CSR 2017

CEO Message

2

Nissha’ s CSR

Approach to CSR ／ CSR Management ／ Materiality
Nissha’ s Stakeholders ／ United Nations Global Compact

Corporate Philosophy and Brand
Organizational GovernanceCorporate GovernanceCorporate Ethics and Compliance
Distribution of Added Value to Stakeholders

Human Rights

Human Rights

4

13
15
16
28
30
31
32

Labor Practices

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

The Environment

Environmental Policy and Management Structures
Environmental Objectives and Status of Achievement
Environmental Impact as a Result of Business Operations
Prevention of Further Global Warming
Waste Management
Monitoring and Prevention of Pollution
Status of Waste Generation at BasesFair Operating Practices

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

Consumer Issues

Consumer Issues

Along with Local Communities

Along with Local Communities

36
37
40
46
52
57
58
61
64
66
70
72
76
79
80
82
85
86
91
92
93
94
98
99

Company Outline

103

Editorial Policy

113

Company Outline
What’ s Nissha?

GRI Content Index

104
106

116
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CSR Report 2017

CEO Message
Nissha Business
We at Nissha have realized growth through expansion of ourbusiness segments, by diversifying our product lines and target
markets, and entering into global markets through an evolution of
our printing technology. Having extended our reach to global
growth markets such as printing materials, automotive interior
parts, and medical devices on top of our mainstay of the consumer
electronics (IT) field, today we have taken our first steps toward a
new stage of growth.
As can be seen in key Nissha products such as transfer foil andtouch sensors, the evolution of our printing technology is marked by a fusion of printing with other elements likelaminating, coating, molding, and cutting. Although we attained high levels of growth in recent years byconcentrating our management resources on consumer electronics, this field is as prone as ever to sharp
fluctuations in product demand and declining product and services prices, pressing us to cultivate comparable
growth markets.
In the Fifth Medium­term Business Plan in operation since April 2015, we endeavor to acquire new coretechnologies and thereby optimize our business portfolio. By continuing to expand business opportunities in the
consumer electronics field while also scaling up efforts in other markets that promise stable growth on a global
basis, we aim to establish a balanced business foundation and maximize our corporate value over the medium
to long term. An effective means of acquiring new core technologies and expanding into new fields is mergers
and acquisitions (M&A). We welcomed into the Nissha Group in 2015 a global leader in metallized paper
headquartered in Belgium, and in 2016 a medical devices and consumables manufacturer based in the UnitedStates, and a German molding and decorative film manufacturer for automotive interiors, creating a businessfoundation that will form the basis of our future growth fields.

Promoting CSR from a Global Perspective
The Nissha corporate missions states, “We are committed to pursuing a mutually trustful Co­existence withsociety through our business activities utilizing a unique technology development, based on Printing as a core.”
Perpetual corporate growth comes not only from financial growth of the company itself but also from thecreation of value for society. We at Nissha believe that realizing Co­existence with our stakeholders is the very
corporate social responsibility (CSR) we are required to fulfill.
In April 2012, we joined the United Nations Global Compact and declared our commitment in the areas ofhuman rights, labor, the environment, and anti­corruption. In April 2015, we established a CSR Committee
dedicated to promoting CSR management, with the aim of enhancing our value as a global company over the
medium to long term. Also by conforming to standards provided by the Electronic Industry Citizenship Coalition(EICC) and identifying and addressing material issues, we hope to ensure steady reduction of CSR risks andbuild a solid foundation as a corporation with respect to environmental, social, and governance (ESG).
One material issue we are working to address is the promotion of diversity. With Nissha employees present
across the globe, our human resources are ever more diverse. And the work of our employees is essential to
the growth of Nissha. To this end, we carry on with efforts to enhance our support systems and encourage
active participation in business so that all employees, regardless of age, gender, ethnicity, or disability, may
shine and live up to their full potential. Another issue central to perpetual corporate growth is environment­
conscious management. In this area, we promote various initiatives and participate actively in schemes such as
the CDP (Carbon Disclosure Project) projects with an eye to improving our external assessment andmaximizing our corporate value.
The Sustainable Development Goals (SDGs) adopted by the United Nations in September 2015 call for all
sectors of the globe to contribute to the achievement of sustainable societies for future generations. As acorporate group that aims to earn your trust and be chosen by our stakeholders worldwide, we at Nissha

CEO Message

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believe it is important to face up to the challenges ofsustainable development. To do this, we will listen to ourstakeholders even more closely than before, reflect yourvoice in our business activities, and by doing so, aspire tocreate further business opportunities toward realizing
sustainable management and a sustainable future.

Initiatives in Corporate Governance
Recognizing corporate governance as a top management priority, we strive to ensure transparency and fairness
in our business operations, thereby promoting prompt and resolute decision­making and enhancing ourcorporate value over the long term.
In 2008, we adopted the corporate officer system to segregate our management oversight function from ourbusiness execution function. We also make active efforts to appoint independent directors—of our eight
directors, four are independent with one being a woman—to ensure transparency and fairness in our business
operations, and to draw on their insight to formulate strategies and practice management oversight. We haveestablished a Corporate Governance Policy, followed by a Nomination and Remuneration Committee, andlaunched efforts to evaluate the effectiveness of our Board of Directors once a year. And in our M&A activity ofrecent years, through the processes of due diligence and post­merger integration (PMI), we work to reduce risks
and maximize synergy with the new subsidiaries we welcome into the Nissha Group.

From Nissha Printing to Nissha
On October 6, 2017, we will change our trade name from Nissha Printing Co., Ltd. to Nissha Co., Ltd., reflecting
the evolution and expansion of our business far beyond the traditional boundaries of printing. “Nissha” is a
corporate brand that has grown familiar not only to our employees but also to our customers, our shareholders,
our suppliers, and the communities in which we operate. Following years of use, today it is recognized widely
across the globe. We hope to take this change in trade name as another opportunity to aim for even greater
progress.

In Closing
We at Nissha have carried on with our pursuit of customer satisfaction while aspiring to be a truly global
company. Moving forward, we hope to continue working with our stakeholders in facing up to the challenges ofglobal society, and through our efforts in sustainable management, contribute to the creation of a sustainable
future.
We hope you will give CSR Report 2017 a read and offer us your candid views and advice.
We look forward to your continued guidance and encouragement.
June 2017
Junya Suzuki
President and CEO
Chairman of the Board

CEO Message

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CSR Report 2017

Nissha’s CSR
Approach to CSR

Toward Realizing Our Corporate Mission
The Nissha Group’s CSR is to realize our corporate mission of “pursuing a mutually trustful Co­existence withsociety through our business activities utilizing a unique technology development, based on Printing as a core.”
As a specific means to realize this corporate mission, our brand statement “Empowering Your Vision” expresses
the ideal relationship of co­existence between Nissha and our stakeholders—a relationship in which wemutually affect each other toward realizing our respective visions.

Basic CSR and Strategic CSR
We define the target areas of our CSR activities as basic CSR and strategic CSR. In basic CSR, we strive to
reduce CSR risks by promoting compliance with the global code of conduct provided by the Electronic Industry
Citizenship Coalition (EICC) as well as with customer demand. In strategic CSR, we work to enhance ourcorporate value over the medium to long term by determining material issues and promoting initiatives toresolve them.

Management by CSR Committee
In April 2015 we organized a CSR Committee, chaired by the president, with eight subcommittees dedicated toareas such as labor and human rights, the environment, safety and health, and corporate ethics andcompliance. In addition to convening once a year, the CSR Committee conducts management reviews, andreports and offers suggestions to the Board of Directors. Each subcommittee operates a management system
and works on its respective basic CSR topics and strategic CSR topics. The progress of activities is reported asneeded to its secretariat. Initiatives related to strategic CSR topics, in particular, are included in Monthly
Business Review (MBR) reports for steady execution as more pertinent management issues.

Activities for Stakeholders
We identify the stakeholders that support Nissha operations as our customers, shareholders, employees,
suppliers, and society. Toward realizing our corporate mission, we incorporate the voice of our stakeholders intobusiness 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 for the future.

＊Nissha’s corporate mission and brand statement can be viewed here.
Corporate Philosophy and Nissha Brand

http://www.nissha.com/english/company/philosophy.html

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CSR Management

The CSR Committee convenes once a year in the presence of the chair, served by the president, and reports
and offers suggestions on important matters to the Board of Directors. In fiscal year 2017, having approved theinitiatives of each subcommittee, the CSR Committee deliberated on matters such as desktop training inbusiness continuity planning (BCP), our internal reporting system, and trends in work hours in MBR throughout
the year, and managed the progress of activities. And the results of the year­end management review werereported to the Board of Directors.
The individual subcommittees of the CSR Committee, as a rule, build and operate a management system.
Quality, Environmental, Information Security, and other subcommittees that already have ISO certification are
working to make continuous improvements and enhance performance. The Corporate Ethics and Compliance,and Labor and Human Rights subcommittees started operating a management system in fiscal year 2016. In
the three years from fiscal year 2016 covered by the Fifth Medium­term Business plan, we plan to complete thebuilding of management systems based on the EICC Code of Conduct throughout the Nissha Group and at
major suppliers.

CSR Committee Organization Chart

CSR Committee Members
Committee Chair: President and CEO
Vice Chair: Director, Member of the Board, Senior Executive Vice President,
Senior Director of Human Resources, General Affairs and Legal Affairs
Committee members: Heads of subcommittees, general managers of business units, and heads of
subcommittee secretariats
Secretary General: Senior Director of Corporate Communications
Secretariat: Corporate Social Responsibility
Subcommittee Secretariats
Corporate Ethics and Compliance Subcommittee: Corporate Legal Affairs
Business Continuity Management Subcommittee: Corporate General Affairs
Labor and Human Rights Subcommittee: Corporate Human Resources and Employee Benefits
Environmental, Safety and Health Subcommittee: Corporate General Affairs
Information Security Subcommittee: Corporate Information Technology and Management
Trade Administration and Control Subcommittee: Corporate Supply Chain Management
Quality Subcommittee: Total Quality Management Office
Customer Satisfaction Improvement Subcommittee: Total Quality Management OfficeNissha’s CSR

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Materiality

What challenges must we address in order to realize Co­existence with society? We at Nissha believe it isimportant to recognize the direct and indirect impact (effect) of our manufacturing activities on society, and face
up to the challenges posed as a result.
To this end, we analyzed our business operations, deliberated on the various challenges they pose to society,and in fiscal year 2016 identified a set of material topics. In fiscal year 2017, we expanded the boundary of
stakeholders subject to impact and reviewed the material topics established in the previous year. We thenanalyzed the topics based on materiality to our stakeholders and materiality to Nissha, consulting the standards
provided by the Global Reporting Initiative (GRI), and incorporated internal and external views into determining
topic­specific materiality. The process and results are given in the tables below. Each CSR subcommittee sets
key performance indicators (KPI) for the material topics identified, and is working toward them as priority issues.

Process for Identification of Material Issues
Step 1
Identify topics
Step 2
Prioritize

Step 3
Validate

Step 4
Determine materiality

Topics with an impact on Nissha and our supply chain are extracted based on
the topics provided by the GRI Standards.
Individual topics from Step 1 are measured for impact on our stakeholders andimpact on Nissha, and plotted on an analysis map. Topics are prioritized basedon the degree of impact.
Topics are validated from the standpoint of our stakeholders based on
evaluation by outside experts as well as interviews with independent directors
and internal specialized divisions.
Material topics identified in steps 1 to 3 are compared to key topics in themedium­term business plan, reflected in specific action programs (KPI), andapproved and determined by the CSR Committee.

Assessment of Map

Nissha’s CSR

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Boundaries of Material Topics
Boundaries
TopicsCategories

Inside of NisshaGroup

Economic

Suppliers

Anti­corruption●●

Energy●Emissions●●Effluents and Waste●●

Supplier Environmental Assessment●●

Employment●●

Occupational Health and Safety●●

Training and Education●●

Diversity and Equal Opportunity●●Non­discrimination●●

Forced or Compulsory Labor●●

Supplier Social Assessment●●

Customer Privacy●●

Socioeconomic Compliance●●Transport

●

●

●

●

●

●

Environmental

SocialGrievance Mechanisms (Human Lights,

OthersLabor Practices)
Business Continuity Planning

Material Issues and Subcommittee Responsible
Material Issues

Subcommittee

Socioeconomic ComplianceCorporate Ethics and Compliance Subcommittee

Grievance Mechanisms (Human Lights, Labor

Corporate Ethics and Compliance Subcommittee

Practices)

Labor and Human Rights Subcommittee

Business Continuity Planning

Business Contiuity Management Subcommittee

Employment
Training and Education
Diversity and Equal Opportunity

Labor and Human Rights SubcommitteeNon­discrimination
Forced or Compulsory Labor
EnergyEmissionsEffluents and Waste

Environmental, Safety and Health Subcommittee

Transport
Occupational Health and Safety
Customer Privacy

Nissha’s CSR

Information Security Subcommittee

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Anti­corruption

CSR Committee Secretariat (cross­sectoral

Supplier Assessment

approach)

Nissha's Stakeholders

We identify the stakeholders that support Nissha operations as our customers, shareholders, employees,
suppliers, and society. Toward realizing our corporate mission, we incorporate the voice of our stakeholders intobusiness 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 for the future.

Nissha’s Circle of Trust

Customers
Nissha’s businesses—Industrial Materials, Devices, Life Innovation, 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 provided by website
Supplier responsibility (SR) audits by customers

Shareholders
We have a total of 46,822,153 outstanding shares and 6,798 shareholders. In a breakdown ofshareholders by type, 37.1% are Japanese financial institutions and securities firms, 27.5% foreign
institutions and individuals, 22.2% other Japanese corporations, 13.0% Japanese individuals andothers, and 0.2% treasury stock (as of the end of March 2017).
In addition to disclosing information, we create opportunities to meet directly and exchange dialogue
with our shareholders and investors through IR events and one­on­one 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
One­on­one briefings for institutional investors

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Response to individual inquiries
Various materials (reports) published for shareholders and investors
IR information provided via the Nissha website
Information for socially responsible investment (SRI) screening companies

Employees
The Nissha Group has 5,133 employees. The number of employees including the temporary
employees is 7,030, and in a breakdown by region, 56.8% work in Japan, 9.4% in Asia, 15.3% in North
America, 8.8% in Europe, and 9.7% in Central and South America (as of the end of March 2017).
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 believe our
employees are our most important management resources, and aim to achieve growth for both thecompany and our employees.

◆Communication channels

Labor­management meetings
Workplace improvement committee
Education and training
Personnel evaluation and interviews
Hotline (for reporting to outside the company)
Harassment help desk
Awareness questionnaires and interviews

Suppliers
Nissha’s global operations revolve around procurement activities and engagement with a large numberof suppliers.
We strive to build partnerships of co­existence and co­prosperity 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 procurement and auditingIn­house exhibitions and seminars themed around supplier products and technologies

Society
The Nissha Group has 16 bases in Japan and 42 overseas, each of which carries out businessactivities with respect for the culture and climate of the region in which it operates.
We aim for widespread co­existence 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
Cleanup activities in factory areas
Next­generation support activities
Support and promotion of arts and culture
Social contribution activities in collaboration with NPOs
Employees’ participation in volunteer activities

Nissha’s CSR

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External Assessment

Major examples of external assessment in fiscal year 2017 are given below (Nissha Group in Japan).

Date

Certification/award

Company/baseDetails
Nissha Printing Co., Ltd. received a Kyoto Prefectural
Award for Distinguished Services in Invention for two
patents: one for our proprietary touch panels, andApr. 2016

another for metallic gloss sheets used in in­mold

60th Kyoto Prefectural Award for DistinguishedNissha Printing Co., Ltd.

Services in Invention

decoration (IMD). Awards are presented by Kyoto
Prefecture annually since 1957 to “promote thesignificance of invention and ingenuity, encourage
developments in science and technology, and increase
motivation for invention and ingenuity.”
Nissha Printing Co., Ltd. was recognized forcontributing to the enhancement of science andtechnology, and the promotion of industry in Japan, forthe same two patents for which we received a Kyoto
Prefectural Award for Distinguished Services inNov. 2016

FY2017 Kinki Regional Award for Invention

Nissha Printing Co., Ltd.

Invention: one for our proprietary touch panels, andanother for metallic gloss sheets used in IMD. Kinki
Regional Awards for Invention are presented by theJapan Institute of Invention and Innovation annually
since 1921 to “honor engineers and researchers
responsible for excellent inventions, ideas, or designs.”
A total of eight calendars and catalogs designed,"58th National Catalog Contest: 5 awards including

produced, or printed by Nissha won awards in the 58th

• Japan Paper Association Award (Silver Prize,

National Catalog Contest and the 68th National

Pictorial Records Category)Jan. 2017

Calendar Contest, co­hosted by the Japan Federation• Japan Federation of Printing Industries Chairman’s

Nissha PrintingAward (Silver Prize, Catalog Category) 68th National

Communications, Inc.

Calendar Contest: 3 awards including

Nitec Printing Co., Ltd.

of Printing Industries and Fuji Sankei Business­i.
One of the works was the official calendar of Nissha
Printing Co., Ltd., titled “Kyoto—The Beauty of Four

• Minister of Education, Culture, Sports, Science andSeasons,” which won the silver award in Category 1 inTechnology Award (Gold Prize, Category 3; Silver

recognition of the design as well as photoengraving

Prize, Category 1)"

and printing technologies.
Nissha Printing Co., Ltd. was certified as a Health andProductivity Management Organization in the large
enterprise category (White 500) at the 2017
announcement ceremony co­hosted by the Japanese

Feb. 2017

Health and Productivity Management Organization(White 500) Certification

Ministry of Economy, Trade and Industry (METI) andNissha Printing Co., Ltd.

Nippon Kenko Kaigi. Certification is granted to
outstanding large enterprises and SMEs working toaddress community health challenges and promoting
in health­conscious activities led by Nippon Kenko
Kaigi. Nissha was recognized for the initiatives we
presented in the FY2017 METI survey.

A list of ISO certificates obtained is given below (Nissha Group as of the end of March 2017).

ISO Standards
Subject Areas
ISO/TS16949

Nissha Printing Co., Ltd. Global
Headquarters

Nissha’s CSR

ISO9001

ISO14001

○*1

○*2

10

OHSAS18001

ISO27001

ISO50001

ISO13485

Others○CSR Report 2017

○*1

○

Nissha Printing Co., Ltd. Kameoka Site○○

Nitec Industries, Inc. Koka Factory

○

○

○

○

○

○

○

○

○

○

○

○

○

○

Nissha Printing Co., Ltd. Tokyo Division
Headquarters

Nitec Industries, Inc. Tsu Factory
Nitec Precision and Technologies, Inc.
Himeji Factory
Nitec Precision and Technologies, Inc.
Kaga Factory
Nitec Precision and Technologies, Inc.
Kyoto Factory
FIS Inc.
Nissha Printing Communications, Inc.
Headquarters / Kyoto
Nissha Printing Communications, Inc.
Tokyo Division Headquarters
Nissha Printing Communications, Inc.
Osaka Division Headquarters
Nitec Printing Co., Ltd. Headquarters /Kyoto Factory○*1○

FSC COC○*1○FSC COC○*1○FSC COC○○FSC COC○FSC COC

Nitec Printing Co., Ltd. Yachiyo Factory○

Nissha F8, Inc.

○*3

Nissha Business Service Co., Ltd.

○

Eimo Technologies, Inc.

○○AR Metallizing N.V. – Genk, Belgium○

AR Metallizing Srl. ­ Casalgrasso, Italy○

AR Metallizing Ltd. ­ Franklin, MA USA○

Málaga Produtos Metalizados Ltda.­
Osasco, Brazil○

Guangzhou Nissha High Precision Plastics
Co., Ltd.
Southern Nissha Sdn. Bhd.

○

○

○
○

Ltd.

○

○

Back Stickers GmbH

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

Graphic Controls Acquisition Corp.
Schuster Kunststofftechnik GmbH○○Si­Cal Technologies, Inc.
PMX Technologies, S.A. de C.V.

○

93/42/EEC○FSC COC○○FSC COCFSC COC

○

○

○

○

○

○

○

○

○

FSC COC*1. Management divisions are excluded from the scope of certification.
*2. Only management divisions and engineering and development divisions have obtained certification.
*3. Only the Kyoto site has obtained certification.

Nissha’s CSR

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CSR Report 2017

United Nations Global Compact

On April 3, 2012, Nissha Printing 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 anti­corruption. Its purpose is
to have various 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 thecommitment of top management, establish a CSR framework, make continuous
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, 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 ouractivities in CSR reports, published on the Nissha 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.
Anti­Corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

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

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Corporate Philosophy and Brand
Corporate Philosophy
Nissha has integrated our standards of thought, rules of conduct, andcorporate mission—positioned at the apex—into a Corporate Philosophy fordisseminating across the Nissha Group.
Corporate Mission
We are committed to pursuing a mutually trustful Co­existence withsociety through our business activities utilizing a unique technology
development, based on Printing as a core.

Nissha Brand
Corporate Logo
"NISSHA" is our corporate logo and core visual symbol. Our corporate color is a
vivid blue, and expresses strength, leadership, and innovation.

Nissha GroupAll Nissha Group companies share the same Nissha Values.

http://www.nissha.com/english/company/office/index.html

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Brand Statement“Empowering Your Vision” expresses the relationship of Co­existence 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.

Brand Chart

The “Empowering Your Vision” brand symbol is inspired by the ubiquitous presence of the Fibonacci sequencein nature, such as the spiral patterns of flowers and shells. The design represents the expansion of Nissha
capabilities, of the visions we realize, of the new values we create. This chart expresses our ideals of Co­
existence between Nissha and our stakeholders—a relationship in which each draws the other nearer while
together we unlock a world of possibilities.

Shared Values
Growth Based on Customer Satisfaction
We create new value for our customers and transform it into a driver of growth.
Commitment to Results
We set challenging goals for ourselves and deliver results.
Magnify Leadership
We exhibit leadership and resolve difficulties regardless of division or position.
Diverse Capabilities
We respect diversity that enhances our organizational capabilities and drives growth.
Sustainability Through Integrity
We value individual dignity and conduct fair business as a global corporate citizen.

Corporate Philosophy and Brand

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CSR Report 2017

Corporate 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.

Corporate Governance

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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 andfairness. 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 an increase incorporate value over the medium­ to long­term.
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 (April 17, 2017)[172.3KB]

Overview of Corporate Governance

We have established a corporate governance structure as shown in the figure below.
*as of April 1, 2017

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Corporate Governance Structure

We make major business judgments and oversees the execution of the duties of the Directors, Members of theBoard at meetings of the Board of Directors, and as a company with an Audit and Supervisory Board, will strive
to maintain 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 execution ofbusiness. 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 President and CEO, Chairman of the Board chairs the following meetings toward appropriate and efficientbusiness execution.
● Management Meeting: Comprises inside directors as core members. Deliberates on matters relating to thedirection 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 Board of
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 President and CEO, Chairman of the Board. Comprises eight corporate­wide
subcommittees, namely Corporate Ethics and Compliance; BCM (Business Continuity Management); Labor andHuman Rights; Environment Health and Safety; Information Security; Trade Administration and Control; Quality;
and Customer Satisfaction. Demonstrates leadership in dealing with risks to legal and appropriate businessexecution.
● Disclosure Control Committee: Chaired by the President and CEO, Chairman of the Board. 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 President and CEO, Chairman of the Board, audits the internal
control systems of the Nissha Group, analyzes and evaluates their status of establishment and operation, andoffers suggestions for improvement.

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>Internal Control System, Risk Management and Initiatives of Internal Audit
http://www.nissha.com/english/csr/governance/enhancement.html>Corporate Ethics and Compliance
http://www.nissha.com/english/csr/governance/compliance.html

Directors, Members of the Board and the Board of Directors
Policy and Procedure for Electing Directors, Members 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, Membersof the Board, and Corporate Officers.
Inside Directors, Members of the Board are elected for their acquaintance with our operations and suitability forcreating a growth strategy and overseeing business execution. Several Independent Directors, Members 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.
To ensure clarity in management responsibilities for each fiscal year, the term of office of Directors, Members of
the Board is set at one year.
Candidates for Directors, Members of the Board are determined in line with the above policies and in
consultation with the Nomination and Remuneration Committee.

Standards for Independence of Independent Officers[86.2KB]

Diversity of the Board of Directors *as of June 16, 2017

At present, our Board of Directors consists of eight members, of which four are Independent Directors,
Members of the Board with one being a woman.

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The Board includes individuals with experience abroad or at another company, or holding a master’s degree inbusiness administration. Each of our four Independent Directors, Members of the Board have experience andinsight into general corporate management, specialized knowledge in corporate governance, management andbusiness strategies, and information technology, and broad insight into monetary economics.

Role of the Board of Directors
Our Board of Directors convenes for regular meetings once a month and for extraordinary meetings as needed.
The meetings are chaired by the President.
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, Member of theBoard and Corporate Officers.

Initiatives to Enhance the Content of Discussions
Our Board of Directors meetings involve brisk, substantive discussions. Independent Directors, Members 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 directors and auditors beforehand. Towardthoroughness, important issues such as the medium­term 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 forbriefing and discussion in accordance with the degree of importance of the matter, we aim for sharp, focusedmeeting 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, Members 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.
In May 2017, we distributed a questionnaire covering all board meetings held in FY2017, and disclosed an
outline of the results in a Corporate Governance Report submitted to the Tokyo Stock Exchange in June.

Nomination and Remuneration Committee
PurposeWe have in place a Nomination and Remuneration Committee as an advisory panel for the Board of Directors toensure objectivity and fairness in the election of directors and auditors, and in determining remuneration of the

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Directors, Members of the Board. The chair and at least half of the members are selected from Independent
Directors, Members of the Board.

Role
With consultation from the Board of Directors, the Nomination and Remuneration Committee deliberates on andprovides a response regarding the following matters.
(1) Criteria for electing Directors, Members of the Board and Audit and Supervisory Board Members(2) Proposals of candidates for Director, Member of the Board and Audit and Supervisory Board Member(3) Policy on remuneration of Directors, Members of the Board(4) Remuneration of Directors, Members of the Board

Membership *as of June 16, 2017
(1) Four independent members: Tamio Kubota (Independent Director, Member of the Board and Committee
Chair), Kenji Kojima (Independent Director, Member of the Board), Sawako Nohara (Independent Director,
Member of the Board), Kazuhito Osugi (Independent Director, Member of the Board)(2) Two inside members: Junya Suzuki (President and CEO, Chairman of the Board), Hayato Nishihara(Director, Member of the Board and Senior Executive Vice President)

Audit and Supervisory Board Members and the Audit and Supervisory Board
Policy and Procedure for Electing Auditors
Our Audit and Supervisory Board comprises an appropriate number of four or fewer members.
Inside Audit and Supervisory Board Members are elected for the wealth of experience required in auditing.
Independent Audit and Supervisory Board Members are elected from attorneys and certified public accountants
with a focus on specialized knowledge in legal affairs, financial matters, and accounting, who satisfy therequirements of not only the Companies Act but also the “Standards for Independence of Independent Officers”,
established by our Board of Directors.
Candidates for Audit and Supervisory Board Members are determined in line with the above policies, inconsultation with the Nomination and Remuneration Committee, with consent from the Audit and Supervisory
Board. At present, our Board consists of four members, of which two are Full­time Audit and Supervisory Board
Members and two are Independent Audit and Supervisory Board Members.

Standards for Independence of Independent Officers[86.2KB]

Role of the 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 regularmeetings with the Accounting Auditor, Internal Audit, and corporate division including the Corporate Financeand 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 full­time
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.

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Policy on Determining Remuneration of Directors, Members of the Board and Audit andSupervisory Board Members
As a rule, officer remuneration (for Directors, Members of the Board and Corporate Officers responsible forbusiness execution) follows a system corresponding to degree of contribution to the enhancement of ourcorporate performance and corporate value. A breakdown of officer remuneration and the procedure by which itis determined are as follows.

Remuneration of Directors, Members of the Board● Inside Directors, Members of the Board
Remuneration of Directors, Members of the Board consists of basic compensation, bonuses, and stockcompensation. Basic compensation is set according to the individual’s position and the significance of his or herrole, and reflects evaluation of the individual’s degree of contribution and performance. Bonuses are based on
consolidated business results (net sales, operating margin, 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, Members 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, Members of
the Board experience together with our shareholders not only the benefits of a rise but also the risks of a decline
in share prices, the system aims to increase awareness in Directors, Members of the Board of the importance ofimproving 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 operating income each fiscal year, and in the closing year of a medium­term business plan, points
calculated according to the level of achievement of target management indices such as return on investment(ROE) and return on invested capital (ROIC). On a fixed day in the closing year of the medium­term businessplan, the points are converted into Nissha shares, and Directors, Members of the Board are paid a cash
equivalent of these shares at market value.
● Independent Directors
Remuneration of Independent Directors, Members of the Board consists of basic compensation only, based on
factors such as the individual’s career. Remuneration linked to business results is not provided, as the role ofIndependent Directors, Members of the Board is separated from business execution.

Procedure
Remuneration is determined by the Board of Directors, in consultation with the Nomination and Remuneration
Committee to ensure objectivity and fairness, within the scope of total remuneration approved at the General
Meeting of Shareholders.

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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(Excluding
Independent

248

150

57

40

4

28

28

­

­

2

41

41

­

­

6

Directors)
Audit andSupervisory Board
Members(Excluding
Independent Audit
and Supervisory
Members)
Independent
Directors andIndependent Audit
and Supervisory
Board Members

Corporate Officers
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.

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At present, we have 17 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.

Internal Control System
Nissha Printing Co., Ltd. builds and operates an internal control system in accordance with a Policy for Internal
Control formulated by the Board of Directors. The system is designed to ensure that the duties of each internalorganization are carried out legally, appropriately, and efficiently toward enhancing our corporate value. To
ensure reliability of financial reporting, we submit the assessment results of our internal control system in theform of internal control reports to the Prime Minister of Japan and disclose the contents to our shareholders andinvestors.

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, Members of the Board andemployees of the Nissha Group complies with laws and regulations and the Company’s articles ofincorporation(i) The Company shall establish a “Guideline of the Corporate Ethics and Compliance” and “Code of Conduct”
based on its corporate mission and Shared Values 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 and regulations,the Company’s articles of incorporation and social norms. In addition, the Company shall appoint a Manager
and Leader in charge of promotion in each business unit of the Nissha Group to establish a structure forpromoting Corporate Ethics and Compliance. An “in­house reporting system” shall be established and operated,through which employees may provide information directly to the Company, while due measures are taken forthe protection of whistleblowers.
(iii) The Company shall elect multiple Independent Directors, Members of the Board to maintain and enhance
the function of supervising the execution of duties by Directors, Members 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 the nomination of
Directors, Members of the Board and Audit and Supervisory Board Members as well as the remuneration of the
Directors, Members of the Board. The Nomination and Remuneration Committee shall be chaired by an
Independent Director, Member of the Board and the majority of its members shall be Independent Directors,
Members of the Board.
(iv) The Internal Audit Division, which is under the direct control of the President and Representative Director,
shall analyze and evaluate the state of the establishment and operations of an Internal Control system, propose
an improvement plan, and enrich the system.

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(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 in compliancewith the Regulations regarding antisocial forces, and the Nissha Group shall strive for thorough implementationof such measures.
2. Systems regarding the retention and management of information relating to the execution of duties
by Directors, Members of the Board(i) The Company shall retain and manage information regarding execution of duties by Directors Members of
the Board, including the minutes of the General Meetings of Shareholders, the minutes of the meetings of theBoard of Directors and the requests for managerial decision, properly and with certainty pursuant to the laws
and regulations and in­house regulations on information management, and the information shall be maintainedin 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 of corporate informationand the contents of disclosure.
3. Rules and other systems for risk management of the Nissha Group(i) The Company shall formulate the Basic Policy for Risk Management to specify the Nissha Group’s initiatives
in risk management.
(ii) The Company shall respond to the risk of managerial losses by organizing company­wide and cross­organizational subcommittees to manage the issues of Corporate Ethics Compliance, BCM, Labor and Human
Rights, Environment Health and Safety, Information Security, Trade Administration and Control, Quality, andCustomer Satisfaction under the CSR Committee led by the President and CEO, Chairman of the Board as theacting 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; and report
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 bymanagement while reporting them to the Board of Directors.
4. Systems necessary to ensure the efficient execution of the duties by Directors, Members of the Boardof the Nissha Group(i) Through the introduction of the corporate officer system, the Company shall establish functional segregation
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 medium­term business plans, and the Directors,
Members of the Board and employees shall execute operations based on such strategic and performanceplans.
(iii) The President and CEO, Chairman of the Board shall request the Corporate Officers to report the status of
their execution of business and confirm whether or not the business is executed according to the plans at amonthly 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 business efficiency.
5. Systems necessary to ensure the proper business operation of the Nissha Group(i) 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, the Company shall manage theperformance of important operations of each company of the Nissha Group by designating matters requiring
approval of and reporting to the Company with regard to the execution of those operations in the Regulations on
Requests for Managerial Decisions.
(ii) The Company shall appoint its officers or employees to become Directors, Members of the Board and Audit
and Supervisory Board Members of each company of the Nissha Group in order to ensure the proper executionof 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 the exchange
of information among the Audit and Supervisory Board Members of the Nissha Group and strive to improve andstrengthen 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, Members of the Board

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(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 Board and be
independent from Directors, Members of the Board. With regard to matters regarding the personnel affairs of
the employees of the Auditor and Supervisory Board Member’s Office, approval of the Audit and Supervisory
Board shall be obtained through consultation.
7. Systems for reporting to Audit and Supervisory Board Members by Directors, Members of the Boardand employees of the Nissha Group and other systems regarding reporting to Audit and Supervisory
Board Members
Directors, Members of the Board and employees of the Nissha Group shall quickly report to the Audit andSupervisory 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 and Supervisory Board Members of the Company shall request the Directors, Members of the Board andemployees of the Nissha Group to report such matters as necessary. In addition, whistleblowers shall not betreated disadvantageously in any way whatsoever as a consequence of such reporting.
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 President and CEO, Chairman of the Board,
Directors, Members of the Board and the Audit and Supervisory Board shall be held. The Audit and Supervisory
Board Members shall also set up regular meetings with the Accounting Auditor, Internal Audit Divisions andcorporate division to cooperate with them closely.
(ii) The Audit and Supervisory Board Members shall attend not only the meetings of the Board of Directors, butalso other important meetings, and express their opinions as necessary. In addition, they shall also examine therequests 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 finance andaccounting 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 an advancepayment of such expenses pursuant to laws and regulations, the Company shall promptly comply with therequest 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’s implementation of the corporate mission,” since fiscal
year 2016 we are working to reduce all conceivable risks associated with business processes, including thoserelated to disasters, accidents, and compliance, as well as to appropriately cope with risks that have surfaced.
The CSR Committee consists of eight subcommittees—Labor and Human Rights, Corporate Ethics andCompliance, Business Continuity Management (BCM), Environmental, Safety and Health, Information Security,
Trade Administration and Control, Quality, and Customer Satisfaction Improvement—each of which operates amanagement system from the viewpoints of basic CSR and strategic CSR.
In the area of crisis management, we have in place a set of Emergency Response Regulations stipulating that
we set up a group­wide response task force headed by the President and CEO in the event of a serious
interruption of business due to emergency over a certain level, such as a large earthquake or new global
influenza epidemic. Furthermore, we promoted activities to enhance employee awareness about the generalrules for action and response in an earthquake, such as stockpiling supplies at major bases in Japan,
distributing “survival cards” listing information about what to expect and do should an earthquake strike to all
officers and employees of the Nissha Group in Japan, and conducting emergency drills.
In the area of BCM, we have in place a Basic Plan for Business Continuity Management, which is used as abase for training primarily the management. This training serves to verify the effectiveness of the plan toward
ensuring business continuity and maximum service to our customers, securing the safety of our employees andtheir families, and contributing to the restoration of communities and of society at large.

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Risk Management Policy
The Nissha Group strives to accurately identify the risks we face, avoid unexpected loss, andappropriately control risks, thereby ensuring business continuity and enhancing our corporate value
toward realizing a mutually trustful Co­existence with our stakeholders.

1. We build and maintain a structure for responding to the various risks present in our businessenvironment.
2. We promote risk management at the managerial level toward conducting organization­wide
activities and preserving management resources.
3. In the event of an emergency, such as a situation with critical managerial consequences or anatural disaster, we work to minimize damage, resume business activities as quickly as possible,
and prevent recurrence while prioritizing the safety of human lives.
4. We conduct in­house training to enhance awareness of and the ability to respond to risks, andensure that each employ takes responsible, swift, and appropriate action.
5. We periodically review our risk management structure, including this policy, and make
improvements on a continuous basis to ensure effective risk management at all times.
July 1, 2015
Junya Suzuki
President and CEO
Chairman of the Board
Nissha Printing Co., Ltd.

Column “BCP Training for Earthquake Emergency”

On December 22, 2016, we conducted BCP training at Nissha’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 decision­making 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 real­life emergency.

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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 follow­up 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 full­time Audit and Supervisory Board Members every three months toestablish mutual cooperation with the Audit and Supervisory Board.
Audits in fiscal year 2017 focused on communication covering strategies and the execution thereof at
consolidated subsidiaries in Japan, and work processes at consolidated subsidiaries abroad. Internal Audit, asa third party, also performed an independent assessment of financial reporting­related internal controls,
including at subsidiaries that joined the Nissha Group through M&A, in accordance with the Financial
Instruments and Exchange Act.

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Corporate Ethics and Compliance
Guideline of the Corporate Ethics and ComplianceIn addition to establishing a basic guideline based on the Nissha Group’s Corporate Mission, Shared Values,
and Guideline of the Corporate Ethics and Compliance, we set forth 13 important points for the purpose of
appropriately executing the guideline. All executives and employees work to promote and thoroughly implement
corporate ethics and compliance.

Guideline of the Corporate Ethics and Compliance
1. We comply with laws, social rules and internal regulations along with high ethics, and act with
common senses and responsibilities.
2. We pursue the Co­existence with the Stakeholders such as Customer, Shareholder, Supplier,Society, and Employee.
3. We will immediately report and consult with supervisors or Hotline in case we find the violation or
the doubtful act against "Corporate Ethics and Code of Conduct".

13 important points
Relationship with Customer and Supplier
1. Free and Fair Competition
2. Prohibition of Corrupt Practices
3. Quality and Safety of Products
4. Protection of Intellectual Property
5. Appropriate Handling of Information and Resources
6. Compliance with Import/Export Regulations
Relationship with Shareholder
7. Handling of Corporate Information
8. Compliance with Regulations against the Insider Trading
Relationship with Society
9. Environmental Protection
10. Regional/Social Contribution
11. No Relations with Antisocial Forces
Relationship with Employee
12. Respect of Human Rights
13. Safe, Healthy and Comfortable Workplace

Promotion Structure and Initiatives
All Nissha bases in Japan and abroad appoint managers and group leaders in charge of promoting corporate
ethics and compliance. These managers and group leaders not only conduct training in their respective
divisions but also implement corporate ethics and compliance on a day­to­day basis through organizational
management, serve as a liaison for referring specific cases to Corporate Legal Affairs, and take on the role ofconsultant in their workplace. In order to increase awareness of the managers and group leaders, since fiscal
year 2017 we distribute quarterly issues of Corporate Ethics and Compliance News.
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On top of designating every October as corporate ethics and compliance month, we organize annual group­
wide training. In fiscal year 2017, we conducted practical training and testing tailored to each base’s duties,
laws, and customs. Overseas bases, in particular, held discussions on themes essential to a global corporategroup such as free and fair competition and prohibition of corrupt practices, and on a theme unique to us as amanufacturer, namely quality and safety of products. Through a questionnaire, participants reported any
conduct that might constitute a breach of corporate ethics and compliance. The information was analyzed, andthe results were reported to the Corporate Ethics and Compliance Subcommittee.
Since areas outside Japan are generally at higher risk of involvement in corrupt practices, we ascertained thesituation through a questionnaire, and based on the results, formulated a group­wide set of Nissha Anti­
Corruption Guidelines. For the prevention of insider trading, we cover regulations against insider trading in our
regular training programs in addition to educating employees through quarterly publications on the Nissha
intranet.
For production bases in Japan, in addition to group­wide training we organize independent sessions around thetheme of respect for human rights, focusing more on workplace relationships including the issues of power
harassment and sexual harassment.

Corporate Ethics and Compliance Structure

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Distribution of Added Value to Stakeholders
Our distribution of added value to stakeholders on fiscal year 2017 is given in the table below.
Distribution to employees increased over fiscal year 2016 due to the addition of consolidated subsidiaries.
Distribution to society was nearly level with the previous year and includes active sponsorship of events such as
museum and art exhibitions, in accordance with our Basic Social Contribution Policy.

Distribution of Added Value to Stakeholders

Stakeholders

Shareholders

AmountDescription(million yen)
1,293

Remarks
Figures published in financial

Dividends

results
Calculated by Corporate

Sum of expenses for salaries,
Employees

7,201

wages, bonuses, and retirement
benefits

Social Responsibility, using
results of the year ended
March 31, 2017 (excluding
personnel expenses included
in manufacturing costs)

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

470

Figures published in financial

Interests

results

Sum of taxes paid including
1,160

corporation tax, inhabitant tax,
and enterprise tax

Figures published in financial
results

Money and in­kind donations,provision of facilities, andemployees’ volunteering
Society62

services converted intomonetary value (using methods

Calculated by Corporate
Social Responsibility

established by Nippon
Keidanren)
Company(internal reserves)

Distribution of Added Value to Stakeholders(8,704)

Amount of increase in surpluses

30

Figures published in financial
results

CSR Report 2017

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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Human Rights
Basic Policy on Labor and Human Rights
We define Nissha’s principles on labor and human rights in a basic policy toward realizing our corporate missionof pursuing a “mutually trustful Co­existence with society.” The 10 principles of the United Nations Global
Compact and the code of conduct provided by the Electronic Industry Citizenship Coalition (EICC) were used as
reference in formulating the policy. The policy is translated from Japanese into the English, Chinese, Korean,and Malay languages for group­wide distribution.

Basic Policy on Labor and Human Rights
In order to realize a widespread mutually trustful "co­existence" with society, Nissha will observe theinternational norms, laws and ordinances related to human rights and labor standards and will makeefforts to continually improve human rights and labor standards.
1. Child labor: We will prohibit child labor and also implement relief measures.
2. Forced labor: We will eliminate all forms of forced labor.
3. Health and safety: We will secure the health and safety of our employees and provide a hygienic
workplace environment.
4. Freedom of association and the right to collective bargaining: We will guarantee the right 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 we will
not engage in verbal abuse.
7. Working hours: We will observe the laws, ordinances and labor agreements related to working
hours, rest breaks and holidays.
8. Remuneration: We will observe the laws and ordinances related to the payment of appropriate
wages.
June 16, 2014
Junya Suzuki
President and CEO
Chairman of the Board
Nissha Printing 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 anti­corruption. 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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Building and Operation of a Management System
We adhere to international norms and laws on human rights and labor standards, and strive for continuous
improvements in the content of our activities.
Our Fifth Medium­term Business Plan (FY2016–FY2018) promotes the building of a structure for compliancewith the EICC Code of Conduct at all Nissha Group bases, including those outside Japan, and at major
suppliers. In fiscal year 2016, we built and started to operate a labor and human rights management systemand, based on it, conducted internal audits of major Nissha Group companies. In fiscal year 2016, we built andstarted to operate a labor and human rights management system, and based on it, in fiscal year 2017,
conducted internal audits of major Nissha Group companies. Instances of noncompliance found through theaudits, such as poor record keeping of the contents of consultation from employees, have been address
through corrective measures at each company.
The Labor and Human Rights Subcommittee identifies anti­discrimination, anti­forced labor, diversity and equal
opportunities, training and education, and employment as material issues. In fiscal year 2018, it set targets inthe areas of work time management, expansion of women’s participation in business, and employment ofpeople with disabilities. In response to these targets, we are working to reduce CSR risks through the operationof our management systemAs can be seen, the CSR Committee leads operation of our management system
toward reducing CSR risks.

HotlineIn order to quickly grasp the facts, minimize risks, promote ethical conduct and compliance, and ultimately
enhance our corporate value, we have in place a system for internal reporting for all Nissha Group companies
in Japan as well as some abroad in the event of fraud, illegal activity, or unethical conduct by either anorganization or an individual employee. In the interest of neutrality and fairness, the hotline reaches a third party
served by an attorney’s office.
Our Internal Reporting Code protects informers from any unfavorable treatment by either the company or other
employees on account of their reporting, and obligates the acceptance of anonymous reporting. In fiscal year
2017, the hotline was used four times. The reports concerned labor management and the workplaceenvironment. We are working to create an environment in which employees can feel comfortable about
reporting even seemingly trivial matters, and to enhance employee awareness of this hotline through the
Corporate Ethics and Code of Conduct Manual, the Nissha intranet, and training toward further reinforcing
corporate ethics and compliance.

Hotline Organizational Chart

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Harassment Help DeskWith the aim of preventing and resolving rifts in workplace relationships, including sexual and power
harassment, on April 1, 2015, we established a help desk specializing in harassment, providing our employeeswith a clearer destination for discussing their concerns. In fiscal year 2017, the harassment help desk was used
five times.

Fair Evaluation and Treatment
We at the Nissha Group view evaluation systems as a mechanism for ensuring consistency between thecompany’s strategy and individuals’ goals, and for determining treatment accordingly. To this end, we conduct a
personnel evaluation of all full­time Nissha Group employees twice a year. The evaluations cover the level ofachievement of employees’ goals (accountability) and responsibility, and the results of which are reflected inbonuses, 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.
With the revision of our managerial personnel system in October 2014 and of our general personnel system in
April 2015, 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 of laborand 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 association and the right tocollective bargaining: We will guarantee the right to organize and the right to collective bargaining.”
In fiscal year 2016, the Information and Communication business was spun off as Nissha Printing
Communications, Inc. During this process, we held briefings for employees and discussions with the labor union
regarding labor conditions and the coverage of the labor union following the spin­off.
With the biennial revision of the labor contract in fiscal year 2017, we engaged in dialogue with the labor union
toward expanding women’s participation in business and otherwise creating workplace environments where
employees can live up to their full potential. As a result, we formulated a set of Private Day Care Expense
Coverage Regulations to prevent delays in the reinstatement of women employees after childbirth because they
could not enroll their child in a non­authorized nursery (in Japan, these are significantly costlier than thosecertified by local authorities, which have years­long waiting lists). In January 2017, one employee wasreinstated using the system.

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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 (October 2015)*3.
In January 2016, these three unions formed the Nissha Group Labor Union. While one union per company is
our basic approach to promoting well­disciplined organization and building sound relationships between laborand management, we recognize that regular exchange of information and coordinated action between labor
unions is necessary to resolve common challenges within the Nissha Group. Based on this understanding, we
at the Nissha Group have solid relationships and hold regular negotiations and discussions with our labor
unions.
Nissha Printing 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 improvement oflabor conditions and the growth of the Company,” and stipulates, “the Company shall respect the Union’s rightto organize, right to collective bargaining, and right to act as a group,” thereby guaranteeing basic labor rights
for union members.
Affiliated companies Nitec Industries, Inc. (NII) and Nissha Printing Communications, Inc. also hold negotiations
and discussions about employees’ labor conditions with their respective labor unions. The Workplace
Improvement Committee, established by both labor and management at Nitec Precision and Technologies, Inc.
(NPT), works to promote improvements in the workplace environment and in welfare benefits.
In fiscal year 2017, the Nissha Group had no report either of a strike or lockout or of a situation that infringed on
our employees’ freedom of association. We will continue to respect the mutual positions of both company andunion, and build a sound relationship between labor and management.
*1. As of the end of March 2017, the Nissha Labor Union has a membership of 748.
*2. As of the end of March 2017, the Nitec Industries Labor Union has a membership of 450.
*3. As of the end of March 2017, the Nissha Printing Communications Labor Union has a membership of 188.

Voice of the Labor Unions
At the Nissha Group Labor Union, one union per company is ourbasic approach to promoting well­disciplined organization andbuilding sound relationships between labor and management. Thatis, each union offers suggestions, negotiates between labor andmanagement, and performs checks true to the characteristics of thecompany. While member unions build on their individual strengths,
the association provides opportunities for regular sharing of
information, particularly about the unique challenges of the member
unions, and strives to nurture the Nissha Group as a whole.
Each member union holds regular Management Council meetings

Takashi Yoshioka
Executive Labor Leader
Nissha Group Labor Union

for exchanging views, questions, reporting, and suggestions. A
member union may request an extraordinary meeting for discussing and negotiating labor conditions.
Labor and management also cooperate in promoting work­life balance, safety and health, disaster
preparedness, and transportation, and work toward improvement.
The companies and their respective labor unions work hand in hand to strengthen their win­win
relationship and aim for work style reforms so that each company can continue to provide employeeswith a sense of fulfillment at work.

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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.

Labor Practices

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CSR Report 2017

Human Resources Development
We at Nissha believe our employees are our most important management resources. We work to develop
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 approach human resources development from the three areas of planned human resource
development, skill development, and career development. For each area, we aim to promote comprehensive
education incorporating the perspectives of training system, on­the­job training (OJT), medium­ to long­term
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 long­term career development and promote growth toward employees’ ideals.
(Provide opportunities to recognize the importance of and pursue career development.)

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CSR Report 2017

Training System (Major Programs by Area)
Area

Training
Nissha Academy (selective training for next­generation management

Planned humanresource development

candidates), rank­specific training, manager training, overseas appointee
training, etc.
Theme­specific training (leadership, logical thinking, presentation, etc.), foreign

Skill development

language training, accounting education, in­house TOEIC testing,correspondence course, etc.

Career development

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

Training System Model

Selective Human Resource Development
In 2013, we established Nissha Academy, an in­house institute for fostering human resources with moreadvanced, specialized knowledge. While we continue to expand on our rank­specific, theme­specific, andcareer design training programs, Nissha Academy employs a selective system to provide training.
Nissha Academy comprises a Business School, which provides knowledge and skills in the proposal andexecution of management strategies including accounting, finance, marketing, and human resources to foster
leaders capable of company and business oversight; a Management of Technology (MOT) School, whichdevelops leaders capable of linking technology with management to create new business; and a Monozukuri
School, which produces leaders capable of taking a strategic, scientific approach to “monozukuri,” ormanufacturing, and translating management strategies into reality. The three schools open in rotation each year,with fiscal year 2017 being the turn of the Business School. Graduates of each school are given opportunities topractice what they have learned through involvement in projects and the drafting of medium­term businessplans, for a consistent human resources development program that integrates all three areas of planned humanresource development, skill development, and career development.
As a gateway to Nissha Academy, in fiscal year 2016, we launched business literacy training, a short­term
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 the current situation of their company and discuss its challenges throughgroup work and the creation of individual reports.

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Programs to Promote Diversity
We are working to realize the Diverse Capabilities cited in the set of Shared Values that forms our Corporate
Philosophy. In fiscal year 2017, we organized training for all managerial staff themed around the expansion of
women’s participation in business. This provided the opportunity for managers to understand the social
background and necessity of as well as Nissha’s activities in promoting diversity and women’s advancement in
the workplace, and to think about the role and empowerment of women in their respective divisions. In fiscal
year 2018, we plan to expand the program to general women employees.

Programs to Support Employees’ Will to Learn and Grow
In addition to compulsory rank­specific education programs for general employees to managerial staff, we haveintroduced a voluntary “challenge program” for employees aiming for promotion to the highest ranks of thegeneral employment level. Developed in line with our personnel system’s objective of enabling employees toselect their own career path, the program provides opportunities to learn about leadership for employees withthe will to step up in their career.
We also offer many open­call training courses, which employees may sign up for in line with their choice of
personal development theme. Examples are courses designed to foster universal business skills such as logicalthinking and presentation, and to develop linguistic skills required of employees of a global company. Our
correspondence courses and self­learning programs via Skype support voluntary learning by covering half theprice of subsequent courses for graduates.

Training Programs in Fiscal Year 2017
The total number of hours dedicated to major training programs in the Nissha Group in Japan and training hours
per employee (by gender) in fiscal year 2017 are given in the table below.

Male
Annual training hours
Training hours per employee*

FemaleTotal

17,605

7,609

25,214

9.25

17.86

10.82

*Hours are calculated based on the number of full­time employees of the Nissha Group in Japan.

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CSR Report 2017

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 corporate mission. One of those values, Diverse Capabilities, declares, “We respect diversity thatenhances our organizational capabilities and drives growth.” 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 totheir 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. More than one­third of our employees work at Nissha Group companies outside Japan. Locally hired
employees are appointed to upper management positions at overseas bases. This includes the CEOs of four
subsidiaries served by local hires.

Composition by region (Nissha Group, as of the end of March, 2017)* Employees exclude temporary employees.

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Composition by employment status (Nissha Group, as of the end of March, 2017)* Figures exclude directors by a delegation agreement

Composition of Nissha People

Fiscal Year

GenderCorporate

Directors

Nissha fellows

officers

Managerial

Employees

staff(total)Average age

Average yearsof employment

Male

7

14

1

177

666

39.8

14.8

Female

0

0

0

6

195

32.9

8.7

Male

7

13

1

182

662

40.9

15.3

Female

0

0

0

6

175

33.9

9.4

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

End of FY2013

End of FY2014

End of FY2015

End of FY2016

End of FY2017

Note 1: Directors include independent directors.
Note 2: Employees exclude temporary employees.

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CSR Report 2017

Composition by age (Nissha Printing Co., Ltd., as of the end of March, 2017)

Number of employees (Nissha Group, as of the end of March, 2017)* Figures exclude temporary employees

Percentage of People with Disabilities Employed at Major Group Companies
Private enterprises in Japan with 50 or more employees, as a rule, are required to employ a given percentageof people with disabilities. Nissha Group companies that fall under this category each work to meet the statutory
rate. At Nissha Printing Co., Ltd., Human Resources organizes regular interviews with employees withdisabilities 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 long­term employment in tune with the capabilities andcircumstances of individual employees.
People with disabilities accounted for 2.24% of the Nissha Printing Co., Ltd. workforce as of the end of fiscal
year 2017, for a slight decrease compared to the previous year. Those employed at Nissha Printing
Communications, Inc., numbered zero as of the end of fiscal year 2016, but increased to two in fiscal year 2017
for a rate of 0.69%.
Each applicable group company plans to continue making efforts to meet and maintain the target statutory rate.

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CSR Report 2017

Women employees’ participation in business

Activities toward Expanding Women’s Participation in Business
True to the Diverse Capabilities cited in our Shared Values, Nissha aims to be a corporate group where
employees can live up to their potential regardless of nationality, gender, or age.
Amid growing demand in Japanese society, we recognize women employees’ participation in businessas a particularly important priority, and to this end launched a project team led by Human Resources in
July 2014. Nissha Printing 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 andAdvancement 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.

Training for Management and for Women Employees
In fiscal year 2016, we kicked off our initiatives to expand women’s participation in business withtraining for the management and for women employees primarily in the Kyoto and Osaka areas.
In fiscal year 2017, we organized sessions featuring more practical content for managers at all Nissha
Group bases in Japan.
Since many managerial positions in the Nissha Group are filled by male employees, training for the
management included exercises covering the differences in approach to communication between men
and women, and group discussions on fostering women employees. Feedback from the participants
centered on, “The session helped me understand women’s thought process, and this will be useful in
my communication efforts in future.” Afterward, the participants actually started drawing on the know­
how they acquired through training to communicate with women employees at their workplace.

We also organized training for women employees in not only managerial but also general positions.
The sessions were designed to encourage women employees to look back on their career thus far,understand their strengths at present, and create an action plan for the future with the aim of building
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CSR Report 2017

awareness of their career path ahead. In a follow­up program, interviews were arranged between theparticipants and their respective superiors for the purpose of raising women employees’ sense of job
fulfillment. In fiscal year 2018, we will continue organizing sessions for women employees at all Nissha
Group bases in Japan.
By first developing understanding of women employees in managers, and then encouraging women
employees to think about their career path, both the management and the women employees in eachdivision can engage in dialogue and practice what they have learned through training. Not merely
approaching individuals but promoting communication between them thereafter—we believe this makes
the training more effective.
In fiscal year 2018, we plan to conduct new training for women manager candidates.

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 April ofthe 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. Employees using thesystem have been reinstated at work since January 2016.
In August 2016, we opened a website dedicated to introducing employees participating in businesscalled “We are Nissha People!” It presents interviews with employees in various positions, such as men
as well as women employees who achieve work­life balance, women managers, and employees
working at Nissha Group bases abroad.
We are Nissha People! : http://www.nissha.com/people/ *Only available in Japanese.

Major Initiatives to Date

Launch project team
FY2015Interview women employees
Distribute Work­Life Balance Support Guidebook

Open NISSHINE portal site
FY2016

Administer employee questionnaire
Organize forum on women’s participation in businessConduct training for management (department directors and above)

Establish system for sharing the expense of using non­registeredchildcare facilities
Open “We are Nissha People!” website for introducing employees
FY2017

participating in businessConduct training for management (all managers including groupleaders)
Conduct career development training for women employees

FY2018 (scheduled)

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

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CSR Report 2017

Deliberate on system for reinstating employees who have retired
due to their spouse’s job transfer

Declaration on Action by a Group of Male Leaders who will Create aSociety in which Women ShineIn May 2017, Nissha Printing Co., Ltd. President and CEO Junya Suzuki joined the “Declaration on
Action by a Group of Male Leaders who will Create a Society in which Women Shine,” supported by the
Cabinet Office.
On March 28, 2014, a kick­off meeting was held at the official residence of Japan Prime Minister Shinzo
Abe to support “Women who shine,” creating a nationwide movement headed by industry leaders to
support women who will and do shine in various fields.
Amid this movement, male leaders who had already been promoting the empowerment of womencompiled the “Declaration on Action by a Group of Male Leaders who will Create a Society in which
Women Shine.”

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Support for Diverse Work Styles
The Nissha Group has many initiatives to support diverse work styles and achieve work­life balance for
employees.

Introduction of 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.

Promotion of the Use of Paid Leave
To promote the use of paid leave, we encourage employees to take two days each under our summer andwinter vacation planning system. The period covered by the system was limited to summer (July–September)and winter (December–February) until fiscal year 2017. This was expanded to the full six months of the first andsecond halves of the year since fiscal year 2018 for further ease of use. Also, we offer a further two days inwhich 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. We plan tocontinue aiming for improvements in the percentage of paid leave used.

Average days and percentage of annual paid leave used (Nissha Group in Japan)

Reduction of Overtime WorkWe are promoting a reduction of overtime work with the aim of encouraging employees to improve their work
process and the way they manage their time, and thereby achieve work­life balance. Each month, departmentsthat had a large amount of overtime work are questioned as to the causes, future outlook, and physicalcondition of employees. Should any issue come to light, measures for improvement are sought between laborand management, and the findings are reflected in personnel assignment decisions.
Honoring our labor­management agreement drawn up in compliance with Article 36 of the Labor Standards Act,
twice a month we notify all divisions of overtime hours recorded up to that day, and further alert managers ofdivisions in which overtime hours are likely to exceed the limit stipulated in the agreement. As a result of efforts
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to raise awareness about overtime work, in fiscal year 2017 the amount of overtime work decreased by 6.1%
compared to the previous year, for a continuous year­on­year reduction.
The Japanese government’s guidelines for promoting work­life balance set a nationwide target of reducing thepercentage 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.
In fiscal year 2018, we plan to designate two days a month for clocking out at the scheduled time in efforts tofurther reduce overtime hours.

Child­rearing 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 Next­generation Children, many of our efforts in child­rearing
support exceed statutory guidelines.

Major child­rearing 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
Child­rearing 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 child­rearing*

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)
PeriodChild­rearing 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

Support for Diverse Work Styles

Nissha Group in Japan
Total 240 working days

47

Statutory coverage
Total 93 days

CSR Report 2017

Support system
Shorter hours for family care*Days off for family care

Nissha Group in Japan
Three years from starting date
3 hours per day

Statutory coverage
Three 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 allow employees to shorten their work time by three hours. For example, employees who normally workeight­hour days may shorten their work time by three hours to five­hour days.
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 child­rearing, family care, school events,
and days on which a child’s kindergarten or school is closed.

Distribution of Work­Life Balance Support Guidebook
To support our employees in achieving work­life balance, we created a Work­Life Balance Support Guidebook
containing information on both in­house and outside systems for child­rearing 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 intranet since April 2015, and useful information on welfare services were added in
April 2016.

Kurumin Certification
In 2017, Nissha Printing Co., Ltd. received “Kurumin” certification for the third consecutive
term, following 2009 and 2013. Nissha Business Service Co., Ltd. (NBS) received
certification in 2015, followed by Nitec Precision and Technologies, Inc. (NPT) in 2016.
* Use of the Kurumin Mark is permitted for companies certified as being next­generation supportive by
the Minister of Health, Labour and Welfare. Certification is granted to companies that draw up andimplement a medium­term action plan, and submit it to their prefectural labor bureau.
Kurumin Logo

Status of Major Long­term Leave and Time Taken Off from Work (Nissha Group in Japan)
The number of employees who used child­rearing leave, worked shorter hours for child­rearing, and took days
off for child nursing are given in the graphs below.
To promote participation of men employees in parenting, in fiscal year 2017, we started introducing systems
related to childbirth and child­rearing for male employees who have submitted a birth certificate as well as theirsuperiors. Various initiatives are seeing success, and the number of employees who use our child­rearing
support systems is increasing year by year.

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CSR Report 2017

Number of employees who used child­rearing leave

Number of employees who worked shorter hours for child­rearing

Number of employees who took days off for child nursing

Reinstatement rate after child­rearing leave: Male 100%, Female 100%
Reinstatement rate = Number of employees reinstated after child­rearing leave in the current fiscal year ÷ Number of
employees expected to be reinstated after child­rearing leave in the current fiscal year x 100

Retention rate after child­rearing leave (1 year): Male 92%, Female 100%

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CSR Report 2017

Retention rate = Number of employees remaining on March 31 the current fiscal year after being reinstated after child­rearing leave in the previous fiscal year ÷ Number of employees reinstated after child­rearing 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 Work­Life Balance Support Guidebook
containing information on both in­house and outside systems for family care, and publishing the contents on the
Nissha intranet.

SupportsystemFamily careleave
Shorter

Gender

FY2013

FY2014FY2015FY2016FY2017

Male

0

0

0

0

0

Female

0

0

0

0

0

Male

0

0

0

1

1

Female

1

0

0

0

0

Male

0

4

1

4

7

Female

2

2

2

4

5

hours forfamily careDays off forfamily care

Support for Reinstatement after Long­term Leave
For employees reinstated at work after long­term 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 also arrange periodic consultations with anindustrial physician to confirm the considerations necessary in the workplace, and have a system in which
reinstated employees may shorten their work time by up to two hours per day for a period of six months.

Work at Home System
In fiscal year 2015, we introduced a work­at­home system with the aims of promoting harmony between
employees’ work and life, and improving their work efficiency. The system enables employees living with a childbefore completion of elementary school and employees providing family care to work at home either on two fulldays a week or for a number of hours a day. In fiscal year 2017 a total of seven employees used the system(one during pregnancy, five for child­rearing, and one for family care).

Outpatient Sick Leave System
In fiscal year 2016, we introduced an outpatient sick leave system with the aim of supporting employees who
require long­term outpatient treatment to continue working. The system enables employees with specified
disorders to take 10 days off per year for treatment. One employee used the system in fiscal year 2016; thefigure has increased to two since April 2016.

Internal Job Posting System
The Nissha Group introduced an internal job posting system in fiscal year 2012 with the aim of providing
employees with the opportunity to choose their own career path as well as appoint employees to positions thatreflect 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 the system are playing an activerole in their new division.

Support for Diverse Work Styles

50

CSR Report 2017

Status of utilization
Fiscal Year

FY2013

Number of7

job posting
Successful

FY2014FY201533

FY201627

FY2017
80

MaleFemaleMale

FemaleMale

FemaleMale

FemaleMale

Female

6

4

3

2

3

3

1

0

­

­

applicants(transferees)* Job openings posted twice a year up to FY2015, and once a year since FY2016

Awarding system
The Nissha Group has in place various awarding systems that aim to reward praiseworthy endeavors andcreate a setting in which the employees responsible for the endeavors influence and motivate the company andorganizations as a whole. In fiscal year 2013, we reviewed the contents of our awarding systems.
From fiscal year 2013 to fiscal year 2017, as many as 416 employees received the most prestigious President’sAward, 238 employees the Top­Line Award recognizing contributors to sales expansion, and 627 employees the
Nissha People Award celebrating workplace stars who epitomize our Shared Values and Code of Conduct. The
awards are presented globally across the Nissha Group, with recipients including employees at overseas
bases.
Every two years, we also organize Technology Presentation Meetings with an eye to discovering andrecognizing excellent technologies with great potential, and ultimately inspiring our engineers.

Support for Diverse Work Styles

51

CSR Report 2017

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. We promote thoroughawareness of this policy through postings on the Nissha intranet and at each base, and draw on it as a guide forvarious activities. The results of our efforts are reviewed, reflected in safety and health objectives set each year,
and used as a base for further initiatives.

Occupational Safety and Health Policy
Nissha recognizes that ensuring the safety and health of all people engaged in our business activities 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 Co­existence 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 the generalpublic.
November 6, 2014
Junya Suzuki
President and CEO
Chairman of the Board
Nissha Printing Co., Ltd.

Safety and Health Management System / Safety and Health Subcommittee
The Safety and Health Subcommittee of the CSR Committee, responsible for the safety and health activities of
the Nissha Group, reports on the targets and progress of activities carried out in line with our Safety and HealthManagement Manual, on safety and health performance such as occurrence of work­related accidents, and on
internal audits and corrective measures based on the audits. It reviews whether our management system isfunctioning effectively, oversees the Safety and Health Committees operated by each base, and works tostandardize and upgrade initiatives 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 from each workplace.
The members meet to report on work­related accidents and corrective measures on them, and to exchange
views and propose measures for improvement toward realizing a safe and comfortable workplace.

Safety and Health52

CSR Report 2017

Safety and Health Management Structure

Reduction of Workplace Risks – Risk Assessment
We continue in our efforts to conduct point­based 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 Health53

CSR Report 2017

Occurrence of Work­related Accidents
Accidents involving workers being caught or trapped in machines increased in fiscal year 2017. The overall
number of accidents decreased by 34.6% from the previous year, however, thanks to efforts toward
improvement including creative use of protective equipment. A rise in accidents resulting in days of leave led to
an increase in the frequency of work­related accidents.

Occurrence of Work­related Accidents (Nissha Group in Japan)
Item

FY2013

Number of work­
related accidents
Frequency of work­
related accidents*1
Severity of work­
related accidents*2
Number of working
days lost

FY2014FY2015FY2016FY2017

21

16

17

26

17

1.15

1.21

0.92

1.16

1.99

0.06

0.00

0.04

0.02

0.02

434

16

284

139

146

*1. Frequency of work­related accidents: Refers to the number of injuries and casualties resulting from work­related accidents(four or more days of leave) per one million working hours*2. Severity of work­related accidents: Refers to the severity of work­related accidents in terms of the number of working days
lost per one thousand working hours
Definitions from work­related accident statistics, Ministry of Health, Labour and Welfare* Figures for frequency of work­related accidents in FY2014, FY2015, and FY2016 have been reviewed and revised since lastyear’s report.

Number of Work­related Accidents (Nissha Group in Japan and major overseas
production bases, by gender)
The number of work­related accidents at the Nissha Group in Japan and major overseas production bases infiscal year 2017 is given in the table below. Overseas figures represent accidents that resulted in days of leave.

Male

Female

Total

Japan

14

3

17

North America

6

5

11

South America

6

0

6

Europe

6

0

6

Asia

6

1

7

Safety and Health Education and Training
We provide education and training required in workplaces based on our Safety and Health Education andManagement Regulations. In addition to regular programs comprising training for workplace promoters of safety
and health, training in procedures for handling and assessing the risks of chemical substances, and lessons in
CPR methods such as AED and chest compression in preparation for emergencies, in fiscal year 2017 weplanned and organized a practice and training session inviting an exercise coach and dietician to serve as
outside instructor and address the rise in Japan of accidents involving falling objects or people.

Safety and Health54

CSR Report 2017

Training for workplace promoters of safety and healthTraining by outside instructor

Certification as Health and Productivity Management Organization (White 500)

Nissha Printing Co., Ltd. was certified as a Health and Productivity Management Organization in the large
enterprise category (White 500) at an announcement ceremony on February 21, 2017, co­hosted by theJapanese Ministry of Economy, Trade and Industry, and Nippon Kenko Kaigi. Certification was granted inrecognition of our initiatives for promoting health­conscious activities, specifically including those posted below.
We will continue to encourage the participation of all in creating safe, comfortable workplace environments andpromoting sound physical and mental health.

Prevention of Lifestyle Diseases
We are carrying on with our efforts in exercise, diet, and smoking
cessation as countermeasures for metabolic syndrome with the aimof preventing lifestyle diseases. In fiscal year 2017, we organized
health courses by an industrial physician and an original event for
gauging blood­vessel age toward promoting smoking cessation. In
the health courses by an industrial physician, titled “Impact ofcigarettes on the smoker and others,” participants learned about thehealth hazards of smoking, the effects of passive smoking, andHealth event

methods for quitting smoking. In the event for gauging blood­vessel
age, employees received an explanation of their measurement
results along with advice on improving dietary and lifestyle habits using a specially prepared leaflet. This proved
to be a good opportunity to reflect on lifestyle habits and gain knowledge about preventing vascular diseases
such as arteriosclerosis. For promoting smoking cessation, we continue to organize Smokerlyzer events tomeasure the level of carbon monoxide in smokers’ breath.
As a high­risk approach, we further undertook measures to maintain health by recommending visits to a medical
institution to employees who required either detailed examination or re­examination as a result of their healthcheckup, and provided specific health guidance with support from a designated medical institution to employees
who required it as a result of their health checkup.

Mental Health Support
As part of our mental health support offering, we organize mental
health classes, covering self­care and line care, by a clinicalpsychologist each year since fiscal year 2010, and introduced stresscheck surveys in fiscal year 2013 ahead of a mandatory systemcoming into effect in December 2015. In fiscal year 2017, we
distributed a mental health self­care guide to all employees so thatthey can recognize and cope with stress based on their survey
results.
“Employee­friendly Workplace” page in Nissha
internal newsletter

We also continue to promote the creation of employee­friendly
workplaces. In fiscal year 2015, we provided line care education

about supporting the process of improving workplace environments. And in fiscal year 2016, we sought pilot
workplaces for administering general checkups with the aim of creating pleasant workplaces from the bottom

Safety and Health55

CSR Report 2017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 the members’ input, and set to work
topic by topic. Ideas for creating employee­friendly workplaces are published in our internal newsletter tofamiliarize employees with the concept. In future, we plan to spread the initiative across Nissha Group
companies.
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 of privacy protection, the service is used
several times each year. For employees who work long hours, our healthcare staff and industrial physicians
offer consultation to understand their health condition and work with their supervisor and the human resources
division to provide required follow­up guidance.
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 uponreinstatement, 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.

Mental health support structure

Safety and Health56

CSR Report 2017

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.”

The Environment

57

CSR Report 2017

Environmental Policy and Management Structures
The Environmental, Safety and Health Subcommittee of the CSR Committee aims to practice an even higher
level of management suitable to business operations of the Nissha Group. It builds and operates anenvironmental, safety and health management system incorporating an environmental management system
based on ISO14001, a safety and health management system based on OHSAS18001, and customer
requirements, and works toward continuous improvement at bases of the Nissha Group in Japan.
The subcommittee comprises an environmental and safety management representative, and subcommittee
members selected from each headquarters division and site. The Environmental and Safety Management
Group in Corporate General Affairs functions as secretariat and operates the subcommittee under the generalsupervision of the management. In basic CSR, where we aim to strengthen our foundation as a corporation, thesubcommittee builds and maintains a structure for conforming to global standards such as that provided by theElectronic Industry Citizenship Coalition (EICC). And in strategic CSR, it identifies material issues and works toresolve them. Through these activities, the subcommittee promotes risk management in the areas ofenvironmental, safety and health, and plays a role in corporate governance across the Nissha Group.
Our Environmental Policy and Occupational Safety and Health Policy aim for business development and therealization of a sustainable society. We work to familiarize these policies widely throughout the group via the
Nissha intranet, and further promote the policies to all employees by posting the policies at each base of the
Nissha Group.
Toward achieving the Nissha environmental objectives and the Nissha safety and health objectives, which serveas group­wide medium­term goals, each factory and organization sets its own targets, and creates andimplements an action plan. Environmental targets are linked to quality targets and higher­level key performanceindicators (KPI) so that they relate directly to everyday tasks.
Nissha Group sites in Japan obtain collective ISO14001 certification. Overseas sites obtain certificationindividually, and undertake initiatives to build and maintain a structure in conformance with global standards
such as the EICC Code of Conduct as part of basic CSR activities. We plan to continue promoting activities for
improving our efforts in environmental, safety and health into the future.

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 and energy.
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. Co­existence with Society
We promote open dialogue with our customers, shareholders, suppliers, employees, and society

Environmental Policy and Management Structures

58

CSR Report 2017

through our efforts to preserve the global environment.
April 1, 2012
Junya Suzuki
President and CEO
Chairman of the Board
Nissha Printing Co. Ltd.

Continuous Improvements in the Environmental Management System (EMS)
We have extended the scope of application of our EMS to not only major production bases but also small
production bases and sales bases with little impact on the environment. By dividing these EMS sites into
ISO14001 certification sites and non­certified sites, and checking and correcting key management items at eachlocation, we operate an effective EMS that sets meaningful priorities in tune with the actual circumstances ofeach site.
ISO14001 certification sites, which are also our major production bases, implement a unique risk assessment
process based on environmental hazards, taking into account impact on the local community and the risks of asuspension in factory operations. The center of activities is assessment of positive risks, which we view as both
environmental performance to be improved in sync with business targets and quality targets, and negative risks
to be maintained, managed, and improved through environmental risk assessment. In fiscal year 2017, FIS Inc.
was transferred into the scope of application of the Nissha Group EMS while maintaining its ISO14001
certification.
We build and operate a leaner internal audit structure since fiscal year 2016, when we combined environmental
internal audits with safety and health internal audits. Our internal audits are conducted based on the EICC Codeof Conduct as well as our customers’ unique codes of conduct, which are based on that of the EICC, with theaim of building a structure for conformance with EICC throughout the Nissha Group.
In fiscal year 2018, we plan to continue environmental, safety and health internal audits toward improving our
performance in these areas.

Nissha Environmental Management Structure

Environmental Policy and Management Structures

59

CSR Report 2017

Energy Management and Environmental Communication Structures

Environmental Policy and Management Structures

60

CSR Report 2017

Environmental Objectives and Status of Achievement
The Nissha Group environmental objectives set in April 2015 serve as medium­term objectives covering thethree­year period from fiscal year 2016 to fiscal year 2018 for the Nissha Group in Japan. In fiscal year 2017,
the second year of this period, each factory and relevant division aimed to achieve its individual environmental
targets toward achieving the objectives of the Nissha Group in Japan as a whole.

Nissha Environmental Objectives

1. Prevention of pollution
Target: Zero environmental accidents (accidents that affect areas outside the factory)
Reduce the possibility of environmental risks (by one risk level) by the end of fiscal year 2018
Certification sites implement measures to reduce environmental risks*1 classified as H2 or more on thehazard assessment list (make efforts to attain one risk level lower)

・The degree of severity may not change after measures are implemented in some cases
・H2 or more refers to hazards on the hazard assessment list that affect areas outside the factory
・H2 is equivalent to “maintain” in the conventional classification, and should be addressed inaccordance with the designated procedure*1. The risk of environmental hazards by degree of severity and possibility, assessed in nine levels in a matrix (Risklevels from highest to lowest: VH, H1, H2, H3, H4, L1, L2, L3, VL)

2. Prevention of global warming
Target: Reduce CO2 emissions rate (basic unit) by 3% or more by fiscal year 2018
Base: Average of fiscal year 2015 results
Companies classified as “specified business operator” in the Act on the Rational Use of Energy
implement measures listed in their medium­ to long­term plan
Certification sites reduce annual CO2 emissions rate by 1% or more compared to the previous year bybasic unit, derived from factors such as production volume, through improvements in work processes(efficiency) and quality

・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

・A default emission factor (0.555 kg­CO2 / kwh) is used to monitor fluctuations resulting frominitiatives
3. Reduction of waste
Target: Reduce waste generation rate (basic unit) by 3% or more by fiscal year 2018
Base: Average of fiscal year 2015 results(1) Control waste generation
Certification sites reduce annual waste generation rate by 1% or more compared to the previous year
by basic unit, derived from factors such as production volume, through improvements in work
processes (efficiency) and quality

・Each organization may set KPI or quality targets (nonconforming product rate, go­through rate, etc.)
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)(2) Promote zero emissions
Bases that have achieved zero emissions work to maintain it; those that have notachieved zero

emissions work to achieve it(3) Reduce cost of waste treatment
Practice cost reduction by promoting multi­sourcing and resource reuse

Environmental Objectives and Status of Achievement

61

CSR Report 2017

4. Reduction of hazardous chemical substances
Target: Certification sites reduce usage rate of hazardous chemical substancesWork to reduce {(usage or purchase volume) / (production volume, treatment volume, or number ofunits)}(Certification sites set individual targets)
5. Environment­conscious design
Target: Introduce the viewpoint of energy and resource savings, durability, and recycling into
the product design stage
Design environment­conscious processes and reduce the environmental impact of production

Results and Assessment in Fiscal Year 2017
1. Prevention of pollution
Assessment

Satisfactory
ISO14001 certification sites are working on environmental risk management and measures
to reduce environmental risks. All sites attained one risk level lower in fiscal year 2016, andResults

have maintained this status since. Measures in fiscal year 2017 focused on the training in
response to substance leakage and training for emergencies, on top of continuous efforts inrainwater management. As a result, following the previous year we maintained zeroenvironmental accidents and achieved our environmental objective.

2. Prevention of global warming
Assessment

Poor
In measures to manage CO2 emissions by basic unit, major sites of the Nissha Group in
Japan combined recorded 2.00 in fiscal year 2017 (compared to fiscal year 2016 results as1.00), not achieving our target of 0.99 or less. The result owes primarily to a change initems produced at Nitec Precision and Technologies, Inc. (NPT) Kaga Factory. Other sites
combined, excluding the Kaga Factory, recorded 0.83, achieving our target.
In a breakdown by site, NPT Himeji Factory saw dramatic improvement thanks to anincrease in production volume coupled with small­group activities to boost efficiency. Nitec
Industries, Inc. (NII) Koka Factory also improved on its target by basic unit, even with

Results

production volumes remaining level, owing to small­group activities to improve efficiency.
Nitec Printing Co., Ltd. (NPC) failed to meet its target by basic unit despite efforts toimprove efficiency in line with a decrease in production volume due to the outsourcing of
web offset rotary printing. Nissha Printing Co., Ltd. did not meet its target due to a decrease
in total floor area with upgrading work in the headquarters premises.
The Environmental, Safety and Health Committee of the CSR Committee has identified
management by basic unit as an initiative to carry on into fiscal year 2018 as a material
issue, and will continue activities toward improvement with the goal of setting a new basic
unit linked more closely to quality activities.

3. Reduction of waste
Assessment
Results

Poor
In measures to reduce waste, major sites of the Nissha Group in Japan combined recorded
a waste generation rate of 1.26 in fiscal year 2017 (compared to fiscal year 2016 results as1.00), not achieving our reduction target of 1% or more. The result owes primarily to a
decline in efficiency from the change in items produced at NPT Kaga Factory. Other sites

Environmental Objectives and Status of Achievement

62

CSR Report 2017

combined, excluding the Kaga Factory, recorded 0.91, achieving our target.
By site, all with the exception of NPC achieved their target. NPC did not meet its target
even though improvements in work efficiency led to a reduction in the amount of waste
generated.
In the promotion of zero emissions (recycling and resource reuse rate of 99.5% or more),NPT Kaga Factory is continuing and enhancing efforts to reduce the amount of wastewatersludge generated, which must be sent to landfill. Our recycling and resource reuse rate isimproving steadily from 88.1% in fiscal year 2015, to 91.8% in fiscal year 2016, to 97.5% in
fiscal year 2017, and we aim to achieve zero emissions in fiscal year 2018.

4. Reduction of hazardous chemical substances
Assessment

Unsatisfactory
In measures to reduce hazardous chemical substances, NPT Himeji Factory achieved its

Results

target by basic unit by working to prolong the life cycle of developer and stripping solutions.
NPT Kaga Factory failed to meet its target. NII Koka Factory did not meet its target despite
efforts to reduce the usage rate of organic solvents such as toluene and xylene.

5. Environment­conscious design
Assessment

Satisfactory
In a new initiative starting in fiscal year 2016, we added to our environmental objectives theconcept of environment­conscious design, which introduces the viewpoint of environmental

Results

consciousness and the reduction of environmental impact into products and production
processes. In fiscal year 2017, FIS Inc. (FIS) tentatively began using an environmental
assessment sheet, and is gauging the benefits. NPT Himeji Factory embarked on theinitiative of designing thinner base materials.

Environmental Objectives and Status of Achievement

63

CSR Report 2017

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 resourceand energy usage (input) and gas, water, and waste emissions (output). The results for the Nissha Group in
fiscal year 2017 are given in the table below.

Input and Output at Nissha Group Production Bases
Input and environmental impact were affected in fiscal year 2017 by changes in business operations and initems produced as well as an expansion in the scope of coverage of our surveys. In a breakdown by business,
Industrial Materials saw an increase in the usage of ink by about 11% and solvents by 2% at Nitec Industries,
Inc. (NII) Koka Factory, a major production base of transfer foil. The result comes from progresses in high mix,
small lot production and an increase in products involving multiple processes, such as two­step printing,although production volumes remained level. Owing to an improved yield rate, however, usage of PET and acryl
film decreased by roughly 7%.
Devices saw a decline of about 21% in materials used in product manufacturing processes owing to a change initems produced at Nitec Precision and Technologies, Inc. (NPT) Kaga Factory. Information and Communication
saw a decline of some 31% in the usage of paper due to the outsourcing of web offset rotary printing at Nitec
Printing Co., Ltd. (NPC) Yachiyo Factory.
In the Nissha Group overall, input increased about 2.7­fold in fiscal year 2017 with the addition of subsidiaries
such as the AR Metallizing Group (ARM), the Graphic Controls Group, and Si­Cal Technologies, Inc. to thescope of coverage of our surveys. Paper and cardboard accounted for roughly 76% of all materials used withthe addition to the Industrial Materials business of ARM, which produces mainly metallized paper. Resinmaterials accounted for 11% of the total, and chemical substances 5%. As for output, CO2 emissions increased
by about 24% compared to the previous year for the Nissha Group overall.

Environmental Impact as a Result of Business Operations

64

CSR Report 2017

Industrial Materials

INPUT

OUTPUT

Production bases in Japan

Production bases in Japan

PET/acryl film

1,766tSolvents

1,515tGravure Ink

1,568tRecyclable resources

Waste containing(items sold fornoble metals

recycling)
Metal waste
Resin waste

Others198t
4,441tPaper waste
DevicesMaterials used in
product manufacturing

4,966tRecyclable resources

processes

Waste plastic(industrial waste)
Iron scrap, waste

Information andOthers

310t

Paper

14,357t

Ink

171t

Others103t

cans
Waste solvents, waste

Communication

ink, waste cloth
Waste acid, alkali
6,618tSludge, others
FIS

Metallic materials

2t

Resin materials

2tHalf­finished goods

31t

Waste for simple

General businessincineration/landfill

waste
Others (industrial
waste)

Total for production

280t

24,989tbases in Japan

Total for production

11,339tbases in Japan

Overseas production bases

Overseas production bases

Resin

11,041t

Molds and molding

Total waste
Total for overseas

66tmaterials
Touch sensors

5,036tproduction bases

1t

Paper

58,364t

Cardboards

1,409tAluminum

44t

Chemical substances

1,180tOthers414t

Total for overseas

72,519t

production bases
Total for Nissha

97,508t

Group

Including production bases in Japan and overseas
Energy5,036tIncluding production bases in Japan and overseas

Electricity

196,690MWh

Gas

9,061,000m3

Tap water

2,491,538m3

EmissionsCO2

128,430t

VOC (including
volume of after

Water

Underground waterIndustrial water

Environmental Impact as a Result of Business Operations

combustion andtreatment)

30,095m3
Wastewater

1,687,118m3

65

1,579t2,214,874m3

CSR Report 2017

Prevention of Further Global Warming
Status of CO2 Emissions at Nissha
In fiscal year 2017, CO2 emissions from the Nissha Group in Japan totaled 93,407t­CO2, remaining nearly levelwith 93,445t­CO2 in the previous year. The result comes from an increase in emissions from Nitec Precision
and Technologies, Inc. (NPT), which scaled back mass production, and a significant decrease in emissions withthe closure of Nitec Industries, Inc. (NII) Tsu Factory.
Emissions from NPT, responsible for production in the Devices business, amounted to 63,437t­CO2 in fiscal
year 2017, for a roughly 2% increase compared to 61,979t­CO2 in the previous year. Emissions from NPT
Himeji Factory were 39,401t­CO2, for a year­on­year increase of 13% over 34,935t­CO2, due to an increase inproduction volume. This was amplified by additional emissions of 3,087t­CO2 with the launch of NPT Tsu
Factory. By contrast, emissions from NPT Kaga Factory were 17,808t­CO2, for a 26% decrease from 24,099t­
CO2, owing to a change in items produced. Emissions from NPT Kyoto Factory were 3,141t­CO2 against
2,945t­CO2.
Emissions from NII Koka Factory, responsible for production of existing product lines in the Industrial Materials
business, amounted to 22,460t­CO2 in fiscal year 2017, for a roughly 2% decrease compared to 22,953t­CO2 in
the previous year, thanks to energy­saving efforts and small­group activities to improve efficiency despite
production volumes remaining level.
Emissions from major overseas production bases increased significantly in fiscal year 2017, to a total of
35,023t­CO2, owing to the addition of subsidiaries such as the AR Metallizing Group, acquired in 2015, to thescope of coverage of our surveys. For the same reason, the share of emissions from production bases outside
Japan surged from 10% in fiscal year 2016 to 27% in fiscal year 2017 in the Nissha Group overall.
The Nissha Group emits virtually no energy­related greenhouse gases other than CO2, and their effects areminimal.

Trends in CO2 Emissions Volumes and Basic Unit

Prevention of Further Global Warming

66

CSR Report 2017

Trends in Energy Consumption and Basic Unit

* Figures for FY2015 and FY2016 have been revised from the previous report due to a review in LPG unit conversion.

Trends in Electricity Consumption

Trends in Gas Consumption

Prevention of Further Global Warming

67

CSR Report 2017

Trends in Gasoline, Diesel, and Heavy Oil Consumption

Basic Unit Management by Production Volume and Its Issues
The enactment of the revised Act on the Rational Use of Energy demands the comprehension andmanagement of energy use per company. In order to improve our energy efficiency as well as comply with legal
requirements in line with this shift, since fiscal year 2014 we manage emissions under a basic unit based on
factors such as production volume per company.
With 1.00 indicating the benchmark fiscal year 2016 results of each major affiliated company that constitutes a
production base of the Nissha Group, we set fiscal year 2017 targets at 0.99 or less. The results are given in
the table below. NPT Himeji Factory saw dramatic improvement thanks to an increase in production volume plus
small­group activities to boost efficiency. NII Koka Factory also improved on its target by basic unit owing tosmall­group activities to save energy amid a slight increase in production volume. NPT Kaga Factory
discontinued management by basic unit owing to a change in items produced, and in the second half of fiscal
year 2017 worked to reduce CO2 emissions. NPT Kyoto Factory fell short of its target. Nitec Printing Co., Ltd.
(NPC) failed to meet its target by basic unit despite efforts to improve efficiency in line with a decrease inproduction volume due to outsourcing of web offset rotary printing. Nissha Printing Co., Ltd. did not meet its
target due to a decrease in total floor area with upgrading work in the headquarters premises.
The Environmental, Safety and Health Subcommittee of the CSR Committee identifies the management of CO2
emissions as a material issue again in fiscal year 2018, and will continue to strive for improvement by basic unit
in cooperation with each production base.

Basic Unit
(based on production volume etc.)

FY2017Company

Nissha Printing 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. (Yachiyo, Kyoto)

FY2016FY2017FY2017

Results

TargetResults

Evaluation

1.00

0.99 or less

1.05

×

1.00

0.99 or less

0.97

○

1.00

0.99 or less

0.70

○

1.00

0.99 or less

2.38

×

1.00

0.99 or less

1.08

×

1.00

0.99 or less

1.33

×

Note: Figures for NPT Kaga Factory represent the first half of FY2017

Prevention of Further Global Warming

68

CSR Report 2017

Initiative in Scope 3 Management
Nissha Printing Co., Ltd. has undertaken to survey Scope 3 emissions from the Nissha Group in Japan, in linewith the move in recent years to report indirect emissions from companies through their supply chain. This isdefined by the Carbon Disclosure Project (CDP) as Scope 3 sources and includes manufacturing,transportation, business travel, and employee commuting. The ultimate objective is to promote reduction ofthese emissions and improve the company’s ESG rating*. At Nissha, the Environmental, Safety and Health
Subcommittee is leading efforts to set numerical targets toward enhancing our corporate value over the medium
to long term.
In fiscal year 2017, we surveyed carbon emissions from our major materials and logistics suppliers in Japan.
The results confirmed emissions amounting to 16,682t­CO2 from our materials suppliers, 5,967t­CO2 from ourlogistics suppliers, 2,615t­CO2 from employee commuting, and 1,496t­CO2 from business travel. We plan tocontinue 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, and governance criteria

Prevention of Further Global Warming

69

CSR Report 2017

Waste Management
Initiatives of the Nissha Group in Japan
In fiscal year 2017, the Nissha Group in Japan generated a total 11,339 tons of waste, for a reduction of about
20% compared to fiscal year 2016. The primary reason is the change in items produced at Nitec Precision andTechnologies, Inc. (NPT) Kaga Factory, and a decline in production volume with preparations for the launch ofmass production at NPT Tsu Factory. The volume of simple incineration and landfill waste amounted to 280
tons, for a reduction of roughly 76% compared to the previous year, thanks to the start of efforts at NPT Kaga
Factory to recycle sludge through an improved wastewater treatment method.
Our recycling and resource reuse rate was 97.5%, for an improvement of 5.7% over the previous year. We
continue to fall short of achieving our zero emissions target (a recycling and resource reuse rate of 99.5% ormore). With continued efforts at NPT Kaga Factory to recycle sludge through the improved wastewater
treatment method, and further imprfovement in our recycling and resource reuse rate, we expect to achieve
zero emissions again by the end of fiscal year 2018.

Trends in Recycling and Resource Reuse (Nissha Group in Japan)

Initiatives at Overseas Production Bases
The Nissha Group has three production bases in Asia: Guangzhou Nissha High Precision Plastics Co., Ltd.,
Nissha (Kunshan) Precision IMD Mold Co., Ltd., and Southern Nissha Sdn. Bhd. Waste generated at Southern
Nissha accounts for 70% of the volume of all Asian bases combined. The three bases generated a total 222
tons of waste in fiscal year 2017, for a 1.4% reduction compared to fiscal year 2016. Southern Nissha recorded
a 2% decrease, Nissha Kunshan a 21.8% decrease, and Guangzhou Nissha a 3% increase.
Recycling and resource reuse rates remained level on a year­on­year basis, with all Asian production bases
achieving their respective targets again this year. Southern Nissha achieved a rate of 99% against a target of
90% or more, Nissha Kunshan a rate of 89% against 89% or more, and Guangzhou Nissha a rate of 74%
against 72% or more.

Waste Management70

CSR Report 2017

All waste generated in Asian production bases (Guangzhou Nissha, Nissha Kunshan, Southern Nissha)
FY2015
All waste generated（tons）FY2016256

FY2017226

207

Recycling and resource reuse rates in Asian production bases (FY2017)
Targets

Results

Evaluation

Guangzhou Nissha

72% or more

74%○

Nissha Kunshan

88.9% or more

89%○

Southern Nissha

90% or more

99%○

Risk Management Related to Waste and Waste Converted in Valuable Resources
We recognize largely three types of waste­related risk:
Accidents and disasters caused by waste and waste converted into valuable resources (including attreatment 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 Waste Management Regulations thatenables all bases of the Nissha Group to manage waste safely under the same set of standards. In line withthese regulations, each base has drawn up its own Waste Management Manual and makes efforts towardthorough waste separation and management. Whether a small amount of substance or a spray can, theproperties of waste are checked 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 in association with our information security
management system (ISMS).

Waste Management71

CSR Report 2017

Monitoring and Prevention of Pollution
Measures to Help Prevent 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

forConservationAct)

FY2016FY2017

SpecialMeasures

Control

FY2015

Concerning

Voluntarystandard

Unitof theAnalysis

Environment

value

Evaluation

Analysisvalue

Evaluation

Analysis

Evaluation

valueof the Seto
Inland Sea)
Discharged
water
pH

5,200

～8.6

5.8

5,000

～8.6

5.8

5,000
6.5

m3

～8.0

5,017

△

～7.5

○

6.9

4,613

○

～7.5

○

7.0

4,969

○

～7.6

○

6.9

BOD

120.0

10.0

9.0

mg/L

4.4

○

3.1

○

3.5

○

COD

120.0

10.0

9.0

mg/L

8.9

○

4.9

○

4.8

○

SS

150.0

5.0

4.5

mg/L

1.9

○

1.3

○

0.9

○

1.0

0.9

mg/L

0.9

○

0.5

○

0.8

○

n­hexanederivedsubstances

Mineral oil
5
Vegetableoil 30Phenol

5.0

0.1

0.1

mg/L

< 0.005○< 0.005○< 0.005○

Copper

3.00

0.50

0.40

mg/L

0.05

○

0.01

○

0.05

○

Zinc

2.00

1.50

1.20

mg/L

0.01

○

0.01

○

0.02

○

10.00

0.15

0.08

mg/L

0.02

○

0.02

○

0.02

○

10.000

0.050

0.045

mg/L

0.040

○

0.040

○

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

8.0

○

3.6

△

4.2

○

Phosphorus

8.00

1.00

0.45

mg/L

0.25

○

0.02

○

0.02

○

Solubleiron
Solublemanganese

Monitoring and Prevention of Pollution

72

CSR Report 2017

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

FY2015
Regulatory
Items measured

Voluntary

value

～8.6

FY2017

Unit

standard(Prefecture)

FY2016

Fab3

～8.2

pH

5.8

BOD

160 or less40 or less

COD

160 or less

SS

Fab3

Fab5

Final

Final

effluent

effluent(Average)(Maximum)

7.6

○

8.0

○

7.5

○

­

­

7.4

○

7.7

○

mg/L

22.8

○

29.6

○

32.0

○

­

­

7.5

○

27.0

○

80 or less

mg/L

24.6

○

33.8

○

39.0

○

­

­

9.1

○

26.0

○

200 or less20 or less

mg/L

4.3

○

10.0

○

4.4

○

­

­

2.6

○

4.2

○

30.0

15 or less

mg/L

1.0

○

1.4

○

0.5

○

­

­

0.5

○

0.5

○

n­hexane derived
substances

6.2

Fab5

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

Management of Chemical Substances
In fiscal year 2017, we reported the use of nine PRTR­designated chemical substances.

Nitec Industries, Inc. (NII) Koka Factory
Unit: kg

FY2015PRTR
No.

Name ofchemical
substance

FY2016

VolumeFY2017

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

1,700

580

○

3,100

820

○

4,300

1,000

○

80

Xylene17,0005,500○

25,0006,500○

25,000

6,400

○

0.1

0.0

○

0.1

0.0

○

0.1

0.0

○

○

750

470

○

1,300

530

○

Hexavalent
88

chromiumcompounds296

1,2,4­­

Trimethylbenzend­

300

Toluene140,000

7,800○

200,000

120,000○

83,00048,000○392

N­hexane

4,500

2,600

○

8,500

5,400

○

5,300

3,000

○

Monitoring and Prevention of Pollution73

CSR Report 2017

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

FY2015PRTR
No.

Name ofchemical
substance

Discharge
volume intotheatmosphere

FY2016

Volumetransferred toindustrial waste
processing
companies

Reporting

Discharge

required /volume into

not

the

required

atmosphere

FY2017
VolumeVolumetransferred toindustrial waste
processing
companies

Reporting

Dischargetransferred toReportingrequired /volume into

industrial

required /

not

the

waste

not

required

atmosphereprocessing

requiredcompanies

53

Ethylbenzene

250

2,500

○

­

­

­

­

­

­

80

Xylene

210

2,100

○

­

­

­

­

­

­

0.1

0.1

○

­

­

­

­

­

­

980

9,900

○

­

­

­

­

­

­

Hexavalent
88

chromiumcompounds

300

Toluene*NII Tsu Factory closed on June 30, 2016.

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

FY2015PRTR
No.

Name ofchemical
substance

Discharge
volume intotheatmosphere

71

Ferricchloride

FY2016FY2017

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

2,000.0○0.01,700.0

○

0.0

330

○

Water­
soluble272

copper salts(excluding
complex salt)

Monitoring and Prevention of Pollution74

CSR Report 2017

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

FY2015PRTR
No.

Name ofchemical
substance

Discharge
volume intotheatmosphere

FY2016FY2017

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

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

○

­

0.0

0.0

○

Water­soluble
272

copper salts(excluding
complex salt)
Molybdenum453

and its

­

­

­

­

­

compounds

Monitoring and Prevention of Pollution

75

CSR Report 2017

Status of Waste Generation at Bases
Status of Waste Generation at Major Production Bases (March 2017 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

Status of Waste Generation at Bases76

CSR Report 2017

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%

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: 75.6%

Status of Waste Generation at Bases77

CSR Report 2017

Nitec Printing Co., Ltd. (NPC) Yachiyo Factory
Location: Yachiyo City, Chiba Prefecture
Acquisition of ISO14001 Certification: December 2004
Production items: Printing and binding of books, catalogs, leaflets, etc., using sheet offset
press (the Information and Communication business)
Recycling and resource reuse rate: 97.5%

Status of Waste Generation at Bases78

CSR Report 2017

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.

Fair Operating Practices

79

CSR Report 2017

Initiatives Related to Information Security
The spread of the Internet and the broad use of devices such as smartphones have ushered in a convenient era
in which anyone can connect with the online community easily at all times. On the other hand, withcyberattacks, email spoofing, and other crimes against information security growing rampant and ever moreadvanced, the risks are increasing of everyone becoming either a victim or perpetrator of information leakage.
We at the Nissha Group recognize the paramount importance of not leaking outside the company or beyond
related parties information about our employees, personal information, and information entrusted to us by ourcustomers and suppliers, particularly highly confidential information assets such as information on new products
and state­of­the­art technologies. All our employees adhere to our Information Security Policy, which we drew
up in and implement since 2005 with the aim of building a highly reliable and safe information security
management system (ISMS).

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 the information
assets, which we acquire from customers, suppliers and employees, etc., through our businessactivities 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 the information
security levels which contributes to the corporate developments.
4. We make Information Security Policy known to all employees working in the premises of Nissha
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 Printing Co., Ltd.

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. The subcommittee is run by an ISMS management representative (the Chief
Information Officer, or CIO) and comprises information security managers and promoters selected from eachdepartment. 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 by addressing issues that have become
evident as well as reporting and sharing the results and challenges of initiatives related to information security.

Initiatives Related to Information Security

80

CSR Report 2017

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, reviews on social media harming a company’s
image and its brand value. Companies today are required to address such risks to their trust from society.
Moreover, with the swift global popularization of bring­your­own­device (BYOD), companies are required to
manage a broader range of information appliances, beyond company­issued computers to personally 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, we work 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, andselecting information security managers and promoters from each department to promote thorough operation of
our ISMS.
We also organize regular reviews by top management, ISMS internal audits, and ISO 27001 screenings by anoutside examination institute, recognizing these as good opportunities for improving our ISMS.

Information Security Education
Preventing the occurrence of information security incidents and accidents requires the formulation of policies
and regulations, and more importantly, that all employees take disciplined action with sufficient awareness of
information security.
At the Nissha Group, we provide education based on an Information Security Self­Defense Guide (SDG) thatreflects the contents of our Information Security Policy toward ensuring thorough understanding of information
security in all Nissha People.

ISO27001 Certification
The Nissha Group has obtained ISO27001 certification, a global standard for ISMS, andworked to expand the scope of application across bases and divisions. At present, our focus
is on global expansion of compliance with ISO27001 requirements.

Initiatives Related to Information Security81

CSR Report 2017

Trade Management
Trade Management Structure
We at Nissha earned 73.9% of our sales outside Japan in fiscal year 2017. For a company like us, efforts intrade management are essential for business continuity. Furthermore, 85% of our customers demand security
trade control, according to a survey conducted in August 2016.

Customer demand for trade management

Full­scale 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 in daily
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 by country
and region, oversight is assigned to trade management representatives at each base.

Trade Management82

CSR Report 2017

Trade Administration and Control Subcommittee

Trade Management Policy
Nissha and its subsidiaries comply with legal requirements and agreements in trade and strive forcontinuous improvements in the trade management system

in order to pursue a mutually trustful Co­

existence with society.
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.
October 1, 2016
Junya Suzuki
President and CEO
Chairman of the Board
Nissha Printing Co. Ltd.

AEO Approval
Nissha Printing Co., Ltd. obtained approval as an AEO Exporter in June 2014, and as an AEO Importer in June
2015. In May 2016, we received our first post­audit and maintained our status as AEO Exporter.
As of May 2016, 57 companies in Japan are approved as both AEO Importer and AEO Exporter. Being one ofthese companies with dual approval, we have in place a system for safe and smooth international logistics.
Southern Nissha Sdn. Bhd., based in Malaysia, obtained approval as both an AEO Exporter and an AEO
Importer in October 2014.

Trade Management

83

CSR Report 2017

Fiscal Year 2017 Initiatives and Future Challenges
In order to keep pace with our enthusiastic M&A activity outside Japan in recent years, fiscal year 2017, we
accelerated efforts to fortify the trade management structure of overseas affiliated companies. Having surveyed
the latest status of trade management, we used our structure and rules in Japan as a model and formulated abasic policy and basic regulations on trade management covering the Nissha Group as a whole, including
companies abroad.
Moving forward, we will work toward thorough implementation of the policy and rules at group companies
outside Japan, excluding Southern Nissha, which has approval as both an AEO Exporter and an AEO Importer,
and aim to improve our level of trade management.
In Japan, we revised the internal compliance program and bylaws we are required by customs to formulate, andcontinue in our efforts to ensure appropriate trade management and enhance employee awareness of security
through group­wide rank­specific education programs. By conducting internal audits and providing guidance toshipping divisions, we are working to ensure higher levels of safety and operational quality, as well as topromote a strengthening of compliance, toward offering safe, secure, and speedy international logistics services
that meet our customers’ needs.

Authorized Economic Operator (AEO) Program
Reinforced security measures are a major requirement in international logistics in recent years. Amid
the increase in international logistics, ensuring both trade security and smooth logistics is a greatchallenge. The AEO program seeks to address this challenge by fostering partnerships between
customs and private businesses. AEO operators, approved for their security management andcompliance structures, are given benefits such as simplified customs procedures in accordance withinternational standards.

Trade Management84

CSR Report 2017

Initiatives Related to Intellectual Property
Approach to Intellectual Property
Nissha Printing raises the protection of intellectual property in our Guideline of the Corporate Ethics andCompliance as one of the key items, and we make active efforts to respect the intellectual property of third
parties and to obtain rights for and use that of our own. Intellectual Property Management acts as the central
body for protecting intellectual property. With the aim of expanding the performance of business units andensuring a competitive advantage for new businesses, it works to establish intellectual property strategies forthe entire Nissha Group and meet internal needs to secure intellectual property rights.

Basic policy for protection of intellectual property(from the Guideline of the Corporate Ethics and Compliance)
1. We will acknowledge the importance of our technologies and brands as intellectual property andwill 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 third­party 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 products, made with our own distinctive technologies, from othercompanies’ products. This in turn puts a check on the inappropriate use of other companies’ technologies,
helping also to reduce intellectual property­related risks in connection with Nissha products for our customers.

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

Intellectual Property Training Programs
We organize internal training programs so that employees may
deepen their understanding of and properly protect intellectual
property. In fiscal year 2016, we invited an outside specialist to
conduct sessions divided into four levels—introductory, basic,
advanced, and practical research—in which participants learned indetail about intellectual property law, how to research othercompanies’ patents, and promoting technology development andfiling for patent application. We also hold sessions in which amember of Intellectual Property Management serves as instructor.
Intellectual property training program
Instructor: Mr. Tatsushi Gocho, Patent
Attorney, Associate Professor of Osaka
Institute of Technology
Commissioned organizer: CKS Corporation

Initiatives Related to Intellectual Property85

CSR Report 2017

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

Basic Purchasing Policy
For the achievement of the Corporate Mission, "We are committed to pursuing a mutually trustful Co­
existence with society through our business activities utilizing a unique technology development, basedon PRINTING as a core.", we at Nissha are always committed to creating enterprise value by
establishing the partnership for co­existence and co­prosperity with suppliers and carrying out mutually
fair procurement.
We at Nissha evaluate suppliers impartially, fairly and comprehensively, based on the following points.
1. Stable business foundation and reliable business attitude
2. Excellent technology development and supply abilities
3. Flexibility to adapt to changes in the business environment
4. Safety of products and services, stable quality and lead time and competitive prices
5. Supply chain management aimed for business continuation
We at Nissha promote CSR procurement by working with suppliers on the following points.
1. Labor
2. Health and Safety
3. Environment
4. Ethics
5. Information Security
Establishment April 2, 2009
Amendment June 30, 2015
Junya Suzuki
President and CEO
Chairman of the Board
Nissha Printing Co., Ltd.

Partnership with Our Suppliers

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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.
In fiscal year 2016, we concluded a capital and business alliance contract and a production consignment
contract in our Information and Communications business with Kyodo Printing Co., Ltd.

Supply Chain of the Industrial Materials and Divices Businesses

Supply Chain of the Information and Communication Business

Partnership with Our Suppliers

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CSR Supplier Audits
We conduct CSR audits on our suppliers. The audits cover five areas— labor, health and safety, environmental,
ethics, and management system—drawing on the global code of conduct provided by the Electronic Industry
Citizenship Coalition (EICC) and on our customers’ own code of conduct based on this EICC template. Prior to
auditing, we organize a CSR procurement briefing to explain our CSR Procurement Guidelines, and distributean environmental, social, and governance (ESG) check sheet for the supplier to complete. The audit process
consists of an inspection 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 ofnoncompliance, the supplier is required to establish corrective action (CA) and preventive action (PA) on thefindings.
From fiscal year 2015 onward, we carry out audits focusing on particularly important suppliers and new
suppliers. In fiscal year 2017, we conducted audits at five materials suppliers of the Devices business and theIndustrial Materials business. This combined with the nine companies audited to date brings the total to 14,
representing about 80% of the total value of goods procured from our top 30 suppliers.
The audits detected a total of 167 instances of noncompliance (68 related to labor and human rights, 53 tosafety and health, 29 to the environment, 12 to ethics, and 5 to management system). In several cases, Nissha
employees visited the site to explain the proper response to revisions in legislation and provide support toremedy the situation. Roughly three months later, auditors checked that CA and PA have been taken and thenoncompliance has been remedied, bringing the CSR audit to completion.
We plan to continue with CSR audits at particularly important suppliers in the future. In fiscal year 2018, we plan
to conduct audits at companies to which we dispatch Nissha employees.

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) Non­discrimination
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 property

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5) Fair business, advertising and competition
6) Protection of identity and non­retaliation
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.

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.

Fiscal Year 2017 Initiatives
1. Basic course in the Act against Delay in Payment of
Subcontract Proceeds
We invited an outside instructor and organized sessions at fivebases. The course attracted many participants even from outside
procurement divisions, suggesting a higher level of interest from ouremployees than last year. Following training, we gave theparticipants a test and provided feedback of the scores along with arecap, ensuring that knowledge gained through the training took

Basic course (Headquarters)

root in the employees’ minds. This year we provided notification of
the course and organized private lessons particularly forengineering and development divisions, with an eye to enhancing awareness.
2. Tips on the Act against Delay in Payment of Subcontract Proceeds
We sent five monthly emails to strengthen recognition of the act in all members of procurement divisions as wellas interested members of other divisions. The emails consisted of selected excerpts relevant to Nissha, plus
case studies.
3. Training for new procurement personnel
We conducted training for employees new to procurement divisions, covering our Basic Purchasing Policy, theimportance of compliance, and the knowledge and mindset essential to procurement personnel.
4. Procurement program
Last year we developed a program with the aim of fostering next­generation leaders of procurement divisions.
In fiscal year 2017, we invited an outside instructor to conduct six monthly sessions around the theme of
improving quality, cost, delivery (QCD) together with our suppliers. The semester concluded in January with apresentation of achievements.

Partnership with Our Suppliers

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Program Participation

Partnership with Our Suppliers

Lecture/Training

Participants in FY2017

Basic course

355 (total of 5 bases)

Training for new procurement personnel

7 (100% attendance)

Procurement program

72 (total)

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CSR Report 2017

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. We investigate all of the materials that make up our
products using a Safety Data Sheet (SDS) and identify those that contain conflict minerals. Further, we ask ourmaterials suppliers not to source minerals produced by smelters not identified as conflict free.
In fiscal year 2017, we expanded the scope of our investigation to the products of companies new to the Nissha
Group. In future, we will continue our efforts to engage in minerals procurement with integrity in line with ourUnderlying Philosophy Concerning Corporate Responsibility for Minerals Procurement.

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 of funding
for militia that through acts of looting, violence and forced labor are infringing on fundamental humanrights.
In April 2012, Nissha became a signatory to the “Global Compact” as advocated by the United Nations.
We at Nissha have fully embraced the Ten Principles stated in the Global Compact as a cornerstone of
our Corporate Mission. Based upon our recognition of the importance of these principles and aiming forco­existence with our stakeholders, we are committed to non­use of these conflict minerals, as raw
materials in our products as they result in an infringement of basic human rights. Accordingly where ourcompany becomes aware of the use of any conflict minerals, we will immediately implement allmeasures required regarding that use.

1. Nissha is presently implementing ongoing control systems for conflict minerals which we maintaincontinuously.
2. Nissha will promptly provide to its customers conflict minerals information including its smelters, etc.
3. Nissha 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 order tofulfill our corporate social responsibilities.
March 12, 2014
Junya Suzuki
President and CEO
Chairman of the Board
Nissha Printing 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.

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Initiatives Related to Anti­corruption
The United Nations Global Compact to which Nissha Printing Co., Ltd. is a signatory lists anti­corruption as its
10th principle. And in recent years, global society has seen a tightening of controls pursuant to anti­corruption
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 anti­corruption provisions set forth in the codes of conduct
provided both by our customers and by the Electronic Industry Citizenship Coalition (EICC).
The Nissha Group cites prohibition of corrupt practices as an important point of our Guideline of the Corporate
Ethics and Compliance. In fiscal year 2017, we organized corporate ethics and compliance training, including
the prohibition of corrupt practices, for managers at bases outside Japan (78% attendance). We also confirmed
the status of corrupt practices in the Nissha Group through a questionnaire distributed to employees atoverseas bases.
These efforts are reflected in the Nissha Anti­Corruption Guidelines, formulated on April 1, 2017. We plan tocontinue 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 Anti­Corruption Guidelines
The Nissha Group works to realize “mutually trustful Co­existence with society” by making clear that all
officers and employees are prohibited from presenting customers, suppliers, and government officials,
either directly or indirectly, with gifts or entertainment that may constitute corrupt practice, and byobserving Japan’s Unfair Competition Prevention Act, the United States’ Foreign Corrupt Practices Act,
the United 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, and periodically review
our initiatives.
4. We respond with sincerity to requests from our customers for cooperation in investigations, byproviding necessary information.
April 1, 2017
Junya Suzuki
President and CEO
Chairman of the Board
Nissha Printing Co. Ltd.

Initiatives Related to Anti-corruption

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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.

Consumer Issues

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Consumer Issues
Responsibility to Our Customers / Quality­related Initiatives
We at Nissha strive daily to improve quality, based on our Quality Policy, so that we may provide products andservices 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 trust andsatisfaction 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
President and CEO
Chairman of the Board
Nissha Printing 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
Total Quality Management (NTQM).
We are also working to obtain ISO/TS 16949 certification, covering the quality management system in theautomotive industry. The first Nissha Group companies to obtain certification for touch sensor modules wereSouthern Nissha Sdn. Bhd. (in January 2016), Nissha (Kunshan) Precision IMD Mold Co., Ltd. (February 2017),
and Nitec Precision and Technologies, Inc. Kyoto Factory (March). With Nissha Printing Co., Ltd. obtaining aClass 2 medical devices marketing license, and FIS Inc. becoming a registered medical device manufacturer ofHyogo Prefecture, both in April 2017, we are making steady efforts to build a quality assurance structure that fits
our new business segments.

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Quality Assurance Structure

Nissha Total Quality Management (NTQM)
NTQM clarifies the procedures followed at each business unit, such as design reviews (DR), reliability tests, andsupplier management. We believe that improving the accuracy of these procedures will enable us to provide
products and services with even higher levels of quality and safety.

Five Musts for the Systematization of WorkIn fiscal year 2012, we set forth Five Musts for the Systemization of Work, a concept we are working tocommunicate 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
employees are required to perform their daily duties with a sense of responsibility, and create quality in the eyesof 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 a leadingrole in delivering quality to the customer. And this “customer” may be external customers of the Nissha Group orinternal workers in the production process following one’s own. The slogan will be communicated thoroughly
across Nissha Group companies both in and outside Japan.

Company­wide 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 standin the customers’ shoes, we aim to break free of department­based optimization and strive for company­wide
optimization. We believe that basic concepts like this and the sorting out of functions will build Nissha’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 inwork processes. This approach forms the foundation of Nissha’s small­group activities and improvement
proposal system. We recognize these as important mechanisms to work on and develop across the Nissha
Group.
We also plan and execute various education programs on a continuous basis. Underpinning our enthusiasm
about human resources development are the ideas that the quality of people plus the quality of work equals thequality of the company, and employees are our most important management resources.
Our activities aim to establish three practices and ultimately realize customer satisfaction: one, always
incorporate creativity into work processes; two, base judgment on data (facts); and three, use the plan­do­check­act (PDCA) cycle to make continuous improvement.

Training

1) General quality training (for first­, second­, and third­year employees, newmanagerial staff, managers, and overseas transferees)
2) Management system training (ISO 9001:2008, ISO/TS 16949:2009, and core
tools)
3) Quality control training (QC Exam levels 3 and 4)4) Quality methodology training (statistical methods, experimental design,

Consumer Issues

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Taguchi methods, etc.)
5) Improvement tool training (industrial engineering, production­sales­inventory(PSI), human error prevention, “5 Whys” cause­and­effect analysis, etc.)
6) Other training (equipment maintenance, etc.)
Practical education
Information sharing /reciprocal learning1) Support for small­group activities
2) Nissha Academy (Monozukuri School etc.)
Company­wide Presentation Meeting of Small­group Activities

Quality and Safety of Products
We at Nissha provide our customers with explicit information on product usage and safety in documents suchas delivery specifications. In the event a serious accident occurs as a result of flaws in our products andservices, 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 to government agencies in accordance with laws and to notify ourcustomers as soon as possible. We communicate to our employees the importance of ensuring the quality andsafety of products through corporate ethics and compliance training.
Up to fiscal year 2017, the number of instances in which we organized a CPL committee or violated laws waszero, 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 and regulations of relevant countries and regions, including the Restriction ofHazardous Substances (RoHS) directive and the Registration, Evaluation, Authorization, and Restriction ofChemicals (REACH) regulation, as well as the substance­related 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 as necessary, 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 tomaterials and assess compliance with our criteria. Our factories are building a mechanism for accepting
materials that meet our criteria, ensuring traceability, identifying and separating noncompliant substances, andresponding to issues swiftly such as through reporting in efforts to prevent misuse and contamination.
Corporate Environmental and Safety Management of Corporate General Affairs functions as a secretariat andworks with the product development, quality assurance, and procurement divisions of each business unit topromote management of chemical substances in products. It also carries out internal environmental audits on aregular basis to inspect the management status. This internal structure implements strict control of chemical
substances from the design stage to the final product, and responds to changes in the needs of society and thedemands of our customers.

Consumer Issues

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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.

Along with Local Communities

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Along with Local Communities
Promoting Communication with Local Communities
As a member of the global society, Nissha aims not only to fulfill its responsibilities as a corporation but also to
win the trust of local communities and be a company that is needed by society.
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
employees at local elementary schools and nursery schools, and next generation support in collaboration with
NPOs, all with the aim of realizing the “Co­existence” cited in our corporate mission.

Basic Social Contribution Policy
We at Nissha set forth our approach to social contribution in the Basic Social Contribution Policy. We devote ourmanagement 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 by using their
management resources effectively toward the achievement of the Corporate Mission.
Main fields of contribution: "environmental protection", "next generation support", "promotion andsupport of arts and culture", and "human support activities".

Initiatives for Next Generation Support
Presentation of Nissha Printing Award at 11th Supreme Moving Toy Contest in Kyoto
In the field of next generation support given in our Basic Social Contribution Policy, Nissha Printing Co., Ltd. is asponsor of the Children’s Monodzukuri Project run by the Kyoto City Board of Education. We host a corporate
booth at the Monodzukuri Hall of Fame in the Kyoto City Inquiry Learning Center for Career Education, andprovide teaching materials and programs for elementary school pupils with the hope of nurturing children’s
curiosity in “monozukuri,” or manufacturing.
As part of these activities, we supported the 11th Supreme Moving Toy Contest in Kyoto (sponsored by theChildren’s Monodzukuri Project Promotion Council, the Kyoto City Board of Education, and others), held on
January 22, 2017, at Kyoto Kogakuin Senior High School. Our role was to provide educational teachingmaterials and run a corporate booth.
The event featured a race of creative racing cars made by the children, a design and performance competitionof decoration cars, and more, kindling excitement in the 1,600 visitors including some 700 elementary school
pupils who filled the venue.

Along with Local Communities

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We provided a racing car assembly kit and original stickers for the beginners’ category targeting third and fourth
graders, and presented certificates of merit, trophies, and medals to top­ranking contestants as the Nissha
Printing Award.

Presenting of Nissha Printing Award

Nissha Printing booth

Environmental Workshops at Local Elementary Schools
Our employees at Nissha mainly at production sites in Japan visit local elementary schools and nursery schools
and conduct environmental workshops.
In fiscal year 2017, workshops were held at two elementary schools in Kyoto, home to our Global Headquarters,
and at two in Kaga City, Ishikawa Prefecture, home to one of our production bases. The children learn about
preventing global warming, how to separate garbage, and other environmental activities closely associated with
their daily lives. As a uniquely Nissha program, we introduce the secrets of printing and of touch panels with theaim of sparking interest in “monozukuri,” or manufacturing, and fostering a sense of professional values.
Participants in this initiative, which started in fiscal year 2008, numbered about 4,300 children at 87 schools asof the end of March 2017.
In Kyoto City, we further participate in an environmental learning
program for elementary school pupils jointly organized by the Kyoto
Chamber of Commerce and Industry and the Kyoto City Board of
Education. In March 2017, we received a letter of appreciation fromthe Kyoto City Board of Education in recognition of our longtime
contribution to the program—10 years since 2007—during which we
endeavored to raise awareness of environmental issues andstimulate interest in the environmental technologies of Kyoto­based
companies.

Initiative in Environmental Preservation and Community Development
Participation as Judge in Kyoto Tourist Souvenirs Eco
Packaging Contest
In fiscal year 2017, we participated as a judge in the Kyoto
Tourist Souvenirs Eco Packaging Contest (planned andoperated by the Kyoto Tourist Souvenirs Eco Packaging
Project), organized by the Kyoto City Waste Reduction
Promotion Council.
The initiative was selected as a model program for reducing
waste, based on a proposal by the Kyoto citizenry. Eachyear Kyoto attracts as many as 56 million tourists, who take home souvenirs along with their containers
and wrappers, which wind up as garbage somewhere in the world. Packaging materials should be
simple and resource saving, with minimal impact on the environment; tourist to Kyoto should not beleaving with garbage—this approach won sympathy and led to the organization of the contest.
Many entries came from Kyoto­based makers of traditional Japanese as well as Western confectionery.
We at Nissha judged these entries from the viewpoint of a printing company, examining the recyclabilityof the materials and the environmental impact of the printing technologies, while also taking into
account the elements of visual appeal and joy that lead to sales.

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CSR Report 2017

We joined the initiative with the hope of conveying our passion for eco­friendly packaging to tourists
from around the world who visit the city of Kyoto, home to Nissha Global Headquarters.

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. In fiscal year 2017, we cosponsoredthe exhibitions and events given below.

Exhibition / event

Schedule

Venue

VENICE : Five Centuries of theWorld's Most Alluring City from

April 9, 2016 ­ June 12, 2016

Hiroshima Museum of Art

the Museum of Fine Arts, Boston
The Art of ZEN From Mind to
FormApril 12, 2016 ­ May 22, 2016

The 4th KYOTOGRAPHIE
International Photography

Kyoto National Museum Heisei
Chishinkan WingTORAYA Kyoto Gallery, Kyoto

April 23, 2016 ­ May 22, 2016

Festival

Municipal Museum of Art
Annex,etc.

DETROIT INSTITUTE OF ARTSEXHIBITION
2016 NHK Historical Drama
Special Exhibition “Sanadamaru”

April 27, 2016 ­ June 26, 2016

Toyota Municipal Museum of Art

April 29, 2016 ­ June 19, 2016

Edo­Tokyo Museum

June 14, 2016 ­ June 19, 2016

The Museum of Kyoto

The 2nd Watercolor interchange
exhibition of Fukushima andKansaiA Journey to the Land of
Immortals: Treasures of Ancient
GreeceJune 21, 2016 ­ September 19,
2016

Tokyo National Museum,
Heiseikan Special Exhibition
Galleries

Venetian Renaissance Paintingsfrom the Gallerie dell’Accademia,

July 13, 2016 ­ October 10, 2016

The National Art Center, Tokyo

VeniceThe Hidden Buddha of Rakuyaji

September 13, 2016 ­ December

Temple, Shiga

11, 2016

Van Gogh and Gauguin: Reality

October 8, 2016 ­ December 18,

and Imagination

2016

The Exhibition of the Sengoku
Period－－ A Century of Dreams

THE COSMOS IN A TEA BOWL

November 23, 2016 ­ January 29,
2016

Tokyo National Museum Honkan

Tokyo Metropolitan Art Museum

Edo­Tokyo Museum

December 17, 2017 ­ February

The Mational Museum of Modern

12, 2017

Art, Kyoto

Alfons Mucha

March 8, 2017 ­ June 5, 2017

The National Art Center, Tokyo

SessonMarch 28, 2017 ­ May 21, 2017

: Transmitting a Secret Art AcrossGenerations of The Raku Family

The University Art Museum,­A Singular Painter­

Tokyo University of the Arts, Main
Gallery

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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 Commerce

Company registered

Permanent member

Nissha Printing Co., Ltd.

Executive director

Nissha Printing Co., Ltd.

Chair

Nissha Printing Co., Ltd.

Kyoto Industrial Association

Director

Nissha Printing Co., Ltd.

Printers Association of Japan

Executive director

Nissha Printing Co., Ltd.

Director

Nissha Printing Co., Ltd.

and Industry
Kyoto Employers’ Association
Kyoto Association of Corporate
Executives

The Japan Kanji Aptitude Testing
Foundation
Kyoto Institute of Technology
Ritsumeikan University Business
SchoolNissha Foundation for Printing
Culture and Technology
Japanese Society of Printing
Science and Technology
Kaga Chamber of Commerceand Industry

Along with Local Communities

Position / membership status

Joint management council
memberNissha Printing Co., Ltd.

Advisory board member

Nissha Printing Co., Ltd.

Representative director

Nissha Printing Co., Ltd.

Councilor

Nissha Printing Co., Ltd.
Nitec Precision andPermanent member

Technologies, Inc. (NPT) Kaga
Factory102

CSR Report 2017

Company Outline
For the company outline and further information on Nissha, please follow the links below.

Company Outline
View our company outline and a list of major group companies.
http://www.nissha.com/english/company/outline.html

What's Nissha?
View our business fields and an outline of our global operations.
http://www.nissha.com/english/company/business/index.html

Nissha Group
View the bases of our global Nissha Group network.
http://www.nissha.com/english/company/office/index.html

Company Outline

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Company Outline

Name

Nissha Printing Co., Ltd.

Global Headquarters

3 Mibu Hanai­cho, Nakagyo­ku, Kyoto 604­8551, Japan

President and CEO,
Chairman of the Board

Junya Suzuki

Founded

October 6, 1929

Established

December 28, 1946

Capital¥7,664,790 thousand

Employees*as of the end of June, 2017

798 (Consolidated number of employees : 5,187)*as of the end of June, 2017
Nissha is mainly developing the 4 business areas of Industrial Materials,
Devices, Life Innovation and Information and Communication.

Business outline

At the same time, Nissha is accelerating the creation of Development foradvance.
>For more detail of our business, please check this link
http://www.nissha.com/english/products/index.html

Consolidated
Subsidiaries
Equity Method Affiliates

57
4*Japan: 16 (including affiliated companies)

Bases

Overseas: 42(including locally incorporated companies and equity method affiliates)

Major Group
Companies【Japan】

Nitec Industries, Inc.
Nitec Precision and Technologies, Inc.
FIS Inc.
SiMICS Co., Ltd.
Nissha Printing Communications, Inc.
Nitec Printing Co., Ltd.
Nissha F8, Inc.
M crossing Co., Ltd.
Nissha Business Service Co., Ltd.
Rakuhoku Landscape, Inc.

【Overseas】

Nissha USA, Inc.
Eimo Technologies, Inc.
Si­Cal Technologies, Inc.
PMX Technologies, S.A. de C.V.
Nissha Medical International, Inc.
Graphic Controls Holdings, Inc.
Graphic Controls Acquisition Corp.
Biomedical Innovations, Inc.
Lead­Lok, Inc.
Vermed, Inc.
CEA Medical Manufacturing, Inc.
Graphic Controls Canada Company
Graphic Controls Ltd.
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Crown Graphic N.V.
DIA­Nielsen GmbH & Co. K.G.
S.A.Societe Guyot Graphco
Tyrolmed GmbHCEA Global Dominicana, S.R.L.
Nissha Europe GmbH
Schuster Kunststofftechnik GmbH
Back Stickers GmbH
Back Stickers International B.V.
AR Metallizing N.V.
AR Metallizing S.r.l.
AR Metallizing Ltd.
ARM Embalagens Ltda.
Málaga Produtos Metalizados Ltda.
Nissha Korea Inc.
Nissha Industrial and Trading (Shenzhen) Co., Ltd.
Nissha (Kunshan) Precision IMD Mold Co., Ltd.
Guangzhou Nissha High Precision Plastics Co., Ltd.
Hong Kong Nissha Co., Ltd.
Taiwan Nissha Co., Ltd.
Nissha Industrial and Trading Malaysia Sdn. Bhd.
Southern Nissha Sdn. Bhd.
Nissha Flooring Industries Sdn. Bhd.
Nissha Vietnam Co., Ltd.
*NS Tech Co., Ltd.
*TPK Film Solutions Limited*Nissha and Lens Technologies (Changsha) Company Limited

Company Outline

105

CSR Report 2017

What's Nissha?
Nissha's Business Fields

The company’s name, Nissha Printing, may conjure up an image ofa company that prints publications such as books. However its
business is not only confined to that.
Nissha’s Touch Sensors lead the way in touch input technology
today, our surface decoration technology can change the looks fromplastic to wood, we manufacture medical devices and consumableproducts, our hydrogen detectors has adopted in fuel cell vehicle
and we develop DDS (Drug Delivery System). Nissha progress
technologies since our founder started business in 1929.

Global Headquarters (Kyoto, Japan)

We maximize our capabilities driven by our technology, passion,and leadership to create value for the future.

Developing the 4 business area
Nissha is developing the 4 business segments of "Industrial Materials" ,"Devices" ,"Life Innovation"and"Information and Communication". We handle decorative films and printing related materials field comprising"IMD" and "Metallized Paper" as the main products in our Industrial Materials business, and the touch input
device "FineTouch" series and Gas Sensors in our Devices business. In our Life innovation business, we handle
medical devices and consumable productsin the North and Central America and Europe and theInformation and Communication business, we provide printing media and a wide range of services that support
general communication strategies, on a one­stop basis.
*"IMD" is a registered trademark or a trademark of Nissha Printing Co., Ltd.
* Nissha's Touch Sensor "FineTouch" is a registered trademark or a trademark of Nissha Printing Co., Ltd.
* Nissha Printing Communications, Inc. operates the Information and Communication business of Nissha Printing Co., Ltd.

Sales breakdown by business field

We have changed a method of translating performance of overseas subsidiaries and others from FY2017.The This result of Devices
and Life Innovation are applied retroactively to the organization change in October 2016.

What's Nissha?

106

CSR Report 2017

Globally Trusted Technology
Nissha's technology is highly regarded not only by customers in Japan, but throughout the world. Nissha
products are customized for each and every product provided to our customers. Our business would not be
viable without the trust of our customers.
Nissha's way of carrying out business is to work near to our customers throughout the world in a way thatanswers our customers' needs. Overseas sales have vastly surpassed domestic sales.

Sales breakdown by Overseas vs. Domestic

We have changed a method of translating performance of overseas subsidiaries and others from FY2017.

Industrial Materials

IMD, the technology to transfer both function and design on surfaces
The major product of our Industrial Materials Business is
IMD, which applies a range of functions and designs on
products as they are formed, by enveloping them in a
special transfer film during plastic injection molding. The
richness of design expression that IMD brings, its functional
strengths such as its ability to withstand scratches orfingerprints, and its simple production process are why IMD
is held in such high regard around the world, where it isused on a wide range of everyday plastic products that
include automobile interior parts, consumer electronics, andIMD

smartphones.
http://www.nissha.com/english/products/industrial_m/imd/index.html

IMD uses not just transfer foil printing technology but mold technology, injection molding technology, and arange of others, making the Industrial Materials Business unique in possessing so many of these technologies.
Our products will evolve to meet future market trends and the needs of customers around the world as wedevelop new printing techniques. In addition, acquiring a wide range of technologies, not just limiting to printing
ones, will allow us to provide a diverse range of products and services to our customers.
*IMD is a registered trademark or a trademark of Nissha Printing Co., Ltd.

What's Nissha?

107

CSR Report 2017

Used in the following ways
Automotive interior, Smartphone, Consumer electronics, Cosmetics, Stationery and Housing equipment, etc.

IMD's unique mechanisms
IMD is a "printing" technology that allows images to be attached to three­dimensional plastic. How are we able
to attach images to something that isn't flat?

Nissha’s Metallized paper is used in products by approximately 300 companies in 80 countries
Metallized paper is a special paper with a metallic layer vacuum
deposited on the surface for decorative effect. With the appearance of
metal but the properties of paper, such as biodegradability, metallized
paper is garnering interest as an excellent material for environment­
friendly packaging.
Nissha’s metallized paper is used widely in the labels and packaging
of beverage, food, and consumer products by approximately 300
companies in 80 countries.
>for more detail, please check this link.
http://www.nissha.com/english/products/industrial_m/metallize.html

What's Nissha?

108

CSR Report 2017

Devices

Revolutionizing Sensing Technology
Nissha's FineTouch leads the way in touch input technology.
This technology is used in today's mobile phones, as well as
in gaming and digital devices all over the world, andcontinues to open doors to exciting new possibilities in along list of industries and technologies. With an eye toward
future trends in the market, we are pushing the boundaries
of touch­input functionality to create advanced sensing
devices of superior quality. Our developments in this area
include a force sensor that can detect the slightest touchwith a high degree of accuracy, and a flexible transmission antenna. We are committed to supplying ourcustomers with Flexible and Smart Devices that change the way the world works and plays.
We also handle innovative Gas Sensors technology and systems combining Sensors with Wireless Technology.
* FineTouch is a Nissha's Touch Sensor with outstanding accuracy and functionality.
* FineTouch is a registered trademark or a trademark of Nissha Printing Co., Ltd.

Used in the following ways
Nissha makes small­to­medium­sized transparent Touch Sensors. These are largely supplied for use insmartphones, tablets and portable games gears. Touch Sensors have gained attention for their "usability" and"fun operation". Applications are gradually spreading to a variety of other devices. We are aiming to expanding
into a wide range of businesses by providing devices, services, and systems with sensing functions in addition
to Touch Sensors . These will be targeted at a range of markets, including Medical Devices and Health Care,
Agriculture, Education, Housing Equipment, Industrial Equipment, and Automobiles.

Mobile Robotic Phone"RoBoHoN" Sharp Corporation*RoBoHoN is a trademark of Sharp Corporation

What's Nissha?

Mobile Gaming Gear
"Nintendo SwitchTM" Nintendo Co., Ltd.
*Nintendo Switch is a trademark ofNintendo Co., Ltd.

109

Industrial Equipment"TC8000/TC51/TC56" Touch Computer Series
Zebra Technologies, Inc.

CSR Report 2017

The force sensor
The force sensor is a touch sensor that detects the force of pressure(patent acquired). By identifying changes in pressure and the area
covered as well as the position touched, it enables subtle input
control and can reproduce even calligraphy­style brushstrokes.
Applications are as diverse as ideas. The next­generation touch
sensor promises broad use in a wide range of industries.
>for more detail, please check this link.
http://www.nissha.com/english/products/dev/force.html

Gas Sensors
Our gas sensor business, led by Nissha Group company FIS Inc.,
offers semiconductor gas sensors and applied equipment such as
modules and finished products.
Along with expanding into home fuel cell systems and hydrogenstations and similar infrastructure, rather than being limited to fuelcell vehicles, we are further accelerating specific initiatives to create
new business fields such as for medicine or POCT.
>for more detail, please check this link.
http://www.nissha.com/english/products/dev/gas.html
Used in the following ways
Sensors for gas alarms, Sensors for air purifiers and air conditioners, Breath
alcohol checkers for the prevention of drunk driving (finished product),
Halitosis analyzers (finished product), Hydrogen Detectors,etc.

What's Nissha?

110

CSR Report 2017

Life Innovation

Contributing to Healthy and Enriched Life
Life Innovation aims to contribute to safe, secure, andhealthy life through business activities in the fieldsof medical devices business. We manufactures and sellown brand products to medical institutions, while also
providing contract manufacturing services for major medical
device manufacturersin the North and Central America andEurope.
*These products are currently not sold in Japan.

Medical Devices Brand

ーVermedー

Vermed manufactures and provides dependable, high quality andeasy to use consumable medical products such as electrodes,
medical chart paper and medical surgical devices toservice hospitals in the North and Central America and Europe.

Medical Devices Contract Manufacturing Brand

ーBiomedical Innovationsー

Biomedical Innovations is the leading contract manufacturer for
innovative concept or established medical product. We design, rapid
prototype and manufacture. The products are wearables, surgicalinstrument, etc.

Information and Communication

Innovating Business Through Communication Design
Nissha identifies and clarifies the customers issues in communication strategies and designs communication
policies to solve those issues. Nissha has a wide range of products and solution development expertise,including for Commercial Printing, Publication Printing, Sales Promotions, Web Solutions, Creative Design
and Cultural Asset Art Solutions. We make full use of these, together with market research, the verification ofeffects, contents development and management, in order to realize overall communication policies which areadapted to the times.
* Nissha Printing Communications, Inc. operates the Information and Communication business of Nissha Printing Co., Ltd.

What's Nissha?

111

CSR Report 2017

Service example
AR application "Cazasmart"Nissha Printing Co., Ltd. has developed and released an AR (augmented reality) application "Cazasmart" which
can display rich contents such as moving images and detailed information superimposedly by holding (cazasu,
in Japanese) the built­in camera of a smart phone or tablet device over an image printed on a booklet, leaflet,poster, etc.

We also contribute to the preservation of important cultural assets for future
generations
Nissha has had a close relationship to works of art and cultural assets through its printing activities. We are also
involved in passing down cultural assets to future generations by utilizing our experience in the restoration anddigital archiving through ultra­precision digital photography.

What's Nissha?

112

CSR Report 2017

Editorial Policy
The Nissha CSR Report is published annually to serve as a communication tool for building a “mutually trustfulCo­existence with society,” as set forth in our corporate mission. CSR Report 2017 is compiled with theobjective of disclosing widely to our stakeholders information regarding Nissha’s initiatives and performance infiscal year 2017 (April 2016–March 2017), following the editorial policy given below.

Guidelines Used as Reference

・The core option of the GRI Sustainability Reporting Standards
・・Environmental Reporting Guidelines 2012, issued by the Japanese Ministry of the Environment
Period Covered
The information contained in this report, in principle, covers the period from April 2016 to March 2017. Some
reporting is also done regarding activities carried out after April 2017.

Publication Dates
Current issue: June 2017
Next issue: March 2018 (planned)
Last issue: June 2016

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
Printing Co., Ltd.” refers to the parent company alone. “Nissha” and “Nissha Group” refer to Nissha Printing Co.,
Ltd. and its group companies. “Global Headquarters” refers to the global headquarters and associatedcompanies located within the global headquarters premises. The major affiliated companies of each Nissha
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

Editorial Policy

Major Businesses

Nitec Industries, Inc.

Industrial Materials

Nitec Precision and Technologies, Inc.

Devices

SiMICS Co., Ltd.

DevicesFIS Inc.

DevicesNissha Printing Communications, Inc.

Information and Communication

Nitec Printing Co., Ltd.

Information and Communication

Nissha F8, Inc.

Information and Communication

M crossing Co., Ltd.

Others113

CSR Report 2017

Nissha Business Service Co., Ltd.

OthersNissha USA, Inc.

Industrial Materials, Devices

Eimo Technologies, Inc.

Industrial Materials

Si­Cal Technologies, Inc.

Industrial Materials

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

Industrial Materials

Graphic Controls Acquisition Corp.

Life Innovation

Nissha Europe GmbH

Industrial Materials, Devices

Schuster Kunststofftechnik GmbH

Industrial Materials

Back Stickers GmbH

Industrial Materials

Nissha Luxembourg Holdings S.a r.l

Industrial Materials

AR Metallizing N.V.

Industrial Materials

AR Metallizing S.r.l.

Industrial Materials

AR Metallizing Ltd.

Industrial Materials

ARM Embalagens Ltda.

Industrial Materials

Málaga 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

Taiwan Nissha Co., Ltd.

Industrial Materials, Devices

Nissha Industrial and Trading Malaysia Sdn. Bhd.

Industrial Materials

Southern Nissha Sdn. Bhd.

Industrial Materials

Nissha Vietnam Co., Ltd.

Devices

Variations in Scope of Reporting
Changes in Nissha Group companies in fiscal year 2017 and their impact on the scope of reporting are given in
the table below.

Date

Contents

Impact on scope of reporting

Nissha Group company Nitec Industries,
June 2016

Inc. closed its Tsu Factory. (The site
became a production base of theDevices business in FY2018.)

Editorial Policy

114

CSR Report 2017 contains informationon the Tsu Factory ranging primarily from
April to June 2016.

CSR Report 2017

Date

Contents

Impact on scope of reporting

Nissha Printing Co., Ltd. consolidated
subsidiary Nissha Medical International,
Inc. acquired the shares of Graphic
Controls Holdings, Inc., making theAug. 2016

holding company’s business company
Graphic Controls Acquisition Corp.,
along with its group companies,

CSR Report 2017 contains some
information on Graphic Controls
Acquisition Corp. and group companies
ranging from December 2016 to March2017.

subsidiaries of the Nissha Group.
Nissha Printing Co., Ltd. consolidated

Oct. 2016

subsidiary Nissha Europe GmbHCSR Report 2017 contains someacquired the shares of Schuster

information on Schuster

Kunststofftechnik GmbH and Back

Kunststofftechnik GmbH, Back Stickers

Stickers GmbH, making the companies,

GmbH, and group companies ranging

along with their group companies,

from December 2016 to March 2017.

subsidiaries of the Nissha Group.
Nissha Printing Co., Ltd. consolidated
subsidiary Nissha Industrial and Trading
Malaysia Sdn. Bhd. and MalaysianJan. 2017

building materials maker Scanwolf
Plastic Industries Sdn. Bhd. establishedThe event has no impact on the contentsof CSR Report 2017.

the joint venture Nissha Flooring
Industries Sdn. Bhd.
Nissha Group company Nitec Precision
Mar. 2017

and Technologies, Inc. establishedThe event has no impact on the contents

Nissha Vietnam Co., Ltd. as a base ofof CSR Report 2017.

the Devices business.

Publishing Division and Contact for Inquiries
Nissha Printing Co., Ltd.
CSR, Corporate Communications
Tel: +81­(0)75­811­8111
Fax: +81­(0)75­823­5344
Inquiries: Nissha website “Contact us” page
http://nissha.com/english/inquiry.html

Editorial Policy

115

CSR Report 2017

GRI Content Index
Nissha CSR Report 2017 conforms to the core option of the GRI Sustainability Reporting Standards.
The comparison table of GRI Standards and Nissha reporting are given below.

Disclosure

GRI Content Index

Location in CSR

Pages on

ReportPDF

General Disclosures
1. Organizational profile：GeneralGRI 102

102-1

Name of the organization

Disclosures 2016

a. Name of the organization.

Company Outline

103-105

What's Nissha?

106-112Company Outline

103-105

Nissha Group

103-105

Company Outline

103-105

What's Nissha?

106-112a. A description of the organization’s activities.
102-2

Activities, brands,

b. Primary brands, products, and services, including an

products, and services

explanation of any products or services that arebanned in certain markets.

102-3

Location of headquarters

a. Location of the organization’s headquarters.
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 to the
topics covered in the report.

102-5

Ownership and legal forma. Nature of ownership and legal form.
a. Markets served, including:i. geographic locations where products and services

102-6

Markets served

are offered;
ii. 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 the organizationiii. net sales (for private sector organizations) or net

Company Outline

103-105

revenues (for public sector organizations);

What's Nissha?

106-112iv. total capitalization (for private sector organizations)broken down in terms of debt and equity;
v. quantity of products or services provided.
102-8

Information on employees

a. Total number of employees by employment contract

and other workers(permanent and temporary), by gender.
b. Total number of employees by employment contract

Respect for Diversity＞Composition of40­43"Nissha People"(permanent and temporary), by region.
c. Total number of employees by employment type(full­time and part­time), by gender.
d. Whether a significant portion of the organization’s
activities are performed by workers who are not
employees. If applicable, a description of the natureand scale of work performed by workers who are not
employees.
e. Any significant variations in the numbers reported inDisclosures 102­8­a, 102­8­b, and 102­8­c(such as seasonal variations in the tourism or

GRI Content Index

116

CSR Report 2017

agricultural industries).
f. An explanation of how the data have been compiled,including any assumptions made.
Partnership with Our

102-9

Supply chain＞Expansion

a. A description of the organization’s supply chain,

Suppliers

including its main elements as they relate to theof Our Supply Chain

organization’s activities, primary brands, products, and* We are considering
disclosure of our supply
chain for Life Innovation
business.

services.

87a. 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, and102-10Significant changes to the

expansions;

organization and its

ii. Changes in the share capital structure and othersupply chain

capital formation, maintenance, and alteration
operations (for private sector organizations);

Environmental Impact
as a Result of

64­65

Business Operations
113-115

Editorial Policy

iii. Changes in the location of suppliers, the structure of
the supply chain, or relationships with suppliers,
including selection and termination.
Corporate Governance＞Risk Management

25­26

Environmental Policy
and Management102-11＞

Precautionary Principle ora. Whether and how the organization applies the

Structuresapproach

Precautionary Principle or approach.

Continuous

59­60

Improvements in theEnvironmental
Management System(EMS)

102-12External initiatives

a. A list of externally­developed economic,

CEO Message

environmental and social charters, principles, or otherNissha’s CSR United

initiatives to which the organization subscribes, or

Nations Global

which it endorses.

Compact＞2­3
12Along with Local
102-13

Membership ofassociations＞

a. A list of the main memberships of industry or otherCommunities

associations, and national or international advocacy

Membership inorganizations.

Community

102

Organizations
2. Strategy
a. A statement from the most senior decision­maker of102-14

Statement from seniordecision-maker

the organization (such as CEO, chair, or equivalentsenior position) about the relevance of sustainability to

CEO Message

2-3

CEO Message

2­3

the organization and its strategy for addressing
sustainability.

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

opportunities.

＞

Nissha’s CSR
Materiality

6­8

3. Ethics and integrity
Values, principles,102-16

Nissha’s CSR

Approach to CSR

Mechanisms for advice

a. A description of internal and external mechanisms

Human Rights

and concerns about ethics

for:Hotlinebehavior
102-17＞a. A description of the organization’s values, principles,standards, and norms of behavior.

standards, and norms of

＞

4

33

i. seeking advice about ethical and lawful behavior,and organizational integrity;

GRI Content Index117

CSR Report 2017

ii. reporting concerns about unethical or unlawful
behavior, and organizational integrity.
4. Governancea. Governance structure of the organization, including
102-18Governance structurecommittees of the highest governance body.
b. Committees responsible for decision­making on
economic, environmental, and social topics.

Corporate Governance＞Overview of＞CSR

Nissha’s CSRManagementa. Process for delegating authority for economic,
102-19Delegating authority

16­23

Corporate Governance5＞CSR

environmental, and social topics from the highest

Nissha’s CSR

governance body to senior executives and other

Management

5

employees.
Executive-level102-20

responsibility foreconomic, environmental,
and social topics

a. Whether the organization has appointed an
executive­level position or positions with responsibility
for economic, environmental, and social topics.
b. Whether post holders report directly to the highest＞CSR

Nissha’s CSRManagement

5

governance body.
Corporate Governance＞Overview ofa. Processes for consultation between stakeholders

102-21

Consulting stakeholders

and the highest governance body on economic,

on economic,

environmental, and social topics.

environmental, and social

b. If consultation is delegated, describe to whom it is

topicsdelegated and how the resulting feedback is provided
to the highest governance body.

16­23

Corporate Governance＞Nissha’s CSR CSRManagement

Human Rights
Freedom of

5＞

Association andCollective Bargaining,

34-35

Relationship with
Labor Union
a. Composition of the highest governance body and its
committees by:i. executive or non­executive;
ii. independence;
iii. tenure on the governance body;
102-22Composition of theiv. number of each individual’s other significant

highest governance body

positions and commitments, and the nature of theand its committees

commitments;
v. gender;
vi. membership of under­represented social groups;

Corporate Governance＞Overview of16­23

Corporate Governance
Respect for Diversity＞Composition of40­43"Nissha People"

vii. competencies relating to economic, environmental,
and social topics;
viii. stakeholder representation.
a. Whether the chair of the highest governance body is102-23Chair of the highest
governance bodyalso an executive officer in the organization.
b. If the chair is also an executive officer, describe hisor her function within the organization’s management
and the reasons for this arrangement.

Corporate Governance＞Overview ofCorporate Governance＞Role of the Board of

19

Directors

a. Nomination and selection processes for the highest
governance body and its committees.
b. Criteria used for nominating and selecting highest
Nominating and selecting
102-24the highest governancebodygovernance body members, including whether andhow:i. stakeholders (including shareholders) are involved;
ii. diversity is considered;

Corporate Governance＞Overview of16­23

Corporate Governance19

Corporate Governanceiii. independence is considered;
iv. expertise and experience relating to economic,
environmental, and social topics are considered.
102-25GRI Content Index

Conflicts of interest

a. Processes for the highest governance body to118

CSR Report 2017

ensure conflicts of interest are avoided and managed.
b. Whether conflicts of interest are disclosed to
stakeholders, including, as a minimum:
i. Cross­board membership;＞Overview ofCorporate Governance＞Role of the Board of
Directors

ii. Cross­shareholding with suppliers and otherstakeholders;
iii. Existence of controlling shareholder;
iv. Related party disclosures.

＞

Nissha’s CSR
Role of highest
102-26governance body insetting purpose, values,
and strategy

4a. Highest governance body’s and senior executives’

Approach to CSR

roles in the development, approval, and updating ofNissha’s CSR CSR

the organization’s purpose, value or mission

Management

statements, strategies, policies, and goals related to

Corporate Governanceeconomic, environmental, and social topics.

＞

5＞Internal Control

23­25

System102-27

Collective knowledge ofhighest governance bodya. Measures taken to develop and enhance the highest
governance body’s collective knowledge of economic,
environmental, and social topics.
a. Processes for evaluating the highest governancebody’s performance with respect to governance ofeconomic, environmental, and social topics.
b. Whether such evaluation is independent or not, and102-28

Evaluating the highest

its frequency.

governance body’sc. Whether such evaluation is a self­assessment.

performanced. Actions taken in response to evaluation of thehighest governance body’s performance with respect
to governance of economic, environmental, and social
topics, including, as a minimum, changes inmembership and organizational practice.
a. Highest governance body’s role in identifying and102-29＞managing economic, environmental, and social topics

Nissha’s CSR

and their impacts, risks, and opportunities – including

Approach to CSR

Identifying and managing

its role in the implementation of due diligence

Nissha’s CSR CSR

economic, environmental,

processes.

Management

and social impacts

b. Whether stakeholder consultation is used to support

Corporate Governancethe highest governance body’s identification andmanagement of economic, environmental, and social

4

＞

5

＞Internal Control

23­25

Systemtopics and their impacts, risks, and opportunities.

＞

Nissha’s CSR
a. Highest governance body’s role in reviewing the102-30Effectiveness of risk

effectiveness of the organization’s risk management

management processes

processes for economic, environmental, and social

4

Approach to CSR＞

Nissha’s CSR CSRManagement

5

Corporate Governance＞Internal Control

topics.

23­25

System＞Nissha’s CSR

4Approach to CSR
102-31＞

Review of economic,

a. Frequency of the highest governance body’s review

Nissha’s CSR CSR

environmental, and socialof economic, environmental, and social topics and their

Management

topics

impacts, risks, and opportunities.

Corporate Governance

5＞Internal Control

23­25

System102-32102-33

＞

6­8

＞

4

Highest governancea. The highest committee or position that formallybody’s role inreviews and approves the organization’s sustainability

sustainability reporting

report and ensures that all material topics are covered.

Communicating criticala. Process for communicating critical concerns to the

Nissha’s CSR

concerns

highest governance body.

Approach to CSR

Nissha’s CSR
Materiality＞

Nissha’s CSR CSRManagement

5

Corporate Governance

GRI Content Index

119

23­25

CSR Report 2017

＞Internal Control
Systema. Total number and nature of critical concerns that102-34＞Nature and total number

were communicated to the highest governance body.

Nissha’s CSR CSR

of critical concernsb. Mechanism(s) used to address and resolve critical

Management

5

concerns.
a. Remuneration policies for the highest governancebody and senior executives for the following types of
remuneration:i. Fixed pay and variable pay, including performance­
based pay, equity­based pay, bonuses, and deferredor vested shares;
ii. Sign­on bonuses or recruitment incentive payments;
iii. Termination payments;
102-35

Remuneration policies

iv. Clawbacks;
v. Retirement benefits, including the difference
between benefit schemes and contribution rates for thehighest governance body, senior executives, and allother employees.
b. How performance criteria in the remuneration
policies relate to the highest governance body’s andCorporate Governance＞Overview ofCorporate Governance＞Nomination andRemuneration

Committee, Policy on

19­21

Determining
Remuneration of
Directors, Members of
the Board and Audit
and Supervisory Board
Members

senior executives’ objectives for economic,
environmental, and social topics.
Corporate Governance＞Overview ofCorporate Governancea. Process for determining remuneration.
b. Whether remuneration consultants are involved in
102-36＞Nomination andRemuneration

Process for determining

determining remuneration and whether they are

Committee, Policy on

remuneration

independent of management.

Determiningc. Any other relationships that the remuneration

Remuneration of

consultants have with the organization.

Directors, Members of

19­21

the Board and Audit
and Supervisory Board
Membersa. How stakeholders’ views are sought and taken into
102-37

Stakeholders’ involvement

account regarding remuneration.

in remuneration

b. If applicable, the results of votes on remuneration
policies and proposals.
a. Ratio of the annual total compensation for the102-38Annual total compensation
ratio

organization’s highest­paid individual in each countryof significant operations to the median annual totalcompensation for all employees (excluding thehighest­paid individual) in the same country.
a. Ratio of the percentage increase in annual total

Percentage increase in
102-39annual total compensation
ratio

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

5. Stakeholder engagement102-40102-41

102-42GRI Content Index

List of stakeholder groups＞a. A list of stakeholder groups engaged by the

Nissha’s CSR

organization.

Nissha's Stakeholders

Collective bargaining

a. Percentage of total employees covered by collective

agreements

bargaining agreements.

Identifying and selectinga. The basis for identifying and selecting stakeholders

120

Human Rights

8-11

＞

Relationship with

35

Labor Union＞

Nissha’s CSR

8-11

CSR Report 2017

stakeholders

with whom to engage.

Nissha's Stakeholdersa. The organization’s approach to stakeholder
102-43

Approach to stakeholder
engagement

engagement, including frequency of engagement by
type and by stakeholder group, and an indication ofwhether any of the engagement was undertaken＞

Nissha’s CSR

Nissha's Stakeholders

8-11

specifically as part of the report preparation process.

＞Nissha’s CSR

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

Key topics and concerns

i. how the organization has responded to those key

raisedtopics and concerns, including through its reporting;
ii. the stakeholder groups that raised each of the key
topics and concerns.

8-11Partnership with Our＞CSR

Suppliers88­89

Supplier Audits
Human Rights＞

Building and Operationof a Management

33­34

System, Freedom of
Association andCollective Bargaining

6. Reporting practicea. A list of all entities included in the organization’s
Entities included in the102-45consolidated financial
statements

consolidated financial statements or equivalent
documents.
b. Whether any entity included in the organization’s
consolidated financial statements or equivalent＞

Editorial Policy

Scope of Reporting

113

Nissha Group

103-105

documents is not covered by the report.
a. An explanation of the process for defining the report102-46

Defining report content
and topic Boundaries

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

＞

6­8

＞

6­8

Nissha’s CSR
Materiality

report content.
102-47

List of material topics

a. A list of the material topics identified in the process

Nissha’s CSR

for defining report content.

Materiality＞

Safety and HealthOccurrence of Work102-48

Restatements of
informationa. The effect of any restatements of information given

related Accidents

in previous reports, and the reasons for such

Prevention of Further

restatements.

Global Warming

54＞

Status of CO2

66­68

Emissions at Nissha

102-49Changes in reporting

102-50

Reporting period

102-51

Date of most recent report102-52

Reporting cycle

Contact point for
102-53questions regarding thereport102-54a. Significant changes from previous reporting periodsin the list of material topics and topic Boundaries.

a. Reporting period for the information provided.

＞

Editorial Policy

Variations in Scope of

＞

113

＞

113

＞

113

Editorial Policy

Period Covereda. If applicable, the date of the most recent previous

Editorial Policy

report.

Period Covered

a. Reporting cycle.

114-115

Reporting

Editorial Policy

Period Covered＞

Editorial Policya. The contact point for questions regarding the report

Publishing Division

or its contents.

and Contact for

115

Inquiries

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

GRI Content Index

116-155

accordance with the GRI

prepared a report in accordance with the GRI

Editorial Policy

113-115

Standards

Standards, either:i. ‘This report has been prepared in accordance withGRI Content Index

121

CSR Report 2017

the GRI Standards: Core option’;
ii. ‘This report has been prepared in accordance with
the GRI Standards: Comprehensive option’.
a. The GRI content index, which specifies each of the
GRI Standards used and lists all disclosures includedin the report.
b. For each disclosure, the content index shall include:i. the number of the disclosure (for disclosures covered
102-55

GRI content index

by the GRI Standards);

GRI Content Index

116-155

ii. the page number(s) or URL(s) where the information
can be found, either within the report or in otherpublished materials;
iii. if applicable, and where permitted, the reason(s) foromission when a required disclosure cannot be made.

a. A description of the organization’s policy and current
practice with regard to seeking external assurance forthe 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
102-56External assurance

report, a description of what has and what has not

Assurance has notbeen assured and on what basis, including the

been sought for theassurance standards used, the level of assurance

sustainability report.

obtained, and any limitations of the assurance
process;
ii. The relationship between the organization and theassurance provider;
iii. Whether and how the highest governance body or
senior executives are involved in seeking external
assurance for the organization’s sustainability 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 includes
a description of:Approach 2016
Explanation of the103-1

i. where the impacts occur;

material topic and its

ii. the organization’s involvement with the impacts. For

Boundary

example, whether the organization has caused orcontributed to the impacts, or is directly linked to theimpacts 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 management

The management
103-2

approach and its
components

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

103-3

Evaluation of thea. An explanation of how the organization evaluates

management approach

the management approach, including:i. the mechanisms for evaluating the effectiveness of

GRI Content Index122

CSR Report 2017

the management approach;
ii. the results of the evaluation of the management
approach;
iii. any related adjustments to the management
approach.

：Economic

GRI 201

a. Direct economic value generated and distributed

Performance 2016

(EVG&D) on an accruals basis, including the basic
components for the organization’s global operations aslisted below. If data are presented on a cash basis,
report the justification for this decision in addition toreporting the following basic components:
i. Direct economic value generated: revenues;
201-1

Direct economic value

ii. Economic value distributed: operating costs,

Distribution of Added

generated and distributed

employee wages and benefits, payments to providers

Value to Stakeholders

30

of capital, payments to government by country, andcommunity 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 climate changethat have the potential to generate substantive
changes in operations, revenue, or expenditure,including:Financial implications and201-2other risks andopportunities due toclimate change

i. a description of the risk or opportunity and its
classification as either physical, regulatory, or other;
ii. a description of the impact associated with the risk
or opportunity;
iii. the financial implications of the risk or opportunity
before action is taken;
iv. the methods used to manage the risk or opportunity;
v. the costs of actions taken to manage the risk oropportunity.
a. If the plan’s liabilities are met by the organization’s
general resources, the estimated value of thoseliabilities.
b. If a separate fund exists to pay the plan’s pension
liabilities:
i. the extent to which the scheme’s liabilities are
estimated to be covered by the assets that have been
set aside to meet them;
ii. the basis on which that estimate has been arrived at;

201-3

Defined benefit planiii. when that estimate was made.

obligations and otherc. If a fund set up to pay the plan’s pension liabilities isretirement plans

not fully covered, explain the strategy, if any, adopted
by the employer to work towards full coverage, and thetimescale, if any,
by which the employer hopes to achieve full coverage.
d. Percentage of salary contributed by employee or
employer.
e. Level of participation in retirement plans, such as
participation in mandatory or voluntary schemes,
regional, or country­based schemes, or those withfinancial impact.

201-4

Financial assistancea. Total monetary value of financial assistancereceived from government

received 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;
iv. awards;

GRI Content Index123

CSR Report 2017

v. royalty holidays;
vi. financial assistance from Export Credit Agencies(ECAs);
vii. financial incentives;
viii. other financial benefits received or receivable fromany government for any operation.
b. The information in 201­4­a by country.
c. Whether, and the extent to which, any government ispresent 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 includes
a description of:Approach 2016
Explanation of the103-1

i. where the impacts occur;

material topic and its

ii. the organization’s involvement with the impacts. For

Boundary

example, whether the organization has caused orcontributed to the impacts, or is directly linked to theimpacts 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 management

The management
103-2

approach and its
components

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 of

103-3

Evaluation of thethe management approach;

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

：

GRI 202 Market

a. When a significant proportion of employees are

Presence 2016

compensated based on wages subject to minimum
wage rules, report the relevant ratio of the entry level
wage by gender at significant locations of operation to
the minimum wage.
b. When a significant proportion of other workers(excluding employees) performing the organization’s

202-1

Ratios of standard entry

activities are compensated based on wages subject tolevel wage by gender

minimum wage rules, describe the actions taken tocompared to local

determine whether these workers are paid above theminimum wage

minimum wage.
c. Whether a local minimum wage is absent or variable
at significant locations of operation, by gender. In
circumstances in which different minimums can beused as a reference, report which minimum wage isbeing used.
d. The definition used for ‘significant locations ofoperation’.

202-2

GRI Content Index

Proportion of seniora. Percentage of senior management at significant

management hired fromlocations of operation that are hired from the local

124

Respect for Diversity＞Composition of40­43

CSR Report 2017

the local community

community.

"Nissha People"

b. The definition used for ‘senior management’.
c. The organization’s geographical definition of ‘local’.
d. The definition used for ‘significant locations ofoperation’.
Indirect Economic Impacts
GRI 103：a. An explanation of why the topic is material.
b. The Boundary for the material topic, which includes

Managementa description of:Approach 2016
Explanation of the103-1

i. where the impacts occur;

material topic and its

ii. the organization’s involvement with the impacts. For

Boundary

example, whether the organization has caused orcontributed to the impacts, or is directly linked to theimpacts 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 management

The management
103-2

approach and its
components

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 of

103-3

Evaluation of thethe 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 infrastructure

Economic Impacts

investments and services supported.

2016
203-1

Infrastructure investments
and services supported

b. Current or expected impacts on communities andlocal economies, including positive and negative
impacts where relevant.
c. Whether these investments and services arecommercial, in­kind, or pro bono engagements.
a. Examples of significant identified indirect economic
impacts of the organization, including positive and203-2

Significant indirect
economic impacts

negative impacts.
b. Significance of the indirect economic impacts in thecontext of external benchmarks and stakeholder
priorities, such as national and international standards,
protocols, and policy agendas.

Procurement Practices：

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

Management

material topic and its

b. The Boundary for the material topic, which includes

Approach 2016

Boundarya description of:

GRI 103103-1

i. where the impacts occur;
ii. the organization’s involvement with the impacts. For
example, whether the organization has caused orcontributed to the impacts, or is directly linked to the

GRI Content Index

125

CSR Report 2017

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 management
The management
103-2

approach and its
components

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 of

103-3

Evaluation of thethe 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 Practices

significant locations of operation that is spent on

2016
204-1

Proportion of spending on
local suppliers

suppliers local to that operation (such as percentage of
products and services purchased locally).
b. The organization’s geographical definition of ‘local’.
c. The definition used for ‘significant locations ofoperation’.

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

Management

b. The Boundary for the material topic, which includes

Approach 2016a description of:
103-1

＞

Explanation of thei. where the impacts occur;

Nissha’s CSR

material topic and its

ii. the organization’s involvement with the impacts. For

Materiality

Boundary

example, whether the organization has caused or

Editorial Policy

6­8113-115

contributed to the impacts, or is directly linked to theimpacts 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 management
The management
103-2

approach and its
components

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

103-3

＞CSR

Nissha’s CSRManagement＞

Nissha’s CSR
Materiality

Human Rights
Hotline

＞

5
6­8
33

Corporate Ethics andCompliance＞

Guideline of the
Corporate Ethics and28­29

Compliance,
Promotion Structure
and Initiatives
Initiatives Related toAnti-corruption

a. An explanation of how the organization evaluates

Nissha’s CSR

management approach

the management approach, including:Management＞CSR

Evaluation of the92

5i. the mechanisms for evaluating the effectiveness ofthe management approach;

GRI Content Index126

CSR Report 2017

ii. the results of the evaluation of the management
approach;
iii. any related adjustments to the management
approach.

：Anti-

a. Total number and percentage of operations

GRI 205

corruption 2016

205-1

Operations assessed forassessed for risks related to corruption.

risks related to corruption

b. Significant risks related to corruption identified
through the risk assessment.
a. Total number and percentage of governance bodymembers that the organization’s anti­corruption
policies and procedures have been communicated to,
broken down by region.
b. Total number and percentage of employees that theorganization’s anti­corruption policies and procedures
have been communicated to, broken down by
employee category and region.

Communication and205-2

training about anti­
corruption policies andproceduresc. Total number and percentage of business partners
that the organization’s anti­corruption policies andprocedures have been communicated to, broken down
by type of business partner and region. Describe if theorganization’s anti­corruption policies and procedures
have been communicated to any other persons or

Initiatives Related toAnti-corruption

92

Corporate Ethics andCompliance＞

Promotion Structure28­29

and Initiatives

organizations.
d. Total number and percentage of governance bodymembers that have received training on anti­
corruption, broken down by region.
e. Total number and percentage of employees thathave received training on anti­corruption, broken downby employee category and region.
a. Total number and nature of confirmed incidents ofcorruption.
b. Total number of confirmed incidents in which
employees were dismissed or disciplined for
Confirmed incidents of
205-3

corruption.

corruption and actions

c. Total number of confirmed incidents when contracts

takenwith business partners were terminated or not renewed
due to violations related to corruption.
d. Public legal cases regarding corruption brought
against the organization or its employees during thereporting period and the outcomes of such cases.

Anti­competitive Behavior：

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

Management

b. The Boundary for the material topic, which includes
a description of:Approach 2016
103-1

＞

Explanation of thei. where the impacts occur;

Nissha’s CSR

material topic and its

ii. the organization’s involvement with the impacts. For

Materiality

Boundary

example, whether the organization has caused or

Editorial Policy

6­8113-115

contributed to the impacts, or is directly linked to theimpacts through its business relationships.
c. Any specific limitation regarding the topic Boundary.
103-2

GRI Content Index＞CSR

The managementa. An explanation of how the organization manages

Nissha’s CSR

approach and its

the topic.

Management

components

b. A statement of the purpose of the management

Nissha’s CSR

approach.

Materialityc. A description of the following, if the management

Human Rights

approach includes that component:

Hotlinei. Policies

Corporate Ethics andii. Commitments

Complianceiii. Goals and targets

Guideline of theiv. Responsibilities

Corporate Ethics andv. Resources

Compliance,

127

5

＞

6­8

＞

33

＞

28­29

CSR Report 2017

vi. Grievance mechanisms

Promotion Structurevii. Specific actions, such as processes, projects,

and Initiatives

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

＞

Evaluation of thethe management approach;

Nissha’s CSR CSR

management approachii. the results of the evaluation of the management

Management

5

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

：

GRI 206 Anti-a. Number of legal actions pending or completedcompetitive Behavior

Legal actions for anti­

2016
206-1

competitive behavior, anti­
trust, and monopoly
practicesduring the reporting period regarding anti­competitive
behavior and violations of anti­trust 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 includes
a description of:Approach 2016
Explanation of the103-1

i. where the impacts occur;

material topic and its

ii. the organization’s involvement with the impacts. For

Boundary

example, whether the organization has caused orcontributed to the impacts, or is directly linked to theimpacts 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 management

The management
103-2

approach and its
components

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 of

103-3

Evaluation of thethe management approach;

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

：

GRI 301 Materials

a. Total weight or volume of materials that are used to

2016

produce and package the organization’s primary

Environmental Impact

products and services during the reporting period, by:as a Result ofi. non­renewable materials used;

Business Operations

301-1

Materials used by weightor volume

64­65

ii. renewable materials used.

301-2

GRI Content Index

Recycled input materials
useda. Percentage of recycled input materials used to
manufacture the organization’s primary products andservices.

128

CSR Report 2017

a. Percentage of reclaimed products and their
301-3

Reclaimed products andpackaging materials for each product category.

their packaging materials

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 includes
a description of:Approach 2016
103-1

＞

Explanation of thei. where the impacts occur;

Nissha’s CSR

material topic and its

ii. the organization’s involvement with the impacts. For

Materiality

Boundary

example, whether the organization has caused or

Editorial Policy

6­8113-115

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

The management
103-2

approach and its
components

＞CSR

5

＞

6­8

＞

33

the topic.

Nissha’s CSR

b. A statement of the purpose of the management

Management

approach.

Nissha’s CSR

c. A description of the following, if the management

Materiality

approach includes that component:

Human Rights

i. Policies

Hotlineii. Commitments

Environmental Policy

iii. Goals and targets

and Management

iv. Responsibilities

Structures

58­60

v. Resources

Environmental

vi. Grievance mechanisms

Objectives and Statusvii. Specific actions, such as processes, projects,of Achievement

61­63

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

＞

Evaluation of thethe management approach;

Nissha’s CSR CSR

management approachii. the results of the evaluation of the management

Management

5

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

：

GRI 302 Energy

a. Total fuel consumption within the organization from2016

non­renewable sources, in joules or multiples, andincluding fuel types used.
b. Total fuel consumption within the organization fromrenewable sources, in joules or multiples, andincluding fuel types used.
c. In joules, watt­hours or multiples, the total:
i. electricity consumption

302-1

Energy consumption
within the organizationii. heating consumption

Environmental Impactiii. cooling consumption

as a Result ofiv. steam consumption

Business Operations

d. In joules, watt­hours or multiples, the total:

Prevention of Further

i. electricity sold

Global Warming

64­65

66­69

ii. heating soldiii. cooling soldiv. steam solde. Total energy consumption within the organization, injoules or multiples.
f. Standards, methodologies, assumptions, and/or
calculation tools used.
g. Source of the conversion factors used.
302-2

Energy consumption

a. Energy consumption outside of the organization, in

outside of the organization

joules or multiples.
b. Standards, methodologies, assumptions, and/or

GRI Content Index

129

CSR Report 2017

calculation tools used.
c. Source of the conversion factors used.
a. Energy intensity ratio for the organization.
b. Organization­specific metric (the denominator)
chosen to calculate the ratio.
302-3

Energy intensity

c. Types of energy included in the intensity ratio;
whether fuel, electricity, heating, cooling, steam, or all.

Prevention of Further

66­69

Global Warmingd. 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; whether
302-4

Reduction of energy

fuel, electricity, heating, cooling, steam, or all.

consumptionc. 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 sold products
and services achieved during the reporting period, in

Reductions in energy
302-5

requirements of products
and services

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

Management

b. The Boundary for the material topic, which includes
a description of:Approach 2016
103-1

＞

Explanation of thei. where the impacts occur;

Nissha’s CSR

material topic and its

ii. the organization’s involvement with the impacts. For

Materiality

Boundary

example, whether the organization has caused or

Editorial Policy

6­8113-115

contributed to the impacts, or is directly linked to theimpacts 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 management
The management
103-2

approach and its
components

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

＞

5

＞

6­8

Nissha’s CSR CSRManagement

Nissha’s CSR
Materiality

Human Rights
Hotline＞33

Environmental Policy
58­60

and Management
Structuresvii. 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 of
103-3

＞

Evaluation of thethe management approach;

Nissha’s CSR CSR

management approachii. the results of the evaluation of the management

Management

5

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

：Water 2016

GRI 303

GRI Content Index

303-1

Water withdrawal bya. Total volume of water withdrawn, with a breakdown

130

Environmental Impact

64­65

CSR Report 2017

sourceby the following sources:

as a Result ofi. Surface water, including water from wetlands, rivers,

Business Operations

lakes, and oceans;
ii. Ground water;
iii. Rainwater collected directly and stored by theorganization;
iv. Waste water from another organization;
v. Municipal water supplies or other public or private
water utilities.
b. Standards, methodologies, and assumptions used.
a. Total number of water sources significantly affectedby withdrawal by type:i. Size of the water source;
Water sources303-2

significantly affected bywithdrawal of water

ii. Whether the source is designated as a nationally orinternationally protected area;
iii. Biodiversity value (such as species diversity andendemism, 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.
a. Total volume of water recycled and reused by theorganization.

303-3

Water recycled andb. Total volume of water recycled and reused as areusedpercentage of the total water withdrawal as specified inDisclosure 303­1.
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 includes
a description of:Approach 2016
Explanation of the103-1

i. where the impacts occur;

material topic and its

ii. the organization’s involvement with the impacts. For

Boundary

example, whether the organization has caused orcontributed to the impacts, or is directly linked to theimpacts 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 management

The management
103-2

approach and its
components

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 of

103-3

Evaluation of thethe management approach;

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

：

GRI 304 Biodiversity
2016

GRI Content Index

304-1

Operational sites owned,a. For each operational site owned, leased, managed

leased, managed in, or

in, or adjacent to, protected areas and areas of high131

CSR Report 2017

adjacent to, protectedbiodiversity value outside protected areas, theareas and areas of highfollowing information:

biodiversity value outside

i. Geographic location;

protected areas

ii. Subsurface and underground land that may be
owned, leased, or managed by the organization;
iii. Position in relation to the protected area (in thearea, adjacent to, or containing portions of theprotected area) or the high biodiversity value area
outside protected areas;
iv. Type of operation (office, manufacturing or
production, or extractive);
v. Size of operational site in km2 (or another unit, if
appropriate);
vi. Biodiversity value characterized by the attribute of
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).
a. Nature of significant direct and indirect impacts on
biodiversity with reference to one or more of thefollowing: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, and

304-2

Significant impacts ofpathogens;

activities, products, andiv. Reduction of species;

services on biodiversity

v. Habitat conversion;
vi. Changes in ecological processes outside thenatural range of variation (such as salinity or changes
in groundwater level).
b. Significant direct and indirect positive and negative
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 protected or
restored, and whether the success of the restoration
measure was or is approved by independent external
professionals.

304-3

Habitats protected or
restoredb. Whether partnerships exist with third parties toprotect or restore habitat areas distinct from where theorganization has overseen and implemented
restoration or protection measures.
c. Status of each area based on its condition at theclose of the reporting period.
d. Standards, methodologies, and assumptions used.
a. Total number of IUCN Red List species and national
conservation list species with habitats in areas affected

304-4

IUCN Red List species

by the operations of the organization, by level ofand national conservation

extinction risk:

list species with habitats in

i. Critically endangered

areas affected by

ii. Endangered

operations

iii. Vulnerable
iv. Near threatenedv. Least concern

GRI Content Index132

CSR Report 2017

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

Management

b. The Boundary for the material topic, which includes

Approach 2016a description of:
103-1

＞

Explanation of thei. where the impacts occur;

Nissha’s CSR

material topic and its

ii. the organization’s involvement with the impacts. For

Materiality

Boundary

example, whether the organization has caused or

Editorial Policy

6­8113-115

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

＞CSR

Nissha’s CSR

The management
103-2

approach and its
components

5a. An explanation of how the organization manages

Management

the topic.

Nissha’s CSR

b. A statement of the purpose of the management

Materiality

approach.

Nissha’s CSR

c. A description of the following, if the management

Nissha's Stakeholders

approach includes that component:i. Policies

＞

6­8

＞

＞External

Assessment＞

ii. Commitments

Human Rights

iii. Goals and targets

Hotlineiv. Responsibilities

Environmental Policy

v. Resources

and Management

vi. Grievance mechanisms

Structuresvii. Specific actions, such as processes, projects,

Environmental

programs and initiatives

Objectives and Status

10-11

33

58­60

61­63

of Achievementa. An explanation of how the organization evaluates
the management approach, including:i. the mechanisms for evaluating the effectiveness of103-3

the management approach;

Nissha’s CSR

management approachii. the results of the evaluation of the management

Management＞CSR

Evaluation of the5

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

：Emissions

GRI 305

a. Gross direct (Scope 1) GHG emissions in metric

Environmental Impact

2016

tons of CO2 equivalent.

as a Result ofb. Gases included in the calculation; whether CO2,

Business Operations

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

Prevention of Further

c. Biogenic CO2 emissions in metric tons of CO2

Global Warming

64­65

66­69

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 in emissions
that triggered recalculations of base year emissions.
e. Source of the emission factors and the global
warming potential (GWP) rates used, or a reference 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.

305-2

Energy indirect (Scope 2)
GHG emissions

a. Gross location­based energy indirect (Scope 2)
GHG emissions in metric tons of CO2 equivalent.
b. If applicable, gross market­based energy indirect(Scope 2) GHG emissions in metric tons of CO2
equivalent.
c. If available, the gases included in the calculation;
whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or
all.
d. Base year for the calculation, if applicable, including:i. the rationale for choosing it;ii. emissions in the base year;

GRI Content Index

133

CSR Report 2017

iii. the context for any significant changes in emissions
that triggered recalculations of base year emissions.
e. Source of the emission factors and the global
warming potential (GWP) rates used, or a reference 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.
The reporting organization shall report the following
information:a. Gross other indirect (Scope 3) GHG emissions inmetric tons of CO2 equivalent.
b. If available, the 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.
305-3

Other indirect (Scope 3)
GHG emissions

d. Other indirect (Scope 3) GHG emissions categories
and activities included in the calculation.
e. Base year for the calculation, if applicable, including:i. the rationale for choosing it;

Prevention of Further＞

Global Warming

Initiative in Scope 3

69

Management

ii. emissions in the base year;
iii. the context for any significant changes in emissions
that triggered recalculations of base year emissions.
f. Source of the emission factors and the global
warming potential (GWP) rates used, or a reference to
the GWP source.
g. Standards, methodologies, assumptions, and/or
calculation tools used.
a. GHG emissions intensity ratio for the organization.
b. Organization­specific metric (the denominator)
chosen to calculate the ratio.
305-4

GHG emissions intensity

c. Types of GHG emissions included in the intensity

Prevention of Further

ratio; whether direct (Scope 1), energy indirect (Scope

Global Warming

66-692), 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 CO2,
CH4, N2O, HFCs, PFCs, SF6, NF3, or all.
305-5

Reduction of GHG
emissionsc. Base year or baseline, including the rationale forchoosing it.
d. Scopes in which reductions took place; whether
direct (Scope 1), energy indirect (Scope 2), and/or

Prevention of Further＞

Global Warming
Status of CO2

66-69

Emissions at Nissha

other indirect (Scope 3).
e. Standards, methodologies, assumptions, and/or
calculation tools used.
a. Production, imports, and exports of ODS in metric
Emissions of ozone­305-6

depleting substances(ODS)

tons of CFC­11 (trichlorofluoromethane) equivalent.
b. Substances included in the calculation.
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 multiples,

sulfur oxides (SOX), andfor each of the following:other significant airi. NOXemissionsii. SOX
iii. Persistent organic pollutants (POP)iv. Volatile organic compounds (VOC)

GRI Content Index134

CSR Report 2017

v. Hazardous air pollutants (HAP)vi. Particulate matter (PM)vii. Other standard categories of air emissions
identified in relevant regulations
b. Source of the emission factors used.
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 includes

Approach 2016a description of:
103-1

＞

Explanation of thei. where the impacts occur;

Nissha’s CSR

material topic and its

ii. the organization’s involvement with the impacts. For

Materiality

Boundary

example, whether the organization has caused or

Editorial Policy

6-8
113-115

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

＞CSR

5

＞

6-8

Nissha’s CSR

The management
103-2

approach and its
components

a. An explanation of how the organization manages

Management

the topic.

Nissha’s CSR

b. A statement of the purpose of the management

Materiality

approach.

Nissha’s CSR

c. A description of the following, if the management

Nissha's Stakeholders

approach includes that component:＞＞External

Assessment

i. Policies＞

ii. Commitments

Human Rights

iii. Goals and targets

Hotlineiv. Responsibilities

Environmental Policy

v. Resources

and Management

vi. Grievance mechanisms

Structuresvii. Specific actions, such as processes, projects,

Environmental

programs and initiatives

Objectives and Status

10-11

33

58-60

61-63

of Achievementa. An explanation of how the organization evaluates
the management approach, including:i. the mechanisms for evaluating the effectiveness of103-3

the management approach;

Nissha’s CSR

management approachii. the results of the evaluation of the management

Management＞CSR

Evaluation of the5

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

：EffluentsGRI 306

a. Total volume of planned and unplanned waterand Waste 2016

discharges by:
306-1

Water discharge by qualityand destinationi. destination;

Environmental Impact

ii. quality of the water, including treatment method;

as a Result ofiii. whether the water was reused by another

Business Operations

64-65

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

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

Environmental Impact

disposal methodby the following disposal methods where applicable:

as a Result ofi. Reuse

Business Operations

ii. Recycling

Status of Wasteiii. Composting

Generation at Bases

64-65

76-78

iv. Recovery, including energy recovery
v. Incineration (mass burn)vi. Deep well injection
vii. Landfill
viii. On­site storageix. Other (to be specified by the organization)b. Total weight of non­hazardous waste, with abreakdown by the following disposal methods where

GRI Content Index

135

CSR Report 2017

applicable:
i. Reuse
ii. Recyclingiii. Compostingiv. Recovery, including energy recovery
v. Incineration (mass burn)vi. Deep well injection
vii. Landfill
viii. On­site storageix. Other (to be specified by the organization)c. How the waste disposal method has been
determined:
i. Disposed of directly by the organization, or otherwise
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 each spillthat 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), and other (tobe 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

iii. Hazardous waste exported

waste

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 byi. the size of the water body and related habitat;

water discharges and/or

ii. whether the water body and related habitat is

runoffdesignated as a nationally or internationally protected
area;
iii. the biodiversity value, such as total number ofprotected species.

Environmental Compliance：

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

Management

b. The Boundary for the material topic, which includes

Approach 2016a description of:
103-1

＞

Explanation of thei. where the impacts occur;

Nissha’s CSR

material topic and its

ii. the organization’s involvement with the impacts. For

Materiality

Boundary

example, whether the organization has caused or

Editorial Policy

6-8
113-115

contributed to the impacts, or is directly linked to theimpacts through its business relationships.
c. Any specific limitation regarding the topic Boundary.
103-2

GRI Content Index

a. An explanation of how the organization manages

Nissha’s CSR

approach and its

the topic.

Management

components

b. A statement of the purpose of the management

Nissha’s CSR＞CSR

The management

136

＞

5
6-8

CSR Report 2017

approach.

Materialityc. A description of the following, if the management

Corporate Ethics andapproach includes that component:

Compliancei. Policies

Guideline of theii. Commitments

Corporate Ethics andiii. Goals and targets

Compliance,

iv. Responsibilities

Promotion Structure

v. Resources

and Initiatives

vi. Grievance mechanisms

Human Rights

vii. Specific actions, such as processes, projects,

Hotlineprograms and initiatives

Environmental Policy

＞

28-29

＞

33
58-60

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

＞CSR

Evaluation of thethe management approach;

Nissha’s CSR

management approachii. the results of the evaluation of the management

Management

5

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

：

GRI 307

a. Significant fines and non­monetary sanctions forEnvironmentalnon­compliance with environmental laws and/orCompliance 2016

regulations in terms of:Non­compliance with
307-1

environmental laws andregulations

i. total monetary value of significant fines;
ii. total number of non­monetary sanctions;
iii. cases brought through dispute resolution
mechanisms.

Environmental
Objectives and Status

61-63

of Achievementb. If the organization has not identified any non­compliance with environmental laws and/or
regulations, a brief statement of this fact is sufficient.
Supplier Environmental Assessment *：GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which includes

Approach 2016a description of:
103-1

＞

Explanation of thei. where the impacts occur;

Nissha’s CSR

material topic and its

ii. the organization’s involvement with the impacts. For

Materiality

Boundary

example, whether the organization has caused or

Editorial Policy

6-8
113-115

contributed to the impacts, or is directly linked to theimpacts 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 management
The management
103-2

approach and its
components

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

103-3

＞CSR

Nissha’s CSRManagement＞

Nissha’s CSR
Materiality

Human Rights
Hotline

＞

5
6-8
33

Environmental Policy
and Management

58-60

Structures
Partnership with Our＞BasicSuppliers

Purchasing Policy,

86-89

CSR Supplier Auditsa. An explanation of how the organization evaluates

Nissha’s CSR

management approach

the management approach, including:Management＞CSR

Evaluation of the

5i. the mechanisms for evaluating the effectiveness ofthe management approach;
ii. the results of the evaluation of the management
approach;

GRI Content Index137

CSR Report 2017

iii. any related adjustments to the management
approach.

：Supplier

GRI 308

Environmental

Assessment 2016

New suppliers that were308-1

screened using
environmental criteria

Partnership with Our＞Basica. Percentage of new suppliers that were screened

Suppliers

using environmental criteria.

Purchasing Policy,

86-89

CSR Supplier Auditsa. Number of suppliers assessed for environmental
impacts.
b. Number of suppliers identified as having significant
actual and potential negative environmental impacts.
c. Significant actual and potential negative

Negative environmental
308-2

impacts in the supply
chain and actions taken

environmental impacts identified in the supply chain.

Partnership with Our

d. Percentage of suppliers identified as having

Suppliers

significant actual and potential negative environmental

Purchasing Policy,

impacts with which improvements were agreed upon

CSR Supplier Audits＞Basic86-89

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

Management

b. The Boundary for the material topic, which includes

Approach 2016a description of:
103-1

＞

Explanation of thei. where the impacts occur;

Nissha’s CSR

material topic and its

ii. the organization’s involvement with the impacts. For

Materiality

Boundary

example, whether the organization has caused or

Editorial Policy

6-8
113-115

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

The management
103-2

approach and its
components＞CSR

the topic.

Nissha’s CSR

b. A statement of the purpose of the management

Management

approach.

Nissha’s CSR

c. A description of the following, if the management

Materiality

approach includes that component:

Human Rights

i. Policies

Hotline, Building andii. Commitments

Operation of aiii. Goals and targets

Management System

iv. Responsibilities

Respect for Diversity

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

5

＞

6-8

＞

33

＞Enhancement of

44

Systems andCommunication Tools

programs and initiatives
a. An explanation of how the organization evaluates
the management approach, including:i. the mechanisms for evaluating the effectiveness of103-3

the management approach;

Nissha’s CSR

management approachii. the results of the evaluation of the management

Management＞CSR

Evaluation of the5

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

：

GRI 401

Employment 2016a. Total number and rate of new employee hires during
401-1

New employee hires andthe reporting period, by age group, gender and region.

employee turnoverb. Total number and rate of employee turnover during
the reporting period, by age group, gender and region.

401-2

GRI Content Index

Benefits provided to full­a. Benefits which are standard for full­time employees

time employees that areof the organization but are not provided to temporary

138

CSR Report 2017

not provided to temporary

or part­time employees, by significant locations ofor part­time employees

operation. These include, 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 to work in

401-3

Parental leave

the reporting period after parental leave ended, bygender.
d. Total number of employees that returned to work
after parental leave ended that were still employed 12months after their return to work, by gender.

Support for Diverse＞StatusWork Styles

of Major Long­term

Leave and Time Taken

48-50

Off from Work
*We are considering future
disclosure of overseas
situation and efforts.

e. Return to work and retention rates of employeesthat 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 includes

Approach 2016a description of:
103-1

Explanation of thei. where the impacts occur;

material topic and its

ii. the organization’s involvement with the impacts. For

Boundary

example, whether the organization has caused orcontributed to the impacts, or is directly linked to theimpacts 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 management

The management
103-2

approach and its
components

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 of

103-3

Evaluation of thethe management approach;

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

：

GRI 402402-1＞

Minimum notice periods

a. Minimum number of weeks’ notice typically provided

Human Rights

Labor/Management

regarding operational

to employees and their representatives prior to theRelationship withRelations 2016changes

implementation of significant operational changes that

Labor Union

35

could substantially affect them.
b. For organizations with collective bargaining
agreements, report whether the notice period and

GRI Content Index

139

CSR Report 2017

provisions 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 includes

Approach 2016a description of:
103-1

＞

Explanation of thei. where the impacts occur;

Nissha’s CSR

material topic and its

ii. the organization’s involvement with the impacts. For

Materiality

Boundary

example, whether the organization has caused or

Editorial Policy

6-8
113-115

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

＞CSR

Nissha’s CSRManagement

5＞

Nissha’s CSR
Materiality

6-8＞

Nissha’s CSR
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

Nissha's Stakeholders＞External

Assessment＞

approach.

Human Rights

c. A description of the following, if the management

Hotlineapproach includes that component:

Human Resources

i. Policies

Development

ii. Commitments

and Healthiii. Goals and targets

Occupational Safety

iv. Responsibilities

and Health Policy /v. Resources

Safety and Healthvi. Grievance mechanisms

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

Health Management

programs and initiatives

System / Safety and

＞

10-11

33

＞Safety
52-53

Health Subcommittee＞

The Environment

Environmental Policy

58­60

and Management
Structures
a. An explanation of how the organization evaluates
the management approach, including:i. the mechanisms for evaluating the effectiveness of103-3

the management approach;

Nissha’s CSR

management approachii. the results of the evaluation of the management

Management＞CSR

Evaluation of the5

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

：

GRI 403a. The level at which each formal joint management­

Occupational HealthWorkers representation inand Safety 2016403-1

formal joint management–
worker health and safetycommittees

worker health and safety committee typically operates
within the organization.
b. Percentage of workers whose work, or workplace, iscontrolled by the organization, that are represented byformal joint management­worker health and safetycommittees.

403-2

＞

Safety and Health
Safety and HealthManagement System /52-53

Safety and Health
Subcommittee
Human Rights＞

Relationship with

35

Labor Union＞

Types of injury and rates

a. Types of injury, injury rate (IR), occupational disease

Safety and Healthof injury, occupational

rate (ODR), lost day rate (LDR), absentee rate (AR),Occurrence of Work-diseases, lost days, andand work­related fatalities, for all employees, with arelated Accidents,

absenteeism, and number

breakdown by:

Occurrence of Work-of work­related fatalities

i. region;

related Accidents

54

ii. gender.
b. Types of injury, injury rate (IR), and work­related
fatalities, for all workers (excluding employees) whose
work, or workplace, is controlled by the organization,

GRI Content Index140

CSR Report 2017

with a breakdown by:
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, involved

diseases related to theirin occupational activities who have a high incidence or

occupationhigh 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 by these
agreements.

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

Management

b. The Boundary for the material topic, which includes

Approach 2016a description of:
103-1

＞

Explanation of thei. where the impacts occur;

Nissha’s CSR

material topic and its

ii. the organization’s involvement with the impacts. For

Materiality

Boundary

example, whether the organization has caused or

Editorial Policy

6-8
113-115

contributed to the impacts, or is directly linked to theimpacts 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 management
The management
103-2

approach and its
components

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＞CSR

Nissha’s CSRManagement

5＞

Nissha’s CSR
Materiality

Human Rights

6-8＞

Hotline, Building and33

Operation of aManagement System
Human Resources
Development
Resources＞HumanDevelopment Policy,

37­39

Approach to Human
Resources
Developmenta. An explanation of how the organization evaluates
the management approach, including:i. the mechanisms for evaluating the effectiveness of
103-3

＞CSR

Evaluation of thethe management approach;

Nissha’s CSR

management approachii. the results of the evaluation of the management

Management

5

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

：Training

GRI 404

a. Average hours of training that the organization’sand Education 2016
404-1

Average hours of training
per year per employee

employees have undertaken during the reporting
period, by:

Human Resources
Development＞

Training Programs ini. gender;
ii. employee category.

39

Fiscal Year 2017

a. Type and scope of programs implemented and

404-2

Programs for upgrading

assistance provided to upgrade employee skills.

employee skills andb. Transition assistance programs provided to facilitatetransition assistancecontinued employability and the management of career

programs

endings resulting from retirement or termination of
employment.

404-3

GRI Content Index

Percentage of employees

a. Percentage of total employees by gender and by141

Human Rights

＞Fair

34

CSR Report 2017

receiving regular

employee category who received a regular

Evaluation andperformance and career

performance and career development review during

Treatment

development reviews

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 includes

Approach 2016a description of:
103-1

＞

Explanation of thei. where the impacts occur;

Nissha’s CSR

material topic and its

ii. the organization’s involvement with the impacts. For

Materiality

Boundary

example, whether the organization has caused or

Editorial Policy

6-8
113-115

contributed to the impacts, or is directly linked to theimpacts 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 management
The management
103-2

approach and its
components

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＞CSR

Nissha’s CSRManagement

5＞

Nissha’s CSR
Materiality

Human Rights

6-8＞

Hotline, Building and33

Operation of aManagement System
Human Resources
Development＞

39

Programs to Promote
Diversity

40-45

Respect for Diversity

a. An explanation of how the organization evaluates
the management approach, including:i. the mechanisms for evaluating the effectiveness of103-3

the management approach;

Nissha’s CSR

management approachii. the results of the evaluation of the management

Management＞CSR

Evaluation of the5

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

：

GRI 405 Diversity

a. Percentage of individuals within the organization’sand Equal Opportunity

governance bodies in each of the following diversity

2016

categories:
i. Gender;
ii. Age group: under 30 years old, 30­50 years old,
over 50 years old;
405-1

Diversity of governancebodies and employeesiii. Other indicators of diversity where relevant (such as
minority or vulnerable groups).
b. Percentage of employees per employee category in

Respect for Diversity＞Composition of

40-43"Nissha People"

each of the following diversity categories:
i. Gender;
ii. Age group: under 30 years old, 30­50 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 andwomen to men for each employee category, by

remuneration of women to

significant locations of operation.

menb. The definition used for ‘significant locations of

Human Rights
Management

＞Wage

34

operation’.
Non­discrimination *

：

103-1

＞

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

Nissha’s CSRManagement

material topic and its

b. The Boundary for the material topic, which includes

Materiality

Approach 2016

Boundarya description of:

Editorial Policy

GRI 103

6-8
113-115i. where the impacts occur;

GRI Content Index142

CSR Report 2017

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

The management
103-2

approach and its
components＞

b. A statement of the purpose of the management

Nissha’s CSR CSR

approach.

Managementc. A description of the following, if the management

Nissha’s CSR

approach includes that component:

Materiality

i. Policies

Human Rights

ii. Commitments

Hotline, Basic Policy

iii. Goals and targets

on Labor and Human

iv. Responsibilities

Rights, Building andv. Resources

Operation of avi. Grievance mechanisms

Management System

＞

5
6-8

＞

32-33

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 of103-3

the management approach;

Nissha’s CSR

management approachii. the results of the evaluation of the management

Management＞CSR

Evaluation of the5

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

：Non-

GRI 406

a. Total number of incidents of discrimination during

discrimination 2016

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

and corrective 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 through routine internalmanagement 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 includes

Approach 2016a description of:
103-1

Explanation of thei. where the impacts occur;

material topic and its

ii. the organization’s involvement with the impacts. For

Boundary

example, whether the organization has caused orcontributed to the impacts, or is directly linked to theimpacts 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 management

The management
103-2

approach and its
components

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

GRI Content Index

143

CSR Report 2017

103-3

Evaluation of thea. An explanation of how the organization evaluates

management approach

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

GRI 407：Freedom of

a. Operations and suppliers in which workers’ rights to

Association andexercise freedom of association or collective

Collective Bargaining

bargaining may be violated or at significant risk either

2016
407-1

Operations and suppliersin terms of:in which the right toi. type of operation (such as manufacturing plant) andfreedom of association

supplier;

and collective bargaining

ii. countries or geographic areas with operations andmay be at risk

suppliers considered at risk.
b. Measures taken by the organization in the reporting
period intended to support rights to exercise freedom

Human Rights
Freedom of＞
34

Association andCollective Bargaining
Partnership with Our＞BasicSuppliers

86-89

Purchasing Policy,
CSR Supplier Auditsof 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 includes

Approach 2016a description of:
103-1

＞

Explanation of thei. where the impacts occur;

Nissha’s CSR

material topic and its

ii. the organization’s involvement with the impacts. For

Materiality

Boundary

example, whether the organization has caused or

Editorial Policy

6-8
113-115

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

The management
103-2

approach and its
components＞CSR

the topic.

Nissha’s CSR

b. A statement of the purpose of the management

Management

approach.

Nissha’s CSR

c. A description of the following, if the management

Materiality

approach includes that component:

Human Rights

i. Policies

Hotlineii. Commitments

Human Rights

iii. Goals and targets

Policy on Labor andiv. Responsibilities

Human Rights,

v. Resources

Building and Operation

vi. Grievance mechanismsof a Managementvii. Specific actions, such as processes, projects,

System

5

＞

6-8

＞

33

＞Basic32-33

programs and initiatives
a. An explanation of how the organization evaluates
the management approach, including:i. the mechanisms for evaluating the effectiveness of103-3

the management approach;

Nissha’s CSR

management approachii. the results of the evaluation of the management

Management＞CSR

Evaluation of the5

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

：Child LaborGRI 408
2016

408-1

＞BasicOperations and suppliersa. Operations and suppliers considered to have

Human Rights

at significant risk forsignificant risk for incidents of:

Policy on Labor andincidents of child labori. child labor;

Human Rights

ii. young workers exposed to hazardous work.

Partnership with Our

b. Operations and suppliers considered to have

Suppliers

significant risk for incidents of child labor either in

Purchasing Policy,

terms of:CSR Supplier Audits＞Basic32

86-89

i. type of operation (such as manufacturing plant) andsupplier;
ii. countries or geographic areas with operations and

GRI Content Index

144

CSR Report 2017

suppliers considered at risk.
c. Measures taken by the organization in the reporting
period intended to contribute to the effective abolitionof child labor.
Forced or Compulsory Labor *：GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which includes

Approach 2016a description of:
103-1

＞

Explanation of thei. where the impacts occur;

Nissha’s CSR

material topic and its

ii. the organization’s involvement with the impacts. For

Materiality

Boundary

example, whether the organization has caused or

Editorial Policy

6-8
113-115

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

The management
103-2

approach and its
components＞CSR

b. A statement of the purpose of the management

Nissha’s CSR

approach.

Managementc. A description of the following, if the management

Nissha’s CSR

approach includes that component:

Materiality

i. Policies

Human Rights

ii. Commitments

Hotline, Basic Policy

iii. Goals and targets

on Labor and Human

iv. Responsibilities

Rights, Building andv. Resources

Operation of avi. Grievance mechanisms

Management System

5

＞

6-8

＞

32­33

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 of103-3

the management approach;

Nissha’s CSR

management approachii. the results of the evaluation of the management

Management＞CSR

Evaluation of the5

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

：Forced or

GRI 409

a. Operations and suppliers considered to have

Compulsory Labor

significant risk for incidents of forced or compulsory

2016

labor either in terms of:

409-1

Operations and suppliers

i. type of operation (such as manufacturing plant) andat significant risk forsupplier;

incidents of forced orii. countries or geographic areas with operations andcompulsory labor

suppliers considered at risk.
b. Measures taken by the organization in the reporting
period intended to contribute to the elimination of all

Human Rights＞BasicPolicy on Labor and32

Human Rights
Partnership with Our＞BasicSuppliers

Purchasing Policy,

86-89

CSR Supplier Audits

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 includes

Approach 2016a description of:
103-1

Explanation of thei. where the impacts occur;

material topic and its

ii. the organization’s involvement with the impacts. For

Boundary

example, whether the organization has caused orcontributed to the impacts, or is directly linked to theimpacts through its business relationships.
c. Any specific limitation regarding the topic Boundary.

103-2

The managementa. An explanation of how the organization manages

approach and its

the topic.

components

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

GRI Content Index

145

CSR Report 2017

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 of
103-3

Evaluation of thethe management approach;

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

GRI 410：Security

a. Percentage of security personnel who have received

Practices 2016

Security personnel trained
410-1

in human rights policies orprocedures

formal training in the organization’s human rights
policies or specific procedures and their application tosecurity.
b. Whether training requirements also apply to third­
party organizations providing security personnel.

Rights of Indigenous Peoples
GRI 103：a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which includes

Approach 2016a description of:
103-1

Explanation of thei. where the impacts occur;

material topic and its

ii. the organization’s involvement with the impacts. For

Boundary

example, whether the organization has caused orcontributed to the impacts, or is directly linked to theimpacts 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 management

The management
103-2

approach and its
components

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 of

103-3

Evaluation of thethe management approach;

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

GRI 411：Rights of

411-1

Incidents of violations

a. Total number of identified incidents of violations

Indigenous Peoples

involving rights ofinvolving the rights of indigenous peoples during the2016

indigenous peoples

reporting period.
b. Status of the incidents and actions taken withGRI Content Index146

CSR Report 2017

reference to the following:i. Incident reviewed by the organization;
ii. Remediation plans being implemented;
iii. Remediation plans that have been implemented,
with results reviewed through routine internalmanagement review processes;
iv. Incident no longer subject to action.
Human Rights Assessment：

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

Management

b. The Boundary for the material topic, which includes

Approach 2016a description of:
103-1

Explanation of thei. where the impacts occur;

material topic and its

ii. the organization’s involvement with the impacts. For

Boundary

example, whether the organization has caused orcontributed to the impacts, or is directly linked to theimpacts 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＞

approach.

Nissha’s CSR CSR

c. A description of the following, if the management

Management

5＞

approach includes that component:

Nissha’s CSR

i. Policies

Materiality

ii. Commitments

Human Rights

iii. Goals and targets

Hotline, Building andiv. Responsibilities

Operation of av. Resources

Management System

6-8

＞

33

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 of103-3

the management approach;

Nissha’s CSR

management approachii. the results of the evaluation of the management

Management＞CSR

Evaluation of the5

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

：HumanGRI 412

Operations that have been

Rights Assessment

subject to human rights

2016

412-1

reviews or impact
assessments

a. Total number and percentage of operations thathave been subject to human rights reviews or humanrights impact assessments, by country.

Human Rights＞

Building and Operationof a Management

33

Systema. 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 rights thatare relevant to operations.
b. Percentage of employees trained during thereporting period in human rights policies or procedures
concerning aspects of human rights that are relevant
to operations.

Significant investment
agreements and contracts
412-3

that include human rights
clauses or that underwent
human rights screeninga. Total number and percentage of significant
investment agreements and contracts that include
human rights clauses or that underwent human rights
screening.
b. The definition used for ‘significant investment
agreements’.

Local Communities：

GRI 103

GRI Content Index

103-1

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

147

CSR Report 2017

Management

material topic and its

b. The Boundary for the material topic, which includes

Approach 2016

Boundarya description of:i. where the impacts occur;
ii. the organization’s involvement with the impacts. For
example, whether the organization has caused orcontributed to the impacts, or is directly linked to theimpacts 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 management

The management
103-2

approach and its
components

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 of

103-3

Evaluation of thethe 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 local

Communities 2016

community engagement, impact assessments,
and/or development programs, including the use of:i. social impact assessments, including gender impact
assessments, based on participatory processes;
ii. environmental impact assessments and ongoing
monitoring;
iii. public disclosure of results of environmental and

413-1

Operations with local

social impact assessments;

community engagement,

iv. local community development programs based on

impact assessments, andlocal communities’ needs;

development programs

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 todeal with impacts;
viii. formal local community grievance processes.

Operations with significant
413-2

actual and potential
negative impacts on local
communities

a. Operations with significant actual and potential
negative impacts on local communities, including:i. the location of the operations;
ii. the significant actual and potential negative impacts
of operations.

Supplier Social Assessment *

：

103-1

＞

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

Nissha’s CSRManagement

material topic and its

b. The Boundary for the material topic, which includes

Materiality

Approach 2016

Boundarya description of:

Editorial Policy

GRI 103

6-8
113-115i. where the impacts occur;
ii. the organization’s involvement with the impacts. For

GRI Content Index148

CSR Report 2017

example, whether the organization has caused orcontributed to the impacts, or is directly linked to theimpacts through its business relationships.
c. Any specific limitation regarding the topic Boundary.
a. An explanation of how the organization manages
the topic.

The management
103-2

approach and its
components＞CSR

b. A statement of the purpose of the management

Nissha’s CSR

approach.

Management＞c. A description of the following, if the management

Nissha’s CSR

approach includes that component:

Materiality

i. Policies

Human Rights

ii. Commitments

Hotlineiii. Goals and targets

Partnership with Our

iv. Responsibilities

Suppliers

v. Resources

Purchasing Policy,

vi. Grievance mechanisms

CSR Supplier Audits＞＞Basic

5
6-8
33

86-89

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 of
103-3

＞

Evaluation of thethe management approach;

Nissha’s CSR CSR

management approachii. the results of the evaluation of the management

Management

5

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

：Supplier

GRI 414

Social Assessment
2016

New suppliers that were414-1

screened using social
criteria

Partnership with Our＞Basica. Percentage of new suppliers that were screened

Suppliers

using social criteria.

Purchasing Policy,

86-89

CSR 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
impacts identified in the supply chain.

414-2

Negative social impacts in

d. Percentage of suppliers identified as having

the supply chain andsignificant actual and potential negative social impacts

actions takenwith which improvements were agreed upon as aresult of assessment.

Partnership with Our＞BasicSuppliers

Purchasing Policy,

86-89

CSR Supplier Auditse. Percentage of suppliers identified as having
significant actual and potential negative social impacts
with which relationships were terminated as a result ofassessment, and why.
Public Policy：

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

Management

b. The Boundary for the material topic, which includes

Approach 2016a description of:
103-1

Explanation of thei. where the impacts occur;

material topic and its

ii. the organization’s involvement with the impacts. For

Boundary

example, whether the organization has caused orcontributed to the impacts, or is directly linked to theimpacts through its business relationships.
c. Any specific limitation regarding the topic Boundary.

103-2

The managementa. An explanation of how the organization manages

approach and its

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

GRI Content Index149

CSR Report 2017

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 of
103-3

Evaluation of thethe 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 in­kind political

Policy 2016

contributions made directly and indirectly by the
415-1

Political contributionsorganization by country and recipient/beneficiary.
b. If applicable, how the monetary value of in­kind
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 includes

Approach 2016a description of:
Explanation of the
103-1

material topic and its
Boundaryi. where the impacts occur;
ii. the organization’s involvement with the impacts. For
example, whether theorganization has caused or contributed to the impacts,＞

Nissha’s CSR
Materiality

6-8
113-115

Editorial Policy

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

＞CSR

Nissha’s CSRManagement

5＞

Nissha’s CSR
Materiality

the topic.

Nissha’s CSR

b. A statement of the purpose of the management

Nissha's Stakeholders

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

approach and its
components

6-8

a. An explanation of how the organization manages＞＞External

Assessment＞

approach includes that component:

Human Rights

i. Policies

Hotlineii. Commitments

Corporate Ethics andiii. Goals and targets

Compliance

iv. Responsibilities

Guideline of thev. Resources

Corporate Ethics andvi. Grievance mechanisms

Compliance,vii. Specific actions, such as processes, projects,

Promotion Structure

programs and initiatives

and Initiatives

10-11

33

＞

28-29

＞

Consumer Issues

Quality Slogan, Quality

96­97

and Safety of Productsa. An explanation of how the organization evaluates
the management approach, including:i. the mechanisms for evaluating the effectiveness of103-3

the management approach;

Nissha’s CSR

management approachii. the results of the evaluation of the management

Management＞CSR

Evaluation of the5

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

GRI Content Index

150

CSR Report 2017

：Customer

GRI 416416-1

Assessment of the healtha. Percentage of significant product and service

Health and Safety

and safety impacts of

categories for which health and safety impacts are2016

product and service

assessed for improvement.

categories
a. Total number of incidents of non­compliance withregulations and/or voluntary codes concerning thehealth and safety impacts of products and services
Incidents of non­compliance concerning416-2

the health and safety
impacts of products andserviceswithin the reporting period, by:i. incidents of non­compliance with regulations
resulting in a fine or penalty;
ii. incidents of non­compliance with regulations
resulting in a warning;＞

Consumer Issues

Quality and Safety of97

Products

iii. incidents of non­compliance with voluntary codes.
b. If the organization has not identified any non­compliance with regulations and/or voluntary codes, abrief 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 includes

Approach 2016a description of:
103-1

Explanation of thei. where the impacts occur;

material topic and its

ii. the organization’s involvement with the impacts. For

Boundary

example, whether the organization has caused orcontributed to the impacts, or is directly linked to theimpacts 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 management

The management
103-2

approach and its
components

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 of

103-3

Evaluation of thethe management approach;

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

：Marketing

GRI 417and Labeling 2016

417-1

Requirements for producta. Whether each of the following types of information isand service information

required by the organization’s procedures for productand labelingand service information and labeling:i. The sourcing of components of the product orservice;
ii. Content, particularly with regard to substances thatmight produce an environmental or social impact;
iii. Safe use of the product or service;
iv. Disposal of the product and environmental or social
impacts;
v. Other (explain).
b. Percentage of significant product or service

GRI Content Index151

CSR Report 2017

categories covered by and assessed for compliancewith such procedures.
a. Total number of incidents of non­compliance withregulations and/or voluntary codes concerning productand service information and labeling, by:
Incidents of non­
417-2

compliance concerning
product and service
information and labelingi. incidents of non­compliance with regulations
resulting in a fine or penalty;
ii. incidents of non­compliance with regulations
resulting in a warning;
iii. incidents of non­compliance with voluntary codes.
b. If the organization has not identified any non­compliance with regulations and/or voluntary codes, abrief statement of this fact is sufficient.
a. Total number of incidents of non­compliance withregulations and/or voluntary codes concerningmarketing communications, including advertising,promotion, and sponsorship, by:

417-3

Incidents of non­i. incidents of non­compliance with regulations

compliance concerning

resulting in a fine or penalty;

marketingii. incidents of non­compliance with regulations

communications

resulting in a warning;
iii. incidents of non­compliance with voluntary codes.
b. If the organization has not identified any non­compliance with regulations and/or voluntary codes, abrief 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 includes

Approach 2016a description of:
103-1

＞

Explanation of thei. where the impacts occur;

Nissha’s CSR

material topic and its

ii. the organization’s involvement with the impacts. For

Materiality

Boundary

example, whether the organization has caused or

Editorial Policy

6-8
113-115

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

＞CSR

5

＞

6-8

Nissha’s CSRManagement

The management
103-2

approach and its
components

a. An explanation of how the organization manages

Nissha’s CSR

the topic.

Materiality

b. A statement of the purpose of the management

Human Rights

approach.

Hotlinec. A description of the following, if the management

Initiatives Related toapproach includes that component:

Information Security

i. Policies

Nissha’s CSR

ii. Commitments

Nissha's Stakeholdersiii. Goals and targets
iv. Responsibilities

＞

33
80-81

＞

＞External

Assessment＞

v. Resources

The Environment

vi. Grievance mechanisms

Waste Managementvii. Specific actions, such as processes, projects,

Risk Management

programs and initiatives

Related to Waste and

10-11

＞
71

Waste Converted in
Valuable Resources
a. An explanation of how the organization evaluates
the management approach, including:i. the mechanisms for evaluating the effectiveness of103-3

the management approach;

Nissha’s CSR

management approachii. the results of the evaluation of the management

Management＞CSR

Evaluation of the5

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

GRI Content Index152

CSR Report 2017

：Customer

GRI 418

418-1

Privacy 2016

Substantiated complaints

a. Total number of substantiated complaints received

No complaint hasconcerning breaches ofconcerning breaches of customer privacy, categorized

been reported.

customer privacy andby:losses of customer datai. complaints received from outside parties andsubstantiated by the organization;
ii. complaints from regulatory bodies.
b. Total number of identified leaks, thefts, or losses ofcustomer data.
c. If the organization has not identified any
substantiated complaints, a brief statement of this fact
is sufficient.

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

Management

b. The Boundary for the material topic, which includes

Approach 2016a description of:
103-1

＞

Explanation of thei. where the impacts occur;

Nissha’s CSR

material topic and its

ii. the organization’s involvement with the impacts. For

Materiality

Boundary

example, whether the organization has caused or

Editorial Policy

6-8
113-115

contributed to the impacts, or is directly linked to theimpacts 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 management
The management
103-2

approach and its
components

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＞CSR

Nissha’s CSRManagement＞

Nissha’s CSR
Materiality

Human Rights
Hotline

5

6-8

＞

33

Corporate Ethics andCompliance＞

Guideline of the
Corporate Ethics andCompliance,

28-29

Promotion Structure
and Initiatives

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

＞CSR

Evaluation of thethe management approach;

Nissha’s CSR

management approachii. the results of the evaluation of the management

Management

5

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

：

GRI 419a. Significant fines and non­monetary sanctions forSocioeconomic

non­compliance with laws and/or regulations in the

Compliance 2016

social and economic area in terms of:i. total monetary value of significant fines;
Non­compliance with laws
419-1

and regulations in thesocial and economic area

ii. total number of non­monetary sanctions;
iii. cases brought through dispute resolution
mechanisms.
b. If the organization has not identified any non­＞Consumer Issues

Quality and Safety of97

Products

compliance with laws and/or regulations, a brief
statement of this fact is sufficient.
c. The context against which significant fines and non­monetary sanctions were incurred.
Material topics specific in Nissha
Grievance Mechanisms *：a. An explanation of why the topic is material.

Nissha’s CSR

material topic and its

b. The Boundary for the material topic, which includes

Materiality

Approach 2016

Boundarya description of:

Editorial Policy

GRI Content Index

103-1

＞

Explanation of theManagement

GRI 103153

6-8
113-115CSR Report 2017

i. where the impacts occur;
ii. the organization’s involvement with the impacts. For
example, whether the organization has caused orcontributed to the impacts, or is directly linked to theimpacts 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 management
The management
103-2

approach and its
components

approach includes that component:i. Policies
ii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources
vi. Grievance mechanisms＞CSR

Nissha’s CSRManagement＞

Nissha’s CSR
Materiality

Human Rights＞

Hotline, Relationship

5
6-8

33-35

with Labor Union
Corporate Ethics andCompliance28­29vii. 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 of
103-3

＞CSR

Evaluation of thethe management approach;

Nissha’s CSR

management approachii. the results of the evaluation of the management

Management

5

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

Index

Hotline＞33

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

Management

b. The Boundary for the material topic, which includes

Approach 2016a description of:
103-1

＞

Explanation of thei. where the impacts occur;

Nissha’s CSR

material topic and its

ii. the organization’s involvement with the impacts. For

Materiality

Boundary

example, whether the organization has caused or

Editorial Policy

6-8
113-115

contributed to the impacts, or is directly linked to theimpacts 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＞CSR

c. A description of the following, if the management

Nissha’s CSR

approach includes that component:

Management

i. Policies

Nissha’s CSR

ii. Commitments

Materialityiii. Goals and targets

Human Rights

iv. Responsibilities

Hotline

＞
＞

5
6-8
33

v. Resources
vi. Grievance mechanismsvii. Specific actions, such as processes, projects,
programs and initiatives
103-3

a. An explanation of how the organization evaluates

Nissha’s CSR

management approach

the management approach, including:Management＞CSR

Evaluation of the

5i. the mechanisms for evaluating the effectiveness ofthe management approach;
ii. the results of the evaluation of the management
approach;

GRI Content Index154

CSR Report 2017

iii. any related adjustments to the management
approach.
Index
Business Continuity Plan *：GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which includes

Prevention of Further

Approach 2016a description of:

Global Warming

Explanation of thei. where the impacts occur;

Initiative in Scope 3

material topic and its

ii. the organization’s involvement with the impacts. For

Management

Boundary

example, whether the organization has caused or

Nissha’s CSR

contributed to the impacts, or is directly linked to theMateriality

impacts through its business relationships.

Editorial Policy

103-1

＞

69

＞

6-8
113-115c. 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＞CSR

c. A description of the following, if the management

Nissha’s CSR

approach includes that component:

Management

i. Policies

Nissha’s CSR

ii. Commitments

Materialityiii. Goals and targets

Human Rights

iv. Responsibilities

Hotline

5

＞

6-8

＞

33

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 of103-3

the management approach;

Nissha’s CSR

management approachii. the results of the evaluation of the management

Management＞CSR

Evaluation of the5

approach;
iii. any related adjustments to the management
approach.
Corporate Governance＞Risk Management

Index

GRI Content Index

155

25-26

CSR Report 2017