CSR 2016

CEO Message

2

Nissha’ s CSR

Approach to CSR ／ CSR Management ／ Nissha’ s CSR 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

13
15

16
24
26
27
28

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

Company Outline

Company Outline
What’ s Nissha?

Editorial Policy

GRI Content Index
Sustainability

4

32
33
36
41
47
51
52
55
59
61
65
67
71
74
75
77
79
80
84
85
86
87
91
92
96
97
99

105
108

1

CSR Report 2016

CEO Message
Status of Nissha Business
Since our founding in Kyoto in 1929, we at Nissha have embraced the spiritof engaging in “monozukuri,” or manufacturing, no others can compete with.
Armed with our printing technology, we pushed beyond the boundaries of
traditional printing on paper to decorate the surface of plastic products andventure into the field of touch panels. The 1990s into the 2000s, inparticular, saw Nissha achieve growth in global markets.
In recent years, however, the Devices business, which has developed into
our mainstay, requires an optimized portfolio of target markets, as it relies
heavily on the consumer electronics industry prone to sharp fluctuations indemand. The Industrial Materials business and the Information andCommunication business have not yet achieved a full recovery of
performance and need to improve profitability through an accelerated
reorganization of business structure. Recognizing these challenges, in April
2015 we started operation of the Fifth Medium­term Business Plan spanninga three­year period. “We will acquire and merge new core technologies into printing technologies andcompletely reorganize our business portfolio in global growth markets”—in line with this medium­term vision, areorganization strategy went underway for rebuilding well­balanced business and product portfolios. In fiscal
year 2016, we made progress through overseas M&A activity in the metallized paper business, the raising ofgrowth funds in the capital market, and improved profitability in the Information and Communication business.

Nissha’s CSR
The Nissha corporate mission 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.”
Any company that seeks to establish a presence must achieve financial growth for itself and at the same timecreate value for society. We at Nissha believe that realizing the “Co­existence” articulated in our corporate
mission is the very corporate social responsibility (CSR) we are required to fulfill.
Our brand statement “Empowering Your Vision” expresses the relationship of co­existence between Nissha—
we who aim to realize our corporate mission—and our stakeholders. That is, both we and our stakeholders
have a vision, and by mutually affecting each other toward realizing it, together we hope to create value for the
future.

Promoting CSR from a Global Perspective
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 anddefined the target areas of our activities as basic CSR and strategic CSR.
In basic CSR, we work to conform to standards based on the global code of conduct provided by the Electronic
Industry Citizenship Coalition (EICC). The EICC requires the building and operation of management systems in
the areas of labor, safety and health, the environment, and ethics. Through these efforts, we aim to strengthen
our foundation as a corporation with respect to environment, social, and governance (ESG), and be a company
trusted by global society and chosen by our customers.
In 2014, some of our factories in Japan submitted to CSR auditing by our customers, who are major players in
the electronics industry. Based on standards more stringent than those of the EICC, the auditors made manysuggestions. Through company­wide efforts, however, we completed corrective action. Similar auditing
conducted at another factory in 2016 uncovered far fewer instances of noncompliance, testifying to a steady
reduction in CSR risks.
In strategic CSR, we work to identify material issues related to CSR toward enhancing our corporate value overthe longer term. Material issues include eradication of discrimination and forced labor, respect for diversity,
CEO Message

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CSR Report 2016

promotion of safety and health, protection of the environment, and anti­corruption. While we address thesechallenges faced by global society in response to customer demand, our efforts in strategic CSR endeavor to go
further and recognize global CSR challenges. We believe this initiative will help us grow into a company that our
stakeholders will feel safe in choosing, and that it will help us create even more business opportunities.

Strengthening Corporate Governance
Recognizing corporate governance as a top management priority, we strive to ensure transparency and fairness
in our business activities, thereby promoting prompt and resolute decision­making and enhancing our corporate
value over the long term.
In 2008, we adopted the corporate officer system to segregate the strategy formulation and management
oversight functions of the Board of Directors from the business execution function of corporate officers. And
since 2007, we make active efforts to appoint independent directors to ensure transparency and fairness in ourbusiness activities, and formulate strategies and practice management oversight drawing on the insight of the
independent directors. Following the election of one additional outside director in June 2016, independent
directors account for 50% of our Board of Directors.
In October 2015, we formulated and disclosed a Corporate Governance Policy, presenting our approach to
improving management transparency and fortifying corporate governance toward achieving sustainable growthand enhancing our corporate value. In a follow­up to this move, we established a Nomination and Remuneration
Committee for drawing on the insight of independent directors to ensure objectivity and fairness in thenomination and remuneration of directors. Further, we launched efforts to evaluate the effectiveness of our
Board of Directors once a year with the aim of improving its functions.

In Closing
From the 1990s onward, since Nissha operations expanded into the global arena, we have continued in our
pursuit of customer satisfaction while aspiring to be a truly global company. Moving forward, we recognize thatfacing up to the challenges of global society is vital to our efforts in sustainable management.
The United Nations adopted a set of Sustainable Development Goals (SDGs) in September 2015, calling for all
sectors around the world to contribute to the achievement of sustainability. In addition to this, we at Nissha
believe it is important to listen to our stakeholders at all times and reflect your voice in our business activities.
We hope you will give CSR Report 2016 a read and offer us your candid views and advice.
We look forward to your continued guidance and encouragement in the future.
June 2016
Junya Suzuki
President and CEO
Chairman of the Board

CEO Message

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CSR Report 2016

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. The CSR
Committee convenes once a year in the presence of the president, and members centering on the secretariat
conduct management reviews.

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

Nissha’s CSR

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CSR Report 2016

CSR Management

The CSR Committee convenes once a year in the presence of the president. Members centering on thesecretariat conduct management reviews, reporting important matters and offering suggestions to the Board of
Directors. In fiscal year 2016, having approved the initiatives of each subcommittee, the CSR Committee
identified material issues, deliberated on matters such as expansion of women’s participation in business andbusiness continuity plan (BCP) in MBR throughout the year, and managed the progress of activities. The resultsof the year­end MBR were reported 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. Following a CSR audit conducted by ourcustomers in fiscal year 2015, 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 will build and operate management systems basedon the EICC Code of Conduct throughout the Nissha Group including overseas bases and at major suppliers.

CSR Committee Organization Chart (Fiscal Year 2017)

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 Planning 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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CSR Report 2016

Nissha’s CSR Materiality

In order to realize co­existence with society and enhance our corporate value over the medium to long term, we
strive to identify and prioritize material issues related to CSR. Individual topics are measured for impact on our
stakeholders and impact on Nissha, those with high impact on both are identified as material issues, andinitiatives are led by the relevant subcommittee of the CSR Committee.

Identification of Material Issues
We use as reference the G4 Sustainability Reporting Guidelines, developed by the Global Reporting Initiative(GRI), which requires identification of material issues with impact on the company and its stakeholders, andreporting on the process of identification and the status of initiatives.
At Nissha, the CSR Committee led efforts to identify material issues in fiscal year 2016, and each subcommittee
set targets and started working toward them since fiscal year 2017. The process of identifying material issues isgiven in the table below.

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

Step 3
Validate

Topics with an impact on Nissha and on our supply chain are extracted,
consulting the 46 Aspects of the GRI G4 guidelines.
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 three independent
directors.
Materiality is determined with approval from the CSR Committee. For priority

Step 4

initiatives, key performance indicators (KPI) are set for each subcommittee.

Determine materiality

Material issues will be reviewed in management reviews in FY2017, and theresults will be reflected in initiatives in the following year onward.

Assessment of 46 Aspects

Nissha’s CSR

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CSR Report 2016

Boundaries of Material Aspects
Boundaries
Categories

Aspects

Inside ofNissha Group

Environmental

Energy●Emissions●●Effluents and Waste●●

Compliance (Environmental)●●

Transport●

Supplier Environmental●●

Employment●●

Occupational Health and Safety●●

Training and Education●●

Diversity and Equal Opportunity

●

●

●

●

Non­discrimination●●

Forced or Compulsory Labor

●

●

●

●

Anti­corruption●●

Compliance (Society)

●

●

●

●

●

●

●

●

Assessment

Labor Practices andSuppliers

Decent Work

Supplier Assessment for Labor
Practices

SocialHuman Rights

Supplier Human Rights
Assessment

Society

Supplier Assessment for Impacts
on Society
Customer Privacy
Product Responsibility

Compliance (ProductResponsibility)

Material Issues and Subcommittee Responsible
Material Issues

Subcommittee

Compliance *1

Corporate Ethics and Compliance SubcommitteeNon­discrimination
Forced or Compulsory Labor
Diversity and Equal Opportunity

Labor and Human Rights Subcommittee

Training and Education
Employment
Occupational Health and Safety

Environmental, Safety and Health Subcommittee

Effluents and Waste
EnergyEnvironmental, Safety and Health Subcommittee

Emissions
Transport

Nissha’s CSR

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CSR Report 2016

Customer Privacy

Information Security Subcommittee

Anti­corruption

CSR Committee Secretariat (cross­sectoral

Supplier Assessment *2

approach)*1 Compliance (Environmental), Compliance (Society) and Compliance (Product Responsibility) are summarized inCompliance.
*2 Supplier Environmental Assessment, Supplier Assessment for Labor Practices, Supplier Human Rights Assessment andSupplier Assessment for Impacts on Society are summarized in Supplier Assessment.

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 about CSR reviews
Information provided about conflict minerals
Products and services provided by website
Supplier responsibility (SR) audits by customers

Shareholders
We have a total of 45,029,493 outstanding shares and 8,048 shareholders. In a breakdown ofshareholders by type, 30.7% are Japanese financial institutions and securities firms, 23.7% otherJapanese corporations, 15.8% Japanese individuals and others, 25.1% foreign institutions andindividuals, and 4.7% treasury stock (as of the end of March 2016).
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

Nissha’s CSR

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CSR Report 2016

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
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 4,034 employees. In a breakdown by region, 64.6% work in Japan, 15.0% in
Asia, 12.0% in North America, 5.0% in Europe, and 3.4% in South America (as of the end of March
2016).
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
Safety and health committees
Workplace improvement committee
Education and training
Personnel evaluation and interviews
Hotline (for reporting to within and outside the company)
Harassment and mental health counseling
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 14 bases in Japan and 27 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
Factory and facility tours
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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CSR Report 2016

External Assessment

Major examples of external assessment in fiscal year 2016 are given below (Nissha Group in Japan).

Date

Certification/award

Company/baseDetails
Awards are presented by Kyoto Prefecture annually
since 1957 to “promote the significance of invention
and ingenuity, encourage developments in science andtechnology, and increase motivation for invention and

Apr. 2015

59th Kyoto Prefectural Award for DistinguishedServices in Invention

Nissha Printing Co., Ltd.

ingenuity.”
Nissha Printing Co., Ltd. received the award for theinvention of transfer foil used in simultaneous plastic
injection molding and decoration that eliminates theneed to remove soil and metal from the decorated
surface and repair the mold.
To reinforce our trade management system, Nissha

June 2015

AEO Importer approval

Nissha Printing Co., Ltd.

obtained approval from Osaka Customs as an AEO
Importer, under the Authorized Economic Operator
program.
The convention is held annually to raise awareness of

FY2016 Hyogo Prefectural Convention for Safety ofJune 2015

safety concerning hazardous materials, promote

Hazardous Materials

Nitec Precision andvoluntary establishment of safety systems, and prevent

Hyogo Association for Safety of Hazardous Materials

Technologies, Inc. (NPT)

accidents involving hazardous materials. NPT Himeji

Representative Director’s Award (Excellent Place ofHimeji Factory

Factory won recognition for safety management at

Business)facilities that handle hazardous materials and activities
to prevent accidents.
Aerial Switch, a wireless device developed by Nissha
Printing Co., Ltd. that can be positioned freely withouta power line, won a Good Design Award 2015, hosted

Oct. 2015

Good Design Award

Nissha Printing Co., Ltd.

by the Japan Institute for Design Promotion.
Aerial Switch functions on minimum electricity such asthat generated by solar panels. It won recognition foreliminating the need for residential wiring and thus
enabling placement on glass walls.
Awards are presented by the Japan Institute ofInvention and Innovation annually since 1921 to “honor
engineers and researchers responsible for excellent
inventions, ideas, or designs.”

Oct. 2015

FY2016 Kinki Regional Award for Invention

Nissha Printing Co., Ltd.

Nissha Printing Co., Ltd. received the award for theinvention of transfer foil used in simultaneous plastic
injection molding and decoration that eliminates theneed to remove soil and metal from the decorated
surface and repair the mold.
Medals are presented by the Japanese Red Cross
Society to individuals and organizations that are long­

Nov. 2015

Japanese Red Cross Society Gold Medal for Merit

Nissha Printing Co., Ltd.

term contributors to blood donation activities. Nissha
Printing Co., Ltd. was recognized for organizing in­house blood drives once a year as well as providing
donations on a continuous basis.
The convention is held annually to promote traffic

Nov. 2015

FY2016 Ishikawa Prefectural Residents’ Traffic Safety

Nitec Precision andConvention

Technologies, Inc. (NPT)

Excellent Traffic Safety Place of Business

Kaga Factory

safety, enhance community comfort, and eradicate
traffic accidents. NPT Kaga Factory was recognized forvolunteering services as crossing guards at Kaga City
Miki Elementary School during the spring and autumn
national traffic safety campaigns.
Kurumin certification is granted to companies that meet

Kurumin certification as next­generation supportive

Nissha’s CSR

Nissha Business Service Co.,10

certain requirements and that formulate and implement

CSR Report 2016

Jan. 2016

companyLtd. (NBS)

an action plan for supporting employees engaged inchild­rearing. NBS was recognized for efforts to
support balance between work and child­rearing.

57th National Catalog Contest: 7 awards including• Ministry of Economy, Trade and Industry—Commerceand Information Policy Bureau Director­General’sAward (Gold Prize, Category 1)

A total of 10 catalogs and calendars printed by Nissha• Japan Chamber of Commerce and Industry
Jan. 2016

Chairman’s Award (Silver Prize, Category 1)

Printing Co., Ltd. won awards in the 57th National
Nissha Printing Co., Ltd.

Catalog Contest and the 67th National Calendar• Fuji Sankei Business­i Award (Silver Prize, Category

Contest, co­hosted by the Japan Federation of Printing

2)

Industries and Japan Printing News Co., Ltd.

67th National Calendar Contest: 3 awards including• Japan Federation of Printing Industries Award (GoldPrize, Category 2)

A list of ISO certificates obtained is given below (Nissha Group in Japan as of the end of March 2015).

ISO Standards
Subject Areas
ISO9001

ISO/TS16949

ISO14001OHSAS18001○ *2

ISO27001

Nissha Printing Co., Ltd. Global Headquarters○ *1

Nissha Printing Co., Ltd. Tokyo Division Headquarters

○ *1

○

Nissha Printing Co., Ltd. Kameoka Logistics Center○○

Nitec Industries, Inc. Koka Factory

○

○

○

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

○ *1

○

○ *1

○

○ *1

○

Nissha F8, Inc.

○ *3

○

Nitec Printing Co., Ltd. Headquarters / Kyoto Factory○○

Nitec Printing Co., Ltd. Yachiyo Factory

○

○

○

Nissha Business Service Co., Ltd.

○

○

○

Eimo Technologies, Inc.

○

Nissha Printing Communications, Inc. Tokyo Division
Headquarters
Nissha Printing Communications, Inc. Osaka Division
Headquarters○○○

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

○

AR Metallizing N.V. – Genk, Belgium○

AR Metallizing Srl. ­ Casalgrasso, Italy○

Málaga Produtos Metalizados Ltda.­ Osasco, Brazil○○

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

○○Guangzhou Nissha High Precision Plastics Co., Ltd.

○○

Nissha’s CSR

11○

CSR Report 2016

Southern Nissha Sdn. Bhd.

○

○

○

*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.

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

Nissha’s CSR

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CSR Report 2016

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 Brand.

Corporate Philosophy and Brand

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CSR Report 2016

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 2016

Organizational GovernanceWe established a Corporate Governance Policy toward fulﬁlling our social responsibility,
achieving sustainable growth, and enhancing our corporate value.

We make continuous eﬀorts to improve management transparency and fortify corporate governance.

Organizational Governance

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CSR Report 2016

Corporate Governance
Strengthening corporate governance is a key management priority.
We are working to build and improve a structure for enhancing transparency and ensuring fairness
in our business activities, and promoting the reinforcement of internal controls.

Basic Approach to Corporate Governance
Since the company’s founding, Nissha continues to execute strategies that accurately address changes in thebusiness environment under the leadership of a strong management. We believe that fortifying corporate
governance under this strong leadership promotes swift, bold decision­making and ensures transparency andfairness in our business activities. We recognize corporate governance as a top management priority and strive
to maintain and improve our structure toward realizing sustainable growth and enhancing our corporate value
over the medium to long term.
In an effort to clarify the Nissha Group’s basic approach to and policy for implementing corporate governance, in
October 2015 we established a Corporate Governance Policy.
Corporate Governance Policy (October 30, 2015)[156.5KB]

Corporate Governance

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Overview of Corporate Governance
We have established a corporate governance structure as shown in the figure below.

Corporate Governance Structure

The Company's Board of Directors makes major business judgments and oversees the execution of the dutiesof the Directors, and as a company with an Audit and Supervisory Board, will strive to maintain and improve theoversight and checking functions by Audit and Supervisory Board Members and an Audit and Supervisory
Board which are independent from the Board of Directors.
The Company adopts 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 ofthe formulation of strategies and business oversight, and the Corporate Officers will be in charge of theexecution of business. In addition, the Company establishes a Nomination and Remuneration Committee as anadvisory panel for the Board of Directors.
The President and CEO organize three meetings, namely the Management Meetings, Monthly Business Review(MBR), and Investment Committee, in order to implement appropriate and effective business execution. The
Management Meetings include Inside Directors as core members and deliberate on matters relating to thedirection of important managerial issues within the scope of the President’s authority. The MBR is a meeting todetermine the progress of business strategies based on KPI (Key Performance Indicators) and what actions totake over the short term. The purpose of the MBR is to oversee business execution by the Corporate Officers
and to quickly respond to changes in the business environment. The Investment Committee reviews particularly
important investment matters prior to submitting to the Board of Directors for approval.
The Board of Directors has formulated the Policy for Internal Control and supervises establishment andoperation of the internal control system based on this Policy to enhance management oversight functions andensure effective business execution.
We have in place a CSR Committee and a Disclosure Control Committee, both chaired by the President, asorganizations for demonstrating leadership in dealing with risks to legal and appropriate business execution.
Internal Audit, under the direct control of the President, conducts audits to ensure that activities of the Nissha
Group including these committees are carried out appropriately and efficiently.

Directors and the Board of Directors
Our Board of Directors, currently consisting of eight members, makes important management decisions andreceives reporting on and oversees the execution of business activities.
The Board of Directors convenes for regular meetings once a month and for extraordinary meetings as needed.
The meetings are chaired by the President and kept dynamic through brisk, substantive discussions.
To ensure that the Board of Directors fulfills its role of making important management decisions and overseeing

Corporate Governance17

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business execution by directors and corporate officers, we nominate directors taking into consideration diversity
and balance between the knowledge, experience, and skills of the individual. Of our eight directors, four are
independent directors with one being a woman (independent director account for 50% of the board, and women
12.5%). These independent directors draw on their insight into the fields of corporate management, corporate
governance, management strategy, business strategy, IT, and macroeconomics to provide accurate advice andopinions, contributing to the enhancement of management transparency as well as of the board’s oversightfunctions. We consider that the four Independent Directors satisfy Standards for Independence Standards for
Independent Directors and Audit and Supervisory Board Members prescribed by us and standards forindependence of outside officers stipulated in the “Guidelines concerning Listed Company Compliance, etc.” by
the Tokyo Stock Exchange, hence they have sufficient independence and there is no risk of conflict of interest
with general shareholders. Therefore, we have designated them as Independent Officers.
To respond flexibly to changes in the management environment and to promote the clarification of management
responsibility for each fiscal year, the term of office of a Director has been set at one year.
In April 2016, we launched efforts to evaluate the effectiveness of our Board of Directors. A questionnaire
covering board meetings held in FY2016 was distributed to all directors and audit and supervisory board
members. The Board of Directors then analyzed and assessed the results, identified issues, and set out toaddress these issues toward further improving the effectiveness of the board of directors.
We have established a policy to check for transactions between the company and interested parties such as
directors, audit and supervisory board members, corporate officers, and their relatives. In the event any material
fact exists, the Board of Directors duly deliberate on the justifiability of the transaction and resolve the matter.
The company is required to obtain approval from the Board of Directors when engaging in transactions with adirector that present a conflict of interest as prescribed by laws and regulations.

Nomination and Remuneration Committee
We have in place a Nomination and Remuneration Committee as an advisory panel for the Board of Directors toensure objectivity and fairness in the nomination of directors and audit and supervisory board members, and in
determining remuneration of directors. The chairman and at least half of the members are selected fromindependent directors. With consultation from the Board of Directors, the committee deliberates on and provides
a response regarding 1) criteria for nominating directors and audit and supervisory board members as well as
policies for determining remuneration of directors, and 2) proposals for director and audit and supervisory board
member candidates as well as remuneration of directors.

Audit and Supervisory Board Members and the Audit and Supervisory Board
Our Audit and Supervisory Board, currently consisting of four members, determines the duties of Audit andSupervisory Board Members, the audit structure, and the audit standards that describe the evaluation basis foraudits and the action guidelines. In accordance with these, the Board develops auditing policies and Nissha
Group's Corporate Governance auditing plans. Complying with these, each member attends the meetings of theBoard 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 Board holds regular meetings with
the Accounting Auditor, Internal Audit, and corporate division including the Corporate Finance and Corporate
Legal Affairs to closely cooperate with each other and increase the audits’ efficiency. In addition, the Board
regularly holds the Group Meeting of Audit and Supervisory Board Members, consisting of full­time Audit andSupervisory Board Members of the Company and Audit and Supervisory Board Members of its affiliatedcompanies, in order to strengthen and enhance audits throughout the whole Nissha Group.
We nominate Audit and Supervisory Board Members taking into consideration the individual’s knowledge offinancial matters, accounting, and legal affairs.
Of four members, two are full­time Audit and Supervisory Board Members, and the others are Independent
Audit and Supervisory Board Members. We aim to maintain and improve the corporate governance structure byappointing certified public accountants or attorneys as Independent Audit and Supervisory Board Members andutilizing their highly professional knowledge for audits. We consider that the two Independent Audit andSupervisory Board Members satisfy Standards for Independence Standards for Independent Directors, andAudit and Supervisory Board Members prescribed by us and standards for independence of outside officers
stipulated in the “Guidelines concerning Listed Company Compliance, etc.” by the Tokyo Stock Exchange,
hence and they have sufficient independence and there is no risk of conflict of interest with generalshareholders. Therefore, we have designated them as Independent Officers.

Officers Remuneration
Remuneration for the Officers is determined within the upper limit of total remuneration approved at the General
Meeting of Shareholders (not exceeding \430 million in total for the Directors and \60 million in total for the
Audit and Supervisory Board Members per year).

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Remuneration of Directors and Audit and Supervisory Board Members
Remuneration of directors consists of basic compensation and bonuses determined by the Board of Directors.
Basic compensation is set according to the individual’s position and the significance of his or her role, andreflects evaluation of the individual’s degree of contribution and performance. Bonuses are based on
consolidated business results (net sales, 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.
Remuneration of independent directors consists of basic compensation only, based on factors such as theindividual’s career. Remuneration linked to business results is not provided, as the role of independent directors
is separated from business execution.
In addition to this, we are set to introduce a stock compensation plan called the Board Benefit Trust (BBT) for
directors excluding independent directors. The resolution was approved at the 97th Ordinary General Meetingof Shareholders, held on June 17, 2016.
The BBT is a system linked to business results in which Nissha shares are acquired through a trust using funds
contributed by Nissha, and these shares are paid to directors through the trust in accordance with a Policy on
Directors’ Stock Compensation established by the Board of Directors. By further clarifying the link between
directors’ compensation and the value of the company’s shares, and having our directors experience together
with our shareholders not only the benefits of a rise but also the risks of a decline in share prices, the systemaims to increase awareness in directors of the importance of improving business results and enhancing the
Nissha corporate value over the medium to long term. The system starts in September 2016.
Policies regarding the compensation plan above are determined by the Board of Directors in consultation with
the Nomination and Remuneration Committee, in which the chairman and at least half of the members are
selected from independent directors and which serves as an advisory panel for the Board of Directors to ensure
objectivity and fairness.
Remuneration for Audit and Supervisory Board Members is determined through discussions among Audit andSupervisory Board Members within the upper limit of total remuneration approved at the General Meeting of
Shareholders.

Remuneration by Category(Million yen)

Total
Title

Remuneration(Million yen)

Directors (Excluding
Independent Directors)

Number of
BasicCompensation

Board Members

Bonuses

202

141

60

4

27

27

­

2

36

36

­

6

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

Total Remuneration and Number of Board Members (FY2016)

Corporate Officers
At present we have 17 corporate officers, each appointed taking into consideration diversity in order to flexibly
adapt to changes in the business environment. Seven of the corporate officers have work experience outside
the Nissha Group, and one is a foreign national. The term of office of corporate offices is for one year.

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CSR Report 2016

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 thatﬃ

the duties of each internal organization are carried out legally, appropriately, and eciently towardenhancing our corporate value. To ensure reliability of ﬁnancial reporting, we submit theassessment results of our internal control system in the form of internal control reports to thePrime Minister of Japan and disclose the contents to our shareholders and investors.

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 “Guideline of the
Corporate Ethics and Compliance” to carry out monitoring and educational activities to ensure compliance withlaws and regulations, the Company’s articles of incorporation and social norms. In addition, the Company shallappoint a Manager and Leader in charge of promotion in each business unit of the Nissha Group to establish a
structure for promoting Corporate Ethics and Compliance. An “in­house reporting system” shall be establishedand operated, through which employees may provide information directly to the Company, while due measures
are taken for the protection 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 & 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.
(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 the same.
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 and compliance, BCP, labor and humanCorporate Governance

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CSR Report 2016

rights, environment and safety, information security, trade control, product quality, and improved customer
satisfaction under the CSR Committee led by the President and CEO, Chairman of the Board as the acting
Committee Chairman.
(iii) Each subcommittee and the superintending division shall establish a management policy, rules, etc.;
determine risk analysis, risk assessment, and related measures; conduct daily monitoring activities; and report
the results of reviews to the CSR Committee.
4. Systems necessary to ensure the efficient execution of the duties by Directors, Members of the Boardof the Nissha Group(i) Through 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 executive 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 the organization 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 each company of the Nissha Group. In addition, the Company shall manage the performance ofimportant operations of each company of the Nissha Group by designating matters requiring approval of andreporting to the Company with regard to the execution of those operations in the Regulations on Requests forManagerial Decisions.
(ii) The Company shall appoint its officers or employees to become Directors, Members of the Board and Audit& Supervisory Board Members of each company of the Nissha Group in order to ensure the proper execution ofoperations.
(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 & Supervisory Board meeting for the exchange of
information among the Audit & 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 & Supervisory Board Members, when Audit& Supervisory Board Members ask for appointment of such employees, and matters regarding theindependence of such employees from Directors, Members of the Board(i) The Company shall establish an Auditor & Supervisory Board Member’s Office to assist the duties of Audit &Supervisory Board Members, and shall arrange for employees to be exclusively assigned to the office.
(ii) The Auditor & Supervisory Board Member’s Office shall belong to the Audit & Supervisory Board and be
independent of Directors, Members of the Board. With regard to matters regarding the personnel affairs of theemployees of the Auditor & Supervisory Board Member’s Office, approval of the Audit & Supervisory Board
shall be obtained through consultation.
7. Systems for reporting to Audit & Supervisory Board Members by Directors, Members of the Boardand employees of the Nissha Group and other systems regarding reporting to Audit & Supervisory
Board Members
Directors, Members of the Board and employees of the Nissha Group shall quickly report to the Audit &Supervisory Board items that have a serious influence on the Nissha Group, the status of risk management, theresults of internal audits, the status of internal reports and the details of such reports, etc. The Audit &Supervisory Board Members of the Company shall request the Directors, Members of the Board and employeesof the Nissha Group to report the same as necessary. In addition, whistleblowers shall not be treateddisadvantageously in any way whatsoever as a consequence of such reporting.
8. Other systems necessary to ensure the effective audit by Audit & 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 & Supervisory Board shall be held. The Audit & 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 & Supervisory Board Members shall attend not only the meetings of the Board of Directors, but

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also other important meetings (MBR: Monthly Business Review, etc.), and express their opinions as necessary.
In addition, they shall also examine the requests for managerial decision and other important documents.
(iii) The Company shall ensure objectivity and effectiveness of audits through Independent Audit & Supervisory
Board Members, including those who have considerable knowledge concerning finance and accounting or legal
affairs, such as a certified public accountant or an attorney, etc.
(iv) The Company shall bear expenses necessary for the execution of duties by the Audit & Supervisory Board
Members. If an Audit & Supervisory Board Member requests the Company to make an advance payment ofsuch expenses pursuant to laws and regulations, the Company shall promptly comply with the request upon
confirmation .

Risk Management
With a risk management policy in place to clarify our approach, we promote risk management to counter risks
that may have a significant impact on our business activities, and to be fully prepared in the event an
emergency does occur.
Having organized a CSR Committee chaired by the President and CEO and defined risks that require
addressing as “any thing or situation that hinders Nissha’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 Planning (BCP), 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.
For the purpose of ensuring business continuity and maximum service to our customers, securing the safety of
our employees and their families, and contributing to the restoration of communities and of society at large, we
conduct desktop simulation exercises aimed at verifying the effectiveness of our BCP. In fiscal year 2016, webegan formulating a Basic Plan for Business Continuity Management, and under the slogan “BCP in Action”
conducted training and business impact assessment (BIA) for management and divisions that are a potential
bottleneck to BCP.

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

Corporate Governance

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CSR Report 2016

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

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 2016 focused on governance, compliance, and work processes at North American bases
and at consolidated subsidiaries in Japan. Internal Audit, as a third party, also performed an independent
assessment of financial reporting­related internal controls, including at subsidiaries that joined the Nissha Groupthrough M&A, in accordance with the Financial Instruments and Exchange Act.

Corporate Governance23

CSR Report 2016

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 through organizational management, serve as thecontact for Corporate Legal Affairs in responding to specific cases, and even take on the role of consultant intheir workplace.

Corporate Ethics and Compliance24

CSR Report 2016

We designate every October as corporate ethics and compliance month, during which we offer group­wide
training. In fiscal year 2016, we conducted training by division tailored to the respective divisions’ duties and thebases’ laws and customs. Each division also held discussions under the major themes of respect for humanrights and appropriate handling of information. Participants completed a questionnaire and were provided withfeedback on the analysis results. The contents will be reflected in future training themes. For managers atoverseas bases, we provided training in risk management with regard to bribery, a key issue in global
compliance.
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. To promote
free and fair transactions, we work to enhance employee awareness of our manual on the promotion of
appropriate transactions as well as our code on exchanging information with competitors.
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

Corporate Ethics and Compliance25

CSR Report 2016

Distribution of Added Value to Stakeholders
Our distribution of added value to stakeholders on fiscal year 2016 is given in the table below.
Distribution to employees increased over the previous year due to the addition of consolidated subsidiaries.
Sponsorship of events such as museum and art exhibitions are included from this year’s report, in accordancewith our Basic Social Contribution Policy, for an increase in distribution to society.

Distribution of Added Value to Stakeholders

Stakeholders

Shareholders

AmountDescription(million yen)
1,284

Remarks
Figures published in financial

Dividends

results
Calculated by Corporate

Sum of expenses for salaries,
Employees

6,665

wages, bonuses, and retirement
benefits

Social Responsibility, using
results of the year ended
March 31, 2016 (excluding
personnel expenses included
in manufacturing costs)

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

219

Figures published in financial

Interests

results

Sum of taxes paid including
1,897

corporation tax, inhabitant tax,
and enterprise tax

Figures published in financial
results

Money and in­kind donations,provision of facilities, andemployees’ volunteering
Society63

services converted intomonetary value (using methods

Calculated by Corporate
Social Responsibility

established by Nippon
Keidanren)
Company(internal reserves)

Distribution of Added Value to Stakeholders

5,610

Amount of increase in surpluses

26

Figures published in financial
results

CSR Report 2016

Human Rights
In line with our Basic Policy on Labor and Human Rights,
we observe international norms and legislation,

and are working to build and operate a management system.

Human Rights

27

CSR Report 2016

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.

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.

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CSR Report 2016

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. Instances of noncompliancefound through the audits, such as poor awareness of the harassment help desk, have been addressed throughcorrective 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 2017, it set targets inthe areas of work time management, expansion of women’s participation in business, and employment ofpeople with disabilities. As can be seen, the CSR Committee leads operation of our management system
toward reducing CSR risks.

HotlineTo minimize risks and promote ethical conduct and compliance, as well as to enable the company toimmediately verify facts, we have in place a system for internal reporting for Nissha Group in Japan in the eventof fraud, illegal activity, or unethical conduct by either an organization or an individual employee. The hotline
enables reporting to within the company and outside the company (through a lawyer’s office).
Our Internal Reporting Code protects informers from any unfavorable treatment by either the company or other
employees on account of their reporting. We also accept anonymous reports. In fiscal year 2016, the hotline
was used four times. The reports concerned the use of company facilities and the workplace environment. We
are working to enhance employee awareness of this hotline through the Corporate Ethics and Code of Conduct
Manual, as well as through the Nissha intranet and training, in order to further reinforce corporate ethics andcompliance.

Hotline Organizational Chart

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 2016, the harassment help desk was used
one time.

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.

Human Rights

29

CSR Report 2016

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 plan to carry on 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.

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 a peaceful relationship between labor and management as well as strive for the maintenance andimprovement of labor conditions and the growth of the Company,” and stipulates, “the Company shall respect
the Union’s right to organize, right to collective bargaining, and right to act as a group,” thereby guaranteeing
basic 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 2016, 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 2016, the Nissha Labor Union has a membership of 735.
*2. As of the end of March 2016, the Nitec Industries Labor Union has a membership of 462.
*3. As of the end of March 2016, the Nissha Printing Communications Labor Union has a membership of 193.

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CSR Report 2016

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 carries over the traditional practice of regular

Takashi Yoshioka
Executive Labor Leader
Nissha Group Labor UnionManagement Council meetings for exchanging views, questions,and reports, and always organizes extraordinary meetings for negotiating wages and labor conditions.
Labor and management work hand in hand to promote work­life balance and safety and health.
Labor unions of the future should not only maintain equal, healthy relationships between labor andmanagement but also establish value as an important partner in business operations. We believe thiswill lead to an invigoration of union members and an enhancement of corporate value.

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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.

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Human Resources Development
We at Nissha believe that our employees are our most important management resources. We are aiming toachieve growth for both the company and our employees by actively supporting the growth of each individual
employee and developing human resources who are equipped with the skills and experience required to work at
Nissha.

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 2016

Training System Model

Education Programs
Area

Training
Nissha Academy (selective training for next­
generation management candidates), rank­specific

Planned human resource developmenttraining, manager training, overseas appointee
training, etc.
Theme­specific training (leadership, problem­solving
skills), foreign language training, accounting

Skill development

education, in­house TOEIC testing, correspondence
course, etc.
Education for young employees (first, second, andCareer development

third years of joining Nissha), career developmenttraining, etc.

Enhancement of Selective Human Resource Development
In fiscal year 2014, we established Nissha Academy, an in­house institute for fortifying advanced, specialized
development of human resources. While we continue to expand on our rank­specific, theme­specific, andcareer design training programs, Nissha Academy employs a selective system to provide advanced, specialized
education.
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; aManagement of Technology (MOT) School, which fosters leaders capable of linking technology withmanagement to create new business; and a new Monozukuri School, established in fiscal year 2016, whichaims to develop leaders capable of taking a strategic, scientific approach to “monozukuri,” or manufacturing.
Graduates of each school are given opportunities to practice what they have learned through involvement inprojects and the drafting of medium­term business plans, for a consistent human resources development
program that integrates all three areas of planned human resource development, skill development, and careerdevelopment.
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

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34

CSR Report 2016

what they have learned to analyze the current situation of their company and discuss its challenges throughgroup work and the creation of individual reports.

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 support employees with the will to learn through other development programs as well. For example, we offer
many open­call training courses, where employees may sign up for in line with their choice of personal
development theme, designed to foster all­purpose business skills such as logical thinking and presentation,and develop linguistic skills required of employees of a global company. Our correspondence courses and self­
learning programs via Skype encourage voluntary learning by covering half the price of subsequent courses forgraduates.

Training Programs in Fiscal Year 2016
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 2016 are given in the table below.

Male
Annual training hours
Training hours per employee*

FemaleTotal

23,106

7,375

30,481

11.9

17.3

12.9

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

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CSR Report 2016

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 of Nissha People

Fiscal Year

GenderCorporate

Directors

Nissha fellows

officers

Managerial

Employees

staff(total)Average age

Average yearsof employment

Male

6

16

1

181

781

38.5

13.4

Female

0

0

0

6

202

31.7

7.5

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

End of FY2012

End of FY2013

End of FY2014

End of FY2015

End of FY2016

Note 1: Directors include independent directors.
Note 2: Employees exclude temporary employees.
Note 3: The decrease in total number of employees at the end of FY2016 owes primarily to the spin­off of the Information and Communication business as Nissha Printing Communications,
Inc. on July 1, 2015.

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CSR Report 2016

Composition by age (Nissha Printing Co., Ltd., as of the end of March, 2016)

Number of employees (Nissha Group, as of the end of March, 2016)* Figures exclude temporary employees

Composition by region (Nissha Group, as of the end of March, 2016)

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CSR Report 2016

Composition by employment status (Nissha Group, as of the end of March, 2016)* Figures exclude directors by a delegation agreement

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.
Due to a decrease in the total number of employees with the spin­off of the Information and Communication
business in July 2015, people with disabilities accounted for 2.54% of the Nissha Printing Co., Ltd. workforce asof March 31, 2016. People with disabilities employed at the company spun off, Nissha Printing Communications,Inc., numbered zero as of March 31, 2016; however, the figure increased to one in April.
Each company of the Nissha Group plans to continue making efforts to meet the statutory rate.

*The statutory employment rate of people with disabilities for private companies in Japan changed from 1.8% to 2.0% on
April 1, 2013.

Respect for Diversity

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CSR Report 2016

Start of 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 from society, we recognize women employees’ participation in business as aparticularly 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 of the Nissha Group are subject to the Act on Promotion of Women’sParticipation and Advancement in the Workplace (Women’s Participation Act), which came into effect inApril 2016. But our activities extend beyond these three companies across the Nissha Group as awhole.
As a first step to undertaking initiatives, in fiscal year 2015 we sought to understand how women
employees felt about career planning, work­life balance, and sense of fulfillment at work. We
interviewed 134 women, representing about 30.0% of women employees at all of our bases in Japan,
and based on the results commenced full­scale activities in fiscal year 2016.

Internal Communication and Employee Questionnaire
In April 2015, we added to our intranet a NISSHINE (Nissha + shine) section for communicating
information on work­life balance support and expansion of women’s participation in business. Alongwith an introduction to systems for supporting child­rearing and family care, the section publishes thevoice of employees who have used each system, with the hope that this will acquaint other employeeswith and encourage them to take advantage of the systems. Since April 2016, the section also turns the
spotlight on employees who shine in the workplace.
In promoting women’s participation in business, we believed it was necessary to first examine degrees
of job satisfaction and job awareness in all employees, including men, and gain insight into any
differences in thinking and the current level of participation by women. To this end, in September weadministered a questionnaire to all employees. About 70% responded “satisfied” to questions about
overall job satisfaction. Questions about satisfaction in workplace relationships and content of work
(ability to perform to potential; sense of fulfillment) also earned high scores.
Women showed lower awareness of advancement and promotion in general, with the lowest scorescoming from those in the 20s. Compared to about 50% of men, roughly 20% of women had theambition to be promoted to managerial roles. Men in both managerial and general employment levels
preferred to have men as subordinates over women. The results provided us with a new challenge: notonly is it necessary to change the awareness of women employees, it is also necessary to change theawareness of men managers.
There was no significant difference between men and women regarding broadening of work content.
The responses showed that a majority of employees wanted to try various types of work. In order torealize growth for both the company and our employees, we plan to include women as well as men
employees in job rotations, and work to develop multiple skills in employees.

Forum on Women’s Participation in Business
In autumn, we organized a forum on women’s participationin business, where some 180 women employees shared
the gist and direction of Nissha initiatives. The participants
held group discussions to explore the senses of value they
have at work, their image of women shining at theirrespective workplaces in Nissha, and the support they needfrom the company and their superiors as well as what they
could do themselves to realize that image. President Suzuki
took the stage and directly delivered a heartfelt opening
message about the Nissha Group’s efforts toward diversity and his wish for every employee, regardlessof gender or age, to be confident about their job and always strive to live up to their full potential.
The forum received positive feedback from the participants, including, “Meeting women employees I
had never known before and hearing about the work they do helped me feel closer to them”; “Theopportunity to talk with women from other divisions and work together toward a common goal opened
up a new world for me. I met a number of women who were ideal role models”; and “I discovered thatPresident Suzuki has the same expectations of women and men, and felt I made the right choice to join
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CSR Report 2016

Training for Management
In February 2016, we organized our first training session for management, targeting department
directors and positions above. As in the forum on women’s participation in business, the participants
shared the objectives and direction of Nissha initiatives, and then identified ways to translate theinitiatives into on­site management. Crucial to managing women employees, the managers learned,
was to understand that even with the same academic background, women and men perceive things
differently, and it is especially important to bear this in mind when communicating with women.
Feedback from the participants included, “The session provided valuable insight into the uniquesensibilities of women,” and even a request to “Please hurry and give the same training to groupleaders who actually work with women every day.” In fiscal year 2017, we plan to organize a session for
all managers including group leaders and career development training for women employees.

Enhancement of Systems and Communication Tools
In April 2016, we began deliberations on establishing a system for supporting employees who wish to
be reinstated at work as quickly as possible after taking child­rearing leave, for instance, by covering
the expense of enrolling children in private day care service (in Japan, nonauthorized nurseries are
significantly costlier than those certified by local authorities, which have years­long waiting lists). The
idea is to lighten the burden on women employees, whose careers are often interrupted by life events
such as childbirth and parenting.
We opened "We are Nissha People!" in August 2016, a website dedicated to introducing men as well
as women employees participating in business actively in the Nissha Group.

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)

Start deliberations on system for minimizing interruption of women
employees’ careers by life events
Open Nissha People Portal for introducing employees participating
FY2017 (scheduled)in businessConduct training for management (all managers including groupleaders)
Conduct career development training for women employees

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CSR Report 2016

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 systems, and offer a further two days in which employees may request to take paid
leave on their birthday, that of a family member, or their wedding anniversary. As a result of ongoing efforts, theaverage paid leave taken exceeds 10 days per year. We plan to continue aiming for improvements in thepercentage 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
to raise awareness about overtime work, in fiscal year 2016 the amount of overtime work decreased by 6.1%

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41

CSR Report 2016

compared to the previous year, for a continuous year­on­year reduction.
In an aim to comply with the global code of conduct provided by the Electronic Industry Citizenship Coalition(EICC), Nitec Precision and Technologies, Inc. (NPT) operates a unique alert system to meet the requirement“Total hours worked should never exceed local or national standards, or 60 hours per week, whichever isstricter.” The system takes a count of work hours in midweek, alerts the superior of any employee at risk of
exceeding the standards, and prompts rigorous management of work hours during the remainder of the week.
The Japanese government’s guidelines for promoting work­life balance set a target of reducing the percentageof employees who work overtime in excess of 60 hours per week to 5.0% by 2020. With this in mind, all Nissha
Group companies in Japan will start managing work hours on a weekly basis starting in fiscal year 2017.

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)

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

Shorter hours for child­rearing*Days off for child nursing

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

1 child: 5 days

2 or more children: 10 days

2 or more children: 10 days

Paid

Either paid or unpaid

Amount: 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
Shorter hours for family care*

Support for Diverse Work Styles

Nissha Group in Japan
Total 240 working days
Total 480 working days
3 hours per day

42

Statutory coverage
Total 93 days
Total 93 days

CSR Report 2016

Days off for family care

1 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, and distributed it
to all employees in October 2014. The contents are published on the Nissha intranet since April 2015, anduseful information on welfare services were added in April 2016. As a result of these multiple initiatives, thenumber of employees who take advantage of our child­rearing and family care support systems is increasing
year by year.

Kurumin Certification
In 2013, Nissha Printing Co., Ltd. received “Kurumin” certification for the second
consecutive term, following 2009. 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.

Support for Diverse Work Styles

43

Kurumin Logo

CSR Report 2016

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. All numbers are on the rise, and male employees are using
the systems on an ongoing basis.

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

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CSR Report 2016

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 100%, Female 100%
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

FY2012FY2013

FY2014FY2015FY2016

Male

1

0

0

0

0

Female

0

0

0

0

0

Male

0

0

0

0

1

Female

0

1

0

0

0

Male

0

0

4

1

4

Female

2

2

2

2

4

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 have Reinstatement Support
Bylaws that stipulate 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. To offer
support also in terms of work style, we arrange periodic consultations with an industrial physician to confirm theconsiderations necessary in the workplace, and have a system in which reinstated employees may shorten theirwork 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 twodays a week or for a number of hours a day. In fiscal year 2016 a total of six employees used the system (oneduring pregnancy, four 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 that

Support for Diverse Work Styles

45

CSR Report 2016reflect their aptitude and thereby enhance our organizational strength. The company posts specific job openings
internally, employees who meet the criteria apply for the job of their own will, and those who pass the screening
are transferred to the relevant post. Employees who have transferred through the system are playing an activerole in their new division.

Status of utilization
Fiscal Year

FY2012

Number of21

job posting
Successful

FY2013

FY20147FY201533

FY201627

8

MaleFemaleMale

FemaleMale

FemaleMale

FemaleMale

Female

3

2

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 2016, as many as 416 employees received the most prestigious President’sAward, 169 employees the Top­Line Award recognizing contributors to sales expansion, and 440 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.

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CSR Report 2016

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.
The Safety and Health Subcommittee was integrated with the Environmental Subcommittee and reorganized infiscal year 2017 as the Environmental, Safety and Health Subcommittee. The new organization will work tomerge the previously separate management systems toward improving the level of management under acommon method and fulfilling its responsibility for corporate governance.

Safety and Health47

CSR Report 2016

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. We have also organized and introduced in relevant bases a set ofinternal standards to assess the risks of chemical exposure ahead of mandatory requirements coming into
effect in June 2016.

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, heads of each base carry out special safety patrols during
national safety week in July toward enhancing workplace awareness about safety. In fiscal year 2016, we
provided safety patrol training for workplace promoters of safety and health. Employees who had acquired acertain level of knowledge were registered as certificate holders and participated in the patrols, identifying
problems with fresh pairs of eyes and striving to create safe and comfortable workplaces.

Occurrence of Work­related Accidents
Cut­wound accidents from tools such as retractable utility knives increased in fiscal year 2016. Many cases
resulted in zero days of leave. Although the number of injuries or casualties increased over the previous year,
those resulting in four or more days of leave decreased for a reduction in both the frequency and severity ofwork­related accidents.

Occurrence of Work­related Accidents (Nissha Group in Japan)
Item
Number of work­
related accidents
Frequency of work­
related accidents*1
Severity of work­
related accidents*2

Safety and Health

FY2012FY2013

FY2014FY2015FY2016

23

21

16

17

26

0.16

1.15

0.00

0.77

0.66

0.03

0.06

0.00

0.04

0.02

48

CSR Report 2016

Number of working

248days lost

434

16

284

139

*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

Number of Work­related Accidents (Nissha Group in Japan and major overseas
production bases, by gender)
Total

Male

Female

Japan

26

21

5

North America

8

3

5

South America

2

2

0

Europe

1

1

0

Asia

4

3

1

Total

41

30

11

* Overseas figures represent accidents that resulted in days of leave

Safety and Health Education and Training
We provide education and training required in workplaces based on our Safety and Health Education andManagement Regulations. In fiscal year 2016, we conducted training with the aim of fostering workplacepromoters of safety and health, and training in procedures for handling and assessing the dangers and risks ofchemical substances. Employees holding certificates for completing advanced lifesaving training offered by thefire department conducted lessons in CPR methods such as AED and chest compression.

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 2016, we organized
health courses by an industrial physician and an original event for
gauging blood­vessel age toward promoting healthy dietary habits.
In the health courses by an industrial physician, titled “creative
eating to preserve youth,” participants learned the effects of food on
the body, tips to reducing salt consumption, and ideal food portions.
In the event for gauging blood­vessel age, employees received an
explanation of their measurement results along with advice on

Event for gauging blood­vessel age

improving dietary and lifestyle habits using a specially preparedleaflet. Both sessions 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 toorganize Smokerlyzer events to measure the level of carbon monoxide in smokers’ breath.

Safety and Health49

CSR Report 2016

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 education by a clinical psychologist since fiscal year 2010,
and introduced surveys on coping with work­related stress in fiscal
year 2013 ahead of a mandatory stress check system coming into
effect in December 2015. The survey results have been useful inself­care by helping employees identify and cope with their own
stress. In fiscal year 2015 we provided line care education about
supporting the process of improving workplace environments for“Employee­friendly Workplace” page in Nissha

mental health. And in fiscal year 2016 we sought pilot workplacesinternal newsletterfor administering general checkups with the aim of creating
employee­friendly workplaces from the bottom up. The checkup

teams first identified the good points of each workplace, the points that require improvement, and the reasonsfor improvement, then formulated a plan based on the members’ input, and set to work, topic by topic. Ideas forcreating employee­friendly workplaces are also published in our internal newsletter to familiarize employeeswith the concept. In future, we hope 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 are too busy to make 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 tounderstand 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 Health50

CSR Report 2016

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

51

CSR Report 2016

Environmental Policy and Management Structures
The Environmental Subcommittee and Safety and Health Subcommittee of the CSR Committee were integrated
and reorganized in April 2016 as the Environmental, Safety and Health Subcommittee. Our aim is to merge thepreviously separate management systems and realize a higher level of management suitable to our business
operations.
The Environmental, Safety and Health Subcommittee’s responsibility in corporate governance involves strategic
CSR activities based on materiality toward enhancing our corporate value over the medium to long term. In
basic CSR, it seeks to build and maintain a structure for conforming to global standards such as that provided
by the Electronic Industry Citizenship Coalition (EICC) and promote risk management in the areas of theenvironment and of safety and health toward strengthening the foundation of the Nissha Group.
Activities include building an environmental management system (EMS) based on ISO14001 at all bases of the
Nissha Group in Japan. The Environmental, Safety and Health Subcommittee comprises management covering
general supervision, the director of Corporate General Affairs in Corporate Administration in charge of EMS
management, and Environmental, Safety and Health Subcommittee members selected from each division andfactory. The Environmental and Safety Management group in Corporate General Affairs functions as secretariat
and operates the subcommittee. It conducts internal environmental audits and management reviews toward thecontinuous improvement of our EMS, and receives ISO14001 certification inspections to assess and improve
EMS effectiveness.
Our Environmental Policy aims for both business development and the realization of a sustainable society. We
are working to familiarize the policy widely throughout the company via the Nissha intranet as well as promoting
the policy among all employees by posting it at each base of the Nissha Group. Toward achieving ourenvironmental objectives, which serve as group­wide medium­term objectives, each factory and organization
sets its own environmental targets, and creates and implements an action plan. These environmental targets
are linked to quality targets and key performance indicators (KPI) so that they relate directly to everyday tasks.
Overseas offices of the Nissha Group obtain ISO14001 certification individually and undertake initiatives to build
and maintain a structure in conformance with global standards such as the EICC Code of Conduct. In future, weplan to expand our integrated environmental, safety and health management system to cover Nissha overseas
bases.

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

The Environment

52

CSR Report 2016

We promote open dialogue with our customers, shareholders, suppliers, employees, and society
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)Management by ISO14001 Certification and Non­certified Sites
We operate an effective EMS that focuses on key management items at each site. The scope of application
extends to all Nissha bases—not only major production bases but also small production bases and sales baseswith little impact on the environment. By dividing EMS sites into ISO14001 certification sites and non­certified
sites, we aim for management that sets meaningful priorities in tune with the actual circumstances of each site.
ISO14001 certification sites, which are also our major production bases, carry on implementing a uniqueenvironmental risk assessment process based on environmental hazards, taking into account the risks of asuspension in factory operations. In fiscal year 2016, Nitec Precision and Technologies, Inc. (NPT) Kyoto
Factory and the design and development divisions of our Industrial Materials business and Devices businessobtained ISO14001 certification. In fiscal year 2017, FIS Inc. will be transferred into the scope of application of
the Nissha Group EMS and receive inspection for ISO14001 certification. We built a leaner audit structure infiscal year 2016 combining environmental with safety and health internal audits, and plan to continue these
efforts in fiscal year 2017.
Our environmental risk assessment process involves two pillars of activity: managing negative risks, andmanaging positive risks including the improvement of environmental performance in sync with business targets
and quality targets.

Compliance with Global Standards
Demand is rising in recent years for compliance with the EICC Code of Conduct and, based on this, uniquecodes of conduct developed by customers operating in the global market. In fiscal year 2016, we promoted
efforts to live up to global standards based on ISO14001 in the three categories of EMS sites given below.
1. Sites of conforming to the codes of conduct provided by our customers and by the EICC
2. ISO14001 certification sites
3. Compliance inspection sites (ISO14001 non­certified sites)
In fiscal year 2017, we plan to promote integration of our environmental management system with our safety
and health management system, and expand coverage throughout the Nissha Group as an environmental,
safety and health management system reflecting the codes of conduct provided by our customers and by the
EICC.

The Environment

53

CSR Report 2016

Nissha Environmental Management Structure

Energy Management and Environmental Communication Structures

The Environment

54

CSR Report 2016

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 2016,
the first 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.
ISO14001 certification sites undertook environmental risk management and measures to reduce environmental
risks, and all sites attained one risk level lower. With an intensive focus on emergency training, they alsoestablished a system for accident prevention. Nitec Precision and Technologies, Inc. (NPT) Himeji Factory
conducted nighttime training in responding to substance leakage, and NPT Kaga Factory fortified its rainwater
management system. As a result, following the previous year we maintained zero environmental accidents andachieved our environmental objectives.
In measures to mitigate global warming, major sites of the Nissha Group in Japan combined recorded a CO2
emissions rate by basic unit of 0.92 in fiscal year 2016 (compared to fiscal year 2015 results as 1.00), achieving
our target of 0.99 or less. By site, NPT Kaga Factory and Nitec Industries, Inc. (NII) Koka Factory met theirrespective targets, while NPT Himeji Factory and Nitec Printing Co., Ltd. (NPC) Yachiyo Factory fell short. NPTKaga Factory saw dramatic improvement thanks to an increase in production volume coupled with efforts toboost efficiency, plus small­group activities. The Environmental, Safety and Health Subcommittee of the CSR
Committee identifies management by basic unit as a material issue and will continue activities toward
improvement in fiscal year 2017.
In measures to reduce waste, major sites of the Nissha Group in Japan combined recorded a waste generation
rate of 0.86 in fiscal year 2016 (compared to fiscal year 2015 results as 1.00), achieving our reduction target of
1% or more. By site, NPT Kaga Factory achieved its target by a significant margin, with a rate of 0.68
(compared to fiscal year 2015 results as 1.00), through an increase in production volume and activities toward
improvement. NPT Himeji Factory also met its target, with a rate of 0.96, even with a decline in production
volume thanks to small­group activities and an improved yield rate. NII Koka Factory failed to meet its target
despite an increase in production volume due to a conversion to small lot production and the handling of high­quality products. NPC Yachiyo Factory achieved its target even with a decline in production volume. NPC Kyoto
Factory fell short of its target despite small­group activities. In the promotion of zero emissions, we recorded a
recycling and resource reuse rate of 91.8% in fiscal year 2016, an improvement over 88.1% in the previous
year, thanks to efforts at NPT Kaga Factory to reduce the amount of wastewater sludge generated, which must
be sent to landfill.
In measures to reduce hazardous chemical substances, NPT Kaga Factory achieved its target by reviewing its
wastewater treatment process and working to reduce the usage rate of chemical agents. NII Koka Factory did
not meet its target despite efforts to reduce the usage rate of organic solvents such as toluene and xylene due
to a decline in production volume and conversion to small lot production. It continues efforts to sell organic
solvents for recycling, however, and has contributed to resource reuse and cost reduction.
In a new initiative starting in fiscal year 2016, we added to our environmental objectives the concept ofenvironment­conscious design,, which introduces the viewpoint of environmental consciousness and the
reduction of environmental impact into products and production processes. The Devices business has
incorporated the concept in the processes of designing wireless sensor networks and narrow frame for touch
panels. NPT Kaga Factory has switched to using chemical cleaners with low environmental impact, and NPT
Kyoto Factory is working to improve its production process toward reducing environmental impact oftransportation.

Environmental Objectives and Status of Achievement

55

CSR Report 2016

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 not achieved zero
emissions work to achieve it(3) Reduce cost of waste treatment
Practice cost reduction by promoting multi­sourcing and resource reuse
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

Environmental Objectives and Status of Achievement

56

CSR Report 2016

Results and Assessment in Fiscal Year 2016
1. Prevention of pollution
Results
The Nissha Group experienced zero environmental accidents in fiscal year 2016.
Assessment: Satisfactory

Certification sites NII Koka Factory and Tsu Factory; NPT Himeji Factory, Kaga Factory, and Kyoto Factory;
NPC Yachiyo Factory; and Nissha Business Service Co., Ltd. (NBS) created a hazard assessment list and took
measures to reduce environmental risks. These sites primarily organized training in substance leakage. NPT
Himeji Factory stepped up measures to prevent pollution through nighttime emergency training. NPT Kaga
Factory fortified its rainwater management system and, as an emergency measure, built a new system forsending notification from its monitoring system to mobile phones.

2. Prevention of global warming
Results
Major sites of the Nissha Group in Japan combined recorded a CO2 emissions rate by basic unit of 0.92 in
fiscal year 2016 (compared to fiscal year 2015 results as 1.00), achieving our target.
Assessment: Satisfactory

NPT Kaga Factory saw dramatic improvement, with a rate by basic unit of 0.64 (compared to fiscal year 2015
results as 1.00). An increase in production volume coupled with small­group activities to boost efficiency led tothe achievement of its target. NII Koka Factory, with a rate of 0.86, also met its target by basic unit. NPT Himeji
Factory, with a rate of 1.15, and NPC Yachiyo Factory, 1.02, fell short of their respective targets.
Issues: Maintaining a steady basic unit has become a challenge in recent years. Although each factory
promotes various energy saving measures, their respective basic units are often influenced by production
volume. Through activities led by the Environmental, Safety and Health Subcommittee of the CSR Committee,
we will seek to rebuild a mechanism so that we may continue appropriate management by basic unit.

3. Reduction of waste(1) Control waste generation
Results
Major sites of the Nissha Group in Japan combined recorded a waste generation rate by basic unit of 0.86 in
fiscal year 2016 (compared to fiscal year 2015 results as 1.00), achieving our target.
Assessment: Satisfactory

NPT Kaga Factory, with a rate of 0.68 (compared to fiscal year 2015 results as 1.00), achieved its target
through an increase in production volume and activities toward improvement. NPT Himeji Factory, with a rate of
0.96, also met its target even with a decline in production volume thanks to small­group activities and an
improved yield rate.
NII Koka Factory failed to meet its target by basic unit despite an increase in production volume due to a

Environmental Objectives and Status of Achievement

57

CSR Report 2016

conversion to small lot production and the handling of high­quality products. NPC Yachiyo Factory achieved its
target even with a decline in production volume. NPC Kyoto Factory fell short of its target despite small­group
activities.

(2) Promotion of zero emissions
Results
NPT Kaga Factory is continuing efforts to improve its waste treatment process toward reducing the amountof sludge generated, which must be sent to landfill. With a recycling and resource reuse rate of 91.8%,
however, we did not achieve our zero emissions target (a recycling and resource reuse rate of 99.5% ormore).
Assessment: Poor

(3) Promotion of cost reduction for waste treatment
Results
NII Koka Factory and NPT Kyoto Factory are fortifying measures to sell waste for recycling.
Assessment: Satisfactory
Through measures such as sorting and selling waste for recycling, NBS is a contributor to the overall effortsof the Nissha Group in Japan to sell waste for recycling.

4. Reduction of hazardous chemical substances
Results
NPT Kaga Factory has improved its waste treatment process. NPT Himeji Factory and Kaga Factory are
working to reduce the amount of chemicals used in the production process, particularly through small­group
activities. NII Koka Factory did not meet its target usage rate of toluene and xylene due to a conversion tohigh mix production.
Assessment: Unsatisfactory

Issues: Setting the criteria for usage rates is a challenge with high mix production and special printing
processes.

5. Environment­conscious design
Results
The Devices business has incorporated the concept of environment­conscious design in the processes ofdesigning wireless networks and narrow frame for touch panels. NPT Kyoto Factory reviewed its production
process toward reducing the environmental impact caused by frequency of transportation.
Assessment: Satisfactory

Issues: Incorporating a system for assessing environment­conscious design into our environmental
management system is proving to be a challenge.

Environmental Objectives and Status of Achievement

58

CSR Report 2016

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 2016 are given in the table below.

Input and Output at Nissha Group Production Bases
Input and environmental impact were affected in fiscal year 2016 by changes in business operations and a
decline in production volume. By business, Industrial Materials saw an increase of about 38% in the usage of
PET and acryl film with the surge in production volume at major site Nitec Industries, Inc. (NII) Koka Factory. A
conversion to high mix, small lot production and the need for a special process in gravure printing also led toincreases in the usage of solvents by around 35% and of ink by 50%. Owing to a significant decline in input at
NII Tsu Factory, however, Industrial Materials overall saw a decrease of roughly 20% in PET and acryl film, andincreases of 7% in solvents and 11% in gravure ink.
Devices saw a decline in production volume at Nitec Precision and Technologies, Inc. (NPT) Himeji Factory,
which led to an overall decrease of about 23% in materials used in product manufacturing processes.
Information and Communication saw a decline in printing volume and a decrease of around 4% in the usage of
paper. Input remained roughly level at FIS Inc., which we welcomed into the Nissha Group in fiscal year 2015.
As for output for the Nissha Group as a whole, CO2 emissions decreased by about 6.5% compared to theprevious year, and water emissions decreased by 11%.
At major overseas production subsidiaries, input increased by roughly 40% compared to the previous year,
primarily due to increases at Nissha (Kunshan) Precision IMD Mold Co., Ltd. by 29%, at Southern Nissha Sdn.
Bhd. and Eimo Technologies, Inc. by 10%, and at Guangzhou Nissha High Precision Plastics Co., Ltd. by 2%,plus the addition of PMX Technologies, S.A. de C.V. to our business operations. Molded resin accounts for morethan 90% of materials used at overseas production sites.

Environmental Impact as a Result of Business Operations

59

CSR Report 2016

Industrial Materials

INPUT

OUTPUT

Production bases in Japan

Production bases in Japan

PET/acryl film

1,894tSolvents

1,479tGravure Ink

1,418tRecyclable resources

Waste containing(items sold fornoble metals

recycling)
Metal waste
Resin waste

Others197t
Paper waste

Devices

5,995tMaterials used in
product manufacturing6,256tRecyclable resources

processes

Waste plastic(industrial waste)
Iron scrap, waste

Information andOthers

292t

Paper

20,837t

Ink

264t

Others80t

cans
Waste solvents, waste

Communication

ink, waste cloth
Waste acid, alkali
Sludge, others

FIS

Printed­circuit board

2tmaterials

Waste for simple

General businessincineration/landfill

waste

Metallic materials

2t

Resin materials

2t

waste)

Half­finished goods

25t

Total for production

7,066tOthers (industrial

14,223tbases in Japan

Total for production

32,748tbases in Japan
Overseas production bases

Overseas production bases

Resin3,636tMolds and molding

Total waste

Touch panels

226t

Total for overseas

81tmaterials

226tproduction bases

0t

Others264t

Total for overseas

3,981tproduction bases
Total for Nissha

36,728t

Group
Including production bases in Japan and overseas
Energy1,162tIncluding production bases in Japan and overseas

Electricity

161,684MWh

Gas

6,695,000m3

EmissionsCO2103,923t

VOC (including
volume of after

Water

Tap water

682,000m3

Underground water

57,000m3

Industrial water

Environmental Impact as a Result of Business Operations

combustion andtreatment)
Wastewater

1,604,000m3

60

1,496t2,310,000m3

CSR Report 2016

Prevention of Further Global Warming
Status of CO2 Emissions at Nissha
In fiscal year 2016, CO2 emissions from the Nissha Group in Japan totaled 93,398 t­CO2, for a reduction of
about 12% compared to 106,087 t­CO2 in the previous year. The result owes primarily to the decrease inemissions from Nitec Precision and Technologies, Inc. (NPT) and Nitec Industries, Inc. (NII) Tsu Factory.
Emissions from NPT overall amounted to 61,979 t­CO2 in fiscal year 2016, for a roughly 14% decrease
compared to 71,726 t­CO2 in the previous year, due largely to fluctuations in production volume but also an
improved yield rate thanks to small­group activities at NPT Kaga Factory. Emissions from NPT Kyoto Factory,
on the other hand, were 2,945 t­CO2 in fiscal year 2016, for a roughly 20% increase compared to 2,464 t­CO2 in
the previous year. Emissions from NII Tsu Factory were 888 t­CO2 in fiscal year 2016, for a significant reduction
compared to 6,566 t­CO2 in the previous year, as a result of the efforts of Industrial Materials to respond tochanges in the business environment.
CO2 emissions from overseas production bases in fiscal year 2016 totaled 10,525 t­CO2, for an increase ofabout 20% compared to 8,748 t­CO2 in the previous year. Eimo Technologies, Inc., a subsidiary of Nissha USA,
Inc., where emissions account for more than half of the volume of all overseas production bases combined,recorded 5,085 t­CO2, for a roughly 9% increase over the previous year. Nissha (Kunshan) Precision IMD Mold
Co., Ltd. recorded an 11% increase. The addition of PMX Technologies, S.A. de C.V. to the Nissha Group also
contributed to the increase. CO2 emissions from overseas production bases as a whole, excluding PMX
Technologies, amounted to 9,246 t­CO2, for a roughly 6% increase over the previous year. Emissions fromSouthern Nissha Sdn. Bhd. decreased by about 2% compared to the previous year, and those from Guangzhou
Nissha High Precision Plastics Co., Ltd. decreased by 10%.
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

61

CSR Report 2016

Trends in Energy Consumption and Basic Unit

Trends in Electricity Consumption

Trends in Gas Consumption

Prevention of Further Global Warming

62

CSR Report 2016

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 thelegal requirements in line with this shift, in fiscal year 2014 we started managing emissions under a basic unit
based on factors such as production volume per company. With 1.00 indicating the benchmark fiscal year 2015
results of each affiliated company that constitutes a production base of the Nissha Group, we set fiscal year
2016 targets at 0.99 or less. The results are given in the table below. NPT Kaga 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 to an increase in production volume. NPT Himeji Factoryand Nitec Printing Co., Ltd. (NPC) fell short of their respective targets by basic unit despite efforts to improveenergy efficiency and reduce fixed energy consumption in response to fluctuations in production volume.
The Environmental, Safety and Health Subcommittee of the CSR Committee identifies the management of CO2
emissions as a material issue and will continue to strive for improvement by basic unit in cooperation with eachproduction base.

Basic Unit
(based on production volume etc. respectively)Company

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

FY2015FY2016FY2016

Results

TargetResults

FY2016
Evaluation

1.00

0.99 or less

0.94

○

1.00

0.99 or less

0.86

○

1.00

0.99 or less

1.15

×

1.00

0.99 or less

0.64

○

1.00

0.99 or less

1.02

×

Initiative in Scope 3 Management
Nissha Printing Co., Ltd. has undertaken to survey Scope 3 emissions from the Nissha Group, in line with themove in recent years led by organizations such as the Carbon Disclosure Project (CDP) to report greenhousegases (GHG) emitted indirectly from companies through their supply chain. This is defined by the GHG Protocol
as Scope 3 sources and includes manufacturing, transportation, business travel, and employee commuting. The
Environmental, Safety and Health Subcommittee has identified transportation and travel as material issues andset numerical targets for Scope 3 management toward enhancing our corporate value over the medium to longterm. We plan to disclose the results in fiscal year 2018.

Prevention of Further Global Warming

63

CSR Report 2016

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

Prevention of Further Global Warming64

CSR Report 2016

Waste Management
Initiatives of the Nissha Group in Japan
In fiscal year 2016, the Nissha Group in Japan generated a total 14,223 tons of waste, for a 16% reduction
compared to fiscal year 2015. The primary reason is the decrease in waste due to changes in business content
at Nitec Industries, Inc. (NII) Tsu Factory and Nitec Precision and Technologies, Inc. (NPT). The volume ofsimple incineration and landfill waste similarly decreased, amounting to 1,162 tons for a 43% reduction
compared to the previous year.
Our recycling and resource reuse rate was 91.8%, for an improvement of 3.7% 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), however, as sludge generated at NPT Kaga Factory cannot be recycled. NPT Kaga Factory has worked
to reduce the volume of sludge generated through improvements in its wastewater treatment process. As aresult, its recycling and resource reuse rate improved from 71.5% in the second half of fiscal year 2015 to 77%
in the second half of fiscal year 2016. Further reductions in the amount of sludge generated from NPT Kaga
Factory are expected to contribute to a significant improvement in the recycling and resource reuse rate of the
Nissha Group in Japan in fiscal year 2017.

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 more than 90% of the volume of all Asian bases combined. The three production bases
generated a total 226 tons of waste in fiscal year 2016, for a 12% reduction compared to fiscal year 2015.
Southern Nissha recorded a 2.7% decrease and Guangzhou Nissha a 52% decrease, while Nissha Kunshan
saw an 8.5% increase.
As for recycling and resource reuse rates, all Asian production bases achieved their respective targets again
this year. Southern Nissha achieved a rate of 99% against a target of 90% or more, Nissha Kunshan achieved arate of 89% against a target of 86.3% or more, and Guangzhou Nissha achieved a rate of 72% against a targetof 71% or more.

Waste Management65

CSR Report 2016

All waste generated in Asian production bases (Guangzhou Nissha, Nissha Kunshan, Southern Nissha)
FY2014
All waste generated（tons）FY2015194

FY2016256

226

Recycling and resource reuse rates in Asian production bases (FY2016)
Targets

Results

Evaluation

Guangzhou Nissha

71% or more

72%○

Nissha Kunshan

86.3% 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 Management66

CSR Report 2016

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)

FY2015FY2016

SpecialMeasures

Control

FY2014

Concerning

Voluntarystandard

Unitof theAnalysis

Environment

value

Evaluation

Analysisvalue

Evaluation

Analysis

Evaluation

valueof the Seto
Inland Sea)
Discharged

△

5,017

△

4,613

○

6.7～7.6○

6.9～7.5○

7.0～7.5

○

mg/L

6.3

○

4.4

○

3.1

○

9.0

mg/L

10.3

×

8.9

○

4.9

○

5.0

4.5

mg/L

1.5

○

1.9

○

1.3

○

1.0

0.9

mg/L

0.8

○

0.9

○

0.5

○

5,000

5,000

pH

5.8～8.6

5.8～8.6

6.5～8.0

BOD

120.0

10.0

9.0

COD

120.0

10.0

SS

150.0

n­hexanederivedsubstances

m3

5,143

5,200

water

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

0.07

○

0.05

○

0.01

○

Zinc

2.00

1.50

1.20

mg/L

0.02

○

0.01

○

0.01

○

10.00

0.15

0.08

mg/L

0.01

○

0.02

○

0.02

○

10.000

0.050

0.045

mg/L

0.030

○

0.040

○

0.040

○

Chromium

2.00

0.02

0.02

mg/L

< 0.02○< 0.02○< 0.02○

Nitrogen

60.0

10.0

9.0

mg/L

7.4

○

8.0

○

3.6

△

Phosphorus

8.00

1.00

0.45

mg/L

0.24

○

0.25

○

0.02

○

Solubleiron
Solublemanganese*In FY2014, COD value momentarily exceeded the agreement value. We have submitted necessary reports to the government and took corrective actions appropriately.

Monitoring and Prevention of Pollution

67

CSR Report 2016

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

Regulatory
Items measured

FY2014

Voluntary

value

standard(Prefecture)

FY2015FY2016

Unit
Fab3

pH

5.8～8.6

6.2～8.2

BOD

160 or less40 or less

COD

160 or less

SS

Fab5

Fab3

Fab5

Fab3

Fab5

76

○

7.9

○

7.6

○

8.0

○

7.5

○

­

­

mg/L

66.0

△

72.0

△

22.8

○

29.6

○

32.0

○

­

­

80 or less

mg/L

71.0

○

84.0

△

24.6

○

33.8

○

39.0

○

­

­

200 or less20 or less

mg/L

11.0

○

8.0

○

4.3

○

10.0

○

4.4

○

­

­

30.0

15 or less

mg/L

0.6

○

1.7

○

1.0

○

1.4

○

0.5

○

­

­

n­hexane derived
substances

Nitec Printing Co., Ltd. (NPC) Yachiyo Factory
Measurements of Soot and Smoke

Items

Regulatory

Voluntarymeasuredvalue

standard

Dust

0.100

FY2014Unit

FY2015Mar. 19

0.003

g/m3N

Evaluation< 0.001

Sep. 3○

FY2016

Evaluation< 0.002

Exempted from measurement○

due to discontinued use of
Nitrogen

150.0

oxide

71.3

g/m3N

53.0

○

59.0

soot and smoke generating○

facilities*The Yachiyo Factory upgraded its air­conditioning system from a gas absorber to an electric chiller in fiscal year 2015, discontinuing use of soot and smoke generating facilities.

Management of Chemical Substances
In fiscal year 2016, we reported the use of nine PRTR­designated chemical substances.

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

FY2014PRTR
No.

Name ofchemical
substance

FY2015

VolumeVolumeEthylbenzene

80

XyleneVolumeDischargetransferred 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
53

FY2016companies

companies

730

250

○

1,700

580

○

3,100

820

○

9,300

4,100

○

17,0005,500○

25,000

6,500

○

0.1

0.0

○

0.1

0.0

○

0.1

0.0

○

○

750

470

○

○

200,000

120,000○

Hexavalent
88

chromiumcompounds

296
300

1,2,4­
Trimethylbenzend
TolueneMonitoring and Prevention of Pollution­
97,000­○73,100○­140,000

68

­
7,800

CSR Report 2016

392

N­hexane

­

­

○

4,500

2,600

○

8,500

5,400

○

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

FY2014PRTR
No.

Name ofchemical
substance

Discharge
volume intotheatmosphere

FY2015

Volumetransferred toindustrial waste
processing
companies

Reporting

Discharge

required /volume into

not

the

required

atmosphere

FY2016
VolumeVolumetransferred toindustrial waste
processing
companies

Reporting

Dischargetransferred toReportingrequired /volume into

industrial

required /

not

the

waste

not

required

atmosphereprocessing

requiredcompanies

53

Ethylbenzene

3,900

1,100

○

250

2,500

○

­

­

­

80

Xylene

3,600

1,000

○

210

2,100

○

­

­

­

0.1

0.1

○

0.1

0.1

○

­

­

­

71,00020,000

○

980

9,900

○

­

­

­

Hexavalent
88

chromiumcompounds

300

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

FY2014PRTR
No.

Name ofchemical
substance

Discharge
volume intotheatmosphere

71

Ferricchloride

FY2015FY2016

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

280,000.0○

0.0

2,000.0○0.01,700.0○

Water­
soluble272

copper salts(excluding
complex salt)

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

FY2014PRTR
No.

Name ofchemical
substance

Discharge
volume intotheatmosphere

Volumetransferred toindustrial waste
processing
companies

FY2015FY2016

VolumeVolumeReporting

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
compounds

Monitoring and Prevention of Pollution

69

CSR Report 2016

82

(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

70

CSR Report 2016

Status of Waste Generation at Bases
Status of Waste Generation at Major Production Bases (March 2016 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: 99.8％

Status of Waste Generation at Bases71

CSR Report 2016

Nitec Precision and Technologies, Inc. (NPT) Himeji Factory
Location: Himeji City, Hyogo Prefecture
Acquisition of ISO14001 Certification: March 2014
Production items: Touch panels (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 panels (the Devices business)
Recycling and resource reuse rate: 72.0%

Status of Waste Generation at Bases72

CSR Report 2016

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 and rotary press (the Information and Communication business)
Recycling and resource reuse rate: 99.7%

Status of Waste Generation at Bases73

CSR Report 2016

Fair Operating Practices
As a socially responsible corporation, fair operating practices are a top priority.
We incorporate global standards into our operating practices

with the aim of being a Nissha that our customers will feel safe in choosing.

Fair Operating Practices

74

CSR Report 2016

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

75

CSR Report 2016

Management Structure

Initiatives in Information Security Management
In September 2005, we obtained ISO27001 certification, a global standard for ISMS. Since then, we have built
and continuously maintained and improved an ISMS unique to the Nissha Group. Through the operation of ourISMS, we have performed risk assessment and analyses related to information assets, determined and strived
for information security targets, complied with related laws and regulations, conducted internal audits, andappropriately followed processes such as management reviews, thereby reducing the risks of information
security incidents and accidents.
In fiscal year 2016, the Nissha Group focused particularly on the following initiatives.
1. Compliance with Japan’s social security and tax number system
We formulated a set of internal regulations with the introduction of Japan’s social security and tax number
system, and organized a briefing session and tested the level of understanding of employees responsible forhandling the numbers assigned to individuals.
2. Strengthening of information security education
We implemented training and education to deepen the understanding of all employees, including through groupsessions at affiliated companies new to the Nissha Group.
3. Expansion of ISO27001 examination and certification
In fiscal year 2016, Nitec Precision and Technologies, Inc. (NPT) Kyoto Factory and Nissha F8, Inc. (NF8)
obtained ISO27001 certification.
4. Response to new ISO27001
We received inspection by an outside organization and renewed our certification in the new version of
ISO27001 (2013).
5. Preparations for introduction of ISMS in overseas bases
We prepared a system toward the start of ISMS operation at overseas bases, and visited sites and organizedvideoconferences to provide education about initiatives in information security and explain the procedures for
operating the ISMS.
In fiscal year 2017, we plan to newly obtain ISO27001 certification at a number of our affiliated companies andstart operation of the ISMS at overseas bases. The Nissha Group will actively continue in our efforts to keep up
with the rapid changes in the IT environment, and reduce risks and strengthen management of information
security.

Initiatives Related to Information Security

76

CSR Report 2016

Trade Management
Enhancement of Trade Management Structure
Our Initiatives related to trade management date back to April 2010 with the launch of the Trade Management
Improvement Project Team. With the purpose of building an appropriate internal structure for import and export
control, the following year, in 2011, we established the Trade Administration and Control Committee and started
full­scale trade management. At its first general meeting organized in May 2012, the committee confirmed that
activities would aim to strengthen security trade control incompliance with the Foreign Exchange and Foreign
Trade Act, and to obtain authorized exporter status under the Authorized Economic Operator (AEO) program,which would recognize that we implement appropriate trade management based on the Customs Act. We
obtained this AEO Exporter approval in June 2014 and AEO Importer approval in June 2015.
We earn an increasing proportion of our sales overseas, with the percentage reaching 73.6% in fiscal year
2016. For a company like us, efforts in trade management are essential for business continuation.

Net sales and percentage of overseas sales

Trade Management Structure
Starting in fiscal year 2017, the Trade Administration and Control Committee carries out activities as the Trade
Administration and Control Subcommittee of the CSR Committee. The subcommittee works to strengthen trade
management under the head served by a director appointed by the president. Thorough management in daily
operations is assigned to subcommittee members and division managers of business divisions, corporate
divisions, and affiliated companies in Japan.
In fiscal year 2016, the subcommittee secretariat visited our overseas bases for employee education toward
expanding trade management efforts to overseas affiliated companies. In fiscal year 2017, it plans to build atrade management system at overseas affiliated companies in addition to continuing with employee education.

Trade Management77

CSR Report 2016

Trade Administration and Control Subcommittee

AEO Approval Status
Following approval as an AEO Exporter in June 2014, we obtained approval asan AEO Importer on June 15, 2015. As of May 31, 2016, a total of 57 companies
in Japan are approved as both an AEO Importer and an AEO Exporter. Being oneof the quickest companies to obtain dual approval, we have in place a system forsafe and smooth international logistics.
Southern Nissha Sdn. Bhd., in Malaysia, obtained approval as both an AEO
Exporter and an AEO Importer in October 2014.

Fiscal Year 2016 Initiatives and Future Challenges
In fiscal year 2016, we carried on with our initiatives from the previous year in fortifying security export control
and furthering export management not only of cargo but also of services (technological information). Meanwhile,
we also worked toward obtaining approval as an AEO Importer. Members of the Trade Administration andControl Subcommittee from each business unit organized secretariat meetings every month, and as part of its
efforts to fortify company­wide trade management initiatives, implemented rank­specific training for selectgroups of participants: sessions for all employees to acquire basic knowledge, sessions for managers andtrade­related workers aiming to acquire more specialized knowledge in trade­related duties, and sessions for
executives. Through our approval as AEO Importer, awareness has improved about prohibited articles andrestricted articles based on import control, and the number of submissions for export and import application
continued to increase significantly. We are also carrying on with our efforts toward thorough compliance withrules for completing and submitting customs documents required with actual exports and imports.
The strict control of export and import cargo is not only a demand from society but also, for a company like
Nissha that operates a global business, an important initiative toward enhanced service to our customers. While
we draw on the reciprocal advantages of approval as both an AEO Exporter and an AEO Importer, we believe it
is crucial to step up our efforts continuously on a company­wide level toward appropriate cargo control andimproved employee awareness of security.
We will continue to promote efforts to ensure safety, improve work quality, and fortify our initiatives incompliance so that we may provide safe, secure, and speedy international logistics services to meet ourcustomers’ demands.

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 Management78

CSR Report 2016

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 a key item, and we make active efforts to respect the intellectual property of third parties and toobtain rights for and use that of our own. Intellectual Property Management acts as the central body forprotecting intellectual property. With the aim of expanding the performance of business units and ensuring acompetitive advantage for new businesses, it works to establish intellectual property strategies for the 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. Ryu Yuasa, TechnoProducer
Corporation
Commissioned organizer: CKS Corporation

Initiatives Related to Intellectual Property

79

CSR Report 2016

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
Nissha Printing Co., Ltd.

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Basic Approach to CSR Procurement Promotion

Expansion of Our Supply Chain
We collaborate with various suppliers in conducting our business activities.
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

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CSR Supplier Audits
From fiscal year 2015 onward, we conduct CSR supplier audits starting with our particularly important suppliers
and new suppliers. The audits cover five areas— labor, health and safety, environmental, ethics, andmanagement 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, anddistribute an 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 sitepremises including the clean room, and interviews with employees. In the event the audit uncovers any
instances of noncompliance, the supplier is required to establish corrective action (CA) and preventive action(PA) on the findings. The nine audits conducted to date detected a total 82 instances of noncompliance (45related to labor and human rights, 18 to health and safety, 4 to the environment, 12 to ethics, and 3 tomanagement system). In several cases, employees from Nissha revisited the site to explain the proper
response to revisions in legislation and provide support to remedy the situation. Roughly three months later,
auditors check that CA and PA have been taken and the noncompliance has been remedied, bringing the CSR
audit to completion.
In fiscal year 2016, we carried out audits at a total of three materials suppliers of the Devices business and theIndustrial Materials business. This combined with the suppliers audited in fiscal year 2015 represent about 70%of the total value of goods procured at Nissha. By the end of fiscal year 2018, we aim to complete CSR audits at
suppliers representing 90% of the total value of goods procured.

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 property5) Fair business, advertising and competition
6) Protection of identity and non­retaliation
7) Responsible sourcing of minerals

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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 2016 Initiatives
1. Basic course in the Act against Delay in Payment of
Subcontract Proceeds
We invited an outside instructor and organized sessions at threebases. The course attracted many participants even from outside
procurement divisions, suggesting a high level of interest from ouremployees. Following training, we gave the participants a test andprovided feedback of the scores along with a recap, ensuring thatIn­house training

knowledge gained through the training took root in the employees’
minds.
2. 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.
3. Procurement program
We developed a new program with the aim of fostering next­generation leaders of procurement divisions. This
year we invited an outside instructor to conduct six monthly sessions around the theme of cost engineering. The
semester concluded in February with a presentation of achievements.
4. Procurement Q&A
Drawing on the results of an in­house procurement test conducted in fiscal year 2016, we sent a series of
emails to all employees of procurement divisions plus employees of other divisions who requested it, coveringknowledge in procurement with a focus on test questions that had a low percentage of correct answers. The
emails were sent once a week for a total of 30 weeks with the aim of strengthening our employees’ foundationin the basics.

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Initiatives Related to Conflict Minerals
The major conflict minerals used in Nissha Group products include tin used in some decoration films and in ITO
film*1 for touch panels, and gold used in FPC*2 plating.
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 our materials suppliers not to source minerals produced in
the Democratic Republic of Congo or adjoining countries.
In fiscal year 2016, 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
maintain continuously.
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 2016, we checked the level of our employees’ understanding of “corrupt
practices” through company­wide training sessions in corporate ethics and compliance, and conducted anti­
corruption training for managers at overseas bases of the Nissha Group.
We identify anti­corruption as a material issue related to CSR.
Moving forward, we plan to coordinate with relevant divisions and organize initiatives related to the prohibition ofcorrupt practices taking into account global trends and their significance to Nissha, as well as promote risk
assessment and focus on education.

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Consumer Issues
With the aim of providing products and services

that satisfy and meet the needs of our customers,

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

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Consumer Issues
Responsibility to Our Customers / 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. Led by the president and a Chief Quality Officer (CQO) in charge of the system, we promote
improvements in quality under our comprehensive quality assurance initiative Nissha Total Quality Management(NTQM). We also implement for various forms of improvement based on instructions from top management inperiodic management reviews.

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Quality Assurance Structure

Nissha Total Quality Management (NTQM)
Our NTQM initiative seeks to build and improve a mechanism for keeping promises with our customers as wellas complying with laws and regulations.
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.
In fiscal year 2017, we plan to conduct studies toward building quality management systems pertinent to our
new business domains, in compliance with standards such as TS 16949 (automotive industry) and ISO 13485(medical devices).

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.

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

Small­group Activities
The accumulation of bits of wisdom and creativity from all employees is the source of great improvements inwork processes. The small­group activities we restarted in July 2011 are an important mechanism for mustering
our knowledge and strengths. And the Company­wide Presentation Meeting of Small­group Activities launchedin October 2011—we celebrated the holding of the 10th session in April 2016—unveils the various results ofimprovement activities carried out at our business units. The presentation meetings are designed to reward not
only the results but also the thought process and creativity that produced the results, as well as the skills for
explaining these in an easy­to­understand manner. With the aim of sharing the fruits of improvement activities
with back­office divisions, in February 2016 we organized our first Back­office Company­wide Presentation
Meeting of Small­group Activities.
Through the small­group activities, a positive attitude has taken root in our employees’ minds: 1) always
incorporate creativity in work processes, 2) base judgments on data (facts), and 3) utilize the plan­do­check­act(PDCA) cycle to make improvements on a continuous basis.

Improvement Proposal System
Besides taking time to analyze workplace problems and search for optimal solutions, it is also important to say“just do it” and act on inspired ideas. In fiscal year 2012, we reintroduced the improvement proposal system as
a company­wide mechanism. The number of proposals is increasing year after year, and the concept of giving
shape to ideas and reporting them is taking root. At present, various departments submit many proposals,
which are helping to streamline management and make it more efficient as well as to invigorate workplaces.

Education and Training Activities
We at Nissha believe that the quality of people plus the quality of work equals the quality of the company. We
plan and provide various educational programs in efforts to develop our employees—our most importantmanagement resources.

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)
Training

3) Quality control training (QC Exam levels 3 and 4)4) Quality methodology training (statistical methods, experimental design, TS
core tools, etc.)
5) Improvement tool training (industrial engineering, human error prevention, “5Whys” cause­and­effect analysis, etc.)
6) Other training

Practical education
Information sharing /reciprocal learning1) Support for small­group activities
2) Nissha Academy (Monozukuri School etc.)
Company­wide Presentation Meeting of Small­group Activities

From Department­based Optimization to Company­wide Optimization
The next process is the customer—this is a Japanese maxim related to quality improvement. It means that all
workers in every process must have in mind the customer, who might be workers in the production process
following theirs. We at Nissha promote the recognition of ties between one’s own department and others’, andeven ties between work processes across the whole company, in terms of “input” and “output.” Hence we stressthe importance of links between internal processes and the orderly division of roles. By having all employees

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stand in the customers’ shoes, we aim to break free of department­based optimization and strive for company­
wide optimization. We believe that basic concepts like this and the sorting out of functions will build Nissha’s
foundation as a manufacturing company.

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 2016, 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.

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

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Along with Local Communities
Promoting Communication with Local Communities
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 active
communication so as to deepen mutual understanding with local communities.

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".

Waste Management Training for JICA Trainees
In September 2015, Nissha Printing Co., Ltd. organized a training
session at our global headquarters themed around corporate waste
management for overseas government agencies invited by theJapan International Cooperation Agency (JICA) to participate in a
training program in environmental management.
The request came by way of the Kyoto Environmental Activities
Association (KEAA) to accept 10 trainees from seven countries—
Sudan, Nigeria, Algeria, Egypt, Kazakhstan, Nepal, and Bhutan.
Three KEAA staff members accompanied the group.

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Following a tour of global headquarters workplaces centering on our waste separation and storage area, weintroduced the participants to Nissha initiatives in waste management, specifically zero emissions and risk
management. The JICA trainees left with a deep understanding particularly of our efforts in zero emissions, themechanism by which we manage three types of waste­related risk (accidents and disasters, violation of lawsthat causes environmental pollution, and information leakage), and our all­important management of andpartnership with waste treatment contractors.
We received words of praise from the accompanying KEAA staff members: “At Nissha, the concepts of reducing
risk and reducing waste are in perfect sync. The company does not view environment­friendliness as achallenge detached from business operations. Its initiatives in environmental protection link seamlessly with its
initiatives in waste reduction. This approach left a deep impression on us and proved to be a great source ofinspiration for the trainees.”

Initiatives for Next Generation Support and Humanitarian Support
Environmental Workshops at Local Elementary Schools and Nursery 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 2016, workshops were held at two elementary schools
in Kyoto and two elementary schools in Kaga, Ishikawa Prefecture.
At the schools, children learned about preventing global warming,
how to separate waste, and other environmental initiatives closely
associated with their daily lives. In addition, we introduced the“secrets of printing” and the “secrets of touch panels” as part of a uniquely Nissha program aiming to sparkinterest in “monozukuri,” or manufacturing, and foster a sense of professional values. Participants in thisinitiative, which started in fiscal year 2008, numbered about 4,150 children at 82 schools as of the end of March
2016.
In Kyoto, 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. The
program seeks to raise awareness of environmental issues and deepen interest in the technologies andinitiatives of companies based in Kyoto. In November 2015, the program won an encouragement prize in the
Sixth Career Education Awards presented by the Ministry of Economy, Trade and Industry.

Workshops Held in Collaboration with an NPO
With the aim of developing in children an interest in the environment andunleashing their creativity and imagination, we are holding “Machikusa Mikke!”workshops in collaboration with the NPO Kids Meet Artists (Director: Haruka
Idegami).
In this program, the children observe the weeds (Machikusa) that generally gounnoticed in daily life, guided by the artist Shinpei Shigemoto, who coined theterm Machikusa, give them original names of their choice, and make presentations about them. Following this,they create their own original Machikusa cards, or make Machikusa maps which record where they werediscovered.
Since it started in 2010, the workshop was run a total of 15 times with participation from about 650 children. In
fiscal year 2016, the workshop was held at an elementary school near Nissha’s Kyoto Global Headquarters, andat one temple and one shrine in the Rakuhoku area of Kyoto. Sessions at the temple and shrine invited children
from community children’s halls. Following an enthusiastic search for Machikusa, the children came up withcountless unique, imaginative names.

Support for Kyoto City Inquiry Learning Center for Career Education
NISSHA is sponsor of the Children's Monodzukuri Project in Kyoto run by the Kyoto City Board of Education. In
addition to exhibiting in a corporate booth at the Kyoto City Inquiry Learning Center for Career Education, Kyoto
Monodzukuri­no­Dendo (Monodzukuri Hall of Fame), we provide teaching materials and programs for theworkshops held at the Monozukuri Workshop. In this program, the children themselves used staplers and tape

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to create simple touch panels, which were lit up using LED lights.
In fiscal year 2016, some 1,200 children from a total of 18
elementary schools participated in our program, titled “First ‘Touch’to the Future.” We hope to develop the children’s curiosity in“monozukuri,” or manufacturing, through familiar everyday products.
In November 2015, the Kyoto program won the first prize forexcellence in the Awards for Partnerships for Career Education
Promotion jointly presented by the Ministry of Education, Culture, Sports, Science and Technology and theMinistry of Economy, Trade and Industry.

Human Support Activities in Partnership with TABLE FOR TWO
Since April 2013, the corporate cafeteria at Nissha’s Kyoto Global
Headquarters implements a program in partnership with TABLE FOR TWOInternational (Director: Masahisa Kogure), where with each purchase of ameal, 20 yen is donated to provide one school lunch for children in developing
countries.The cafeteria designates every Friday as TABLE FOR TWO (TFT)
day and serves a healthy TFT menu. While enjoying lunch as usual,
employees have the opportunity to deliver a meal to children in Africa. The
program has taken root thanks in part to its simplicity.
In October and November 2015, we took part in the World Food Day “Onigiri
Social Action” campaign hosted by TFT, where five meals are donated withevery photograph featuring an onigiri (rice ball) posted on a dedicated website.
In addition to serving rice­ball lunches at the cafeteria, we offered to takepictures to encourage participation. As a result, more than 150 photographs were posted from Nissha.

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 2016, we cosponsored the exhibitions and events given below.

Exhibition / event

Schedule

3rd KYOTOGRAPHIE
International Photography

April 18, 2015 ‒ May 10, 2015

Festival
Hori Fumiko Retrospective:
Unending Journey
Kitaoji Rosanjin: A Revolutionary
in the Art of Japanese Cuisine
Leaps in Evolution – Tracing thePath of Vertebrate Evolution
Tove Jansson Exhibition ­ Livingwith Moomins ­ Tove100
Niki de Saint Phalle

April 18, 2015 ‒ June 7, 2015

June 19 ‒ August 16, 2015

July 7 ‒ October 4, 2015

July 25 ‒ September 27, 2015
September 18 ‒ December 14,
2015

RINPA: The Aesthetics of theVenue
TORAYA Kyoto Gallery, Yuuhisai
Koudoukan, etc.

Hyogo Prefectural Museum of Art
The National Museum of Modern
Art, Kyoto
National Museum of Nature andScience
Abeno Harukas Art Museum

The National Art Center, Tokyo
Kyoto National Museum Heisei

October 10 ‒ November 23, 2015

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Capital

Chishinkan

Furuta Oribe: 400th Anniversaryof the Death of a Feudal Lord

October 10 ‒ November 23, 2015

Sagawa Art Museum

January 3 ‒ March 21, 2016

Aichi Prefectural Museum of Art

January 14 ‒ March 31, 2016

Mori Arts Center Gallery

January 16 ‒ April 10, 2016

Edo­Tokyo Museum

February 24 ‒ April 17, 2016

SUNTORY MUSEUM of ART

and Tea Master
The Secret of Picasso’s Genius
Vermeer and Rembrandt: The
Masters of The 17th Century
Dutch Golden Age
LEONARDO DA VINCI –BEYOND THE VISIBLE
Miyagawa Kozan Retrospective

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

Organization / host
Kyoto Chamber of Commerceand Industry
Kyoto Employers’ Association
Kyoto Association of Corporate
Executives
Kyoto Industrial Association
Ritsumeikan University Business
SchoolKyoto Institute of Technology
Kyoto Council of Economic
Organizations
Printers Association of Japan
Japanese Society of Printing
Science and Technology
Kyoto Institute of Invention andInnovation
Kaga Chamber of Commerceand Industry

Along with Local Communities

Position / membership status

Company registered

Permanent member

Nissha Printing Co., Ltd.

Executive director

Nissha Printing Co., Ltd.

Chair

Nissha Printing Co., Ltd.

Director

Nissha Printing Co., Ltd.

Advisory board member

Nissha Printing Co., Ltd.

Joint management council
memberNissha Printing Co., Ltd.

Director

Nissha Printing Co., Ltd.

Executive director

Nissha Printing Co., Ltd.

Councilor

Nissha Printing Co., Ltd.

Advisory committee member

Nissha Printing Co., Ltd.
Nitec Precision andPermanent member

Technologies, Inc. (NPT) Kaga
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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

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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¥5,684,790 thousand

Employees

817 (Consolidated number of employees: 4,054)*As of End of June 2016
Nissha is mainly developing the 4 business areas of Industrial Materials, Devices,Life Innovation and Information & Communication.

Business outline

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

Consolidated
Subsidiaries
Equity Method Affiliates

58
3*Japan: 14 (including affiliated companies)

Bases

Overseas: 39(including locally incorporated companies and equity method affiliates)【Japan】
Nitec Industries, Inc.
Nitec Precision and Technologies, Inc.
SiMICS Co., Ltd.
FIS Inc.
Nissha Printing Communications, Inc.
Nitec Printing Co., Ltd.
Nissha F8, Inc.
M crossing Co., Ltd.
Nissha Business Service Co., Ltd.

【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.
Lead­Lok, Inc.
Vermed, Inc.
CEA Medical Manufacturing, Inc.
Major Group

Graphic Controls Canada Company

Companies

Graphic Controls Ltd.
Crown Graphic N.V.
DIA­Nielson GmbH & Co. K.G.
Guyot Graphco S.A.

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Tyromed GmbH.
CEA Global Dominicana, S.R.L.
Nissha Europe GmbH
Nissha Luxembourg Holdings S.à r.l.
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.
*NS Tech Co., Ltd.
*TPK Film Solutions Limited

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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 panels” lead the way in touch input technology
today, our “Surface decoration” technology can change the looks
from plastic to wood, our “Hydrogen detectors” has adopted in fuelcell vehicle and we develop DDS (Drug Delivery System). We
progress technologies since we started business in 1929. We
maximize our capabilities driven by our technology, passion, andGlobal Headquarters (Kyoto, Japan)

leadership to create value for the future.

Developing the 4 business area
Nissha is developing the 4 business areas of "Industrial Materials(http://www.nissha.com/english/products/
industrial_m/index.html)" ,"Devices(http://www.nissha.com/english/products/dev/index.html)" ,"LifeInnovation(http://www.nissha.com/english/products/life/index.html)"and "Information & Communication(http://
www.nissha.com/english/products/information_com/index.html)". We handle decorative films and printing
related materials field comprising "IMD" and"Metallized Paper" as the main product in our Industrial Materials business, and the touch input device"FineTouch" series in our Devices business. In our Life innovation business, we handle gas sensors and
DDS(Drug Derivery System) and the Information & Communication business, we provide printing media and awide range of services that support general communication strategies, on a one­stop basis.
* Nissha Printing Communications, Inc. operates the Information and Communication business of Nissha Printing Co., Ltd.

Sales breakdown by business field

What's Nissha?

99

CSR Report 2016

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

Industrial Materials

On all sorts of surfaces, the technology to transfer both function and design
The major product of our Industrial Materials Business is IMD(http://
www.nissha.com/english/products/industrial_m/imd/index.html), whichapplies 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 or fingerprints, and its
simple production process are why IMD is held in such high regard aroundthe world, where it is used on a wide range of everyday plastic productsthat include automobile interior parts, consumer electronics, andsmartphones.
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.

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

What's Nissha?

100

CSR Report 2016

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?

Expanding the application areas
Centered around the unique technologies we have accumulated through IMD, we can respond to wide­ranging
market needs by expanding and developing new application fields.

Metallized paper
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, suchas biodegradability, metallized paper is garnering interest as
an excellent material for environment­friendly packaging.

Transfer to various materials
Nissha’s transfer technology enables decorate and add functions on
not only for plastic molded products but also for glass, metal and 3D
products.

What's Nissha?

101

CSR Report 2016

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 anddigital devices all over the world, and continues to open doors to
exciting new possibilities in a long list of industries and technologies.
With an eye toward future trends in the market, we are pushing theboundaries of touch­input functionality to create advanced sensing
devices of superior quality. Our developments in this area include a
new three­dimensional touch panel, a force sensor that can detect theslightest touch with a high degree of accuracy, and a flexible transmission antenna. We are committed tosupplying our customers with Flexible and Smart Devices that change the way the world works and plays.
* FineTouch is a Nissha's touch panel 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 panels. These are largely supplied for use insmartphones and portable games gears.
Touch panels have gained attention for their "usability" and "fun operation".
Applications are gradually spreading to a variety of other devices, such as digital cameras and car navigation
systems.We are aiming to expanding into a wide range of businesses by providing devices, services, andsystems with sensing functions in addition to touch panels. These will be targeted at a range of markets,
including healthcare, medicine, agriculture, education, housing equipment, industrial equipment, andautomobiles.

Strengths of FineTouch
Nissha is leading the touch panel market with its advanced technology.

Reputation for high quality
Touch panels require characteristics such as being light, thin, easy­to­ read, and operating accurately. Nissha isachieving this with its abundant know­how and state­of­the­art production equipment.
It is also offering a wide variety of products tailored to the needs of the market, such as a touch panel with adesign.

Expanding the area from touch to sensing
But Nissha is not only working on a touch panel that is used as a switch.
Aiming to give new value to the input and output of various devices, it is also working on products like a touch
panel with a three­dimensional shape and a sensor that detects how much pressure is being applied to it. It is
carrying out development while being aware of the trends of the times.

What's Nissha?

102

CSR Report 2016

New products The force sensor
The force sensor(http://www.nissha.com/english/products/dev/force.html) isa 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 calligraphy­
style brushstrokes. Applications are as diverse as ideas. The next­
generation touch sensor promises broad use in a wide range of industries.

Life Innovation

Contributing to Healthy and Enriched Lifestyles Worldwide
Life Innovation aims to contribute to safe, secure, and healthy lifestyles worldwide through business activities in
the fields of gas sensors and drug delivery systems (DDS*).
*DDS: Dosage forms of medication, such as injections, pills, ointments, and adhesive patches

Gas Sensors
Our gas sensor business, led by Nissha Group company FIS Inc., offers
semiconductor gas sensors and applied equipment such as modules andfinished products.
Along with expanding into home fuel cell systems and hydrogen stations
and similar infrastructure, rather than being limited to fuel cell vehicles, weare further accelerating specific initiatives to create new business fields suchas for medicine or POCT.

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.

DDS (Drug Delivery System)
Our DDS business seeks to cultivate markets for Nissha’s new DDS: the dissolving microneedle patch, whichhardly causes any pain when applying to skin, high efficiency can be expected.

Development is underway for products that may be used to deliver
pharmaceutical preparations such as vaccines, and skin care products
formulated to penetrate into the skin.

What's Nissha?

103

CSR Report 2016

Information & 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 Marketing Solution, Sales Promotions, Web Solutions, Creative Design, Cultural Asset Art
Solutions, Commercial Printing and Publication Printing. We make full use of these, together with market
research, the verification of effects, contents development and management, in order to realize overall
communication policies which are adapted to the times.
* Nissha Printing Communications, Inc. operates the Information and Communication business of Nissha Printing Co., Ltd.

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?

104

CSR Report 2016

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 2016 is compiled with theobjective of disclosing widely to our stakeholders information regarding Nissha’s initiatives and performance infiscal year 2016 (April 2015–March 2016), following the editorial policy given below.

Guidelines Used as Reference
・The G4 Sustainability Reporting Guidelines of the Global Reporting Initiative
・ISO26000
・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 2015 to March 2016. Some
reporting is also done regarding activities carried out after April 2016.

Publication Dates
Current issue: June 2016
Next issue: June 2017 (planned)
Last issue: June 2015

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.

Life Innovation

Nissha Printing Communications, Inc.

Information and Communication

Nitec Printing Co., Ltd.

Information and Communication

Nissha F8, Inc.

Information and Communication

M crossing Co., Ltd.

Others105

CSR Report 2016

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

Nissha Europe GmbH

Industrial Materials, Devices

Nissha Luxembourg Holdings S.a r.l

Industrial Materials

AR Metallizing N.V.

Industrial Materials

ARM Holding S.r.l.

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

Variations in Scope of Reporting
Changes in Nissha Group companies in fiscal year 2016 and their impact on the scope of reporting are given in
the table below.

Date

Contents

Impact on scope of reporting

Nissha Printing Communications,
Inc. was established (took over
April 2015

the Information and

Minor

Communication business in July2015)
CSR Report 2016 contains
H.I.G. Luxembourg Holdings 28
S.a r.l was acquired as a
subsidiary (currently Nissha
August 2015

Luxembourg Holdings S.a r.l.)along with its business company
AR Metallizing N.V. and its groupcompanies

information on work­related
accidents at AR Metallizing N.V.
and its group companies between
December 2015 and March 2016.
Information related to theenvironment will be compiled
starting with FY2017 results andpresented in CSR Report 2017(scheduled).

Editorial Policy

106

CSR Report 2016

December 2015

Malaga Produtos Metalizados

Information on Malaga Produtos

Ltda. was acquired through AR

Metalizados will be compiled

Metalizing N.V. and ARM

starting with FY2017 results andEmbalagens Ltda.

presented in CSR Report 2017(scheduled).

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://www.nissha.com/english/inquiry.html

Editorial Policy

107

CSR Report 2016

GRI Content Index
The Nissha CSR Report 2016 conforms to the core items of the GRI G4 Sustainability Reporting Guidelines.
The comparison table of GRI Guidelines (G4) items and our reporting are given below.

General Standard Disclosures

Location in CSR report

Pages onPDF

Strategy and Analysis
a. Provide a statement from the most senior decision­maker of the organization (such as
G4­1CEO, chair, or equivalent senior position) about the relevance of sustainability to the

CEO Message

2­3

CEO Message

2­3

Nissha’s CSR Materiality

6­8organization and the organization’s strategy for addressing sustainability.

G4­2a. Provide a description of key impacts, risks, and opportunities.

Organizational Profile
G4­3

a. Report the name of the organization.

Company Outline

97­98

G4­4

a. Report the primary brands, products, and services.

What's Nissha?

99­104G4­5

a. Report the location of the organization’s headquarters.

Company Outline

97­98

Nissha Group96

Company Outline

97­98

What's Nissha?

99­104Company Outline

97­98

What's Nissha?

99­104

a. Report the number of countries where the organization operates, and names of countries
G4­6

where either the organization has significant operations or that are specifically relevant tothe sustainability topics covered in the report.

G4­7
G4­8

a. Report the nature of ownership and legal form.
a. Report the markets served (including geographic breakdown, sectors served, and typesof customers and beneficiaries).
a. Report the scale of the organization, including:・Total number of employees
・Total number of operations
G4­9・Net sales (for private sector organizations) or net revenues (for public sector
organizations)・Total capitalization broken down in terms of debt and equity (for private sector
organizations)

・Quantity of products or services provided
a. Report the total number of employees by employment contract and gender.
b. Report the total number of permanent employees by employment type and gender.
c. Report the total workforce by employees and supervised workers and by gender.
d. Report the total workforce by region and gender.
G4­10

e. Report whether a substantial portion of the organization’s work is performed by workers
who are legally recognized as self­employed, or by individuals other than employees or

Respect for Diversity >Composition of "Nissha People"

36­38

supervised workers, including employees and supervised employees of contractors.
f. Report any significant variations in employment numbers (such as seasonal variations in
employment in the tourism or agricultural industries).
G4­11

a. Report the percentage of total employees covered by collective bargaining agreements.

G4­12

a. Describe the organization’s supply chain.

GRI Content Index

Human Rights > Relationship with
Labor Union
Partnership with Our Suppliers

108

30­31
80­83

CSR Report 2016

a. Report any significant changes during the reporting period regarding the organization’s

G4­13size, structure, ownership, or its supply chain, including:

Editorial Policy > Variations in・Changes in the location of, or changes in, operations, including facility openings, closings,

Scope of Reporting

106­107and expansions

・Changes in the share capital structure and other capital formation, maintenance, andalteration operations (for private sector organizations)

Partnership with Our Suppliers >・Changes in the location of suppliers, the structure of the supply chain, or in relationships

Expansion of Our Supply Chain75

with suppliers,including selection and termination
Commitments to External Initiatives
Corporate Governance > Risk
G4­14

a. Report whether and how the precautionary approach or principle is addressed by theorganization.

Management
Environmental Policy andManagement Structures

G4­15

a. List externally developed economic, environmental and social charters, principles, orother initiatives to which the organization subscribes or which it endorses.

22­23

52­54

CEO Message

2­3

United Nations Global Compact

12

a. List memberships of associations (such as industry associations) and national orinternational advocacy organizations in which the organization:
G4­16

Along with Local Communities >・Holds a position on the governance body

Membership in Community

・Participates in projects or committees
・Provides substantive funding beyond routine membership dues

95

Organizations

・Views membership as strategic

Identified Material Aspects and Boundaries

G4­17

a. List all entities included in the organization’s consolidated financial statements or

Editorial Policy > Scope ofequivalent documents.

Reporting105

b. Report whether any entity included in the organization’s consolidated financial statements
or equivalent documents is not covered by the report.

Nissha Group90

Nissha’s CSR Materiality

6­8

Nissha’s CSR Materiality

6­8

a. Explain the process for defining the report content and the Aspect Boundaries.
G4­18

b. Explain how the organization has implemented the Reporting Principles for Defining
Report Content.

G4­19

a. List all the material Aspects identified in the process for defining report content.
a. For each material Aspect, report the Aspect Boundary within the organization, as follows:・Report whether the Aspect is material within the organization
・If the Aspect is not material for all entities within the organization (as described in G4­17),
select one of the following two approaches and report either:
G4­20

Editorial Policy > Scope ofReporting105– The list of entities or groups of entities included in G4­17 for which the Aspect is notmaterial or– The list of entities or groups of entities included in G4­17 for which the Aspects is
Nissha’s CSR Materiality

material

6­8・Report any specific limitation regarding the Aspect Boundary within the organizationa. For each material Aspect, report the Aspect Boundary outside the organization, as

G4­21

follows:

Editorial Policy > Scope of・Report whether the Aspect is material outside of the organization

Reporting

105

・If the Aspect is material outside of the organization, identify the entities, groups of entities
or elements for which the Aspect is material. In addition, describe the geographical location
where the Aspect is material for the entities identified

・Report any specific limitation regarding the Aspect Boundary outside the organization
G4­22

G4­23

a. Report the effect of any restatements of information provided in previous reports, and thereasons for such restatements.

Nissha’s CSR Materiality

6­8

Not applicable–

a. Report significant changes from previous reporting periods in the Scope and Aspect

Editorial Policy > Variations inBoundaries.

Scope of Reporting

106­107

Stakeholder Engagement
G4­24

GRI Content Index

a. Provide a list of stakeholder groups engaged by the organization.

109

Nissha's Stakeholders

8­9

CSR Report 2016

G4­25a. Report the basis for identification and selection of stakeholders with whom to engage.

Nissha's Stakeholders

8­9Nissha's Stakeholders

8­9Nissha's Stakeholders

8­9a. Report the organization’s approach to stakeholder engagement, including frequency ofG4­26

engagement by type and by stakeholder group, and an indication of whether any of theengagement was undertaken specifically as part of the report preparation process.
a. Report key topics and concerns that have been raised through stakeholder engagement,

G4­27

and how the organization has responded to those key topics and concerns, including
through its reporting. Report the stakeholder groups that raised each of the key topics andPartnership with Our Suppliers >concerns.

CSR Supplier Audits

G4­28

a. Reporting period (such as fiscal or calendar year) for information provided.

Editorial Policy > Period Covered

105

G4­29

a. Date of most recent previous report (if any).

Editorial Policy > Period Covered

105

G4­30

a. Reporting cycle (such as annual, biennial).

Editorial Policy > Period Covered

105

G4­31

a. Provide the contact point for questions regarding the report or its contents.

82­83

Report Profile

Editorial Policy > Publishing
Division and Contact for Inquiries

107

GRI Content Index
a. Report the ‘in accordance’ option the organization has chosen.
b. Report the GRI Content Index for the chosen option (see tables below).
G4­32c. Report the reference to the External Assurance Report, if the report has been externally

GRI Content Index

108­121assured. GRI recommends the use of external assurance but it is not a requirement to be ‘inaccordance’ with the Guidelines.
Assurance
a. Report the organization’s policy and current practice with regard to seeking external
assurance for the report.
b. If not included in the assurance report accompanying the sustainability report, report theG4­33

scope and basis of any external assurance provided.
c. Report the relationship between the organization and the assurance providers.

Assurance has not been sought forthe sustainability report.

–

d. Report whether the highest governance body or senior executives are involved in seeking
assurance for the organization’s sustainability report.

Governance
Governance Structure and Composition
a. Report the governance structure of the organization, including committees of the highest
G4­34

environmental and social impacts.
G4­35

Corporate Governance

16­23

CSR Management

5

CSR Management

5

CSR Management

5

governance body. Identify any committees responsible for decision­making on economic,

a. Report the process for delegating authority for economic, environmental and social topics
from the highest governance body to senior executives and other employees.
a. Report whether the organization has appointed an executive­level position or positions

G4­36

with responsibility for economic, environmental and social topics, and whether post holders
report directly to the highest governance body.

Corporate Governance > Nissha’s
Management and Businessa. Report processes for consultation between stakeholders and the highest governanceG4­37body on economic, environmental and social topics. If consultation is delegated, describe towhom and any feedback processes to the highest governance body.

17

Execution System
CSR Management
Human Rights > Relationship with
Labor Union

5
30­31

a. Report the composition of the highest governance body and its committees by:

・Executive or non­executive

Corporate Governance > Directors

・Independence

and the Board of Directors

・Tenure on the governance body
G4­38

GRI Content Index

17

・Number of each individual’s other significant positions and commitments, and the natureof the commitments

110

CSR Report 2016

・GenderRespect for Diversity >・Membership of under­represented social groups
・Competences relating to economic, environmental and social impacts

Composition of "Nissha People"

36­38

・Stakeholder representation
a. Report whether the Chair of the highest governance body is also an executive officer
G4­39(and, if so, his or her function within the organization’s management and the reasons for thisarrangement).

Corporate Governance > Directors
and the Board of Directors

17

a. Report the nomination and selection processes for the highest governance body and its

G4­40

committees, and the criteria used for nominating and selecting highest governance body

Corporate Governance > Directors

members, including:and the Board of Directors,

・Whether and how diversity is considered

Nomination and Remuneration

・Whether and how independence is considered

Committee, Audit and Supervisory

・Whether and how expertise and experience relating to economic, environmental and

Board Members and the Audit andsocial topics are consideredSupervisory Board

17-18

・Whether and how stakeholders (including shareholders) are involved"a. Report processes for the highest governance body to ensure conflicts of interest are
avoided and managed.
Report whether conflicts of interest are disclosed to stakeholders, including, as a minimum:
G4­41

・Cross­board membership

Corporate Governance > Directors
and the Board of Directors

・Cross­shareholding with suppliers and other stakeholders

17

・Existence of controlling shareholder
・ Related party disclosures"
Highest Governance Body’s Role in Setting Purpose, Values, and Strategy

a. Report the highest governance body’s and senior executives’ roles in the development,
G4­42

approval, and updating of the organization’s purpose, value or mission statements,
strategies, policies, and goals related to economic, environmental and social impacts.

Approach to CSR

4

CSR Management

5

Corporate Governance > Internal
Control System

20­22Highest Governance Body’s Competencies and Performance Evaluation
G4­43

a. Report the measures taken to develop and enhance the highest governance body’s
collective knowledge of economic, environmental and social topics.
a. Report the processes for evaluation of the highest governance body’s performance withrespect to governance of economic, environmental and social topics. Report whether such
evaluation is independent or not, and its frequency. Report whether such evaluation is aG4­44

self­assessment.
b. Report actions taken in response to evaluation of the highest governance body’s
performance with respect to governance of economic, environmental and social topics,
including, as a minimum, changes in membership and organizational practice.

Highest Governance Body’s Role In Risk Management
a. Report the highest governance body’s role in the identification and management ofApproach to CSR

4

CSR Management5

economic, environmental and social impacts, risks, and opportunities. Include the highest
G4­45

G4­46

governance body’s role in the implementation of due diligence processes.
b. Report whether stakeholder consultation is used to support the highest governancebody’s identification and management of economic, environmental and social impacts, risks,

Corporate Governance > Internaland opportunities.

Control System

a. Report the highest governance body’s role in reviewing the effectiveness of theApproach to CSR

4

CSR Management

5organization’s risk management processes for economic, environmental and social topics.
Corporate Governance > Internal
Control System

G4­47

a. Report the frequency of the highest governance body’s review of economic,

20­22

Approach to CSR

4

CSR Management

5

environmental and social impacts, risks, and opportunities.
Corporate Governance > Internal
Control System

GRI Content Index

20­22

111

20­22

CSR Report 2016

Highest Governance Body’s Role In Sustainability ReportingG4­48

a. Report the highest committee or position that formally reviews and approves theorganization’s sustainability report and ensures that all material Aspects are covered.

Nissha’s CSR Materiality

6­8

Approach to CSR

4

CSR Management

5

Highest Governance Body’s Role in Evaluating Economic, Environmental and Social Performance

G4­49

a. Report the process for communicating critical concerns to the highest governance body.

Corporate Governance > Internal
Control System
G4­50

a. Report the nature and total number of critical concerns that were communicated to thehighest governance body and the mechanism(s) used to address and resolve them.

CSR Management

20­22

5

Remuneration and Incentives"a. Report the remuneration policies for the highest governance body and senior executives
for the below types of remuneration:

・Fixed pay and variable pay:
– Performance­based pay

G4­51– Equity­based pay

Corporate Governance >– Bonuses

Nomination and Remuneration– Deferred or vested shares

Committee, Officers

・Sign­on bonuses or recruitment incentive payments

Remuneration, Remuneration of・Termination payments

Directors and Audit and・Clawbacks

Supervisory Board Members

18­19

・Retirement benefits, including the difference between benefit schemes and contribution
rates for the highest governance body, senior executives, and all other employees
b. Report how performance criteria in the remuneration policy relate to the highest
governance body’s and senior executives’ economic, environmental and social objectives."
Corporate Governance >G4­52

a. Report the process for determining remuneration. Report whether remuneration

Nomination and Remuneration

consultants are involved in determining remuneration and whether they are independent ofCommittee, Officers

management. Report any other relationships which the remuneration consultants have with

Remuneration, Remuneration of

the organization.

Directors and Audit and18­19

Supervisory Board Members
a. Report how stakeholders’ views are sought and taken into account regarding
G4­53

remuneration, including the results of votes on remuneration policies and proposals, if
applicable.
a. Report the ratio of the annual total compensation for the organization’s highest­paid

G4­54

individual in each country of significant operations to the median annual total compensation
for all employees (excluding the highest­paid individual) in the same country.
a. Report the ratio of percentage increase in annual total compensation for the

G4­55

organization’s highest­paid individual in each country of significant operations to the medianpercentage increase in annual total compensation for all employees (excluding the highest­
paid individual) in the same country.

Ethics and Integrity
G4­56

G4­57

a. Describe the organization’s values, principles, standards and norms of behavior such ascodes of conduct and codes of ethics.
a. Report the internal and external mechanisms for seeking advice on ethical and lawful
behavior, and matters related to organizational integrity, such as helplines or advice lines.

Approach to CSR

4Human Rights > Hotline

29

Human Rights > Hotline

29

a. Report the internal and external mechanisms for reporting concerns about unethical orG4­58

unlawful behavior, and matters related to organizational integrity, such as escalation throughline management, whistleblowing mechanisms or hotlines.

Indicators by Aspects

GRI Content Index

Location in CSR report

112

Pages onPDF

CSR Report 2016

Category: Economic
Aspect: Economic Performance
G4­DMA
G4­EC1G4­EC2Distribution of Added Value to

Direct economic value generated and distributed

Stakeholders

26

Financial implications and other risks and opportunities for the organization’s activities due
to climate change

G4­EC3Coverage of the organization’s defined benefit plan obligations

G4­EC4

Financial assistance received from government

Aspect: Market Presence
G4­DMA
G4­EC5G4­EC6

Ratios of standard entry level wage by gender compared to local minimum wage atsignificant locations of operation
Proportion of senior management hired from the local community at significant locations of

Respect for Diversity >operation

Composition of "Nissha People"

36­38

Aspect: Indirect Economic Impacts
G4­DMA
G4­EC7Development and impact of infrastructure investments and services supported

G4­EC8Significant indirect economic impacts, including the extent of impacts

Aspect: Procurement Practices
G4­DMA
G4­EC9Proportion of spending on local suppliers at significant locations of operation

Category: Environmental
Aspect: Materials
CSR Management
Environmental Policy andG4­DMAManagement Structures
Environmental Objectives andStatus of Achievement

G4­EN1

Materials used by weight or volume

G4­EN2

Percentage of materials used that are recycled input materials

Environmental Impact as a Resultof Business Operations

5
52­54

55­58

59­60

Aspect: Energy*
CSR Management
Environmental Policy andG4­DMAManagement Structures
Environmental Objectives andStatus of Achievement
Environmental Impact as a Resultof Business Operations

G4­EN3

52­54

55­58

59­60

Energy consumption within the organization
Prevention of Further Global
Warming

GRI Content Index

5

113

61­64

CSR Report 2016

G4­EN4

Energy consumption outside of the organization

G4­EN5

Energy intensity

G4­EN6

Reduction of energy consumption

G4­EN7

Reductions in energy requirements of products and services

Prevention of Further Global
Warming61­64

Aspect: Water
CSR Management
G4­DMA

Environmental Policy andManagement Structures

G4­EN8

Total water withdrawal by source

G4­EN9Water sources significantly affected by withdrawal of water

G4­EN10Percentage and total volume of water recycled and reused

Environmental Impact as a Resultof Business Operations

5
52­54

59­60

Aspect: Biodiversity
G4­DMA
G4­EN11

G4­EN12G4­EN13G4­EN14

Operational sites owned, leased, managed in, or adjacent to, protected areas and areas ofhigh biodiversity value outside protected areas
Description of significant impacts of activities, products, and services on biodiversity inprotected areas and areas of high biodiversity value outside protected areas
Habitats protected or restored
Total number of iucn red list species and national conservation list species with habitats inareas affected by operations, by level of extinction risk

Aspect: Emissions*
CSR Management
Nissha's Stakeholders > External
Assessment
G4­DMA

Environmental Policy andManagement Structures
Environmental Objectives andStatus of Achievement

G4­EN15

Direct greenhouse gas (GHG) emissions (scope 1)

G4­EN16

Energy indirect greenhouse gas (GHG) emissions (scope 2)

G4­EN17

Other indirect greenhouse gas (GHG) emissions (scope 3)

Environmental Impact as a Resultof Business Operations
Prevention of Further Global
Warming

5
10­11

52­54

55­58

59­60

61­64

Prevention of Further Global
Warming > Initiative in Scope 3

63­64

Management
G4­EN18

Greenhouse gas (GHG) emissions intensity

G4­EN19

Reduction of greenhouse gas (GHG) emissions

G4­EN20

Emissions of ozone­depleting substances (ODS)

G4­EN21

NOx, SOx, and other significant air emissions

Prevention of Further Global
Warming61­64

Aspect: Effluents and Waste*

GRI Content Index114

CSR Report 2016

CSR Management
Nissha's Stakeholders > External
Assessment
G4­DMA

Environmental Policy andManagement Structures
Environmental Objectives andStatus of Achievement

G4­EN22

Environmental Impact as a Result

Total water discharge by quality and destinationof Business Operations
Environmental Impact as a Resultof Business Operations

G4­EN23

10­11

52­54

55­58

59­60

59­60

Total weight of waste by type and disposal method
Status of Waste Generation at
Bases

G4­EN24

5

71­73

Total number and volume of significant spills
Weight of transported, imported, exported, or treated waste deemed hazardous under the

G4­EN25

terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste
shipped internationally

G4­EN26

Identity, size, protected status, and biodiversity value of water bodies and related habitats
significantly affected by the organization’s discharges of water and runoff

Aspect: Products and Services
G4­DMA
G4­EN27

Extent of impact mitigation of environmental impacts of products and services

G4­EN28

Percentage of products sold and their packaging materials that are reclaimed by category

Aspect: Compliance*
CSR Management
Environmental Policy andG4­DMA

G4­EN29

Management Structures

Monetary value of significant fines and total number of non­monetary sanctions for non­compliance with environmental laws and regulations

5
52­54

Corporate Ethics and Compliance24­25

Not applicable–

CSR Management

5

Aspect: Transport*
G4­DMA

G4­EN30

Significant environmental impacts of transporting products and other goods and materials
for the organization’s operations, and transporting members of the workforce

Prevention of Further Global
Warming > Initiative in Scope 3

63­64

Management

Aspect: Overall
G4­DMA
G4­EN31

Total environmental protection expenditures and investments by type

Aspect: Supplier Environmental Assessment*
Partnership with Our Suppliers >G4­DMA

Basic Purchasing Policy, CSR

80­83

Supplier AuditsPartnership with Our Suppliers >G4­EN32

Percentage of new suppliers that were screened using environmental criteria

Basic Purchasing Policy, CSR

80­83

Supplier Audits

GRI Content Index

115

CSR Report 2016

G4­EN33

Significant actual and potential negative environmental impacts in the supply chain andactions taken

Aspect: Environmental Grievance Mechanisms
G4­DMA
G4­EN34

Number of grievances about environmental impacts filed, addressed, and resolved throughformal grievance mechanisms

Category: Social
Sub­Category: Labor Practices and Decent Work
Aspect: Employment*
G4­DMA
G4­LA1G4­LA2

CSR Management

5

Total number and rates of new employee hires and employee turnover by age group, genderand region
Benefits provided to full­time employees that are not provided to temporary or parttime
employees, by significant locations of operation
Support for Diverse Work Styles >G4­LA3Return to work and retention rates after parental leave, by gender

Status of Major Long­term Leave

44­45

and Time Taken Off from Work
Aspect: Labor/Management Relations
CSR Management
G4­DMA

Human Rights > Relationship with
Labor Union

G4­LA4

Minimum notice periods regarding operational changes, including whether these are

Human Rights > Relationship withspecified in collective agreements

Labor Union

5
30­31

30­31

Aspect: Occupational Health and Safety*
CSR Management
Nissha's Stakeholders > External
Assessment
G4­DMA

5
10­11

Safety and Health > Occupational
Safety and Health Policy / Safety
and Health Objectives, Safety and

47­48

Health Management System /Safety and Health Subcommittee
G4­LA5G4­LA6Percentage of total workforce represented in formal joint management–worker health andsafety committees that help monitor and advise on occupational health and safety programs
Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, andSafety and Health > Occurrence of

total number of work­related fatalities, by region and by genderWork­related Accidents

G4­LA7

Workers with high incidence or high risk of diseases related to their occupation

G4­LA8

Health and safety topics covered in formal agreements with trade unions

48­49

Aspect: Training and Education*
Human Resources Development >G4­DMA

Human Resources Development

33

PolicyHuman Resources Development >G4­LA9Average hours of training per year per employee by gender, and by employee category

Training Programs in Fiscal Year

35

2016

GRI Content Index

116

CSR Report 2016

G4­LA10

Programs for skills management and lifelong learning that support the continued
employability of employees and assist them in managing career endings

G4­LA11Percentage of employees receiving regular performance and career development reviews,

Human Rights > Fair Evaluation

by gender and by employee category

and Treatment29­30

Aspect: Diversity and Equal Opportunity*
CSR Management5

Respect for Diversity

36­40

G4­DMA

Composition of governance bodies and breakdown of employees per employee category
G4­LA12according to gender, age group, minority group membership, and other indicators ofdiversity

Respect for Diversity >Composition of "Nissha People"

36­38

Aspect: Equal Remuneration for Women and Men
G4­DMA
G4­LA13

Ratio of basic salary and remuneration of women to men by employee category, by

Human Rights > Wagesignificant locations of operation

Management30

Aspect: Supplier Assessment for Labor Practices*
Partnership with Our Suppliers >G4­DMA

Basic Purchasing Policy, CSR

80­83

Supplier AuditsPartnership with Our Suppliers >G4­LA14

Percentage of new suppliers that were screened using labor practices criteria

Basic Purchasing Policy, CSR

80­83

Supplier Audits
G4­LA15Significant actual and potential negative impacts for labor practices in the supply chain andInitiatives Related to Conflictactions taken

Minerals

84

Aspect: Labor Practices Grievance Mechanisms
CSR Management
G4­DMA

Human Rights > Relationship with
Labor Union

G4­LA16

Number of grievances about labor practices filed, addressed, and resolved through formal
grievance mechanisms

5
30­31

Human Rights > Hotline

29

CSR Management

5

Sub­Category: Human Rights
Aspect: Investment
G4­DMA
G4­HR1

Total number and percentage of significant investment agreements and contracts that
include human rights clauses or that underwent human rights screening
Total hours of employee training on human rights policies or procedures concerning aspects

G4­HR2of human rights that are relevant to operations, including the percentage of employees
trainedAspect: Non­discrimination*

Human Rights > Basic Policy on

G4­DMA

Labor and Human Rights, Building
and Operation of a Management

28­29

System
G4­HR3

Total number of incidents of discrimination and corrective actions taken

Not applicable–

Aspect: Freedom of Association and Collective Bargaining

GRI Content Index117

CSR Report 2016

CSR Management

5

Human Rights > Basic Policy on

G4­DMA

Labor and Human Rights, Building
and Operation of a Management

28­29

SystemHuman Rights > Relationship withOperations and suppliers identified in which the right to exercise freedom of association and
G4­HR4collective bargaining may be violated or at significant risk, and measures taken to support
these rights

Labor Union

30­31

Partnership with Our Suppliers >Basic Purchasing Policy, CSR

80­83

Supplier Audits
Aspect: Child Labor
CSR Management

5

Human Rights > Basic Policy on

G4­DMA

Labor and Human Rights, Building
and Operation of a Management

28­29

SystemHuman Rights > Basic Policy on
Labor and Human Rights
G4­HR528

Operations and suppliers identified as having significant risk for incidents of child labor, andmeasures taken to contribute to the effective abolition of child labor

Partnership with Our Suppliers >Basic Purchasing Policy, CSR

80­83

Supplier Audits
Aspect: Forced or Compulsory Labor*
CSR Management

5

Human Rights > Basic Policy on

G4­DMA

Labor and Human Rights, Building
and Operation of a Management

28­29

SystemHuman Rights > Basic Policy on
Operations and suppliers identified as having significant risk for incidents of forced or
G4­HR6compulsory labor, and measures to contribute to the elimination of all forms of forced orcompulsory labor

Labor and Human Rights

28

Partnership with Our Suppliers >Basic Purchasing Policy, CSR

80­83

Supplier Audits
Aspect: Security Practices
G4­DMA
G4­HR7

Percentage of security personnel trained in the organization’s human rights policies orprocedures that are relevant to operations

Aspect: Indigenous Rights
G4­DMA
G4­HR8

Total number of incidents of violations involving rights of indigenous peoples and actions
taken

Aspect: Assessment
G4­DMA
G4­HR9CSR Management
Total number and percentage of operations that have been subject to human rights reviews

Human Rights > Relationship withor impact assessments

Labor Union

5
30­31

Aspect: Supplier Human Rights Assessment*
Partnership with Our Suppliers >Basic Purchasing Policy, CSR

G4­DMAGRI Content Index

118

80­83

CSR Report 2016

Supplier AuditsPartnership with Our Suppliers >G4­HR10Percentage of new suppliers that were screened using human rights criteria

Basic Purchasing Policy, CSR

80­83

Supplier Audits
G4­HR11Significant actual and potential negative human rights impacts in the supply chain andInitiatives Related to Conflictactions taken

Minerals

84

Aspect: Human Rights Grievance Mechanisms
G4­DMA
G4­HR12CSR Management
Number of grievances about human rights impacts filed, addressed, and resolved through

Human Rights > Hotline,

formal grievance mechanisms

Harassment Help Desk

5
29

Sub­Category: Society
Aspect: Local Communities
G4­DMA
G4­SO1G4­SO2

Percentage of operations with implemented local community engagement, impact
assessments, and development programs
Operations with significant actual and potential negative impacts on local communities

Aspect: Anti­corruption*
CSR Management

5

Corporate Ethics and Compliance

24­25

G4­DMA

G4­SO3

Total number and percentage of operations assessed for risks related to corruption and thesignificant risks identified
Initiatives Related to Anti­
corruption

G4­SO4

Communication and training on anti­corruption policies and procedures

85

Corporate Ethics and Compliance> Promotion Structure and24­25

Initiatives
G4­SO5

Confirmed incidents of corruption and actions taken

Aspect: Public Policy
G4­DMA
G4­SO6

Total value of political contributions by country and recipient/beneficiary

Aspect: Anti­competitive Behavior
CSR Management

5

Corporate Ethics and Compliance24­25

CSR Management

5

Corporate Ethics and Compliance24­25

Not applicable–

G4­DMA

G4­SO7

Total number of legal actions for anti­competitive behavior, anti­trust, and monopoly
practices and their outcomes

Aspect: Compliance*

G4­DMA

G4­SO8

Monetary value of significant fines and total number of non­monetary sanctions for non­compliance with laws and regulations

Aspect: Supplier Assessment for Impacts on Society*
Partnership with Our Suppliers >GRI Content Index

119

CSR Report 2016

G4­DMA

Basic Purchasing Policy, CSR

80­83

Supplier AuditsPartnership with Our Suppliers >G4­SO9Percentage of new suppliers that were screened using criteria for impacts on society

Basic Purchasing Policy, CSR

80­83

Supplier Audits
G4­SO10Significant actual and potential negative impacts on society in the supply chain and actions

Initiatives Related to Conflict

taken

Minerals

84

Aspect: Grievance Mechanisms for Impacts on Society
G4­DMA
G4­SO11

Number of grievances about impacts on society filed, addressed, and resolved throughformal grievance mechanisms

Sub­Category: Product Responsibility
Aspect: Customer Health and Safety
CSR Management
Nissha's Stakeholders > External
G4­DMA

Assessment
Consumer Issues > Quality and
Safety of Products

G4­PR110­1190Percentage of significant product and service categories for which health and safety impacts
are assessed for improvement
Total number of incidents of non­compliance with regulations and voluntary codes

G4­PR25concerning the health and safety impacts of products and services during their life cycle, by
type of outcomes

Consumer Issues > Quality and
Safety of Products

90

Aspect: Product and Service Labeling
CSR Management

5

Consumer Issues > Quality Policy,

G4­DMA

Quality Management System

87

(QMS)
Type of product and service information required by the organization’s procedures for
G4­PR3product and service information and labeling, and percentage of significant product andservice categories subject to such information requirements

G4­PR4G4­PR5

Total number of incidents of non­compliance with regulations and voluntary codes
concerning product and service information and labeling, by type of outcomes
Results of surveys measuring customer satisfaction

Aspect: Marketing Communications
CSR Management

5

Corporate Ethics and Compliance24­25

CSR Management

5G4­DMA

G4­PR6

Sale of banned or disputed products
Total number of incidents of non­compliance with regulations and voluntary codes

G4­PR7concerning marketing communications, including advertising, promotion, and sponsorship,by type of outcomes

Aspect: Customer Privacy*

Nissha's Stakeholders > External
Assessment

GRI Content Index

120

10­11

CSR Report 2016

G4­DMA

Initiatives Related to Information
Security > Information Security
Policy, Information Security

75­76

Management Structure

G4­PR8

Total number of substantiated complaints regarding breaches of customer privacy andlosses of customer data

No complaint has been reported.

Aspect: Compliance*
CSR Management

5

Corporate Ethics and Compliance

24­25

G4­DMA

G4­PR9

Monetary value of significant fines for non­compliance with laws and regulations concerning

Consumer Issues > Quality andthe provision and use of products and services

Safety of Products

90*Aspects identified as material issues

GRI Content Index

121

CSR Report 2016