclable resources

processes

Information andCommunication

FIS

Recyclable resources

Waste plastic(industrial waste)
Iron scrap, waste

Others2,064t

cans

Paper

6,534tWaste solvents, waste

Ink

69t

Others70t

Metallic materials

2t

Resin materials

2t

Half-finished goods

31tink, waste cloth
Waste acid, alkali
13,230t

Sludge, others
Waste for simple

General businessincineration/landfill

waste
Others (industrial
waste)

Total for production

27,853tbases in Japan

29t

Total for production

21,994tbases in Japan

Overseas production bases

Overseas production bases

Resin5,394tMolds and molding

Total waste
Total for overseas

90tmaterials
Touch sensors

Total for Nissha

179t

Aluminum

1,094tChemical substances

6,391tOthers367t

Total for overseas

90,732t

production bases
Total for Nissha

118,586t

Group

Including production bases in Japan and overseas
EnergyWater

Including production bases in Japan and overseas

Electricity

285,404MWh

Gas

10,426,000m3

Tap water

1,252,000m3

Underground waterIndustrial water

26,782t

Group

77,217t

Cardboards

4,788tproduction bases

1t

Paper

4,788tEmissionsCO2

184,570t

VOC (including
volume of after
combustion andtreatment)

10,000m3
Wastewater

2,158,000m3

77

1,069t3,334,000m3

Sustainability Report 2019

Adaptation to Climate Change
The Nissha Group treats adaptation to climate change as a key issue, so we are creating
business opportunities and managing risk based on the strong leadership of management.

Governance Structure
As a governance structure for risk management, a CSR Committee has been established,headed by the Chairman of the Board, President and CEO. The Committee has selected“adaption to climate change” as one of its material issues, and promotes a range of activities by
the Environmental, Safety and Health Subcommittee under its jurisdiction. The Subcommittee isformed from members from Nissha Global Headquarters and our business bases, and sets KPI
and company-wide strategy items at the beginning of the fiscal year. Then various targets linked
to these are set at key bases in Japan.The CSR Committee checks the status of activities of theEnvironmental, Safety and Health Subcommittee at the progress confirmation meetings held
every quarter, and reports on the activities results for the current fiscal year and policies for the
new fiscal year at the first Board of Directors meeting of the next fiscal year.
On the other hand, with regard to the creation of business opportunities, the business units
or divisions responsible for new product development incorporate adaptation to climate change
in their various strategy items and KPIs. Progress towards targets is checked on a monthly basis
at the MBR (Monthly Business Review), the progress confirmation meeting for businessactivities, by members of corporate officer or higher rank, especially the Chairman of the Board,
President and CEO.
The MBR, which is a meeting to manage the progress of business activities, and the CSR
Committee, which is responsible for risk management, share and liaise information by bothhaving the strategy division act as the secretariat.

Specific Examples of Adaption to Climate Change
1. Risk Management
The CSR Committee Environmental, Safety and Health Subcommittee determines specificclimate change risks and adapts to them in order from the greatest impact. Some risks are also
dealt with in liaison with the BCM Subcommittee or others .
Major risks adapted to in the fiscal year ended December 2018:- Risk of damage to factory operation at our core production factories, and employees hamperedfrom coming to work through the effects of abnormal weather such as heavy snow caused byclimate change.
- Risk of increased amounts and costs of power consumed due to increased summer
temperatures caused by climate change.

2. Creation of Business Opportunities
Nissha creates business opportunities by being aware of social issues and providing ourcustomers with the technology to help solve them.
Examples of creating business opportunities carried out in the fiscal year ended December 2018:- Metallized paper, one of the main products of the Industrial Materials business, is highly
regarded in the high-function packaging materials market as a product that solves the global
issue of reducing the amount of plastic we use. Using metallized paper in place of plastic

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packaging not only solves the problem of ocean plastic, but allows us to contribute to thepromotion of recycling and the reduction of energy use when producing materials.
- IMD and IML, which are technologies to transfer both function and design onto the surfaces ofa component while it is being molded, and are provided by the Industrial Materials business forthe automotive market, have better yield rates than other manufacturing methods, so help
reduce CO2 emissions by contributing to the reduction of raw materials used in the first place,and the reduction of waste.

Prevention of Further Global Warming
Nissha is working to acquire third-party certification related to CO2 emissions, and disclose
relevant information, as well as provide information to CDP. As of May 2019, our current CDP
climate change score is ‘B.’

Status of CO2 Emissions at Nissha GroupCO2 emissions and energy consumption at the Nissha Group between the fiscal years ended
March 2017 and ended December 2018 are given in the graphs below. With the change in fiscal
year end date, data for the Nissha Group in Japan in the fiscal year ended December 2017 covera nine-month period from April to December (and a twelve-month period from April to March in
FY2017.3, and from January to December FY2018.12).
*NII: Nitec Industries, Inc. NPT: Nitec Precision and Technologies, Inc. NPC: Nissha Printing
Communications, Inc.

Trends in CO2 Emissions Volumes and Basic Unit

※ Includes approximate figures.
Trends in Energy Consumption and Basic Unit

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※ Includes approximate figures.
Trends in Electricity Consumption

Trends in Gas Consumption

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Trends in Gasoline, Diesel, and Heavy Oil Consumption

Comparison of CO2 Emissions in 2017 and 2018
With the change in settlement month, the fiscal year ended December 2017 was only ninemonths, from April to December, so the emissions from January to March for the fiscal year
ended March 2017 were added to make twelve months to compare them with the CO2 emissions
for the fiscal year ended December 2018 (twelve months from January to December). The CO2
emissions for the fiscal year ended December 2018 were 184,570t-CO2, an increase of about
4% over the emissions from the same period the previous year.
The CO2 emissions at business bases in Japan were 131,653t-CO2 for the fiscal year ended
December 2018, accounting for around 71% of the Nissha Group’s total, and an approximately
2% increase over the same period the previous year. This is due to the increased emissions
from the NPT Kaga Factory and Tsu Factory: thanks to mass production of large orders ongoingfrom the previous year, NPT’s overall emissions rose around 4%. However, CO2 emissions forthe fiscal year ended December 2018 at overseas production bases were 52,917t-CO2. About
29% of the Nissha Group’s CO2 emissions were produced by our overseas production bases.
Nissha Group emits virtually no energy-related greenhouse gases other than CO2, and theireffects are minimal.

Trends in CO2 Emissions Volumes and Basic Unit

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Trends in Energy Consumption and Basic Unit

Trends in Electricity Consumption

Trends in Gas Consumption

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Trends in Gasoline, Diesel, and Heavy Oil Consumption

Basic Unit Management by Production Volume and Its Issues
The Nissha Group’s production bases in Japan are required by the Act on the Rational Use ofEnergy to understand and manage the use of energy on a corporation basis. In addition, thebasic unit management of energy usage using production volumes has been carried out
independently from the fiscal year ended April 2014, with the aim of improving energy use
efficiency.
The basic unit performance for each production base in the fiscal year ended December 2017
was set as 1.00 across the board, so the target for the fiscal year ended December 2018 was
set at “0.99 or less” using this as a standard. The results are shown in the table below. The
basic unit targets at the NPT factories responsible for the Devices business production all fell
short of the target due to changes in demand.
The Nissha Group’s production bases are moving ahead with reducing their fixed usage amounts
as well as their flexible usage amounts of energy while liaising with the CSR Committee’s
Environmental, Safety and Health Subcommittee. There are some effects on the basic unit
values from changes in external temperature in different seasons, but to solve these issues weare moving ahead with analyzing data and making the amount of energy we use visible,
increasing the precision of basic unit values, and sustainably improving basic unit management.

Basic Unit
(based on production volume etc.)
Company

FY ended

FY ended

FY ended

FY ended

Dec. 2017

Dec. 2018

Dec. 2018

Results

TargetResults

Nissha Co., Ltd. (Global Headquarters,
Tokyo and others)
Nitec Industries, Inc., Koka
Nitec Precision and Technologies, Inc.,
Himeji
Nitec Precision and Technologies, Inc.,
Kaga
Nitec Precision and Technologies, Inc.,
Kyoto
Nitec Printing Co., Ltd.,

Dec. 2017
Evaluation

1.00

0.99 or less

0.94

Satisfactory

1.00

0.99 or less

0.94

Satisfactory

1.00

0.99 or less

1.21

Poor

1.00

0.99 or less

1.00

Poor

1.00

0.99 or less

2.42

Poor

1.00

0.99 or less

0.93

Satisfactory

Note: Evaluations are based on April–December 2017 results

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Sustainability Report 2019

Initiative in Scope 3 Management
In line with the move in recent years to report indirect emissions from companies through their
supply chain, defined by the Carbon Disclosure Project (CDP) as Scope 3 sources, and topromote reductions toward improving the company’s ESG rating*, the Environmental, Safety
and Health Subcommittee continues to lead efforts at Nissha to survey Scope 3 emissions andimprove our ESG rating.
CO2 emissions during the period January – December 2018 amounted to 2,423t-CO2 from
employee commuting, 1,528t-CO2 from business travel (excluding gasoline), 3,242t-CO2 frommajor logistics suppliers in Japan, and 10,969t-CO2 from major materials suppliers in Japan.
We plan to continue our efforts in Scope 3 management in cooperation with our suppliers.
Scopes 1, 2, 3: Scopes of GHG emissions
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* ESG rating: A method of evaluating companies based on environmental, social, andgovernance criteria

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Waste Management
In the fiscal year ended December 2018, the Nissha Group in Japan generated a total of 21,994
tons of waste, including waste reused as resources, waste solid for recycling and waste forsimple incineration/landfill. Compared with the 22,125 tons generated over the twelve months
from January to December 2017, this is largely the same.
In addition, emissions from incineration and landfill waste accounted for 29 tons. This is about a
60% reduction from the 72 tons generated from January to December 2017. The main reason is
improvements to the production process quality practiced at each factory, such as reducing thenumber of defects. As a result, our recycling and resource reuse rate was 99.9%, the same aslast year, and we are maintaining our zero emissions (recycling and resource reuse rates of
99.5% or above) levels.

Comparison of Jan.-Dec. 2017 with Jan.-Dec. 2018 (Nissha Group in Japan)

Trends in Fiscal Years

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Sustainability Report 2019

*The fiscal year ended December 2017 covers a nine-month period (from April to December).

All waste generated in Asian production bases (Guangzhou Nissha, Nissha Kunshan, Nissha Precision Technologies
Malaysia)

All waste generated

FY ended

FY ended

FY ended

March 2017

December 2017

December 2018

（tons）

222

238

231

Recycling and resource reuse rates in Asian production bases (FY ended December 2018)
Targets

Results

Evaluation

Guangzhou Nissha

72% or more

79%

Satisfactory

Nissha Kunshan

89% or more

100%

Satisfactory

Nissha Precision Technologies Malaysia

90% or more

97%

Satisfactory

Risk Management Related to Waste and Waste Converted in Valuable Resources
We recognize largely three types of waste-related risk:
 Accidents and disasters caused by waste and waste converted into valuable resources(including at treatment contractors)
 Environmental pollution and violation of laws caused by inappropriate waste treatment
 Leakage of confidential information from waste and waste converted into valuable
resources
Based on laws and customer demand, we have created a set of Nissha Group Waste
Management Regulations that enables all bases of the Nissha Group to manage waste safely
under the same set of standards. In line with these regulations, each base has drawn up its own
Waste Management Manual and makes efforts toward thorough waste separation andmanagement. Whether a small amount of substance or a spray can, the properties of waste arechecked meticulously and monitored so as to prevent spillage during transportation andaccidents at treatment facilities. The regulations also stipulate the criteria for selecting waste
treatment contractors and for regularly inspecting treatment facilities using a checklist original
to Nissha. In addition, we have in place standards for managing waste and waste converted into
valuable resources that contain confidential information, and promote management inassociation with our information security management system (ISMS).
During the fiscal year ended December 2018, restrictions on disposal of waste plastics came into
force at some of our sites in Japan due to restrictions on the import of plastic waste in China andSoutheast Asian nations. As we foresee a risk of waste plastic disposal costs rapidly growing in
future, we are moving ahead with ensuring strategic recycling, such as the selection of multiple
disposal companies.

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Status of Waste Generation at Bases
Status of Waste Generation at Major Production Bases (December 2018 Results)
Nitec Industries, Inc. (NII) Koka Factory
Location: Koka City, Shiga Prefecture
Acquisition of ISO14001 Certification: June 2007
Production items: Transfer foils (the Industrial Materials business)％

Recycling and resource reuse rate: 100.0

Waste items

Ratio

Waste Plastic

41.9%

Waste ink

35.4%

Waste Alkali and waste acid

9.1%

Aluminum,tin,waste cans,and copper scrap

8.4%(valuable materials)
Waste cloth and waste filters

2.6%

Sludge,crucible,and woodchips

1.6%

Resycled paper and cardboards (valuable

0.8%

materials)
Non-industrial waste

0.2%

Simple incineration and landfill

0.0%
100.0%

Recycling and resource reuse rate

Nitec Precision and Technologies, Inc. (NPT) Himeji Factory
Location: Himeji City, Hyogo Prefecture
Acquisition of ISO14001 Certification: March 2014
Production items: Touch sensors (the Devices business)
Recycling and resource reuse rate: 99.9%

Waste items

Ratio

Waste acid, waste alkali and waste oil

34.5%（valuable materials）

Waste plastic

33.8%

Sludge19.7%

Waste plastic

9.3%

（

Recycled paper and cardboards valuable
materials）

2.3%

Wood chips and glass waste

0.2%（valuable materials）
Waste oil（valuable materials）

0.1%

Metal-bearing waste

0.0%

Simple incineration and landfill

0.1%

Recycling and resource reuse rate

99.9%

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Sustainability Report 2019

Nitec Precision and Technologies, Inc. (NPT) Kaga Factory
Location: Kaga City, Ishikawa Prefecture
Acquisition of ISO14001 Certification: March 2014
Production items: Touch sensors (the Devices business)
Recycling and resource reuse rate: 99.8%

Waste items

Ratio（valuable materials）

Waste plastic

33.2%

Waste acid and waste alkali

30.3%

Sludge14.7%

Waste oil

9.8%

Waste plastic

9.6%

（

2.1%

（valuable materials）

0.1%

Recycled paper and cardboards valuable
materials）

Metal-bearing waste

Simple incineration and landfill

0.2%

Recycling and resource reuse rate

99.8%

Nitec Precision and Technologies, Inc. (NPT) Tsu Factory
Location: Tsu City, Mie Prefecture
Production items: Touch sensors (the Devices business)

Recycling and resource reuse rate: 100.0%

Waste items

Ratio

Waste acid and waste alkali

40.7%（valuable materials）

Waste plastic

30.6%

Waste plastic

18.4%

Sludge

7.8%（

Recycled paper and cardboards valuable
materials）

2.4%

Wood chips and glass waste

0.1%

Metal (valuable materials)

0.1%

Waste oil（valuable materials）

0.0%

Simple incineration and landfill

0.0%
100.0%

Recycling and resource reuse rate

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Sustainability Report 2019

Management of Chemical Substances and Environmental Risks
The Nissha Group in Japan is working to understand and minimize the environmental risks its
business activities have on the local community, and is developing a system that can promptly
deal with problems when they arise. We publish Sustainability Reports and similar to help our
stakeholders understand how Nissha is working to protect the environment, and do our best to
make public the status of our voluntary chemical substance management and environmental
risk information.

Avoiding environmental risk (preventing environmental accidents or pollution)
The Nissha Group in Japan realizes that pollution from chemical substances is a serious
environmental risk, and works to avoid it. To prevent environmental accidents from happening
during storage of chemical substances, or transportation within a work site, we lay out
management procedures that consider the scale and frequency of accidents, and takecountermeasures. In addition, we have set emergency response procedures and carry out
training on an ongoing basis to minimize the effects in event of a leak, and revise and improve
our methods as required.

Examples of responses
 Emergency cutoff devices
Sites for deliveries of liquid chemicals via tanker truck or waste liquid collection are
constructed so that they can be blocked off to prevent any substances from escaping outside
the site if a leak occurs.
 Leak response training
We establish countermeasure procedures to prevent pollution from spreading in the event ofa leak at sites for deliveries of substances or waste liquid collection, hold regular training,
and revise the procedures.

Drill for liquid chemicals leakage from tanker truck

Processing of industrial waste both domestically and overseas is contracted to industrial waste collection
and transportation companies and industrial waste processing companies that have legal permission.
Once a year, we send people to observe the contractor and the final disposal location to confirm that thewaste is being disposed of properly. In addition, we carry out surveys to understand risks such as soil
pollution concomitant with changes to soil character when constructing Nissha factories or other facilities,
and take the appropriate measures.

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Note that in the fiscal year ended December 2018, we had no serious environmental accidents orviolations of environmental laws or regulations, and paid no fines or penalties.

Responses to local complaints and environment communication
In addition to minimizing environmental risks and prompt responses when they do happen, we feel that
communication with local residents is very important.
In the fiscal year ended December 2018, we have no environment-related complaints such as loud noises
at our core factories in Japan. When we do receive a complaint, we set out procedures to quickly comeup with a way to resolve the issue and a way to prevent it from recurring, as a way to deal with itappropriately.
In addition, we work on communication with the community to ensure locals understand that we are
actively engaged in protecting the environment. This communication includes holding classes on theenvironment in local elementary schools and preschools.

Management of chemical substances
The Nissha Group in Japan is working to ensure the safety of its products and to provide
products with low global environmental impacts in order to construct a sustainable society. In
addition to laws, regulations, and standards such as the RoHS Directive and the REACH
Regulations, we set our own voluntary standards to satisfy the environmentally hazardous
substance standards of all our customers and manage the environmentally hazardous
substances we use in our products.

System to ensure compatibility with our voluntary standards

Management of Environmental Pollutants
The Nissha Group in Japan is constructing a database of chemical substances used in its
business sites, and building a system to allow us to understand and manage how thesesubstances are used at each site. We use this system even for the calculation of emission andtransfer amounts which 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) requires reporting on. In the fiscal year ended December 2018, substances whichwere transferred or emitted in excess of one tonne were ethylbenzene, xylene, 1,2,4trimethylbenzene, toluene, and n-hexane.
We also take great care with management when it comes to handling chemical substances. In
addition to displaying GHS labels on containers to warn people, we carry out measures toprevent environmental pollution such as installing spillover containers to ensure safety if the90

Sustainability Report 2019

main container develops a leak, and ensure that all related personnel are familiar with thesemeasures.

Contents of our voluntary standards and list of target substances (extract)

Contests of standards

Groups of substances in the Nissha Control List for Chemical Substances in
Purchased Products (extract)
Asbestos fibres
Dioxins
Ozone depleting substances
Fluorinated greenhouse gases

Usage-prohibited
substance

Bisphenol-A (with usage conditions)
Substances prohibited from being manufactured (Manufacture-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)
The Restriction of the use of certain Hazardous Substances in electrical andelectronic equipment
REACH SVHC (Substances of Very High Concern) and Candidate List
Substance
Nickel and its compounds (with usage conditions)
Polychlorinated biphenyls (PCBs)

Deliberate usage-

Specific phthalates

prohibited substanceSpecific benzotriazol
Dimethylfumarate (DMF)
Perfluorooctane sulfonates (PFOS)
Perfluorooctanoate (PFOA)Natural rubber
Class 1 Specific Chemical Substances of Law Concerning the Examination andRegulation of Manufacture, etc. of Chemical Substances
Global Automotive Declarable Substance List
Conflict minerals

Regulated substance

The Proposition 65
Children's Safe Product Act (RCW 70.240.030) The Reporting List of Chemicalsof High Concern to Children (CHCC)

Examples of regulated substances that apply to purchased products (Nissha product raw materials, chemicals used in the
production process for materials, etc.)
1. Usage-prohibited substance: Use, either deliberately or not deliberately, is prohibited. Inclusion of impurities is also
prohibited.
2. Deliberate usage-prohibited substance: Deliberate use is prohibited. There are regulations on the inclusion of
impurities.
3. Regulated substance: Substance which requires a content report. Substance which has regulations from industrial
groups. (Includes prohibited substances.)

Controlling atmospheric emissions
The Nissha Group in Japan carries out voluntary activities to control the emission of volatileorganic compounds (VOC), one of the causes of atmospheric pollution. The NII Koka Factory,
which emits VOCs, uses a catalytic deodorizer and a direct combustion deodorizer to scrub or
reduce VOCs.
We also regularly measure smoke from our boilers to ensure it complies with the various laws,
regulations, and regulatory standards.

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Surveys of soil and groundwater contamination
We carry out regular surveys and monitoring of groundwater contamination at our production
bases in Japan as well as the grounds of our Kyoto Global Headquarters. In particular, wesurvey contamination status and check safety before construction for the development projects
we are carrying out at the Kyoto Global Headquarters.

Prevention of Pollution
We undertake monitoring and measuring activities to prevent pollution. Based on our strict
voluntary standards, we conduct periodic testing the level of atmospheric pollutants, wastewater
quality, noise, and foul odor.

Nitec Precision and Technologies, Inc. (NPT) Himeji Factory
Measurements of Wastewater Quality

Agreement
value (Law
Regulatory
value
Items

(Watermeasured

Pollution

ConcerningforConservation

Voluntarystandard

FY ended December 2018

AnalysisAnalysisAnalysisUnitof theAct)

FY ended December 2017

SpecialMeasures

Control

FY ended March 2017

value

Environment

Evaluation

value

Evaluation

value

Evaluationof the Seto
Inland Sea)
Discharged
water
pH

5,200

〜8.6

5.8

5,000

5,000

〜8.6

6.5

5.8

m3

〜8

4,969

○

〜7.6

○

6.9

4,976

○

〜8.0

○

6.8

4,934

○

〜7.6

○

6.9

BOD

120.0

10.0

9.0

mg/L

3.5

○

1.4

○

2.9

○

COD

120.0

10.0

9.0

mg/L

4.8

○

4.6

○

4.6

○

SS

150.0

5.0

4.5

mg/L

0.9

○

3.0

○

3.7

○

1.0

0.9

mg/L

0.8

○

0.6

○

0.6

○

n-hexanederivedsubstances

Mineral oil
5
Vegetableoil 30Phenol

5.0

0.1

0.08

mg/L

< 0.005○< 0.005○< 0.005○

Copper

3.00

0.50

0.40

mg/L

0.05

○

0.03

○

0.04

○

Zinc

2.00

1.50

1.20

mg/L

0.02

○

<0.01

○

< 0.01

○

10.00

0.15

0.08

mg/L

0.02

○

<0.01

○

< 0.01○10.000

0.050

0.045

mg/L

0.050

△

0.050

△

0.050

△

Chromium

2.00

0.02

0.02

mg/L

< 0.02○< 0.02○< 0.02○

Nitrogen

60.0

10.0

9.0

mg/L

4.2

△

5.4

○

4.8

○

Phosphorus

8.00

1.00

0.45

mg/L

0.02

○

0.14

○

0.05

○

Solubleiron
Solublemanganese

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Sustainability Report 2019

Nitec Precision and Technologies, Inc. (NPT) Kaga Factory
Measurements of Wastewater Quality

FY ended March 2017
Regulatory

Voluntaryvalue

Items measured

Unit

standard(Prefecture)〜8.6

FY ended December 2017
Final

Final

Final

effluent

effluent

effluent(Maximum)(Average)(Maximum)

○

7.6

○

7.4

○

7.7

○

Final effluent

Final effluent

Final effluent(Average)(Maximum)(Average)

7.4

○

7.7

○

7.5

〜8.2

pH

5.8

BOD

160 or less40 or less

mg/L

7.5

○

27

○

31.5

○

47

-

32.6

○

56

-

COD

160 or less80 or less

mg/L

9.1

○

26

○

35.4

○

63

○

55.3

○

93

-

SS

200 or less20 or less

mg/L

2.6

○

4.2

○

15.6

○

26

-

28.2

-

63

-

30.0

15 or less

mg/L

0.5

○

0.5

○

0.5

○

0.5

○

0.5

○

0.5

○

n-hexane derived
substances

6.2

FY ended December 2018

*Final effluent from Fab 3 and Fab 5 was integrated since FY 2016.

Nitec Precision and Technologies, Inc. (NPT) Tsu Factory
Measurements of Wastewater Quality

Regulatory
value
Items

(Watermeasured

Pollution
Control
Act)

pH

〜8.6

5.8

BOD

120.0

COD

120.0

SS

150.0

N-hexane

5.0

Phenol5.0

Copper

3.0

Zinc

2.0

Soluble iron

10.0

Solublemanganese
Chromium
Coliform
bacteria

Agreement
value of Tsu
Cityenvironmental

FY ended March 2017
Voluntarystandard

〜8.6
≦20.0
≦20.0
≦70.0
≦5.0

Jun.

≦3.0
≦2.0
≦10.0

〜8.6
≦20.0
≦20.0
≦70.0
≦5.0
5.0

5.8

≦3.0
≦2.0
≦10.0

FY ended December 2018

Unit

conservation
5.8

FY ended December 2017

Dec.

Jun.

Dec.

Jun.

Dec.

-

-

-

-

8.0

○

7.8

○

7.9

○

8.3

○

mg/L

-

-

-

-

9.4

○

<5.0

○

<5.0

○

< 5.0

○

mg/L

-

-

-

-

6.1

○

3.6

○

0.8

○

5.1

○

mg/L

-

-

-

-

<1.0

○

<2.0

○

< 2.0

○

< 2.0

○

mg/L

-

-

-

-

<1.0

○

<2.0

○

< 2.0

○

< 2.0

○

mg/L

-

-

-

-

<0.025

○

<0.5

○

< 0.5

○

< 0.5

○

mg/L

-

-

-

-

<0.01

○

<0.1

○

< 0.1

○

< 0.1

○

mg/L

-

-

-

-

<0.01

○

<0.1

○

< 0.1

○

< 0.1

○

mg/L

-

-

-

-

0.2

○

0.3

○

0.4

○

<0.1

○

10.0

10.0

mg/L

-

-

-

-

<0.1

○

<0.1

○

< 0.1

○

< 0.1

○

2.0

2.0

mg/L

-

-

-

-

<0.04

○

<0.1

○

< 0.1

○

< 0.1

○

≦3,000≦3,000

unt/mL

-

-

-

-

<30.0

○

58

○

100

○

100

○

≦10.0
≦1.0

≦10.0
≦1.0

mg/L

-

-

-

-

7.1

○

1.0

○

0.8

○

1.2

○

mg/L

-

-

-

-

0.03

○

<0.1

○

<0.1

○

< 0.1

○

3,000

Nitrogen

60.0

Phosphorus

8.0

Fluorine

8.0

8.0

mg/L

-

-

-

-

0.1

○

-

-

<0.8

○

-

Cadmium

0.03

0.03

mg/L

-

-

-

-

<0.005○--< 0.001○-

Cyanide

1.0

1.0

mg/L

-

-

-

-

<0.1

○

-

-

< 0.1

○

-

93

Sustainability Report 2019

Lead

0.1

0.1

mg/L

-

-

-

-

<0.02

○

-

-

< 0.01

○

-

0.5

0.5

mg/L

-

-

-

-

<0.04

○

-

-

< 0.05

○

-

0.1

0.1

mg/L

-

-

-

-

<0.01

○

-

-

< 0.01

○

-

0.005

0.005

mg/L

-

-

-

-

<0.0005○--< 0.0005○-

Hexavalentchromium
Arsenic
Total
mercury

Management of Chemical Substances
For the fiscal year ended December 2018, we reported the use of nine PRTR-designatedchemical substances. The tables below show the results of our main production bases.
.
Nitec Industries, Inc. (NII) Koka Factory
Unit: kg

FY ended March 2017

PRTR
No.

FY ended Decenber 2017

VolumeName ofchemical
substance

FY ended December 2018

VolumeVolumeDischargetransferred toReporting

Dischargetransferred toReporting

Dischargetransferred

Reportingvolume into

industrial

required /volume into

industrial

required /volume into

to industrial

required /

the

waste

not

the

waste

not

the

waste

not

atmosphereprocessing

required

atmosphereprocessing

required

atmosphereprocessing

requiredcompanies

companies

companies

53

Ethylbenzene

4,279

1,028

○

2,109

530

○

1,444

587

○

80

Xylene25,191

6,414○

16,261

4,219

○

9,904

4,026

○

0.1

0.0

○

0.1

0.0

○

0.1

0.0

○

1,284

538

○

2,258

1,114

○

299

107

○

Hexavalent
88

chromiumcompounds296

1,2,4Trimethylbenzend

300

Toluene83,162

48,381○

66,39939,970○83,927

36,831○

392

N-hexane

5,275

3,080

○

5,261

3,227

○

8,371

2,375

○

Nitec Precision and Technologies, Inc. (NPT) Himeji Factory
Unit: kg

FY ended March 2017

PRTR
No.

Name ofchemical
substance

Discharge
volume intotheatmosphere71
272

Ferricchloride
Water-soluble

FY ended December 2017

FY ended December 2018

VolumeVolumetransferred toindustrial waste
processing
companies

VolumeReporting

Dischargetransferred toReporting

Dischargetransferred

Reportingrequired /volume into

industrial

required /volume into

to industrial

required /

not

the

waste

not

the

waste

not

required

atmosphereprocessing

required

atmosphereprocessing

requiredcompanies

companies

0.0

0.0

○

0.0

0.0

○

0.0

0.0

○

0.0

331.8

○

0.0

1,857.0○

0.0

2,023.1○

copper salts

94

Sustainability Report 2019

(excluding
complex salt)
Molybdenum453

and its

-

-

-

0.0

0.0

0.0

○

0.0

○

compounds

Nitec Precision and Technologies, Inc. (NPT) Kaga Factory
Unit: kg

FY ended March 2017

PRTR
No.

Name ofchemicaltransferred tovolume into

substanceindustrial waste

theprocessing

atmosphere

FY ended December 2018

VolumeVolumeDischarge

FY ended December 2017

companies

VolumeReporting

Dischargetransferred toReporting

Dischargetransferred

Reportingrequired /volume into

industrial

required /volume into

to industrial

required /

not

the

waste

not

the

waste

not

required

atmosphereprocessing

required

atmosphereprocessing

requiredcompanies

companies

Silver and its
82

compounds-(water

-

-

-

-

-

-

-

-

soluble)71

Ferricchloride

0.0

0.0

○

0.0

0.0

○

0.0

0.0

○

0.0

0.0

○

0.0

0.0

○

0.0

0.0

○

-

-

-

Water-soluble
272

copper salts(excluding
complex salt)
Molybdenum453

and its

-

-

-

-

-

-

compounds

Nitec Industries, Inc. (NPT) Tsu Factory
Unit: kg

FY ended March 2017

PRTR
No.

Name ofchemical
substance

Discharge
volume intotheatmosphere

71

Ferricchloride-

Volumetransferred toindustrial waste
processing
companies-

FY ended December 2017

Reporting

Discharge

required /volume into

not

the

required

atmosphere-

0.0

Volumetransferred toindustrial waste
processing
companies

0.0

FY ended December 2018
VolumeReporting

Dischargetransferred toReportingrequired /volume into

industrial

required /

not

the

waste

not

required

atmosphereprocessing

requiredcompanies

◯

0.0

0.0

◯

*Added to scope of reporting in the fiscal year ended December 201795

Sustainability Report 2019

Fair Operating Practices
We address various challenges not only in-house
but also in cooperation with our suppliers,

with the aim of enhancing our corporate value and being a Nisshathat our customers will feel safe in choosing.

96

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Initiatives Related to Information Security
Information Security Policy
The spread of the Internet and the broad use of devices such as smartphones have ushered in aconvenient era in which anyone can connect with the online community easily at all times. On
the other hand, with cyberattacks, email spoofing, and other crimes against information security
growing rampant and ever more advanced, the risks are increasing of everyone becoming either
a victim or perpetrator of information leakage.
Information handled by the Nissha Group regarding our customers and suppliers, and our
employees, is of vital importance. In particular, it is unforgivable to allow information on new
products, state-of-the-art technologies, personal information and other highly confidential
information assets to leak outside the company or beyond related parties. To ensure this does
not happen, we aim to build a highly reliable and safe information security management system(ISMS). To that end, in 2005 we drew up our Information Security Policy, which all employees
are required to be familiar with.

Information Security Policy
Nissha and its subsidiaries committed to establish, maintain, and improve highly reliable and secure
an information security management system to protect our own business information and theinformation assets, which we acquire from customers, suppliers and employees, etc., through ourbusiness activities performed, from any kinds of threat. And we take internal and external information
security requirements into consideration and reduce all risks below the acceptable levels.

1. We continually improve an Information security management system by establishing,implementing, and reviewing the information security objectives, so that the confidentiality,
integrity, and availability of information can be maintained and improved.
2. We comply with legal and regulatory requirements for information security and with contractual
security obligation.
3. We establish and improve the criteria for reasonably evaluating risks concerning information
security as well as the risk assessment methods, to mitigate risks and to maintain theinformation security levels which contributes to the corporate developments.
4. We make Information Security Policy known to all employees working in the premises of Nissha
Group and its subsidiaries to raise their awareness of the issues related to information security.

July 1, 2013
Junya Suzuki
President and CEO
Chairman of the Board
Nissha Co., Ltd.

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Sustainability Report 2019

Information Security Management Structure
We have in place an Information Security Subcommittee of the CSR Committee to serve as a center for thepromotion of information security in Nissha Group. The subcommittee is run by an ISMS management
representative (the Chief Information Officer, or CIO) and comprises information security managers andpromoters selected from each department. An ISMS secretariat set up within the IT Department functions as
the subcommittee secretariat.The subcommittee plays an important role in the promotion of our ISMS byaddressing issues that have become evident as well as reporting and sharing the results and challenges of
initiatives related to information security.

Management Structure

Initiatives in Information Security Management
Rapid advances in information technology and the diversification and spread of IT devices pose not only
conventional security risks such as information leakage and tampering caused by virus infection andcyberattacks, but also the risks of casual posts, tweets, rumors, and reviews on social media harming acompany’s image and its brand value. Companies today are required to address such risks to their trust fromsociety. Moreover, with the swift global popularization of bring-your-own-device (BYOD), companies are
required to manage a broader range of information appliances, beyond company-issued computers topersonally owned devices used at work. Dealing with these risks appropriately and promptly is considered a
corporate social responsibility. (Nissha supports BYOD since December 16, 2013.) At the Nissha Group, wework to maintain and improve our ISMS by naming the Chief Information Officer (CIO) as ISMS management
representative of an ISMS secretariat established within the IT Department.
We select information security managers and promoters from each department to promote thorough operationof our ISMS. And we organize regular reviews by top management, ISMS internal audits, and ISO 27001
screenings by an outside examination institute, recognizing these as good opportunities for improving our
ISMS.

Information Security Education
Preventing the occurrence of information security incidents and accidents requires theformulation of policies and regulations, and more importantly, that all employees takedisciplined action with sufficient awareness of information security.
We provide education to the Nissha Group based on the Information Security Compliance
Manual, a teaching material that reflects the information security policies and other matters

98

Sustainability Report 2019

established within Nissha, working to deepen the understanding of all Nissha People regarding
information security. In the fiscal year ended December 2018, we used e-learning to ensure all
employees follow our policies.

ISO27001 Certification
The Nissha Group has obtained ISO27001 certification, a global standard for
ISMS, and is working to expand its scope of application to all bases anddivisions. In the fiscal year ended December 2018, Nitec Precision andTechnologies’ (NPT) Tsu Factory obtained certification for the first time. In
addition, our current focus is a global expansion of compliance with ISO27001
requirements.

99

Sustainability Report 2019

Trade Management
We at the Nissha Group earned 83.8% of our sales outside Japan in the fiscal year ended December 2018.
With overseas operations expanding each year, efforts in trade management are essential from theperspective of business continuity.

Net sales and percentage of overseas sales

Trade Management Policy and Management Structure
We have in place a Trade Management Policy covering the entire Nissha Group. As an
Authorized Economic Operator (AEO), we also establish rules and regulations, and maintain astructure toward continuous improvement of trade management.

Trade Management Policy
Nissha and its subsidiaries comply with legal requirements and agreements in trade andstrive for continuous improvements in the trade management system for theachievement of our Mission.
1. We comply with applicable trade control laws and regulations in each country and region, andwith international regimes.
2. We designate a person responsible for trade management, and develop, maintain and improve
the trade management system.
3. We pursue good trusting relationships with official agencies in each country and region andinternational logistics companies etc.
4. We provide necessary education on trade to employees and other parties concerned.
Established on October 1, 2016
Revised on January 1, 2018
Junya Suzuki
Chairman of the Board
President and CEO
Nissha Co., Ltd

100

Sustainability Report 2019

Full-scale trade management at the Nissha Group in Japan started with the launch of the Trade Administration
and Control Committee in 2011. Initiatives were passed on in 2016 to the Trade Administration and Control
Subcommittee, under the framework of the CSR Committee.
The Trade Administration and Control Subcommittee, headed by the corporate officer responsible for
Corporate Supply Chain Management, oversees the entire Nissha Group. In Japan, thorough management indaily operations is assigned to subcommittee members and division managers at each business division,
corporate division, and affiliated company. Outside Japan, where legal systems and business practices vary bycountry and region, oversight is assigned to trade management representatives at each base.

Trade Administration and Control Subcommittee

Based on our Trade Management Policy, we establish the Basic Rules of Trade Management as well as otherrules and regulations on trade-related operations required of an AEO. Individual Nissha divisions draw onthese to compile work standards and operating procedures, and carry out import and export operations. At
overseas affiliated companies, we are working to promote the Trade Management Policy and the Basic Rulesof Trade Management, and to create management documents.

Trade Management Documents System Chart

101

Sustainability Report 2019

Initiatives on FY ended December 2018
In the fiscal year ended December 2018, “Trade Management Education” was provided to all
NISSHA Group employees in Japan based on the education system developed in the previous
fiscal year, and approximately 2,800 people attended. And they were informed that even for
employees who are not directly involved in trade management, there are laws and company
regulations related to trade that should be observed, and that compliance leads to smooth tradeand is essential to our business activities.
We also conduct regular internal audits in order to check and evaluate the status of our trade
management operations. Divisions at which concerns or findings have surfaced are retrained toensure that proper export and import procedures are implemented and employee security
awareness is raised. We will strive to expand the scope of management and enhance its
contents so that appropriate trade business can continue, and contribute to the improvement ofcorporate value.

AEO Approval
Nissha Co., Ltd. obtained approval as an AEO Exporter in June 2014, and as an AEO Importer inJune 2015. Following the post-audit of AEO Exporters in May 2016, the approval of AEO
Importers is maintained after the post-audit conducted in May 2017. Nissha Precision
Technologies Malaysia Sdn. Bhd., based in Malaysia, obtained approval as both an AEO Exporterand an AEO Importer in October 2014.
As of the end of 2018, 59 companies in Japan are approved as both AEO Importer and AEO
Exporter. Being one of these companies with dual approval, we have in place a system for safe
and smooth international logistics.

Authorized Economic Operator (AEO) Program
The AEO program is designed to secure and facilitate global trade and to strengthen a country’s
international competitiveness by providing benefits such as reduced or simplified customs controls to
operators with cargo security management and compliance structures. The September 11, 2001,
terrorist attacks on the United States raised awareness of the necessity of an international framework
for reinforcing anti-terrorism measures by ensuring both security and efficiency in the international
movement of goods. In 2006, the World Customs Organization (WCO) adopted a set of AEO
guidelines as a global standard and the basis on which countries enact laws and operate theirrespective AEO programs. Japan launched its AEO program in 2006, starting with exporters andexpanding gradually into the current form.

102

Sustainability Report 2019

Initiatives Related to Intellectual Property
Approach to Intellectual Property
Under the core policy regarding the protection of intellectual property with the aim of expanding
our performance and ensuring a competitive advantage for new businesses, the Nissha Group
works to establish intellectual property strategies and meet internal needs for securing
intellectual property rights for the Nissha Group as a whole, led by Intellectual Property
Management. In addition, the protection of intellectual property is one of the key items of our
Guideline of the Corporate Ethics and Compliance, and we are actively promoting establishingrights and uses for our intellectual property, along with respecting the intellectual property ofthird parties.

Basic policy for protection of intellectual property
1. We will acknowledge the importance of our technologies and brands as intellectual property
and will undertake their appropriate management.
2. We will report any invention arising through our business operations in accordance with ourCompany regulations.
3. We will strive to avoid the breach of third-party intellectual property rights.

Contents of Initiatives
Promotion of Patent Application
We aim to file for patent application and obtain rights for new technologies developed in our development
divisions. To respond to the increasing globalization of our business activities, this requires us to file forapplication not only in Japan but also abroad. The promotion of technology development and the obtaining ofpatent rights help to differentiate Nissha Group products, made with our own distinctive technologies, fromother companies’ products. This in turn puts a check on the inappropriate use of other companies’
technologies, helping also to reduce intellectual property-related risks in connection with Nissha Group
products for our customers.

Monitoring of Other Companies’ Patents
We periodically research and continuously monitor other companies’ patents so that Nissha Group products
do not infringe others’ patent rights. For monitoring, we input subjects as research criteria in a patent databaseand obtain results on a regular basis using a selective dissemination of information (SDI) system.

Intellectual Property Training Programs
We organize intellectual property training programs conducted by outside specialists to ensure employees candeepen their understanding of intellectual property and learn to properly protect Nissha’s. In the fiscal year
ended December 2018, we held two courses—basic and advanced—which were attended by thirteen people.
Employees in technical fields were required to take the course as a way to learn skills and knowledge related
to intellectual property. The course contents cover a wide range of areas, including intellectual propertysystems, how to research other companies’ patents, understanding inventions, brushing up previously-learned
content, and detecting infringement.

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Sustainability Report 2019In addition, we also provide numerous training
sessions taught by a member of Intellectual Property
Management that covers patents, devising inventions,design, trademarks, and copyright.

Intellectual property training program
Instructor: Mr. Tatsushi Gocho, Patent
Attorney, Associate Professor of Osaka
Institute of Technology
Commissioned organizer: CKS Corporation

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Partnership with Our Suppliers
We at Nissha Group procure the raw materials, components, equipment, and services necessary
for making our products from many suppliers. We work with the suppliers that constitute this
supply chain to promote CSR procurement based on our Basic Purchasing Policy, sharing
awareness of our social responsibility, and enhancing mutual corporate value.

Basic Purchasing Policy
For the achievement of our Mission, the Nissha Group build relationships of trust with our
suppliers through mutually fair procurement.
We evaluate our suppliers fairly, impartially, and comprehensively based on the following
criteria.
1.Stable business foundation and reliable management principles
2.Excellent technology development, stable supply, and quality servicing capabilities
3.Adaptability to changes in the business environment
4.Safety of products and services, consistency of quality, and competitiveness ofpricesand lead times
5.Effective business continuity management
We promote CSR procurement by working with our suppliers in the following areas.
1.Labor and human rights
2.Health and safety
3.Environment
4.Ethics
5.Information security
Established on April 2, 2009
Revised on January 1, 2018
Junya Suzuki
Chairman of the Board
President and CEO
Nissha Co., Ltd.

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Basic Approach to CSR Procurement Promotion

Expansion of Our Supply Chain
We collaborate with various suppliers in conducting our business activities. And its supply chain is expanding
globally.

Supply Chain of the Industrial Materials and Divices Businesses

CSR Supplier Audits
We conduct CSR audits on our suppliers. Many of these audits cover five areas— labor, healthand safety, environmental, ethics, and management system—drawing on the global code of
conduct provided by RBA (Responsible Business Alliance) and on our customers’ own code of
conduct based on this RBA template. Prior to auditing, we organize a briefing to explain the
background, purpose, standards, and flow of the CSR audit. The audit process consists of aninspection of the supplier’s employment regulations and time cards, tours of the site premises
including the clean room, and interviews with employees. In the event the audit uncovers any
instances of noncompliance, the supplier is required to establish corrective action (CA) andpreventive action (PA) on the findings. Roughly three months later, auditors checked that CA
and PA have been taken and the noncompliance has been remedied, bringing the CSR audit tocompletion.
From fiscal year 2015 onward, we carry out audits focusing on particularly important suppliers
and new suppliers. In the fiscal year ended December 2018, with the start of full-scale mass

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production at Nitec Precision and Technologies, Inc. (NPT) prompting recognition of the high riskof human rights issues, we conducted audits at one supplier of temporary employment agencies.
This combined with the 18 companies audited to date brings the total to 19. The audits detected
187 instances of noncompliance (88 related to labor and human rights, 53 to safety and health,
29 to the environment, 12 to ethics, and 5 to management system). Working hours
management and retirement process were among the main findings.
In the fiscal year ending December 2019, we are carrying out CSR surveys using SAQ (SelfAssessed Questionnaires) based on the RBA codes of conduct. This is positioned as a regularannual assessment targeting all suppliers who underwent CSR audits in the past. If we findanything of concern after checking the responses, we intend to carry out a CSR audit locallyusing auditors who have in-house qualifications.

Items of CSR Procurement Guideline
1. Labor and human rights
1) Freely chosen employment
2) Young workers
3) Working hours
4) Wages and benefits5) Humane treatment
6) Non-discrimination
7) Freedom of association
2. Health and safety
1) Occupational safety
2) Emergency preparedness3) Occupational injury and illness
4) Industrial hygiene5) Physically demanding work
6) Machine safeguarding7) Sanitation, food, and housing
8) Health and safety communication
3. The environment1) Environmental permits and reporting2) Pollution prevention and resource reduction3) Hazardous substances
4) Wastewater and solid waste
5) Air emissions
6) Materials restrictions
7) Storm water management8) Energy consumption and greenhouse gas emissions
4. Ethics
1) Business integrity2) No improper advantage
3) Disclosure of information
4) Intellectual property5) Fair business, advertising and competition
6) Protection of identity and non-retaliation
7) Responsible sourcing of minerals
5. Information Security
1) Building of information management system
2) Prevention of leakage of confidential information about our customers and third parties
3) Defense against a computer and network threat, and management of electronic device andrecording medium
4) Prevention of leakage of personal information.

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Fields of ESG check sheet
1. Certification
2. Labor and human rights
3. Health and safety
4. Environmental management
5. Information security management
6. Corporate ethics and compliance
7. Management system

Development of Procurement Personnel
We make continuous efforts to educate procurement personnel and promote transactions with our suppliers
based on fairness, impartiality, and integrity in line with our Basic Purchasing Policy.

Initiatives on FY ended December 2018
Training for new procurement personnel
We conducted training for new hires in and transferees
to procurement divisions of the Nissha Group in Japan,
covering the basic knowledge needed by employees
engaging in procurement operations.

Program Participation
Lecture/Training

Participants in FY2018

Training for new procurement personnel

11 (100% attendance)

Procurement program
Basic course (e-learning)

333 (100% attendance)

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Initiatives Related to Conflict Minerals
The major conflict minerals used in Nissha Group products include tin used in some decoration
films and in ITO film*1 for touch panels, and gold used in FPC*2 plating. When checking whether
we use any of these minerals, we use a Safety Data Sheet (SDS) or other methods to check allmaterials used in our products to identify those that contain conflict minerals. We also ask our
suppliers, who procure the materials for our products, not to use any conflict minerals producedby smelters not identified as conflict-free.*3 We also investigate compliance using Conflict
Minerals Reporting Templates (CMRT) issued by the Responsible Minerals Initiative (RMI).
Nissha has established our Underlying Philosophy Concerning Corporate Responsibility for
Minerals Procurement, which expresses our stance towards conflict minerals. We sincerely
intend to continue our efforts to become conflict-free in line with these principles.

Underlying Philosophy Concerning Corporate Responsibility for Minerals
Procurement
The Nissha Group is deeply concerned that a portion of the conflict minerals extracted by the
Democratic Republic of the Congo and its neighboring countries are being used as a source offunding for militia that through acts of looting, violence and forced labor are infringing on fundamental
human rights.
In April 2012, Nissha became a signatory to the “Global Compact” as advocated by the United
Nations. We at Nissha Group have fully embraced the Ten Principles stated in the Global Compact asa cornerstone of our Corporate Mission. Based upon our recognition of the importance of theseprinciples and aiming for co-existence with our stakeholders, we are committed to non-use of theseconflict minerals, as raw materials in our products as they result in an infringement of basic humanrights. Accordingly where our company becomes aware of the use of any conflict minerals, we will
immediately implement all measures required regarding that use.

1. Nissha Group is presently implementing ongoing control systems for conflict minerals which we
maintain continuously.
2. Nissha Group will promptly provide to its customers conflict minerals information including its
smelters, etc.
3. Nissha Group in respect of this issue will publish the relevant information in its CSR reports.

We will continue to make sincere efforts for the responsible procurement of related minerals in orderto fulfill our corporate social responsibilities.
Established on March 12, 2014
Revised on January 1, 2018
Junya Suzuki
Chairman of the Board
President and CEO
Nissha Co., Ltd.

*1. ITO film: Film with a transparent conducting coating of indium tin oxide (ITO).
*2. FPC: Flexible printed circuits (FPC) that maintain their electrical properties when flexed.
*3. Conflict free: Not sourced from a conflict zone.

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Initiatives Related to Anti-corruption
The United Nations Global Compact to which Nissha Co., Ltd. is a signatory lists anti-corruption as its 10thprinciple. And in recent years, global society has seen a tightening of controls pursuant to anti-corruption
legislation including the United States’ Foreign Corrupt Practices Act and the United Kingdom’s Bribery Act.
We at Nissha have also seen a rise in demand to follow anti-corruption provisions set forth in the codes ofconduct provided both by our customers and by Responsible Business Alliance (RBA).
The Nissha Group cites prohibition of corrupt practices as an important point of our Guideline of the Corporate
Ethics and Compliance. We formulated Nissha Group Anti-Corruption Guidelines on, and are working topromote the background and purpose to bases in and outside Japan. At overseas bases, particularly in Asia,
we conducted interviews and training about initiatives in the prohibition of corrupt practices. The interviews
turned up no significant issue within the Nissha Group; however, we will continue to keep an eye on certain
regions in which bribery and corruption are rife.
We plan to continue keeping an eye on movements in the global community as well as the situation in the
Nissha Group, and will review the contents of our initiatives as the need arises.

Nissha Group Anti-Corruption Guidelines
The Nissha Group makes clear that all officers and employees are prohibited frompresenting customers, suppliers, and government officials, either directly or indirectly,with gifts or entertainment that may constitute corrupt practice, and observes Japan’s
Unfair Competition Prevention Act, the United States’ Foreign Corrupt Practices Act, theUnited Kingdom’s Bribery Act, and the regulations of other countries and regions
regarding anti-corruption.
1.We neither present to nor accept from customers, suppliers, and government
officials offers of unfair advantage.
2.We neither present to nor accept from customers, suppliers, and government
officials offers with gifts or entertainment that exceed the limit permitted by internal
standards, laws, and regulations.
3.We strive to understand the circumstances of the Nissha Group overall, andperiodically review our initiatives.
4.We respond with sincerity to requests from our customers for cooperation in
investigations, by providing necessary information.

Established on April 1, 2017
Revised on January 1, 2018
Junya Suzuki
Chairman of the Board
President and CEO
Nissha Co., Ltd

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Tax Policy
Nissha Group will compliance with tax laws and regulations in each country and each region with our group tax
policy, in order to fulfill our corporate social responsibilities (CSR).

Nissha Group Tax Policy■ Basic policy
Nissha Group will strive to minimize tax risks, enhance our corporate value by complying with tax laws
and regulations in each country and each region.
Nissha Group will pay close attention to the trends in the international tax framework such as Base
Erosion Profit Shifting (BEPS) project and make properly responses to such changes while aspiring to
be a truly global company.
1. Nissha Group's approach to tax planning
Nissha Group will enter into transactions with a business purpose and a business activity and in case
we approach to tax planning, we will implement it properly and efficiently in compliance with tax laws
and regulations.
Our group will consider taxes as an essential factor in our business planning and make use ofavailable tax incentives within the scope of normal business activities. However, we will not engage intransactions for the primary purpose of tax avoidance and transactions without any actual businessactivities.
2.The level of risk to taxation that Nissha Group is prepared to accept
Nissha Group's tax policy is to minimize tax risks wherever possible when undertaking tax matters.
We will work to identify, evaluate, and manage tax risks in each country and region to reduce suchrisks, and where there is significant uncertainty or complexity in relation to tax risks, we will ask foradvice from third parties.
3.The approach of Nissha Group towards its dealings with Tax authorities in each country and region
Nissha Group believe that we can build and maintain good relationship with tax authorities in eachcountry and region corresponding with them and disclosing necessary information in a sincere andappropriate manner.
Therefore, We will strive to provide necessary information appropriately and cooperatively in responseto requests from tax authorities in each country and region while issuing tax returns properly andpaying appropriate amount of tax according to tax laws and regulations in each country and region.
If tax authorities inform us of tax adjustments, we will immediately take appropriate measures toprevent similar issues happen unless we file a petition of objection against their action orinterpretation.
4.The approach of Nissha Group to risk management and governance arrangements in relation totaxation in each country and region
Nissha Group's tax policy is reviewed and controlled by our group's Chief Financial Officer who is
responsible for our group’s tax strategy and policies, and the status is reported to Board of Directors
on an on-going basis through our group’s Chief Financial Officer.
Where there is significant uncertainty or complexity in relation to application or interpretation of tax
laws, we will take appropriate measures after seeking external advices.
5.UK content
On September 2016, HMRC in the UK put a bill of "Large businesses: publish your tax strategy" into
force.
Nissha Group's tax policy also meets their requirement.

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Consumer Issues
With the aim of providing products and services

that satisfy and meet the needs of our customers,

we make active eﬀorts to improve quality following our Quality Policy.

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Consumer Issues
Responsibility to Our Customers / Quality-related Initiatives
We at Nissha Group strive daily to improve quality, based on our Quality Policy, so that we may provide
products and services that satisfy and meet the needs of our customers.

Quality Policy
Nissha and its subsidiaries are committed to contributing widely to society through customer’s trustand satisfaction of quality, cost, delivery, services and speed.
1. We aim for quality that stands up to the customer’s expectations.
2. We pursue Zero Defects in our products.
3. We provide products which satisfy customer requirements and conform to relevant legislation
and regulations.
4. We establish and maintain a quality management system, and continually improve its
effectiveness.
April 1, 2011
Junya Suzuki
Chairman of the Board
President and CEO
Nissha Co., Ltd.

Quality Management System (QMS)
We operate a quality management system that meets the requirements of international
standard ISO 9001:2008, and promote improvements in quality under our comprehensive
quality assurance initiative Nissha Group Total Quality Management (NTQM). NTQM also
complies with IATF 16949, a quality management system for the automotive industry. The Nitec
Precision and Technologies, Inc. (NPT) Kyoto Factory, which manufactures touch sensor
modules, was one of several bases which obtained IATF 16949 certification.
Overseas subsidiaries that handle medical devices have obtained ISO13485 certification, a
quality management system specialized to the medical devices industry. In Japan, Nissha Co.,
Ltd. obtained a Class 2 medical devices marketing license and manufacturing license, and amanufacturing license, and Nissha FIS Inc. became a registered medical device manufacturer. In
addition, we operate a quality management system that complies with ISO13485 (which we
expect to obtain in 2019), and are making steady efforts to build a quality assurance structurethat fits our new business segments.

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Quality Assurance Structure

Nissha Group Total Quality Management (NTQM)
Our NTQM initiative seeks to build and improve a mechanism for keeping promises with our customers as wellas complying with lows and regulations. NTQM clarifies the procedures followed at each business unit, suchas design reviews (DR), reliability tests, and supplier management. We believe that improving the accuracy ofthese procedures will enable us to provide products and services with even higher levels of quality and safety.

Five Musts for the Systematization of WorkWe set forth Five Musts for the Systemization of Work, a concept we are working to communicate companywide through training and our internal newsletter.

Five Musts for the Systematization of Work
1. Standardize work.
Standardization clarifies the required input, as well as the work you have to perform.
2. First of all, check the input.
Begin your work by checking for any fault in input.
3. Incorporate the customer viewpoint into the output.
Not only customers for the Company, but your immediate customers, internal and external. In yourwork, you must aim at an output that meets QCDS from all your customers.
4. Reinforce the system using human factors.
Human factors should be used to cover those areas of work which cannot be covered by the system
alone. Your communication and teamwork will reinforce the system.
5. Make continuous efforts to improve the system.
The system must be established and implemented continuously. Continuous implementation results infurther improvement of the system, as well as that of the quality of our work and the Company.

*QCDS: Initial of Quality, Cost, Delivery, Service, the index for product evaluation.

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Quality Slogan

Taking action with a strong awareness of the customer is essential to quality improvement. All Nissha Group
employees are required to perform their daily duties with a sense of responsibility, and create quality in theeyes of the customer.
To this end, in April 2017 we established the quality slogan given above. The Japanese have a maxim that
reads, “the next process is the customer.” The “me” in the slogan says each employee should take on aleading role in delivering quality to the customer. And this “customer” may be external customers of the Nissha
Group or internal workers in the production process following one’s own. The slogan is communicatedthoroughly across Nissha Group companies both in and outside Japan, along with a sense of “responsibility to
all customers, internal or external.”

Company-wide Optimization
We at Nissha promote the recognition of ties between one’s own department and others’, and even ties
between work processes across the whole company, in terms of “input” and “output.” Hence we stress theimportance of links between internal processes and the orderly division of roles. By having all employees
stand in the customers’ shoes, we aim to break free of department-based optimization and strive for companywide optimization. We believe that basic concepts like this and the sorting out of functions will build Nissha
Group’s foundation as a manufacturing company.

Continuous Improvement
The accumulation of bits of insight and ingenuity from all employees is the source of great
improvements in work processes. This approach forms the foundation of Nissha Group’s smallgroup activities and improvement proposal system. We recognize these as importantmechanisms to work on and develop across the Nissha Group. Moreover, based on the idea thatthe quality of people plus the quality of work equals the quality of the company, and employees
are our most important management resource, we are actively engaging in the development of
human resources, such as through the continuous planning and implementation of a range ofeducation. Through these activities, we are implanting the concepts of (1) always interweaving
ingenuity into your work, (2) judging based on data (facts), and (3) using the PDCA (Plan, Do,
Check, Act) Cycle to continuously improve, so that we can further improve our customers’satisfaction.

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1) General quality training (for first-, second-, and third-year employees, new managerial
staff, managers, and overseas transferees)
2) Management system training (ISO 9001:2008, ISO/TS 16949:2009, and core tools)
Training

3) Quality control training (QC Exam levels 3 and 4)4) Quality methodology training (statistical methods, experimental design, Taguchi
methods, etc.)
5) Other training (equipment maintenance, etc.)

Practical

1) Support for small-group activities

education2) Nissha Academy (Monozukuri School etc.)

Information
sharing /reciprocal

Company-wide Presentation Meeting of Small-group Activities

learning

Quality and Safety of Products
We at Nissha provide our customers with explicit information on product usage and safety indocuments such as delivery specifications. In the event a serious accident occurs as a result offlaws in our products and services, which may violate laws or regulations, we establish a CPL*
committee and strive for a quick resolution. We are also prepared to report the incident togovernment agencies in accordance with laws and to notify our customers as soon as possible.
We communicate to our employees the importance of ensuring the quality and safety of
products through corporate ethics and compliance training.
Up to fiscal year ended December 2018, the number of instances in which we organized a CPL
committee or violated laws was zero, resulting in a fine of 0 yen. We will strive to maintain our
zero violation record in the future.
*CPL: Combination of contractual liability (CL) with product liability (PL)Management of Chemical Substances in Products
We at Nissha have in place two sets of criteria for managing chemical substances: the Nissha
Control Criteria for Chemical Substances, covering Nissha products and packaging materials,
and the Nissha Control Criteria for Chemical Substances in Purchased Products, covering
procured items such as primary and secondary raw materials. Both reflect the laws andregulations of relevant countries and regions, including the Restriction of Hazardous Substances(RoHS) directive and the Registration, Evaluation, Authorization, and Restriction of Chemicals(REACH) regulation, as well as the substance-related criteria of our customers. Whenever ourcustomers’ criteria change, we identify the differences from our criteria and work to conform to
our customers’ request. Apart from this, we review our criteria once a year, making revisions asnecessary, and organize briefing sessions for related divisions and our suppliers.
When selecting new materials in the design and development stages, we conduct design
reviews related to materials and assess compliance with our criteria. Our factories are building amechanism for accepting materials that meet our criteria, ensuring traceability, identifying andseparating noncompliant substances, and responding to issues swiftly such as through reportingin efforts to prevent misuse and contamination.
The Corporate Environmental and Safety Management of Corporate General Affairs functions as
the secretariat and works with the product development, quality assurance, and procurement
divisions of each business unit to promote management of the chemical substances used in
products. It also carries out internal environmental audits on a regular basis to inspect the
management status. This internal structure implements strict control of chemical substancesfrom the design stage to the final product, and responds to changes in the needs of society andthe demands of our customers.

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Along with Local Communities
With the aim of being a company that is needed by society,we promote active communication with local communities and conduct activities
in line with our Basic Social Contribution Policy.

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Along with Local Communities
Promoting Communication with Local Communities
Nissha Group’s brand statement "Empowering Your Vision" expresses the relationship of co-existence
between Nissha and our stakeholders. Both we and our customers, shareholders, employees, suppliers, andsociety have visions, and we mutually affect each other toward realizing it. Through various forms ofcommunication, we aim to be a corporate group that is trusted by local communities and needed by society.
*Nissha Philosophy: Our Mission and Brand Statement can be viewed here.

We promote communication in various ways such as by disclosing information about Nissha Group companies
and business activities widely on our website, and by enhancing mutual understanding between production
bases and local communities through briefing sessions on factory activities, factory tours, and social events.
Our efforts also extend to cleanup activities near production sites, environmental workshops by Nissha Group
employees at local elementary schools and nursery schools, and next generation support in collaboration with
NPOs, all with the aim of realizing the “Co-existence” cited in our corporate mission.

Basic Social Contribution Policy
We at Nissha Group set forth our approach to social contribution in the Basic Social Contribution Policy. We
devote our management resources to four fields we recognize as important: environmental protection, next
generation support, promotion and support of arts and culture, and human support activities.

Basic Social Contribution Policy
Nissha and Nissha People contribute to society under the spirit of global citizenship byusing their management resources effectively toward the achievement of our Mission.
Main fields of contribution: "environmental protection", "next generation support","promotion and support of arts and culture", and "human support activities".

Initiatives for Next Generation Support
Presentation of Nissha Award at 13rd Supreme Moving Toy Contest in Kyoto
Nissha Co., Ltd. is a sponsor of the Children’s Monodzukuri Project run by the Kyoto City Boardof Education. In a show of support for its basic ideas, as a manufacturing (monodzukuri)
company that aims for a sustainable society, we host a corporate booth at the Monodzukuri Hallof Fame in the Kyoto City Inquiry Learning Center for Career Education, and provide teachingmaterials and programs for elementary school pupils.
As part of these activities, Nissha supported the 13th Supreme Moving Toy Contest in Kyoto(hereafter, “Toy Contest”) held on January 20, 2019, at Kyoto Kogakuin Senior High School byproviding teaching materials, and exhibited at a corporate booth. Some 500 elementary school
pupils from a hundred schools, mainly from Kyoto, took part.

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The Toy Contest is a competition, sponsored by the Kyoto Children’s Monodzukuri Project
Promotion Committee and Kyoto City Board of Education, in which 3rd to 6th grade elementary
school pupils in Kyoto are participating to make their own rubber-powered toy and join thecompetition. By working on "making moving toys", it aims to cultivate creativity, independence
and sociality by raising familiarity with manufacturing by "coexistence of tradition andinnovation", which is a characteristic of Kyoto. We provided a racing car assembly kit andoriginal stickers for the beginners’ category targeting third and fourth graders, and presented
the Nissha Award to the top racers.
At our corporate booth, we set up a corner to answer the quiz on the technology hidden in our
products through a tablet under the theme of “Find the 5 Mysteries!”. Many elementary school
students visited the booth and enjoyed.

“Let’s Make a Safari Park” Workshop at Kyoto Prefectural Tanba Special-Needs
SchoolNissha Co., Ltd. holds workshops in collaboration with the NPO Kids Meet Artists (Director
Haruka Idegami). On December 7, 2018, we held the “Let’s Create a Safari Park” workshop at
Kyoto Prefectural Tanba Special-Needs School (Nantan City, Kyoto), which was attended by 15
pupils from the middle school class.

★

The workshop invited artist duo HANA JOSS, based in Osaka Prefecture, to introduce
participants about the traditional Indonesian music form gamelan and shadow puppet theaterwayang. The junior high school students then tried their hand at making puppets around thetheme of a safari park. A lion, a snake, a ghost, and so on—having created unique characters,★

the students put on a wayang show to the accompaniment of gamelan by HANA JOSS, taking
in a fun moment of fusion between musical and performing arts.

For this session, Nissha provided disposable electrocardiogram (ECG) electrodes as a material
for making puppets. The product of the Medical Technologies business segment designed for
one-time use offered students the opportunity to explore a medical device through the filter of
their own worldview.

Environmental Workshops at Local Elementary Schools
Employees at the Nissha Group in Japan, especially at production bases, visit local elementary
schools to conduct environmental workshops. Participants in this initiative, which started in thefiscal year ended March 2008, number about 4,600 children at 94 schools to date.
The Nitec Precision and Technologies Co., Ltd. Kaga Factory has carried this out in its home cityof Kaga, Ishikawa Prefecture, every year since 2008. Along with learning about the environment
such as how global warming works or how to separate garbage, we teach them about how touch
panels, which are related to our business, work, aiming to spark an interest in “monozukuri,” ormanufacturing and local companies. In the fiscal year ended December 2018, employees visited
Kaga Municipal Bungyo Elementary School and Kohoku Elementary School. Employees have now
visited all elementary schools in Kaga City, a total of 36 schools.

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Sponsorship of Museum Exhibitions and Art Events
As part of our efforts in “promotion and support of arts and culture” cited in our Basic Social Contribution
Policy, we cosponsor museum exhibitions and art events held throughout Japan.
[FY2019]
Schedule

Exhibition / event
Unrivaled Calligraphy:
Yan Zhenqing and His Legacy

January16 to February24, 2019

Venue
Heiseikan, Tokyo National
Museum (Ueno Park)

Special Exhibition "National
Treasures of To-ji Temple:
Kukai and the Sculpture

March 26 to June 2, 2019

Heiseikan, Tokyo National
Museum (Ueno Park)

Mandala"

MOOMIN:

April 9 to June 16, 2019

Mori Arts Center Gallery

June 29 to September 1, 2019

Oita Prefectural Art Museum

The art and The story*The schedule of other travelingexhibitions are undecided.

KYOTOGRAPHIE International
Photography Festival 2019
Matsukata Collection

April 13 to May 12, 2019

June 11 to September 23, 2019

21st Century Museum ofContemporary Art, Kanazawa
and others
the Museum of Kyoto etc.
The National Museum Art ofWestern Art[FY2018]
Schedule

Exhibition / event

Venue

The 6th KYOTOGRAPHIE
International Photography

April 13 to May 13, 2018

the Museum of Kyoto etc.

April 21 to June 17, 2018

Mitsui Memorial Museum

Festival
200 Years Special Exhibition
After Death, Daimyo and amaster of tea ceremony,Matsudaira Fumai -Lord’s
Aesthetic eye-

September 21 to November 4,
2018April 28 to June 24, 2018
TV-U Fukushima, Inc. Opening
35th anniversary "Masterpieces
of POLA MUSEUM OF ART from

July 6 to August 26, 2018

SHIMANE ART MUSEUM

Fukushima Prefectural Museumof Art
OKAYAMA PREFECTURALMUSEUM OF ART

Monet and Renoir to Picasso"
September 4 to November 18,

The Museum of Modern Art,

2018

IbarakiNHK Historical Drama “Segodon”
Special Exhibition

THE UNIVERSITY ART
May 26 to July 16, 2018

MUSEUM, TOKYO UNIVERSITY
OF THE ARTS

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July 28 to September 17, 2018
September 27 to November 18,
2018

Daigoji Temple: A Shingon
Esoteric Buddhist Universe in
Kyoto

Reimeikan, Kagoshima
Prefectural Center for Historical
Material

September 19 to November 11,
2018
January 29 to March 24, 2019
October 5, 2018 to February 3,

Making the Difference: Vermeer

Osaka Museum of History

2019

Suntory Museum of Art
KYUSHU NATIONAL MUSEUM
The Ueno Royal Museum

and Dutch Art
February 16 to May 12, 2019

Osaka City Museum of Fine Arts

Rubens and the Birth of theOctober 16, 2018 to January

The National Museum of

Baroque

20,2019

Western Art[FY2017]
Schedule

Exhibition / event
Kyoto National Museum 120th
Anniversary Commemorative

April 11 to May 21, 2017

Special Exhibition "Kaiho Yusho"
Chanoyu - The Arts of Tea
Ceremony, The Essence ofApril 11 to June 4, 2017

Japan

Kyoto National Museum , Heisei
Chishinkan Wing

Tokyo National Museum
Heiseikan
TORAYA Kyoto Gallery, Kyoto

The 5th KYOTOGRAPHIE
International Photography

Venue

April 15 to May 14, 2017

Festival

Municipal Museum of Art
Annex,etc.

Alberto Giacometti

June 14 to September 4, 2017

The National Art Center, Tokyo

July 4 to August 6, 2017

Edo-Tokyo Museum

July 15 to September 3, 2017

Mitsui Memorial Museum2017 NHK Historical Drama“Naotora: The Lady warload”“Sengoku! from Ii Naotora to
Naomasa” Special Exhibition
Wonderland of Buddhist Hell
Scenes
Kyoto National Museum 120th
Anniversary Commemorative
Special Exhibition

October 3 to November 26, 2017

"National Treasures:

Kyoto National Museum , Heisei
Chishinkan Wing

Masterpieces of Japan”

Membership in Community Organizations
We participate in various community activities with the aim of being a company that is needed by society.

Organization / host
Kyoto Chamber of Commerceand Industry
Kyoto Employers’ Association
Kyoto Association of Corporate
Executives
Kyoto Industrial Association

Position / membership status

Company registered

Permanent member

Nissha Co., Ltd.

Executive director

Nissha Co., Ltd.

Special secretary

Nissha Co., Ltd.

Director

Nissha Co., Ltd.

121

Sustainability Report 2019

The Japan Kanji Aptitude Testing

Director

Nissha Co., Ltd.

Foundation
Kyoto Institute of Technology
Ritsumeikan University Business
SchoolNissha Foundation for Printing
Culture and Technology

Joint management council
memberNissha Co., Ltd.

Advisory board member

Nissha Co., Ltd.

Representative director

Nissha Co., Ltd.

122

Sustainability Report 2019

Editorial Policy
The Sustainability Report is published annually to serve as a communication tool between the
Nissha Group and our stakeholders. Sustainability Report 2019 covers our initiatives andperformance in the fiscal year ended December 2018 (January–December 2018), following theeditorial policy given below.

Guidelines Used as Reference

・The core option of the GRI Sustainability Reporting Standards
・・Environmental Reporting Guidelines 2018, issued by the Japanese Ministry of the Environment
Period Covered
The information contained in this report, in principle, covers the period from January 2018 to
December 2018. Some reporting is also done regarding activities carried out after January 2019.

Publication Dates
Current issue: May 2019 for Japanese, July 2019 for English
Next issue: May 2020 for Japanese, July 2020 for English (planned)
Last issue: March 2018

Scope of Reporting
The information and data contained in this report focus mainly on activities conducted by the Nissha Group.
Where information for the entire group is not available, the scope of reporting is indicated separately. “Nissha”
refers to “Nissha Co., Ltd.” alone. “Nissha Group” refer to Nissha Co., Ltd. and its group companies. “Global
Headquarters” refers to the global headquarters and associated companies located within the global
headquarters premises. The major affiliated companies of each Nissha Group business are given below.
Significant activities conducted by companies in our supply chain are also included in this report.

Major Affiliated Companies and Businesses
Companies

Major Businesses

Nitec Industries, Inc.

Industrial Materials

Nitec Precision and Technologies, Inc.

DevicesNissha FIS, Inc.

DevicesNissha SiMICS, Inc.

DevicesNissha Printing Communications, Inc.

Information and Communication

Nissha F8, Inc.

Information and Communication

M crossing Co., Ltd.

OthersNissha Business Service, Inc.

Others123

Sustainability Report 2019

Nissha USA, Inc.

Industrial Materials, Devices

Eimo Technologies, Inc.

Industrial Materials

Nissha Si-Cal Technologies, Inc.

Industrial Materials

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

Industrial Materials

Graphic Controls Acquisition Corp.

Medical Technologies

Lead-Lok, Inc.

Medical Technologies

CEA Medical Manufacturing Inc.

Medical Technologies

Sequel Special Products, LLC

Medical Technologies

Nissha Medical Technologies Ltd.

Medical Technologies

Integral Process SAS

Medical Technologies

Tyrolmed GmbH

Medical Technologies

CEA Global Dominicana, S.R.L.

Medical Technologies

Nissha Europe GmbH

Industrial Materials, Devices

Nissha Schuster Kunststofftechnik

Industrial Materials

Nissha Back Stickers

Industrial Materials

AR Metallizing N.V.

Industrial Materials

AR Metallizing S.r.l.

Industrial Materials

AR Metallizing Ltd.

Industrial Materials

AR Metallizing Produtos Metalizados Ltda.

Industrial Materials

Nissha Korea, Inc.

Industrial Materials, Devices

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

Industrial Materials

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

Industrial Materials, Devices

Guangzhou Nissha High Precision Plastics Co., Ltd.

Industrial Materials

Hong Kong Nissha Co., Ltd.

Industrial Materials

Nissha Industrial and Trading Malaysia Sdn. Bhd.

Industrial Materials

Nissha Precision Technologies Malaysia Sdn. Bhd.

Industrial Materials

Nissha Vietnam Co., Ltd.

Devices

Variations in Scope of Reporting

Date

Contents

Impact on scope of reporting

Nissha Co., Ltd. acquired assets ofHeart Sync, Inc., a U.S.-based medical
May 2018

devices manufacturer specializing

The content of the 2019 Sustainability

in defibrillation electrodes*1, through its

Report has not been affected.

consolidated subsidiary, Graphic
Controls Group.

124

Sustainability Report 2019

Date

Contents

Impact on scope of reporting

Nissha Co., Ltd. acquires Sequel Special
Products, LLC, engaging in contract
manufacturing of medical devices, andJune 2018its affiliated company RSS Design, LLC,

The content of the 2019 Sustainability

engaging in the development andReport has not been affected.

design of medical devices, through its
consolidated subsidiary, Graphic
Controls Group.

*1. Defibrillation electrode: A conductor that transmits a controlled electric shock from the defibrillator to the patient forrecovery of normal heart rate. It also functions as an electrocardiogram electrode to determine whether to deliver an electric
shock

Publishing Division and Contact for Inquiries
Nissha Co., Ltd.
CSR, Corporate Communications
Tel: +81-(0)75-811-8111
Fax: +81-(0)75-823-5344
Web inquiry: https://www.nissha.com/english/inquiry.html

125

Sustainability Report 2019

GRI Standards Content Index
Nissha Group Sustainability Report 2019 conforms to the core option of the GRI Sustainability
Reporting Standards. The comparison table of GRI Standards and Nissha reporting are given
below.

Location in
Sustainability Report

Disclosure

GRI Content Index

Pages onPDF

General Disclosures
1. Organizational profile：GeneralGRI 102

Disclosures 2016

102-1

Name of theorganizationa. Name of the organization.

Company Outline

a. A description of the organization’s activities.
102-2

Activities, brands,

b. Primary brands, products, and services,

products, and services

including an explanation of any products or

Nissha's Businessservices that are banned in certain markets.
102-3

Location of
headquarters

a. Location of the organization’s headquarters.

Company Outline

a. Number of countries where the organization
102-4

Location of operations

operates, and the names of countries where it has
significant operations and/or that are relevant toNissha Groupthe topics covered in the report.
102-5

Ownership and legal
form

a. Nature of ownership and legal form.

Company Outline

a. Markets served, including:i. geographic locations where products and102-6

Markets served

services are offered;

Nissha's Businessii. sectors served;
iii. types of customers and beneficiaries.
a. Scale of the organization, including:i. total number of employees;
ii. total number of operations;
102-7

Scale of theorganizationiii. net sales (for private sector organizations) or

Company Outline

net revenues (for public sector organizations);
iv. total capitalization (for private sector

Nissha's Businessorganizations) broken down in terms of debt andequity;v. quantity of products or services provided.
102-8

＞

Information ona. Total number of employees by employment

Respect for Diversity

employees and othercontract (permanent and temporary), by gender.

Composition of "Nissha People"

workersb. Total number of employees by employment

50-52

contract (permanent and temporary), by region.
c. Total number of employees by employment type(full-time and part-time), by gender.
d. Whether a significant portion of theorganization’s activities are performed by workers
who are not employees. If applicable, a

126

Sustainability Report 2019

description of the nature and scale of work
performed by workers who are not employees.
e. Any significant variations in the numbers
reported in Disclosures 102-8-a, 102-8-b, and102-8-c(such as seasonal variations in the tourism oragricultural industries).
f. An explanation of how the data have been
compiled, including any assumptions made.
a. A description of the organization’s supply chain,
102-9

Supply chain

including its main elements as they relate to theorganization’s activities, primary brands, products,
and services.

Partnership with Our Suppliers＞Expansion of Our Supply

106

Editorial Policy

123-125

Chain

a. Significant changes to the organization’s size,
structure, ownership, or supply chain, including:i. Changes in the location of, or changes in,operations, including facility openings, closings,
102-10Significant changes toand expansions;the organization and its

ii. Changes in the share capital structure and othersupply chain

capital formation, maintenance, and alteration
operations (for private sector organizations);iii. Changes in the location of suppliers, thestructure of the supply chain, or relationships with
suppliers, including selection and termination.

＞

Corporate Governance Risk
Management102-11

Precautionary Principle

a. Whether and how the organization applies theor approach

Precautionary Principle or approach.

34-35

＞

The Environment

Environmental Policy and＞Management Structures

70-71

Continuous Improvements inthe Environmental Management
System (EMS)a. A list of externally-developed economic,
102-12102-13External initiatives

Membership ofassociations

2

CEO Message

environmental and social charters, principles, or＞other initiatives to which the organization

Nissha Group’s Sustainability

subscribes, or which it endorses.

United Nations Global Compact

a. A list of the main memberships of industry or

Along with Local Communities

other associations, and national or international
advocacy organizations.

13＞Membership in Community

121-122

CEO Message

2

CEO Message

2

Organizations

2. Strategy
a. A statement from the most senior decision102-14

Statement from seniordecision-maker

maker of the organization (such as CEO, chair, or
equivalent senior position) about the relevance ofsustainability to the organization and its strategy
for addressing sustainability.

102-15Key impacts, risks, anda. A description of key impacts, risks, andopportunities

opportunities.

Nissha Group’s Sustainability

a. A description of the organization’s values,

Nissha Group’s Sustainability

principles, standards, and norms of behavior.

Approach to CSR
Human Rights Hotline

＞

4-8

＞

3

Materiality in risk management

3. Ethics and integrity
Values, principles,102-16standards, and norms of
behavior

102-17

Mechanisms for advice

a. A description of internal and externaland concerns aboutmechanisms for:ethicsi. seeking advice about ethical and lawful

＞

42-43

behavior, and organizational integrity;

127

Sustainability Report 2019

ii. reporting concerns about unethical or unlawful
behavior, and organizational integrity.
4. Governancea. Governance structure of the organization,
including committees of the highest governance102-18Governance structure＞

Corporate Governance
Overview of Corporate

body.
b. Committees responsible for decision-making on

Nissha Group’s Sustainability

economic, environmental, and social topics.

CSR Managementa. Process for delegating authority for economic,
102-19Delegating authority

25-31

Governance

＞

3-4

＞

3-4

＞

3-4

environmental, and social topics from the highest

Nissha Group’s Sustainability

governance body to senior executives and other

CSR Management

employees.
Executive-level
responsibility for
102-20economic,
environmental, andsocial topics

a. Whether the organization has appointed an
executive-level position or positions withresponsibility for economic, environmental, andNissha Group’s Sustainabilitysocial topics.

CSR Managementb. Whether post holders report directly to thehighest governance body.

＞

Corporate Governance
Overview of Corporatea. Processes for consultation between

102-21

25-31

Governance＞Consulting stakeholders

stakeholders and the highest governance body on

on economic,

economic, environmental, and social topics.

environmental, andb. If consultation is delegated, describe to whom itsocial topics

is delegated and how the resulting feedback is

Human Rights Freedom ofprovided to the highest governance body.

Association and Collective

Nissha Group’s Sustainability
CSR Management

3-4＞

Bargaining, Relationship with

44-45

Labor Union
a. Composition of the highest governance bodyand its committees by:i. executive or non-executive;ii. independence;iii. tenure on the governance body;
Composition of the102-22highest governancebody and its committees

iv. number of each individual’s other significant
positions and commitments, and the nature of thecommitments;＞

Corporate Governance
Overview of Corporate＞

Respect for Diversity

v. gender;
vi. membership of under-represented social

25-31

Governance

Composition of "Nissha People"

50-52

groups;vii. competencies relating to economic,
environmental, and social topics;viii. stakeholder representation.
a. Whether the chair of the highest governancebody is also an executive officer in the102-23Chair of the highest
governance bodyorganization.
b. If the chair is also an executive officer, describe
his or her function within the organization’s
management and the reasons for this＞Corporate Governance
Overview of Corporate
Governanceof Directors＞Role of the Board

27

arrangement.
102-24＞

Nominating anda. Nomination and selection processes for the

Corporate Governanceselecting the highest

highest governance body and its committees.

Overview of Corporate

governance bodyb. Criteria used for nominating and selecting

Governance

25-31

highest governance body members, including
whether and how:i. stakeholders (including shareholders) are
involved;
ii. diversity is considered;iii. independence is considered;128

Sustainability Report 2019

iv. expertise and experience relating to economic,
environmental, and social topics are considered.
a. Processes for the highest governance body toensure conflicts of interest are avoided andmanaged.

102-25

Conflicts of interest＞

b. Whether conflicts of interest are disclosed to

Corporate Governancestakeholders, including, as a minimum:

Overview of Corporate

i. Cross-board membership;

Governanceii. Cross-shareholding with suppliers and otherof Directors＞Role of the Board

27

stakeholders;iii. Existence of controlling shareholder;iv. Related party disclosures.
a. Highest governance body’s and senior

102-26

Approach to CSR

3

＞

3-4

Role of highest

executives’ roles in the development, approval,

governance body inand updating of the organization’s purpose, value

Nissha Group’s Sustainability

setting purpose, values,

or mission statements, strategies, policies, andCSR Management

and strategy

goals related to economic, environmental, andsocial topics.

102-27＞

Nissha Group’s Sustainability＞

Corporate Governance

32-34

Internal Control System

Collective knowledge ofa. Measures taken to develop and enhance thehighest governancehighest governance body’s collective knowledge

bodyof economic, environmental, and social topics.
a. Processes for evaluating the highest
governance body’s performance with respect togovernance of economic, environmental, andsocial topics.
b. Whether such evaluation is independent or not,102-28

Evaluating the highest

and its frequency.

governance body’sc. Whether such evaluation is a self-assessment.

performanced. Actions taken in response to evaluation of thehighest governance body’s performance withrespect to governance of economic,
environmental, and social topics, including, as aminimum, changes in membership andorganizational practice.
a. Highest governance body’s role in identifying
and managing economic, environmental, andsocial topics and their impacts, risks, and102-29

＞

3

＞

3-4

Nissha Group’s Sustainability
Approach to CSR

Identifying andopportunities – including its role in the

managing economic,

implementation of due diligence processes.

Nissha Group’s Sustainability

environmental, andb. Whether stakeholder consultation is used to

CSR Managementsocial impacts

support the highest governance body’s
identification and management of economic,
environmental, and social topics and their＞

Corporate Governance

32-34

Internal Control System

impacts, risks, and opportunities.

＞

3

＞

3-4

Nissha Group’s Sustainability
a. Highest governance body’s role in reviewing the102-30Approach to CSR

Effectiveness of risk

effectiveness of the organization’s risk

Nissha Group’s Sustainability

management processes

management processes for economic,

CSR Management

environmental, and social topics.

＞

Corporate Governance

32-34

Internal Control System

＞

3

＞

3-4

Nissha Group’s Sustainability
Approach to CSR
102-31

Review of economic,

a. Frequency of the highest governance body’s

environmental, andreview of economic, environmental, and socialsocial topics

topics and their impacts, risks, and opportunities.

Nissha Group’s Sustainability
CSR Management＞

Corporate Governance

32-34

Internal Control System
102-32Highest governancea. The highest committee or position that formally

129＞

Nissha Group’s Sustainability

34

Sustainability Report 2019

body’s role inreviews and approves the organization’ssustainability reporting

sustainability report and ensures that all material

3-4

CSR Management

topics are covered.

＞

3

＞

3-4

Nissha Group’s Sustainability
Approach to CSR
102-33

Communicating criticala. Process for communicating critical concerns to

Nissha Group’s Sustainability

concerns

the highest governance body.

CSR Management＞

Corporate Governance

32-34

Internal Control System
a. Total number and nature of critical concerns
102-34Nature and total numberof critical concernsthat were communicated to the highest
governance body.
b. Mechanism(s) used to address and resolve＞

Nissha Group’s Sustainability
CSR Management

3-4

critical concerns.
a. Remuneration policies for the highest
governance body and senior executives for thefollowing types of remuneration:i. Fixed pay and variable pay, including
performance-based pay, equity-based pay,bonuses, and deferred or vested shares;
ii. Sign-on bonuses or recruitment incentive
payments;
102-35

Remuneration policies

iii. Termination payments;
iv. Clawbacks;
v. Retirement benefits, including the difference
between benefit schemes and contribution rates
for the highest governance body, senior
executives, and all other employees.

＞

Corporate Governance
Overview of Corporate
Governance＞Nomination andRemuneration Committee,

28-30

Policy on Determining
Remuneration of Directors,
Members of the Board andAudit and Supervisory Board
Membersb. How performance criteria in the remuneration
policies relate to the highest governance body’s
and senior executives’ objectives for economic,
environmental, and social topics.

＞

Corporate Governancea. Process for determining remuneration.
b. Whether remuneration consultants are involved
102-36

Process for determining

in determining remuneration and whether they are

remuneration

independent of management.
c. Any other relationships that the remuneration
consultants have with the organization.

Overview of Corporate
Governance＞Nomination andRemuneration Committee,
Policy on Determining

28-30

Remuneration of Directors,
Members of the Board andAudit and Supervisory Board
Members

Stakeholders’102-37

involvement inremunerationa. How stakeholders’ views are sought and taken
into account regarding remuneration.
b. If applicable, the results of votes on
remuneration policies and proposals.
a. Ratio of the annual total compensation for theorganization’s highest-paid individual in each102-38Annual total

country of significant operations to the mediancompensation ratio

annual total compensation for all employees(excluding the highest-paid individual) in the same
country.
a. Ratio of the percentage increase in annual total

Percentage increase in
102-39annual totalcompensation ratio

compensation for the organization’s highest-paid
individual in each country of significant operations
to the median percentage increase in annual totalcompensation for all employees (excluding thehighest-paid individual) in the same country.

5. Stakeholder engagement

130

Sustainability Report 2019

102-40

102-41

102-42＞

List of stakeholder

a. A list of stakeholder groups engaged by the

Nissha Group’s Sustainability

groupsorganization.

Nissha Group’s Stakeholders

Collective bargaining

a. Percentage of total employees covered by

Human Rights Relationshipagreements

collective bargaining agreements.

with Labor Union

Identifying and selectinga. The basis for identifying and selecting

Nissha Group’s Sustainability

stakeholders

stakeholders with whom to engage.

Nissha Group’s Stakeholders

＞

9-12

44-45

＞

9-12

＞

9-12

＞

9-12

a. The organization’s approach to stakeholder
engagement, including frequency of engagement102-43

Approach to stakeholder

by type and by stakeholder group, and an

Nissha Group’s Sustainability

engagement

indication of whether any of the engagement was

Nissha Group’s Stakeholders

undertaken specifically as part of the report
preparation process.

Nissha Group’s Sustainability
a. Key topics and concerns that have been raised
through stakeholder engagement, including:
102-44

Key topics and concerns
raisedi. how the organization has responded to those
key topics and concerns, including through its
reporting;ii. the stakeholder groups that raised each of the
key topics and concerns.

Nissha Group’s Stakeholders

Partnership with Our Suppliers＞CSR Supplier Audits
Human Rights＞Building and106-108

System, Freedom of

42-44

Operation of a Management
Association and Collective
Bargaining

6. Reporting practicea. A list of all entities included in the organization’s
consolidated financial statements or equivalent
102-45＞

Editorial Policy Scope of

Entities included in the

documents.

consolidated financial

b. Whether any entity included in theReportingstatements

organization’s consolidated financial statements or

Nissha Group123

equivalent documents is not covered by thereport.
a. An explanation of the process for defining the102-46

Defining report content
and topic Boundaries

report content and the topic Boundaries.
b. An explanation of how the organization has
implemented the Reporting Principles for defining

＞

4-8

＞

4-8

Nissha Group’s Sustainability

Materiality in risk management

report content.
102-47102-48102-49102-50102-51

102-52

List of material topics

Restatements of
information

Changes in reporting

Materiality in risk management

a. The effect of any restatements of information
given in previous reports, and the reasons forsuch restatements.

＞＞Variations in Scopea. Significant changes from previous reporting

Editorial Policy Period

periods in the list of material topics and topic

CoveredBoundaries.

of Reporting

123

＞

123

＞

123

Date of most recent

a. If applicable, the date of the most recent

Editorial Policy Period

reportprevious report.

CoveredReporting cycle

a. Reporting cycle.

questions regarding thea. The contact point for questions regarding thereport or its contents.

Claims of reporting ina. The claim made by the organization, if it has

accordance with the

prepared a report in accordance with the GRI

131

Covered

Editorial Policy Period
Covered124-125＞

Editorial Policy Period

a. Reporting period for the information provided.

report102-54

Nissha Group’s Sustainability

process for defining report content.

Reporting periodContact point for
102-53a. A list of the material topics identified in the＞

Editorial Policy Publishing
Division and Contact for

125

Inquiries
GRI Content Index

126-166

Sustainability Report 2019

GRI Standards

Standards, either:

Editorial Policy

123-125i. ‘This report has been prepared in accordancewith the GRI Standards: Core option’;ii. ‘This report has been prepared in accordancewith the GRI Standards: Comprehensive option’.
a. The GRI content index, which specifies each of
the GRI Standards used and lists all disclosures
included in the report.
b. For each disclosure, the content index shall
include:i. the number of the disclosure (for disclosures102-55

GRI content index

covered by the GRI Standards);

GRI Content Index

126-166

ii. the page number(s) or URL(s) where theinformation can be found, either within the reportor in other published materials;
iii. if applicable, and where permitted, thereason(s) for omission when a required disclosure
cannot be made.
a. A description of the organization’s policy andcurrent practice with regard to seeking external
assurance for the report.
b. If the report has been externally assured:i. A reference to the external assurance report,
statements, or opinions. If not included in theassurance report accompanying the sustainability
report, a description of what has and what has not
102-56External assurance

been assured and on what basis, including theassurance standards used, the level of assurance
obtained, and any limitations of the assurance
process;ii. The relationship between the organization andthe assurance provider;iii. Whether and how the highest governance bodyor senior executives are involved in seeking
external assurance for the organization’ssustainability report.

Material topics
Economic
Economic Performance：

GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

Explanation of theii. the organization’s involvement with the impacts.

material topic and its

For example, whether the organization has

Boundarycaused or contributed to the impacts, or is directly
linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.

103-2

The managementa. An explanation of how the organization

approach and its

manages the topic.

components

b. A statement of the purpose of the management
approach.
c. A description of the following, if the
management approach includes that component:i. Policies
ii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources

132

Sustainability Report 2019vi. Grievance mechanismsvii. Specific actions, such as processes, projects,
programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness
103-3

Evaluation of theof the management approach;management approachii. the results of the evaluation of the management
approach;iii. any related adjustments to the management
approach.

GRI 201：

a. Direct economic value generated andEconomic

distributed (EVG&D) on an accruals basis,

Performance 2016

including the basic components for theorganization’s global operations as listed below. If
data are presented on a cash basis, report thejustification for this decision in addition to reporting
the following basic components:
201-1

Direct economic value

i. Direct economic value generated: revenues;

generated andii. Economic value distributed: operating costs,

distributed

employee wages and benefits, payments toDistribution of Added Value to
Stakeholders

39

providers of capital, payments to government by
country, and community investments;
iii. Economic value retained: ‘direct economic
value generated’ less ‘economic value distributed’.
b. Where significant, report EVG&D separately atcountry, regional, or market levels, and the criteria
used for defining significance.
a. Risks and opportunities posed by climatechange that have the potential to generate
substantive changes in operations, revenue, or
expenditure, including:i. a description of the risk or opportunity and its
Financial implications
201-2

and other risks andopportunities due toclimate change

classification as either physical, regulatory, orother;
ii. a description of the impact associated with therisk or opportunity;iii. the financial implications of the risk oropportunity before action is taken;
iv. the methods used to manage the risk oropportunity;v. the costs of actions taken to manage the risk oropportunity.

201-3

Defined benefit plana. If the plan’s liabilities are met by the

obligations and otherorganization’s general resources, the estimatedretirement plansvalue of those liabilities.

Adaptation to Climate Change

78-84

b. If a separate fund exists to pay the plan’spension liabilities:
i. the extent to which the scheme’s liabilities are
estimated to be covered by the assets that havebeen set aside to meet them;ii. the basis on which that estimate has been
arrived at;iii. when that estimate was made.
c. If a fund set up to pay the plan’s pension
liabilities is not fully covered, explain the strategy,
if any, adopted by the employer to work towards
full coverage, and the timescale, if any,
by which the employer hopes to achieve fullcoverage.
d. Percentage of salary contributed by employee
or employer.
e. Level of participation in retirement plans, such

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Sustainability Report 2019

as participation in mandatory or voluntary
schemes, regional, or country-based schemes, or
those with financial impact.
a. Total monetary value of financial assistancereceived by the organization from any government
during the reporting period, including:i. tax relief and tax credits;
ii. subsidies;iii. investment grants, research and development
grants, and other relevant types of grant;
Financial assistance201-4

received fromgovernmentiv. awards;
v. royalty holidays;
vi. financial assistance from Export Credit
Agencies (ECAs);vii. financial incentives;
viii. other financial benefits received or receivablefrom any government for any operation.
b. The information in 201-4-a by country.
c. Whether, and the extent to which, any
government is present in the shareholding
structure.

Market Presence：

GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

Explanation of theii. the organization’s involvement with the impacts.

material topic and its

For example, whether the organization has

Boundarycaused or contributed to the impacts, or is directly
linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.
a. An explanation of how the organization
manages the topic.
b. A statement of the purpose of the management
approach.
c. A description of the following, if the

The management
103-2

approach and its
components

management approach includes that component:i. Policies
ii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources
vi. Grievance mechanismsvii. Specific actions, such as processes, projects,
programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness

103-3

Evaluation of theof the management approach;management approachii. the results of the evaluation of the management
approach;iii. any related adjustments to the management
approach.

：

GRI 202 Market
Presence 2016

202-1

Ratios of standard entry

a. When a significant proportion of employees arelevel wage by gendercompensated based on wages subject tocompared to local

minimum wage rules, report the relevant ratio of

minimum wage

the entry level wage by gender at significant
locations of operation to the minimum wage.
b. When a significant proportion of other workers

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Sustainability Report 2019

(excluding employees) performing theorganization’s activities are compensated basedon wages subject to minimum wage rules,
describe the actions taken to determine whether
these workers are paid above the minimum wage.
c. Whether a local minimum wage is absent orvariable at significant locations of operation, bygender. In circumstances in which different
minimums can be used as a reference, reportwhich minimum wage is being used.
d. The definition used for ‘significant locations ofoperation’.
a. Percentage of senior management at significant
locations of operation that are hired from the local
Proportion of senior
202-2

management hired fromthe local community

community.

＞b. The definition used for ‘senior management’.

Respect for Diversityc. The organization’s geographical definition ofComposition of "Nissha People"

50-52‘local’.
d. The definition used for ‘significant locations ofoperation’.

Indirect Economic Impacts：

GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

Explanation of theii. the organization’s involvement with the impacts.

material topic and its

For example, whether the organization has

Boundarycaused or contributed to the impacts, or is directly
linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.
a. An explanation of how the organization
manages the topic.
b. A statement of the purpose of the management
approach.
c. A description of the following, if the

The management
103-2

approach and its
components

management approach includes that component:i. Policies
ii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources
vi. Grievance mechanismsvii. Specific actions, such as processes, projects,
programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness

103-3

Evaluation of theof the management approach;management approachii. the results of the evaluation of the management
approach;iii. any related adjustments to the management
approach.

：

GRI 203 Indirect

a. Extent of development of significant

Economic Impacts

infrastructure investments and services supported.

2016
203-1

Infrastructureb. Current or expected impacts on communities

investments andand local economies, including positive andservices supported

negative impacts where relevant.
c. Whether these investments and services arecommercial, in-kind, or pro bono engagements.

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Sustainability Report 2019

203-2Significant indirect

a. Examples of significant identified indirect

economic impacts

economic impacts of the organization, including
positive and negative impacts.
b. Significance of the indirect economic impacts inthe context of external benchmarks andstakeholder priorities, such as national andinternational standards, protocols, and policy
agendas.

Procurement Practices：

GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

Explanation of theii. the organization’s involvement with the impacts.

material topic and its

For example, whether the organization has

Boundarycaused or contributed to the impacts, or is directly
linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.
a. An explanation of how the organization
manages the topic.
b. A statement of the purpose of the management
approach.
c. A description of the following, if the

The management
103-2

approach and its
components

management approach includes that component:i. Policies
ii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources
vi. Grievance mechanismsvii. Specific actions, such as processes, projects,
programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness

103-3

Evaluation of theof the management approach;management approachii. the results of the evaluation of the management
approach;iii. any related adjustments to the management
approach.

：

GRI 204

a. Percentage of the procurement budget used for

Procurement

significant locations of operation that is spent on

Practices 2016suppliers local to that operation (such as
204-1

Proportion of spendingon local suppliers

percentage of products and services purchased
locally).
b. The organization’s geographical definition of‘local’.
c. The definition used for ‘significant locations ofoperation’.

Anti-corruption *

：

103-1

＞

Explanation of thea. An explanation of why the topic is material.

Nissha Group’s Sustainability

Management

material topic and its

b. The Boundary for the material topic, which

Materiality in risk management

Approach 2016

Boundary

includes a description of:

GRI 103

i. where the impacts occur;

Editorial Policy

4-8
123-125

ii. the organization’s involvement with the impacts.
For example, whether the organization has
caused or contributed to the impacts, or is directly
linked to the impacts through its business
relationships.

136

Sustainability Report 2019

c. Any specific limitation regarding the topic
Boundary.

c. A description of the following, if theapproach and its
components＞

4-8

manages the topic.

CSR Management

approach.

103-2

3-4

Nissha Group’s Sustainability

b. A statement of the purpose of the management

The management＞a. An explanation of how the organization

management approach includes that component:i. Policies

Nissha Group’s Sustainability

Materiality in risk management＞

Human Rights Hotline

42-43

Corporate Ethics andii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources
vi. Grievance mechanisms

Compliance＞Guideline of the

Corporate Ethics and

37-38

Compliance, Promotion
Structure and Initiatives

vii. Specific actions, such as processes, projects,

Initiatives Related to Anti-programs and initiatives

corruption

110

a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness
103-3

＞

Evaluation of theof the management approach;Nissha Group’s Sustainability

management approachii. the results of the evaluation of the management

CSR Management

3-4

approach;iii. any related adjustments to the management
approach.

：Anti-GRI 205

corruption 2016

Operations assessed for
205-1

risks related tocorruption

a. Total number and percentage of operations
assessed for risks related to corruption.
b. Significant risks related to corruption identified
through the risk assessment.
a. Total number and percentage of governancebody members that the organization’s anticorruption policies and procedures have beencommunicated to, broken down by region.
b. Total number and percentage of employees thatthe organization’s anti-corruption policies andprocedures have been communicated to, broken
down by employee category and region.

205-2

c. Total number and percentage of businessCorporate Ethics andCommunication andpartners that the organization’s anti-corruption

training about anti-

policies and procedures have been communicatedCompliancecorruption policies andto, broken down by type of business partner andprocedures

region. Describe if the organization’s anti-

Initiatives Related to Anti-

corruption policies and procedures have beencorruption＞Promotion

37-38

Structure and Initiatives

110communicated to any other persons ororganizations.
d. Total number and percentage of governancebody members that have received training on anticorruption, broken down by region.
e. Total number and percentage of employees thathave received training on anti-corruption, broken
down by employee category and region.
205-3

Confirmed incidents ofa. Total number and nature of confirmed incidents

Initiatives Related to Anti-

corruption and actionsof corruption.

corruption

taken

b. Total number of confirmed incidents in which110employees were dismissed or disciplined forcorruption.
c. Total number of confirmed incidents whencontracts with business partners were terminatedor not renewed due to violations related tocorruption.
d. Public legal cases regarding corruption brought
against the organization or its employees during

137

Sustainability Report 2019

the reporting period and the outcomes of suchcases.
Anti-competitive Behavior：

GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

＞

ii. the organization’s involvement with the impacts.

Nissha Group’s Sustainability

material topic and its

For example, whether the organization has

Materiality in risk management

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

Explanation of the

4-8
123-125

linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.
a. An explanation of how the organization

The management
approach and its
components

3-4

＞

4-8

Nissha Group’s Sustainability

b. A statement of the purpose of the management

CSR Management

approach.

103-2

＞

manages the topic.

c. A description of the following, if the

Nissha Group’s Sustainability

management approach includes that component:

Materiality in risk management

i. Policies

Human Rights Hotline

ii. Commitments＞

iii. Goals and targets

Corporate Ethics andiv. Responsibilities

Compliancev. Resources

Corporate Ethics andvi. Grievance mechanisms

Compliance, Promotion

vii. Specific actions, such as processes, projects,

Structure and Initiatives

42-43＞Guideline of the

37-38

programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness
103-3

＞

Evaluation of theof the management approach;Nissha Group’s Sustainability

management approachii. the results of the evaluation of the management

CSR Management

3-4

approach;iii. any related adjustments to the management
approach.

：Anti-GRI 206

a. Number of legal actions pending or completedcompetitive

Legal actions for anti-

Behavior 2016
206-1

competitive behavior,anti-trust, and monopoly
practicesduring the reporting period regarding anticompetitive behavior and violations of anti-trust
and monopoly legislation in which the organization
has been identified as a participant.
b. Main outcomes of completed legal actions,
including any decisions or judgments.

Environmental
Materials：

GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

Explanation of theii. the organization’s involvement with the impacts.

material topic and its

For example, whether the organization has

Boundarycaused or contributed to the impacts, or is directly
linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.

103-2

The managementa. An explanation of how the organization

approach and its

manages the topic.

components

b. A statement of the purpose of the management

138

Sustainability Report 2019

approach.
c. A description of the following, if the
management approach includes that component:i. Policies
ii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources
vi. Grievance mechanismsvii. Specific actions, such as processes, projects,
programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness
103-3

Evaluation of theof the management approach;management approachii. the results of the evaluation of the management
approach;iii. any related adjustments to the management
approach.

：Materials

GRI 3012016

a. Total weight or volume of materials that areused to produce and package the organization’s
301-1

Materials used byprimary products and services during the reporting

weight or volume

period, by:i. non-renewable materials used;＞

The Environment

76-77

Environmental Impact as a
Result of Business Operations

ii. renewable materials used.

301-2

Recycled input materials
used

Reclaimed products and301-3

their packaging
materials

a. Percentage of recycled input materials used to
manufacture the organization’s primary products
and services.
a. Percentage of reclaimed products and theirpackaging materials for each product category.
b. How the data for this disclosure have beencollected.

Energy *：GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

＞

Explanation of theii. the organization’s involvement with the impacts.

Nissha Group’s Sustainability

material topic and its

For example, whether the organization has

Materiality in risk management

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

4-8
123-125

linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.
a. An explanation of how the organization
manages the topic.
b. A statement of the purpose of the management

The management
103-2

approach and its
components

CSR Management

3-4

＞

4-8

approach.

Nissha Group’s Sustainabilityc. A description of the following, if theMateriality in risk management

management approach includes that component:i. Policies＞

Human Rights Hotline
The Environmentiii. Goals and targets

Environmental Policy andiv. Responsibilities

Management Structuresvi. Grievance mechanismsvii. Specific actions, such as processes, projects,
programs and initiatives

42-43

＞

ii. Commitments

v. Resources

103-3

＞

Nissha Group’s Sustainability

69-71

＞

The Environment

Environmental Objectives and＞

Evaluation of thea. An explanation of how the organization

Nissha Group’s Sustainability

management approachevaluates the management approach, including:

CSR Management

139

72-75

Status of Achievement

3-4

Sustainability Report 2019

i. the mechanisms for evaluating the effectivenessof the management approach;ii. the results of the evaluation of the management
approach;iii. any related adjustments to the management
approach.

：Energy

GRI 302a. Total fuel consumption within the organization

2016

from non-renewable sources, in joules ormultiples, and including fuel types used.
b. Total fuel consumption within the organizationfrom renewable sources, in joules or multiples,and including fuel types used.
c. In joules, watt-hours or multiples, the total:
i. electricity consumption

302-1

Energy consumption
within the organization＞ii. heating consumption

The Environmentiii. cooling consumption

Environmental Impact as aiv. steam consumption

Result of Business Operations

d. In joules, watt-hours or multiples, the total:
i. electricity sold

76-77

＞

78-84

＞

78-84

The Environment Adaptation
to Climate Change

ii. heating soldiii. cooling soldiv. steam solde. Total energy consumption within theorganization, in joules or multiples.
f. Standards, methodologies, assumptions, and/or
calculation tools used.
g. Source of the conversion factors used.
a. Energy consumption outside of the302-2

Energy consumption

organization, in joules or multiples.

outside of theb. Standards, methodologies, assumptions, and/ororganization

calculation tools used.
c. Source of the conversion factors used.
a. Energy intensity ratio for the organization.
b. Organization-specific metric (the denominator)
chosen to calculate the ratio.

302-3

Energy intensity

c. Types of energy included in the intensity ratio;

The Environment Adaptation

whether fuel, electricity, heating, cooling, steam,to Climate Changeor all.
d. Whether the ratio uses energy consumption
within the organization, outside of it, or both.
a. Amount of reductions in energy consumption
achieved as a direct result of conservation andefficiency initiatives, in joules or multiples.
b. Types of energy included in the reductions;
302-4

Reduction of energy
consumption

whether fuel, electricity, heating, cooling, steam,or all.
c. Basis for calculating reductions in energy
consumption, such as base year or baseline,
including the rationale for choosing it.
d. Standards, methodologies, assumptions, and/or
calculation tools used.
a. Reductions in energy requirements of soldproducts and services achieved during theReductions in energy
302-5

requirements ofproducts and services

reporting period, in joules or multiples.
b. Basis for calculating reductions in energy
consumption, such as base year or baseline,
including the rationale for choosing it.
c. Standards, methodologies, assumptions, and/or
calculation tools used.

Water

：

GRI 103

103-1

Explanation of thea. An explanation of why the topic is material.

140＞

Nissha Group’s Sustainability

Sustainability Report 2019

Management

material topic and its

b. The Boundary for the material topic, which

Approach 2016

Boundary

includes a description of:i. where the impacts occur;

Materiality in risk management

4-8

Editorial Policy

123-125

ii. the organization’s involvement with the impacts.
For example, whether the organization has
caused or contributed to the impacts, or is directly
linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.
a. An explanation of how the organization
manages the topic.
b. A statement of the purpose of the management

The management
103-2

approach and its
components

＞

3-4

＞

4-8

Nissha Group’s Sustainability
CSR Management

approach.

Nissha Group’s Sustainabilityc. A description of the following, if theMateriality in risk management

management approach includes that component:i. Policies＞

Human Rights Hotline＞

ii. Commitments

The Environmentiii. Goals and targets

Environmental Policy andiv. Responsibilities

Management Structures

v. Resources
vi. Grievance mechanismsvii. Specific actions, such as processes, projects,
programs and initiatives

42-43

69-71

＞

The Environment

Environmental Objectives and

72-75

Status of Achievementa. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness
103-3

＞

Evaluation of theof the management approach;Nissha Group’s Sustainability

management approachii. the results of the evaluation of the management

CSR Management

3-4

approach;iii. any related adjustments to the management
approach.

：WaterGRI 303a. Total volume of water withdrawn, with a2016

breakdown by the following sources:
i. Surface water, including water from wetlands,
rivers, lakes, and oceans;ii. Ground water;
303-1

Water withdrawal byiii. Rainwater collected directly and stored by thesourceorganization;
iv. Waste water from another organization;＞

The Environment

Environmental Impact as a

76-77

Result of Business Operations

v. Municipal water supplies or other public or
private water utilities.
b. Standards, methodologies, and assumptions
used.
a. Total number of water sources significantly
affected by withdrawal by type:i. Size of the water source;
ii. Whether the source is designated as a
Water sources303-2

significantly affected bywithdrawal of water

nationally or internationally protected area;iii. Biodiversity value (such as species diversity
and endemism, and total number of protected
species);iv. Value or importance of the water source to local
communities and indigenous peoples.
b. Standards, methodologies, and assumptions
used.

303-3

Water recycled anda. Total volume of water recycled and reused byreusedthe organization.
b. Total volume of water recycled and reused as apercentage of the total water withdrawal as
specified in Disclosure 303-1.

141

Sustainability Report 2019

c. Standards, methodologies, and assumptions
used.
Biodiversity：

GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

Explanation of theii. the organization’s involvement with the impacts.

material topic and its

For example, whether the organization has

Boundarycaused or contributed to the impacts, or is directly
linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.
a. An explanation of how the organization
manages the topic.
b. A statement of the purpose of the management
approach.
c. A description of the following, if the

The management
103-2

approach and its
components

management approach includes that component:i. Policies
ii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources
vi. Grievance mechanismsvii. Specific actions, such as processes, projects,
programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness

103-3

Evaluation of theof the management approach;management approachii. the results of the evaluation of the management
approach;iii. any related adjustments to the management
approach.

：

GRI 304

a. For each operational site owned, leased,

Biodiversity 2016

managed in, or adjacent to, protected areas andareas of high biodiversity value outside protectedareas, the following information:i. Geographic location;ii. Subsurface and underground land that may be
owned, leased, or managed by the organization;iii. Position in relation to the protected area (in the

304-1

Operational sites

area, adjacent to, or containing portions of theowned, leased,

protected area) or the high biodiversity value area

managed in, or adjacentoutside protected areas;

to, protected areas andiv. Type of operation (office, manufacturing or

areas of highproduction, or extractive);

biodiversity value

v. Size of operational site in km2 (or another unit,

outside protected areas

if appropriate);vi. Biodiversity value characterized by the attributeof the protected area or area of high biodiversity
value outside the protected area (terrestrial,
freshwater, or maritime ecosystem);vii. Biodiversity value characterized by listing ofprotected status (such as IUCN Protected Area
Management Categories, Ramsar Convention,national legislation).

304-2

Significant impacts ofa. Nature of significant direct and indirect impacts

activities, products, andon biodiversity with reference to one or more of142

Sustainability Report 2019

services on biodiversity

the following:i. Construction or use of manufacturing plants,
mines, and transport infrastructure;ii. Pollution (introduction of substances that do notnaturally occur in the habitat from point and nonpoint sources);iii. Introduction of invasive species, pests, andpathogens;iv. Reduction of species;
v. Habitat conversion;
vi. Changes in ecological processes outside thenatural range of variation (such as salinity orchanges in groundwater level).
b. Significant direct and indirect positive andnegative impacts with reference to the following:i. Species affected;
ii. Extent of areas impacted;
iii. Duration of impacts;
iv. Reversibility or irreversibility of the impacts.
a. Size and location of all habitat areas protectedor restored, and whether the success of therestoration measure was or is approved byindependent external professionals.
b. Whether partnerships exist with third parties to304-3

Habitats protected orprotect or restore habitat areas distinct from where

restoredthe organization has overseen and implemented
restoration or protection measures.
c. Status of each area based on its condition at
the close of the reporting period.
d. Standards, methodologies, and assumptions
used.
a. Total number of IUCN Red List species andnational conservation list species with habitats in

304-4

IUCN Red List species

areas affected by the operations of theand nationalorganization, by level of extinction risk:

conservation list species

i. Critically endangeredwith habitats in areas

ii. Endangered

affected by operations

iii. Vulnerable
iv. Near threatenedv. Least concern

Emissions *：GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

Explanation of theii. the organization’s involvement with the impacts.

material topic and its

For example, whether the organization has

Boundarycaused or contributed to the impacts, or is directly
linked to the impacts through its business
relationships.

＞

Nissha Group’s Sustainability

Materiality in risk management

4-8
123-125

Editorial Policy＞

The Environment Adaptation
to Climate Change

78-84

c. Any specific limitation regarding the topic
Boundary.
103-2

＞

3-4

＞

4-8

＞
＞

11-12

The managementa. An explanation of how the organization

Nissha Group’s Sustainability

approach and its

manages the topic.

CSR Management

components

b. A statement of the purpose of the management
approach.
c. A description of the following, if the

Nissha Group’s Sustainability

Materiality in risk management

management approach includes that component:

Nissha Group’s Sustainability

i. Policies

Nissha Group’s Stakeholders

ii. Commitments

External Assessmentiii. Goals and targets
iv. Responsibilities

143＞

Human Rights Hotline

42-43

Sustainability Report 2019

＞v. Resources

The Environment

vi. Grievance mechanisms

Environmental Policy andvii. Specific actions, such as processes, projects,

Management Structures

programs and initiatives

69-71

＞

The Environment

Environmental Objectives and

72-75

Status of Achievement＞

The Environment Adaptation
to Climate Change

78-84

a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness
103-3

＞

Evaluation of theof the management approach;Nissha Group’s Sustainability

management approachii. the results of the evaluation of the management

CSR Management

3-4

approach;iii. any related adjustments to the management
approach.

：

GRI 305

a. Gross direct (Scope 1) GHG emissions in

Emissions 2016

metric tons of CO2 equivalent.
b. Gases included in the calculation; whether
CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all.
c. Biogenic CO2 emissions in metric tons of CO2
equivalent.
d. Base year for the calculation, if applicable,
including:i. the rationale for choosing it;
305-1

Direct (Scope 1) GHG
emissionsii. emissions in the base year;iii. the context for any significant changes inemissions that triggered recalculations of baseyear emissions.
e. Source of the emission factors and the global
warming potential (GWP) rates used, or areference to the GWP source.
f. Consolidation approach for emissions; whether
equity share, financial control, or operational
control.
g. Standards, methodologies, assumptions, and/or
calculation tools used.
a. Gross location-based energy indirect (Scope 2)
GHG emissions in metric tons of CO2 equivalent.
b. If applicable, gross market-based energy
indirect (Scope 2) GHG emissions in metric tons＞

The Environment

Environmental Impact as a

76-77

Result of Business Operations＞

The Environment Adaptation
to Climate Change

78-84

of CO2 equivalent.
c. If available, the gases included in thecalculation; whether CO2, CH4, N2O, HFCs,
PFCs, SF6, NF3, or all.
d. Base year for the calculation, if applicable,
including:
305-2

Energy indirect (Scope2) GHG emissions

i. the rationale for choosing it;ii. emissions in the base year;iii. the context for any significant changes inemissions that triggered recalculations of baseyear emissions.
e. Source of the emission factors and the global
warming potential (GWP) rates used, or areference to the GWP source.
f. Consolidation approach for emissions; whether
equity share, financial control, or operational
control.
g. Standards, methodologies, assumptions, and/or
calculation tools used.

305-3

Other indirect (Scope 3)

The reporting organization shall report the144＞

The Environment Adaptation

Sustainability Report 2019

GHG emissions＞Initiative in

84

＞

78-84

＞
＞

81-83

following information:

to Climate Changea. Gross other indirect (Scope 3) GHG emissions

Scope 3 Management

in metric tons of CO2 equivalent.
b. If available, the gases included in thecalculation; whether CO2, CH4, N2O, HFCs,
PFCs, SF6, NF3, or all.
c. Biogenic CO2 emissions in metric tons of CO2
equivalent.
d. Other indirect (Scope 3) GHG emissions
categories and activities included in thecalculation.
e. Base year for the calculation, if applicable,
including:i. the rationale for choosing it;ii. emissions in the base year;iii. the context for any significant changes inemissions that triggered recalculations of baseyear emissions.
f. Source of the emission factors and the global
warming potential (GWP) rates used, or areference to the GWP source.
g. Standards, methodologies, assumptions, and/or
calculation tools used.
a. GHG emissions intensity ratio for theorganization.
b. Organization-specific metric (the denominator)
305-4

GHG emissions
intensity

chosen to calculate the ratio.
c. Types of GHG emissions included in theintensity ratio; whether direct (Scope 1), energy

The Environment Adaptation
to Climate Change

indirect (Scope 2), and/or other indirect (Scope 3).
d. Gases included in the calculation; whether
CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all.
a. GHG emissions reduced as a direct result of
reduction initiatives, in metric tons of CO2
equivalent.
b. Gases included in the calculation; whether

305-5

CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all.

The Environment Adaptation

Reduction of GHG

c. Base year or baseline, including the rationale

to Climate Change

emissionsfor choosing it.

Comparison of CO2 Emissions

d. Scopes in which reductions took place; whether

in 2017 and 2018

direct (Scope 1), energy indirect (Scope 2), and/or
other indirect (Scope 3).
e. Standards, methodologies, assumptions, and/or
calculation tools used.
a. Production, imports, and exports of ODS in
metric tons of CFC-11 (trichlorofluoromethane)
305-6

Emissions of ozone-

equivalent.

depleting substancesb. Substances included in the calculation.

(ODS)

c. Source of the emission factors used.
d. Standards, methodologies, assumptions, and/or
calculation tools used.

305-7

＞

Nitrogen oxides (NOX),

a. Significant air emissions, in kilograms or

The Environment

sulfur oxides (SOX), andmultiples, for each of the following:

Environmental Impact as aother significant airi. NOX

Result of Business Operations

emissionsii. SOX
iii. Persistent organic pollutants (POP)iv. Volatile organic compounds (VOC)v. Hazardous air pollutants (HAP)vi. Particulate matter (PM)

76-77

＞

The Environment

Management of Chemical
Substances and Environmental

89-95

Risks

vii. Other standard categories of air emissions
identified in relevant regulations
b. Source of the emission factors used.

145

Sustainability Report 2019

c. Standards, methodologies, assumptions, and/or
calculation tools used.
Effluents and Waste *：GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

＞

ii. the organization’s involvement with the impacts.

Nissha Group’s Sustainability

material topic and its

For example, whether the organization has

Materiality in risk management

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

Explanation of the

4-8
123-125

linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.

＞

3-4

＞

4-8

＞
＞

11-12

Nissha Group’s Sustainability
CSR Managementa. An explanation of how the organization

Nissha Group’s Sustainability

manages the topic.

Materiality in risk management

b. A statement of the purpose of the management
approach.
c. A description of the following, if the
The management
103-2

approach and its
components

management approach includes that component:

Nissha Group’s Sustainability
Nissha Group’s Stakeholders
External Assessment＞

Human Rights Hotline

i. Policies
ii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources

42-43

＞

The Environment

69-71

Environmental Policy andManagement Structures＞vi. Grievance mechanisms

The Environmentvii. Specific actions, such as processes, projects,

Environmental Objectives andprograms and initiatives

Status of Achievement＞

The Environment Adaptation
to Climate Change

72-75

78-84

a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness
103-3

＞

Evaluation of theof the management approach;Nissha Group’s Sustainability

management approachii. the results of the evaluation of the management

CSR Management

3-4

approach;iii. any related adjustments to the management
approach.

：EffluentsGRI 306

a. Total volume of planned and unplanned waterand Waste 2016

discharges by:i. destination;
306-1

Water discharge byii. quality of the water, including treatment method;

quality and destinationiii. whether the water was reused by anotherorganization.

＞

The Environment

Environmental Impact as a

76-77

Result of Business Operations

b. Standards, methodologies, and assumptions
used.
306-2

＞

Waste by type anda. Total weight of hazardous waste, with a

The Environment

disposal method

breakdown by the following disposal methods

Environmental Impact as awhere applicable:

Result of Business Operations＞＞Status of Waste

i. Reuse

76-77

The Environment Waste

ii. Recycling

Managementiii. Compostingiv. Recovery, including energy recovery

87-88

Generation at Bases

v. Incineration (mass burn)vi. Deep well injection
vii. Landfill
viii. On-site storageix. Other (to be specified by the organization)

146

Sustainability Report 2019b. Total weight of non-hazardous waste, with abreakdown by the following disposal methods
where applicable:
i. Reuse
ii. Recyclingiii. Compostingiv. Recovery, including energy recovery
v. Incineration (mass burn)vi. Deep well injection
vii. Landfill
viii. On-site storageix. Other (to be specified by the organization)c. How the waste disposal method has been
determined:
i. Disposed of directly by the organization, orotherwise directly confirmed
ii. Information provided by the waste disposal
contractor
iii. Organizational defaults of the waste disposal
contractor
a. Total number and total volume of recorded
significant spills.
b. The following additional information for eachspill that was reported in the organization’s
financial statements:
i. Location of spill;306-3

Significant spills

ii. Volume of spill;iii. Material of spill, categorized by: oil spills (soil orwater surfaces), fuel spills (soil or water surfaces),
spills of wastes (soil or water surfaces), spills ofchemicals (mostly soil or water surfaces), andother (to be specified by the organization).
c. Impacts of significant spills.
a. Total weight for each of the following:i. Hazardous waste transported
ii. Hazardous waste imported

306-4

Transport of hazardous
wasteiii. Hazardous waste exported
iv. Hazardous waste treatedb. Percentage of hazardous waste shippedinternationally.
c. Standards, methodologies, and assumptions
used.
a. Water bodies and related habitats that are
significantly affected by water discharges and/or
runoff, including information on:

306-5

Water bodies affected

i. the size of the water body and related habitat;by water discharges

ii. whether the water body and related habitat is

and/or runoff

designated as a nationally or internationallyprotected area;iii. the biodiversity value, such as total number ofprotected species.

Environmental Compliance：

GRI 103

103-1

Explanation of thea. An explanation of why the topic is material.

Management

material topic and its

b. The Boundary for the material topic, which

Approach 2016

Boundary

includes a description of:i. where the impacts occur;ii. the organization’s involvement with the impacts.
For example, whether the organization has
caused or contributed to the impacts, or is directly
linked to the impacts through its business
relationships.

147

Sustainability Report 2019

c. Any specific limitation regarding the topic
Boundary.

＞

3-4

＞

4-8

Nissha Group’s Sustainability
CSR Management

Nissha Group’s Sustainability
a. An explanation of how the organization

Materiality in risk management

manages the topic.

Corporate Ethics andb. A statement of the purpose of the management

Complianceapproach.

The management
103-2

approach and its
components＞Guideline of the

Corporate Ethics andc. A description of the following, if theCompliance, Promotion

management approach includes that component:

Structure and Initiatives

i. Policies＞

Human Rights Hotline

ii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources
vi. Grievance mechanisms

37-38

42-43

＞

The Environment

69-71

Environmental Policy andManagement Structures＞vii. Specific actions, such as processes, projects,

The Environment

programs and initiatives

Management of Chemical
Substances and Environmental＞Responses to local

Risks

90

complaints and environment
communicationa. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness
103-3

＞

Evaluation of theof the management approach;Nissha Group’s Sustainability

management approachii. the results of the evaluation of the management

CSR Management

3-4

approach;iii. any related adjustments to the management
approach.

：

GRI 307

a. Significant fines and non-monetary sanctions

Environmental

for non-compliance with environmental laws

The Environment

Compliance 2016

and/or regulations in terms of:Environmental Objectives andi. total monetary value of significant fines;

Status of Achievement

Non-compliance with

ii. total number of non-monetary sanctions;

The Environment

environmental laws andiii. cases brought through dispute resolution

regulations

mechanisms.

Management of Chemical

307-1

＞
＞

Substances and Environmental

b. If the organization has not identified any noncompliance with environmental laws and/or
regulations, a brief statement of this fact issufficient.

72-75＞Avoiding environmental

Risks

89-90

risk (preventing environmental
accidents or pollution)

Supplier Environmental Assessment *：GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

＞

ii. the organization’s involvement with the impacts.

Nissha Group’s Sustainability

material topic and its

For example, whether the organization has

Materiality in risk management

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

Explanation of the

4-8
123-125

linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.
103-2

＞

3-4

＞

4-8

The managementa. An explanation of how the organization

Nissha Group’s Sustainability

approach and its

manages the topic.

CSR Management

components

b. A statement of the purpose of the management
approach.
c. A description of the following, if the
management approach includes that component:i. Policies

148

Nissha Group’s Sustainability

Materiality in risk management＞

Human Rights Hotline

42-43

Sustainability Report 2019

＞ii. Commitments

The Environmentiii. Goals and targets

Environmental Policy andiv. Responsibilities

Management Structures

v. Resources
vi. Grievance mechanismsvii. Specific actions, such as processes, projects,
programs and initiatives

69-71

＞

The Environment

Environmental Objectives and

72-75

Status of Achievement
Partnership with Our Suppliers＞Basic Purchasing Policy, CSR

105-108

Supplier Auditsa. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness
103-3

＞

Evaluation of theof the management approach;Nissha Group’s Sustainability

management approachii. the results of the evaluation of the management

CSR Management

3-4

approach;iii. any related adjustments to the management
approach.

：Supplier

GRI 308

Environmental

New suppliers that were
308-1

Assessment 2016

screened using
environmental criteriaa. Percentage of new suppliers that werescreened using environmental criteria.

Partnership with Our Suppliers＞Basic Purchasing Policy, CSR

105-108

Supplier Auditsa. Number of suppliers assessed forenvironmental impacts.
b. Number of suppliers identified as having
significant actual and potential negativeenvironmental impacts.
c. Significant actual and potential negativeenvironmental impacts identified in the supply
308-2

Partnership with Our Suppliers＞Basic Purchasing Policy, CSR

Negative environmental

chain.

impacts in the supply

d. Percentage of suppliers identified as having

chain and actions taken

significant actual and potential negative

The Environment

environmental impacts with which improvements

Environmental Objectives andwere agreed upon as a result of assessment.

Status of Achievement105-108

Supplier Audits

＞

72-75

e. Percentage of suppliers identified as having
significant actual and potential negativeenvironmental impacts with which relationships
were terminated as a result of assessment, andwhy.
SocialEmployment *：GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

Explanation of theii. the organization’s involvement with the impacts.

material topic and its

For example, whether the organization has

Boundarycaused or contributed to the impacts, or is directly
linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.

103-2

＞

3-4

＞

4-8

The managementa. An explanation of how the organization

Nissha Group’s Sustainability

approach and its

manages the topic.

CSR Management

components

b. A statement of the purpose of the management
approach.
c. A description of the following, if the
management approach includes that component:i. Policies

Nissha Group’s Sustainability

Materiality in risk management＞

Human Rights Hotline

42-43

＞

Respect for Diversity

ii. Commitments
iii. Goals and targets
iv. Responsibilities

149

Enhancement of Systems and54

Communication Tools

Sustainability Report 2019v. Resources
vi. Grievance mechanismsvii. Specific actions, such as processes, projects,
programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness
103-3

＞

Evaluation of theof the management approach;Nissha Group’s Sustainability

management approachii. the results of the evaluation of the management

CSR Management

3-4

approach;iii. any related adjustments to the management
approach.

：

GRI 401a. Total number and rate of new employee hires

Employment 2016

during the reporting period, by age group, gender
401-1

＞

New employee hires

and region.

Respect for Diversity

and employee turnoverb. Total number and rate of employee turnoverComposition of "Nissha People"

50-52

during the reporting period, by age group, genderand region.
a. Benefits which are standard for full-time
employees of the organization but are notprovided to temporary or part-time employees, bysignificant locations of operation. These include,
Benefits provided to fulltime employees that are
401-2

not provided totemporary or part-time
employees

as a minimum:i. life insurance;ii. health care;iii. disability and invalidity coverage;
iv. parental leave;
v. retirement provision;vi. stock ownership;vii. others.
b. The definition used for ‘significant locations ofoperation’.
a. Total number of employees that were entitled toparental leave, by gender.
b. Total number of employees that took parental
leave, by gender.
c. Total number of employees that returned towork in the reporting period after parental leave

401-3

Parental leave

ended, by gender.
d. Total number of employees that returned to

Support for Diverse Work Styles＞Child-rearing and Family

56-57

Care Supporwork after parental leave ended that were still
employed 12 months after their return to work, bygender.
e. Return to work and retention rates of
employees that took parental leave, by gender.
Labor/Management Relations：

GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

Explanation of theii. the organization’s involvement with the impacts.

material topic and its

For example, whether the organization has

Boundarycaused or contributed to the impacts, or is directly
linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.

103-2

The managementa. An explanation of how the organization

approach and its

manages the topic.

components

b. A statement of the purpose of the management
approach.

150

Sustainability Report 2019

c. A description of the following, if the
management approach includes that component:i. Policies
ii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources
vi. Grievance mechanismsvii. Specific actions, such as processes, projects,
programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness
103-3

Evaluation of theof the management approach;management approachii. the results of the evaluation of the management
approach;iii. any related adjustments to the management
approach.

：

GRI 402a. Minimum number of weeks’ notice typically

Labor/Management

provided to employees and their representatives

Relations 2016prior to the implementation of significant
402-1

Minimum notice periods

operational changes that could substantially affectregarding operationalthem.

changesb. For organizations with collective bargaining＞

Human Rights Relationship44-45

with Labor Union

agreements, report whether the notice period andprovisions for consultation and negotiation are
specified in collective agreements.
Occupational Health and Safety *：GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

＞

ii. the organization’s involvement with the impacts.

Nissha Group’s Sustainability

material topic and its

For example, whether the organization has

Materiality in risk management

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

Explanation of the

4-8
123-125

linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.

＞

3-4

＞

4-8

＞
＞

11-12

Nissha Group’s Sustainability
CSR Management

Nissha Group’s Sustainability

Materiality in risk managementa. An explanation of how the organization
manages the topic.
b. A statement of the purpose of the management
approach.
c. A description of the following, if the
The management
103-2

approach and its
components

management approach includes that component:i. Policies
ii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources

Nissha Group’s Sustainability
Nissha Group’s Stakeholders
External Assessment＞
Labor Practices＞Safety and
Health＞Health declaration
Labor Practices＞Safety and
Health＞Occupational Safety
Human Rights Hotline

42-43
65

and Health Policy / Safety andvi. Grievance mechanisms

Health Objectives Safety andvii. Specific actions, such as processes, projects,

Health Management System /programs and initiatives

Safety and Health62-63

Subcommittee
The Environment＞

Environmental Policy and

69-71

Management Structures

151

Sustainability Report 2019

a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness
103-3

＞

Evaluation of theof the management approach;Nissha Group’s Sustainability

management approachii. the results of the evaluation of the management

CSR Management

3-4

approach;iii. any related adjustments to the management
approach.

：

GRI 403

Occupational
Health and Safety
2016

403-1

＞Safety and＞Safety and Healtha. The level at which each formal joint
Workers representation

Labor Practices

management-worker health and safety committee

in formal joint

typically operates within the organization.

Healthmanagement–worker

b. Percentage of workers whose work, or

health and safety

workplace, is controlled by the organization, thatcommittees

are represented by formal joint management-

Human Rights Relationshipworker health and safety committees.

with Labor UnionManagement System / Safety

62-63

and Health Subcommittee

＞

44-45

a. Types of injury, injury rate (IR), occupational
disease rate (ODR), lost day rate (LDR), absentee
rate (AR), and work-related fatalities, for all
employees, with a breakdown by:
Types of injury and rates
of injury, occupational403-2

diseases, lost days, andabsenteeism, andnumber of work-related
fatalities

i. region;ii. gender.

＞Safety and＞Occurrence of Work-b. Types of injury, injury rate (IR), and work-

Labor Practices

related fatalities, for all workers (excluding

Healthemployees) whose work, or workplace, isrelated Accidents

63

controlled by the organization, with a breakdownby:i. region;ii. gender.
c. The system of rules applied in recording andreporting accident statistics.

403-3

Workers with higha. Whether there are workers whose work, orincidence or high risk ofworkplace, is controlled by the organization,diseases related to theirinvolved in occupational activities who have a highoccupation

incidence or high risk of specific diseases.

Health and safety topics
403-4

covered in formal
agreements with tradeunionsa. Whether formal agreements (either local or
global) with trade unions cover health and safety.
b. If so, the extent, as a percentage, to which
various health and safety topics are covered bythese agreements.

Training and Education *：GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

Explanation of theii. the organization’s involvement with the impacts.

material topic and its

For example, whether the organization has

Boundarycaused or contributed to the impacts, or is directly
linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.

103-2

＞

3-4

＞

4-8

The managementa. An explanation of how the organization

Nissha Group’s Sustainability

approach and its

manages the topic.

CSR Management

components

b. A statement of the purpose of the management
approach.
c. A description of the following, if the

Nissha Group’s Sustainability

Materiality in risk management＞

management approach includes that component:

Human Rights Hotline,

i. Policies

Building and Operation of aii. Commitments

Management System

iii. Goals and targets

152

Labor Practices

42＞HumanSustainability Report 2019

＞

iv. Responsibilities

Resources Development

v. Resources

Human Resources

vi. Grievance mechanisms

Development Policy, Approachvii. Specific actions, such as processes, projects,

to Human Resources

programs and initiatives

Development

47

a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness
103-3

＞

Evaluation of theof the management approach;Nissha Group’s Sustainability

management approachii. the results of the evaluation of the management

CSR Management

3-4

approach;iii. any related adjustments to the management
approach.

：Training

GRI 404

a. Average hours of training that the organization’sand Education 2016404-1

＞Human＞Average hours of

employees have undertaken during the reporting

Labor Practices

training per year perperiod, by:Resources Development

employeei. gender;

Training Records

49

ii. employee category.

Labor Practices＞Human＞Resources Development

Training System, Selective

Human Resource Development,

48-49

Programs to Support
a. Type and scope of programs implemented and

404-2

Employees’ Will to Learn and

Programs for upgrading

assistance provided to upgrade employee skills.

Grow

employee skills andb. Transition assistance programs provided toInitiatives Related to Intellectual

transition assistancefacilitate continued employability and theprograms

management of career endings resulting from

Property

retirement or termination of employment.

＞Intellectual Property

103-104

Training Programs＞Practical

Respect for Diversity

Training for Women Employees

＞

53-54

Fair Operating Practices＞

Trade Management Initiatives

102

on FY ended December 2018
Percentage of
employees receiving
404-3

regular performanceand career development
reviews

a. Percentage of total employees by gender and＞by employee category who received a regular

Human Rights Fair Evaluation

performance and career development review

and Treatment

44

during the reporting period.

Diversity and Equal Opportunity *：GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

Explanation of theii. the organization’s involvement with the impacts.

material topic and its

For example, whether the organization has

Boundarycaused or contributed to the impacts, or is directly
linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.

103-2

＞

3-4

＞

4-8

The managementa. An explanation of how the organization

Nissha Group’s Sustainability

approach and its

manages the topic.

CSR Management

components

b. A statement of the purpose of the management
approach.
c. A description of the following, if the

Nissha Group’s Sustainability

Materiality in risk management＞

management approach includes that component:

Human Rights Hotline,

i. Policies

Building and Operation of aii. Commitments

Management System

42

iii. Goals and targets

153

Sustainability Report 2019

iv. Responsibilities

50-55

Respect for Diversity

v. Resources
vi. Grievance mechanismsvii. Specific actions, such as processes, projects,
programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness
103-3

＞

Evaluation of theof the management approach;Nissha Group’s Sustainability

management approachii. the results of the evaluation of the management

CSR Management

3-4

approach;iii. any related adjustments to the management
approach.

：Diversity

GRI 405

a. Percentage of individuals within theand Equalorganization’s governance bodies in each of theOpportunity 2016

following diversity categories:
i. Gender;
ii. Age group: under 30 years old, 30-50 years old,
over 50 years old;iii. Other indicators of diversity where relevant
405-1

＞

Diversity of governance(such as minority or vulnerable groups).

Respect for Diversity

bodies and employees

b. Percentage of employees per employee

Composition of "Nissha People"

50-52

category in each of the following diversity
categories:
i. Gender;
ii. Age group: under 30 years old, 30-50 years old,
over 50 years old;iii. Other indicators of diversity where relevant(such as minority or vulnerable groups).
a. Ratio of the basic salary and remuneration of
405-2

Ratio of basic salary

women to men for each employee category, by

and remuneration ofsignificant locations of operation.

women to men

b. The definition used for ‘significant locations of＞

Human Rights Wage
Management

44

operation’.
Non-discrimination *：GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

＞

ii. the organization’s involvement with the impacts.

Nissha Group’s Sustainability

material topic and its

For example, whether the organization has

Materiality in risk management

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

Explanation of the

4-8
123-125

linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.
a. An explanation of how the organization
manages the topic.
b. A statement of the purpose of the management
approach.
c. A description of the following, if the
The management
103-2

approach and its
components

＞

3-4

＞

4-8

Nissha Group’s Sustainability
CSR Management

management approach includes that component:

Nissha Group’s Sustainability

i. Policies

Materiality in risk management

ii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources
vi. Grievance mechanisms＞

Human Rights Hotline, Basic
Policy on Labor and Human
Rights, Building and Operation

41-42

of a Management Systemvii. Specific actions, such as processes, projects,
programs and initiatives
103-3

Evaluation of thea. An explanation of how the organization

154＞

Nissha Group’s Sustainability

Sustainability Report 2019management approachevaluates the management approach, including:

3-4

CSR Managementi. the mechanisms for evaluating the effectivenessof the management approach;ii. the results of the evaluation of the management
approach;iii. any related adjustments to the management
approach.

：Non-

GRI 406

a. Total number of incidents of discrimination

discrimination 2016

during the reporting period.
b. Status of the incidents and actions taken with
Incidents of
406-1

discrimination andcorrective actions taken

reference to the following:i. Incident reviewed by the organization;
ii. Remediation plans being implemented;

Not applicableiii. Remediation plans that have been
implemented, with results reviewed throughroutine internal management review processes;
iv. Incident no longer subject to action.

Freedom of Association and Collective Bargaining：

GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

Explanation of theii. the organization’s involvement with the impacts.

material topic and its

For example, whether the organization has

Boundarycaused or contributed to the impacts, or is directly
linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.
a. An explanation of how the organization
manages the topic.
b. A statement of the purpose of the management
approach.
c. A description of the following, if the

The management
103-2

approach and its
components

management approach includes that component:i. Policies＞

Human Rights Freedom of
Association and Collective

ii. Commitments
iii. Goals and targets

44

Bargaining

iv. Responsibilities
v. Resources
vi. Grievance mechanismsvii. Specific actions, such as processes, projects,
programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness
103-3

Evaluation of theof the management approach;management approachii. the results of the evaluation of the management
approach;iii. any related adjustments to the management
approach.

：Freedom

GRI 407407-1＞

Operations anda. Operations and suppliers in which workers’

Human Rights Freedom ofof Association andsuppliers in which therights to exercise freedom of association or

Association and Collective

Collective

right to freedom ofcollective bargaining may be violated or at

Bargaining

Bargaining 2016

association andsignificant risk either in terms of:collective bargaining

i. type of operation (such as manufacturing plant)

may be at risk

and supplier;ii. countries or geographic areas with operations

44

Partnership with Our Suppliers＞Basic Purchasing Policy, CSR

105-108

Supplier Audits

and suppliers considered at risk.
b. Measures taken by the organization in thereporting period intended to support rights to155

Sustainability Report 2019

exercise freedom of association and collective
bargaining.
Child Labor：GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

Explanation of theii. the organization’s involvement with the impacts.

material topic and its

For example, whether the organization has

Boundarycaused or contributed to the impacts, or is directly
linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.
a. An explanation of how the organization
manages the topic.
b. A statement of the purpose of the management

The management
103-2

approach and its
components

＞

3-4

＞

4-8

Nissha Group’s Sustainability

approach.

CSR Managementc. A description of the following, if the

Nissha Group’s Sustainability

management approach includes that component:

Materiality in risk management

i. Policies＞
Human Rights＞Basic Policy on
Human Rights Hotline

ii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources
vi. Grievance mechanismsvii. Specific actions, such as processes, projects,

Labor and Human Rights,

42-43

41-42

Building and Operation of aManagement System

programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness
103-3

＞

Evaluation of theof the management approach;Nissha Group’s Sustainability

management approachii. the results of the evaluation of the management

CSR Management

3-4

approach;iii. any related adjustments to the management
approach.

：ChildGRI 408

a. Operations and suppliers considered to have

Labor 2016

significant risk for incidents of:i. child labor;
ii. young workers exposed to hazardous work.

408-1

＞

b. Operations and suppliers considered to have

Human Rights Basic Policy on

Operations andsignificant risk for incidents of child labor either inLabor and Human Rights

suppliers at significant

terms of:risk for incidents of childi. type of operation (such as manufacturing plant)

laborand supplier;ii. countries or geographic areas with operations

41

Partnership with Our Suppliers＞Basic Purchasing Policy, CSR

105-108

Supplier Audits

and suppliers considered at risk.
c. Measures taken by the organization in thereporting period intended to contribute to theeffective abolition of child labor.
Forced or Compulsory Labor *：GRI 103

103-1＞

Explanation of thea. An explanation of why the topic is material.

Nissha Group’s Sustainability

Management

material topic and its

b. The Boundary for the material topic, which

Materiality in risk management

Approach 2016

Boundary

includes a description of:i. where the impacts occur;

Editorial Policy

4-8
123-125

ii. the organization’s involvement with the impacts.
For example, whether the organization has
caused or contributed to the impacts, or is directly
linked to the impacts through its business
relationships.

156

Sustainability Report 2019

c. Any specific limitation regarding the topic
Boundary.
a. An explanation of how the organization
manages the topic.
b. A statement of the purpose of the management
approach.
c. A description of the following, if the
The management
103-2

approach and its
components

＞

3-4

＞

4-8

Nissha Group’s Sustainability
CSR Management

management approach includes that component:

Nissha Group’s Sustainability

i. Policies

Materiality in risk management

ii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources
vi. Grievance mechanisms＞

Human Rights Hotline, Basic
Policy on Labor and Human
Rights, Building and Operation

41-42

of a Management Systemvii. Specific actions, such as processes, projects,
programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness
103-3

＞

Evaluation of theof the management approach;Nissha Group’s Sustainability

management approachii. the results of the evaluation of the management

CSR Management

3-4

approach;iii. any related adjustments to the management
approach.

：ForcedGRI 409

a. Operations and suppliers considered to haveor Compulsory

significant risk for incidents of forced orLabor 2016

compulsory labor either in terms of:

409-1

＞

Operations andi. type of operation (such as manufacturing plant)

Human Rights Basic Policy on

suppliers at significant

and supplier;

Labor and Human Rights

risk for incidents ofii. countries or geographic areas with operations

Partnership with Our Suppliers

forced or compulsory

and suppliers considered at risk.

laborb. Measures taken by the organization in the＞Basic Purchasing Policy, CSR

41

105-108

Supplier Audits

reporting period intended to contribute to theelimination of all forms of forced or compulsory
labor.
Security Practices：

GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

Explanation of theii. the organization’s involvement with the impacts.

material topic and its

For example, whether the organization has

Boundarycaused or contributed to the impacts, or is directly
linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.
a. An explanation of how the organization
manages the topic.
b. A statement of the purpose of the management
approach.
c. A description of the following, if the

The management
103-2

approach and its
components

management approach includes that component:i. Policies
ii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources
vi. Grievance mechanismsvii. Specific actions, such as processes, projects,
programs and initiatives

157

Sustainability Report 2019

103-3

Evaluation of thea. An explanation of how the organization

management approachevaluates the management approach, including:i. the mechanisms for evaluating the effectivenessof the management approach;ii. the results of the evaluation of the management
approach;iii. any related adjustments to the management
approach.

：Security

GRI 410a. Percentage of security personnel who have

Practices 2016

received formal training in the organization’s
410-1

Security personnel

human rights policies or specific procedures andtrained in human rights

their application to security.

policies or procedures

b. Whether training requirements also apply tothird-party organizations providing security
personnel.

Rights of Indigenous Peoples：

GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

Explanation of theii. the organization’s involvement with the impacts.

material topic and its

For example, whether the organization has

Boundarycaused or contributed to the impacts, or is directly
linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.
a. An explanation of how the organization
manages the topic.
b. A statement of the purpose of the management
approach.
c. A description of the following, if the

The management
103-2

approach and its
components

management approach includes that component:i. Policies
ii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources
vi. Grievance mechanismsvii. Specific actions, such as processes, projects,
programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness

103-3

Evaluation of theof the management approach;management approachii. the results of the evaluation of the management
approach;iii. any related adjustments to the management
approach.

GRI 411：Rights ofa. Total number of identified incidents of violations

Indigenous Peoples

involving the rights of indigenous peoples during

2016

the reporting period.
b. Status of the incidents and actions taken with
411-1

Incidents of violations

reference to the following:

involving rights ofi. Incident reviewed by the organization;indigenous peoples

ii. Remediation plans being implemented;
iii. Remediation plans that have been
implemented, with results reviewed throughroutine internal management review processes;
iv. Incident no longer subject to action.

Human Rights Assessment

158

Sustainability Report 2019

：

GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

＞

ii. the organization’s involvement with the impacts.

Nissha Group’s Sustainability

material topic and its

For example, whether the organization has

Materiality in risk management

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

Explanation of the

4-8
123-125

linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.
a. An explanation of how the organization
manages the topic.
b. A statement of the purpose of the management

The management
103-2

approach and its
components

＞

3-4

＞

4-8

approach.

Nissha Group’s Sustainabilityc. A description of the following, if the

CSR Management

management approach includes that component:i. Policies

Nissha Group’s Sustainability

Materiality in risk management

ii. Commitments＞

iii. Goals and targets

Human Rights Hotline,

iv. Responsibilities

Building and Operation of av. Resources

Management System

42

vi. Grievance mechanismsvii. Specific actions, such as processes, projects,
programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness
103-3

＞

Evaluation of theof the management approach;Nissha Group’s Sustainability

management approachii. the results of the evaluation of the management

CSR Management

3-4

approach;iii. any related adjustments to the management
approach.

：HumanGRI 412

Rights Assessment
2016

Operations that have412-1

been subject to humanrights reviews or impact
assessments＞

a. Total number and percentage of operations that

Human Rights Building andhave been subject to human rights reviews or

Operation of a Managementhuman rights impact assessments, by country.

System42

a. Total number of hours in the reporting period
devoted to training on human rights policies or
Employee training on
412-2

human rights policies orprocedures

procedures concerning aspects of human rightsthat are relevant to operations.
b. Percentage of employees trained during thereporting period in human rights policies orprocedures concerning aspects of human rightsthat are relevant to operations.

412-3

Significant investment

a. Total number and percentage of significant

agreements andinvestment agreements and contracts that include

contracts that include

human rights clauses or that underwent human

human rights clauses orrights screening.

that underwent humanb. The definition used for ‘significant investmentrights screening

agreements’.

Local Communities：

GRI 103

103-1

Explanation of thea. An explanation of why the topic is material.

Management

material topic and its

b. The Boundary for the material topic, which

Approach 2016

Boundary

includes a description of:i. where the impacts occur;ii. the organization’s involvement with the impacts.
For example, whether the organization has
caused or contributed to the impacts, or is directly
linked to the impacts through its business

159

Sustainability Report 2019

relationships.
c. Any specific limitation regarding the topic
Boundary.
a. An explanation of how the organization
manages the topic.
b. A statement of the purpose of the management
approach.
c. A description of the following, if the
The management
103-2

approach and its
components

management approach includes that component:i. Policies
ii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources
vi. Grievance mechanismsvii. Specific actions, such as processes, projects,
programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness

103-3

Evaluation of theof the management approach;management approachii. the results of the evaluation of the management
approach;iii. any related adjustments to the management
approach.

：LocalGRI 413

a. Percentage of operations with implemented

Communities 2016

local community engagement, impact
assessments,
and/or development programs, including the useof:i. social impact assessments, including gender
impact assessments, based on participatory
processes;
ii. environmental impact assessments and413-1

Operations with local

ongoing monitoring;

communityiii. public disclosure of results of environmental

engagement, impact

and social impact assessments;

assessments, andiv. local community development programs based

development programs

on local communities’ needs;
v. stakeholder engagement plans based on
stakeholder mapping;vi. broad based local community consultationcommittees and processes that include vulnerable
groups;vii. works councils, occupational health and safetycommittees and other worker representation
bodies to deal with impacts;
viii. formal local community grievance processes.

413-2

Operations witha. Operations with significant actual and potential

significant actual andnegative impacts on local communities, including:potential negativei. the location of the operations;

impacts on local

ii. the significant actual and potential negative

communities

impacts of operations.

Supplier Social Assessment *：GRI 103

103-1

Explanation of thea. An explanation of why the topic is material.

Management

material topic and its

b. The Boundary for the material topic, which

Approach 2016

Boundary

includes a description of:i. where the impacts occur;ii. the organization’s involvement with the impacts.
For example, whether the organization has
caused or contributed to the impacts, or is directly160

Sustainability Report 2019linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.
a. An explanation of how the organization
manages the topic.

103-2

approach and its
components

3-4

＞

4-8

Nissha Group’s Sustainability

approach.

CSR Managementc. A description of the following, if the
The management＞

b. A statement of the purpose of the management

management approach includes that component:

Nissha Group’s Sustainability

i. Policies

Materiality in risk management

ii. Commitments

Human Rights Hotline

iii. Goals and targets
iv. Responsibilities
v. Resources
vi. Grievance mechanisms

＞

42-43

Partnership with Our Suppliers＞Basic Purchasing Policy, CSR

105-108

Supplier Audits

vii. Specific actions, such as processes, projects,
programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness
103-3

＞

Evaluation of theof the management approach;Nissha Group’s Sustainability

management approachii. the results of the evaluation of the management

CSR Management

3-4

approach;iii. any related adjustments to the management
approach.

：Supplier

GRI 414

Social Assessment

New suppliers that were
414-1

2016

screened using social
criteria

a. Percentage of new suppliers that werescreened using social criteria.

Partnership with Our Suppliers＞Basic Purchasing Policy, CSR

105-108

Supplier Auditsa. Number of suppliers assessed for social
impacts.
b. Number of suppliers identified as having
significant actual and potential negative social
impacts.
c. Significant actual and potential negative social
414-2

Negative social impacts

impacts identified in the supply chain.

in the supply chain andd. Percentage of suppliers identified as having

actions taken

significant actual and potential negative social

Partnership with Our Suppliers＞Basic Purchasing Policy, CSR

105-108

Supplier Audits

impacts with which improvements were agreed
upon as a result of assessment.
e. Percentage of suppliers identified as having
significant actual and potential negative social
impacts with which relationships were terminatedas a result of assessment, and why.
Public Policy：

GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

Explanation of theii. the organization’s involvement with the impacts.

material topic and its

For example, whether the organization has

Boundarycaused or contributed to the impacts, or is directly
linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.

103-2

The managementa. An explanation of how the organization

approach and its

manages the topic.

components

b. A statement of the purpose of the management
approach.
c. A description of the following, if the161

Sustainability Report 2019management approach includes that component:i. Policies
ii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources
vi. Grievance mechanismsvii. Specific actions, such as processes, projects,
programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness
103-3

Evaluation of theof the management approach;management approachii. the results of the evaluation of the management
approach;iii. any related adjustments to the management
approach.

：Public

GRI 415

a. Total monetary value of financial and in-kind

Policy 2016

political contributions made directly and indirectly
415-1

Political contributions

by the organization by country andrecipient/beneficiary.
b. If applicable, how the monetary value of in-kind
contributions was estimated.

Customer Health and Safety：

GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

＞

Explanation of theii. the organization’s involvement with the impacts.

Nissha Group’s Sustainability

material topic and its

For example, whether the

Materiality in risk management

Boundaryorganization has caused or contributed to the

Editorial Policy

4-8
123-125

impacts, or is directly linked
to the impacts through its business relationships.
c. Any specific limitation regarding the topic
Boundary.

＞

3-4

＞

4-8

＞
＞

11-12

Nissha Group’s Sustainability
CSR Managementa. An explanation of how the organization

Nissha Group’s Sustainability

manages the topic.

Materiality in risk management

b. A statement of the purpose of the management

Nissha Group’s Sustainability

approach.

The management
103-2

approach and its
components

c. A description of the following, if the

Nissha Group’s Stakeholders

management approach includes that component:

External Assessment

i. Policies

Human Rights Hotline

ii. Commitments＞

iii. Goals and targets

Corporate Ethics andiv. Responsibilities

Compliancev. Resources

Corporate Ethics andvi. Grievance mechanisms

Compliance, Promotion

vii. Specific actions, such as processes, projects,

Structure and Initiatives

programs and initiatives

42-43＞Guideline of the＞Quality

37-38

Consumer Issues

115-116

Slogan, Quality and Safety of
Products
103-3＞

Evaluation of thea. An explanation of how the organization

Nissha Group’s Sustainability

management approachevaluates the management approach, including:

CSR Management

3-4

i. the mechanisms for evaluating the effectivenessof the management approach;ii. the results of the evaluation of the management
approach;iii. any related adjustments to the management
approach.

162

Sustainability Report 2019

：

GRI 416

Customer Healthand Safety 2016

Assessment of the
416-1

health and safety
impacts of product andservice categories

a. Percentage of significant product and service
categories for which health and safety impacts areassessed for improvement.
a. Total number of incidents of non-compliancewith regulations and/or voluntary codes
concerning the health and safety impacts ofproducts and services within the reporting period,

Incidents of noncompliance concerning416-2

the health and safety
impacts of products andservicesby:i. incidents of non-compliance with regulations＞Quality andresulting in a fine or penalty;

Consumer Issues

ii. incidents of non-compliance with regulations

Safety of Products

116

resulting in a warning;iii. incidents of non-compliance with voluntary
codes.
b. If the organization has not identified any noncompliance with regulations and/or voluntary
codes, a brief statement of this fact is sufficient.

Marketing and Labeling：

GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

Explanation of theii. the organization’s involvement with the impacts.

material topic and its

For example, whether the organization has

Boundarycaused or contributed to the impacts, or is directly
linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.
a. An explanation of how the organization
manages the topic.
b. A statement of the purpose of the management
approach.
c. A description of the following, if the

The management
103-2

approach and its
components

management approach includes that component:i. Policies
ii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources
vi. Grievance mechanismsvii. Specific actions, such as processes, projects,
programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness

103-3

Evaluation of theof the management approach;management approachii. the results of the evaluation of the management
approach;iii. any related adjustments to the management
approach.

：

GRI 417417-1

Requirements fora. Whether each of the following types ofMarketing andproduct and service

information is required by the organization’sLabeling 2016

information and labelingprocedures for product and service informationand labeling:i. The sourcing of components of the product orservice;ii. Content, particularly with regard to substancesthat might produce an environmental or social
impact;163

Sustainability Report 2019

iii. Safe use of the product or service;
iv. Disposal of the product and environmental orsocial impacts;
v. Other (explain).
b. Percentage of significant product or service
categories covered by and assessed forcompliance with such procedures.
a. Total number of incidents of non-compliancewith regulations and/or voluntary codes
concerning product and service information andlabeling, by:
Incidents of non417-2

compliance concerning
product and service
information and labelingi. incidents of non-compliance with regulations
resulting in a fine or penalty;
ii. incidents of non-compliance with regulations
resulting in a warning;iii. incidents of non-compliance with voluntary
codes.
b. If the organization has not identified any noncompliance with regulations and/or voluntary
codes, a brief statement of this fact is sufficient.
a. Total number of incidents of non-compliancewith regulations and/or voluntary codes
concerning marketing communications, including
advertising, promotion, and sponsorship, by:

Incidents of non417-3

compliance concerningmarketingcommunications

i. incidents of non-compliance with regulations
resulting in a fine or penalty;
ii. incidents of non-compliance with regulations
resulting in a warning;iii. incidents of non-compliance with voluntary
codes.
b. If the organization has not identified any noncompliance with regulations and/or voluntary
codes, a brief statement of this fact is sufficient.

Customer Privacy *：GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

＞

ii. the organization’s involvement with the impacts.

Nissha Group’s Sustainability

material topic and its

For example, whether the organization has

Materiality in risk management

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

Explanation of the

4-8
123-125

linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.
103-2

＞

3-4

＞

4-8

＞
＞

11-12

The managementa. An explanation of how the organization

Nissha Group’s Sustainability

approach and its

manages the topic.

CSR Management

components

b. A statement of the purpose of the management
approach.
c. A description of the following, if the

Nissha Group’s Sustainability

Materiality in risk management

management approach includes that component:

Nissha Group’s Sustainability

i. Policies

Nissha Group’s Stakeholders

ii. Commitments

External Assessmentiii. Goals and targets
iv. Responsibilities＞

Human Rights Hotline

v. Resources

Initiatives Related to Information

vi. Grievance mechanisms

Securityvii. Specific actions, such as processes, projects,
programs and initiatives

42-43
97-99

＞
＞Risk

The Environment Waste
Management

Management Related to Waste
86

164

Sustainability Report 2019and Waste Converted in
Valuable Resources
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness
103-3

＞

Evaluation of theof the management approach;Nissha Group’s Sustainability

management approachii. the results of the evaluation of the management

CSR Management

3-4

approach;iii. any related adjustments to the management
approach.

：

GRI 418

a. Total number of substantiated complaints

Customer Privacy

received concerning breaches of customer

2016

privacy, categorized by:

418-1

Substantiated

i. complaints received from outside parties andcomplaints concerning

substantiated by the organization;breaches of customer

ii. complaints from regulatory bodies.

privacy and losses ofb. Total number of identified leaks, thefts, or

customer data

losses of customer data.

No complaint has been reported.

c. If the organization has not identified any
substantiated complaints, a brief statement of thisfact is sufficient.
Socioeconomic Compliance *：GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

＞

ii. the organization’s involvement with the impacts.

Nissha Group’s Sustainability

material topic and its

For example, whether the organization has

Materiality in risk management

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

Explanation of the

4-8
123-125

linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.

c. A description of the following, if theapproach and its
components＞

4-8

CSR Management

approach.

103-2

3-4

Nissha Group’s Sustainability

manages the topic.
b. A statement of the purpose of the management

The management＞a. An explanation of how the organization

management approach includes that component:i. Policies

Nissha Group’s Sustainability

Materiality in risk management＞

Human Rights Hotline

42-43

Corporate Ethics andii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources
vi. Grievance mechanisms

Compliance＞Guideline of the

Corporate Ethics and

37-38

Compliance, Promotion
Structure and Initiatives＞

vii. Specific actions, such as processes, projects,

Fair Operating Practices Tax

programs and initiatives

Policy111

a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness
103-3

＞

3-4

＞Quality and116

Evaluation of theof the management approach;Nissha Group’s Sustainability

management approachii. the results of the evaluation of the management

CSR Management

approach;iii. any related adjustments to the management
approach.

：

GRI 419419-1

Non-compliance witha. Significant fines and non-monetary sanctions

Consumer Issues

Socioeconomic

laws and regulations infor non-compliance with laws and/or regulations in

Safety of Products

Compliance 2016

the social and economic

the social and economic area in terms of:area

i. total monetary value of significant fines;
ii. total number of non-monetary sanctions;165

Sustainability Report 2019

iii. cases brought through dispute resolution
mechanisms.
b. If the organization has not identified any noncompliance with laws and/or regulations, a brief
statement of this fact is sufficient.
c. The context against which significant fines andnon-monetary sanctions were incurred.
Material topics specific in Nissha
Business Continuity Plan *：GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
103-1

＞

Explanation of theii. the organization’s involvement with the impacts.

Nissha Group’s Sustainability

material topic and its

For example, whether the organization has

Materiality in risk management

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

4-8
123-125

linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.
a. An explanation of how the organization
manages the topic.
b. A statement of the purpose of the management
approach.

The management
103-2

approach and its
components

＞

3-4

＞

4-8

c. A description of the following, if the

Nissha Group’s Sustainability

management approach includes that component:

CSR Management

i. Policies

Nissha Group’s Sustainability

ii. Commitments
iii. Goals and targets
iv. Responsibilities

Materiality in risk management＞

Human Rights Hotline

v. Resources

42-43

vi. Grievance mechanismsvii. Specific actions, such as processes, projects,
programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness
103-3

＞

3-4

＞

4-8

Evaluation of theof the management approach;Nissha Group’s Sustainability

management approachii. the results of the evaluation of the management

CSR Management

approach;iii. any related adjustments to the management
approach.

Nissha Group’s Sustainability

Materiality in risk management

Index

＞

Corporate Governance Risk
Management

166

34-35

Sustainability Report 2019