CSR 2013

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
24
26

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

29
30
33
36
38
41
44
46
49

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

52
53
56
58
60
63

Consumer Issues

64

Community Involvement and Development

68

Company Outline

70

Editorial Policy73

GRI Content Index

75

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CEO Message
Business Activities Based on Printing Technology as a Core
"We are committed to pursuing a mutually trustful co-existence withsociety through our business activities utilizing a unique technology
development, based on Printing as a core"—this Corporate Mission
serves as the bedrock of business activities at Nissha. Our founder
was not satisfied with being a mere typeset printer, and embarked
to pursue high-quality photographic printing that no othermainstream company at the time could compete with. He started
the business of artistic printing, which later led to world recognitionof the company for its fine art printing. In more recent years, taking
note that much of our social life is shaped by elements such ascolor, design, and function, we aspired to expand beyond
traditional printing on paper into new business fields like decorating
three-dimensional plastic products and creating touch panels. And
by offering truly unique solutions based on printing technologies, we have achieved growth in the
global market.
Cultivating New Domains of Printing Technologies
In the backdrop of this growth is the Nissha spirit, or our DNA, of doing what no others can do andprinting on everything but water and air. The proprietary printing technologies we have developed
over the years are indeed our core competency.
In fiscal year 2013, we launched the Fourth Medium-term Business Plan covering the three-year
period up to fiscal year 2015. Our Mid-term Vision is to “develop cutting-edge printing technologies
and create an array of exceptional products that fundamentally redefines value for our customers.”
That is, by further exploring and evolving the proprietary printing technologies we have cultivated
up to now, we seek to create new products and new value, and thereby contribute to society.
Aiming to be a Company Needed by Global Society
We believe a company's business activities must at the same time present social value. That we
observe laws and regulations and embrace a high sense of ethics, that management exercises
strong governance, and that production gives consideration to the sustainability of natural
resources goes without saying. But in addition to these essentials in conducting business, acompany is also required to create value that leads to a solution to society's issues.
In expanding our business domains, we at Nissha are working to grasp the changing needs ofsociety and create solutions to issues in three target areas: information-oriented society, lifestylesupport, and sustainable society.
Ever since they were first invented, printing technologies have enriched people's lives. And webelieve that printing still offers countless possibilities across an infinite spectrum. Our wish, and our
mission, is to make people’s lives more convenient, more comfortable, and more enriched through
Nissha's technologies, products, and services.
Creating a Solid Foundation
The growth of employees is indispensable to the growth of the company. We at Nissha believe our
employees are our most important management resources. We train our employees, support
career development, and promote the creation of comfortable working environments. On the other
CEO Message

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hand, we recognize many challenges and the need to further our efforts in maximizing a potential of
human resources from diverse background.
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. To this end, we are working topromote both within and outside the company the respect of human rights and the prohibition ofchild labor, forced labor, and corrupt practices, which we cite as important points in our Guideline of
the Corporate Ethics and Compliance, on top of the environment-related initiatives we alreadycontinue to implement as a manufacturing company.
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 to reflect your voices
in our business activities. This CSR Report, 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.
Our stagnant business performance has been a cause for concerns to our stakeholders.
Management and employees are working as one to swiftly return Nissha to the black and into a
growth path, aiming to enhance Nissha’s economic value and also to being a company that cancreate value for society. We look forward to your continued understanding and support.
June 2013
President and CEO
Representative Director of the Board

CEO Message

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CSR Report 2013

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.

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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

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Society
We aim for widespread “Co-Existence” based on relationships of mutual trust with society. We
promote communication with local communities not only to fulfill our basic responsibilities as acorporation but also to be a company that is needed by society.
Employee
We pursue the creation of safe, comfortable workplaces as well as offer support for diverse work
styles. We believe that our employees are our most important management resource, and aim
to achieve growth for both the company and our employees.

External Assessment
Recipient of Partner Award as a Supplier
The Nissha Group company Southern Nissha Sdn.
Bhd., in Malaysia, has received a Partner Award fromSony EMCS (Malaysia) Sdn. Bhd. The award waspresented in fiscal year 2013 to suppliers thatexcelled in the areas of QCDS+E (Quality, Cost,
Delivery, and Support + Environment).
We plan to keep up our efforts and continue to deliver
value that meets our customers' nees.

Awarded for Wealth of IR Information
In fiscal year 2013, we won four website ranking awards sponsored by IR consultancies inrecognition of the wealth of IR information disclosed on the Nissha website.
Nissha IR site http://www.nissha.co.jp/english/ir/
Nikko Investor Relations Co., Ltd. "FY2013 Listed Companies Website Completeness Ranking
Survey"General Ranking: Most Outstanding
Website Award (Ranked 114th out of
3,570 listed companies)

Industry-specific Ranking: Outstanding
Website Award (Ranked 3rd in the all
Other Manufacturers category)

Daiwa Investor Relations Co., Ltd. "Internet IR Awards 2012"
Commendation Award(Out of all 3,593 listed companies, 4 won the Grand Prize, 117 the Excellence Award, and 118
including Nissha the Commendation Award)

Approach to CSR

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Morning Star Japan K.K. "Gomez IR Site Ranking 2012"
Bronze Award (Ranked 136th out of all listed companies)

Approach to CSR

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CSR Report 2013

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 and participate 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.

United Nations Global Compact

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CSR Report 2013

Organizational GovernanceCorporate 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
2013.

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CSR Report 2013

Corporate GovernanceApproach to Corporate Governance
Our Corporate Mission involves the widespread promotion of co-existence based on relationships
of mutual trust with society through the fulfillment of our social responsibilities as a corporation andthe implementation of fair business activities. In order to achieve this, we believe that theenhancement of corporate governance in accordance with laws and social ethics is an absolutenecessity.
We have in place a variety of compliance codes, including a Guideline of the Corporate Ethics andCompliance, designed to serve as codes of conduct for the observance of laws, regulations,bylaws, and social norms. In addition, we also define our Shared Values and have established a
Code of Conduct, an Environmental Policy, and an Information Security Policy in order to achieve
co-existence with all the stakeholders of our group.
We promote the enhancement of our corporate governance structure through the attendance ofoutside directors and outside corporate auditors in Board of Directors’ meetings.
Overview of Corporate Governance Structure
Directors and the Board of Directors
Our Board of Directors consists of seven members including two 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. The board convenes for regularmeetings once a month, and for extraordinary sessions when necessary, to receive reports on theexecution of business activities and make important decisions regarding business plans andpolicies. The president chairs the board meetings.
Corporate Officer System
We adopt a corporate officer system to separate 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 Monthly Business Review (MBR)
meetings to report on the status of business activities and confirm that they are progressing
according to plan.
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 these, performs audits on the legality and appropriateness of duties executed by directors.
Corporate auditors monitor and verify that directors are performing their duties in accordance with
the internal control system, and monitor accounting auditors to ensure independence and progressin the execution of their duties. They also hold regular meetings with the president, accounting
auditors, internal audit-related divisions, and internal control-related divisions in efforts to foster
close lines of communication.
The work of corporate auditors is supported by the Auditors’ Office, which is under the authority of
the Board of Corporate Auditors and functions independently of the Board of Directors.
Role and Function of Outside Directors and Outside Corporate Auditors
The role of outside directors is to strengthen management’s ability to supervise the actions ofCorporate Governance

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directors in regard to the appropriate execution of business activities. The role of outside corporate
auditors is to ensure the objectivity and effectiveness of audits.
By attending Board of Directors’ meetings and offering their opinions, outside directors and outside
corporate auditors also reinforce the corporate governance structure.
By adopting this corporate governance structure and ensuring that it functions, we strive toenhance management efficiency, strengthen management oversight 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 shareholders’ meeting (an annual maximum total of 430 million yen for
directors and 50 million yen for 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 director’s role and his position, and determined by the president
based on an evaluation of the individual’s contribution and performance. Bonuses are determinedby the president and correspond to the degree of success in achieving performance targets basedon 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 set for outside
directors, taking into account factors such as the individual’s business experiences.
Remuneration for corporate auditors is determined by negotiation with the corporate auditors.

Total Remuneration and Number of Board Members

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 Law and theOrdinance for Enforcement of the Companies Law.
To ensure reliable financial reporting in response to the internal control reporting system introducedby the Financial Instruments and Exchange Act, 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 and investors.
The Disclosure Control Committee ensures that corporate information is disclosed fairly, swiftly,
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 and operates anappropriate disclosure structure.
Risk Management
The Nissha Group promotes risk management to counter 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.
In fiscal year 2013, we continued in our efforts to enhance our comprehensive risk management
capabilities.
The Risk Management Committee, headed by the Vice President of Administration, is comprised ofgeneral managers of business units and managers responsible for risk management at
departments. Having defined risks that may have a significant impact on our business activities as

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"any thing or situation that hinders Nissha’s implementation of the Corporate Mission, the results ofthat thing or situation, or the possibility of its occurring," 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. This fiscal year, the committee
also deliberated on and drew up a new risk management procedure so that it may select serious
risks that must be addressed in the medium to long term, without being influenced by short-term
challenges.
In the area of corporate ethics and compliance, we are carrying on our efforts from last year to set
aside time dedicated to compliance promotion, during which we offer group-wide training to
improve the awareness of all employees. After training, we check the employees’ understanding
and awareness through a questionnaire, and reflect the results in the program for the next year.
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 and related codes. In fiscal year
2013, we also examined each base’s risks associated with power shortage, and reflected theresults in the plan. Furthermore, we organize lectures and training not only for employees
responsible for fire prevention at workplaces but also management, and are continuing to learn anddeepen our knowledge about the importance of being prepared and having countermeasures fordisasters that may occur in the future.
Initiatives in Internal Auditing
The Internal Audit, to maintain impartiality and objectivity in its functions, serves as an independent
corporate staff organization in auditing whether business activities are carried out appropriately andefficiently in accordance with the annual auditing plan, and offers advice and recommendations tointernal organizations. The office makes reports and offers suggestions based on the results of its
audits to the president at monthly meetings, and presents particularly important matters at Board of
Directors’ meetings. It conducts follow-up audits to confirm how each issue that has surfaced
through the audits is improving, and reports the results to the president. Furthermore, it holds
meetings with full-time corporate auditors every two months to establish mutual cooperation with
the Board of Corporate Auditors.
In fiscal year 2013, operating audits focused on inventory assets, fixed assets, and labor
management, and internal audits on the ringi approval system, trade management, and quality
control, while monitoring the progress of audits in fiscal year 2012 and earlier on risk management,
human resources development, and the business continuity plan. 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 andExchange Act.

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Nissha’s Management and Business Execution System

Corporate Governance

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Corporate Ethics and Compliance
Guideline of the Corporate Ethics and ComplianceIn addition to establishing a basic guideline based on the Nissha Group's Corporate Mission,
Shared Values, 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.
We designate every October as a month dedicated to corporate ethics and compliance, during
which we offer group-wide training. In fiscal year 2013, managers and group leaders in charge ofcorporate ethics and compliance at all bases in Japan and abroad led study sessions based on
training material incorporating the 13 important points.

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

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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 to
specific cases, and even take on the role of consultant in their workplace.
Corporate Ethics and Compliance Structure

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CSR Report 2013

Distribution of Added Value to Stakeholders
Our fiscal year 2013 distribution of added value to stakeholders is given in the table below.
Compared to last year, dividends decreased for Shareholders and Government agencies, as well
as for Company, due to stagnant performance.

Distribution of Added Value to Stakeholders

Distribution of Added Value to Stakeholders

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CSR Report 2013

Human Rights
Respect for Human Rights and Anti-Discrimination
We at Nissha advocate "a mutually trustful co-existence" in our Corporate Mission, and set forth
our approach to corporate ethics and compliance in our Guideline of the Corporate Ethics andCompliance. One of the guideline’s key items, "respect for human rights," states that we will
respect human rights and the various values and personalities of each other, that we will respectprivacy, and that we will not discriminate, or violate child labor laws, or force one to work against
his or her will, or commit sexual harassment or abuses of authority. Moreover, our Shared Values,
which stipulate the code of behavior of Nissha People, declare that we "face global challenges with
an open mind."
In April 2012, we joined the United Nations Global Compact. Having declared in our Corporate
Ethics and Compliance Manual that we support and will make continuous efforts to practice theinitiative’s 10 principles in the areas of human rights, labor, the environment, and anti-corruption,
we are working to promote awareness among all employees.

Guideline of the Corporate Ethics and Compliance "Respect of Human Rights"
1. We will respect human rights and the various values and personalities of each other.
2. We will respect privacy and will not discriminate on the ground of race, skin color, belief,religion, nationality, age, sex, origin, physical disability, sexual preference, family structure, etc.
In addition, we will not violate child labor laws and will not force one to work against his or her
will.
3. We will not engage in sexual harassment and/or abuses of authority nor will such acts betolerated.

The employment regulations of each company in the Nissha Group prohibit discriminatory
treatment due to nationality, faith, gender, or social status.

Employment Regulations (excerpt)
Article 3: Employees shall not receive discriminatory treatment due to nationality, faith, gender,or social status.

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. It
serves as the Nissha Group's channel for reporting in line with the Whistleblower Protection Act,and may be used by all employees including dispatch and part-time workers.
In fiscal year 2013, the Nissha Hotline was used one time. The report concerned labor

Human Rights

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management. We are working to enhance employee awareness of this Nissha Hotline, in addition
to reporting instances to their immediate supervisor or to the person in charge at Corporate Human
Resources, in order to further reinforce corporate ethics and compliance.

Relationship with Labor Union
Nissha Printing Co., Ltd. has a solid relationship with the Nissha Labor Union, joined by employees
excluding managerial staff*1. 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, a Nitec Industries Labor Union was organized at affiliated company
Nitec Industries, Inc.*2
The labor contract confirms, "the Company and the Union shall respect one another’s position andmaintain a peaceful relationship between labor and management as well as strive for the
maintenance and improvement of labor conditions and the growth of the Company," and stipulates,"the Company shall respect the Union’s right to organize, right to collective bargaining, and right to
act as a group," thereby guaranteeing basic labor rights for union members.
In fiscal year 2013, 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 2013, the Nissha Labor Union has a membership of 952.
*2. As of the end of March 2013, the Nitec Industries Labor Union has a membership of 467.

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Labor Practices
Human Resources Development
We believe that our employees are our mostimportant management resource, andpromote comprehensive education with theaim of achieving growth for both the company
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, achieve work-life balance for our
employees, 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.

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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 approach human resources development from the three areas of "planned human resource
development," "skill development," and "career development." For each area, we aim to promotecomprehensive education incorporating the perspectives of training system, on-the-job training(OJT), medium- to long-term career path development, and the improvement of 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

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→The company supports this and thereby enhances the quality of its human resources
Career development
Support medium- to long-term career development and promote growth toward employees’
ideals(Provide opportunities to recognize the importance of and pursue career development)

Company-wide Training Programs
In accordance with our approach to human resources development, we aim to continuously expand
our training program, which includes rank-specific training, theme-specific training, and foreign
language training programs.
Area

Programs

Planned humanresource development

Rank-specific training, managerial staff training, selective training(e.g., for next-generation leader candidates), training for employees
stationed overseas, etc.

Skill development

Theme-specific training (e.g., Leadership, problem-solving skills),
foreign language training, accounting education, in-house TOEIC
testing, e-learning, etc.

Career development

Young employee education by year of employment (for first-,
second-, and third-year employees), career development training,etc.

In fiscal year 2013, we started a new accounting education program, which provides knowledge
about accounting and costs.
The program aims to spark an interest in employees about the figures associated with company
management, and to enable them to perform their job with a higher awareness of financial affairs. It
offered young employees in the marketing and sales, procurement, engineering, and development
departments the opportunity to learn the basics of accounting and costs, and also fostered young
employees in the finance department through the chance to act as instructor.
Department-specific Human Resources Education
In addition to enriching our company-wide training programs, we are also working to educate
human resources at the department level.
In fiscal year 2013, we focused particularly on educating human resources in the research anddevelopment department, the procurement department, and overseas companies. We are
implementing programs that link training with practical action.
For the research and development department, we are implementing marketing training for young
engineers. In an aim to accelerate our efforts in developing new businesses, a major component of
the Medium-term Business Plan, we are providing young engineers with the knowledge to develop
products with a perspective of Market-in. The employees do not learn mere theory but holddiscussions with personnel in charge of marketing and apply what they have learned in planning
actual products.
For the procurement department, we are conducting workshops to deepen knowledge about the
department’s role and teaching the required knowledge (in quality, costs, and materials) and skills(in negotiation) in accordance with a department-specific human resources development policy. In
fiscal year 2014, we plan to expand the training to also offer experience in fostering humanresources.
For overseas companies, we implemented Nissha China Manager training at four local
incorporated companies in China. Targeting young managers, the program consisted of lecturesand exercises on the knowledge and skills required of a manager to formulate strategies for a

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company in China. Getting together and holding discussions with members from multiple bases
and departments has encouraged the managers at each company to promote business as one. We
plan to draw up department-specific strategies and implementation items based on this training
program.
In fiscal year 2014, we will continue to pour our energy into both company-wide and departmentspecific human resources development.

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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. Non-Japanese employees make up one-fourth of our work force.
Employees of Nissha Group in Japan

Note 1: Directors includes two outside directors.
Note 2: Nissha Group employees (total) includes overseas group companies.

FY2013 breakdown by nationality (Nissha Group)

FY2013 breakdown by employment status (Nissha Group)(As of March 31, 2013)

Ratio 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 an
understanding about the employment of people with disabilities.

(As of March 31, 2013)

Respect for Diversity

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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, andenabling employees to maintain harmony between work and life. Employees at departments inwhich flexible work hours are adopted generally welcome the system, as it enables them to work
more efficiently. In fiscal year 2013, we expanded the system to other departments.
Reduction of Overtime WorkWe are promoting a reduction of overtime work with the aim of encouraging employees to change
their work process and the way they manage their time, and thereby achieve work-life balance. To
raise employee awareness, we operate a website on our intranet that introduces the activities ofeach department related to the reduction of overtime work.
Promotion of the Use of Paid Leave
To promote the use of paid leave, in fiscal year 2012 we offered a winter vacation planning system
in addition to the summer vacation planning system, and increased from one to two the number ofdays per year in which employees may request to take paid leave on their birthday, that of a family
member, or their wedding anniversary. As a result of these initiatives, the rate of paid leaveacquisition increased from 57.8% in fiscal year 2012 to 58.1% in fiscal year 2013.
Child-rearing and Family Care Support
In our efforts in child-rearing and family care support, we have extended theduration in which employees may shorten their work time for child-rearing toMarch 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 tothree hours (from two hours before revision).
As a result, in 2013 we received “Kurumin” certification for the second
consecutive term, following 2009.

Kurumin Mark*Use of the Kurumin Mark is permitted for companies certified as being next-generation supportive by the
Minister of Health, Labour and Welfare.

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Status of Long-term Leave and Time Taken Off from Work in Fiscal Year 2013

(Scope of data: Nissha Group in Japan)

Reinstatement rate after child-rearing leave *1: 100%
Retention rate after child-rearing leave (1 year) *2: 84.6%*1. 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*2. Retention rate = Number of employees remaining on March 31 the current fiscal year after being
reinstated after child-rearing leave in the previous fiscal year ÷ Number of employees reinstated after childrearing leave in the previous fiscal year

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.
Career Development Support
The Nissha Group introduced in fiscal year 2012 an internal recruitment system through which thecompany makes an internal call for human resources to fill a specific position, and employees whomeet the criteria apply for that position of their own will. The system aims to provide opportunities
for employees to choose their career path, and to assign personnel to positions that reflect theiraptitudes and fortify the company’s organizational strength. In fiscal year 2013, four employees
passed the screening for seven calls. These employees have been transferred and are currently
playing an active role in their new departments.
We also have other initiatives to support career development, such as training programs to help
employees map a career path and a system in which superiors offer guidance and advice throughthe setting and evaluation of goals tailored to each employee.
Awarding System
The Nissha Group has in place a variety of awards. By clarifying behavior that merits recognition by
the company, and announcing widely throughout the organization events that correspond to that,
we aim to applaud the award-winning individuals or bases and raise motivation across the group. In
fiscal year 2013, we reformed the contents of the system. Specifically, we redefined the President’sAward, and established two new awards: the Top Line Award, which is presented to employees
who deliver special results that contribute to improved performance, and the Nissha People Award,
which praises workplace heroes who personify the spirit of Nissha’s Shared Values and Code of
Conduct. In the first ceremony, awards were presented to 50 employees.

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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 Structure
The Corporate Safety and Health Committee oversees the Safety and Health Subcommittees
operated by each base, and undertakes the role of a corporate-wide function that works tostandardize and upgrade initiatives throughout the Nissha Group.
The Safety and Health Subcommittees implement planned initiatives for all employees, such asactivities and education for achieving their Safety and Health Objectives. The Corporate Safety and
Health Committee receives reports on these initiatives and ensures the sharing of information andthe horizontal implementation of improvement and accident prevention measures.

Safety and Health Management Structure

Safety Patrols
Selected members of the Safety and Health Committee (representatives of the company and of
employees) list up key challenges and inspection items from various viewpoints, such as whether
there are any hidden risk factors and whether dangerous work processes are not employed, andconduct patrols of workplaces according to an annual plan. The members strive to patrol
workplaces and bases they are not ordinarily in charge of, and exchange views to improve eachother’s level of inspection.

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Occurrence of Work-related Accidents
Occurrence of work-related accidents on each fiscal year (scope of data: Nissha Group in Japan)*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
In April 2012, we standardized the safety and health education items required in conducting our
production and other business activities in a set of Safety and Health Education and Management
Regulations.
In the first year of implementation, fiscal year 2013, we set forth an education plan for each Safety
and Health Subcommittee and provided various training programs such as recruitment, risk
assessment, organic solvent, facility introduction, mental health, physical health, and fire anddisaster prevention education.
Organic solvent education was conducted in collaboration with departments responsible fordisaster prevention, as it covers training in hazardous material management. The program proved
to be a synergistic opportunity in which all participants were able to deepen their understanding
from their respective points of view.

Training Workshop

Prevention of Lifestyle Diseases
We are carrying on with our efforts in exercise, diet,and smoking cessation as countermeasures formetabolic syndrome with the aim of preventing
lifestyle diseases. In fiscal year 2013, we promoted
lifestyle disease prevention under the theme ofhealthy diet, and provided opportunities to learn
about healthy eating habits suited to individual
lifestyles.
As a main initiative for deepening understanding
about a well-balanced diet, we organized a "healthyeating habits" lecture by industrial physicians andLecture Class

introduced its contents through posters, and invited outside lecturers to hold a seminar titled "soundhealth plan," which gave tips to consuming fewer calories effortlessly on a continuous basis.
As a high-risk approach, we also undertook measures to maintain health by recommending visits to
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a 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 toprovide mental health education inviting a clinicalpsychologist. In fiscal year 2013, the initiative focusedsolely on self-care education, consisting of basic
knowledge in four stress management techniques toprotect the mind and body from stress.
Also in fiscal year 2013, we introduced a survey on
coping with work-related stress as part of our mental
health checkup offering, and thereby created a newmechanism for employees to understand their own
Mental Health Workshop
stress. We plan to expand further on initiatives that
may be employed in self-care in future.
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 the recurrence of illness
or injury and achieve a smooth return to work.
This fiscal year marks the sixth year since we launched the web counseling service, through whicha specialized counselor offers mental health advice online.

Mental Health Support Structure

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The Environment
Policy and Management Structures
We revised the Environmental Policy in April
2012, and also reviewed our environmental
objectives consisting of quantitative target
values. We are working to achieve theseobjectives employing an environmental
management system.

Objectives and Status of Achievement
This section reports on the Nissha Group’s
environmental objectives and on the status of
their achievement in fiscal year 2013.

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 2013.

Environmental Accounting
This section sums up environmental
conservation costs for Nissha bases in Japan
in fiscal year 2013, and reports on our outlook
for the future.

Prevention of Further Global Warming

Waste Management

In fiscal year 2013, CO2 emissions fromNissha bases in Japan increased 0.7% yearon-year, while those from overseas bases
decreased 1.1%. This section reports on the
major causes for the increase and about ourmanagement by basic unit.

In fiscal year 2013, waste generated at
Nissha bases in Japan increased 8% yearon-year. This section reports on the major
causes for the increase and about our
promotion of and risk management related torecycling and converting waste into valuable
resources.

Monitoring and Prevention of Pollution

Status of Waste Generation at Bases

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

The Environment

This section uses graphs to introduce thestatus of waste generated at Nissha’s major
production bases in Japan in March 201329

CSR Report 2013

Policy and Management Structures
Policy and Management Structures
We revised our Environmental Policy in April 2012, and are working to familiarize it widely
throughout the company via our intranet as well as promoting it among all employees by posting
the policy at each base of the Nissha Group. In line with the revision, we have also reviewed ourenvironmental objectives consisting of quantitative target values. To achieve these environmental
objectives, each factory and organization sets its own environmental targets and creates an action
plan toward operating an environmental management system (EMS). These environmental targets
are linked to quality targets and the more important key performance indicators (KPI).
The Nissha Group environmental management structure comprises the president as generalsupervisor, a corporate officer who is the general manager of Corporate Administration in charge of
EMS management, and members of the Environmental Conservation Committee selected fromeach department and factory. The environmental group of Corporate Administration functions as agroup-wide secretariat and works toward the continuous improvement of our EMS such as byresponding to inquiries from each base, operating the Environmental Conservation Committee,
conducting internal environmental audits, and organizing management reviews by the Environment
System Committee.

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.
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.
Date of establishment: April 1, 2012

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Improvements in the Environmental Management System (EMS)
In fiscal year 2013, we set out to improve our EMS. Whereas all sites of the Nissha Grouppreviously obtained ISO 14001 certification, we changed the scope of application and establishedfour categories into which our sites will be divided.
1. ISO 14001 certified sites
2. ISO 14001 non-certified operation control and inspection sites
3. Compliance inspection sites
4. Chemical substance control and inspection sites
The idea is to clarify the priority control items of each site’s initiatives, and thereby create a sharper
EMS. Of the four categories, ISO 14001 certified sites are working to prevent and mitigate risks
through the introduction of a unique environmental risk assessment process based on
environmental hazards, taking into account the risks of a suspension in factory operations. The
start of mass production at Nitec Precision and Technologies, Inc. (NPT) Himeji Factory in fiscal
year 2013 resulted in an increase in energy use and waste volume, and presented a major change
in the Nissha Group’s environmental initiatives. In an aim to win further trust from our stakeholder,
NPT Himeji Factory plans to obtain ISO 14001 certification in fiscal year 2014.

Nissha Environmental Management Structure

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Energy Management and Environmental Communication Structures

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Objectives and Status of Achievement
The Nissha Group environmental objectives revised in May 2012 serve as group-wide mediumterm objectives covering the three-year period until fiscal year 2015. In the first year of
implementation, fiscal year 2013, each implementing unit set individual environmental targets andworked to achieve the group-wide environmental objectives.
In initiatives to prevent global warming, although CO2 emissions increased for the Nissha Group asa whole due to full-scale mass production starting at Nitec Precision and Technologies, Inc. (NPT),
we achieved the group-wide target in terms of CO2 emissions rate, which indicates the ratio ofemissions by production volume.
We did not achieve the target of reducing the organic solvent usage rate due to declines in
production volume and small production lots at Nitec Industries, Inc. (NII). Neither did we achieve
the group-wide target of selling waste for recycling, despite the progress made by NII to sell waste
solvents for recycling. On the other hand, thanks to creative efforts at production sites—such as theinstallation of a measuring device to control power consumption at NII Koka Factory, the updatingof hot and cold water pumps to an energy-saving type and the use of heat-resistant paint at Nitec
Precision Inc. (NPI) Kaga Factory, and insulation work on drying equipment at Nitec Printing Co.,
Ltd. (NPC) Yachiyo Factory—we saw significant results in conserving energy. Apart from these inhouse initiatives, we also implemented audits of suppliers and conducted environmental workshops
in which employees visit local elementary schools and nurseries.
Nissha Environmental Objectives (April 2012-March 2015)
Scope: Nissha Group in Japan (hereinafter "Nissha")
1. Prevention of global warming
Base: Average of fiscal year 2012 results
Reduce CO2 emissions rate (basic unit) by 3% or more by fiscal year 2015 across Nissha(1) Nissha Printing Co., Ltd. (headquarters and division headquarters), group companies, and factories
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) andquality* Companies classified as "specific business operator" in the Act on the Rational Use of Energy use thebasic unit reported under the act* Division headquarters may set targets based on floor area or number of employees

2. Reduction of waste
Base: Average of fiscal year 2012 results
Reduce waste generation rate (basic unit) by 3% or more by fiscal year 2015 across Nissha(1) Control waste generation
Nissha Printing Co., Ltd. (headquarters and division headquarters), group companies, and factories
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* Targets are set based on the same indicators as the CO2 emissions rate basic unit
* Factories may set targets based on the ratio of nonconforming products or go-through ratio(2) Promote the selling of waste for recycling
Division headquarters and factories set individual target rates and work to sell waste for recycling* Maintain zero emissions

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3. Reduction of hazardous chemical substances(1) Control and reduce chemical substances in products (Based on the Nissha Group's Control Criteria
for Environmental Management Substance [latest edition])
Prohibited substances: Maintain zero inclusion
Regulated substances: Reduce inclusion by using substitutes* Relevant organizations set targets after fiscal year 2014 according to fiscal year 2013 results(2) Reduce organic solvent usage rate at factories and development departments
Work to reduce {(usage or purchase volume) / (production or treatment volume)} (factories set individual
targets)

4. Environmental conservation activities at KPI
Environment enhancement at each function of development, design, purchase of materials and submaterials, production, transport, and sales(1) Design environment-conscious products(2) Provide environment-conscious services(3) Select environment-conscious materials, sub-materials, production methods, and logistics(4) Install environment-conscious equipment

Status of Achievement
Prevention of global warming
Base: Average of fiscal year 2012 results (Compliant with the Act on the Rational Use of Energy)
Reduce CO2 emissions rate (basic unit) by 3% or more from fiscal year 2012 levels by fiscal year
2015 across Nissha

Reduction of waste
Base: Average of fiscal year 2012 results
Reduce waste generation rate (basic unit) by 3% or more by fiscal year 2015 across Nissha

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Reduction of organic solvent usage rate

Environmental conservation activities through efforts in daily work
Environmental enhancement at each stage of development, product design, purchase of materials
and sub-materials, production, transport, and sales

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Impact as a Result of Business Operations
We strive to identify the impact of our business operations on the environment in terms ofresources and energy usage (input) and gas, water, and waste emissions (output). This section
shows the volumes of each category in a list covering Nissha Group's business operations in fiscal
year 2013.
Input and Output at Nissha Production Bases
Our use of resources and energy and our impact on the environment in fiscal year 2013 reflectedfaithfully the changes faced by each business of the Nissha Group. Devices used more than 46,000
tons of material in product manufacturing processes, influenced significantly by the start of fullscale mass production in 2012 at Nitec Precision and Technologies, Inc. (NPT) Himeji Factory. This
exceeded even the use of printing paper in Information and Communication. With a 67.7% year-onyear increase in net sales, to account for 48.2% of all net sales, Devices has come to be ourmainstay business and literally the largest user of resources in the Nissha Group.
Industrial Materials saw as much as a 60%–70% decrease in input compared to the previous year,with the use of some materials nearly halving. Roughly the same volume of material was used inpackaging and printing processes, however, reflecting the gravitation to small production lots.
On the other hand, output has seen a major change. The waste water across the Nissha Groupamounted to 1,350,000 m3, for a significant increase compared to 694,000 m3 in the previous year,
mainly due to rises in use at NPT Himeji Factory. We expect the trend to continue for some time
due to the start of similar production in fiscal year 2014 at NPT Kaga Factory (Nitec Precision Inc.
[NPI] Kaga Factory until fiscal year 2013).
Finally, this report is the first to include our overseas production subsidiaries in the scope ofbusiness operations. As many are molding factories, molded resin accounts for a large part of the
input.
*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.

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Impact as a Result of Business Operations

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Environmental Accounting
Fiscal Year 2013 Environmental Accounting Results
Environmental conservation costs for the Nissha Group in Japan totaled some 2,370 million yen in
fiscal year 2013, or more than double the amount of the previous year. The primary cause wascapital investment, in business area costs, of which pollution prevention and global environmental
conservation costs at Nitec Precision and Technologies, Inc. (NPT) Himeji Factory made up thelargest portion. This was followed by an increase in R&D costs, particularly in investment in thedye-sensitized solar cells project supported by a grant from the New Energy and Industrial
Technology Development Organization (NEDO).
In a breakdown of environmental conservation costs by category, business area costs accounted
for the largest portion, at about 85%, followed by R&D costs, at 12%.
By content, investment in business area costs made up around 44% of the whole, while fixed asset
tax and depreciation costs stood at 24%, and waste treatment costs at 8%. Investment indevelopment, in R&D costs, made up some 7% of the whole.
By company, NPT Himeji Factory, which handles production for the Devices business, accounted
for nearly 60% of the whole, whereas Nitec Industries, Inc. (NII), which handles production for the
Industrial Materials business, accounted for only 16%.
With the launch of mass production employing new processes at NPT Kaga Factory (Nitec
Precision Inc. [NPI] Kaga Factory until fiscal year 2013), investment in R&D is projected to continue
in fiscal year 2014. Investment and R&D costs related to the Devices business are thus expected toremain a central aspect of environmental accounting in the future.
Environmental Conservation Cost (Categories Corresponding to Business Activities)
Scope of calculations: Nissha Group in Japan
Target period: April 1, 2012–March 31, 2013
Unit: Thousand yen

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Environmental Conservation Benefits
The table below shows the transition in environmental conservation benefits over the past three
years, from fiscal year 2011 to fiscal year 2013.
Thanks to the start of mass production at NPT Himeji Factory, the Nissha Group as a whole saw
improvements in the values that indicate efficiency of energy saving and waste treatment efforts.
Improvements can also be seen in financial benefits resulting from environmental conservation
measures.
The more than 1 billion yen in investment and over 400 million yen in costs related to business area
costs were intended to reduce the environmental risks associated with the start of mass production
at NPT Himeji Factory, and much of it will be allocated to costs in years to come. Neither the NPT
Himeji Factory nor any other factory of the Nissha Group experienced environment-related troublein fiscal year 2013.
NII strived to reduce environmental risks amid severe business conditions represented by adecrease in work volume. The Koka Factory and Tsu Factory both set targets to reduce the costrate, and vied with each other to improve the nonadjusted ratio. As a result, the factories achieved
significant results such as improvements in efficiency in proportion to the basic unit. Decreases in
the consumption of electricity, town gas, and toluene, and the consequent reduction in VOCemissions (calculated value), reflect these efforts.
Fiscal year 2013 brought a turning point in our environment-related efforts. We are set to startrebuilding our environmental management system (EMS) focusing on the reduction ofenvironmental risks in fiscal year 2014, and plan to increase the environmental conservation benefit
not only through environmental accounting but also through system-related enhancements.
Environmental Conservation Benefit
Scope of calculations: Nissha Group in Japan

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Financial Benefits Resulting from Environmental Conservation Measures
Scope of calculations: Nissha Group in Japan
Target period: April 1, 2012–March 31, 2013
Unit: Million yen(1) Amount of waste sold for recycling(2) Difference between actual energy cost and that calculated by multiplying energy cost per net
sales in fiscal year 2012 and net sales in fiscal year 2013
(3) Difference between actual waste treatment cost and that calculated by multiplying treatment
cost per ton of waste in fiscal year 2012 and waste generated in fiscal year 2013

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Prevention of Further Global Warming
Status of CO2 Emissions at Nissha
In fiscal year 2013, CO2 emissions from Nissha bases in Japan totaled 82,765 tons, exceeding the82,227 tons in fiscal year 2012 by about 0.7% (approximately 540 tons). CO2 emissions fromoverseas production bases amounted to 8,561 tons, for a decrease of approximately 1.1%
compared to 8,654 tons in the previous year.
The increase at bases in Japan resulted primarily from the larger production volume at Nitec
Industries, Inc. (NII) Tsu Factory and from the start of mass production at Nitec Precision andTechnologies, Inc. (NPT) Himeji Factory. Emissions from NII Tsu Factory amounted to 12,025 tCO2 for a roughly 1.2-fold increase compared to 9,931 t-CO2 the previous year, and those fromNPT Himeji Factory were 32,029 t-CO2 also for a significant 1.9-fold increase compared to 17,064
t-CO2. On the other hand, emissions from NII Koka Factory were 18,745 t-CO2 for an
approximately 20% reduction from the previous year, and those from Nitec Precision Inc. (NPI)
Kaga Factory were 9,133 t-CO2 also for a 19% reduction.
Emissions from overseas production bases decreased at Southern Nissha Sdn. Bhd. andGuangzhou Nissha High Precision Plastics Co., Ltd., but increased at Nissha (Kunshan) Precision
IMD Mold Co., Ltd. Those at Eimo Technologies Inc., a subsidiary of Nissha USA, Inc., wereroughly the same as the previous year, at 4,784 t-CO2, and accounting for more than half thevolume of all overseas production bases combined.
The Nissha Group emits very little energy-related greenhouse gases other than CO2.
Trends in CO2 Emissions Volumes and Basic Unit

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Trends in Gas Consumption

Trends in Gasoline, Diesel,and Heavy
Oil Consumption

Trends in Electricity Consumption

Trends in Energy Consumption

Basic Unit Management by Production Volume
With the enactment of the revised Act on the Rational Use of Energy, the comprehension andmanagement of energy use became obligatory per company. To comply with legal requirements inline with this shift, in fiscal year 2012 we started managing emissions under a basic unit based on
factors such as production volume per company. With 1.00 indicating the benchmark fiscal year
2012 results of Nissha Printing Co., Ltd. and each affiliated company (production base), fiscal year
2013 results in light of targets of 0.99 or less were as follows. The start of mass production at NPT
Himeji Factory played a significant role in increasing the basic unit, and helped us to achieve ourcompany-wide target.

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Prevention of Further Global Warming

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Waste Management
Waste Management and Zero Emissions
In fiscal year 2013, the Nissha Group in Japan generated a total 11,317 tons of waste for an 8%
increase compared to fiscal year 2012. The primary reason is the increase in waste resulting fromthe start of mass production at Nitec Precision and Technologies, Inc. (NPT) Himeji Factory. The
volume of combustible and landfill waste similarly increased, amounting to 12 tons for an increaseof 2 tons. However, we maintained zero emissions (a recycling and resource reuse rate of 99.5% ormore), and retained the previous year's high standard of 99.9%.
Status of Recycling and Converting Waste into Valuable Resources
We continued to make efforts to convert waste into valuable resources, and in fiscal year 2013 sold
41.4% of all waste generated for a roughly 2 percentage point decrease compared to the previous
year. Converting waste into valuable resources offers the benefits of a lighter burden on theenvironment and cost reductions, and we plan to carry on with it in the future.
The amount of waste plastic converted to refuse paper and plastic fuel (RPF) and other solid fuel(thermal recycling) increased, resulting in a material recycling rate of 61.8% for an approximately 2
percentage point decrease compared to fiscal year 2012.
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 roughly 99 tonsof waste in fiscal year 2013 for a 27% reduction compared to fiscal year 2012, due to decreases in
production volume resulting from poor business performance, as in Japan. On the other hand, they
achieved their target recycling and resource reuse rates. In particular, Southern Nissha achieved arate of 95.3% against a target of 90.0% or more, and Nissha Kunshan a rate of 91.0% against atarget 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 check the properties of our waste, down to each spray can, and monitor it so as to prevent
spillage during transportation and accidents at treatment facilities. We follow a set of Nissha
Guidelines for Waste Management Standards, based on laws, which we periodically review andunder which we strive to enable all bases to manage waste safely. In turn, each base has drawn up
its own Waste Management Manual and makes efforts toward thorough waste separation andmanagement.
Nitec Industries, Inc. (NII) counters the risk of leakage by setting forth detailed standards for thecollection of waste acid and alkali in cooperation with waste treatment contractor. It stipulates in the
Nissha Guidelines for Waste Management Standards the criteria for selecting treatment contractors
and an original checklist to use during periodic inspections of those facilities.
In addition, we have in place standards for managing waste and waste converted into valuable
resources that contain confidential information, and promote management in association with our
information security management system (ISMS).
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Trends in Recycling and Resouse Reuse (Nissha Group in Japan)

Certified as an Excellent Business in Reducing Garbage and Promoting 3R Activities
In fiscal year 2013, the Nissha Printing Co., Ltd. Kyoto Headquarters area was certified as an
excellent business in reducing garbage and promoting 3R activities in Kyoto City.

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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, Inc. (NPI) 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.

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

Management of Chemical Substances
In fiscal year 2013, we reported the use of nine PRTR-designated chemical substances.
Nitec Industries, Inc. (NII) Koka Factory
Unit: kg

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

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Nitec Precision, Inc. (NPI) Kaga Factory
Unit: kg

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Status of Waste Generation at Bases
Status of Waste Generation at Major Production Bases (March 2013 Results)
Our target for waste separation and zero emissions (a recycling and resource reuse rate of 99.5%
or more) was to maintain the status quo in fiscal year 2013, as in fiscal year 2012.
Nitec Industries, Inc. (NII) Koka Factory
Location: Koka City, Shiga Prefecture
Acquisition of ISO14001 Certification: June 2007
Production items: Transfer foils (the Industrial Materials business)
Recycling and resource reuse rate: 99.9%

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%

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Nitec Precision, Inc. (NPI) Kaga Factory
Location: Kaga City, Ishikawa Prefecture
Acquisition of ISO14001 Certification: July 2003
Production items: Touch panels (the Devices business)
Recycling and resource reuse rate: 99.9%*Nitec Precision Inc. (NPI) Kaga Factory merged into Nitec Precision and Technologies, Inc. (NPT)in April 2013.
Nitec Precision and Technologies, Inc. (NPT) Himeji Factory
Location: Himeji City, Hyogo Prefecture
Acquisition of ISO14001 Certification: to be acquired in FY2014
Production items: Touch panels (the Devices business), dye-sensitized solar
cell
Recycling and resource reuse rate: 99.9%

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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%

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Fair Operating Practices
Initiatives Related to Information
Security
We are committed to maintaining andimproving a highly reliable and secure
information security management system,
and working to revise our policies and rules to
fit the times.

Trade Management
We recognize that initiatives in trade
management are essential for business
continuation, and the Trade Administration
and Control Committee is playing a central
role in fortifying our efforts.

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.

Initiatives Related to Conflict Minerals
We comply with rules related to conflictminerals, which we have drawn up withconsideration to respect for human rights
cited in the Basic Purchasing Policy.

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Initiatives Related to Information Security
We at the Nissha Group are committed to establishing, maintaining, and improving a highly reliable
and secure information security management system to protect from threat our own businessinformation and the information assets we acquire from customers, suppliers, and employees
through the production, development, sales, and management performed by the Nissha Group. We
take into consideration internal and external information security requirements and reduce all risks
to below acceptable levels.

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
Amid rapid progresses in information technology and the diversification and proliferation of user
devices, identifying new information security risks and responding appropriately and quickly to them
are a social responsibility demanded of a corporation.
We at the Nissha Group are working to maintain and improve our information security management
system (ISMS) by appointing the Chief Information Officer (CIO) as ISMS management
representative and setting up a secretariat within the IT department to oversee the mechanism of
the ISMS.
We also promote application of the ISMS by appointing an information security manager,
information security chief, and information security promoter at each production base anddepartment.
Furthermore, we conduct periodic top management reviews, ISMS internal audits, and ISO 27001
assessments by an outside organization, recognizing that these efforts provide a good opportunity
to improve the system.

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Nissha Group Information Security Management Structure

ISMS Management Reviews
ISMS management reviews are a crucial process of our efforts toward information security.
In these reviews, the results of information security initiatives, those of external assessments andinternal audits, and plans and challenges related to information security are reported (input) to top
management, which then responds to the reporting with new instructions and decisions (output).
After each review, the output is executed at relevant departments in an appropriate plan-do-checkact (PDCA) cycle of the ISMS.
Establishment of Security Policies and Rules
We have in place in-house policies and rules related to information security, and have promoted
them on a continuous basis within the Nissha Group. These policies and rules need to be revised
to better fit the times, however, in light of support for bring-your-own-device (BYOD) toward theactive use of information technology and changes in work style and methods of exchanging
information.
We at the Nissha Group plan to reform our policies and rules, and continue to promote their spreadand practice company-wide.

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Security Policy Structure

Information Security Education
To prevent information security-related accidents and incidents, it is essential not only to establish
policies and rules but also to educate employees in them, and build their awareness so that they
may appropriately apply them to action.
We at the Nissha Group conduct education based on an Information Security Self-Defense Guide(SDG), which reflects the policies and rules we have established in-house. We also go a stepfurther and check that employees correctly understand the contents of the program for thorougheducation in information security.

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Trade Management
Enhancement of Trade Management Structure
In fiscal year 2013, we at Nissha earned 57.5% of our sales overseas. We recognize that for acompany like us, trade management is essential for business continuation.
Full-scale initiatives related to trade management started at Nissha in April 2010 with the launch of
the Trade Management Improvement Project Team. The purpose of this team was to build an
appropriate internal structure for import and export control. Specifically, it aimed to establish adivision for the comprehensive management of all trade activity, provide education to raisecompany-wide awareness of the importance of laws and regulations, and increase the number ofhuman 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, centering on the Trade Administration and Control Group in
Logistics Strategy and Planning, which together with members selected from each business unit
worked to prepare various rules and a trade management manual. In August 2011, we launched
the Trade Administration and Control Committee, and in December that year, started full
implementation of trade management.
Trade Administration and Control Committee

Initiatives and Challenges of Fiscal Year 2013
Soon after the start of our initiatives, in May 2012, the Trade Administration and Control Committeeorganized its first general meeting, where it confirmed that initiatives in fiscal year 2013 would aim
to strengthen security trade control in compliance with the Foreign Exchange and Foreign Trade
Act, and to obtain authorized exporter status under the Authorized Economic Operator (AEO)
program, which will recognize that we implement appropriate trade management based on the
Customs Act.
In addition, the committee members from business units organized secretariat meetings every

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month to fortify the company-wide trade management initiatives. In the past year, awareness has
improved through the company particularly about applicability decisions and transaction audits, andthe number of submissions for export application has increased.
On the other hand, initiatives were insufficient for periodic education and the drafting of systematic
education plans covering several fiscal years, and also for specific management plans not only for
cargo but also for technological information (services). These will be dealt with in the following year.
Another challenge that remains to be addressed is the thorough compliance with rules forcompleting and submitting customs documents related to actual exports.
Recently, the strict control of export cargo is required by the Ministry of Land, Infrastructure,
Transport and Tourism even of companies. We at Nissha are always working to fortify security andimprove awareness about the security of products shipped from our factories. To obtain AEO
exporter authorization, it is important that we focus on and step up our initiatives toward appropriatecargo control, tight factory security, and improved awareness of security on a company-wide level.
In fiscal year 2013, we made efforts in security export control and embarked to obtain AEO
authorization and manage our services in more detail. Our activities in these areas wereinsufficient, however, and we recognize that our challenge in fiscal year 2014 will be to continue ourefforts and strengthen the initiatives in content.
Trade Management in the Future
In fiscal year 2014, we will aim to strengthen internal education and implement a system forperiodic education so as to promote thorough security trade control and appropriate export control.
We also hope to complete as soon as possible the establishment of an appropriate management
system and the strengthening of specific initiatives related to providing services (conveying
information) overseas, which we started in fiscal year 2013.
Our goal for the future is to determine applicability for all cargo (products and devices) and services(expertise and technological information for production) that we carry in-house, regardless ofwhether they will be exported or not, and based on the results, to build an appropriate asset
management system.
We will carry on with our activities to build a company-wide trade management system and obtain
AEO exporter authorization, and aim to practice more appropriate export procedures and further
enhance trade management in fiscal year 2014.

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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.

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Intellectual Property Training Programs
We organize internal training programs so that employees may deepen their understanding of andproperly protect intellectual property. In fiscal year 2013, we invited an outside specialist to conduct
sessions divided into four levels—beginner, basic, intermediate, and advanced—in which
participants learned in detail about intellectual
property law, how to research other companies’
patents, and promoting technology development andfiling for patent application. We also hold sessions inwhich a member of Intellectual Property Management
serves as instructor.

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

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Partnership with Our Suppliers
CSR in Supply Chain
We at Nissha procure from suppliers in the global market the raw materials, components,
equipment, and services necessary to make our products. We are working with our suppliers topromote CSR procurement based on our Basic Purchasing Policy, and to enhance mutual
corporate value.

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

Promotion of CSR Procurement
To promote CSR together with our suppliers as stipulated in our Basic Purchasing Policy, we havecreated and started using a new Supplier ESG Check Sheet designed for our suppliers abroad aswell as in Japan.
The Supplier ESG Check Sheet comprises 64 questions divided into 11 sections. It clarifies items
related to basic human rights and business continuity plan (BCP), and also includes important
items. We use this check sheet as a tool to keep track of the efforts made by our suppliers, andstrive to understand their situation.
In fiscal year 2013, we asked 86 of our regular suppliers with a certain transaction volume tocomplete the check sheet, and through it, grasped the status of their initiatives.

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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 2013, we held CSR procurement
briefing sessions for 25 suppliers of logistics services
and materials. The sessions provide an opportunity to
deepen communication, as they enable us to explain
about our Supply Chain CSR Procurement
Guidelines based on our Basic Purchasing Policy andencourage our suppliers to gain an understanding of
our specific initiatives, as well as for us to hear about
our suppliers’ CSR initiatives.
Since we started conducting CSR procurement
CSR procurement briefing
briefing sessions in 2009, we have reached a total
184 suppliers to date. In fiscal year 2013, we expanded the sessions to include a new target:
suppliers of logistics services. The sessions have helped to foster an understanding about CSR
among a broad range of suppliers, from those that manufacture materials, which have increased
with the globalization of our businesses, to those engaged in logistics.
We plan to continue our efforts in fiscal year 2014 with an eye to further promoting CSR.
In-house Exhibition and Technology Seminar
With the aim of strengthening our partnerships with
suppliers, we host in-house exhibitions andtechnology seminars in which we invite our suppliers
to introduce their products and new technologies tothe employees of various Nissha departments. In
fiscal year 2013, we held one in-house exhibition andthree technology seminars.

Technology Seminar

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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

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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 vapor deposition foil, tinused in ITO film for touch panels, and gold used in FPC plating. Apart from these three, we use noother conflict minerals.
We have completed our investigation of smelters and countries of origin, and found that we do notuse 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 accordance with this policy, the Nissha Control Criteria for Chemical Substances contains
a provision on conflict minerals, with which we comply.
*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.

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Consumer Issues
Together with Customers / Quality-related Initiatives
We at Nissha strive to improve quality so that we may provide products and services that satisfy
and meet the needs of our customers.
Quality Policy
We conduct all our business activities according to the following Quality Policy.
Quality Policy
Nissha and its subsidiaries are committed to contributing widely to society through customer’s trustand satisfaction of quality, cost, delivery, services and speed.
1. We aim for quality that stands up to the customer’s expectations.
2. We pursue Zero Defects in our products.
3. We provide products which satisfy customer requirements and conform to relevant legislation
and regulations.
4. We establish and maintain a quality management system, and continually improve its
effectiveness.
Quality Management System
We operate a quality management system that meets the requirements of international standard
ISO 9001:2008 (see the Quality Management System Conceptual Diagram).
We are working to add all production bases in Japan to the scope of ISO 9001 certification. One
newly added base is Nitec Precision and Technologies, Inc. (NPT) Himeji Factory, in fiscal year
2014.

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Quality Management System Conceptual Diagram

From Department-based Optimization to Company-wide Optimization
The next processes are our customers—this is a Japanese maxim that relates to quality
management. It means that all workers in every process must have in mind the customer, whichmight be workers in the production process following theirs. We at Nissha promote the recognitionof ties between one's own department and others', and even ties between work processes acrossthe whole company, in terms 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 thecustomers' shoes, we aim to break free of department-based optimization and strive for companywide optimization. We believe that basic concepts like this and the sorting out of functions will build
Nissha's foundation as a manufacturing company.
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 some terrific results of improvement. The activity won the first prize of the October 2012
tournament, "Reduction of Dimensional Gaps in Capacitive-type Touch Panels," was featured in
the Nikkei Business Daily column "Innovation from the Field."
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 searching 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.
At present, various departments submit many proposals, which are helping to streamline
management and make it more efficient aswell as to invigorate workplaces.

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Quality Training
We implement the following training programs toward improvements in quality-related awarenessand knowledge.
1. General quality training (for new, 2nd-year, and 3rd-year employees; new managerial staff;
managers; and overseas transferees)
2. Management system training (ISO 9001:2008, ISO/TS 16949:2009)
3. Quality Management and Quality Control Exam (levels 3 and 4) training
4. Other quality-related training (corporate ethics and compliance, CPL*, engineers, etc.)* CPL: Combination of contractual liability (CL) and product liability (PL)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 Systemization of Work
1. Standardize work
The first step to systemization is the standardization of work.
Standardization will clarify the Input and work required of you.
2. First of all, check the Input
The first step to systemization is the standardization of work.
Standardization will clarify the Input and work required of you.
3. Incorporate the customer’s viewpoint into the Output
Both the company’s customer and the next internal processes are your customers.
The aim of your work is Output that satisfies your customer’s need for quality, cost, delivery, andservice (QCDS).
4. Reinforce the system using human factors
The system alone cannot deal with all work; it needs to be supplemented by people.
Your communication and teamwork will help to reinforce the system.
5. Make continuous efforts to improve the system
The system needs to take root and be implemented on a continuous basis.
Continuation will lead to the next improvement in both the quality of our work and the quality of
the company.

Quality and Safety of Products
We at Nissha communicate to our employees the importance of ensuring the quality and safety of
products through corporate ethics and compliance training.
In the event a serious accident occurs as a result of defects in our products or services, which may
violate laws or regulations, we are prepared to report it to government agencies in accordance withlaws and to notify our customers as soon as possible.
Up to fiscal year 2013, the number of violations came to zero cases (0 yen in penalties). We will
strive to maintain our zero violations record into the future.
Initiatives Related to Chemical Substances in Products
We at Nissha have in place a set of original management criteria for chemical substances in
products, which cover the laws and regulations of relevant countries and regions as well as thesubstance-related criteria of our customers.
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Including these criteria as an assessment item in our design reviews (DR) enables us to deliver
conforming products to our customers. Meanwhile, our factories also prevent misuse andcontamination by implementing on a continuous basis a mechanism required for production, which
includes verification of purchased product, ensuring traceability, and responding to non-conforming
products.
In fiscal year 2014, we plan to divide our existing set of criteria into the Nissha Control Criteria for
Chemical Substances for Nissha products, and the Nissha Control Criteria for Chemical
Substances in Purchased Products, which applicable to purchased products. Each will stipulate themechanism for selecting designs and materials that conform to our customers’ criteria based on
information reported by our suppliers on the concentration levels of intentionally use substancesand of impurities. We will continue to update our substance-related criteria in accordance withchanges in the demands of our customers and the needs of society.

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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".

Cleaning Activities in Factory Areas
Nitec Industries, Inc. (NII) Tsu Factory organizes cleaning activities every month as a means tocommunicate with the local community. It is conducting activities on a continuous basis, widening
the scope from the immediate factory area to the streets of Chusei Hokubu Science City (where thefactory is located), to the employees' commuter routes, and even to the residents' walking courses.

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Children’s Workshop in Collaboration with an NPO
Nissha Printing Co., Ltd. conducts "Machikusa" (wild plant) workshops in collaboration with thenon-profit organization Kids Meets Artists (Director Haruka Idegami).
Machikusa is a coinage or artist Shinpei Shigemoto. It refers to weeds growing around town thatgenerally go unnoticed in daily life. Children observe these weeds and give each an original nameof their choice. The workshops are designed to foster the children's imagination and creative
expression, and to deepen their interest in the environment.
In the workshop for 120 first-grade students at Ritsumeikan Primary School (Kita-ku, Kyoto;
Principal Kyoko Ukita) on Wednesday and Friday, January 23 and 25, 2013, we used iPads for the
first time. The children photographed their favorite machikusa with the iPads, added titles andillustrations with a drawing app, and transformed their findings into pieces of art. On the secondday, we used the iPads to showcase everyone’s work in a Machikusa Exhibition. Although all themachikusa were found in the same school playground, no two were the same, and the uniquepresentations drew cheers of praise.

Photographing weeds

Create a piece of work

Machikusa Exhibition

TABLE FOR TWO Menu at Corporate Cafeteria
Since April 2013, the corporate cafeteria at Nissha’s
Kyoto Headquarters serves a TABLE FOR TWO
menu. With each purchase of a TFT meal at thecorporate cafeteria, 20 yen is donated to children indeveloping countries through TABLE FOR TWOInternational (Representative Director Masahisa
Kogure). This 20 yen is enough for one child to eat aschool lunch in a developing country.

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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

861 (Consolidated: 3,409) as of end of March 2013

Bases

Japan: 10
Overseas: 23 (including locally incorporated companies)

Nissha's Financial Results

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Sales Breakdown in FY2013
Breakdown by business field

Breakdown by overseas vs. domestic

Global Network

Nissha Businesses and Major Affiliated Companies
Nissha operates three businesses: Industrial Materials, Devices, and Information andCommunication.
Industrial Materials
In the Industrial Materials business, we meet a broader range of customer needs by expanding anddeveloping on application areas for proprietary technologies such as IMD, which implements threedimensional plastic molding and graphics at the same time.
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 and Nissha In-Metal are either registered trademarks or trademarks of Nissha Printing Co., Ltd.

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Applications
PCs, mobile phones, home appliances, automotives (interiors and exteriors), cosmetic packages,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.
DevicesIn the Devices business, we offer FineTouch, which leads the touch-input device market with
cutting-edge technology, and by evolving from touch-input to sensing functions, pursue morecompetitive and advanced technologies with an eye toward future trends.
Products
Capacitive-type touch panel
Resistive-type touch panel
Applications
Smartphone, tablet device, mobile gaming gear, digital camera, healthcare appliance, home
appliance, medical device, etc.
Affiliated Companies
Nitec Precision and Technologies, Inc. (NPT)*Nitec Precision Inc. (NPI) was merged with and absorbed by Nitec Precision and Technologies,
Inc. on April 1, 2013.
Information and Communication
In the Information and Communication business, we offer products that support customers’marketing and communication strategies, social media solutions, systems for the environment andsecurity fields, and other technologies based on printing that create new value.
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)

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Editorial Policy
Editorial Policy
CSR Report 2013 has been compiled with the objective of disclosing widely to our stakeholders
information regarding Nissha's initiatives and business performance in fiscal year 2013 (April 2012–
March 2013). 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. As inlast year’s report, in this issue, 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 the standards 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 2012 to March
2013. Some reporting has also been done regarding activities carried out after April 2013.
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 (such as Nissha Intersystems
Co., Ltd.).
Publication Dates
Current issue: July 2013
Next issue: June 2014 (planned)
Last issue: June 2012
Variations in Scope of Reporting
Nitec Precision Inc. (NPI) was merged with and absorbed by Nitec Precision and Technologies, Inc.
(NPT) on April 1, 2013. Because this report focuses on activities conducted mainly in fiscal year
2013, it uses the original company name "Nitec Precision Inc." or "NPI." Full-scale production
started at NPT Himeji Factory in the second half of fiscal year 2013.

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With this issue, a section of reporting on the environment ("Impact as a Result of Business
Operations") also discloses data on overseas production bases.
Publishing Division and Contact for Inquiries
Nissha Printing Co., Ltd.
Corporate Communications
Tel: +81-(0)75-811-8111
Fax: +81-(0)75-823-5344
Inquiries: Nissha website “Contact us” page http://www.nissha.co.jp/english/inquiry/

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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

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Item

Location in CSR report

Pages onPDF

2. Organizational Profile
2.1

Name of the organization

Company Outline

70-72

2.2

Primary brands, products, and/or services

Company Outline

70-72

2.3

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

Company Outline

70-72

2.4

Location of organization s headquarters

Company Outline

70-72

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

70-72

2.6

Nature of ownership and legal form

Company Outline

70-72

2.7

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

Company Outline

70-72

Company Outline

70-72

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Approach to CSR
Waste Management

5-7
44-45

Scale of the reporting organization, including:

2.8

・Number of employees;
・Number of operations;・Net sales (for private sector organizations) or net revenues (for public

sector organizations);
・ Total capitalization broken down in terms of debt and equity (forprivate sector organizations); and・Quantity of products or services provided

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)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

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3.2

Date of most recent previous report (if any)

Editorial Policy

73-74

3.3

Reporting cycle (annual, biennial, etc)

Editorial Policy

73-74

3.4

Contact point for questions regarding the report or its contents

Editorial Policy

73-74

Editorial Policy

73-74

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

Editorial Policy

73-74

3.7

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

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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)

Not applicable

-

3.11

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

Impact as a Result of Business Operations
Editorial Policy

36-37
73-74

This table; GRI Content Index

75-81

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).

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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)

Corporate Governance

10-13

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

Corporate Governance
Respect for Diversity

10-13
23

4.4

Mechanisms for shareholders and employees to provide
recommendations or direction to the highest governance body

Corporate Governance
Human Rights

10-13
17-18

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)

Corporate Governance

10-13

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
Corporate Ethics and Compliance
Human Rights
Human Resources Development
Safety and Health
Policy and Management Structures
Initiatives Related to Information Security
Initiatives Related to Intellectural Property
Partnership with Our Suppliers
Consumer Issues
Community Involvement and Development

14-15
17-18
20-22
26-28
30-32
53-55
58-59
60-62
64-67
68-69

記載なし

-

記載なし

-

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

Corporate GovernanceMonitoring and Prevention of Pollution

10-13
46-48

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

5-7

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

5-7

4.8

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

4.9

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
Commitments to External Initiatives
4.11

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

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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

36-37

EN3 CORE Direct energy consumption by primary energy source

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

36-37
38-40
41-43

EN4 CORE Indirect energy consumption by primary source

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

36-37
38-40
41-43

Impact as a Result of Business Operations
Environmental Accounting

36-37
38-40

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

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Location in CSR report

Pages onPDF

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

36-37
38-40
41-43

EN21 CORE Total water discharge by quality and destination

Impact as a Result of Business Operations
Environmental Accounting

36-37
38-40

EN22 CORE Total weight of waste by type and disposal method

Impact as a Result of Business Operations
Environmental Accounting
Waste Management

36-37
38-40
44-45

Not applicable-

Item
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

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

Not applicable-

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 typeEnvironmental Accounting

38-40

Respect for Diversity

23

Support for Diverse Work Styles

24-25

Human Rights

17-18

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

Safety and Health26-28

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

Safety and Health

26-28

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

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

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Location in CSR report

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Respect for Diversity

23

Partnership with Our Suppliers

60-62

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

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Consumer Issues

64-67

Consumer Issues

64-67

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

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