CSR 2014

Sustainability

CEO Message

2

Nissha's CSR
Approach to CSR
United Nations Global Compact

45
8

Organizational GovernanceCorporate GovernanceCorporate Ethics and Compliance
Distribution of Added Value to Stakeholders

9
10
14
16

Human Rights

17

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

19
20
23
25
29

The Environment
Policy and Management Structures
Objectives and Status of Achievement
Impact as a Result of Business Operations
Prevention of Further Global Warming
Waste Management
Monitoring and Prevention of Pollution
Status of Waste Generation at Bases

33
34
37
40
42
45
47
50

Fair Operating Practices
Initiatives Related to Information Security
Trade Management
Initiatives Related to Intellectual Property
Partnership with Our Suppliers
Initiatives Related to Conflict Minerals

53
54
56
58
60
63

Consumer Issues

65

Community Involvement and Development

69

Company Outline

71

Editorial Policy

74

GRI Content Index

76

1

CSR Report 2014

CEO Message
Status of Nissha Business
After three years of stagnant business performance since fiscal year 2011, resulting first fromchanges in the market environment due to the global financial crisis of 2008 and then from thehistorically high yen, Nissha returned to the black in fiscal year 2014 with a significant 24%
increase in net sales compared to the previous year thanks to the release of competitive new
products. In context, however, our offerings rely heavily on the consumer electronics industry
marked by steep fluctuations in demand, and we recognize the urgent need to build a morebalanced market portfolio in the near future. “Develop cutting-edge printing technologies and create
an array of exceptional products that fundamentally redefines value for our customers”—we at
Nissha are making company-wide efforts to realize this vision encapsulated in our Fourth Mediumterm Business Plan that started in fiscal year 2013.
Growing with the Expansion of Printing Technologies
Nissha started off as a printing company in Kyoto in
October 1929, with a few printing machines in thehome of our founder. In the course of our 85-yearlong history since, we aspired to expand beyond
traditional printing on paper into new fields likedecorating plastic products and creating touch
panels. By offering unique solutions based on printing
technologies, we achieved growth in the global
market.
In the backdrop of this growth is the Nissha spirit, or
our DNA, of doing what no other company can doand printing on everything but water and air. Anotherkey to our growth is that we have always lent our ears
At the Main Hall, where the Museum of Printing
to the voices of our stakeholders and aimed to create
Culture and History placed
products needed by society. True to our Corporate
Mission, we are “committed to pursuing a mutually trustful co-existence with society through ourbusiness activities utilizing a unique technology development, based on printing as a core.”
Aiming to be a Company Needed by Society
In expanding our business domains in future, we at Nissha are working to create solutions to issues
in three target areas: information-oriented society, lifestyle support, and sustainable society. We
believe a company’s business activities must contribute to economic growth and at the same timepresent social value. Further growth at Nissha depends on our identifying the changes in society’s
needs and creating value that leads to a solution to society’s issues.
The growth of employees is the driving force for the growth of the company. We at Nissha believe
our employees are our most important management resources, and aim to achieve growth for boththe company and our employees. To this end, in fiscal year 2014, we established Nissha Academy,
an in-house institute for fortifying advanced, specialized development of human resources. While
we have always provided our employees with various opportunities to foster practical knowledge,
Nissha Academy reorganizes these programs into a selective advanced training system. The
academy also represents the fulfillment of my decade-long ambition. I look forward to it producing
human resources who can play leading roles in a broad range of fields and drive the expansion of
our business at Nissha.
CEO Message

2

CSR Report 2014

Reinforcing our foundation from a global perspective
Corporate social responsibility, or the concept of a company meeting the demands andexpectations placed on it by society, is increasingly crucial amid the progress of globalization inrecent years. We at Nissha believe it is important to embrace and deal with this external movement
both to avoid damage to and to continuously enhance our corporate value.
In April 2012, we joined the United Nations Global Compact and declared our commitment in theareas of human rights, labor, the environment, and anti-corruption. And in June 2014, we drew up a
new Basic Policy on Labor and Human Rights with the aim of adhering to international laws andnorms regarding human rights and labor standards, and striving to make a continuous
improvement.
Having obtained approval at the general shareholders’ meeting also in June 2014, our sevenmember Board of Directors now includes three outside directors (for a share of 43%). One newly
selected outside director is Nissha’s first woman board member. We aim to turn diversity in theboardroom into an opportunity to promote diversity in the workplace and improve the company’svitality.
Finally, we have embarked to comply with the code of the Electronic Industry Citizenship Coalition(EICC). We hope to continue stepping up our efforts in the areas of labor, health and safety,
environmental conservation, and ethics hand in hand with our customers and suppliers.
Message to Our Stakeholders
To be a company needed by society, it is important to engage in dialogue with a broad range ofstakeholders. We at Nissha strive to listen to our stakeholders at all times and reflect your voices inour business activities. CSR Report 2014, which introduces our initiatives in line with the coresections of ISO 26000, is also intended to be a communication tool. We hope you will give it a readand offer us your candid thoughts and advice.
We look forward to your further guidance and encouragement in the future.
June 2014
Junya Suzuki
President and CEO
Representative Director of the Board

CEO Message

3

CSR Report 2014

Nissha's CSR
Approach to CSR

United Nations Global Compact

This section explains Nissha’s approach to
CSR and our stakeholders, and introduces
awards received.

Nissha's CSR

We joined the United Nations Global
Compact in April 2012.

4

CSR Report 2014

Approach to CSR
Nissha's CSR
We at Nissha are "committed to pursuing a mutually trustful co-existence with society through ourbusiness activities utilizing a unique technology development, based on Printing as a core." Inkeeping with this Corporate Mission, we believe that our corporate social responsibility is to meetsociety's needs and aim for both the growth of the company and the enrichment of society bybuilding on our core competency: printing technology.
To this end, it is crucial that we listen to and collaborate with our stakeholders.
We identify the stakeholders that support Nissha operations as Customer, Shareholder, Supplier,Society, and Employee. Together with these stakeholders, we strive to enrich society from theperspectives of preserving the Earth's environment and supporting future generations.

Nissha's Circle of Trust

Nissha’s Stakeholders
Customer
We approach issues seriously from the standpoint of our customers, solve problems with ourcustomers, and offer optimum solutions. We have in place a quality management system, andseek to produce quality that meets our customers’ expectations.
Shareholder
We disclose corporate information in a swift, timely manner with consideration to fairness andcontinuity. We promote IR activities as a means of two-way communication to build relationshipsof trust with our investors and shareholders.
Supplier
We strive to build partnerships of co-existence and co-prosperity with our suppliers, and throughmutual integrity to create corporate value. We seek to evaluate our suppliers impartially, fairly,
and comprehensively at all times, and to promote CSR procurement.

Approach to CSR

5

CSR Report 2014

6RFLHW\
We aim for widespread “Co-Existence” based on relationships of mutual trust with society.eW
promote communication with local communities not only to fulfill our basic responsibilities as acorporation but also to be a company that is needed by society.
Employee
We pursue the creation of safe, comfortable workplaces and offer support for diverse work
styles, respecting our employees’ human rights from a global perspective. We believe that ouremployees are our most important management assets, and aim to achieve growth for both thecompany and our employees.

External Assessment
Nitec Industries, Inc. Tsu Factory Wins Health Award
In June 2013, Nitec Industries, Inc. (NII) Tsu Factory received a Health Award from the Tsu Labor
Standards Association in the FY2013 Tsu-Suzuka-Kameyama Area Industrial Safety and HealthCompetition. The award recognized our deep awareness of the importance of occupational health,our vigorous engagement in safety and health activities, and our active cooperation in theassociation’s operations.
Since it commenced operations in April 2010, NII Tsu Factory has had no accident that required
four or more days of leave as of the end of March 2014. It is working to maintain the employees’
health and create accident-free, comfortable workplaces through efforts such as monthly meetingsof the Safety and Health, Fire Prevention, and Traffic Safety Committee, 6S* patrols of all
workplaces by the workers, and the organization of mental health training sessions.
*6S: 1. Sort, 2. Set in order, 3. Shine, 4. Standardize, 5. Sustain, 6. Safety

Recipient of the 2013 Nikkei Superior Products & Services Awards
The capacitive-type touch panel, a core product of Nissha Printing
Co., Ltd., won a Nikkei Business Daily Award for Superiority at the2013 Nikkei Superior Products & Services Awards presented by
Nikkei Inc. to commend some 40 new products and services selectedfrom among those featured in four of its publications*1 within the year
and judged based on six criteria*2.
The award-winning capacitive-type touch panel is a unique productcombining a film material lighter than glass with the photolithography process*3 that makes it
possible to print finer lines on the electric circuit. The light, thin touch panel meets customer needs
worldwide by contributing to slimmer, more lightweight electronic devices such as smartphones andtablet devices.

Approach to CSR

6

CSR Report 2014

*1. The Nikkei, Nikkei Business Daily, Nikkei MJ, and Nikkei Veritas*2. Excellence in technology development, cost effectiveness, contribution to business performance, growthpotential, originality, and impact on industry and society*3. A technology that forms high-precision patterns by exposing the surface of a substance coated withphotosensitive material (resist) to intensive light. Photolithography makes full use of the photoengraving
technology we have long cultivated as a printing company.
Capacitive-type touch panel, won a Nikkei Business Daily
Award for Superiority at the 2013 Nikkei Superior Products& Services Award

Approach to CSR

7

CSR Report 2014

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 anti-corruption advocated by the United Nations. Its purpose
is to have various companies show responsible and creative
leadership, and thereby act as good members of society andparticipate in creating a global framework for sustainable growth.

The United Nations Global Compact's Ten Principles
Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed
human rights; 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 recognitionof the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment and occupation.
Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility; andPrinciple 9: encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion andbribery.

Website: United Nations Global CompactKWWSVZZZXQJOREDOFRPSDFWRUJ

United Nations Global Compact

8

CSR Report 2014

Organizational GovernanceCorporate GovernanceCorporate Ethics and Compliance

We work to enhance corporate governanceso as to fulfill our social responsibilities as acorporation and conduct fair businessactivities, and thereby promote widespreadco-existence based on relationships of mutual
trust with society.

Nissha’s executives and employees areworking to thoroughly implement corporate
ethics and compliance based on 13 important
points and a common promotion structure forall bases.

Distribution of Added Value to
Stakeholders
This section sums up our distributions ofadded value to stakeholders in fiscal year
2014.

Organizational Governance9

CSR Report 2014

Corporate GovernanceApproach to Corporate Governance
Our Corporate Mission involves the pursuance of a mutually trustful co-existence with society
through the fulfillment of our social responsibilities as a corporation and the implementation of fairbusiness activities. In order to achieve this, we believe that the enhancement of corporate
governance in accordance with laws and social ethics is an absolute necessity.
We have in place a variety of regulations with regard to compliance, including the Guideline of the
Corporate Ethics and Compliance as codes of conduct for the observance of laws, regulations,bylaws, and social norms. In addition, we define our Shared Values and have established policies
such as a Code of Conduct, an Environmental Policy, and an Information Security Policy in order toachieve co-existence with all the stakeholders of Nissha Group.
We promote the enhancement of our corporate governance structure through the attendance ofoutside directors and outside corporate auditors in meetings of the Board of Directors.
Overview of Corporate Governance Structure
Directors and the Board of Directors
Our Board of Directors consists of seven members including three outside directors. The term ofoffice is one year, which allows for flexibility in responding to changes in the business environment
and for increased transparency of management responsibilities each fiscal year. The Board of
Directors holds regular meetings once a month and extraordinary meetings when necessary, toreceive reports on the execution of business activities and make important decisions regarding
business plans and policies. The president and CEO chairs the meetings.
Corporate Officer System
We adopt a corporate officer system to segregate the Board of Directors’ strategy-formulating andmanagement oversight functions from the corporate officers’ day-to-day business executionfunction. The term of office is one year. Corporate officers hold regular meetings called Monthly
Business Review (MBR) to report on the status of business activities and to review progress andadherence to plans.
Corporate Auditors and the Board of Corporate Auditors
Our Board of Corporate Auditors consists of four members including two outside corporate
auditors. The Board determines auditing policies and the assignment of auditing duties, and basedon such determination, performs audits on the legality and appropriateness of duties executed bydirectors. Corporate auditors monitor and verify that directors are performing their duties inaccordance with the internal control system, and monitor the independence of accounting auditors
and progress in the execution of their duties. The Board has regular meetings with related divisions
or entities, such as president and CEO, accounting auditors, and internal audit division enhancing
close cooperation.
We established a Corporate Auditors’ Office which belongs to the Board of Corporate Auditors andis independent of directors.
Role and Function of Outside Directors and Outside Corporate Auditors
The role of outside directors is to enhance the function of supervising the appropriate execution ofduties by directors. The role of outside corporate auditors is to ensure the objectivity andCorporate Governance

10

CSR Report 2014

effectiveness of audits. By meetings of attending Board of Directors’ and offering their opinions,outside directors and outside corporate auditors also reinforce the corporate governance structure.
By sustaining this corporate governance structure and ensuring that it functions, we strive toenhance management efficiency, strengthen management monitoring functions, and guarantee
thorough compliance with laws and regulations.
Remuneration for Directors and Corporate Auditors
Remuneration for directors and corporate auditors is set within the upper limit of total remuneration
approved at the general meeting of shareholders (an annual maximum total of 430 million yen for
directors and 50 million yen for corporate auditors).
Remuneration for directors consists of a basic compensation and bonus, the sums of which are
determined in accordance with a policy established by the Board of Directors. Basic compensationis set according to the scope of the role and position of each director, and finally determined bypresident and CEO based on an evaluation of the contribution and performance of the director.
Bonuses are determined by president and CEO and correspond to the degree of success inachieving performance targets based on business results (consolidated net sales, consolidated
operating income to sales ratio, performance of the business the director is responsible for, etc.). A
fixed sum is determined for outside directors, taking into account factors such as the businessexperience of each outside director.
Remuneration for corporate Auditors is determined by negotiation with corporate auditors.

Total Remuneration and Number of Board Members (FY2014)

Promotion of Diversity in the Boardroom
Having obtained approval at the general meeting of shareholders in June 2014, our seven-member
Board of Directors now includes three outside directors (ratio of outside directors: 43%). Throughthe change, we aim to maintain transparency in our management, reflect outside directors’ insight
into our business operations, and ultimately enhance long-term corporate value.In addition, ournewly selected outside director is Nissha’s first female board member. We hope to turn diversity inthe boardroom into an opportunity to promote diversity in the workplace and improve our vitality.
Internal Control System
We endeavor to enhance our corporate value by having in place an internal control system that
supports management in ensuring the legality, fairness, and efficiency of our business activities,
based on our Policy for Internal Control drawn up in accordance with the Companies Act and theOrdinance for Enforcement of the Companies Act. Under the direct control of president and CEO,
our internal audit-related division analyzes and evaluates the internal control system and theprogress of its operation to offer recommendations for improvement toward enhancement.
Furthermore, we strive to strengthen corporate governance through a management systemrevolving around various committees, including the Corporate Ethics and Compliance Committee.
In response to the internal control reporting system introduced by the Financial Instruments andExchange Act, to ensure reliability of financial reports, we have established an internal control
system for the Nissha Group through which we submit assessment results in the form of internal
control reports to the Prime Minister of Japan, and disclose the contents to our shareholders andinvestors.
We establish the Disclosure Control Committee to ensure that corporate information is disclosed
fairly, promptly, and accurately in accordance with related laws and ordinances. It deliberates on
and determines important matters related to the disclosure of corporate information, and builds andoperates an appropriate disclosure structure.
Corporate Governance

11

CSR Report 2014

Risk Management
With a risk management policy in place to clarify our approach, we promote risk management tocounter or avoid risks that may have a significant impact on our business activities, and to be fully
prepared in the event an emergency does occur.
The Risk Management Committee, headed by the Executive Vice President in charge ofadministration, comprises the managers of each business unit and department. Having definedrisks that may have a significant impact on our business activities as “any thing or situation thathinders Nissha’s implementation of the Corporate Mission,” the committee works to ferret out allconceivable risks associated with business processes—including those related to disasters,
accidents, and compliance—and devise countermeasures for them. In fiscal year 2014, we
continued in our efforts to enhance our comprehensive risk management capabilities. In addition toincreasing the number of committee meetings from two to four times a year, we narrowed down our
selection of particularly significant risks to eight items, and strived to counter those risks andenhance our execution of the plan-do-check-act (PDCA) cycle. Our cross-organizational committee
and superintending divisions play a pertinent role in preventing and coping with risks related tocompliance, insider trading, product quality, environment, information security, safety and health,and trade management.
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, even in a serious interruption of business, we conduct BCP training aimed
at identifying risks and reviewing our business continuity plan (BCP) and related codes.
In fiscal year 2014, having been named head of the Kyoto City’s council on corporate measures forstranded commuters, we are deliberating on actions that businesses can take to help commuters
return home when public transportation is suspended in the event of a major disaster, andrecommending policies to Kyoto City. As an active participant in the council, we intend to continue
involving ourselves in related networks and building mechanisms for mutual cooperation to assist
stranded commuters.
Initiatives in Internal Auditing
The Internal Audit, to maintain impartiality and objectivity in its functions, serves as an independent
corporate staff organization in drawing up annual auditing plans, investigating whether businessactivities are carried out appropriately and efficiently, and offering advice and recommendations tointernal organizations. Furthermore, it conducts follow-up audits to confirm how each finding thathas 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 corporate auditors every two months to establish mutual cooperation with the Board of
Corporate Auditors.
With mergers between consolidated subsidiaries, operating audits in fiscal year 2014 focused on
the business activities of enduring companies (processes related to the management of fixed
assets, expenses, payroll, etc.) as well as processes related to the assessment of return on
investment, the streamlining of conference room use, and attendance management. The Internal
Control, as a third party, also performed an independent assessment of financial reporting-related
internal controls in response to the internal control reporting system prescribed by the Financial
Instruments and Exchange Act.

Corporate Governance

12

CSR Report 2014

Nissha’s Management and Business Execution System

Corporate Governance

13

CSR Report 2014

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, Code of Conduct, 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 are working to promote and thoroughly implement corporate ethics andcompliance.

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 Co-existence with the Stakeholders such as Customer, Shareholder,
Supplier, Society, and Employee.
3. We will immediately report and consult with supervisors or Nissha Hot-line in case we findthe 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

Corporate Ethics and Compliance Structure
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 intheir respective divisions but also implement corporate ethics and compliance throughorganizational management, serve as the contact for Corporate Legal Affairs groups responding toCorporate Ethics and Compliance

14

CSR Report 2014

specific cases, and even take on the role of consultant in their workplace.
We designate every October as corporate ethics and compliance month, during which we offergroup-wide training. In fiscal year 2014, the managers and group leaders led study sessions on twothemes—respect for human rights and appropriate handling of information—based on training
material incorporating the 13 important points.
For the prevention of insider trading, we cover regulations against insider training in our regulartraining programs in addition to educating employees through quarterly publications on our 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 withcompetitors.
Corporate Ethics and Compliance Structure

Corporate Ethics and Compliance15

CSR Report 2014

Distribution of Added Value to Stakeholders
Our fiscal year 2014 distribution of added value to stakeholders is given in the table below.

Distribution of Added Value to Stakeholders

Distribution of Added Value to Stakeholders

16

CSR Report 2014

Human Rights
Basic Policy on Labor and Human Rights
We have defined Nissha’s principles on labor and human rights in a basic policy toward realizing
our Corporate Mission of pursuing a “mutually trustful co-existence with society.” The policy has
been 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 "co-existence" with society, Nissha will observe
the international norms, laws and ordinances related to human rights and labor standards andwill make efforts to continually improve human rights and labor standards.
1. Child labor: We will prohibit child labor and also implement relief measures.
2. Forced labor: We will eliminate all forms of forced labor.
3. Health and safety: We will secure the health and safety of our employees and provide ahygienic workplace environment.
4. Freedom of association and the right to collective bargaining: We will guarantee the right toorganize and the right to collective bargaining.
5. Discrimination: We will not discriminate based on a person’s age, disability, ethnic group,
gender, marital status, nationality, political support, race, religion, sexual orientation,
pregnancy or membership in a union. We will also not be party to this.
6. Punishment: We will not perform physical punishment or mental or physical coercion andwe will not engage in verbal abuse.
7. Working hours: We will observe the laws, ordinances and labor agreements related toworking hours, rest breaks and holidays.
8. Remuneration: We will observe the laws and ordinances related to the payment ofappropriate wages.
June 16, 2014
Junya Suzuki
President and CEO
Representative Director of the Board
Nissha Printing Co., Ltd.

In April 2012, we joined the United Nations Global Compact, thereby declaring that we support andwill make continuous efforts to practice the initiative’s 10 principles in the areas of human rights,
labor, environment, and anti-corruption. Our commitment is set forth in our Corporate Ethics andCode of Conduct Manual, which cites “respect for human rights” as a key item. The contents areprovided in the Japanese, English, and Chinese languages, and distributed through regular study
sessions targeting all employees. After each training session, we collect signatures from ouremployees confirming that they understand and will base their conduct on the contents of themanual.

Human Rights

17

CSR Report 2014

Nissha Hotline
To minimize risks and promote ethical conduct and compliance, as well as to enable the company
to immediately verify facts, we have in place a system for internal reporting in the event of fraud,illegal activity, or unethical conduct by either an organization or an individual employee. The Nissha
Hotline, a dedicated telephone line, enables reporting from within the company and from outside.
Our Internal Reporting Code protects informers from any unfavorable treatment by either thecompany or other employees on account of their reporting. We also accept anonymous reports.
In fiscal year 2014, the Nissha Hotline was used eight times. The reports concerned mainly labor
management. We are working to enhance employee awareness of this Nissha Hotline through the
Corporate Ethics and Code of Conduct Manual as well as through our intranet and training, in orderto further reinforce corporate ethics and compliance.

Relationship with Labor Union
Nissha Printing Co., Ltd., has a solid relationship with the Nissha Labor Union*1, joined by
employees excluding managerial staff. It holds regular negotiations and discussions with the labor
union, specifically the Management Council meetings held every month to negotiate and discuss
employees’ labor conditions and to share information about the Nissha Group’s business
operations. In fiscal year 2013, the Nitec Industries Labor Union*2 was organized at affiliatedcompany Nitec Industries, Inc., also with which we are building an amicable relationship. The labor
contract confirms, “the Company and the Union shall respect one another’s position and maintain apeaceful relationship between labor and management as well as strive for the maintenance 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 agroup,” thereby guaranteeing basic labor rights for union members.
In fiscal year 2014, 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 and union, and build a sound relationship between labor andmanagement.
*1. As of the end of March 2014, the Nissha Labor Union has a membership of 910.
*2. As of the end of March 2014, the Nitec Industries Labor Union has a membership of 501.

Human Rights

18

CSR Report 2014

Labor Practices
Human Resources Development
We believe that our employees are our mostimportant management resource. We
promote comprehensive education with theaim of achieving growth for both theCompany and our employees.

Respect for Diversity
To grow as a global corporation, we respect
diverse work styles by diverse humanresources.

Support for Diverse Work Styles
We have many initiatives to support diverse
work styles for our employees to achieve theirwork-life balance, and help them to develop acareer path.

Labor Practices

Safety and HealthIn line with the Basic Policy on Safety and
Health, we work actively toward the creationof safe and comfortable work environments
and the sound mental and physical health of
employees.

19

CSR Report 2014

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

We at Nissha believe that our employees are our most important management resources. We areaiming to achieve 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 theskills and experience required to work at Nissha.
Approach to Human Resources Development
We at Nissha approach human resources development from the three areas of planned humanresource development, skill development, and career development. For each area, we aim topromote comprehensive education incorporating the perspectives of training system, on-the-job
training (OJT), medium- to long-term career path development, and human resource systems to
support these programs.

Human Resources Development Model

Planned human resource development
Implement planned development to foster and secure the human resources needed to achieve
the management 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.
Human Resources Development

20

CSR Report 2014

Career development
Support medium- to long-term career development and promote growth toward employees’
ideals. (Provide opportunities to recognize the importance of and pursue career development.)

Training System Model

Enhancement of Selective Human Resources Development
In fiscal year 2014, we established Nissha Academy, an in-house institute for fortifying advanced,
specialized development of human resources. While we continue to expand on our rank-specific,
theme-specific, and career design training programs, Nissha Academy employs a selective system
to provide advanced, specialized education in areas such as business administration andmanagement, and the management of technology.
In the first year of its establishment, Nissha Academy opened a Business School dedicated toteaching young employees the basics of business administration and management. The instructors
are officers and senior managers actually involved in business administration and management. In
addition to providing knowledge and skills in the classroom, practical training shows how these areused in real situations. After training is completed, the young employees are given positions
overseas or in a corporate strategy division. The plan is to offer them challenging experiences, andthereby foster them into human resources qualified to pursue careers in business administrationand management.
Nissha Academy is set to open a variety of other schools in the future. In fiscal year 2015, it plansto open a Management of Technology (MOT) School, which will develop human resources capableof linking technology with management to create new businesses.

Human Resources Development

21

CSR Report 2014

Company-wide Basic Education
While providing advanced, specialized selective education at Nissha Academy, we also continue tooffer our established educational programs. From fiscal year 2013 onward, we are focusing
particularly on basic education for all employees, and conducting company-wide training inaccounting and cost on a continuous basis. The aim of the program is to have employees gain anunderstanding of business figures, and perform their job always with an awareness of how theirwork reflects in these figures.
Starting in fiscal year 2015, we plan to offer basic education in quality control and improvement not
only to relevant employees, as in the past, but also to young and mid-career employees throughout
the company.
Internal Job Posting System
The Nissha Group introduced an internal job posting system in fiscal year 2012, in which thecompany posts specific job openings internally, and employees who meet the criteria apply for thejob of their own will. The system aims to provide employees with the opportunity to choose theirown career as well as appoint employees to positions that reflect their aptitude, and thereby
enhance our organizational strength. Employees who have transferred through the system areplaying an active role in their new division.
Status of utilization

Human Resources Development

22

CSR Report 2014

Respect for Diversity
To grow as a global corporation, the Nissha Group respects diverse work styles by diverse humanresources.

Composition of Nissha People
The diversity of the Nissha Group shows in our employee composition in terms of gender, age, andemployment status. More than one-fourth of our employees work at Nissha Group companies
outside Japan.
Employees of Nissha Printing*Directors include two outside directors.

Having obtained approval at the general shareholders’ meeting in June 2014, our seven-member
Board of Directors now includes three outside directors (for a share of 43%). One newly selected
outside director is also Nissha’s first woman board member. We aim to turn diversity in theboardroom into an opportunity to promote diversity in the workplace and improve the company’svitality.
Number of Nissha Group Employees*Figures exclude temporary employees.

Respect for Diversity

23

CSR Report 2014

Breakdown of Nissha Group Employees (as of the end of March 2014)
Composition by region

Composition by employment status

Percentage of Disabled People Employed at Major Group Companies
The Nissha Group periodically interviews people with disabilities and promotes their long-term
employment. We work to create jobs by preparing workplace environments for and spreading
understanding about the employment of people with disabilities.

*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

24

CSR Report 2014

Support for Diverse Work Styles
The Nissha Group has many initiatives to support diverse work styles and achieve work-lifebalance for employees.
Introduction of Flexible Work Hours
We introduced flexible work hours in fiscal year 2012, primarily in sales departments, as amechanism in which employees can voluntarily determine their own start and finish times of theworking day. The aims of the system include responding flexibly to the time difference between
Japan and overseas, to deadlines, and to the busy and slow hours of the working day, and enabling
employees to maintain harmony between work and life. In fiscal year 2014, we expanded thesystem to other departments such as technology and administration for the benefit of a larger
number of employees.
Promotion of the Use of Paid Leave
To promote the use of paid leave, from fiscal year 2012 onward we offer a winter vacation planningsystem in addition to the summer vacation planning system, and increased from one to two thenumber of days per year in which employees may request to take paid leave on their birthday, thatof a family member, or their wedding anniversary.
We also have in place a system in which employees may save up to 30 days of expired paid leave
to be used in the event of illness, either of employees or of a family member, and for child-rearing,family care, children’s school events, and volunteering and self-development activities.
Percentage of 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 improvetheir work process and the way they manage their time, and thereby achieve work-life balance.
Each month, departments that had a large amount of overtime work are questioned as to thecauses, future outlook, and physical condition of employees. The findings are reported to
management and the labor union, and furthermore reflected in personnel assignment decisions. In
fiscal year 2014, the amount of overtime work decreased by 14.0% compared to the previous year.

Support for Diverse Work Styles

25

CSR Report 2014

Child-rearing and Family Care Support
In our efforts in child-rearing and family care support, in fiscal year 2013 we extended the durationin which employees may shorten their work time for child-rearing to March 31 after a child turns 12
years old (from 10 years old before revision). We have also extended the number of hours in which
employees may shorten their work time during child-rearing, family care, and pregnancy to threehours (from two hours before revision), for support that exceeds statutory guidelines. Major childrearing and family support systems offered by the Nissha Group that exceed statutory guidelines
are given in the tables below.
Major child-rearing support systems* Statutory guidelines, as a rule, require working days to be shortened to six hours for child-rearing. We
allow employees who normally work eight-hour days to shorten their work time by three hours to five-hour
days.

Major family care support systems

In 2013, we received “Kurumin” certification for the second consecutive
term, following 2009.
* 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 and implement a medium-term action plan, andsubmit it to their prefectural labor bureau.
Kurumin Mark

Status of Major Long-term Leave and Time Taken Off from Work (Nissha Group in Japan)
The number of employees who used child-rearing leave, worked shorter hours for child-rearing,and took days off for child nursing are given in the graphs below. The numbers are generally on therise, and the male employees’ uses are found on a continuing basis.
Number of employees who used child-rearing leave

Support for Diverse Work Styles

26

CSR Report 2014

Number of employees who worked shorter hours for child-rearing

Number of employees who took days off for child nursing

Reinstatement rate after child-rearing leave: 100%
Reinstatement rate = Number of employees reinstated after child-rearing leave in the current fiscal year ÷
Number of employees expected to be reinstated after child-rearing leave in the current fiscal year x 100

Retention rate after child-rearing leave (1 year): 85.7%
Retention rate = Number of employees remaining on March 31 the current fiscal year after being reinstatedafter child-rearing leave in the previous fiscal year ÷ Number of employees reinstated after child-rearing
leave in the previous fiscal year

The number of employees who used family care leave, worked shorter hours for family care, andtook days off for family care are given in the table below. We are making efforts to raise employee
awareness of our systems toward supporting diverse work styles in an aging society.

Support for Diverse Work Styles

27

CSR Report 2014

Support for Reinstatement after Long-term Leave
For employees reinstated at work after long-term leave due to illness or injury, we have in place
Reinstatement Support Bylaws that stipulate the consideration to be taken by workplaces according
to the condition of the employees’ health in an aim to prevent recurrence of the illness or injury andachieve a smooth return to work. To offer support also in terms of work style, we have a system inwhich reinstated employees may shorten their work time by up to two hours per day for a period of
six months.
Work at Home System
In fiscal year 2015, we will introduce a work-at-home system with the aims of promoting harmony
between employees’ work and life, and improving their work efficiency. The system will enable
employees living with a child before completion of elementary school and employees providing
family care to work at home either on two days a week or for a number of hours a day.

Support for Diverse Work Styles

28

CSR Report 2014

Safety and Health
Basic Policy on Safety and Health / Safety and Health Objectives
The Nissha Group Basic Policy on Safety and Health puts safety first above all else and declares
we will actively promote the creation of safe and comfortable work environments as well as thesound mental and physical health of employees. To this end, every year we set Nissha Group
Safety and Health Objectives and familiarize all employees with the following contents toward theirachievement.
1. Make continuous improvements toward eliminating workplace casualties
2. Establish structures to ensure the sound mental and physical health of employees
3. Observe laws, rules, stakeholder demands, and voluntary standards related to safety andhealth
4. Perform risk assessment
5. Create safe and comfortable workplaces
Safety and Health Committee / Safety and Health Management System
The Corporate Safety and Health Committee, responsible for the safety and health activities of the
Nissha Group, was reorganized in fiscal year 2015 as the Safety and Health Section of theManagement System Committee. The new organization oversees the Safety and Health
Subcommittees operated by each base and works to standardize and upgrade initiatives
throughout the Nissha Group.
The Safety and Health Subcommittees operated by each base set annual safety and healthobjectives in efforts to upgrade the level of our safety and health activities. In order to achievethese objectives, we believe it is important to incorporate individual initiatives into a management
cycle, and use the plan-do-check-act (PDCA) cycle to make improvements on a continuous basis.
To this end, we are aiming to build a safety and health management system compliant with OHSAS
18001 standards. By having in place an effective, functioning management system, we seek tofortify governance of the Nissha Group.
Safety and Health Management Structure

Safety and Health29

CSR Report 2014

Safety Checks before Installing Equipment
We have embarked to draw up New and Upgraded Equipment Safety Check Regulations toward
performing risk assessment of new and upgraded equipment before installing it in production lines.
As the methods of risk assessment differed greatly from base to base, the new regulations adopt
the methods of bases that perform the highest level of risk assessment, and tests have started
toward enforcement.
Safety Patrols
Members of the Safety and Health Committee take the leadin conducting safety patrols of workplaces. In fiscal year
2014, the president and heads of the Safety and Health
Subcommittees of each business unit in Kyoto conducted
special safety patrols of the Kyoto Headquarters. Thisinitiative was based on a requirement of the Safety and
Health Week designated in July, “Inspection by top
management,” as well as a key item of the 12th
Occupational Safety & Health Program recommended by
Safety patrols
the Ministry of Health, Labour and Welfare, “raiseawareness of workers’ safety and health by top management.” We will continue our efforts to
identify problems from various viewpoints, and create safe and comfortable workplaces.
Occurrence of Work-related Accidents
The occurrence of work-related accidents in the Nissha Group in Japan is given in the table below.
In fiscal year 2014, the frequency of work-related accidents decreased to zero, as there were no
injuries or casualties resulting in four or more days of leave. The number of working days lost also
decreased considerably, as one employee on long-term leave was reinstated. These led to asignificant improvement also in severity of work-related accidents, to 0.00.

*1. Frequency of work-related 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 work-related accidents: Refers to the severity of work-related accidents in terms of thenumber of working days lost per one thousand working hours.

Safety and Health Education and Training
Each Safety and Health Subcommittee sets forth an
education plan based on our Safety and Health Educationand Management Regulations (drawn up in April 2012), andprovides education and training required in their respective
workplaces. In fiscal year 2014, we planned and conducted
two programs—lower back pain and fall prevention
education, and supervisor education for preventing
recurrence of injury in senior employees—in an aim toprevent accidents that hazard assessment showed wererecurring with increasing frequency. The first program
invited outside instructors to give lessons in body

Lower back pain and fall prevention
education

movements effective in preventing lower back pain. This proved to be a good opportunity for
employees to take a fresh look at the condition that can be caused by problems not only at work
but also in everyday life.

Safety and Health30

CSR Report 2014

Prevention of Lifestyle Diseases
We are carrying on with our efforts in exercise, diet, andsmoking cessation as countermeasures for metabolic
syndrome with the aim of preventing lifestyle diseases. In
fiscal year 2014, we promoted smoking cessation andprovided opportunities to learn about the effects of smoking
on health and effective methods to quit smoking.
As a main initiative for deepening understanding about
specific ways to quit smoking, we organized a “smoking
cessation” lecture by industrial physicians and introduced
Smoking cessation consultations
its contents through posters, hosted a Smokerlyzer event tomeasure the level of carbon monoxide in smokers’ breath, and provided individual consultations
using our original leaflet “Why not quit smoking?”
As a high-risk approach, we also undertook measures to maintain health by recommending visits toa medical institution to employees who required either detailed examination or re-examination as aresult of their health checkup, and provided specific health guidance with support from adesignated medical institution to employees who required it as a result of their health checkup.
Mental Health Support
We continue in our efforts since fiscal year 2010 to provide
mental health education inviting a clinical psychologist. In
fiscal year 2014, we organized a line care training programin which managers and supervisors learned how to deal
with employees with contemporary mental health problems
as well as how to apply their newly acquired knowledge tofostering young employees.
Our survey on coping with work-related stress, introducedin fiscal year 2013 as part of our mental health checkup
Line care training
offering, is proving to be useful in self-care by helping
employees identify and cope with their own stress. We are continuing our awareness-raising efforts
in an aim to improve the ability to deal with stress with guidance from an industrial physician.
For employees who require special attention in terms of mental health, we follow our Long-term
Leave and Reinstatement Support Regulations and offer time to recover from their condition as wellas consideration in the workplace upon reinstatement, in an aim to prevent recurrence and achievea smooth return to work. We also have in place an outside web counseling service, through which a
specialized counselor offers mental health advice online.
For employees who work long hours, our healthcare staff and industrial physicians offer
consultation to understand their health condition and work with their supervisor and the humanresources division to provide required follow-up guidance.
We will carry on promoting collaboration between each division, the human resources division, andour healthcare staff in efforts to create comfortable workplaces.

Safety and Health

31

CSR Report 2014

Mental Health Support Structure

Safety and Health32

CSR Report 2014

The Environment
Policy and Management Structures

Objectives and Status of Achievement

The Nissha Group environmental
management structure was reorganized in
April 2014. We are working on continuous
improvement in our environmental
management system.

In May 2013, the Nissha Group revised theenvironmental objectives with the aim ofestablishing more effective initiatives. Each
implementing unit set targets, and the wholegroup worked to achieve the objectives.

Impact as a Result of Business
Operations
This section sums up resource and energy
usage (input) and gas, water, and waste
emissions (output) by the Nissha Group in
fiscal year 2014.

Prevention of Further Global Warming
In fiscal year 2014, CO2 emissions fromNissha bases in Japan increased 27.7%
year-on-year, and those from overseas bases
increased 3.3%. This section reports on thedetails and the major causes for the increase.

Waste Management
In fiscal year 2014, waste generated at
Nissha bases in Japan increased 58% yearon-year. This section reports on the major
causes for the increase and about our
promotion of risk management.

Monitoring and Prevention of Pollution
We have in place strict voluntary standards,
and periodically undertake monitoring andmeasuring activities to prevent pollution.

Status of Waste Generation at BasesThis section uses graphs to introduce thestatus of waste generated at Nissha’s major
production bases in Japan in March 2014.

The Environment

33

CSR Report 2014

Policy and Management Structures
Policy and Management Structures
We changed the Nissha Group environmental management structure in April 2014, merging two
previously separate organizations—the Environmental Management System Committee and theEnvironmental Conservation Committee—into the newly established Management System
Committee Environmental Section. The Management System Committee consists of three
specialized sections. As one of them, the Environmental Section is responsible for environmental
management throughout the Nissha Group.
The Environmental Section comprises the president as general supervisor, a corporate officer who
is the general manager of Corporate Administration in charge of EMS management, andEnvironmental Section Members selected from each department and factory. The environmental
conservation group of General Affairs functions as a secretariat and works toward the continuous
improvement of our environmental management system (EMS) such as by operating theEnvironmental Section, conducting internal environmental audits, and organizing management
reviews.
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 our intranet aswell as promoting the policy among all employees by posting it at each base of the Nissha Group.
To achieve our environmental objectives, each factory and organization sets its own environmental
targets and creates an action plan toward operating an EMS. These environmental targets arelinked to quality targets and the more important key performance indicators (KPI) so that they relate
directly to everyday tasks.

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

Policy and Management Structures

34

CSR Report 2014

5. Co-Existence with Society
We promote open dialogue with our customers, shareholders, suppliers, employees, and society
through our efforts to preserve the global environment.
Establishment April 1, 2012

Continuous Improvements in the Environmental Management System (EMS)
In fiscal year 2013, we reviewed the scope of application of our EMS. Whereas all sites of the
Nissha Group previously obtained ISO 14001 certification, we reorganized our sites into the four
categories below.
1. ISO 14001 certification sites
2. ISO 14001 non-certified operation control and inspection sites
3. Compliance inspection sites
4. Chemical substance control and inspection sites
In fiscal year 2014, we worked to improve our EMS under the new scope of application. We
focused on the key management items of each site and strove to maintain an effective
environmental management structure. ISO 14001 certified sites, which are also our major
production bases, particularly worked to implement risk management through the introduction of aunique environmental risk assessment process based on environmental hazards, taking into
account the risks of a suspension in factory operations. This risk assessment process involves twopillars of activity: managing negative risks, and managing positive risks including the improvementof environmental performance in sync with business targets and quality targets.
Nitec Precision and Technologies, Inc. (NPT) Himeji Factory and Kaga Factory newly obtained ISO
14001 certification in fiscal year 2014.
Nissha Environmental Management Structure

Policy and Management Structures

35

CSR Report 2014

Energy Management and Environmental Communication Structures

Policy and Management Structures

36

CSR Report 2014

Objectives and Status of Achievement
In May 2013, the Nissha Group revised the environmental objectives with the aim of establishing
more effective initiatives. This revision was preceded by the reorganization of the Environmental
Management System (EMS) coverage in fiscal year 2013. The environmental objectives serve asgroup-wide medium-term objectives until fiscal year 2015. In fiscal year 2014, each implementing
unit set targets, and the whole group worked to achieve the environmental objectives.
At the main production bases, we undertook environmental risk assessment and measures toreduce environmental risks, and worked to prevent environmental accidents. Although we
implemented energy saving initiatives at each factory as a global-warming prevention measure,CO2 emissions increased due to full-scale mass production at Nitec Precision and Technologies,
Inc. (NPT), which accounts for the largest share of domestic production. The Nissha Group did notachieve the group-wide target in terms of the CO2 emissions rate, which indicates efficiency
against production volume.
We did not achieve the target of reducing the usage rate of hazardous chemical substances due todeclines in production volume and small production lots at Nitec Industries, Inc. (NII), and theincrease in chemical agent usage at NPT. On the other hand, we achieved good results in resource
reuse and cost reduction at NII by selling waste solvents for recycling.
Apart from these initiatives, we worked to maintain ongoing communication with our suppliers,
making inspection visits to our waste collection, transportation and disposal contractors, etc.
We also continue to conduct environmental workshops in which employees visit local elementary
schools and nurseries, centered around the production bases.
Nissha Environmental Objectives
Scope: Nissha ISO 14001 certification sites in Japan (hereinafter “certification sites”)

1. Prevention of pollution
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 2015
Certification sites implement measures to reduce environmental risks* classified as H2 or moreon the hazard 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 thefactory* H2 is equivalent to “maintain” in the conventional classification, and should be addressed inaccordance with the designated procedure* The risk of environmental hazards by degree of severity and possibility, assessed in nine levels in amatrix (Risk levels from highest to lowest: VH, H1, H2, H3, H4, L1, L2, L3, VL)

2. Prevention of global warming
Reduce CO2 emissions rate (basic unit) by 3% or more by fiscal year 2015 (Base: Average offiscal year 2012 results)
Certification sites reduce annual CO2 emissions rate by 1% or more compared to the previous
year by basic unit, derived from factors such as production volume, through improvements inwork processes (efficiency) and quality
Objectives and Status of Achievement

37

CSR Report 2014

* 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 kg-CO2 / kwh) is used to monitor fluctuations resulting frominitiatives
3. Reduction of waste
Reduce waste generation rate (basic unit) by 3% or more by fiscal year 2015 (Base: Average offiscal year 2012 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 inwork processes (efficiency) and quality* Each organization may set KPI or quality targets (nonconforming product rate, go-through rate,etc.) as environmental targets* Indexes need not be the same as the CO2 emissions rate basic unit (production volume may
be substituted with number of items produced)(2) Promote the selling of waste for recycling
Certification sites set individual target rates and work to sell waste for recycling* Maintain zero emissions
4. Reduction of hazardous chemical substances
Certification sites reduce usage rate of hazardous chemical substancesWork to reduce {(usage or purchase volume) / (production volume, treatment volume, or numberof units)}(Certification sites set individual targets)

Results and Assessment in Fiscal Year 2014
1. Prevention of pollution
Target: Certification sites implement measures to reduce environmental risks classified as H2 or more on
the hazard assessment list (make efforts to attain one risk level lower)
Results:• Certification sites Nitec Industries, Inc. (NII) Koka Factory and Tsu Factory, Nitec Precision andTechnologies, Inc. (NPT) Himeji Factory and Kaga Factory, and Nitec Printing Co., Ltd. (NPC) Yachiyo
Factory created the hazard assessment list
• Several factories organized training in substance leakage as a measure to reduce risks• NPT Kaga Factory installed soundproof walls as a countermeasure for noise pollution
Assessment: Satisfactory

2. Prevention of global warming
Target: Certification sites reduce annual CO2 emissions 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
Results:• The CO2 emissions rate was 1.21 in fiscal year 2014 compared to the previous year as 1.00
• We did not achieve the target by basic unit mainly due to decreases in production volume at NII Koka
Factory and Tsu Factory, and a temporary drop in the yield rate at NPT Himeji Factory
Assessment: Poor

Objectives and Status of Achievement

38

CSR Report 2014

3. Reduction of waste-1
Target: 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
Results:• The waste generation rate was 1.05 in fiscal year 2014 compared to the previous year as 1.00
• We did not achieve the target mainly due to increases in waste stemming from a decrease inproduction volume at NII, and an increase in production volume and a temporary drop in the yield rate at
NPT Himeji Factory
Assessment: Poor

3. Reduction of waste-2
Target: Certification sites set individual target rates and work to sell waste for recycling
Results:• NII made efforts to sell waste solvents for recycling and improved its target rate
• NPT Kaga Factory did not achieve its target of zero emissions due to the start of mass production using
a new process, which converted the treatment of sludge from drainage to incineration and landfill
Assessment: Unsatisfactory

4. Reduction of hazardous chemical substances
Target: Certification sites reduce usage rate of hazardous chemical substances
Results: We did not achieve the target due to an increase in substance use at NPT and the conversion
to small lot production at NII
Assessment: Poor

Objectives and Status of Achievement

39

CSR Report 2014

Impact as a Result of Business Operations
In order to grasp the impact of our business operations on the environment, we conducted surveys
of resources and energy usage (input) and gas, water, and waste emissions (output). The results
for the Nissha Group in fiscal year 2014 are given in the figures below.
Input and Output at Nissha Production Bases
The results for fiscal year 2014 reflect the full-scale start of mass production at Devices production
base Nitec Precision and Technologies, Inc. (NPT) Himeji Factory, and the start of mass production
using a new process at NPT Kaga Factory.
In terms of input, materials used in manufacturing processes in Devices increased by 2.3-foldcompared to the previous year, from 3,307 tons* to 7,733 tons. Usage of electricity also increasedby 1.3-fold, from 132,282 MWh to 175,102 MWh, and usage of water 1.8-fold, from 1,373,000 m3
to 2,511,000 m3, all owing to the aforementioned changes in business content. Input remainedlevel or decreased in Industrial Materials, Information and Communication, and overseas bases.
As for output, the greatest change is the 190-fold increase in combustible and landfill waste, from12 tons in the previous year to 2,287 tons, due to the method of sludge treatment as incinerationand landfill at NPT Kaga Factory. The increase in wastewater generated also reflects to a large
extent the increase in production volume at NPT Himeji Factory and Kaga Factory.

Impact as a Result of Business Operations

40

CSR Report 2014

*CSR Report 2013, issued in July 2013, contained the following errors. Devices’ “Materials used in productmanufacturing processes” was incorrectly given as 46,277 tons; the recalculated, correct figure is 3,307
tons. Similarly, overseas production bases’ “Total waste” was incorrectly given as 517 tons; the correct figure
is 113 tons.
*VOC emissions are calculated from the volume of solvents usage, and differ from the volume of actual
emissions. Each factory strives to reduce emissions through combustion and treatment.
*Nissha production bases in Japan emit no SOX.

Impact as a Result of Business Operations

41

CSR Report 2014

Prevention of Further Global Warming
Status of CO2 Emissions at Nissha
In fiscal year 2014, CO2 emissions from Nissha bases in Japan totaled 105,676 t-CO2 , exceeding
the 82,765 t-CO2 in fiscal year 2013 by 27.7% (approximately 22,900 t-CO2). CO2 emissions fromoverseas production bases amounted to 8,849 t-CO2, for an increase of 3.3% compared to 8,561 tCO2 in the previous year.
The increase at bases in Japan resulted primarily from full-scale mass production at Nitec Precision
and Technologies, Inc. (NPT) Himeji Factory, and the start of mass production at NPT Kaga
Factory. Emissions from Himeji Factory amounted to 38,006 t-CO2 for a roughly 1.2-fold increase
compared to 32,029 t-CO2 in the previous year, and those from NPT Kaga Factory were 28,717 tCO2 also for a significant 3.1-fold increase compared to 9,133 t-CO2. On the other hand, emissions
from Nitec Industries, Inc. (NII) Koka Factory were 17,979 t-CO2 for an approximately 4.0%
reduction from the previous year, and those from NII Tsu Factory were 10,449 t-CO2 also for a
13.1% reduction.
Emissions from overseas production bases increased at Southern Nissha Sdn. Bhd. andGuangzhou Nissha High Precision Plastics Co., Ltd., but decreased at Nissha (Kunshan) Precision
IMD Mold Co., Ltd., due to a decline in production volume. Those at Eimo Technologies Inc., asubsidiary of Nissha USA, Inc., at 4,812 t-CO2, accounted for more than half of the volume of all
overseas production bases combined. CO2 emissions from Eimo Technologies Inc. in fiscal year
2014 were nearly the same as the previous year.
The Nissha Group emits very little energy-related greenhouse gases other than CO2 .
Trends in CO2 Emissions Volumes and Basic Unit

Prevention of Further Global Warming

42

CSR Report 2014

Trends in Gas Consumption

Trends in Gasoline, Diesel, and Heavy
Oil Consumption

Trends in Electricity Consumption

Prevention of Further Global Warming

Trends in Energy Consumption

43

CSR Report 2014

Basic Unit Management by Production Volume
The enactment of the revised Act on the Rational Use of Energy demands the comprehension andmanagement of energy use per company. To comply with the legal requirements in line with thisshift, we manage emissions under a basic unit based on factors such as production volume percompany. With 1.00 indicating the benchmark fiscal year 2013 results of Nissha Printing Co., Ltd.,and each affiliated company that constitutes a production base, we set fiscal year 2014 targets at
0.99 or less. The results are given in the table below. Nissha in Japan did not achieve thecompany-wide target by basic unit, as the results of NPT Himeji Factory and NII Koka Factory and
Tsu Factory dropped below their basic units.

Prevention of Further Global Warming

44

CSR Report 2014

Waste Management
Waste Management and Zero Emissions
In fiscal year 2014, the Nissha Group in Japan generated a total 17,876 tons of waste for a 58.0%
increase compared to fiscal year 2013. The primary reason is the increase in waste resulting fromfull-scale mass production at Nitec Precision and Technologies, Inc. (NPT) Himeji Factory, and thestart of mass production at NPT Kaga Factory. The volume of combustible and landfill waste
similarly increased, amounting to 2,287 tons for a 190-fold increase. Sludge generated from theKaga Factory is treated as combustible and landfill waste. As a result, our recycling and resource
reuse rate was 87.2%, and we did not achieving zero emissions (a recycling and resource reuserate of 99.5% or more). At present, the Kaga Factory is working to improve treatment ofwastewater, which is the source of sludge.
Status of Recycling and Converting Waste into Valuable Resources
We continued to make efforts to convert waste into valuable resources. In fiscal year 2014, we sold
31.8% of all waste generated for a roughly 10 percentage point decrease compared to the previous
year. The cause is the increase in total waste generated. Similarly, the material recycling rate was
54.1% for an approximately 8 percentage point decrease compared to fiscal year 2013.
Nitec Industries, Inc. (NII) is making active efforts to sell waste solvents for recycling, as it offers thebenefits of a lighter burden on the environment as well as cost reductions.
Status of Initiatives at Overseas Production Bases
Asian production bases Guangzhou Nissha High Precision Plastics Co., Ltd., Nissha (Kunshan)
Precision IMD Mold Co., Ltd., and Southern Nissha Sdn. Bhd. generated a total of 194 tons ofwaste in fiscal year 2014 for a 1.7-fold increase compared to the previous year, due to increases in
production volume at some factories. On the other hand, they achieved their target recycling andresource reuse rates. In particular, Southern Nissha achieved a rate of 99.1% against a target of
90.0% or more, and Nissha Kunshan a rate of 89.5% against a target of 82.2% or more.
Risk Management Related to Waste and Waste Converted into Valuable Resources
We recognize largely three types of waste-related risk:
Accidents and disasters caused by waste and waste converted into valuable resources(including at treatment contractors)
Environmental pollution and violation of laws caused by inappropriate waste treatment
Leakage of confidential information from waste and waste converted into valuable resources
We at Nissha check the properties of our waste, down to each spray can, and monitor it so as toprevent spillage during transportation and accidents at treatment facilities. In fiscal year 2014, we
reviewed the contents of the Nissha Guidelines for Waste Management Standards and revised
them as the Nissha Waste Management Regulations. The revisions seek to meet customer
demand by introducing the concepts of waste inventory and modification management. We areworking to periodically review the regulations and enable all bases to manage waste safely under
the same set of standards. In turn, each base has drawn up its own Waste Management Manualand makes efforts toward thorough waste separation and management. The regulations also
stipulate the criteria for selecting treatment contractors and for regularly inspecting treatment
facilities that use their own checklist.
In addition, we have in place standards for managing waste and waste converted into valuable
resources that contain confidential information, and conduct management in association with our
information security management system (ISMS).
Waste Management

45

CSR Report 2014

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

Waste Management

46

CSR Report 2014

Monitoring and Prevention of Pollution
Measures to Help Prevent Pollution
We undertake monitoring and measuring activities toprevent pollution. Based on strict voluntary standards, we
conduct periodic testing the level of atmosphericpollutants, wastewater quality, noise, and foul odor.

Nitec Precision and Technologies, Inc. (NPT) Himeji Factory
Measurements of Wastewater Quality
Unit: m3 for discharged water, mg/l for others (except PH)*COD value momentarily exceeded the agreement value. We submitted necessary reports to thegovernment and took corrective actions appropriately.

Monitoring and Prevention of Pollution

47

CSR Report 2014

Nitec Precision and Technologies, Inc. (NPT) Kaga Factory
Measurements of Wastewater Quality
Unit: mg/l

Nitec Printing Co., Ltd. (NPC) Yachiyo Factory
Measurements of Soot and Smoke
Unit: g/m3N

Nitec Industries, Inc. (NII) Tsu Factory
Measurements of Site Outer Boundaries
To the best of our ability we voluntarily measure and monitor odor concentrations.

Management of Chemical Substances
In fiscal year 2014, we reported the use of eight PRTR-designated chemical substances.
Nitec Industries, Inc. (NII) Koka Factory
Unit: kg

Monitoring and Prevention of Pollution

48

CSR Report 2014

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

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

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

Monitoring and Prevention of Pollution

49

CSR Report 2014

Status of Waste Generation at Bases
Status of Waste Generation at Major Production Bases (March 2014 Results)
Nitec Industries, Inc. (NII) Koka Factory
Location: Koka City, Shiga Prefecture
Acquisition of ISO14001 Certification: June 2007
Production items: Transfer foils (the Industrial Materials business)
Recycling and resource reuse rate: 100.0%

Nitec Industries, Inc. (NII) Tsu Factory
Location: Tsu City, Mie Prefecture
Acquisition of ISO14001 Certification: March 2012
Production items: Transfer foils (the Industrial Materials business)
Recycling and resource reuse rate: 99.9%

Status of Waste Generation at Bases50

CSR Report 2014

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), dye-sensitized solar
cell
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: 65.2%

Status of Waste Generation at Bases51

CSR Report 2014

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 Communicatino
business)
Recycling and resource reuse rate: 99.8%

Status of Waste Generation at Bases52

CSR Report 2014

Fair Operating Practices
Initiatives Related to Information
Security
All our employees adhere to our Information
Security Policy, which we drew up with theaim of building a highly reliable and safe
information security management system.

Trade Management
As our overseas sales increase, efforts intrade management are essential for ourbusiness continuation. Nissha Printing Co.,
Ltd. obtained approval as an AEO Exporter inJune 2014 and aim to reinforce our initiatives
continuously.

Initiatives Related to Intellectual
Property
Under a basic policy of protecting intellectual
property, we are making efforts to respect the
intellectual property of third parties and toobtain rights for and use that of our own.

Partnership with Our Suppliers
Under the Basic Purchasing Policy, we areworking with our suppliers to promote CSR
procurement and to enhance mutual
corporate value, keeping in view international
trends and global standards.

Initiatives Related to Conflict Minerals
We established Underlying Philosophy
Concerning Corporate Responsibility for
Minerals Procurement in March 2014, where
we declared to make sincere response
engaging in minerals procurement.

Fair Operating Practices

53

CSR Report 2014

Initiatives Related to Information Security
The spread of the Internet and the broad use of smartphones have ushered in a convenient era inwhich anyone can connect with the online community easily at all times. On the other hand, therisks are increasing of everyone becoming either a victim or perpetrator of information leakage.
We at the Nissha Group recognize the importance of never leaking outside the company or beyond
related parties information entrusted to us by our customers and suppliers, particularly highly
confidential information assets such as information on new products and state-of-the-art
technologies, and the personal information of employees and business partners.
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 andsecure an information security management system to protect our own business information andthe information assets, which we acquire from customers, suppliers and employees, etc.,
through our business activities performed, from any kinds of threat. And we take internal andexternal information security requirements into consideration and reduce all risks below theacceptable levels.
1. We continually improve an Information security management system by establishing,implementing, and reviewing the information security objectives, so that the confidentiality,
integrity, and availability of information can be maintained and improved.
2. We comply with legal and regulatory requirements for information security and with
contractual security obligation.
3. We establish and improve the criteria for reasonably evaluating risks concerning information
security as well as the risk assessment methods, to mitigate risks and to maintain theinformation security levels which contributes to the corporate developments.
4. We make Information Security Policy known to all employees working in the premises ofNissha and its subsidiaries to raise their awareness of the issues related to information
security.

Information Security Management Structure
We have in place an Information Security System Committee to serve as a center for the promotionof information security. The committee is run by an ISMS management representative (the Chief
Information Officer, or CIO) and comprises information security managers, group leaders, andpromoters selected from each department. An ISMS secretariat set up within the IT department
functions as committee secretariat.
The committee plays an important role in the promotion of our ISMS by addressing issues thathave become evident in addition to reporting and sharing the results and challenges of initiatives
related to information security.

Initiatives Related to Information Security

54

CSR Report 2014

Initiatives in Information Security Management
Since we obtained ISO 27001 certification, a global standard for ISMS, in September 2005, wehave built and continuously maintained and improved an ISMS unique to the Nissha Group.
Through the operation of our ISMS, 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, and appropriately followed processes such as
management reviews, thereby reducing the risks of incidents and accidents.
In fiscal year 2014, the Nissha Group implemented the following initiatives in information security
management.
1. Reform information security-related regulations
Revise information security-related regulations to address changes in the IT environment of late,such as the diversification of smart devices and the proliferation of cloud services
2. Reinforce management of PCs and devices
1) Strengthen our governance structure through the centralized procurement and management of
PCs and smart devices by the IT department
2) Address bring-your-own-device (BYOD) introduced with the primary purpose of improving work
efficiency
3. Strengthen information security education
1) Revise educational material so that the content suits the times2) Educate and provide online tests for all employees, as each must deepen understanding on
information security
Through the initiatives above, we strengthened our response to increasingly diversifying IT devices,changes in the IT environment such as Internet services, and ever-evolving information security
risks.We plan to 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

55

CSR Report 2014

Trade Management
Enhancement of Trade Management Structure
In fiscal year 2014, we earned 73.0% of our sales overseas. For a company like us, efforts in trade
management are essential for business continuation.
Our initiatives related to trade management started in 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, it aimed to establish a division for the comprehensive
management of all trade activity, provide education to raise awareness of the importance ofcomplying with laws and regulations, and increase the number of human resources with specialized
knowledge.
Later, in October 2010, we established the Corporate Logistics Strategy and Planning Office todevelop a detailed policy for trade management. In April 2011, we set up the Trade Administration
and Control Preparatory Committee, which worked to prepare various rules and a trade
management manual. That August, we launched the Trade Administration and Control Committee,
and in December, started full implementation of trade management.
At its first general meeting organized in May 2012, the Trade Administration and Control Committee
confirmed that activities would aim to strengthen security trade control in compliance with theForeign 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 have carried on with our efforts eversince, under a structure centering on the Trade Administration and Control Committee.
Trade Administration and Control Committee

Trade Management

56

CSR Report 2014

AEO Approval and Future Initiatives
Nissha Printing Co., Ltd., obtained approval as an AEO Exporter inJune 2014.
In fiscal year 2014, we furthered our efforts in security export
control and embarked on specificexport management not only ofcargo but also of services (technological information). In particular,
members of the Trade Administration and Control Committee fromeach business unit organized secretariat meetings every monthand worked to fortify company-wide trade management initiatives
toward obtaining AEO exporter status. Thanks to their conducting
periodic employee education and drafting a medium-term
education plan, awareness has improved about applicability
decisions and transaction audits, and the number of submissions
for export application continued to increase significantly. We are
Certificate of AEO Exporter
carrying on with our efforts toward thorough compliance with rules
for completing and submitting customs documents required withDFWXDOH[SRUWVThe Ministry of Land, Infrastructure, Transport and Tourism recentlyissued a notice requiring strict
control of export cargo byFRPSDQLHV:KLOHZHKDYHDOZD\VZRUNHGWRIRUWLI\WKHVHFXULW\RI
products shipped from our factories, we believe it is important to step up our initiatives continuously
on a company-wide level toward appropriate cargo control and improved employee awareness of
security.
As an international logistics operator with AEO status, we will continue to increase our efforts toensure safety, improve work quality, and fortify our initiatives in compliance so that we may provide
safe, secure, and speedy international logistics services to meet our customers’ 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 isa great challenge. The AEO program seeks to address this challenge by fostering partnerships
between customs and private businesses. AEO operators, approved for their security
management and compliance structures, are given benefits such as simplified customs
procedures in accordance with international standards.

Trade Management

57

CSR Report 2014

Initiatives Related to Intellectual Property
Approach to Intellectual Property
We stipulate the protection of intellectual property in our basic policy and as a key item of our
Guideline of the Corporate Ethics and Compliance, and make active efforts to respect the
intellectual property of third parties and to obtain rights for and use that of our own.
Intellectual Property Management acts as the central body for protecting intellectual property. With
the aim of expanding the performance of business units and ensuring a competitive advantage fornew businesses, it works to establish intellectual property strategies for the entire Nissha Groupand 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
and will undertake their appropriate management.
2. We will report any invention arising through our business operations in accordance with ourCompany regulations.
3. We will strive to avoid the breach of third-party intellectual property rights.

Major initiatives
Promotion of Patent Application
We aim to file for patent application and obtain rights for new technologies developed in ourdevelopment divisions. To respond to the increasing globalization of our business activities, thisrequires us to file for application not only in Japan but also abroad. The promotion of technology
development and the obtaining of patent rights help to differentiate Nissha products, made with ourown distinctive technologies, from other companies’ 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 and obtain results on a regular basis using a selective dissemination of
information (SDI) system.

Initiatives Related to Intellectual Property

58

CSR Report 2014

Intellectual Property Training Programs
We organize internal training programs so that
employees may deepen their understanding of andproperly protect intellectual property. In fiscal year
2014, we invited an outside specialist to conduct
sessions divided into two levels—intermediate andadvanced—in which participants learned indetail about intellectual property law, how to researchother companies’ patents, and promoting technology
development and filing for patent application. We also
hold sessions in which a member of Intellectual
Property Management serves as instructor.

Intellectual property training program
Instructor: Tatsushi Gocho, Representative Director
TechnoProducer Corporation
Commissioned organizer: CKS Corporation

Initiatives Related to Intellectual Property

59

CSR Report 2014

Partnership with Our Suppliers
We at Nissha procure the raw materials, components, equipment, and services necessary to makeour products from the global market. We are working with our suppliers that constitute this supply
chain to promote CSR procurement based on our Basic Purchasing Policy and enhance mutual
corporate value.

Procurement and purchasing as a truly global company→Fair evaluation / CSR procurement

Promotion of CSR Procurement
Our Basic Purchasing Policy stipulates the key points of CSR procurement as we build
partnerships of co-existence and co-prosperity with our suppliers. We strive to promote CSR by
keeping track of the status of our suppliers’ initiatives using a Supplier ESG Check Sheet as a tool
for self-evaluation.
The Supplier ESG Check Sheet comprises 64 questions divided into the 11 sections given below. It
has been revised to clarify items related to basic human rights and business continuity plan (BCP),
and lists absolute requirements such as compliance with laws as important items. In fiscal year
2014, we asked 60 of our major suppliers to complete the check sheet, and through it, confirmed
the status of their initiatives.

Partnership with Our Suppliers

60

CSR Report 2014

Fields of the Supplier ESG Check Sheet
1. Certification
2. Quality management
3. Environmental management
4. Information security management
5. Health and safety
6. Business plan
7. Corporate ethics/compliance
8. Respect for fundamental humanrights
9. Information disclosure
10. Fair trade
11. Social contribution

CSR Procurement Briefing
In fiscal year 2014, we held CSR procurement briefing sessions for eight materials suppliers andprocessing contractors.
The sessions provide a space for communication, enabling us to explain our approach to CSR
procurement based on our Basic Purchasing Policy and our Supply Chain CSR Procurement
Guidelines and encouraging our suppliers to gain an understanding of our specific initiatives, aswell as for us to hear about our suppliers’ CSR initiatives.
Since we started conducting CSR procurement briefing sessions in 2009, we have welcomed theparticipation of a total 192 suppliers to date. We plan to continue our efforts with an eye topromoting CSR and further deepening communication.
In-house Exhibition and Technology Seminar
With the aim of strengthening partnerships, we host in-house exhibitions and technology seminars
in which we invite our suppliers to introduce their products and new technologies to the employeesof various Nissha departments. In fiscal year 2014, we held one in-house exhibition and one
technology seminar.

In-house exhibition

Partnership with Our Suppliers

Technology seminar

61

CSR Report 2014

Future Initiatives
Demand is rising for CSR initiatives that integrate a global perspective. We at Nissha also receive
various inquiries and requests from our customers and research organizations, many of which
require the efforts of not only Nissha but also our supply chain as a whole. We hope to continue
working with our suppliers while keeping in view international trends and global standards.

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, based on PRINTING as a core.", we at Nissha are always committed to creating
enterprise value by establishing the partnership for co-existence and co-prosperity with suppliersand carrying out mutually fair procurement.
We at Nissha evaluate suppliers impartially, fairly and comprehensively, based on the following
points.
・Stable business foundation and reliable business attitude
・Excellent technology development and supply abilities
・Flexibility to adapt to changes in the business environment
・Safety of products and services, stable quality and lead time and competitive prices
・Supply chain management aimed for business continuation
We at Nissha promote CSR procurement by working with suppliers on the following points.
Full consideration to the global environment
・Observance of laws and regulations and raising corporate ethics
・Respect of fundamental human rights
・Promotion of safety and health・Maintenance and improvement of information security level
・Information disclosure・Fair trade・Social contribution
Establishment April 2, 2009
Amendment April 26, 2011

Partnership with Our Suppliers

62

CSR Report 2014

Initiatives Related to Conflict Minerals
Since the adoption of the final provision of the Dodd-Frank Act*1 (Section 1502) in August 2012,
we at Nissha have received a lot of inquiries from customers. Many of the inquiries demandanswers in line with the EICC/GeSI Template*2. In both our Industrial Materials and Devices
business units, the quality control divisions are acting as a hub for providing responses.
The only conflict minerals contained in Nissha products are tin used in some decoration films and in
ITO film for touch panels, and gold used in FPC plating. Apart from these two, we use no otherconflict minerals. We have completed our investigation of smelters and countries of origin, andfound that we do not use minerals produced in the Democratic Republic of Congo or adjoining
countries.
We at Nissha champion the respect for human rights in our Basic Purchasing Policy drawn up in
2009. In addition, Underlying Philosophy Concerning Corporate Responsibility for Minerals
Procurement was established in March 2014, where we declared to make sincere response
engaging in 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 offunding for militia that through acts of looting, violence and forced labor are infringing on
fundamental human rights.
In April 2012, Nissha became a signatory to the “Global Compact” as advocated by the United
Nations. We at Nissha have fully embraced the Ten Principles stated in the Global Compact as acornerstone of our Corporate Mission. Based upon our recognition of the importance of theseprinciples and aiming for co-existence with our stakeholders, we are committed to non-use of
these conflict minerals, as raw materials in our products as they result in an infringement ofbasic human rights. Accordingly where our company becomes aware of the use of any conflictminerals, we will immediately implement all measures 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 inorder to fulfill our corporate social responsibilities.
March 12, 2014
Junya Suzuki
President and CEO
Nissha Printing Co., Ltd.

Initiatives Related to Conflict Minerals

63

CSR Report 2014

*1 Dodd-Frank Act: The Dodd-Frank Wall Street Reform and Consumer Protection Act (USA) requires
companies to report whether any conflict minerals they use were produced in the Democratic Republic ofCongo or adjoining countries.
*2 EICC/GeSI Template: The template provided by the Electronic Industry Citizenship Coalition (EICC) and
the Global e-Sustainability Initiative (GeSI) allows companies to report on the use of conflict minerals.

Initiatives Related to Conflict Minerals

64

CSR Report 2014

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

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

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 in periodic management reviews.

Consumer Issues

65

CSR Report 2014

Quality Assurance Structure

Nissha Total Quality Management (NTQM)
Our NTQM initiative seeks to build and improve a mechanism for keeping promises with ourcustomers as well as complying with laws and regulations. NTQM clarifies the procedures followed
at each business unit, such as design reviews (DR), reliability tests, and supplier management. We
believe that improving the accuracy of these procedures will enable us to provide products andservices with even higher levels of quality and safety.
Five Musts for the Systematization of WorkIn fiscal year 2012, we set forth Five Musts for the Systemization of Work, a concept we areworking to communicate company-wide 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
your work, 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 thesystem 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

Consumer Issues

66

CSR Report 2014

results in further improvement of the system, as well as that of the quality of our work and theCompany.

Small-group Activities
The accumulation of bits of wisdom and creativity from all employees is the source of great
improvements in work processes. The small-group activities we restarted in July 2011 are an
important mechanism for mustering our knowledge and strengths. And the Company-wide
Presentation Meeting of Small-group Activities we have held every six months since October 2011
unveils various results of improvement, such as enhanced yield, cost reduction, and improved
efficiency. The presentation meetings are designed to reward not only the results but also thethought processes, ideas, and creativity that produced the results.
Through the small-group 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 plan-do-check-act (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 theimprovement proposal system as a company-wide mechanism. The number of proposals isincreasing 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 thecompany. We plan and provide various educational programs in efforts to develop our employees—
our most important management resources.

Training

1) General quality training (for first-, second-, and third-year employees, newmanagerial staff, managers, and overseas transferees)
2) Management system training (ISO 9001:2008, ISO/TS 16949:2009, and core
tools)
3) Quality control training (QC Exam levels 3 and 4)4) Quality methodology training (statistical methods, experimental design, TS
core tools, etc.)
5) Improvement tool training (industrial engineering, human error prevention, “5Whys” cause-and-effect analysis, etc.)
6) Other training (corporate ethics and compliance, finance and export
management, CPL*)

Practical
education1) Support for small-group activities
2) Support for project launches
3) Support for key project themes

Information
sharing /reciprocal
learning

Company-wide Presentation Meeting of Small-group Activities* CPL: Combination of contractual liability (CL) with product liability (PL)Consumer Issues

67

CSR Report 2014

Customer Satisfaction Improvement Committee
Starting in fiscal year 2015, the CQO Planning Office in charge of quality functions as a secretariat
for our Customer Satisfaction Improvement Committee. With the president serving as the chair, thecommittee conducts investigations and analyses to improve customer satisfaction, provides
education to raise employee awareness, and promotes improvements in systems.
From Department-based Optimization to Company-wide Optimization
The next process is the customer—this is a Japanese maxim related to quality improvement. Itmeans 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’, and even ties between work processes across the whole company, interms of “input” and “output.” Hence we stress the importance of links between internal processes
and the orderly division of roles. By having all employees stand in the customers’ shoes, we aim tobreak free of department-based optimization and strive for company-wide optimization. We believethat basic concepts like this and the sorting out of functions will build Nissha’s foundation as amanufacturing company.
Quality and Safety of Products
We at Nissha provide our customers with explicit information on product usage and safety indocuments such as delivery specifications. In the event a serious accident occurs as a result offlaws in our products and services, which may violate laws or regulations, we establish a CPL
committee and strive for a quick resolution. We are also prepared to report the incident togovernment agencies in accordance with laws and to notify our customers as soon as possible. We
communicate to our employees the importance of ensuring the quality and safety of products
through corporate ethics and compliance training.
Up to fiscal year 2014, the number of instances in which we organized a CPL committee or violated
laws was zero, resulting in a fine of 0 yen. We will strive to maintain our zero violation record in the
future.
Initiatives Related to 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, andthe Nissha Control Criteria for Chemical Substances in Purchased Products, covering procured
items. Both reflect the laws and regulations of relevant countries and regions, including the RoHS
(Restriction of Hazardous Substances) Directive and the REACH (Registration, Evaluation,
Authorization, and Restriction of Chemicals) regulation, as well as the substance-related criteria of
our customers. Whenever our customers’ requirements change, we identify the differences fromour criteria and work to conform to the customers’ request. Apart from this, we review the criteria
once a year, make revisions as necessary, and organize briefing sessions for related divisions andour suppliers.
The criteria come in to play when selecting new materials in the design and development stages, in
conducting design reviews related to materials and in assessing compliance with relevant codes.
Our factories are building a mechanism for verifying the selected materials received, ensuring
traceability, and distinguishing between conforming and nonconforming substances in efforts toprevent misuse and contamination.
The environmental conservation group of General Affairs functions as a secretariat and works with
the quality assurance and procurement divisions of each business unit to manage chemical
substances in products. This internal structure implements strict control of chemical substancesfrom the design stage to the final products, and responds to changes in the needs of society andthe demands of our customers.

Consumer Issues

68

CSR Report 2014

Community Involvement and Development
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 our management resources to four fields we recognize as important: environmental
protection, next generation support, promotion and support of arts and culture, and human support
activities.

Basic Social Contribution Policy
Nissha and Nissha People contribute to society under the spirit of global citizenship 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".

Community Involvement and Development

69

CSR Report 2014

Environmental Workshops at Local Elementary Schools and Nursery Schools <Next
Generation Support>
Our employees mainly at production sites in Japan visit local elementary schools and nurseryschools and conduct environmental workshops on a continuous basis since fiscal year 2008.
Participants numbered approximately 3,700 children at 70 schools as of the end of fiscal year 2014.
In the workshops, children learn about global warming and separating waste for recycling throughquizzes and group work. We also introduce the mechanisms of the printing process and touch
panels in a creative program using the unique technologies of our businesses.
Since it launched the initiative in fiscal year 2009, Nitec Precision and Technologies, Inc. (NPT)Kaga Factory visited all elementary schools in Kaga City by fiscal year 2013, and continues in its
efforts in and after fiscal year 2014.

Participation in Stand Up Take Action Campaign <Human Support Activities>
Since April 2013, the corporate cafeteria at Nissha’s Kyoto Headquarters serves a Table For Twomenu, where with each purchase of a meal, 20 yen is donated to provide school lunch for children
in developing countries. In October 2013, Nissha hosted a Stand Up Take Action event, offering
employees the opportunity to participate in a global campaign to end poverty and achieve one of
the Millennium Development Goals.
Members mainly of divisions running the Table For Two menu gathered in the corporate cafeteria,
read their declaration—“We will stand up to eradicate poverty across the world”—and took a group
photograph. Although this event in the cafeteria by no means represents tremendous action, we
believe it will help to build a global perspective and lead the individual participants to take action,
starting with what they can do today.

Community Involvement and Development

70

CSR Report 2014

Company Outline
Company Outline

Company nameNissha Printing Co., Ltd.

Headquarters

3 Mibu Hanai-cho, Nakagyo-ku, Kyoto 604-8551, Japan

President and CEO,
Representative
Director of the
Board

Junya Suzuki

Founded

October 6, 1929

Established

December 28, 1946

Capitalization¥5,684,790 thousand

Number of
employees

837 (consolidated: 3,383) as of the end of March 2014

Bases

Japan: 13 (including affiliated companies)
Overseas: 23 (including locally incorporated companies and equity
method affiliates)

Sales Breakdown in FY2014
Breakdown by business field

Company Outline

Breakdown by overseas vs. domestic71

CSR Report 2014

Global Network

Nissha Businesses and Major Affiliated Companies
Nissha operates three businesses: Industrial Materials, Devices, and Information andCommunication.
Industrial Materials
The Industrial Materials business meets a broader spectrum of customer needs by expanding anddeveloping on application areas for proprietary technologies including IMD, which implements
three-dimensional plastic molding and transferring various designs and functions simultaneously.
Products
IMD (Simultaneous Molding and Decorative Film Transfer System)
IML (Simultaneous Molding and Decorative Film Insert System)
Heat Transfer Foil
Nissha TechSol (functional film)
Nissha In-Metal (transfer to metal)
3D Dye sublimation
Glass transfers and lamination
3D transfers and lamination*IMD and IML are either registered trademarks or trademarks of Nissha Printing Co., Ltd.
*TechSol is a registered trademark or a trademark of Nissha Printing Co., Ltd.
*TechSol is the coinage of Technical Solutions and is Nissha's film development services.
*Nissha In-Metal and In-Metal are registered trademarks or trademarks of Nissha Printing Co.,Ltd.

Applications
Automotives (interiors and exteriors), consumer electronics, stationery, cosmetic packages,
miscellaneous goods, housing equipment, etc.
Affiliated Companies
Nitec Industries, Inc. (NII)
Eimo Technologies, Inc.
Guangzhou Nissha High Precision Plastics Co., Ltd.
Nissha (Kunshan) Precision IMD Mold Co., Ltd.
Southern Nissha Sdn. Bhd.

Company Outline

72

CSR Report 2014

Devices
The Devices business offers FineTouch, which leads the touch-input device market with cuttingedge technology, and by evolving from touch-input to sensing functions, pursues more competitive
and advanced technologies with an eye toward future trends.
* 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.

Products
Capacitive-type touch panel
Resistive-type touch panel
Applications
IT devices (smartphone, tablet, PC), gaming gear, digital books, educational devices, digital
cameras, video cameras, portable audio players, automotives, medical devices, industrial devices,etc.
Affiliated Companies
Nitec Precision and Technologies, Inc. (NPT)Information and Communication
The Information and Communication business delivers an array of solutions and products ranging
from marketing and sales promotion materials to high-quality print media, online communication
strategies using the Internet, and digital archives.
Products and Solution
Commercial printing
Printing & publishingMarketing solution
Sales promotion
Web solution
Creative design
Cultural asset art solutions
Affiliated Companies
Nitec Printing Co., Ltd. (NPC)
Nissha Sales Promotion & Products Co., Ltd. (NSP)
NCP Co., Ltd.

Company Outline

73

CSR Report 2014

Editorial Policy
Editorial Policy
CSR Report 2014 has been compiled with the objective of disclosing widely to our stakeholders
information regarding Nissha's initiatives and business performance in fiscal year 2014 (April 2013–
March 2014). The report is published annually since 2004 (in fiscal years 2005 and 2006 as
Environmental Report, and from fiscal year 2007 onward as CSR Report) with the aim of serving as
a communication tool to build a "mutually trustful co-existence with society," a concept we cite in
our Corporate Mission.
The contents of this report are based on the guidelines given below as well as various
questionnaires regarding corporate evaluation. Editing was conducted in line with the core sectionsof ISO 26000 while taking into consideration significance both for society and Nissha's stakeholders
and for Nissha itself, drawing on the views of our various stakeholders, including customers. Also,
we aimed to declare our performance according to the Application Level given in the Global
Reporting Initiative (GRI)'s Sustainability Reporting Guidelines. We assess this report to meet thestandards of GRI (3.1) Application Level C.
Guidelines used as reference:
Environmental Reporting Guidelines 2012, issued by the Japanese Ministry of the Environment
Sustainability Reporting Guidelines (G3.1), developed by the Global Reporting Initiative
ISO 26000
Period Covered
The information contained in this report, in principle, covers the period from April 2013 to March
2014. Some reporting has also been done regarding activities carried out after April 2014.
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 on the relevant page.
"Nissha Printing Co., Ltd." refers to the parent company alone. "Nissha" and "Nissha Group" refer
to Nissha Printing Co., Ltd. and its group companies. "Headquarters" refers to the headquarters
and affiliated companies located within the headquarters premises.
Publication Dates
Current issue: June 2014
Next issue: June 2015 (planned)
Last issue: July 2013
Variations in Scope of Reporting
Nitec Mold Engineering, Inc., previously responsible for the manufacturing and sale of IMD molds in
the Industrial Materials business, discontinued operations as of June 30, 2013, due to a decline in
the significance of manufacturing IMD molds in Japan stemming from changes in businessstructure and the market environment, and a decrease in demand for general molds. Nissha(Kunshan) Precision IMD Mold Co., Ltd., a manufacturing subsidiary in China, will play a role as theprimary base for IMD mold manufacturing in the Nissha Group.
Editorial Policy

74

CSR Report 2014

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

Editorial Policy

75

CSR Report 2014

GRI Content Index
Nissha Printing Co., Ltd. has used the Global Reporting Initiative (GRI)’s Sustainability Reporting
Guidelines (G3.1) as a reference in compiling CSR Report 2013. We have conducted a self-checkof the extent to which the guidelines were applied in our reporting, employing the GRI Application
Levels. And we assess this report to meet the standards of GRI Application Level C.
The list of application level criteria and a GRI guidelines comparison table are given below.

G3 Performance
Indicators &Sector Supplement
Performance
Indicators

O
U
T
P
U
T

Not Required

Report fully on aminimum of any 10
Performance Indicators,
including at least one
from each of: social,economic, andenvironment.

B

B+

A

A+

Same as requirementfor Level B

Report on all criteria
listed forLevel C plus:
1.2
3.9, 3.13
4.5-4.13, 4.16-4.17
Management
Approach Disclosuresfor each Indicator
Category

Report fully on a minimumof any 20 Performance
Indicators, at least one
from each of: economic,
environment, humanrights, labor, society,product responsibility.

Management
Approach disclosed foreach Indicator
Category

Respond on each core G3and Sector Supplement*
indicator with due regard to
the Materiality Principle byeither: a) reporting on theindicator or b) explaining
the reason for its omission.

Report Externally Assured

G3 Management
Approach
Disclosures

O
U
T
P
U
T

C+

Report Externally Assured

G3 Profile
Disclosures

O
U
T
P
U
T

C
Report on:
1.1
2.1-2.10
3.1-3.8, 3.10-3.12
4.1-4.4, 4.14-4.15

Report Externally Assured

Standard Disclosures

Report Application Level*Sector supplement in final version

Item

Location in CSR report

Pages onPDF

CEO Message

2-3

1. Strategy and Analysis
1.1
1.2

Statement from the most senior decision-maker of the organization(e.g., CEO, chair, or equivalent senior position) about the relevance ofsustainability to the organization and its strategy
Description of key impacts, risks, and opportunities

GRI Content Index

76

CSR Report 2014

Item

Location in CSR report

Pages onPDF

2. Organizational Profile
2.1

Name of the organization

Company Outline

71-73

2.2

Primary brands, products, and/or services

Company Outline

71-73

2.3

Operational structure of the organization, including main divisions,operating companies, subsidiaries, and joint ventures

Company Outline

71-73

2.4

Location of organization s headquarters

Company Outline

71-73

2.5

Number of countries where the organization operates, and names ofcountries with either major operations or that are specifically relevantto the sustainability issues covered in the reportCompany Outline

71-73

2.6

Nature of ownership and legal form

Company Outline

71-73

2.7

Markets served (including geographic breakdown, sectors served, andtypes of customers/beneficiaries)

Company Outline

71-73

Scale of the reporting organization, including:・Number of employees;
・Number of operations;・Net sales (for private sector organizations) or net revenues (for public
2.8
sector organizations);
・ Total capitalization broken down in terms of debt and equity (forprivate sector organizations); and・Quantity of products or services provided

Company Outline

71-73

Significant changes during the reporting period regarding size,
structure, or ownership including:・The location of, or changes in operations, including facility openings,
2.9 closings, and expansions; and・ Changes in the share capital structure and other capital formation,
maintenance, and alteration operations (for private sector
organizations)

Editorial Policy

74-75

External Assessment

6-7

2.10 Awards received in the reporting period
3. Report Parameters
Report Profile
3.1

Reporting period (e.g., fiscal/calendar year) for information provided

Editorial Policy

74-75

3.2

Date of most recent previous report (if any)

Editorial Policy

74-75

3.3

Reporting cycle (annual, biennial, etc)

Editorial Policy

74-75

3.4

Contact point for questions regarding the report or its contents

Editorial Policy

74-75

Editorial Policy

74-75

Boundary of the report (e.g., countries, divisions, subsidiaries, leased
facilities, joint ventures, suppliers)

Editorial Policy

74-75

3.7

State any specific limitations on the scope or boundary of the report

Editorial Policy

74-75

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities,
outsourced operations, and other entities that can significantly affectcomparability from period to period and/or between organizations

Not applicable-

3.9

Data measurement techniques and the bases of calculations,
including assumptions and techniques underlying estimations applied
to the compilation of the Indicators and other information in thereport3.10

Explanation of the effect of any re-statements of information provided
in earlier reports, and the reasons for such re-statement (e.g.,
mergers/ acquisitions, change of base years/periods, nature ofbusiness, measurement methods)

Impact as a Result of Business Operations

40-41

3.11

Significant changes from previous reporting periods in the scope,boundary, or measurement methods applied in the report

Editorial Policy

74-75

This table; GRI Content Index

76-82

Report Scope and Boundary
Process for defining report content, including:・Determining materiality;
3.5
・Prioritizing topics within the report; and・Identifying stakeholders the organization expects to use the report

3.6

GRI Content Index
3.12 Table identifying the location of the Standard Disclosures in the report
Assurance
Policy and current practice with regard to seeking external assurance
for the report. If not included in the assurance report accompanying
3.13 the sustainability report, explain the scope and basis of any external
assurance provided. Also explain the relationship between thereporting organization and the assurance provider(s).

GRI Content Index

77

CSR Report 2014

Item

Location in CSR report

Pages onPDF

4. Governance, Commitments, and Engagement
Governance
4.1

Governance structure of the organization, including committees under
the highest governance body responsible for specific tasks, such as
setting strategy or organizational oversight

Corporate Governance

10-13

4.2

Indicate whether the Chair of the highest governance body is also an
executive officer (and, if so, their function within the organization s
management and the reasons for this arrangement)

Overview of Corporate Governance Structure

10-11

4.3

For organizations that have a unitary board structure, state thenumber and gender of members of the highest governance body thatare independent and/or non-executive members

CEO Message
Promotion of Diversity in the Boardroom
Composition of Nissha People

2-3
11
23

4.4

Mechanisms for shareholders and employees to provide
recommendations or direction to the highest governance bodyManagement and Business Execution System
Relationship with Labor Union

13
18

4.5

Linkage between compensation for members of the highest
governance body, senior managers, and executives (including
departure arrangements), and the organization s performance(including social and environmental performance)

Remuneration for Directors and Corporate Auditors

11

4.6

Processes in place for the highest governance body to ensure conflictsof interest are avoided

4.7

Process for determining the composition, qualifications, and expertiseof the members of the highest governance body and its committees,
including any consideration of gender and other indicators of diversity
Guideline of the Corporate Ethics and Compliance
Basic Policy on Labor and Human Rights
Human Resources Development Policy
Environmental Policy
Initiatives Related to Information Security
Basic Policy of Intellectual Property
Basic Purchasing Policy
Underlying Philosophy Concerning Corporate
Responsibility for Minerals Procurement
Quality Policy
Basic Social Contribution Policy

14
17
20
34
54
58
62

記載なし

-

記載なし

-

Explanation of whether and how the precautionary approach or
4.11
principle is addressed by the organization

Internal Control System
Monitoring and Prevention of Pollution

11-12
47-49

Externally developed economic, environmental, and social charters,
4.12 principles, or other initiatives to which the organization subscribes orendorses

CEO Message
United Nations Global Compact

2-3
8

4.14 List of stakeholder groups engaged by the organization

Approach to CSR

5-6

Basis for identification and selection of stakeholders with whom to
4.15
engageApproach to CSR

5-6

4.8

4.9

Internally developed statements of mission or values, codes ofconduct, and principles relevant to economic, environmental, andsocial performance and the status of their implementation

Procedures of the highest governance body for overseeing theorganization s identification and management of economic,
environmental, and social performance, including relevant risks andopportunities, and adherence or compliance with internationallyagreed standards, codes of conduct, and principles

Processes for evaluating the highest governance body s own
4.10 performance, particularly with respect to economic, environmental,
and social performance

63
65
69

Commitments to External Initiatives

Memberships in associations (such as industry associations) and/or
national/international advocacy organizations in which theorganization:
4.13 ・Has positions in governance bodies;・Participates in projects or committees;
・Provides substantive funding beyond routine membership dues; or・Views membership as strategic
Stakeholder Engagement

4.16

Approaches to stakeholder engagement, including frequency ofengagement by type and by stakeholder group

Key topics and concerns that have been raised through stakeholder
4.17 engagement, and how the organization has responded to those key
topics and concerns, including through its reporting

GRI Content Index78

CSR Report 2014

Item

Location in CSR report

Pages onPDF

5. Management Approach and Performance Indicators
Economic
Disclosure on Management Approach
Aspect: Economic Performance
Direct economic value generated and distributed, including
revenues, operating costs, employee compensation, donations
EC1 CORE
and other community investments, retained earnings, andpayments to capital providers and governments

Distribution of Added Value to Stakeholders

16

Impact as a Result of Business Operations

40-41

EN3 CORE Direct energy consumption by primary energy source

Impact as a Result of Business Operations
Prevention of Further Global Warming

40-41
42-44

EN4 CORE Indirect energy consumption by primary source

Impact as a Result of Business Operations
Prevention of Further Global Warming

40-41
42-44

Impact as a Result of Business Operations

40-41

EC2 CORE

Financial implications and other risks and opportunities for theorganization s activities due to climate change

EC3 CORE Coverage of the organization s defined benefit plan obligations
EC4 CORE Significant financial assistance received from government
Aspect: Market Presence
EC5 ADD

Range of ratios of standard entry level wage by gender comparedto local minimum wage at significant locations of operation

EC6 CORE

Policy, practices, and proportion of spending on locally-based
suppliers at significant locations of operation

Procedures for local hiring and proportion of senior management
EC7 CORE hired from the local community at locations of significant
operation
Aspect: Indirect Economic Impacts
Development and impact of infrastructure investments and
EC8 CORE services provided primarily for public benefit throughcommercial, in-kind, or pro bono engagement
EC9 ADD

Understanding and describing significant indirect economic
impacts, including the extent of impacts
Environmental

Disclosure on Management Approach
Aspect: Materials
EN1 CORE Materials used by weight or volume
EN2 CORE Percentage of materials used that are recycled input materials
Aspect: Energy

EN5 ADD Energy saved due to conservation and efficiency improvements
Initiatives to provide energy-efficient or renewable energy based
EN6 ADD products and services, and reductions in energy requirements asa result of these initiatives
EN7 ADD

Initiatives to reduce indirect energy consumption and reductions
achieved

Aspect: Water
EN8 CORE Total water withdrawal by source
EN9 ADD Water sources significantly affected by withdrawal of water
EN10 ADD Percentage and total volume of water recycled and reused
Aspect: Biodiversity
Location and size of land owned, leased, managed in, or adjacent
EN11 CORE to, protected areas and areas of high biodiversity value outside
protected areas
Description of significant impacts of activities, products, andEN12 CORE services on biodiversity in protected areas and areas of highbiodiversity value outside protected areas
EN13 ADD Habitats protected or restored
EN14 ADD

Strategies, current actions, and future plans for managing
impacts on biodiversity

Number of IUCN Red List species and national conservation list
EN15 ADD species with habitats in areas affected by operations, by level ofextinction risk

GRI Content Index

79

CSR Report 2014

Item

Location in CSR report

Pages onPDF

Impact as a Result of Business Operations
Prevention of Further Global Warming

40-41
42-44

Impact as a Result of Business Operations

40-41

Impact as a Result of Business Operations
Waste Management

40-41
45-46

Not applicable-Not applicable-Composition of Nissha People

23-24

Status of Major Long-term Leave
and Time Taken Off from Work

26-27

Relationship with Labor Union

18

Occurrence of Work-related Accidents

30

Mental Health Support

31-32

Aspect: Emissions, Effluents, and Waste
EN16 CORE Total direct and indirect greenhouse gas emissions by weight
EN17 CORE Other relevant indirect greenhouse gas emissions by weight
EN18 ADD

Initiatives to reduce greenhouse gas emissions and reductions
achieved

EN19 CORE Emissions of ozone-depleting substances by weight
EN20 CORE NO, SO, and other significant air emissions by type and weight
EN21 CORE Total water discharge by quality and destination
EN22 CORE Total weight of waste by type and disposal method
EN23 CORE Total number and volume of significant spills
Weight of transported, imported, exported, or treated waste
deemed hazardous under the terms of the Basel Convention
EN24 ADD
Annex I, II, III, and VIII, and percentage of transported waste
shipped internationallyIdentity, size, protected status, and biodiversity value of water
EN25 ADD bodies and related habitats significantly affected by the reportingorganization s discharges of water and runoff
Aspect: Products and Services
EN26 CORE

Initiatives to mitigate environmental impacts of products andservices, and extent of impact mitigation

EN27 CORE

Percentage of products sold and their packaging materials thatare reclaimed by category

Aspect: Compliance
Monetary value of significant fines and total number of
EN28 CORE non-monetary sanctions for non-compliance with environmental
laws and regulations
Aspect: Transport
Significant environmental impacts of transporting products andEN29 ADD other goods and materials used for the organization s
operations, and transporting members of the workforce
Aspect: Overall
EN30 ADD Total environmental protection expenditures and investments by type
Labor Practices and Decent Work
Disclosure on Management Approach
Aspect: Employment
LA1 CORE

Total workforce by employment type, employment contract, andregion, broken down by gender

LA2 CORE

Total number and rate of new employee hires and employee
turnover by age group, gender, and region

Benefits provided to full-time employees that are not provided to
LA3 ADD temporary or part-time employees, by significant locations ofoperations
LA15 CORE Return to work and retention rates after parental leave, by gender
Aspect: Labor/Management Relations
LA4 CORE Percentage of employees covered by collective bargaining agreements
Minimum notice period(s) regarding operational changes,
LA5 CORE
including whether it is specified in collective agreements
Aspect: Occupational Health and Safety
Percentage of total workforce represented in formal joint
LA6 ADD management– worker health and safety committees that help
monitor and advise on occupational health and safety programs
LA7 CORE

Rates of injury, occupational diseases, lost days, and absenteeism,and total number of work-related fatalities, by region and by gender

Education, training, counseling, prevention, and risk-control
LA8 CORE programs in place to assist workforce members, their families, orcommunity members regarding serious diseases
LA9 ADD

Health and safety topics covered in formal agreements withtrade unions

Aspect: Training and Education
LA10 CORE

Average hours of training per year per employee by gender, andby employee category

Programs for skills management and lifelong learning that
LA11 ADD support the continued employability of employees and assist
them in managing career endings
LA12 ADD

Percentage of employees receiving regular performance andcareer development reviews, by gender

GRI Content Index

80

CSR Report 2014

Item

Location in CSR report

Pages onPDF

Composition of Nissha People

23-24

Promotion of CSR Procurement

60-61

Not applicable-

Aspect: Diversity and Equal Opportunity
Composition of governance bodies and breakdown of employees
LA13 CORE per employee category according to gender, age group, minority
group membership, and other indicators of diversity
Aspect: Equal Remuneration for Women and Men
LA14 CORE

Ratio of basic salary and remuneration of women to men by
employee category, by significant locations of operation
Human Rights

Disclosure on Management Approach
Aspect: Investment and Procurement Practices
Percentage and total number of significant investment agreements
HR1 CORE and contracts that include clauses incorporating human rights
concerns, or that have undergone human rights screening
Percentage of significant suppliers, contractors, and other
HR2 CORE business partners that have undergone human rights screening,
and actions taken
Total hours of employee training on policies and procedures
HR3 CORE concerning aspects of human rights that are relevant tooperations, including the percentage of employees trained
Aspect: Non-Discrimination
HR4 CORE Total number of incidents of discrimination and corrective actions taken
Aspect: Freedom of Association and Collective Bargaining
Operations and significant suppliers identified in which the right to
HR5 CORE exercise freedom of association and collective bargaining may beviolated or at significant risk, and actions taken to support these rights
Aspect: Child Labor
Operations and significant suppliers identified as having
HR6 CORE significant risk for incidents of child labor, and measures taken tocontribute to the effective abolition of child labor
Aspect: Forced and Compulsory Labor
Operations and significant suppliers identified as having significant
HR7 CORE risk for incidents of forced or compulsory labor, and measures tocontribute to the elimination of all forms of forced or compulsory labor
Aspect: Security Practices
Percentage of security personnel trained in the organization s
HR8 ADD policies or procedures concerning aspects of human rights thatare relevant to operations
Aspect: Indigenous Rights
HR9 ADD

Total number of incidents of violations involving rights ofindigenous people and actions taken

Aspect: Assesment
HR10CORE

Percentage and total number of operations that have been
subject to human rights reviews and/or impact assessments

Aspect: Remediation
HR11CORE

Number of grievances related to human rights filed, addressed
and resolved through formal grievance mechanisms
Society

Disclosure on Management Approach
Aspect: Local Communities
SO1 CORE

Percentage of operations with implemented local community
engagement, impact assessments, and development programs

SO9 CORE

Operations with significant potential or actual negative impacts
on local communities

SO10 CORE

Prevention and mitigation measures implemented in operations withsignificant potential or actual negative impacts on local communities

Aspect: Corruption
SO2 CORE

Percentage and total number of business units analyzed for risks
related to corruption

SO3 CORE

Percentage of employees trained
anti-corruption policies and proceduresinorganization s

SO4 CORE Actions taken in response to incidents of corruption
Aspect: Public Policy
SO5 CORE

Public policy positions and participation in public policy
development and lobbying

SO6 ADD

Total value of financial and in-kind contributions to politicalparties, politicians, and related institutions by country

Aspect: Anti-Competitive Behavior
SO7 ADD

Total number of legal actions for anti-competitive behavior,anti-trust, and monopoly practices and their outcomes

Aspect: Compliance
Monetary value of significant fines and total number of
SO8 CORE non-monetary sanctions for non-compliance with laws andregulations

GRI Content Index81

CSR Report 2014

Item

Location in CSR report

Pages onPDF

Quality and Safety of Products

68

Quality and Safety of Products

68

Product Responsibility
Disclosure on Management Approach
Aspect: Customer Health and Safety
Life cycle stages in which health and safety impacts of products and
PR1 CORE services are assessed for improvement, and percentage of significant
products and services categories subject to such procedures
Total number of incidents of non-compliance with regulations
PR2 ADD and voluntary codes concerning health and safety impacts ofproducts and services during their life cycle, by type of outcomes
Aspect: Product and Service LabelingType of product and service information required by procedures,
PR3 CORE and percentage of significant products and services subject tosuch information requirements
Total number of incidents of non-compliance with regulations
PR4 ADD and voluntary codes concerning product and service informationand labeling, by type of outcomes
PR5 ADD

Practices related to customer satisfaction, including results ofsurveys measuring customer satisfaction

Aspect: Marketing Communications
Programs for adherence to laws, standards, and voluntary codes
PR6 CORE related to marketing communications, including advertising,promotion, and sponsorship
Total number of incidents of non-compliance with regulations andPR7 ADD voluntary codes concerning marketing communications, including
advertising, promotion, and sponsorship by type of outcomes
Aspect: Customer Privacy
PR8 ADD

Total number of substantiated complaints regarding breaches ofcustomer privacy and losses of customer data

Aspect: Compliance
Monetary value of significant fines for non-compliance with laws
PR9 CORE and regulations concerning the provision and use of products
and services

GRI Content Index82

CSR Report 2014