CSR 2018

CEO Message

Nissha Group’ s CSR

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

Nissha Philosophy

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

Human Rights

Human Rights

Labor Practices

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

The Environment

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

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

Consumer Issues

Consumer Issues

Along with Local Communities

Along with Local Communities

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52
57
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Company Outline

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Editorial Policy

113

Company Outline
What's Nissha?

GRI Content Index

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CEO Message
Nissha Group’s CSR
Nissha Group is a forward thinking global company. Our
mission is to realize the enrichment of people’s lives bycreating technology and developing it into economic andsocial value through the diverse capabilities, passion, andleadership of the global Nissha Group.
In order to ensure constant growth, a company needs tocreate both economic and social value. We at the Nissha
Group believe our corporate social responsibility (CSR) is
to conduct business activities that enable us to fulfill our
mission.
In April 2012, we joined the United Nations (UN) Global Compact and declared our commitment in the areas ofhuman rights, labor, the environment, and anti­corruption. And in April 2015, we established a CSR Committee
responsible for analyzing and evaluating changes in the external environment through the lens of the
Sustainable Development Goals (SDGs) adopted by the UN, and for minimizing CSR risks from theperspective of the entire Nissha Group toward improving our environmental, social, and governance (ESG)
performance, representing the foundation of our business activities.

We hope our stakeholders will give our CSR website—CSR Report 2018—a read and offer us your views andadvice.
We look forward to your continued guidance and encouragement.
March 2018
Junya Suzuki
Chairman of the Board
President and CEO

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Nissha Group’s CSR
Approach to CSR

Toward Realizing Our Mission
The Nissha Group’s corporate social responsibility (CSR) is to fulfill our mission: “We realize the enrichment ofpeople’s lives by creating technology and developing it into economic and social value through the diverse
capabilities, passion, and leadership of the global Nissha Group.”
Our brand statement “Empowering Your Vision” expresses the relationship of Co­existence between Nissha
and our stakeholders. Both we and our customers, shareholders, employees, suppliers, and society havevisions, and we mutually affect each other toward realizing it. We maximize our capabilities driven by ourtechnology, passion, and leadership, and with the energy infused in us by our stakeholders, together create
value for the future.

Nissha Group’s CSR
We identify two broad dimensions of CSR activities for simultaneously ensuring constant growth for Nissha
and achieving a sustainable society. One is basic CSR, or fulfilling our responsibilities and obligations tomaintain a presence in global society. The other is strategic CSR, or addressing the challenges of global
society through our operations.
In basic CSR, we strive to reduce risks to business continuity by complying with the electronics andautomotive industries’ code of conduct on labor, safety, the environment, ethics, and management systemprovided by the Responsible Business Alliance (RBA) as well as with our customers’ codes of conduct. In
strategic CSR, we work to enhance our corporate value over the medium to long term by creating social value
through our operations and improving our ESG rating.* We carry out activities in both of these areas with aneye to being a global corporate group that is recognized by society and chosen by our customers.
*ESG rating: A method of rating companies based on environmental, social, and governance performance.
*Nissha Philosophy
http://www.nissha.com/english/company/philosophy.html: Our Mission, and Brand Statement can be viewed here.

CSR Management

CSR Committee
In order to link our CSR activities to the medium­ to long­term enhancement of corporate value, in April 2015
we organized a CSR Committee chaired by the president. Eight subcommittees coordinate activities in areas
such as labor and human rights, environmental safety, and corporate ethics and compliance toward theachievement of materiality goals. The contents of the activities, ongoing challenges, and activity policies in thefollowing fiscal year are reported annually to the Board of Directors.

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CSR Committee Organization Chart

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

Materiality

Identification of Material Issues
In promoting business activities based on our vision and strategies, we at the Nissha Group believe it isimportant to recognize our direct and indirect impacts on society, and face up to the challenges posed as aresult.
To this end, we analyze the operations of the Nissha Group from multiple angles—in relation to the external
environment, our internal resources, the challenges of global society, and so on—and identify a set of material
topics. Specifically, this involves a quantitative assessment based on materiality to the Nissha Group andmateriality to our stakeholders, referring to the Global Reporting Initiative (GRI) Standards, and thenincorporates the views of in­house and outside experts. At present, materiality to the Nissha Group reflects thevision and basic strategies of the Sixth Medium­term Business Plan, in operation since the fiscal year ending
December 2018, and materiality to our stakeholders primarily the contents of the Sustainable Development
Goals (SDGs).
The process for identifying and approving material topics, and the results, are given in the tables below. Each
CSR subcommittee draws up a detailed action program, key performance indicators (KPI), and target KPI
values, and applies the plan­do­check­act (PDCA) cycle.

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Process for Identification and Approval of Material Issues
The impacts of the Nissha Group and its supply chain are extracted

Step 1

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

Identify topics

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

Step 2(based on the medium­term business plan) and materiality to ourPrioritize

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

Step 3

based on assessment by outside experts and interviews with CSR

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

Step 4
Determine materiality and KPI

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

Boundaries of Material Topics
Boundaries
Categories

Topics

Inside of NisshaGroup

Suppliers

Climate change●●

Supplier environmental assessment●●

Complying with laws and regulations●●

Human rights in the workplace●●

Diversity and equal opportunity●●

Occupational health and safety●●

Supplier social assessment●●

Protection of customer's information

●

●

●

●

Environmental

SocialOthersResponsibility for product and service
continuation

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Assessment of Map

Material Issues and Subcommittee Responsible, Action Programs and SDGs

Material Issues

Complying with Laws and Regulations

Action Programs

Subcommittee(Excerpt)

Related SDGs

・Prepare group­wide training (allCorporate Ethics and Compliancebases)

・Revise Corporate Ethics and CodeSubcommitteeof Conduct Manual, subsidiary edition

Responsibility for product and service

Business Continuity Management

continuation

Subcommittee

Diversity and Equal Opportunity

・Develop disaster recovery manual・Employ international students,

Labor and Human Rights

foreign nationals

・[Cont.] Organize seminars for

Subcommittee

general women employees

Human rights in the workplace

・Promote use of harassment help

Labor and Human Rights

desk・Organize training for harassment

Subcommittee

help desk representatives

Occupational Health and Safety

Climate Change

Protection of customer's information

Supplier Social and Environmental
Assessment

・Foster safety leaders throughEnvironmental, Safety and Health
Subcommittee

education for workplace heads

・ Improve Carbon Disclosure Project

Environmental, Safety and Health
Subcommittee(CDP) score

Information Security Subcommittee

・ Meet customer demand for security

CSR Committee Secretariat

・Conduct CSR audits on suppliers

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Nissha Group's Stakeholders

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

Circle of Trust

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

◆Communication channels

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

Shareholders

We have a total of 50,810,369 outstanding shares and 7,402 shareholders. In a breakdown ofshareholders by type, 40.6% are Japanese financial institutions and securities firms, 26.2% foreign
institutions and individuals, 20.5% other Japanese corporations, 12.5% Japanese individuals andothers, and 0.2% treasury stock (as of the end of December 2017).
In addition to disclosing information, we create opportunities to meet directly and exchange dialogue

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with our shareholders and investors through IR events and one­on­one briefings. Feedback andcomments are reported regularly from IR representatives to management as well as at Board of
Directors meetings, and used as a valuable resource for enhancing our corporate value.

◆Communication channels
Shareholders’ meetings

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

Employees
The Nissha Group has 5,322 employees. The number of employees in a breakdown by region, 44.2%
work in Japan, 13.1% in Asia, 18.8% in North America, 9.9% in Europe, and 14.0% in Central andSouth America (as of the end of December 2017).
We promote the creation of safe, comfortable workplaces and offer support for diverse work styles,
respecting our employees’ human rights diversity from a global perspective. We at Nissha Group
believe our employees are our most important management resources, and aim to achieve growth forboth the company and our employees.

◆Communication channels

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

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

◆Communication channels

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

Society
The Nissha Group has 16 bases in Japan and 44 overseas (as of the end of March 2018), each ofwhich carries out business activities with respect for the culture and climate of the region in which it
operates.
We aim for widespread co­existence based on relationships of mutual trust with society. We promote
communication with local communities not only to fulfill our basic responsibilities as a corporation but
also to be a company that is needed by society. We strive to be aware of global social issues and playa role in resolving them.

◆Communication channels

Exchange events with community councils and community people
Cleanup activities in factory areas
Next­generation support activities
Support and promotion of arts and culture

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Social contribution activities in collaboration with NPOs
Employees’ participation in volunteer activities

External Assessment

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

Date

Certification/award

Company/baseDetails

59th National Catalog Contest: 6 awards including• Minister of Education, Culture, Sports, Science andNovemberTechnology Award (Gold Prize, Catalog Category)2017• Director­General of Commerce and Information

A total of six catalogs designed, produced, or printed

Nissha Printing

by the Nissha Group won awards in the 59th National

Communications, Inc.

Catalog Contest, co­hosted by the Japan Federation

Nitec Printing Co., Ltd.

Policy Bureau, Ministry of Economy, Trade andof Printing Industries and Fuji Sankei Business­i.

Industry Award (Gold Prize, Catalog Category)A total of four calendars designed, produced, or
December
2017

69th National Calendar Contest: 4 awards including

Nissha Printing

printed by the Nissha Group won awards in the 69th

• Yukimasa Okumura Award (Silver Prize, Category 3;

Communications, Inc.

National Calendar Contest, co­hosted by the Japan

Silver Prize, Category 2)

Nitec Printing Co., Ltd.

Federation of Printing Industries and Fuji Sankei
Business­i.

Acquisition status of ISO certification and others is given below (Nissha Group, as of the end of December 2017).

Standards
Subject Areas

ISO/TS16949
IATF16949

Nissha Co., Ltd. Global Headquarters○

Nissha Co., Ltd. Tokyo Division

ISO9001

ISO14001○*1○*2

OHSAS18001
ISO45001

ISO27001○

Nissha Co., Ltd. Kameoka Site○○

Nitec Industries, Inc. Koka Factory

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

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

ISO13485

Others○○*1

Headquarters

ISO50001

Nitec Precision and Technologies, Inc. Tsu
Factory
Nitec Precision and Technologies, Inc.
Kyoto Factory
Nissha FIS, Inc.
Nissha Printing Communications, Inc.
Headquarters / Kyoto
Nissha Printing Communications, Inc.
Tokyo Division Headquarters
Nissha Printing Communications, Inc.
Osaka Division Headquarters
Nitec Printing Co., Ltd. Headquarters /

○

○*1

○

FSC COC○*1○FSC COC○*1○FSC COC○○FSC COC9CSR Report 2018

Kyoto Factory
Nitec Printing Co., Ltd. Yachiyo Factory○

Nissha F8, Inc.

○*3

Nissha Business Service, Inc.

○

Eimo Technologies, Inc.

○○FSC COC○○○○

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

○○

Graphic Controls Acquisition Corp.
Nissha Schuster Kunststofftechnik○○○

Nissha Back Stickers○

AR Metallizing N.V. – Genk, Belgium○

AR Metallizing Srl. ­ Casalgrasso, Italy○

AR Metallizing Ltd. ­ Franklin, MA USA○

Málaga Produtos Metalizados Ltda.­
Osasco, Brazil
Nissha (Kunshan) Precision IMD Mold Co.,Ltd.

○

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

○○

93/42/EEC○FSC COC○○FSC COCFSC COC

○

○

○

○

○

○

○

○

○

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

United Nations Global Compact

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

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

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

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

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

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

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

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

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

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

Commitment to Results
We work with diligence and deliver results.

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

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

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

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

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Organizational GovernanceWe recognize corporate governance as a key management priority,

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

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Corporate Governance
Basic Approach to Corporate GovernanceNissha, since its foundation, has been executing strategies that promptly address external challenges, undercommitted leadership. The Company believes that strengthening corporate governance along with suchleadership will promote agile and decisive decision making, as well as ensuring management transparency
and fairness. Based on this recognition, the Company places corporate governance as one of the key
management issues, strives to maintain and improve it, and seek out sustainable corporate growth and anincrease in corporate value over the medium­ to long­term.
In an effort to clarify the Nissha Group’s basic approach to and policy for implementing corporate governance,in October 2015 we established a Corporate Governance Policy.
Corporate Governance Policy (April 17, 2017)[82.7KB]

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Overview of Corporate Governance

We have established a corporate governance structure as shown in the figure below.
*as of March 23, 2018

Corporate Governance Structure

We make major business judgments and oversees the execution of the duties of the Directors of the Board at
meetings of the Board of Directors, and as a company with an Audit and Supervisory Board, will strive tomaintain and improve the oversight and checking functions by Audit and Supervisory Board Members and an
Audit and Supervisory Board which are independent from the Board of Directors.
We adopt a corporate officer system in an effort to clarify the powers and authority in the speedy decision
making and the implementation of decisions, under which the Board of Directors will be in charge of theformulation of strategies and business oversight, and the Corporate Officers will be in charge of the executionof business. In addition, we also establish a Nomination and Remuneration Committee as an advisory panel
for the Board of Directors.
The Board of Directors formulates our Policy for Internal Control, and prepares and oversees the operation ofsystems designed to ensure appropriate business execution in the Nissha Group.
The Chairman of the Board, President and CEO chairs the following meetings toward appropriate and efficientbusiness execution.
●

Management Meeting: Comprises Inside Directors of the Board as core members. Deliberates on mattersrelating to the direction of important managerial issues within the scope of the President’s authority.
●

Monthly Business Review (MBR): Reviews the progress of business strategies based on key performanceindicators (KPI) and determines actions to take over the short term. The purpose of the MBR is to monitor
business execution by Corporate Officers and quickly respond to changes in the business environment.
●

Investment Committee: Reviews particularly important investment matters prior to submission to the Boardof Directors for approval.
We also have in place the following organizations in order to enhance the management monitoring function,
ensure that business execution complies with laws and regulations as well as our Articles of Incorporation, andto manage risks.
●

CSR Committee: Chaired by the Chairman of the Board, President and CEO. Comprises eight corporate­

wide subcommittees, namely Corporate Ethics and Compliance; BCM (Business Continuity Management);Labor and Human Rights; Environment Health and Safety; Information Security; Trade Administration andControl; Quality; and Customer Satisfaction. Demonstrates leadership in dealing with risks to legal andappropriate business execution.
●

Disclosure Control Committee: Chaired by the Chairman of the Board, President and CEO. Discusses the17

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necessity of timely disclosure of corporate information and the contents of disclosure, and discloses important
information on the Nissha Group in a timely, proper manner.
●

Internal Audit: Under the direct control of the Chairman of the Board, President and CEO, audits theinternal control systems of the Nissha Group, analyzes and evaluates their status of establishment andoperation, and offers suggestions for improvement.

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

Directors of the Board and the Board of Directors
Policy and Procedure for Electing Directors of the Board
Our Board of Directors comprises an appropriate number of 12 or fewer members, taking into account diversity
and balance between the knowledge, experience, and skills of the individual to ensure that the Board fulfills itsrole of making important management decisions and overseeing the execution of duties by Directors of theBoard and Corporate Officers.
Inside Directors of the Board are elected for their acquaintance with our operations and suitability for carryingout sound growth strategies and overseeing business execution. Several Independent Outside Directors of theBoard are elected who satisfy the requirements of not only the Companies Act but also the “Standards for
Independence of Independent Officers”, established by our Board of Directors.
To ensure clarity in management responsibilities for each fiscal year, the term of office of Directors of theBoard is set at one year.
Candidates for Directors of the Board are determined in line with the above policies and in consultation with
the Nomination and Remuneration Committee.
Standards for Independence of Independent Officers (February 14, 2018)[88.1KB]

Diversity of the Board of Directors *as of March 23, 201818

CSR Report 2018

At present, our Board of Directors consists of nine members, of which four are Independent Outside Directorsof the Board with one being a woman.
The Board includes individuals with experience abroad or at another company, or holding a master’s degree inbusiness administration. Each of our four Independent Outside Directors of the Board has experience andinsight into general corporate management and business management in manufacturing industry, specialized
knowledge in business strategies and information technology, and broad insight into monetary economics.

Role of the Board of Directors
Our Board of Directors convenes for regular meetings once a month and for extraordinary meetings asneeded. The meetings are chaired by the Chairman of the Board, President and CEO.
The Board makes decisions on matters that require resolution by the Board as stipulated by legislation and ourArticles of Incorporation, as well as on important managerial matters as stipulated by the Regulations of theBoard of Directors and other internal regulations, and overseas business execution by Directors of the Board
and Corporate Officers.

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

Evaluation of Effectiveness of the Board of Directors
Once a year since April 2016, our Board of Directors analyzes and evaluates board membership and operationin the previous fiscal year toward continuous improvement in the effectiveness of corporate governance.
In February 2018, we distributed a questionnaire covering all board meetings held in FY2017.12 and disclosed
an outline of the results in a Corporate Governance Report submitted to the Tokyo Stock Exchange in March.

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Nomination and Remuneration Committee
PurposeWe have in place a Nomination and Remuneration Committee as an advisory panel for the Board of Directors
to ensure objectivity and fairness in the election of directors and auditors, and in determining remuneration of
the Directors of the Board. The chair and at least half of the members are selected from Independent Outside
Directors of the Board.

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

Membership *as of March 23, 2018
(1) Four independent members: Tamio Kubota (Independent Outside Director of the Board and Committee
Chair), Sawako Nohara (Independent Outside Director of the Board), Kazuhito Osugi (Independent Outside
Director of the Board), and Makoto Ando (Independent Outside Director of the Board)(2) Two inside members: Junya Suzuki (Chairman of the Board, President and CEO), Hayato Nishihara(Director of the Board and Senior Executive Vice President)

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

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

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Board Members of its affiliated companies, in order to strengthen and enhance audits throughout the whole
Nissha Group.

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

Remuneration of Directors of the Board●

Inside Directors of the Board

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

Independent Outside Directors of the Board

Remuneration of Independent Outside Directors of the Board consists of basic compensation only, based on
factors such as the individual’s career and duty etc. Remuneration linked to business results is not provided,
as the role of Independent Outside Directors of the Board is separated from business execution.

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

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

Remuneration by Category
Total
Title

Number of(Million yen)

Board

Remuneration(Million yen)

Basic
Remuneration

Bonuses

Members

Stock

Directors of theBoard (Excluding
Independent Outside

183

112

48

22

4

Directors of theBoard)

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CSR Report 2018

Audit and

21

21

­

­

2

32

32

­

­

6

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

Corporate Officers *as of June 1, 2018
In order to adapt flexibly to changes in the business environment, we appoint Corporate Officers also taking
into account diversity and balance between the knowledge, experience, and skills of the individual. The term ofoffice of Corporate Officers is set at one year.

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

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CSR Report 2018

Internal Control System

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

3) Rules and other systems for risk management of the Nissha Groupi. The Company shall formulate the Basic Policy for Risk Management to specify the Nissha Group’s
initiatives in risk management.
ii. The Company shall respond to the risk of managerial losses by organizing company­wide and cross­organizational subcommittees to manage the issues of Corporate Ethics Compliance, BCM, Labor andHuman Rights, Environment Health and Safety, Information Security, Trade Administration and Control,

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Quality, and Customer Satisfaction under the CSR Committee led by the Chairman of the Board,
President and CEO as the acting Committee Chairman.
iii. Each subcommittee and the superintending division shall establish a management policy, rules, etc.;
determine risk analysis, risk assessment, and related measures; conduct daily monitoring activities; andreport the results of reviews to the CSR Committee.
iv. The CSR Committee shall summarize major risks faced by the Company on a regular basis for review
by management while reporting them to the Board of Directors.

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

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

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

Systems for reporting to Audit and Supervisory Board Members by Directors of the Board andemployees of the Nissha Group and other systems regarding reporting to Audit and Supervisory
Board Members
Directors of the Board and employees of the Nissha Group shall quickly report to the Audit and Supervisory
Board items that will potentially have a serious influence on the Nissha Group, the status of risk management,
the results of internal audits, the status of internal reports and the details of such reports, etc. The Audit andSupervisory Board Members of the Company shall request the Directors of the Board and employees of the
Nissha Group to report such matters as necessary. In addition, whistleblowers shall not be treateddisadvantageously in any way whatsoever as a consequence of such reporting.
8) Other systems necessary to ensure the effective audit by Audit and Supervisory Board Members
i. The regular meetings for exchanges of opinions between the Chairman of the Board, President andCEO, Directors of the Board and the Audit and Supervisory Board shall be held. The Audit and24

CSR Report 2018

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

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

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

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

We have in place a set of Emergency Response Regulations that defines “emergency” and stipulates theaction and structure required between initial response to a disaster and the early stages of business recovery.
For instance, in the event of a serious interruption of business due to emergency over a certain level, such asa large earthquake or new global influenza epidemic, we are to set up a response task force headed by thepresident at Global Headquarters in Kyoto. We also stockpile supplies at major bases in Japan, distribute“survival cards” listing information about what to expect and do should an earthquake strike, and educate

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employees using an e­learning system to promote awareness about the general rules for action and response
in an emergency.
Our Basic Plan for Business Continuity Management (BCM) stipulates in detail the steps to be taken in orderto promote early recovery of key business locations. In efforts to verify the effectiveness of these steps, weorganize business continuity planning (BCP) exercises on a regular basis for employees including themanagement. Any changes in management environment and reorganization are reflected quickly in the latest
editions of relevant documents.
Through these activities, we aim to secure the safety of Nissha Group employees and their families, contributeto the restoration of communities and of society at large, and ensure business continuity and maximum service
to our customers.

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

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

Column 2: BCP Training for Earthquake Emergency

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

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

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CSR Report 2018

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

Foundational Rules

1. We value and hold on to high ethical standards, integrity in our actions, and act with
good
common sense through our responsible behavior.
2. We pursue the Co‒existence with the Stakeholders including our customers,
shareholders,
suppliers, local communities and our employees.
3. We will comply with all laws and regulations, internal corporate regulations, and sociallyaccepted rules and norms.
4. If we witness any actions contrary to the "Corporate Ethics and Code of Conduct" oraresuspicious of certain behaviors or decisions, we should immediately report to andconsult
with our supervisors.
10 Important Points

1. Free and Fair Competition
2. Prevention of Corrupt Practices
3. Product Quality and Safety
4. Protection of Intellectual Property
5. Appropriate Handling of Information and Resources
6. Compliance with Import /Export Regulations
7. Proper Disclosure of Corporate Information and Compliance with Regulations against
Insider Trading
8. Environmental Protection
9. Creating a Comfortable Workplace, and Community and Social Contribution
10. Respect for Human Rights

Promotion Structure and Initiatives
All Nissha Group bases in Japan and abroad appoint managers and group leaders in charge of promoting
corporate ethics and compliance. These managers and group leaders not only conduct training in theirrespective divisions but also implement corporate ethics and compliance on a day­to­day basis throughorganizational management, serve as a liaison for referring specific cases to Corporate Legal Affairs, and takeon the role of consultant in their workplace. In order to increase awareness of the managers and groupleaders, since fiscal year ended March 2017 we distribute quarterly issues of Corporate Ethics andCompliance News.

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Designating every October and November as corporate ethics and compliance month, we organize group­wide
training at all bases in and outside Japan. In the fiscal year ended December 2017, we conducted a test forour employees in Japan who use a PC at work on key items using an e­learning system, and explained theadvertising regulations in the medical devices industry in which the Nissha Group conducts business. For
employees at production bases, who do not use a PC, and employees at overseas bases, we conducted
practical training and a check test tailored to each base’s operations, laws, and customs. Outside attorneys
and Legal Affairs, at Nissha’s Global Headquarters in Kyoto, serve as instructors in group training sessions at
a number of bases.
To promote further awareness at bases that have in place a hotline (internal reporting system), we shared theflow of investigations in addition to providing contact information as is done each year. This resulted in a boostof recognition and understanding to nearly 100%. Through a questionnaire handed out in group­wide training,
we collected a broad range of information on workplace conduct that might constitute a breach of corporate
ethics and compliance. The information was analyzed, and the results were reported together with theoutcomes of training to the Corporate Ethics and Compliance Subcommittee.
In the fiscal year ended December 2017, we further conducted training for Japanese representatives serving
as managers abroad with the aim of deepening insight into global compliance, focusing on anti­corruption, free
and fair competition (anti­cartel), and litigation risks outside Japan. For the prevention of insider trading, we
cover regulations in our regular training programs on top of educating employees through quarterly
publications on the Nissha intranet.

Corporate Ethics and Compliance Structure29

CSR Report 2018

Distribution of Added Value to Stakeholders
Our distribution of added value to stakeholders in the fiscal year ended December 2017 is given in the tablebelow.
With the change in fiscal year end date, the fiscal year ended December 2017 covered a nine­month period(from April to December). Despite the shorter time frame, distribution to employees increased owing to theadditional number of employees. Distribution to society decreased slightly due to a dip in sponsorship ofevents such as museum and art exhibitions and related events that are being conducted in accordance with
our Basic Social Contribution Policy, and a decrease in the number of Nissha facilities to be lent out.

Distribution of Added Value to Stakeholders

Stakeholders

Shareholders

AmountDescription(million yen)
1,437

Remarks
Figures published in financial

Dividends

results
Calculated by Corporate
Social Responsibility, using

Employees

7,419

and retirement benefits

results of the fiscal year ended
December 2017 (excluding
personnel expenses included
in manufacturing costs)

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

576

Figures published in financial

Interests

results

Sum of taxes paid including
2,049

corporation tax, inhabitant tax,
and enterprise tax

Figures published in financial
results

Money and in­kind donations,provision of facilities, andemployees’ volunteering
Society44

services converted intomonetary value (using methods

Calculated by Corporate
Social Responsibility

established by Nippon
Keidanren)
Company(internal reserves)

5,319

Amount of increase in

Figures published in financial

surpluses

results

30

CSR Report 2018

Human Rights
We operate a management system based on

our Basic Policy on Labor and Human Rights,

and strive to observe legislation, international norms,

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

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CSR Report 2018

Human Rights
Basic Policy on Labor and Human Rights
We at Nissha have in place and adhere to a basic policy on labor and human rights toward realizing our
Mission. The 10 principles of the United Nations Global Compact and the electronics and automotive
industries’ code of conduct provided by the Responsible Business Alliance (RBA) were used as reference informulating the policy. The policy is translated from Japanese into the English, Chinese, Korean, and Malay
languages for group­wide distribution.

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

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

Building and Operation of a Management System
We adhere to international norms and laws on human rights and labor standards, and strive for continuous
improvements in the content of our activities.
In the course of the Fifth Medium­term Business Plan (FY2016.3–FY2017.12), the Labor and Human Rights

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CSR Report 2018

Subcommittee promoted the building of a structure for compliance with the Responsible Business Alliance(RBA) code of conduct at all major Nissha Group bases, including those outside Japan. In the fiscal year
ended March 2016, it built and started to operate a labor and human rights management system. And in thefiscal year ended December 2017, it followed this up with internal audits of major Nissha Group companies.
Instances of noncompliance found through the audits, such as poor procedure for the application of overtime
work, have been addressed through corrective measures including prevention of recurrence.
For the fiscal year ending December 2018, the subcommittee has formulated an action program, target values,
and key performance indicators (KPI) in areas such as work time management, expansion of women’s
participation in business, and employment of foreign nationals to address the material topics of diversity andequal opportunity, and respect for the human rights of employees.

HotlineIn order to quickly grasp the facts, minimize critical risks, promote ethical and legal compliance, and ultimately
enhance our corporate value, we at Nissha have in place an Internal Reporting Code and a hotline at all
Nissha Group companies in Japan as well as some abroad. In the interest of neutrality and fairness, thehotline reaches a third party served by an outside attorney’s office.
Our Internal Reporting Code protects whistle­blowers from any unfavorable treatment by either the company
or other employees on account of their complaints, and obligates the acceptance of anonymous reporting. In
fiscal year ended December 2017, the hotline was used 20 times. The complaints concerned workplaceenvironment and interpersonal relationships, and requests to improve workflows at production bases. All
complaints received are relayed from the hotline to the Corporate Ethics and Compliance Subcommittee
secretariat, which as a rule coordinates with relevant divisions to carry out an investigation and fact­checking
while protecting the whistle­blower. The contents are reported as needed to the Corporate Ethics andCompliance Subcommittee, and then addressed according to the circumstances.
We are working to create an environment in which employees can feel comfortable about discussing evenseemingly trivial matters, and to enhance employee awareness of the hotline through the Corporate Ethics andCode of Conduct Manual, the Nissha intranet, and in­house training toward further reinforcing corporate ethics
and compliance.

Hotline Organizational Chart

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CSR Report 2018

Harassment Help DeskWith the aim of preventing and resolving rifts in workplace relationships, including sexual and power
harassment, on April 1, 2015, we established a help desk specializing in harassment, providing our employeeswith a clearer destination for discussing their concerns. In the fiscal year ended December 2017, theharassment help desk was used 11 times (six inside the company, five outside).

Fair Evaluation and Treatment
We at the Nissha Group view evaluation systems as a mechanism for ensuring consistency between thecompany’s strategy and individuals’ goals, and for determining treatment accordingly. To this end, we conduct
a personnel evaluation of all full­time Nissha Group employees twice a year. The evaluations cover the level ofachievement of employees’ goals (accountability) and responsibility, and the results of which are reflected inbonuses, pay raises, and promotions. By organizing interviews at the time the goals are set and the results areevaluated, we strive for evaluation and treatment that are fair and convincing.
With the revision of our managerial personnel system in October 2014 and of our general personnel system in
April 2015, we aim to realize a highly convincing evaluation system in which employees are rewarded for
producing results.

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

Freedom of Association and Collective Bargaining
Our Basic Policy on Labor and Human Rights contains the provision, “4. Freedom of association and the rightto collective bargaining: We will guarantee the right to organize and the right to collective bargaining.”
In the fiscal year ended March 2017, we engaged in dialogue with the labor union toward expanding women’s
participation in business and otherwise creating workplace environments where employees can live up to theirfull potential. As a result, we formulated a set of Private Day Care Expense Coverage Regulations andintroduced a program for preventing delays in the reinstatement of women employees after childbirth because
they could not enroll their child in a non­authorized nursery (in Japan, these are significantly costlier than thosecertified by local authorities, which have years­long waiting lists).
With the change in fiscal year end date from March to December at Nissha Group companies in Japan, in thefiscal year ended December 2017, we held discussions toward reviewing employment regulations. As a result,
we introduced a program that allows two company­owned houses for employees transferring to a location
away from their family when a gap emerges between the timing of the transfer and the start of a new school
year (April in Japan). We also introduced a career resumption program for re­hiring employees who have once
had to retire due to reasons such as childbirth, child­rearing, and family care, and started operating this in
January 2018.

Relationship with Labor Union
The Nissha Group has three labor unions: the Nissha Labor Union (organized in March 1946)*1, the Nitec
Industries Labor Union (March 2012)*2, and the Nissha Printing Communications Labor Union (October2015)*3. In January 2016, these three unions formed the Nissha Group Labor Union. While one union percompany is our basic approach to promoting well­disciplined organization and building sound relationships
between labor and management, we recognize that regular exchange of information and coordinated action
between labor unions is necessary to resolve common challenges within the Nissha Group. Based on thisunderstanding, we at the Nissha Group have solid relationships and hold regular negotiations and discussions
with our labor unions.
Nissha Co., Ltd. holds regular Management Council meetings with the Nissha Labor Union, joined by

34

CSR Report 2018

employees excluding managerial staff, to negotiate and discuss employees’ labor conditions and share
information about the Nissha Group’s business operations. Although no minimum period is set for notifying theunion of significant changes in labor conditions, the company exchanges dialogue with the union on a daily
basis with the aim of reaching an agreement satisfactory to both. Furthermore, we organize monthly Work
System Committee meetings primarily to share information about work times and prevent large amounts ofovertime work.
The labor contract confirms, “the Company and the Union shall respect one another’s position and maintain apeaceful relationship between labor and management as well as strive for the maintenance and improvementof labor conditions and the growth of the Company,” and stipulates, “the Company shall respect the Union’s
right to organize, right to collective bargaining, and right to act as a group,” thereby guaranteeing basic laborrights for union members.
Affiliated companies Nitec Industries, Inc. (NII) and Nissha Printing Communications, Inc. (NCI) also holdnegotiations and discussions about employees’ labor conditions with their respective labor unions. The
Workplace Improvement Committee, established by both labor and management at Nitec Precision andTechnologies, Inc. (NPT), works to promote improvements in the workplace environment and in welfare
benefits.
In fiscal year ended December 2017, the Nissha Group had no report either of a strike or lockout or of asituation that infringed on our employees’ freedom of association. We will continue to respect the mutual
positions of both company and union, and build a sound relationship between labor and management.
*1. As of the end of December 2017, the Nissha Labor Union has a membership of 745.
*2. As of the end of December 2017, the Nitec Industries Labor Union has a membership of 439.
*3. As of the end of December 2017, the Nissha Printing Communications Labor Union has a membership of 193.

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

Takashi Yoshioka

member unions, and strives to nurture the Nissha Group as a

Executive Labor Leader
Nissha Group Labor Union

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

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CSR Report 2018

Labor Practices
Our employees are our most important management resource.

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

36

CSR Report 2018

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

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

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

Human Resources Development Model

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

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CSR Report 2018

Training System (Major Programs by Area)
Area

Training
Nissha Academy (selective training for next­generation management

Planned humanresource development

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

Skill development

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

Career development

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

Training System Model

Selective Human Resource Development
In 2013, we established Nissha Academy, an in­house institute for fostering human resources with moreadvanced, specialized knowledge. While we continue to expand on our rank­specific, theme­specific, andcareer design training programs, Nissha Academy employs a selective system to provide training.
Nissha Academy comprises a Business School, which provides knowledge and skills in the proposal andexecution of management strategies including accounting, finance, marketing, and human resources to foster
leaders capable of company and business oversight; and a Management of Technology (MOT) School, whichdevelops leaders capable of linking technology with management to create new business. In the fiscal year
ended December 2017, 24 employees enrolled in the MOT School. Graduates are given opportunities topractice what they have learned through involvement in projects and the drafting of medium­term businessplans, for a consistent human resource development program that integrates all three areas of planned humanresource development, skill development, and career development.
As a gateway to Nissha Academy, in fiscal year ended March 2016, we launched business literacy training, ashort­term intensive selective program covering the basics of themes such as management, accounting, andmarketing. This program also goes beyond inputting knowledge to featuring practical contents, whereparticipants apply what they have learned to analyze the current situation of their company and discuss its
challenges through group work and the creation of individual reports.

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CSR Report 2018

Programs to Support Employees’ Will to Learn and Grow
We offer many open­call training courses, which employees may sign up for in line with their choice of
personal development theme. Examples are courses designed to foster universal business skills such as
logical thinking and presentation, and to develop linguistic skills required of employees of a global company.
Our correspondence courses and self­learning programs via Skype support voluntary learning by covering half
the price of subsequent courses for graduates.
In the fiscal year ended December 2017, we organized an open­call management workshop designed to drawout the determination and capabilities of experienced managers. We plan to carry this over into the fiscal year
ending December 2018, as well as enhance our other programs for managers in response to their will to learn
and grow.

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

Annual training hours

Training hours per employee**

Fiscal year ended

Fiscal year ended

Fiscal year ended

March 2016

March 2017

December 2017*

Male

23,106

17,605

14,204

Female

7,375

7,609

5,561

Total

30,481

25,214

19,765

Male

11.9

9.3

7.4

Female

17.3

17.9

13.1

Total

12.9

10.8

8.4

* With the change in fiscal year and date from March 31 to December 31, the fiscal year ended December 2017 covers anine­month period (from April to December).
** Training hours per employee are calculated based on the number of full­time employees of the Nissha Group in Japan.

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CSR Report 2018

Respect for Diversity
The Nissha Group has a set of Shared Values
http://www.nissha.com/english/company/philosophy.html
that serve as a code of behavior for Nissha People seeking to realize our mission. One of those values,
Diversity and Inclusion, declares, “We welcome diverse capabilities interacting as equals and enhancing ourorganizational performance.” To grow as a global company, we respect diverse work styles by diverse humanresources, and aim to create workplaces in which all employees can perform to their full potential.

Composition of "Nissha People"

The diversity of the Nissha Group shows in our employee composition in terms of gender, age, andemployment status. With the expansion of our activities across the globe, more than a half of our employees
work at Nissha Group companies outside Japan. Locally hired employees are appointed to upper
management positions at overseas bases. This includes the CEOs of eight subsidiaries served by local hires.

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

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CSR Report 2018

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

Composition of Nissha People

Fiscal YearFY ended Mar.
2014

FY ended Mar.
2015

FY ended Mar.
2016

FY ended Mar.
2017

FY ended
Dec. 2017

GenderCorporate

Directors

Nissha fellows

officers

Managerial

Employees(total)

staff

Average age

Average yearsof employment

Male

7

13

1

182

662

40.9

15.3

Female

0

0

0

6

175

33.9

9.4

Male

6

13

1

204

760

41.4

15.2

Female

1

0

0

7

195

34.7

9.3

Male

6

15

1

153

610

41.1

13.7

Female

1

0

0

7

180

35.0

9.8

Male

7

18

1

154

619

41.5

13.9

Female

1

0

0

7

183

35.4

10.2

Male

7

15

1

165

603

41.8

14.1

Female

1

0

0

9

188

35.9

10.7

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

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CSR Report 2018

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

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

Of all permanent employees who left Nissha Group companies in Japan in the fiscal year ended December
2017, 3% left for personal reasons.

Percentage of People with Disabilities Employed at Major Group Companies
Private enterprises in Japan with 50 or more employees (45.5 or more, after April 2018), as a rule, arerequired to employ a given percentage of people with disabilities. Nissha Group companies that fall under thiscategory each work to meet the statutory rate. At Nissha Co., Ltd. and affiliated companies subject to the rule,
Human Resources organizes regular interviews with employees with disabilities and strives to maintain anenvironment where they can perform to their potential. The company also has a system for appointing
permanent employees taking into consideration their disability, and assigning job coaches to support thedevelopment of potential, toward long­term employment in tune with the capabilities and circumstances ofindividual employees.
People with disabilities accounted for 2.13% of the Nissha workforce as of December 31, 2017, for a slightdecrease compared to the previous fiscal year. Those employed at Nissha Business Service Co., Ltd. (NBS)
increased slightly, to 3.52%.

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CSR Report 2018

Each applicable group company plans to continue making efforts to meet and maintain the target statutory
rate.

* The figures are as of the end of each fiscal year.
* The statutory employment rate for people with disabilities in private company is 2.2% since April, 2018.

Women employees’ participation in business

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

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

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CSR Report 2018

In a follow­up program, interviews were arranged between the participants and their respective
superiors to discuss what challenges the women wanted to take on for enhancing their sense of job
fulfillment. This dialogue helps to deepen understanding of women employees in managers, and at
the same time offers both the managers and the women employees the opportunity to practice what
they learned in training. Not merely approaching individuals but promoting communication between
them thereafter—we believe this makes the training more effective.
The career development training for women manager candidates followed the same contents as forgeneral employees, with the addition of studies on what it takes to draw on one’s strengths whileserving as leader, and an exchange of views between the participants.
In the fiscal year ending December 2018, we plan to conduct training for the management and for
women employees at bases not covered thus far.

Enhancement of Systems and Communication Tools
In November 2016, we established a system for sharing with employees the expense of using non­registered childcare facilities. Employees in Japan who wish to be reinstated at work after taking child­rearing leave often have difficulty enrolling their child in day care service registered with themunicipality, as mass enrollment closes in April, and the next opportunity seldom arrives before Aprilof the following year. The system covers part of the expense of temporarily enrolling a child in a non­registered childcare facility until an opening becomes available at a registered facility, with the aim ofsupporting employees’ quick reinstatement at work at the timing of their choice. An employee using
the system has been reinstated at work since January 2016.
In January 2018, we introduced a career resumption program for re­hiring employees who have once
had to retire due to reasons such as marriage, childbirth, child­rearing, spouse’s job transfer, andfamily care. This is designed to support the rebuilding of a career path for employees who wish to
return to Nissha and use the experience and expertise they gained before retirement.
In August 2016, we opened a website dedicated to introducing employees participating in businesscalled “We are Nissha People!” It presents interviews with employees in various positions, such as
exemplary men as well as women employees who achieve work­life balance, women managers, andemployees working at Nissha Group bases abroad. In the fiscal year ending December 2017, thewebsite published a round­table discussion between women leader candidates, and feature articles
on the status of women’s participation in business, and on the work styles of rikejo, or “women ofscience,” as opposed to those who studied the humanities, who defy convention and are in risingdemand due to Japan’s declining population.
We are Nissha People! (written in Japanese): http://www.nissha.com/people/

Major Initiatives to Date
Launch project team
FY ended March 2015

Interview women employees
Distribute Work­Life Balance Support Guidebook

Open NISSHINE portal site
Administer employee questionnaire
FY ended March 2016

Organize forum on women’s participation in businessConduct training for management (department directors andabove)44

CSR Report 2018

FY ended March 2017

Establish system for sharing the expense of using non­registered childcare facilities
Open “We are Nissha People!” website for introducing
employees participating in businessConduct training for management (all managers includinggroup leaders)
Conduct career development training for women employees

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

FY ended December 2017

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

Conduct training for women manager candidates
Conduct training for management (all managers including
FY ending December 2018group leaders)(scheduled)

Introduce career resumption program for re­hiring employees
who have once retired due to specified reasons (in operation
since January 2018)

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

Action Plan for the Japanese Act on Promotion of Women’s Participation
and Advancement in the Workplace
The Japanese Act on Promotion of Women’s Participation and Advancement in the Workplacerequires companies with 301 or more employees to draft an action plan for promoting women’s
participation in business. In the Nissha Group, three companies fall under this category: Nissha Co.,
Ltd., Nitec Industries, Inc., and Nitec Precision and Technologies, Inc. One more company, Nissha
Printing Communications, Inc., has voluntarily formulated an action plan in line with our aim to create
an environment in which all employees can live up to their full potential across the entire Nissha
Group.
The action plans and initiatives of each company are presented on the website “We are Nissha
People!”We are Nissha People! “Action Plan for Promotion of Women’s Participation and Advancement in the
Workplace” (written in Japanese)
http://www.nissha.com/people/news/0009.html

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CSR Report 2018

Support for Diverse Work Styles
True to the Diversity and Inclusion cited in our Shared Values, we in the Nissha Group embrace and take fulladvantage of diverse values and capabilities. We implement work style reforms with the aim of improving
productivity, and support work­life balance in various ways for our employees.
We are working to expand further on the initiatives given below toward creating workplace environments
equipped for diverse, flexible work styles.

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

Work at Home System
In fiscal year ended March 2015, we introduced a work­at­home system with the aims of promoting harmony
between employees’ work and life, and improving their work efficiency. The system enables employees livingwith a child before completion of elementary school and employees providing family care to work at homeeither on two full days a week or for a number of hours a day. In the fiscal year ending December 2017, eight
employees used the system (six for child­rearing, one for family care, and one for other reasons).

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

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

Major child­rearing support systems
Support system

Nissha Group in Japan
During pregnancy (up to

Shorter hours during pregnancy

maternity leave before childbirth)
Up to 3 hours per day

Statutory coverage－
As a rule, up to 1 year old (1 year

Child­rearing leave

Up to 2 years old

6 months old when certain
conditions are met)

46

CSR Report 2018

Support system

Nissha Group in Japan

Statutory coverage

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

Shorter hours for child­rearing*

Up to completion of elementary

Up to 3 years old

schoolBy effort: Start of elementary

Up to 3 hours per day

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

Paid

1 child: 5 days

Up to start of elementary school:

2 or more children: 10 days

paid

Either paid or unpaid

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

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

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

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

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

1 family member: 5 days

2 or more family members: 10

2 or more family members: 10

days

days

Paid

Either paid or unpaid

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

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

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CSR Report 2018

Kurumin Certification
In 2017, Nissha Co., Ltd. received “Kurumin” certification for the third consecutive term,
following 2009 and 2013. Nissha Business Service Co., Ltd. (NBS) received certification in2015, followed by Nitec Precision and Technologies, Inc. (NPT) in 2016.
* Use of the Kurumin Mark is permitted for companies certified as being next­generation supportive by
the Minister of Health, Labour and Welfare. Certification is granted to companies that draw up andimplement a medium­term action plan, and submit it to their prefectural labor bureau.
Kurumin Logo

Status of Major Long­term Leave and Time Taken Off from Work (Nissha Group in Japan)
Promotion of the Use of Annual Paid Leave
To promote the use of annual paid leave, we encourage employees to take two days each under the “First andSecond Halves Annual Paid Leave Plan”. The period covered by the system was limited to summer (July–
September) and winter (December–February) until the fiscal year ended March 2017. This was expanded to
the full six months of the first and second halves of the year since the fiscal year ended December 2017.
Also, we offer a further two days in which employees may request to take paid leave on their birthday, that of afamily member, or their wedding anniversary. As a result of ongoing efforts, the average paid leave taken
exceeds 10 days per year.
Moving forward, we are considering introducing paid leave by the hour as a mechanism for facilitating more
flexible use of paid leave and supporting employees’ efforts to balance child­rearing and family care with work.

Average days and percentage of annual paid leave used (Nissha Group in
Japan)48

CSR Report 2018

Number of employees who used child­rearing leave
The number of employees who used child­rearing leave, worked shorter hours for child­rearing, and took days
off for child nursing are given in the graphs below.

Number of employees who worked shorter hours for child­rearing

Number of employees who took days off for child nursing

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

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CSR Report 2018

Retention rate after child­rearing leave (1 year): Male 88.8%, Female 96.4%
Retention rate = Number of employees remaining on March 31 the current fiscal year after being reinstatedafter child­rearing leave in the previous fiscal year ÷ Number of employees reinstated after child­rearing leavein the previous fiscal year

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

SupportsystemFamily careleave
Shorter

FY ended

FY ended

FY ended

FY ended

FY ended

March 2013

March 2014

March 2015

March 2016

Male

0

0

0

0

0

Female

0

0

0

0

1

Male

0

0

1

1

0

Female

0

0

0

0

1

Male

4

1

4

7

9

Female

2

2

4

5

7

GenderDecember
2017

hours forfamily careDays off forfamily care

Outpatient Sick Leave System
In fiscal year ended March 2016, we introduced an outpatient sick leave system with the aim of supporting
employees who require long­term outpatient treatment to continue working. The system enables employeeswith specified disorders to take 10 days off per year for treatment. Three employees used the system in fiscal
year ended December 2017.

Reduction of Overtime Work
Nissha Group companies in Japan promote the reduction of overtime work on an ongoing basis. Twice amonth, we notify all divisions of overtime hours recorded.* Managers use this information to provide areminder about overtime work to employees in their division. Divisions that recorded a large amount ofovertime work are questioned as to the causes and the physical condition of employees in an effort to improveawareness about work time management. In the fiscal year ending December 2017, Nissha Group companies
in the Kyoto area increased the days per month designated for clocking out at the scheduled time from one totwo.
Moving forward, we will work to further reduce overtime work and at the same time aim to produce greater
results without relying on long work hours, in line with our basic group­wide strategy of improving productivity.
*The Japanese government’s guidelines for promoting work­life balance set a nationwide target of reducing
the percentage of employees who work more than 60 hours per week to 5.0% by 2020. With this in mind, all
Nissha Group companies in Japan are working to manage work hours on a weekly basis.

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

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CSR Report 2018

Status of utilization

Fiscal YearFY ended

FY ended

FY ended

FY ended

March 2014

March 2015

March 2016

March 2017

Number of33

job posting
Successful

27

8

FY ended
December
2017
0

0

Male

FemaleMale

FemaleMale

FemaleMale

FemaleMale

Female

3

2

3

3

1

0

­

­

­

­

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

Awarding system
The Nissha Group has in place various awarding systems that aim to reward praiseworthy endeavors andcreate a setting in which the employees responsible for the endeavors influence and motivate the company
and organizations as a whole.
In the fiscal year ended December 2017, 33 employees received the most prestigious President’s Award, zero
employees the Top­Line Award recognizing contributors to sales expansion, and 105 employees the Nissha
People Award celebrating workplace stars who epitomize our Shared Values. The awards are presented
globally across the Nissha Group, with recipients including employees at overseas bases.
Every two years, we also organize Technology Presentation Meetings with an eye to discovering andrecognizing excellent technologies with great potential, and ultimately inspiring our engineers.

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CSR Report 2018

Safety and HealthOccupational Safety and Health Policy / Safety and Health Objectives
The Nissha Group has in place a Occupational Safety and Health Policy declaring that we position the safety
and health of all involved in our business activities as a top management priority, and promote thoroughawareness of this policy. In order to translate this policy into reality, in the fiscal years ended March 2017 andDecember 2017, we designated zero work­related accidents as a medium­term safety and health objective.
Starting in the fiscal year ending December 2018, we are working to further prevent work­related accidents
under a new set of medium­term objectives covering the three­year period of the Sixth Medium­term Business
Plan (FY2018.12–FY2020.12).

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

Safety and Health Management System / Safety and Health Subcommittee
The CSR Committee’s Safety and Health Subcommittee is headed by the president and responsible for thesafety and health activities of the Nissha Group. It compiles quarterly reports on the progress of our safety andhealth objectives, the measures taken by each base on work­related accidents, safety and health performancesuch as occurrence of work­related accidents, and internal audits and corrective measures based on theaudits. The subcommittee conducts year­end reviews on whether our management system is functioning
effectively, and oversees the Safety and Health Committees operated by each base, toward improving thelevel of safety and health activities throughout the Nissha Group. Once a year, the CSR Committee reports to
the Board of Directors on the contents of and status of corrective measures on work­related accidents.
The Safety and Health Committees of each base consist of base representatives including a safety manager
and health manager, and employee representatives selected from the labor union and each workplace. The
members meet to report on work­related accidents and corrective measures, and to exchange views andpropose measures for improvement toward realizing a safe and comfortable workplace. Any work­related
accidents that occur at each base, together with corrective measures on them, are promptly reported to the
Safety and Health Subcommittee for sharing with other bases. The corrective measures are reported from theofficer overseeing the base and the head of the subcommittee to the president for appropriate review.

52

CSR Report 2018

Safety and Health Management Structure

Occurrence of Work­related Accidents
The majority of accidents in the fiscal year ended December 2017 involved cuts, crashes, and workers beingcaught or trapped in machines. Thanks to a decrease in accidents resulting in days of leave, however, we saw
improvement in both the frequency and severity of work­related accidents. Through measures established in
response, such as repair of equipment and review of workflows, we are working on corrective action.

Occurrence of Work­related Accidents (Nissha Group in Japan)

Item

Frequency of work­
related accidents*1
Severity of work­
related accidents*2

FY ended

FY ended

FY ended

FY ended

FY ended

March 2014

March 2015

March 2016

March 2017

1.21

0.92

1.16

1.99

1.45

0.00

0.04

0.02

0.02

0.01

0

0

0

0

0

Fatal accidents

December
2017*1. Frequency of work­related accidents: Refers to the number of injuries and casualties resulting from work­related
accidents (four or more days of leave) per one million working hours*2. Severity of work­related accidents: Refers to the severity of work­related accidents in terms of the number of working
days lost per one thousand working hours
Definitions from work­related accident statistics, Ministry of Health, Labour and Welfare
Figures include accidents involving temporary employees

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

Male
Japan

Female
23

Total
9

53

32

CSR Report 2018

North America

9

5

14

3

0

3

Europe

10

4

14

Asia

1

3

4

Central and SouthAmerica

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

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

Safety and Health Education and Training
We provide education and training required in workplaces
based on our Safety and Health Education and Management
Regulations. Contents center on regular programs comprisingtraining for environmental safety promoters, training inprocedures for handling and assessing the risks of chemical
substances, and lessons in using an automated external
defibrillator (AED) in preparation for emergencies. In the fiscal
year ended December 2017, employees obtained qualification
as “RST trainer,” or Ministry of Health, Labour and Welfare
certified safety and health education trainer for coaching
foremen responsible for workplace safety and health, andTraining for environmental safety promotersorganized sessions at major production bases in Japan.

Category of Training and AttendanceCategory
General training

Lesson/Session
New employee training (safety and health)Risk assessment training (safety and health, chemical
substances)Environmental safety promoter training
Foreman education by RST trainer
Ergonomics and chemical substance handling training

Safety training

Health training (organic solvent handling, chemical
substance risk assessment)
Safety training (lesson in safety and health case studies
at other companies)

Attendance FY ended
December 201731
86 (2 bases)52
10 (2 bases)
30
30

42

General life saving lesson

27

AED lesson

1454

CSR Report 2018

Certification as Health and Productivity Management Organization (White 500)

Nissha Co., Ltd. was certified as a Health and Productivity Management Organization in the large enterprise
category (White 500) for the second consecutive year at an announcement ceremony on February 20, 2018,co­hosted by the Japanese Ministry of Economy, Trade and Industry, and Nippon Kenko Kaigi. Certification
was granted in recognition of our initiatives for promoting health­conscious activities, specifically including
those posted below. We will continue to encourage the participation of all in creating safe, comfortableworkplace environments and promoting sound physical and mental health.

Health Promotion Initiatives
We carry out various initiatives on a continuous basis with the aim of preventing lifestyle diseases, andmaintaining and enhancing the health of employees.
In the fiscal year ended December 2017, we organized courses by an industrial physician and by a healthfitness programmer toward promoting exercise habits. Participants practiced and learned about diet forenhancing the effects of exercise from the industrial physician, and simple, correct strength training andstretch exercises from the health fitness programmer.
In the fiscal year ending December 2018, we plan to organize an original event for measuring bone density,
gauging blood­vessel age, and promoting smoking cessation. Employees will receive an explanation of theirmeasurement results along with advice on improving dietary, exercise, and lifestyle habits using a speciallyprepared leaflet. Our ongoing Smokerlyzer session will measure the level or carbon monoxide in smokers’
breath.
As a high­risk approach, we further undertook measures to maintain health by recommending visits to a
medical institution to employees who required either detailed examination or re­examination as a result of theirhealth checkup, and provided specific health guidance with support from a designated medical institution toemployees who required it as a result of their health checkup.

Mental Health Support“Employee­friendly Workplace” page in Nissha internal newsletter

As part of our mental health support offering, we organize mental health classes, covering self­care and linecare, by a clinical psychologist each year since the fiscal year ended March 2010, and introduced stress checksurveys in the fiscal year ended March 2013 ahead of a mandatory system coming into effect in December
2015. In the fiscal year ended December 2017, we distributed a mental health handbook to all employees sothat they can recognize and cope with stress based on their survey results.
We also continue to promote the creation of employee­friendly workplaces. In fiscal year ended March 2015,
we provided line care education about supporting the process of improving workplace environments. And in
fiscal year ended March 2016, we sought pilot workplaces for administering general checkups with the aim ofcreating pleasant workplaces from the bottom up. The checkup teams first identified the good points of each
workplace, the points that require improvement, and the reasons for improvement, and then formulated a plan
based on the members’ input, and set to work topic by topic. Ideas for creating employee­friendly workplaces
are published in our internal newsletter to familiarize employees with the concept. In future, we plan to spreadthe initiative across Nissha Group companies.

55

CSR Report 2018

As for support on a personal level, we have an outside web counseling service through which a specialized
counselor offers mental health advice online. Being accessible even to employees who have difficulty juggling
their work schedule with an appointment, and offering the benefit of privacy protection, the service is used
several times each year.
For employees working long hours, appointments are arranged with our healthcare staff and industrial
physician. This helps us understand the employees’ health condition as well as coordinate with their superior
and the human resources division in providing any required follow­up.
Also, for employees who require special attention in terms of mental health, we follow our Long­term Leave
Regulations and offer time to recover from their condition as well as consideration in the workplace uponreinstatement, in an aim to prevent recurrence and achieve a smooth return to work. We will carry on
promoting collaboration between each division, the human resources division, and our healthcare staff inefforts to create comfortable workplaces.

Mental health support structure56

CSR Report 2018

The Environment
We strive to reduce environmental risks, prevent pollution,and create opportunities in line with our Environmental Policythat aims for “business development and the realization of a sustainable society.”57

CSR Report 2018

Environmental Policy and Management Structures
The Environmental, Safety and Health Subcommittee of the CSR Committee operates the management
system suitable to business operations of the Nissha Group. It builds and operates an environmental, safety
and health management system incorporating an environmental management system based on ISO14001, asafety and health management system based on OHSAS18001, and customer requirements, and works
toward continuous improvement at bases of the Nissha Group in Japan. Its duty is to maintain a structure thatcomplies not only with laws and regulations but also with global standards such as the code of conduct
provided by the Responsible Business Alliance (RBA).
Our Environmental Policy aims for business development and the realization of a sustainable society. We work
to promote this policy to all employees of the Nissha Group. Toward achieving Nissha environmental
objectives, which serve as group­wide medium­term goals, each factory and organization sets its own targets,and creates and implements an action plan. Environmental targets correspond to quality­related key
performance indicators (KPI) and target values so that they link directly with everyday tasks.
The subcommittee comprises an environmental and safety management representative and sub­subcommittee members selected from each headquarters division and site. The Environmental and Safety
Management Group in Corporate General Affairs functions as secretariat and operates the subcommittee
under the general supervision of the management. In basic CSR, where we aim to strengthen our foundation
as a corporation, the subcommittee builds and maintains a structure for conforming to global standards suchas that provided by the RBA. In strategic CSR, it works to improve our environmental, social, and governance(ESG) rating. Through these activities, the subcommittee promotes risk management in areas of theenvironment and safety, and plays a role in corporate governance across the Nissha Group.
With the start of the Sixth Medium­term Business Plan on January 1, 2018, we are set to carry out activities toenhance our environmental performance, including addressing the ever­pressing issue of climate change,
through the diverse capabilities, passion, and leadership of the global Nissha Group.

Environmental Policy
Nissha and its subsidiaries, as members of the global society, aim for business development and therealization of a sustainable society through environmentally conscious corporate activities.
1. Prevention of Pollution
We comply with legal requirements and agreements with society, and strive to prevent environmental
pollution in all aspects of our corporate activities such as product development, design, materials,
production, sales, and facilities.
2. Product Safety
We fulfill promises with our customers and deliver safe and environmentally conscious products.
3. Prevention of Global Warming
We make a contribution to prevention of the global warming by efficient using of resources andenergy.
4. Continuous Improvement
We strive for continuous improvement by establishing an environmental management system andreviewing it in response to changes in the business environment.
5. Co­existence with Society
We promote open dialogue with our customers, shareholders, suppliers, employees, and society
through our efforts to preserve the global environment.
April 1, 2012
Junya Suzuki

58

CSR Report 2018

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

Operation of Environmental Management System
The scope of application of our environmental management system (EMS) extends to not only major
production bases but also small production bases and sales bases with little impact on the environment. We
divide these EMS sites into ISO14001 certification and non­certification sites so that we can set meaningfulpriorities in tune with the actual circumstances of each location, check and correct key management items
through internal audits, and operate an effective EMS.
At ISO14001 certification sites, which are also our major production bases, specific activities are based bothon negative risks to be maintained, managed, and improved through environmental risk assessment, and on
positive risks, which we view as environmental performance to be enhanced in sync with business targets andquality targets. Our environmental management not only conforms to procedures and legal obligations but also
links with our business operations, in line with the revised ISO14001 standard requiring strategic
environmental management. We build and operate a leaner internal audit structure combining environmental
internal audits with safety and health internal audits, which are conducted based on ISO14001 as well as
codes of conduct provided by the RBA and our customers.
In this way, through compliance with relevant legislation and with the needs of our customers, we promotestrategic environmental management with an eye to enhancing the level of environmental and safety
performance throughout the Nissha Group.

Nissha Group Environmental Management Structure

Energy Management and Environmental Communication Structures

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CSR Report 2018

Environmental Objectives and Status of Achievement
The Nissha environmental objectives defined in April 2015 represent medium­term goals covering the three­year period between the fiscal years ended March 2016 and December 2017 for the Nissha Group in Japan. In
the fiscal year ended December 2017, the final year of this period, each factory and relevant division aimed toachieve its individual environmental targets toward fulfilling the objectives of the Nissha Group in Japan as awhole.

1. Prevention of pollution
Target: Zero environmental accidents (accidents that affect areas outside the factory)
Reduce the possibility of environmental risks (by one risk level) by the end of fiscal year 2018

Assessment

Satisfactory
ISO14001 certification sites are working on environmental risk management andmeasures to reduce environmental risks. In the fiscal year ended December 2017, they
carried over measures from the previous year to focus on training in response to

Results

substance leakage and for emergencies, on top of making continuous efforts in rainwater
management. Nitec Precision and Technologies, Inc. (NPT) Tsu Factory, which started
mass production in the fiscal year ended December 2017, also implemented the samemeasures. As a result, the Nissha Group in Japan maintained zero environmental
accidents and achieved our environmental objective.

2. Prevention of global warming
Target: Reduce CO2 emissions rate (basic unit) by 3% or more by fiscal year 2018
Base:

Average of fiscal year 2015 results
Companies classified as “specified business operator” in the Act on the Rational Use of Energy
implement measures listed in their medium­ to long­term plan

Assessment

Poor
Major factories of the Nissha Group in Japan undertook measures to reduce CO2
emissions by basic unit. NPT Himeji Factory recorded 0.65, and NPT Kaga Factory 0.09
with the start of mass production (compared to the previous year’s results as 1.00), forsignificant improvement.

Results

Nitec Industries, Inc. (NII) Koka Factory, at 1.11, did not achieve its target despite various
activities aiming for improvement on account of the conversion to high­mix, small­lot
production. Nitec Printing Co., Ltd. (NPC) also failed to meet its target by basic unit
despite efforts to improve efficiency owing to a decrease in production volume. As a result,
we did not achieve our objective.

3. Reduction of waste
Target: Reduce waste generation rate (basic unit) by 3% or more by fiscal year 2018
Base:

Average of fiscal year 2015 results

Assessment
Results

Satisfactory
Major factories of the Nissha Group in Japan undertook measures to reduce waste. NPT
Himeji Factory recorded 0.86 and NPT Kaga Factory 0.68 (compared to the previous
year’s results as 1.00), leading to improvement. NPT Kyoto Factory, at 1.27, did not

60

CSR Report 2018

achieve its target despite efforts toward finer printing pitch. NII Koka Factory, at 0.99,
achieved its target regardless of the conversion to high­mix, small­lot production. NPC
also fell short of its target even though improvements in work efficiency led to a reductionin the amount of waste generated.
In the promotion of zero emissions (recycling and resource reuse rate of 99.5% or more),
thanks to ongoing efforts at NPT Kaga Factory to reduce the amount of wastewater sludge
generated, which must be sent to landfill, our recycling and resource reuse rate has
improved year by year, from 88.1% in the fiscal year ended March 2015, to 91.8% in thefiscal year ended March 2016, to 97.5

％ in the fiscal year ended March 2017, to 99.9％ in

the fiscal year ended December 2017. As a result, we achieved our environmental
objectives of both waste reduction and zero emissions.

4. Reduction of hazardous chemical substances
Target: Certification sites reduce usage rate of hazardous chemical substances

Assessment

Poor
In the fiscal year ended December 2017, we saw the effects of cost improvement at NPT
Himeji Factory, which worked to reduce usage of cleaning solvents, and at NPT Kaga

Results

Factory, that of flocculants for wastewater treatment. NPC Yachiyo Factory fell short of its
target despite efforts to reduce usage of solvents. As a result, we did not achieve ourobjective.

5. Environment­conscious design
Target: Introduce the viewpoint of energy and resource savings, durability, and recycling into the productdesign stage
Design environment­conscious processes and reduce the environmental impact of production

Assessment

Satisfactory
We introduce the viewpoint of environmental consciousness and the reduction ofenvironmental impact into products and production processes. In the fiscal year ended
December 2017, Nissha’s engineering and development divisions continued to work on
saving resources and developing environment­conscious products.
Nissha FIS, Inc. (FIS) is undertaking development of environment­friendly products such

Results

as power­saving sensors. NPT Himeji Factory made efforts to reduce usage of raw andintermediate materials. NII conducted reviews in product design and process design, andworked to reduce usage of toluene and xylene.
With the start of the Sixth Medium­term Business Plan, we have defined a new set of
Nissha environmental objectives to be aimed at by ISO14001 certification sites of the
Nissha Group in Japan during the six­year period between the fiscal years ending
December 2018 and December 2023.

New Environmental Objectives from Fiscal Year Ending December 2018
We have defined a set of environmental objectives for the Nissha Group applicable between the fiscal years
ending December 2018 and December 2023. Whereas our previous set of environmental objectives covered athree­year period, the new set covers a six­year period with the aim of carrying out activities over the longer
term.

Nissha Group Environmental Objectives[FY2018.12–FY2023.12]
Scope: Nissha Group in Japan ISO14001 certification sites (“certification sites”)
1. Prevention of pollution(1) Maintain zero environmental accidents (accidents that affect areas outside the factory)61

CSR Report 2018

(2) For environmental risks classified as significant environmental aspects on the hazard
assessment list, implement measures and reduce the possibility of occurrence by one level by
December 31, 2023
* The degree of severity may not change after measures are implemented* For items classified as “maintain,” follow the designated procedure and strive to prevent
environmental accidents* Risk levels in the environmental hazard assessment list are given separately in the Safety and
Health Management Manual
2. Attention to climate change(1) Reduce CO2 emissions rate (basic unit) by 6% or more by the fiscal year ending December
2023(2) Reduce CO2 emissions rate (basic unit) by 1% or more compared to the previous year
Baseline: Results in fiscal year ended December 2017
* Each organization may set KPI or quality targets as environmental targets* Companies classified as “specific business operator” in the Act on the Rational Use of Energy use
the basic unit reported under the act* Use the default value (0.555 kg­CO2/kWh) as emission factor<Sample initiatives>
In the area of fixed energy consumption, upgrade energy­saving facilities and equipment In the areaof variable energy consumption, improve production efficiency, quality, and work processes Make
effective use of space, e.g., through solar power generation, outdoor greening, and energy­saving
design3. Reduction of waste(1) Reduce waste generation rate (basic unit) by 6% or more by the fiscal year ending
December 2023
(2) Reduce waste generation rate (basic unit) by 1% or more compared to the previous year
(3) Maintain zero emissions (recycling and resource reuse rate of 99.5% or more)(4) Reduce cost of waste treatment
Baseline: Results in fiscal year ended December 2017
* Each organization may set KPI or quality targets as environmental targets* Indexes need not be the same as the CO2 emissions rate basic unit (production volume may besubstituted with number of items produced)<Sample initiatives>
Promote multi­sourcing and resource reuse
Control the amount of waste generated, e.g., by reducing use of raw materials
4. Reduce use of water Reduce use of water by improving production efficiency and saving
water (Certification sites set individual targets)
5. Reduce use of chemical substances Certification sites reduce usage rate of chemical
substances (Certification sites set individual targets)
6. Environment­conscious design(1) Introduce the viewpoint of energy saving, resource saving, durability, recycling, and so onin product design and development(2) Design environment­conscious processes and reduce the environmental impact of
production<Sample initiatives>
Assess positive risks
Design and develop products that do not contain substances prohibited in the Nissha Control Criteria
for Chemical Substances in Purchased Products
7. Enhance environmental performance in supply chain / value chain Enhance environmental
performance based on customer requirements and the RBA code of conduct (applicable sites
only)Note 1: Nissha Group environmental objectives, as a rule, cover a six­year period
Note 2: Nissha Group environmental objectives are to be reviewed in line with changes in internal(e.g., medium­term business plan) and external circumstances
Note 3: Each site selects applicable items from Nissha Group environmental objectives

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CSR Report 2018

Environmental Impact as a Result of Business Operations
In order to grasp the impact of our business operations on the environment, we conduct surveys of resourceand energy usage (input) and gas, water, and waste emissions (output). The results for the Nissha Group in
the fiscal year ended December 2017 are given in the table below.
With the change in fiscal year end date from March 31 to December 31, input and output in the fiscal year
ended December 2017 represent the results of a nine­month period (April–December) at production bases inJapan, and as usual a twelve­month period (January–December) at overseas production bases. Results for
the Graphic Controls Group, acquired as a subsidiary in August 2016, covered a four­month period(September–December 2016) in the previous report but account for a twelve­month period (January–
December) starting in the fiscal year ended December 2017.
For the above reasons, the results presented in this report cannot be compared with those of the previous year
under the same conditions. Nevertheless, the Devices business saw a significant increase in both input andoutput primarily owing to the start of full­scale mass production for large orders at Nitec Precision andTechnologies, Inc. (NPT). The Information and Communication business saw a decline in both input andoutput mainly due to a decrease in production volume with a production tie­up since April 2016 reaching fullscale at Nitec Printing Co., Ltd. (NPC).

63

CSR Report 2018

Industrial Materials

INPUT

OUTPUT

Production bases in Japan

Production bases in Japan

PET/acryl film

1,546tSolvents

1,212tGravure Ink

1,443tRecyclable resources

Waste containing(items sold fornoble metals

recycling)
Metal waste
Resin waste

Others153t
Paper waste

Devices

6,798tMaterials used in
product manufacturing

Recyclable resources

10,120t

Waste plastic(industrial waste)

processes

Iron scrap, waste

Information andOthers4,497t

cans

Paper

6,419tWaste solvents, waste

Ink

67t

Others70t

Metallic materials

2t

Resin materials

2tHalf­finished goods

31tink, waste cloth

Communication

Waste acid, alkali
Sludge, others
FIS

Waste for simple

General businessincineration/landfill

waste

12,157t

Others (industrial
waste)

Total for production

17t

25,564tbases in Japan

Total for production

18,972tbases in Japan

Overseas production bases

Overseas production bases
ResinTotal waste

4,439tMolds and molding

Total for overseas

93tmaterials
Touch sensors

12,178t

production bases

0t

Paper

66,022t

Cardboards

244t

Aluminum

119t

Chemical substances

10,389t

Others

1,756tTotal for overseas

83,062t

production bases
Total for Nissha

108,625t

Group

Including production bases in Japan and overseas

Including production bases in Japan and overseas
Energy12,178t

Electricity

218,104MWh

Gas

8,894,000m3

EmissionsCO2

139,817t

VOC (including
volume of after

Water

Tap water
Underground waterIndustrial water

923,000m3

combustion andtreatment)

9,000m3
Wastewater

1,679,000m3

641,340t2,440,000m3

CSR Report 2018

Prevention of Further Global Warming
Risks involving climate change are a great challenge for corporate activities. As part of our CSR efforts, we at
the Nissha Group set and work toward target values especially in reducing CO2 emissions, a cause of global
warming and thus climate change.

Status of CO2 Emissions at Nissha GroupCO2 emissions and energy consumption at the Nissha Group between the fiscal years ended March 2016 andDecember 2017 are given in the graphs below. With the change in fiscal year end date, data for the Nissha
Group in Japan in the fiscal year ended December 2017 cover a nine­month period from April to December(and a twelve­month period, from April to March, in FY2016.3 and FY2017.3).

Trends in CO2 Emissions Volumes and Basic Unit

Trends in Energy Consumption and Basic Unit

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CSR Report 2018

Trends in Electricity Consumption

Trends in Gas Consumption

Trends in Gasoline, Diesel, and Heavy Oil Consumption

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CSR Report 2018

Comparison of CO2 Emissions in 2016 and 2017
In order to compare results under equal conditions, we have re­calculated data for the periods representing
January–December 2016 and January–December 2017, as given below. CO2 emissions from the Nissha
Group in January–December 2017 totaled 174,387 t­CO2, for an approximately 39% increase compared to theprevious year. Emissions from the Nissha Group in Japan in 2017 amounted to 127,746 t­CO2, for a 42%
year­on­year increase. The result comes mainly from the start of mass production for large orders in the
Devices business and rises in emissions at Nitec Precision and Technologies, Inc. (NPT) Kaga Factory and
Tsu Factory, contributing to a 71% increase in emissions from NPT. Emissions from Nitec Industries, Inc. (NII),a production base of the Industrial Materials business, decreased by 17% to 18,951 t­CO2. CO2 emissions
from overseas production bases in 2017 amounted to 46,641 t­CO2. With data for the Graphic Controls Group,
which joined the Nissha Group in the fiscal year ended March 2017, covering a four­month period in 2016 anda twelve­month period in 2017, the share of CO2 emissions from overseas production bases rose to about
27% in 2017. The Nissha Group emits virtually no energy­related greenhouse gases other than CO2, and theireffects are minimal.

Trends in CO2 Emissions Volumes and Basic Unit

Trends in Energy Consumption and Basic Unit

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CSR Report 2018

Trends in Electricity Consumption

Trends in Gas Consumption

Trends in Gasoline, Diesel, and Heavy Oil Consumption

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CSR Report 2018

Basic Unit Management by Production Volume and Its Issues
The enactment of the revised Act on the Rational Use of Energy demands the comprehension andmanagement of energy use per company. In order to improve our energy efficiency as well as comply withlegal requirements in line with this shift, since the fiscal year ended March 2014 we manage emissions under abasic unit based on factors such as production volume per company.
With 1.00 indicating benchmark results of each major affiliated company that constitutes a production base of
the Nissha Group in the fiscal year ended March 2017, we set targets for the fiscal year ended December
2017 at 0.99 or less. The results are given in the table below.
Starting in the fiscal year ending December 2018, we changed the name of a Nissha Group environmental
objective from “Prevention of global warming” to “Adaptation to climate change.” In cooperation with production
bases, the Environmental, Safety and Health Subcommittee of the CSR Committee will work to reduce fixedenergy consumption and streamline variable energy consumption in continuous efforts toward improvement bybasic unit.

Basic Unit
(based on production volume etc.)
Company

FY ended

FY ended

FY ended

FY endedMar. 2017

Dec. 2017

Dec. 2017

Results

TargetResults

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

Dec. 2017
Evaluation

1.00

0.99 or less

0.98

○

1.00

0.99 or less

1.11

×

1.00

0.99 or less

0.64

○

1.00

0.99 or less

0.12

○

1.00

0.99 or less

1.46

×

1.00

0.99 or less

1.15

×

Note: Evaluations are based on April–December 2017 results

Initiative in Scope 3 Management
In line with the move in recent years to report indirect emissions from companies through their supply chain,
defined by the Carbon Disclosure Project (CDP) as Scope 3 sources, and to promote reductions toward
improving the company’s ESG rating,* the Environmental, Safety and Health Subcommittee continues to leadefforts at Nissha to survey Scope 3 emissions and improve our ESG rating.
In the fiscal year ended December 2017, CO2 emissions amounted to 2,797 t­CO2 from employee commuting,
1,406 t­CO2 from business travel, 30,851 t­CO2 from major logistics suppliers in Japan, and 13,095 t­CO2
from major materials suppliers in Japan.
We plan to continue our efforts in Scope 3 management in cooperation with our suppliers.
Scopes 1, 2, 3: Scopes of GHG emissions
Scope 1: Direct GHG emissions from sources owned or controlled by the company
Scope 2: Indirect GHG emissions through consumption of electricity, steam, or heat
Scope 3: Indirect emissions other than those in Scope 2* ESG rating: A method of evaluating companies based on environmental, social, and governance criteria

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CSR Report 2018

Waste Management
Initiatives of the Nissha Group in Japan
In the fiscal year ended December 2017, the Nissha Group in Japan generated a total of 18,972 tons of waste
in the nine­month period between April and December 2017. This is a drastic increase, considering that theamount of waste generated was 11,339 tons in the fiscal year ended March 2017, representing the twelve­year
period between April 2016 and March 2017. The surge comes mainly from the start of mass production forlarge orders at Nitec Precision and Technologies, Inc. (NPT) Kaga Factory and Tsu Factory.
By contrast, the volume of simple incineration and landfill waste amounted to 17 tons, for a dramatic year­on­
year decrease from 208 tons, thanks to the start of efforts at NPT Kaga Factory to recycle sludge through an
improved wastewater treatment method. As a result, our recycling and resource reuse rate was 99.9% in thefiscal year ended December 2017, for a 2.4 point improvement from 97.5% in the fiscal year ended March
2017, and we achieved our zero emissions target (a recycling and resource reuse rate of 99.5% or more).

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

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

All waste generated

FY ended MarchFY ended MarchFY ended

2016

2017

December 2017

（tons）

226

207

231

Recycling and resource reuse rates in Asian production bases (FY ended December 2017)
Targets

Results

Evaluation

Guangzhou Nissha

72% or more

74%○

Nissha Kunshan

88.9% or more

91%

○

70

CSR Report 2018

Targets
Nissha Precision Technologies Malaysia

90% or more

Results

Evaluation

97%○

Risk Management Related to Waste and Waste Converted in Valuable Resources
We recognize largely three types of waste­related risk:
Accidents and disasters caused by waste and waste converted into valuable resources (including attreatment contractors)
Environmental pollution and violation of laws caused by inappropriate waste treatment
Leakage of confidential information from waste and waste converted into valuable resources
Based on laws and customer demand, we have created a set of Nissha Group Waste Management
Regulations that enables all bases of the Nissha Group to manage waste safely under the same set ofstandards. In line with these regulations, each base has drawn up its own Waste Management Manual andmakes efforts toward thorough waste separation and management. Whether a small amount of substance or aspray can, the properties of waste are checked meticulously and monitored so as to prevent spillage duringtransportation and accidents at treatment facilities. The regulations also stipulate the criteria for selecting
waste treatment contractors and for regularly inspecting treatment facilities using a checklist original to Nissha.
In addition, we have in place standards for managing waste and waste converted into valuable resources that
contain confidential information, and promote management in association with our information security
management system (ISMS).
In the fiscal year ending December 2018, we completed the introduction of an electronic manifest at major
production bases of the Nissha Group in Japan.

71

CSR Report 2018

Monitoring and Prevention of Pollution
Measures to Help Prevent Pollution
We undertake monitoring and measuring activities to prevent pollution. Based on our strict voluntarystandards, we conduct periodic testing the level of atmospheric pollutants, wastewater quality, noise, and foulodor.

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

Agreement
value (Law
Regulatory
value
Items

(Watermeasured

Pollution

FY ended March 2016

FY ended March 2017

FY ended December 2017of theAnalysisAnalysisAnalysis

Environment

value

Concerning
SpecialMeasuresforConservation

ControlAct)

Voluntarystandard

Unit
Evaluation

value

Evaluation

value

Evaluationof the Seto
Inland Sea)
Discharged

5,200

5,000

～8.6

5.8 8.6

BOD

120.0

10.0

9.0

COD

120.0

10.0

SS

150.0

water
pH

n­hexanederivedsubstances

5.8

m3

4,613

○

～7.5

○

mg/L

3.1

9.0

mg/L

5.0

4.5

1.0

～

5,000

4,969

○

～7.6

○

○

3.5

4.9

○

mg/L

1.3

0.9

mg/L

～8.0

6.5

7.0

4,976

○

～8.0

○

○

1.4

○

4.8

○

4.6

○

○

0.9

○

3.0

○

0.5

○

0.8

○

0.6

○

6.9

6.8

Mineral oil
5
Vegetableoil 30Phenol

5.0

0.1

0.1

mg/L

< 0.005○< 0.005○< 0.005○

Copper

3.00

0.50

0.40

mg/L

0.01

○

0.05

○

0.03

○

Zinc

2.00

1.50

1.20

mg/L

0.01

○

0.02

○

< 0.01

○

10.00

0.15

0.08

mg/L

0.02

○

0.02

○

< 0.01○10.000

0.050

0.045

mg/L

0.040

○

0.050

△

0.05

△

Chromium

2.00

0.02

0.02

mg/L

< 0.02○< 0.02○< 0.02○

Nitrogen

60.0

10.0

9.0

mg/L

3.6

△

4.2

○

5.4

○

Phosphorus

8.00

1.00

0.45

mg/L

0.02

○

0.02

○

0.14

○

Solubleiron
Solublemanganese72

CSR Report 2018

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

FY ended March 2016
Regulatory
Items measured

value(Prefecture)～8.6

Voluntary

FY ended March 2017

Unit

standard

Fab3

～8.2

pH

5.8

BOD

160 or less40 or less

COD

160 or lessSS

(Average)

Final

Final

Final

effluent

effluent

effluent(Maximum)(Average)(Maximum)

7.5

○

­

­

7.4

○

7.7

○

7.5

○

7.6

○

mg/L

32.0

○

­

­

7.5

○

27.0

○

31.5

○

47.0

­

80 or less

mg/L

39.0

○

­

­

9.1

○

26.0

○

35.4

○

63.0

○

200 or less20 or less

mg/L

4.4

○

­

­

2.6

○

4.2

○

15.6

○

26.0

­

30.0

15 or less

mg/L

0.5

○

­

­

0.5

○

0.5

○

0.5

○

0.5

○

n­hexane derived
substances

6.2

Final effluent

Fab5

FY ended December 2017

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

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

Regulatory
value
Items

(Watermeasured

Pollution
Control
Act)

pH

～8.6

5.8

BOD

120.0

COD

120.0

SS

150.0

N­hexane

5.0

Phenol5.0

Copper

3.0

Zinc
Solubleiron
Solublemanganese
Chromium
Coliform
bacteria

Agreement
value ofFY ended March 2016
Voluntary

Tsu City
standard
environmental

～8.6
≦20.0
≦20.0
≦70.0
≦5.0

FY ended December 2017

Unit
Jun.

conservation
5.8

FY ended March 2017

～8

6.5

Dec.

Jun.

Dec.

Jun.

Dec.

­

­

­

­

­

­

­

­

8.0

○

7.8

○

mg/L

­

­

­

­

­

­

­

­

9.4

○

< 5.0

○

mg/L

­

­

­

­

­

­

­

­

6.1

○

3.6

○

≦20.0
≦20.0
≦70.0
≦5.0

mg/L

­

­

­

­

­

­

­

­

< 1.0

○

< 2.0

○

mg/L

­

­

­

­

­

­

­

­

< 1.0

○

< 2.0

○

5.0

mg/L

­

­

­

­

­

­

­

­

< 0.025

○

< 0.5

○

mg/L

­

­

­

­

­

­

­

­

< 0.01

○

< 0.1

○

mg/L

­

­

­

­

­

­

­

­

< 0.01

○

< 0.1

○

0.2

○

0.3

○

2.0

≦3.0
≦2.0

≦3.0
≦2.0

10.0

≦10.0

≦10.0

mg/L

10.0

10.0

mg/L

­

­

­

­

­

­

­

­

< 0.1

○

< 0.1

○

2.0

2.0

mg/L

­

­

­

­

­

­

­

­

< 0.04

○

< 0.1

○

3,000

≦3,000 ≦3,000

unt/mL< 30.0

○

58

○

≦10.0
≦1.0

mg/L

7.1

○

1.0

○

mg/L

0.03

○

< 0.1

○

8.0

8.0

mg/L

­

­

­

­

­

­

­

­

0.1

○

­

Cadmium

0.03

0.03

mg/L

­

­

­

­

­

­

­

­

< 0.005○­

Cyanide

1.0

1.0

mg/L

­

­

­

­

­

­

­

­

< 0.1

○

­

Lead

0.1

0.1

mg/L

­

­

­

­

­

­

­

­

< 0.02○­

Nitrogen

60.0

Phosphorus

8.0

Fluorine

≦10.0
≦1.0

73

CSR Report 2018

Hexavalent

0.5

0.5

mg/L

­

­

­

­

­

­

­

­

< 0.04

○

­

0.1

0.1

mg/L

­

­

­

­

­

­

­

­

< 0.01

○

­

0.005

0.005

mg/L

­

­

­

­

­

­

­

­

< 0.0005○­

chromium
Arsenic
Total
mercury

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

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

FY ended March 2016

PRTR
No.

FY ended March 2017

VolumeName ofchemical
substance

FY ended December 2017

VolumeVolumeDischargetransferred toReporting

Dischargetransferred toReporting

Dischargetransferred

Reportingvolume into

industrial

required /volume into

industrial

required /volume into

to industrial

required /

the

waste

not

the

waste

not

the

waste

not

atmosphereprocessing

required

atmosphereprocessing

required

atmosphereprocessing

requiredcompanies

companies

companies

53

Ethylbenzene

3,100

820

○

4,300

1,000

○

2,109

530

○

80

Xylene25,0006,500○

25,0006,400○

16,261

4,219

○

0.1

0.0

○

0.1

0.0

○

0.1

0.0

○

750

470

○

1,300

530

○

2,258

1,114

○

Hexavalent
88

chromiumcompounds296

1,2,4­
Trimethylbenzend

300

Toluene200,000

120,000○

83,00048,000○66,39939,970○392

N­hexane

8,500

5,400

○

5,300

3,000

○

5,261

3,227

○

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

FY ended March 2016

PRTR
No.

Name ofchemical
substance

Discharge
volume intotheatmosphere

71

Ferricchloride

FY ended March 2017

FY ended December 2017
VolumeVolumeVolumetransferred toindustrial waste
processing
companies

Reporting

Dischargetransferred toReporting

Dischargetransferred

Reportingrequired /volume into

industrial

required /volume into

to industrial

required /

not

the

waste

not

the

waste

not

required

atmosphereprocessing

required

atmosphereprocessing

requiredcompanies

companies

0.0

0

○

0.0

0

○

0.0

0

○

0.0

1,700.0

○

0.0

330

○

0.0

330

○

0.0

0.0

○

Water­soluble
272

copper salts(excluding
complex salt)
Molybdenum453

and its
compounds

74

CSR Report 2018

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

FY ended March 2016

PRTR
No.

Name ofchemicaltransferred tovolume into

substanceindustrial waste

theprocessing

atmosphere

FY ended December 2017

VolumeVolumeDischarge

FY ended March 2017

companies

VolumeReporting

Dischargetransferred toReporting

Dischargetransferred

Reportingrequired /volume into

industrial

required /volume into

to industrial

required /

not

the

waste

not

the

waste

not

required

atmosphereprocessing

required

atmosphereprocessing

requiredcompanies

companies

Silver and its
82

compounds­(water

­

­

­

­

­

­

­

­

soluble)71

Ferricchloride

0.0

0.0

○

0.0

0.0

○

0.0

0.0

○

0.0

0.0

○

0.0

0.0

○

0.0

0.0

○

0.0

0.0

○

Water­soluble
272

copper salts(excluding
complex salt)
Molybdenum453

and its

­

­

­

­

­

­

compounds

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

FY ended March 2016

PRTR
No.

Name ofchemical
substance

Discharge
volume intotheatmosphere

71

Ferricchloride­

Volumetransferred toindustrial waste
processing
companies­

FY ended March 2017

Reporting

Discharge

required /volume into

not

the

required

atmosphere­­

Volumetransferred toindustrial waste
processing
companies­

FY ended December 2017
VolumeReporting

Dischargetransferred toReportingrequired /volume into

industrial

required /

not

the

waste

not

required

atmosphereprocessing

requiredcompanies
­

0.0

0.0

◯

*Added to scope of reporting in the fiscal year ended December 201775

CSR Report 2018

Status of Waste Generation at Bases
Status of Waste Generation at Major Production Bases (December 2017 Results)
Nitec Industries, Inc. (NII) Koka Factory
Location: Koka City, Shiga Prefecture
Acquisition of ISO14001 Certification: June 2007
Production items: Transfer foils (the Industrial Materials business)％

Recycling and resource reuse rate: 100.0

76

CSR Report 2018

Nitec Precision and Technologies, Inc. (NPT) Himeji Factory
Location: Himeji City, Hyogo Prefecture
Acquisition of ISO14001 Certification: March 2014
Production items: Touch sensors (the Devices business)
Recycling and resource reuse rate: 100.0%

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

77

CSR Report 2018

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

Recycling and resource reuse rate: 100.0%

Nitec Printing Co., Ltd. (NPC) Yachiyo Factory
Location: Yachiyo City, Chiba Prefecture
Acquisition of ISO14001 Certification: December 2004
Production items: Printing and binding of books, catalogs, leaflets, etc., using sheet offset
press (the Information and Communication business)
Recycling and resource reuse rate: 98.0%

78

CSR Report 2018

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

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

79

CSR Report 2018

Initiatives Related to Information Security
Information Security Policy
The spread of the Internet and the broad use of devices such as smartphones have ushered in a convenient
era in which anyone can connect with the online community easily at all times. On the other hand, withcyberattacks, email spoofing, and other crimes against information security growing rampant and ever moreadvanced, the risks are increasing of everyone becoming either a victim or perpetrator of information leakage.
We recognize the importance of never leaking outside the company (or beyond related parties) information
entrusted to us by our customers and suppliers, information about our employees, and particularly highly
confidential information assets such as information on new products and state­of­the­art technologies, andpersonal information. All our employees adhere to our Information Security Policy, which we drew up in andimplement since 2005 with the aim of building a highly reliable and safe information security management
system (ISMS).

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

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

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

Information Security Management Structure
We have in place an Information Security Subcommittee of the CSR Committee to serve as a center for thepromotion of information security. The subcommittee is run by an ISMS management representative (the Chief
Information Officer, or CIO) and comprises information security managers and promoters selected from eachdepartment. An ISMS secretariat set up within the IT Department functions as the subcommittee secretariat.
The subcommittee plays an important role in the promotion of our ISMS by addressing issues that have80

CSR Report 2018

become evident as well as reporting and sharing the results and challenges of initiatives related to information
security.

Management Structure

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

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

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

81

CSR Report 2018

Trade Management
We at the Nissha Group earned 81.5% of our sales outside Japan in the fiscal year ended December 2017.
With overseas operations expanding each year, efforts in trade management are essential from theperspective of business continuity.

Net sales and percentage of overseas sales

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

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

82

CSR Report 2018

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

Trade Administration and Control Subcommittee

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

Initiatives on FY ended December 2017
In the fiscal year ended December 2017, we reviewed our educational programs on trade management andorganized an education system. Through enhanced group­wide rank­specific programs in Japan, we continue
in our efforts to ensure appropriate export and import procedures and raise employee awareness of security.
We also conduct regular internal audits in order to check and evaluate the status of trade management
operations, and provide thorough follow­up education to divisions at which findings or concerns have surfaced,
toward ensuring higher levels of safety and operational quality, and strengthening compliance.

83

CSR Report 2018

We hope to continue striving for safe, secure, and speedy international logistics services that meet thedemands of our customers and of society.

AEO Approval
Nissha Co., Ltd. obtained approval as an AEO Exporter in June 2014, and as an AEO Importer in June 2015.
In May 2016, we received our first post­audit and maintained our status as AEO Exporter.
As of the end of 2017, 58 companies in Japan are approved as both AEO Importer and AEO Exporter. Being
one of these companies with dual approval, we have in place a system for safe and smooth international
logistics.
Nissha Precision Technologies Malaysia Sdn. Bhd., based in Malaysia, obtained approval as both an AEO
Exporter and an AEO Importer in October 2014.

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

84

CSR Report 2018

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

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

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

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

Intellectual Property Training Programs
We organize internal training programs so that employees may
deepen their understanding of and properly protect intellectual
property. In the fiscal year ended December 2017, we invitedan outside specialist to conduct sessions divided into fourlevels—introductory, basic, advanced, and practical research—in which participants learned in detail about intellectual
property law, how to research other companies’ patents, andpromoting technology development and filing for patentapplication. We also hold sessions in which a member ofIntellectual Property Management serves as instructor.
Intellectual property training program
Instructor: Mr. Tatsushi Gocho, Patent Attorney,
Associate Professor of Osaka Institute ofTechnology
Commissioned organizer: CKS Corporation

85

CSR Report 2018

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

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

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Basic Approach to CSR Procurement Promotion

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

Supply Chain of the Industrial Materials and Divices Businesses

CSR Supplier Audits
We conduct CSR audits on our suppliers. The audits cover five areas— labor, health and safety,
environmental, ethics, and management system—drawing on the global code of conduct provided by RBA(Responsible Business Alliance) and on our customers’ own code of conduct based on this RBA template.
Prior to auditing, we organize a briefing to explain the background, purpose, standards, and flow of the CSR
audit. The audit process consists of an inspection of the supplier’s employment regulations and time cards,
tours of the site premises including the clean room, and interviews with employees. In the event the audit
uncovers any instances of noncompliance, the supplier is required to establish corrective action (CA) andpreventive action (PA) on the findings. Roughly three months later, auditors checked that CA and PA havebeen taken and the noncompliance has been remedied, bringing the CSR audit to completion.
From fiscal year 2015 onward, we carry out audits focusing on particularly important suppliers and new
suppliers. In the fiscal year ended December 2017, with the start of full­scale mass production at Nitec
Precision and Technologies, Inc. (NPT) prompting recognition of the high risk of human rights issues, we
conducted audits at four suppliers including temporary employment agencies. This combined with the 14
companies audited to date brings the total to 18. The audits detected 183 instances of noncompliance (84related to labor and human rights, 53 to safety and health, 29 to the environment, 12 to ethics, and 5 to87

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management system). Working hours management and retirement process were among the main findings.
We will continue with CSR audits at particularly important suppliers in the future. In the fiscal year ending
December 2018, we plan to conduct audits at outsourcing contractors and temporary employment agencies.

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

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

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

Initiatives on FY ended December 2017
Basic course in the Act against Delay in Payment of
Subcontract Proceeds
In order to promote legally appropriate transactions, we invite
an outside instructor (attorney) and organize lectures at basesof the Nissha Group in Japan. In the fiscal year ended
December 2017, we attracted a great number of divisions byexpanding the scope of participation from procurement
divisions to the Nissha Group’s finance divisions, responsible
for payment, and divisions in charge of providing services.
Since the participants had already deepened their basic knowledge through previous sessions, this year we
added to the basic course optional instructions in shaped components (sokeizai) industry guidelines andprinting industry guidelines, offering the opportunity to study industry­specific best practices in transactions.

Training for new procurement personnel
We conducted training for eight new hires in and transferees
to procurement divisions of the Nissha Group in Japan,
covering the basic knowledge needed by employees
engaging in procurement operations. The session attracted
many observers even from outside the procurement divisions.

Procurement program
In order to foster next­generation leaders (managers), we
conduct job­specific selective training for procurement
divisions of the Nissha Group in Japan. The program ran forthree consecutive years since the fiscal year ended March
2016, with 13 employees selected from various divisions
participating in the final year, the fiscal year ended December
2017. Training was divided into a total of six sessions, four by
an outside instructor and two by an in­house instructor. The
participants gained basic knowledge for procurement divisions, as well as knowledge in laws and contracts
and in reading financial statements. They were required to submit a report and take an online test to ensurethat the knowledge gained through the training took root in their minds.

Program Participation
Lecture/Training

Participants in FY2017

Basic course

151 (total of 5 bases)

Training for new procurement personnel

8 (100% attendance)

Procurement program

13 (total)* Training curriculum for new procurement personnel: Procurement personnel basics; procurement at Nissha; Basic
Purchasing Policy; purchasing control regulations; CSR procurement; quality, cost, delivery, service (QCDS); Act against
Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors

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Initiatives Related to Conflict Minerals
The major conflict minerals used in Nissha Group products include tin used in some decoration films and in
ITO film*1 for touch panels, and gold used in FPC*2 plating. We investigate all of the materials that make up
our products using a Safety Data Sheet (SDS) and identify those that contain conflict minerals. Further, we ask
our materials suppliers not to source minerals produced by smelters not identified as conflict free.
In fiscal year ended December 2017, we expanded the scope of our investigation to the products ofcompanies new to the Nissha Group. In future, we will continue our efforts to engage in minerals procurementwith integrity in line with our Underlying Philosophy Concerning Corporate Responsibility for Minerals
Procurement.

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

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

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

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

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Initiatives Related to Anti­corruption
The United Nations Global Compact to which Nissha Co., Ltd. is a signatory lists anti­corruption as its 10thprinciple. And in recent years, global society has seen a tightening of controls pursuant to anti­corruption
legislation including the United States’ Foreign Corrupt Practices Act and the United Kingdom’s Bribery Act.
We at Nissha have also seen a rise in demand to follow anti­corruption provisions set forth in the codes ofconduct provided both by our customers and by Responsible Business Alliance (RBA).
The Nissha Group cites prohibition of corrupt practices as an important point of our Guideline of the Corporate
Ethics and Compliance. We formulated a new set of Nissha Anti­Corruption Guidelines on April 1, 2017, andare working to promote the background and purpose to bases in and outside Japan. At overseas bases,
particularly in Asia, we conducted interviews and training about initiatives in the prohibition of corrupt practices.
The interviews turned up no significant issue within the Nissha Group; however, we will continue to keep an
eye on certain regions in which bribery and corruption are rife.
We plan to continue keeping an eye on movements in the global community as well as the situation in the
Nissha Group, and will review the contents of our initiatives as the need arises.

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

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

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

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

December 25, 201792

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Consumer Issues
With the aim of providing products and services

that satisfy and meet the needs of our customers,

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

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

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

Quality Management System (QMS)
We operate a quality management system that meets the requirements of international standard ISO
9001:2008, and promote improvements in quality under our comprehensive quality assurance initiative Nissha
Group Total Quality Management (NTQM).
We have also obtained IATF 16949 (ISO/TS 16949) certification, covering the quality management system in
the automotive industry. Certification for decorative molding was obtained by Nissha Precision Technologies
Malaysia Sdn. Bhd. in 2016 and by Nissha (Kunshan) Precision IMD Mold Co., Ltd. in 2017, and that for touch
sensor modules by Nitec Precision and Technologies, Inc. (NPT) Kyoto Factory also in 2017. With Nissha Co.,
Ltd. obtaining a Class 2 medical devices marketing license and manufacturing license in 2017, and FIS Inc.
becoming a registered medical device manufacturer of Hyogo Prefecture, we are making steady efforts tobuild a quality assurance structure that fits our new business segments.

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Quality Assurance Structure

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

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

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

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

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Quality Slogan

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

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

Continuous Improvement
The accumulation of bits of insight and ingenuity from all employees is the source of great improvements inwork processes. This approach forms the foundation of Nissha Group’s small­group activities andimprovement proposal system. We recognize these as important mechanisms to work on and develop acrossthe Nissha Group.
We also plan and execute various education programs on a continuous basis. Underpinning our enthusiasm
about human resources development are the ideas that the quality of people plus the quality of work equals
the quality of the company, and employees are our most important management resources.

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

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

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Practical education

1) Support for small­group activities
2) Nissha Academy (Monozukuri School etc.)

Information sharing /reciprocal learning

Company­wide Presentation Meeting of Small­group Activities

Quality and Safety of Products
We at Nissha provide our customers with explicit information on product usage and safety in documents suchas delivery specifications. In the event a serious accident occurs as a result of flaws in our products andservices, which may violate laws or regulations, we establish a CPL* committee and strive for a quick
resolution. We are also prepared to report the incident to government agencies in accordance with laws and to
notify our customers as soon as possible. We communicate to our employees the importance of ensuring thequality and safety of products through corporate ethics and compliance training.
Up to fiscal year ended December 2017, the number of instances in which we organized a CPL committee orviolated laws was zero, resulting in a fine of 0 yen. We will strive to maintain our zero violation record in the
future.
*CPL: Combination of contractual liability (CL) with product liability (PL)Management of Chemical Substances in Products
We at Nissha have in place two sets of criteria for managing chemical substances: the Nissha Control Criteria
for Chemical Substances, covering Nissha products and packaging materials, and the Nissha Control Criteria
for Chemical Substances in Purchased Products, covering procured items such as primary and secondary raw
materials. Both reflect the laws and regulations of relevant countries and regions, including the Restriction ofHazardous Substances (RoHS) directive and the Registration, Evaluation, Authorization, and Restriction ofChemicals (REACH) regulation, as well as the substance­related criteria of our customers. Whenever ourcustomers’ criteria change, we identify the differences from our criteria and work to conform to our customers’
request. Apart from this, we review our criteria once a year, making revisions as necessary, and organize
briefing sessions for related divisions and our suppliers.
When selecting new materials in the design and development stages, we conduct design reviews related tomaterials and assess compliance with our criteria. Our factories are building a mechanism for accepting
materials that meet our criteria, ensuring traceability, identifying and separating noncompliant substances, andresponding to issues swiftly such as through reporting in efforts to prevent misuse and contamination.
Corporate Environmental and Safety Management of Corporate General Affairs functions as a secretariat andworks with the product development, quality assurance, and procurement divisions of each business unit topromote management of chemical substances in products. It also carries out internal environmental audits ona regular basis to inspect the management status. This internal structure implements strict control of chemical
substances from the design stage to the final product, and responds to changes in the needs of society andthe demands of our customers.

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

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

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

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

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

Initiatives for Next Generation Support
Children’s Workshop “Machikusa Mikke!”
In collaboration with the NPO Kids Meet Artists (Director Haruka Idegami), we organize the children’s
workshop “Machikusa Mikke!” (Wild­plant Hunt) with the aim of developing in children an interest in theenvironment and unleashing their creativity and imagination. Since its launch in the fiscal year ended March
2010, the program has been conducted a total of 21 times with participation of about 800 children.
In the workshops, guided by artist Shimpei Shigemoto, aka “Professor Machikusa,” the children observe
weeds (Machikusa, or “city grass”) that generally go unnoticed in daily life, give them original names of theirchoice, and photograph them with a digital camera. Later, the children make presentations of their findings anduse the photographs to create Machikusa cards.
On October 28, 2017, we organized a session of “Kyoto Rakuhoku Machikusa Mikke!” sponsored by the NPO
Kyoto Rakuhoku Moritomizunokai, comprising 30 shrines and temples in the Rakuhoku area of Kyoto, at Kyoto

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City Shimogamo Elementary School (Sakyo­ku, Kyoto). Sixteen pupils from the 3rd to 5th grade hunted for
Machikusa in the school playground, named and photographed them, used the photos to create Machikusa
cards, and made presentations of their findings.

Presentation of Nissha Award at 12nd Supreme Moving Toy Contest in Kyoto
In the field of next generation support given in our Basic Social Contribution Policy, Nissha Co., Ltd. is asponsor of the Children’s Monodzukuri Project run by the Kyoto City Board of Education. We host a corporate
booth at the Monodzukuri Hall of Fame in the Kyoto City Inquiry Learning Center for Career Education, andprovide teaching materials and programs for elementary school pupils with the hope of nurturing children’s
curiosity in “monozukuri,” or manufacturing.
As part of these activities, we supported the 12th Supreme Moving Toy Contest in Kyoto (sponsored by theChildren’s Monodzukuri Project Promotion Council, the Kyoto City Board of Education, and others), held on
January 21, 2018, at Kyoto Kogakuin Senior High School. Our role was to provide teaching materials and run
a corporate booth.
The toy contest invites elementary school pupils from the 3rd to 6th grade to make their own rubber­powered
toy and join the competition. Events include a speed and distance competition of racing cars made by thechildren, and a design and performance competition of decoration cars.
This year’s event attracted about 1,100 visitors including some 600 elementary school pupils. The intense race
saw the setting of numerous new records, each kindling such excitement that it chased away the winter chill.
We provided a racing car assembly kit and original stickers for the beginners’ category targeting third andfourth graders, and presented certificates of merit, trophies, and medals to top­ranking contestants as the
Nissha Award.
Our corporate booth featured a quiz titled “Explore Nissha’s 5 mysteries,” where visitors searched for hints in adisplay panel and answered questions on a tablet computer. The corner attracted a lively crowd of elementary
school pupils, who read and reread the panel, interacted with the tablet, and enjoyed the game with parents
and friends.

Environmental Workshops at Local Elementary Schools
Our employees at Nissha Group mainly at production sites in Japan visit local elementary schools and nurseryschools and conduct environmental workshops.
In the fiscal year ended December 2017, workshops were held at two elementary schools in Kyoto, home to
our Global Headquarters, and two in Kaga City, Ishikawa Prefecture, home to one of our production bases.
The children learn about preventing global warming, how to separate garbage, and other environmental
activities closely associated with their daily lives. As a uniquely Nissha program, we introduce the secrets ofprinting and of touch panels with the aim of sparking interest in “monozukuri,” or manufacturing, and fosteringa sense of professional values. Participants in this initiative, which started in the fiscal year ended March 2008,
number about 4,600 children at 91 schools to date.

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Sponsorship of Museum Exhibitions and Art Events
As part of our efforts in “promotion and support of arts and culture” cited in our Basic Social Contribution
Policy, we cosponsor museum exhibitions and art events held throughout Japan. In fiscal year ended
December 2017, we cosponsored the exhibitions and events given below.

Exhibition / event

Schedule

Kyoto National Museum 120th
Anniversary Commemorative

April 11 to May 21, 2017

Special Exhibition "Kaiho Yusho"
Chanoyu ­ The Arts of Tea
Ceremony, The Essence ofApril 11 to June 4, 2017Japan
The 5th KYOTOGRAPHIE
International Photography

Venue
Kyoto National Museum , Heisei
Chishinkan Wing

Tokyo National Museum
Heiseikan
TORAYA Kyoto Gallery, Kyoto

April 15 to May 14, 2017

Festival

Municipal Museum of Art
Annex,etc.

Alberto Giacometti

June 14 to September 4, 2017

The National Art Center, Tokyo

July 4 to August 6, 2017

Edo­Tokyo Museum

July 15 to September 3, 2017

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

October 3 to November 26, 2017

"National Treasures:

Kyoto National Museum , Heisei
Chishinkan Wing

Masterpieces of Japan”

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

Organization / host
Kyoto Chamber of Commerce

Position / membership status

Company registered

Permanent member

Nissha Co., Ltd.

Executive director

Nissha Co., Ltd.

Chair

Nissha Co., Ltd.

Kyoto Industrial Association

Director

Nissha Co., Ltd.

Printers Association of Japan

Executive director

Nissha Co., Ltd.

Director

Nissha Co., Ltd.

Joint management council

Nissha Co., Ltd.

and Industry
Kyoto Employers’ Association
Kyoto Association of Corporate
Executives

The Japan Kanji Aptitude Testing
Foundation
Kyoto Institute of Technology

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member
Ritsumeikan University Business
SchoolNissha Foundation for Printing
Culture and Technology
Japanese Society of Printing
Science and Technology

Advisory board member

Nissha Co., Ltd.

Representative director

Nissha Co., Ltd.

Councilor

Nissha Co., Ltd.

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

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

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

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

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Company Outline
Name

Nissha Co., Ltd.

Global Headquarters

3 Mibu Hanai­cho, Nakagyo­ku, Kyoto 604­8551, Japan

Chairman of the Board,
President and CEO

Junya Suzuki

Founded

October 6, 1929

Established

December 28, 1946

Capital¥12,119.79 million

Employees*as of the end of March, 2018

784 (Consolidated number of employees : 5,409)*as of the end of March, 2018
Nissha is mainly developing the 4 business areas of Industrial Materials,
Devices, Medical Technologies and Information and Communication.
At the same time, Nissha is accelerating the creation of Development for

Business outline

advance.

>For more detail of our business, please check this link
http://www.nissha.com/english/products/index.html
Consolidated
Subsidiaries

68

Equity Method Affiliates

3*

Bases (Subsidiaries

Japan: 16

included)Overseas: 45 (Equity method affiliates are not included)

Major Group Companies【Japan】

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

【Overseas】

Nissha USA, Inc.
Eimo Technologies, Inc.
Nissha Si­Cal Technologies, Inc.
Nissha PMX Technologies, S.A. de C.V.
Nissha Medical International, Inc.
Graphic Controls Holdings, Inc.
Graphic Controls Acquisition Corp.
Biomedical Innovations, Inc.
Lead­Lok, Inc.
CEA Medical Manufacturing, Inc.
Sequel Special Products, LLC
Graphic Controls Canada Company
Graphic Controls Ltd.

104

CSR Report 2018

Crown Graphic N.V.
DIA­Nielsen GmbH & Co. K.G.
S.A.Societe Guyot Graphco
Integral Process SAS
Tyrolmed GmbHCEA Global Dominicana, S.R.L.
Nissha Europe GmbH
Nissha Schuster Kunststofftechnik
Nissha Back Stickers
Nissha Back Stickers International
AR Metallizing N.V.
AR Metallizing S.r.l.
AR Metallizing Ltd.
ARM Embalagens Ltda.
Málaga Produtos Metalizados Ltda.
Nissha Korea, Inc.
Nissha Industrial and Trading (Shenzhen) Co., Ltd.
Nissha (Kunshan) Precision IMD Mold Co., Ltd.
Guangzhou Nissha High Precision Plastics Co., Ltd.
Hong Kong Nissha Co., Ltd.
Taiwan Nissha Co., Ltd.
Nissha Industrial and Trading Malaysia Sdn. Bhd.
Nissha Precision Technologies Malaysia Sdn. Bhd.
Nissha Flooring Industries Sdn. Bhd.
Nissha Vietnam Co., Ltd.

【Equity Method Affiliates】
NS Tech Co., Ltd.*

Nissha and Lens Technologies (Changsha) Company Limited*105

CSR Report 2018

What's Nissha?
Nissha's Business Fields

We are a future oriented company that contributes to the realizationof rich lives of people through various products and services.
Nissha’s Touch Sensors lead the way in touch input technology
today, our surface decoration technology can change the looks fromplastic to wood, we manufacture medical devices. Nissha progress
technologies since our founder started business in 1929.
We maximize our capabilities driven by our technology, passion,and leadership to create value for the future.
Global Headquarters (Kyoto, Japan)

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

Sales breakdown by business field*We have changed a method of translating performance of overseas subsidiaries and others from FY2017.3. And, we have changed
the name of Life Innovation to Medical Technologies from January 2018.

The Company change the fiscal year end date from March 31 to December 31 at 2017.The period ofDecember 2017, which is the elapsed period, is the nine­month account settlement period from April 1, 2017
to December 31, 2017.

106

CSR Report 2018

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

Sales breakdown by Overseas vs. Domestic*We have changed a method of translating performance of overseas subsidiaries and others from FY2017.3.

The Company change the fiscal year end date from March 31 to December 31 at 2017.The period ofDecember 2017, which is the elapsed period, is the nine­month account settlement period from April 1, 2017
to December 31, 2017.

Industrial Materials

IMD and IML, the technology to transfer both function and design on surfaces
The major products of our Industrial Materials Business are
IMD and IML, which apply a range of functions and designs
on products as they are formed, by enveloping them in a
special transfer film during plastic injection molding. The
richness of design expression that IMD and IML bring, its
functional strengths such as its ability to withstandscratches or fingerprints, and its simple production process
are why IMD and IML are held in such high regard around

IMD for Automotive Interior

the world, where it is used on a wide range of everyday
plastic products that include automobile interior parts, consumer electronics, and smartphones.
http://www.nissha.com/english/products/industrial_m/imd/index.html
http://www.nissha.com/english/products/industrial_m/imd/index.html

IMD and IML use not just transfer foil printing technology but mold technology, injection molding technology,
and a range of others, making the Industrial Materials Business unique in possessing so many of thesetechnologies. Our products will evolve to meet future market trends and the needs of customers around theworld as we develop new printing techniques. In addition, acquiring a wide range of technologies, not justlimiting to printing ones, will allow us to provide a diverse range of products and services to our customers.
*"IMD" and "IML" are registered trademark or a trademark of Nissha Co., Ltd.

107

CSR Report 2018

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

"Electric Toothbrush (Doltz)" "Shaver (3Blades)"Vacuum Cleaner Cover Panel

Industrial Equipment Smartphone Back CoverElectrolux "Ergothree"

Sharp Corporation "Aquos S2"

Panasonic Corporation Products

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

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

108

CSR Report 2018

Devices

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

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

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

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

109

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

CSR Report 2018

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

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

110

CSR Report 2018

Medical Technologies

Contributing to Healthy and Enriched Life
Medical Technologies aims to contribute to safe, secure,and healthy life through business activities in the fieldsof medical devices business. We manufacture and sellown brand products to medical institutions, while also
providing contract manufacturing services for major
medical device manufacturers globally.

Medical Devices Brand

ーVermedー

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

Medical Devices Contract ManufacturingーBiomedical Innovationsー

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

Information and Communication

Innovating Business Through Communication Design
Nissha Group identifies and clarifies the customers issues in communication strategies and designs
communication policies to solve those issues. Nissha Group has a wide range of products and solution
development expertise, including for Commercial Printing, Publication Printing, Sales Promotions, Web
Solutions, Creative Design and Cultural Asset Art Solutions. We aim to improve value for customers by making
full use of our products and services.
* Nissha Printing Communications, Inc. operates the Information and Communication business of Nissha Co., Ltd.

111

CSR Report 2018

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

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

112

CSR Report 2018

Editorial Policy
The CSR Report is published annually to serve as a communication tool between the Nissha Group and our
stakeholders. CSR Report 2018 covers our initiatives and performance in the fiscal year ended December
2017 (April–December 2017), following the editorial policy given below.

Guidelines Used as Reference

・The core option of the GRI Sustainability Reporting Standards
・・Environmental Reporting Guidelines 2012, issued by the Japanese Ministry of the Environment
Period Covered
The information contained in this report, in principle, covers the period from April 2017 to December 2017.
Some reporting is also done regarding activities carried out after January 2018.

Publication Dates
Current issue: March 2018
Next issue: April 2019 (planned)
Last issue: June 2017

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

Major Affiliated Companies and Businesses
Companies

Major Businesses

Nitec Industries, Inc.

Industrial Materials

Nitec Precision and Technologies, Inc.

DevicesNissha FIS, Inc.

DevicesNissha SiMICS, Inc.

Devicesmui Lab, Inc.

DevicesNissha Printing Communications, Inc.

Information and Communication

Nitec Printing Co., Ltd.

Information and Communication

Nissha F8, Inc.

Information and Communication

M crossing Co., Ltd.

OthersNissha Business Service, Inc.

Others113

CSR Report 2018

Nissha USA, Inc.

Industrial Materials, Devices

Eimo Technologies, Inc.

Industrial Materials

Nissha Si­Cal Technologies, Inc.

Industrial Materials

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

Industrial Materials

Graphic Controls Acquisition Corp.

Medical Technologies

Graphic Controls Ltd.

Medical Technologies

Nissha Europe GmbH

Industrial Materials, Devices

Nissha Schuster Kunststofftechnik

Industrial Materials

Nissha Back Stickers

Industrial Materials

AR Metallizing N.V.

Industrial Materials

AR Metallizing S.r.l.

Industrial Materials

AR Metallizing Ltd.

Industrial Materials

Nissha ARM Embalagens Trading Do Brasil Ltda.

Industrial Materials

Málaga Produtos Metalizados Ltda.

Industrial Materials

Nissha Korea, Inc.

Industrial Materials, Devices

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

Industrial Materials

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

Industrial Materials, Devices

Guangzhou Nissha High Precision Plastics Co., Ltd.

Industrial Materials

Hong Kong Nissha Co., Ltd.

Industrial Materials

Nissha Industrial and Trading Malaysia Sdn. Bhd.

Industrial Materials

Nissha Precision Technologies Malaysia Sdn. Bhd.

Industrial Materials

Nissha Vietnam Co., Ltd.

Devices

Variations in Scope of Reporting

Date

July 2017

October 2017

Contents

Impact on scope of reporting

Nissha Group company Nitec Precision

CSR Report 2018 contains information

and Technologies, Inc. commenced

on the Tsu Factory ranging from July tooperations of its Tsu Factory.

December 2017.

Nissha Printing Co., Ltd. was renamed
Nissha Co., Ltd. as of October 6, 2017.

CSR Report 2018 uses the name Nissha
Co., Ltd. in text, and Nissha Printing Co.,
Ltd. for topics on and before October 5.

Nissha Co., Ltd. wholly owned subsidiary
Nissha USA, Inc. concluded a business
transfer agreement and acquired theOctober 2017

printed electronics business of
subsidiaries Si­Cal Technologies, Inc.

The event has no impact on the contentsof CSR Report 2018.

and GSI Technologies, LLC on October
10, 2017.

114

CSR Report 2018

Date

Contents

Impact on scope of reporting

Nissha Co., Ltd. consolidated subsidiary
Graphic Controls Group (headquarteredin USA) concluded a share transfer
October 2017agreement, completed share acquisition,
and acquired as a subsidiary French

The event has no impact on the contentsof CSR Report 2018.

medical device manufacturer Integral
Process SAS on October 31, 2017.
Nissha Co., Ltd. established mui Lab,
Inc., engaging primarily in development
October 2017

and sales of “mui,” a new interface
product for the IoT market, on October

The event has no impact on the contentsof CSR Report 2018.

27, 2017.
Nissha Co., Ltd. Devices businessconcluded a basic agreement on
production of touch sensors with major
Chinese glass cover manufacturer Lens
November 2017

Technology Co., Ltd., its subsidiary Lens

The event has no impact on the contents

International (HK) Limited, and a jointof CSR Report 2018.

venture formed by the three companies,
Nissha and Lens Technologies(Changsha) Company Limited, on
November 6, 2017.

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

115

CSR Report 2018

GRI Content Index
Nissha CSR Report 2018 published in "CSR" of our website conforms to the core option of GRI Sustainability
Reporting Standards. A content index is scheduled to be posted on this page in early July 2018.

GRI Content Index

Disclosure

Pages onLocation in CSR Report

PDF

General Disclosures
1. Organizational profile：

GRI 102 General
Disclosures 2016

102­1

Name of theorganizationa. Name of the organization.

Company Outline

104­105

What's Nissha?

106­112Company Outline

104­105

Nissha Group

104­105

Company Outline

104­105

What's Nissha?

106­112Company Outline

104­105

What's Nissha?

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

Activities, brands,

b. Primary brands, products, and services,

products, and services

including an explanation of any products orservices that are banned in certain markets.

102­3

Location of
headquarters

a. Location of the organization’s headquarters.
a. Number of countries where the organization

102­4

Location of operations

operates, and the names of countries where it has
significant operations and/or that are relevant to
the topics covered in the report.

102­5

Ownership and legal
form

a. Nature of ownership and legal form.
a. Markets served, including:i. geographic locations where products and102­6Markets served

services are offered;
ii. sectors served;
iii. types of customers and beneficiaries.
a. Scale of the organization, including:i. total number of employees;
ii. total number of operations;

102­7

Scale of theorganizationiii. net sales (for private sector organizations) or
net revenues (for public sector organizations);
iv. total capitalization (for private sector
organizations) broken down in terms of debt andequity;v. quantity of products or services provided.

102­8

＞

Information ona. Total number of employees by employment

Respect for Diversity

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

Composition of "Nissha People"

workersb. Total number of employees by employment

40­42

contract (permanent and temporary), by region.
c. Total number of employees by employment type(full­time and part­time), by gender.
d. Whether a significant portion of theorganization’s activities are performed by workers
who are not employees. If applicable, adescription of the nature and scale of work

116

CSR Report 2018

performed by workers who are not employees.
e. Any significant variations in the numbers
reported in Disclosures 102­8­a, 102­8­b, and102­8­c(such as seasonal variations in the tourism oragricultural industries).
f. An explanation of how the data have been
compiled, including any assumptions made.
a. A description of the organization’s supply chain,
102­9Supply chain

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

Partnership with Our Suppliers＞Expansion of Our Supply

87

Chain

* We are considering disclosure of our
supply chain for Life Innovation
business.

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

Environmental Impact as athe organization and its

ii. Changes in the share capital structure and other

Result of Business Operations

supply chain

capital formation, maintenance, and alteration

Editorial Policy

63­64
113­115

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

＞

Corporate Governance Risk
Management102­11

Precautionary Principle

a. Whether and how the organization applies theEnvironmental Policy andor approach

Precautionary Principle or approach.

Management Structures＞

Continuous Improvements in

25­26

59

the Environmental Management
System (EMS)a. A list of externally­developed economic,
102­12102­13External initiatives

Membership ofassociations

CEO Message

2

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

Nissha Group’s CSR

subscribes, or which it endorses.

Nations Global Compact

a. A list of the main memberships of industry or

Along with Local Communities

other associations, and national or international
advocacy organizations.

10­11＞Membership in Community

101­102

CEO Message

2

CEO Message

2

Organizations

2. Strategy
a. A statement from the most senior decision­
102­14

Statement from seniordecision­maker

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

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

opportunities.

＞

4­6

Nissha Group’s CSR
Materiality

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

102­17a. A description of the organization’s values,

Nissha Group’s CSR

principles, standards, and norms of behavior.

Approach to CSR＞

3

Human Rights Hotline

33

Mechanisms for advice

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

behavior, and organizational integrity;
ii. reporting concerns about unethical or unlawful
behavior, and organizational integrity.

117

CSR Report 2018

4. Governance102­18Governance structure

Corporate Governanceincluding committees of the highest governance

Overview of Corporate

body.

Governanceb. Committees responsible for decision­making on

Nissha Group’s CSR

economic, environmental, and social topics.

Management

Delegating authority

17­22

＞CSR

3­4

＞CSR

3­4

＞CSR

3­4

a. Process for delegating authority for economic,
102­19＞a. Governance structure of the organization,

environmental, and social topics from the highest

Nissha Group’s CSR

governance body to senior executives and other

Management

employees.
Executive­level
responsibility for102­20economic,
environmental, andsocial topics

a. Whether the organization has appointed an
executive­level position or positions withresponsibility for economic, environmental, andNissha Group’s CSR

social topics.

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

＞

Corporate Governance
Overview of Corporatea. Processes for consultation between

102­21

17­22

Governance＞CSR

Consulting stakeholders

stakeholders and the highest governance body on

on economic,

economic, environmental, and social topics.

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

is delegated and how the resulting feedback is

Human Rights Freedom ofprovided to the highest governance body.

Association and Collective

Nissha Group’s CSRManagement

3­4＞Bargaining, Relationship with

34­35

Labor Union

a. Composition of the highest governance bodyand its committees by:i. executive or non­executive;
ii. independence;

Composition of the102­22highest governancebody and its committees＞iii. tenure on the governance body;Corporate Governanceiv. number of each individual’s other significant

Overview of Corporate

positions and commitments, and the nature of theGovernancecommitments;

17­22

＞

v. gender;

Respect for Diversity

vi. membership of under­represented social

Composition of "Nissha People"

40­42

groups;
vii. competencies relating to economic,
environmental, and social topics;
viii. stakeholder representation.
a. Whether the chair of the highest governancebody is also an executive officer in the102­23Chair of the highest
governance bodyorganization.
b. If the chair is also an executive officer, describe
his or her function within the organization’s
management and the reasons for this＞Corporate Governance
Overview of Corporate
Governanceof Directors＞Role of the Board

19

arrangement.
a. Nomination and selection processes for thehighest governance body and its committees.
b. Criteria used for nominating and selecting
highest governance body members, including102­24＞

Nominating andwhether and how:

Corporate Governanceselecting the highest

i. stakeholders (including shareholders) are

Overview of Corporate

governance body

involved;

Governance17­22

ii. diversity is considered;
iii. independence is considered;
iv. expertise and experience relating to economic,
environmental, and social topics are considered.
102­25

Conflicts of interest

a. Processes for the highest governance body to118＞

Corporate Governance

CSR Report 2018ensure conflicts of interest are avoided andOverview of Corporate

managed.

Governanceb. Whether conflicts of interest are disclosed toof Directors＞Role of the Board

19

stakeholders, including, as a minimum:
i. Cross­board membership;
ii. Cross­shareholding with suppliers and otherstakeholders;
iii. Existence of controlling shareholder;
iv. Related party disclosures.

a. Highest governance body’s and senior

102­26

3

＞CSR

3­4

＞

23­25

Approach to CSR

Role of highest

executives’ roles in the development, approval,

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

Nissha Group’s CSR

setting purpose, values,

or mission statements, strategies, policies, andManagement

and strategy

goals related to economic, environmental, andsocial topics.

102­27＞

Nissha Group’s CSR

Corporate GovernanceInternal Control System

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

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

Evaluating the highest

and its frequency.

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

performanced. Actions taken in response to evaluation of thehighest governance body’s performance withrespect to governance of economic,
environmental, and social topics, including, as aminimum, changes in membership andorganizational practice.
a. Highest governance body’s role in identifying
and managing economic, environmental, andsocial topics and their impacts, risks, and102­29

＞

3

＞CSR

3­4

＞

23­25

Nissha Group’s CSR
Approach to CSR

Identifying andopportunities – including its role in the

managing economic,

implementation of due diligence processes.

Nissha Group’s CSR

environmental, andb. Whether stakeholder consultation is used toManagementsocial impacts

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

Corporate GovernanceInternal Control System

impacts, risks, and opportunities.

＞

3

＞CSR

3­4

＞

23­25

Nissha Group’s CSR

a. Highest governance body’s role in reviewing the102­30Approach to CSR

Effectiveness of risk

effectiveness of the organization’s risk

Nissha Group’s CSR

management processes

management processes for economic,

Management

environmental, and social topics.

Corporate GovernanceInternal Control System

＞

3

＞CSR

3­4

＞

23­25

Nissha Group’s CSR
Approach to CSR

102­31

Review of economic,

a. Frequency of the highest governance body’s

environmental, andreview of economic, environmental, and socialsocial topics

topics and their impacts, risks, and opportunities.

Nissha Group’s CSRManagement

Corporate GovernanceInternal Control System

Highest governance102­32

body’s role insustainability reportinga. The highest committee or position that formally
Nissha Group’s CSR

sustainability report and ensures that all material

Materiality＞

reviews and approves the organization’s

4­6

topics are covered.

119

CSR Report 2018

102­33

3­4

＞

23­25

＞CSR

3­4

Approach to CSR＞CSR

Nissha Group’s CSR

the highest governance body.

3

a. Process for communicating critical concerns to＞

Communicating criticalconcerns

Nissha Group’s CSRManagement

Corporate GovernanceInternal Control System

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

Nissha Group’s CSRManagement

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

Remuneration policies

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

＞

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

20­22

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

＞

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

Process for determining

in determining remuneration and whether they are

remuneration

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

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

20­22

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

Stakeholders’102­37

involvement inremunerationa. How stakeholders’ views are sought and taken
into account regarding remuneration.
b. If applicable, the results of votes on
remuneration policies and proposals.
a. Ratio of the annual total compensation for theorganization’s highest­paid individual in each102­38Annual total

country of significant operations to the mediancompensation ratio

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

Percentage increase in102­39annual totalcompensation ratio

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

5. Stakeholder engagement
102­40102­41＞NisshaList of stakeholder

a. A list of stakeholder groups engaged by the

Nissha Group’s CSR

groupsorganization.

Group’s Stakeholders

Collective bargaining

a. Percentage of total employees covered by

Human Rights Relationship

120

＞

7­10

34­35

CSR Report 2018

102­42agreements

collective bargaining agreements.

with Labor Union

Identifying and selectinga. The basis for identifying and selecting

Nissha Group’s CSR

stakeholders

stakeholders with whom to engage.

Group’s Stakeholders＞Nissha7­10＞Nissha7­10＞Nissha7­10

a. The organization’s approach to stakeholder
engagement, including frequency of engagement
102­43

Approach to stakeholder

by type and by stakeholder group, and an

Nissha Group’s CSR

engagement

indication of whether any of the engagement wasGroup’s Stakeholders

undertaken specifically as part of the report
preparation process.
Nissha Group’s CSR

a. Key topics and concerns that have been raised
through stakeholder engagement, including:102­44

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

Group’s Stakeholders

Partnership with Our Suppliers＞CSR Supplier Audits
Human Rights＞Building and

87­89

System, Freedom of

32­34

Operation of a Management
Association and Collective
Bargaining

6. Reporting practicea. A list of all entities included in the organization’s
consolidated financial statements or equivalent102­45＞documents.

Editorial Policy Scope of

consolidated financial

b. Whether any entity included in theReportingstatements

organization’s consolidated financial statements or

Nissha Group

Entities included in the

113
104­105equivalent documents is not covered by thereport.
a. An explanation of the process for defining the102­46

Defining report content
and topic Boundaries

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

＞

4­6

＞

4­6

Nissha Group’s CSR
Materiality

report content.
102­47

List of material topics

a. A list of the material topics identified in the

Nissha Group’s CSR

process for defining report content.

Materiality＞Occurrence

Safety and Health102­48

Restatements of
informationa. The effect of any restatements of informationof Work­related Accidents

given in previous reports, and the reasons forPrevention of Further Global

such restatements.

Warming＞Status of CO2

53­54

65­66

Emissions at Nissha Groupa. Significant changes from previous reporting
102­49Changes in reporting

periods in the list of material topics and topic
Boundaries.

102­50102­51

102­52

＞

113

＞

113

＞

113

Editorial Policy Period

a. Reporting period for the information provided.

Date of most recent

a. If applicable, the date of the most recent

Editorial Policy Period

reportprevious report.

CoveredReporting cycle

a. Reporting cycle.

questions regarding thereport102­54113

Scope of Reporting

Reporting periodContact point for
102­53＞

Editorial Policy Variations ina. The contact point for questions regarding thereport or its contents.

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

accordance with the

prepared a report in accordance with the GRIGRI Standards

Standards, either:

Covered

Editorial Policy Period
Covered＞

Editorial Policy Publishing
Division and Contact for

115

Inquiries
GRI Content Index

116-157

Editorial Policy

113­115

i. ‘This report has been prepared in accordance

121

CSR Report 2018

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

GRI content index

covered by the GRI Standards);

GRI Content Index

116-157

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

been assured and on what basis, including theAssurance has not been sought for theassurance standards used, the level of assurance

sustainability report.

obtained, and any limitations of the assurance
process;
ii. The relationship between the organization andthe assurance provider;
iii. Whether and how the highest governance bodyor senior executives are involved in seeking
external assurance for the organization’ssustainability report.
Material topics
Economic
Economic Performance：

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

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

material topic and its

For example, whether the organization has

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

103­2

The managementa. An explanation of how the organization

approach and its

manages the topic.

components

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

122

CSR Report 2018

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

Evaluation of theof the management approach;

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

GRI 201：

a. Direct economic value generated andEconomic

distributed (EVG&D) on an accruals basis,

Performance 2016

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

Direct economic value

i. Direct economic value generated: revenues;

generated andii. Economic value distributed: operating costs,

distributed

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

30

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

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

201­3

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

obligations and otherorganization’s general resources, the estimatedretirement plansvalue of those liabilities.
b. If a separate fund exists to pay the plan’spension liabilities:
i. the extent to which the scheme’s liabilities are
estimated to be covered by the assets that havebeen set aside to meet them;
ii. the basis on which that estimate has been
arrived at;iii. when that estimate was made.
c. If a fund set up to pay the plan’s pension
liabilities is not fully covered, explain the strategy,
if any, adopted by the employer to work towards
full coverage, and the timescale, if any,
by which the employer hopes to achieve fullcoverage.
d. Percentage of salary contributed by employee
or employer.
e. Level of participation in retirement plans, suchas participation in mandatory or voluntary123

CSR Report 2018

schemes, regional, or country­based schemes, or
those with financial impact.
a. Total monetary value of financial assistancereceived by the organization from any government
during the reporting period, including:i. tax relief and tax credits;
ii. subsidies;
iii. investment grants, research and development
grants, and other relevant types of grant;
Financial assistance201­4

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

Market Presence：

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

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

material topic and its

For example, whether the organization has

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

The management103­2approach and its
components

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

103­3

Evaluation of theof the management approach;

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

：MarketGRI 202

Presence 2016202­1

Ratios of standard entry

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

minimum wage rules, report the relevant ratio of

minimum wage

the entry level wage by gender at significant
locations of operation to the minimum wage.
b. When a significant proportion of other workers(excluding employees) performing the124

CSR Report 2018

organization’s activities are compensated basedon wages subject to minimum wage rules,
describe the actions taken to determine whether
these workers are paid above the minimum wage.
c. Whether a local minimum wage is absent orvariable at significant locations of operation, bygender. In circumstances in which different
minimums can be used as a reference, reportwhich minimum wage is being used.
d. The definition used for ‘significant locations ofoperation’.
a. Percentage of senior management at significant
locations of operation that are hired from the local
Proportion of senior202­2

management hired fromthe local community

community.

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

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

40­42‘local’.
d. The definition used for ‘significant locations ofoperation’.

Indirect Economic Impacts：

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

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

material topic and its

For example, whether the organization has

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

The management103­2approach and its
components

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

103­3

Evaluation of theof the management approach;

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

：Indirect

GRI 203a. Extent of development of significant

Economic Impacts

infrastructure investments and services supported.

2016
203­1

Infrastructureb. Current or expected impacts on communities

investments andand local economies, including positive andservices supported

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

203­2

Significant indirect

a. Examples of significant identified indirect

125

CSR Report 2018

economic impacts

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

Procurement Practices：

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

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

material topic and its

For example, whether the organization has

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

The management103­2approach and its
components

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

103­3

Evaluation of theof the management approach;

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

：

GRI 204

a. Percentage of the procurement budget used for

Procurement

significant locations of operation that is spent on

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

Proportion of spendingon local suppliers

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

Anti­corruption *：GRI 103

103­1

a. An explanation of why the topic is material.

Nissha Group’s CSR

material topic and its

b. The Boundary for the material topic, which

Materiality

Approach 2016

Boundary

includes a description of:＞

Explanation of theManagement

i. where the impacts occur;

Editorial Policy

4­6
113­115

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

126

CSR Report 2018

c. Any specific limitation regarding the topic
Boundary.

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

4­6

Human Rights Hotline

33

manages the topic.

Management

approach.

103­2

3­4

Nissha Group’s CSR

b. A statement of the purpose of the management

The management＞CSR

a. An explanation of how the organization

management approach includes that component:i. Policies

Nissha Group’s CSR
Materiality＞

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

Compliance Guideline of the
Corporate Ethics and28­29

Compliance, Promotion
Structure and Initiatives

vii. Specific actions, such as processes, projects,

Initiatives Related to Anti­programs and initiatives

corruption

91

a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness103­3of the management approach;

Nissha Group’s CSR

management approachii. the results of the evaluation of the management

Management＞CSR

Evaluation of the3­4

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

：Anti­GRI 205

corruption 2016

Operations assessed for
205­1

risks related tocorruption

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

205­2c. Total number and percentage of businessInitiatives Related to Anti­

Communication andpartners that the organization’s anti­corruption

corruption

training about anti­

policies and procedures have been communicatedcorruption policies andto, broken down by type of business partner andCorporate Ethics andprocedures

region. Describe if the organization’s anti­

Compliance Promotion

corruption policies and procedures have been

Structure and Initiatives

＞

91

28­29

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

Confirmed incidents ofa. Total number and nature of confirmed incidents

corruption and actionsof corruption.

taken

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

127

CSR Report 2018

the reporting period and the outcomes of suchcases.
Anti­competitive Behavior：

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

＞

ii. the organization’s involvement with the impacts.

Nissha Group’s CSR

material topic and its

For example, whether the organization has

Materiality

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

Explanation of the

4­6
113­115

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

3­4

Nissha Group’s CSR

b. A statement of the purpose of the management＞CSR

manages the topic.
approach.

The management103­2approach and its
components

c. A description of the following, if the

Nissha Group’s CSR
Materiality＞

4­6

management approach includes that component:i. Policies

Human Rights Hotline

33＞

ii. Commitments
iii. Goals and targets

Corporate Ethics andiv. Responsibilities

Compliance Guideline of thev. Resources

Corporate Ethics andvi. Grievance mechanisms

Compliance, Promotion

vii. Specific actions, such as processes, projects,

Structure and Initiatives

＞

28­29

programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness103­3of the management approach;

Nissha Group’s CSR

management approachii. the results of the evaluation of the management

Management＞CSR

Evaluation of the3­4

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

：Anti­GRI 206

a. Number of legal actions pending or completedcompetitive

Legal actions for anti­

Behavior 2016
206­1

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

Environmental
Materials：

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

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

material topic and its

For example, whether the organization has

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

103­2

The managementa. An explanation of how the organization

approach and its

manages the topic.

components

b. A statement of the purpose of the management128

CSR Report 2018

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

Evaluation of theof the management approach;

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

：Materials

GRI 3012016

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

Materials used byprimary products and services during the reporting

Environmental Impact as aweight or volume

period, by:Result of Business Operations

63­64

i. non­renewable materials used;
ii. renewable materials used.

301­2

Recycled input materials
used

Reclaimed products and301­3

their packaging
materials

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

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

＞

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

Nissha Group’s CSR

material topic and its

For example, whether the organization has

Materiality

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

4­6
113­115

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

The management103­2approach and its
components

＞CSR

3­4

＞

4­6

Human Rights Hotline

33

Nissha Group’s CSRManagementc. A description of the following, if the

Nissha Group’s CSR

management approach includes that component:

Materiality＞

i. Policies
ii. Commitments
iii. Goals and targets

Environmental Policy andiv. Responsibilities

Management Structures

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

58­59

Environmental Objectives andStatus of Achievement

60­62

programs and initiatives
103­3

a. An explanation of how the organization

Nissha Group’s CSR

evaluates the management approach, including:Management＞CSR

Evaluation of the
management approach

129

3­4

CSR Report 2018

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

：Energy

GRI 302a. Total fuel consumption within the organization

2016

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

302­1

Energy consumption
within the organizationii. heating consumption

Environmental Impact as aiii. cooling consumption

Result of Business Operations

63­64

iv. steam consumption
d. In joules, watt­hours or multiples, the total:

Prevention of Further Global

i. electricity sold

Warming

65­69

ii. heating soldiii. cooling soldiv. steam solde. Total energy consumption within theorganization, in joules or multiples.
f. Standards, methodologies, assumptions, and/or
calculation tools used.
g. Source of the conversion factors used.
a. Energy consumption outside of the302­2

Energy consumption

organization, in joules or multiples.

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

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

302­3

Energy intensity

c. Types of energy included in the intensity ratio;

Prevention of Further Global

whether fuel, electricity, heating, cooling, steam,Warming65­69

or all.
d. Whether the ratio uses energy consumption
within the organization, outside of it, or both.
a. Amount of reductions in energy consumption
achieved as a direct result of conservation andefficiency initiatives, in joules or multiples.
b. Types of energy included in the reductions;
302­4

Reduction of energy
consumption

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

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

Water

：

GRI 103

103­1

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

130＞

Nissha Group’s CSR

CSR Report 2018

Management

material topic and its

b. The Boundary for the material topic, which

Approach 2016

Boundary

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

Materiality

4­6

Editorial Policy

113­115

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

＞CSR

3­4

＞

4­6

iii. Goals and targets

Human Rights Hotline

33

iv. Responsibilities

Environmental Policy andapproach.
c. A description of the following, if the
The management103­2approach and its
components

Nissha Group’s CSRManagement

management approach includes that component:

Nissha Group’s CSR

i. Policies

Materiality

ii. Commitments

v. Resources
vi. Grievance mechanisms

＞

58­59

Management Structuresvii. Specific actions, such as processes, projects,
programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness103­3of the management approach;

Nissha Group’s CSR

management approachii. the results of the evaluation of the management

Management＞CSR

Evaluation of the3­4

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

：

GRI 303 Watera. Total volume of water withdrawn, with a2016

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

Water withdrawal byiii. Rainwater collected directly and stored by theEnvironmental Impact as asourceorganization;

Result of Business Operations

63­64

iv. Waste water from another organization;
v. Municipal water supplies or other public or
private water utilities.
b. Standards, methodologies, and assumptions
used.
a. Total number of water sources significantly
affected by withdrawal by type:i. Size of the water source;
ii. Whether the source is designated as a
Water sources303­2

significantly affected bywithdrawal of water

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

303­3

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

131

CSR Report 2018

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

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

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

material topic and its

For example, whether the organization has

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

The management103­2approach and its
components

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

103­3

Evaluation of theof the management approach;

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

：

GRI 304

a. For each operational site owned, leased,

Biodiversity 2016

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

304­1

Operational sites

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

protected area) or the high biodiversity value area

managed in, or adjacentoutside protected areas;

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

areas of highproduction, or extractive);

biodiversity value

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

outside protected areas

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

304­2

Significant impacts ofa. Nature of significant direct and indirect impacts

activities, products, andon biodiversity with reference to one or more of132

CSR Report 2018

services on biodiversity

the following:i. Construction or use of manufacturing plants,
mines, and transport infrastructure;
ii. Pollution (introduction of substances that do notnaturally occur in the habitat from point and non­point sources);
iii. Introduction of invasive species, pests, andpathogens;
iv. Reduction of species;
v. Habitat conversion;
vi. Changes in ecological processes outside thenatural range of variation (such as salinity orchanges in groundwater level).
b. Significant direct and indirect positive andnegative impacts with reference to the following:i. Species affected;
ii. Extent of areas impacted;
iii. Duration of impacts;
iv. Reversibility or irreversibility of the impacts.
a. Size and location of all habitat areas protectedor restored, and whether the success of therestoration measure was or is approved byindependent external professionals.
b. Whether partnerships exist with third parties to304­3

Habitats protected orprotect or restore habitat areas distinct from where

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

304­4

IUCN Red List species

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

conservation list species

i. Critically endangeredwith habitats in areas

ii. Endangered

affected by operations

iii. Vulnerable
iv. Near threatenedv. Least concern

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

＞

ii. the organization’s involvement with the impacts.

Nissha Group’s CSR

material topic and its

For example, whether the organization has

Materiality

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

Explanation of the

4­6
113­115

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

9­10

b. A statement of the purpose of the management＞Nissha＞components

4­6Management＞

Nissha Group’s CSR

manages the topic.

3­4

a. An explanation of how the organization＞CSR

The management
approach and its

approach.
c. A description of the following, if the

Nissha Group’s CSR
Materiality

management approach includes that component:

Nissha Group’s CSR

i. Policies

Group’s Stakeholders Externalii. Commitments

Assessmentiii. Goals and targets
iv. Responsibilities

133＞

Human Rights Hotline

33

CSR Report 2018

v. Resources

Environmental Policy andvi. Grievance mechanisms

Management Structuresvii. Specific actions, such as processes, projects,
programs and initiatives

58­59

Environmental Objectives andStatus of Achievement

60­62

a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness103­3of the management approach;

Nissha Group’s CSR

management approachii. the results of the evaluation of the management

Management＞CSR

Evaluation of the3­4

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

：

GRI 305

a. Gross direct (Scope 1) GHG emissions in

Emissions 2016

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

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

Environmental Impact as a
Result of Business Operations

GHG emissions in metric tons of CO2 equivalent.

Prevention of Further Global

b. If applicable, gross market­based energy

Warming

63­64

65­69

indirect (Scope 2) GHG emissions in metric tonsof CO2 equivalent.
c. If available, the gases included in thecalculation; whether CO2, CH4, N2O, HFCs,
PFCs, SF6, NF3, or all.
d. Base year for the calculation, if applicable,
including:305­2Energy indirect (Scope2) GHG emissions

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

305­3

Other indirect (Scope 3)

The reporting organization shall report thePrevention of Further Global

GHG emissions

following information:

Warminga. Gross other indirect (Scope 3) GHG emissions

Management＞Initiative in Scope 3

69

in metric tons of CO2 equivalent.
b. If available, the gases included in thecalculation; whether CO2, CH4, N2O, HFCs,

134

CSR Report 2018

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

GHG emissions
intensity

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

Prevention of Further Global
Warming

65­69

indirect (Scope 2), and/or other indirect (Scope 3).
d. Gases included in the calculation; whether
CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all.
a. GHG emissions reduced as a direct result of
reduction initiatives, in metric tons of CO2
equivalent.
b. Gases included in the calculation; whether
CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all.
305­5Reduction of GHG

c. Base year or baseline, including the rationale

emissionsfor choosing it.
d. Scopes in which reductions took place; whether

Prevention of Further Global＞Status of CO2

Warming

65­66

Emissions at Nissha Group

direct (Scope 1), energy indirect (Scope 2), and/or
other indirect (Scope 3).
e. Standards, methodologies, assumptions, and/or
calculation tools used.
a. Production, imports, and exports of ODS in
metric tons of CFC­11 (trichlorofluoromethane)
305­6

Emissions of ozone­

equivalent.

depleting substancesb. Substances included in the calculation.

(ODS)

c. Source of the emission factors used.
d. Standards, methodologies, assumptions, and/or
calculation tools used.
a. Significant air emissions, in kilograms or
multiples, for each of the following:i. NOX
ii. SOX

Nitrogen oxides (NOX),
305­7sulfur oxides (SOX), andother significant air
emissionsiii. Persistent organic pollutants (POP)iv. Volatile organic compounds (VOC)v. Hazardous air pollutants (HAP)vi. Particulate matter (PM)vii. Other standard categories of air emissions
identified in relevant regulations
b. Source of the emission factors used.
c. Standards, methodologies, assumptions, and/or
calculation tools used.

Effluents and Waste *：GRI 103

103­1

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

135＞

Nissha Group’s CSR

4­6

CSR Report 201846

Management

material topic and its

b. The Boundary for the material topic, which

Approach 2016

Boundary

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

Materiality
Editorial Policy

113­115

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

＞CSR

3­4

＞

4­6

＞Nissha＞9­10Nissha Group’s CSRManagement

b. A statement of the purpose of the management

Nissha Group’s CSR

approach.

Materialityc. A description of the following, if the
The management103­2approach and its
components

management approach includes that component:

Nissha Group’s CSR

i. Policies

Group’s Stakeholders Externalii. Commitments

Assessmentiii. Goals and targets

Human Rights Hotline＞

iv. Responsibilities
v. Resources

Environmental Policy andvi. Grievance mechanisms

Management Structuresvii. Specific actions, such as processes, projects,
programs and initiatives

33
58­59

Environmental Objectives andStatus of Achievement

60­62

a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness103­3of the management approach;

Nissha Group’s CSR

management approachii. the results of the evaluation of the management

Management＞CSR

Evaluation of the3­4

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

：EffluentsGRI 306

a. Total volume of planned and unplanned waterand Waste 2016

discharges by:i. destination;
306­1

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

Environmental Impact as aquality and destinationiii. whether the water was reused by another

Result of Business Operations

63­64

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

Waste by type anda. Total weight of hazardous waste, with aEnvironmental Impact as adisposal method

breakdown by the following disposal methods

Result of Business Operations

where applicable:
i. Reuse

Status of Waste Generation at
Bases

ii. Recycling

63­64

76­78

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

136

CSR Report 2018

viii. On­site storageix. Other (to be specified by the organization)c. How the waste disposal method has been
determined:
i. Disposed of directly by the organization, orotherwise directly confirmed
ii. Information provided by the waste disposal
contractor
iii. Organizational defaults of the waste disposal
contractor
a. Total number and total volume of recorded
significant spills.
b. The following additional information for eachspill that was reported in the organization’s
financial statements:
i. Location of spill;
306­3

Significant spills

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

306­4Transport of hazardous
wasteiii. Hazardous waste exported
iv. Hazardous waste treatedb. Percentage of hazardous waste shippedinternationally.
c. Standards, methodologies, and assumptions
used.
a. Water bodies and related habitats that are
significantly affected by water discharges and/or
runoff, including information on:

306­5

Water bodies affected

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

by water discharges

ii. whether the water body and related habitat is

and/or runoff

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

Environmental Compliance：

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

＞

ii. the organization’s involvement with the impacts.

Nissha Group’s CSR

material topic and its

For example, whether the organization has

Materiality

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

Explanation of the

4­6
113­115

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

b. A statement of the purpose of the management

4­6

Management＞

Nissha Group’s CSR

manages the topic.

3­4

a. An explanation of how the organization＞CSR

The management
approach and its

approach.
c. A description of the following, if the

Nissha Group’s CSR
Materiality

management approach includes that component:

Corporate Ethics andi. Policies

Compliance Guideline of theii. Commitments

Corporate Ethics and

137

＞

28­29

CSR Report 2018

iii. Goals and targets

Compliance, Promotion

iv. Responsibilities

Structure and Initiatives

v. Resources
vi. Grievance mechanisms＞

Human Rights Hotline

vii. Specific actions, such as processes, projects,

Environmental Policy andprograms and initiatives

Management Structures

33
58­59

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

＞CSR

Evaluation of theof the management approach;

Nissha Group’s CSR

management approachii. the results of the evaluation of the management

Management

3­4

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

：

GRI 307

a. Significant fines and non­monetary sanctions

Environmental

for non­compliance with environmental laws

Compliance 2016

and/or regulations in terms of:i. total monetary value of significant fines;
307­1

Non­compliance with

ii. total number of non­monetary sanctions;

environmental laws andiii. cases brought through dispute resolution

regulations

mechanisms.

Environmental Objectives andStatus of Achievement

60­62

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

＞

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

Nissha Group’s CSR

material topic and its

For example, whether the organization has

Materiality

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

4­6
113­115

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

approach and its
components＞

4­6

Human Rights Hotline

33

Managementc. A description of the following, if the
The management

3­4

Nissha Group’s CSR

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

103­2

＞CSR

manages the topic.

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

Nissha Group’s CSR
Materiality＞

Environmental Policy and

58­59

Management Structures
Partnership with Our Suppliers

vi. Grievance mechanismsvii. Specific actions, such as processes, projects,＞Basic Purchasing Policy, CSR

87­89

Supplier Audits

programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness103­3of the management approach;

Nissha Group’s CSR

management approachii. the results of the evaluation of the management

Management＞CSR

Evaluation of the3­4

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

：

GRI 308 Supplier
Environmental308­1

New suppliers that werea. Percentage of new suppliers that werescreened using

screened using environmental criteria.

138

Partnership with Our Suppliers＞Basic Purchasing Policy, CSR

87­89

CSR Report 2018

Assessment 2016environmental criteria

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

Negative environmental

chain.

impacts in the supply

d. Percentage of suppliers identified as having

chain and actions taken

significant actual and potential negative

Partnership with Our Suppliers＞Basic Purchasing Policy, CSR

87­89

Supplier Audits

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

＞

ii. the organization’s involvement with the impacts.

Nissha Group’s CSR

material topic and its

For example, whether the organization has

Materiality

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

Explanation of the

4­6
113­115

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

4­6

Management

3­4

Nissha Group’s CSR

b. A statement of the purpose of the management＞CSR

manages the topic.
approach.

The management103­2approach and its
components

c. A description of the following, if the

Nissha Group’s CSR

management approach includes that component:

Materiality

i. Policies

Human Rights Hotline,

ii. Commitments

Building and Operation of aiii. Goals and targets

Management System＞

iv. Responsibilities

＞

32­33

v. Resources

Respect for Diversity

vi. Grievance mechanisms

Enhancement of Systems andvii. Specific actions, such as processes, projects,

Communication Tools

44

programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness103­3of the management approach;

Nissha Group’s CSR

management approachii. the results of the evaluation of the management

Management＞CSR

Evaluation of the3­4

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

：

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

Employment 2016

during the reporting period, by age group, gender401­1

New employee hires

and region.

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

401­2

Benefits provided to full­a. Benefits which are standard for full­time139

CSR Report 2018

time employees that are

employees of the organization but are not

not provided toprovided to temporary or part­time employees, bytemporary or part­time

significant locations of operation. These include,

employees

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

401­3

Parental leave

Support for Diverse Work Styles＞Status of Major Long­term

ended, by gender.

Leave and Time Taken Off fromd. Total number of employees that returned toWorkwork after parental leave ended that were still48­50*We are considering future disclosure ofoverseas situation and efforts.

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

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

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

material topic and its

For example, whether the organization has

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

The management103­2approach and its
components

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

103­3

Evaluation of theof the management approach;

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

：

GRI 402402­1

Minimum notice periods

a. Minimum number of weeks’ notice typically140＞

Human Rights Relationship34­35

CSR Report 2018

Labor/Management

regarding operational

provided to employees and their representatives

Relations 2016changesprior to the implementation of significant

with Labor Union

operational changes that could substantially affectthem.
b. For organizations with collective bargaining
agreements, report whether the notice period andprovisions for consultation and negotiation are
specified in collective agreements.
Occupational Health and Safety *：GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

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

＞

ii. the organization’s involvement with the impacts.

Nissha Group’s CSR

material topic and its

For example, whether the organization has

Materiality

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

Explanation of the

4­6
113­115

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

＞CSR

3­4

＞

4­6

＞Nissha＞9­10Nissha Group’s CSRManagement
Nissha Group’s CSR

a. An explanation of how the organization

Materiality

manages the topic.

Nissha Group’s CSR

b. A statement of the purpose of the management

Group’s Stakeholders External

approach.

Assessmentc. A description of the following, if the
The management103­2approach and its
components＞

management approach includes that component:

Human Rights Hotline

i. Policies

Human Resources

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

33＞＞Occupational Safety

Development Safety and
Healthand Health Policy / Safety and
Health Objectives, Safety and

52­53

Health Management System /Safety and Health
Subcommittee＞

The Environment

Environmental Policy and

58­59

Management Structures

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

＞CSR

Evaluation of theof the management approach;

Nissha Group’s CSR

management approachii. the results of the evaluation of the management

Management

3­4

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

：

GRI 403

Occupational
Health and Safety
2016

403­1

403­2

＞Safety anda. The level at which each formal joint

Safety and HealthWorkers representation

management­worker health and safety committee

Health Management System /in formal joint

typically operates within the organization.

Safety and Healthmanagement–worker

b. Percentage of workers whose work, orSubcommittee

health and safety

workplace, is controlled by the organization, thatcommittees

are represented by formal joint management­

Human Rights Relationshipworker health and safety committees.

with Labor Union

Types of injury and rates

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

Safety and Healthof injury, occupational

disease rate (ODR), lost day rate (LDR), absenteeof Work­related Accidents,

diseases, lost days, andrate (AR), and work­related fatalities, for all

Occurrence of Work­related

absenteeism, andemployees, with a breakdown by:

Accidents

＞

52­53

34­35

＞Occurrence
53­54

i. region;

141

CSR Report 2018

number of work­related

ii. gender.

fatalities

b. Types of injury, injury rate (IR), and work­
related fatalities, for all workers (excluding
employees) whose work, or workplace, iscontrolled by the organization, with a breakdownby:i. region;
ii. gender.
c. The system of rules applied in recording andreporting accident statistics.

403­3

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

incidence or high risk of specific diseases.

Health and safety topics
403­4

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

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

＞

ii. the organization’s involvement with the impacts.

Nissha Group’s CSR

material topic and its

For example, whether the organization has

Materiality

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

Explanation of the

4­6
113­115

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

＞

4­6Management

3­4

Nissha Group’s CSR

manages the topic.

＞CSR

a. An explanation of how the organizationb. A statement of the purpose of the management

The management103­2approach and its
components

approach.

Nissha Group’s CSR

c. A description of the following, if theMateriality

management approach includes that component:

Human Rights Hotline,

i. Policies

Building and Operation of aii. Commitments

Management System

＞

32­33

iii. Goals and targets
iv. Responsibilities

Human Resources

v. Resources

Development Human＞

vi. Grievance mechanisms

Resources Development Policy,

vii. Specific actions, such as processes, projects,

Approach to Human Resources

programs and initiatives

Development

37­38

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

＞CSR

Evaluation of theof the management approach;

Nissha Group’s CSR

management approachii. the results of the evaluation of the management

Management

3­4

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

：

GRI 404 Training

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

Average hours of

employees have undertaken during the reporting

Human Resources

training per year perperiod, by:Development Training

employeei. gender;

Programs in Fiscal Year 2017＞

38

ii. employee category.
404­2Programs for upgrading

a. Type and scope of programs implemented andemployee skills andassistance provided to upgrade employee skills.

142

CSR Report 2018transition assistanceb. Transition assistance programs provided toprograms

facilitate continued employability and the
management of career endings resulting fromretirement or termination of employment.

Percentage of
employees receiving
404­3

regular performanceand career development
reviews

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

Human Rights Fair Evaluation

performance and career development review

and Treatment

34

during the reporting period.

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

＞

ii. the organization’s involvement with the impacts.

Nissha Group’s CSR

material topic and its

For example, whether the organization has

Materiality

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

Explanation of the

4­6
113­115

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

The management103­2approach and its
components

＞CSR

3­4

＞

4­6

Nissha Group’s CSRManagement

approach.

Nissha Group’s CSR

c. A description of the following, if theMateriality

management approach includes that component:i. Policies＞

Human Rights Hotline,
Building and Operation of aii. Commitments
iii. Goals and targets
iv. Responsibilities

Human Resources

v. Resources

Development Programs tovi. Grievance mechanisms

Promote Diversity

vii. Specific actions, such as processes, projects,
programs and initiatives

32­33

Management System＞

39

Respect for Diversity

40­45

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

40­42

Management＞

Nissha Group’s CSR

ii. the results of the evaluation of the management3­4of the management approach;

management approach＞CSR

Evaluation of theapproach;
iii. any related adjustments to the management
approach.

：Diversity

GRI 405

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

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

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

Respect for Diversity

bodies and employees

b. Percentage of employees per employee

Composition of "Nissha People"

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

＞

Ratio of basic salarya. Ratio of the basic salary and remuneration of

Human Rights Wageand remuneration of

women to men for each employee category, byManagement

143

34

CSR Report 2018

women to men

significant locations of operation.
b. The definition used for ‘significant locations ofoperation’.

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

＞

ii. the organization’s involvement with the impacts.

Nissha Group’s CSR

material topic and its

For example, whether the organization has

Materiality

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

Explanation of the

4­6
113­115

linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.
a. An explanation of how the organization
manages the topic.
b. A statement of the purpose of the management
approach.
c. A description of the following, if the
The management103­2approach and its
components

＞CSR

3­4

＞

4­6

Nissha Group’s CSRManagement

management approach includes that component:

Nissha Group’s CSR

i. Policies

Materiality

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

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

32­33

of a Management Systemvii. Specific actions, such as processes, projects,
programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness103­3of the management approach;

Nissha Group’s CSR

management approachii. the results of the evaluation of the management

Management＞CSR

Evaluation of the3­4

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

：

GRI 406 Non­a. Total number of incidents of discrimination

discrimination 2016

during the reporting period.
b. Status of the incidents and actions taken with
Incidents of406­1

discrimination andcorrective actions taken

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

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

Freedom of Association and Collective Bargaining：

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

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

material topic and its

For example, whether the organization has

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

103­2

The managementa. An explanation of how the organization

144

CSR Report 2018

approach and its

manages the topic.

components

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

103­3

Evaluation of theof the management approach;

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

：Freedom

GRI 407

a. Operations and suppliers in which workers’of Association andrights to exercise freedom of association orCollective

collective bargaining may be violated or at

Bargaining 2016

407­1

＞

Operations andsignificant risk either in terms of:

Human Rights Freedom of

suppliers in which thei. type of operation (such as manufacturing plant)

Association and Collective

right to freedom ofand supplier;

Bargaining

association andii. countries or geographic areas with operations

Partnership with Our Suppliers

collective bargaining

and suppliers considered at risk.

may be at riskb. Measures taken by the organization in the34＞Basic Purchasing Policy, CSR

87­89

Supplier Audits

reporting period intended to support rights toexercise freedom of association and collective
bargaining.
Child Labor：GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
Nissha Group’s CSR

material topic and its

For example, whether the organization has

Materiality

103­1

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy＞

ii. the organization’s involvement with the impacts.

Explanation of the

4­6
113­115

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

The management103­2approach and its
components

＞CSR

3­4

＞

4­6

Nissha Group’s CSRManagementc. A description of the following, if the

Nissha Group’s CSR

management approach includes that component:

Materiality

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

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

Labor and Human Rights,

Building and Operation of a

33

32­33

Management System

programs and initiatives
103­3

a. An explanation of how the organization

Nissha Group’s CSR

evaluates the management approach, including:Management＞CSR

Evaluation of the
management approach

145

3­4

CSR Report 2018

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

：ChildGRI 408

a. Operations and suppliers considered to have

Labor 2016

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

408­1

＞

b. Operations and suppliers considered to have

Human Rights Basic Policy on

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

suppliers at significant

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

laborand supplier;
ii. countries or geographic areas with operations

32

Partnership with Our Suppliers＞Basic Purchasing Policy, CSR

87­89

Supplier Audits

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

＞

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

Nissha Group’s CSR

material topic and its

For example, whether the organization has

Materiality

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

4­6
113­115

linked to the impacts through its business
relationships.
c. Any specific limitation regarding the topic
Boundary.
a. An explanation of how the organization
manages the topic.
b. A statement of the purpose of the management
approach.
c. A description of the following, if the
The management103­2approach and its
components

＞CSR

3­4

＞

4­6

Nissha Group’s CSRManagement

management approach includes that component:

Nissha Group’s CSR

i. Policies

Materiality

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

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

32­33

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

＞CSR

Evaluation of theof the management approach;

Nissha Group’s CSR

management approachii. the results of the evaluation of the management

Management

3­4

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

：ForcedGRI 409409­1＞

Operations anda. Operations and suppliers considered to have

Human Rights Basic Policy on

or Compulsory

suppliers at significant

significant risk for incidents of forced orLabor and Human Rights

Labor 2016

risk for incidents ofcompulsory labor either in terms of:forced or compulsory

i. type of operation (such as manufacturing plant)

laborand supplier;
ii. countries or geographic areas with operations

32

Partnership with Our Suppliers＞Basic Purchasing Policy, CSR

87­89

Supplier Audits

and suppliers considered at risk.

146

CSR Report 2018b. Measures taken by the organization in thereporting period intended to contribute to theelimination of all forms of forced or compulsory
labor.
Security Practices：

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

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

material topic and its

For example, whether the organization has

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

The management103­2approach and its
components

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

103­3

Evaluation of theof the management approach;

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

：

GRI 410 Security

a. Percentage of security personnel who have

Practices 2016

received formal training in the organization’s
410­1Security personnel

human rights policies or specific procedures andtrained in human rights

their application to security.

policies or procedures

b. Whether training requirements also apply tothird­party organizations providing security
personnel.

Rights of Indigenous Peoples：

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

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

material topic and its

For example, whether the organization has

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

103­2

The managementa. An explanation of how the organization

approach and its

manages the topic.

components

b. A statement of the purpose of the management

147

CSR Report 2018

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

Evaluation of theof the management approach;

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

：Rights of

GRI 411a. Total number of identified incidents of violations

Indigenous Peoples

involving the rights of indigenous peoples during

2016

the reporting period.
b. Status of the incidents and actions taken with
411­1

Incidents of violations

reference to the following:

involving rights ofi. Incident reviewed by the organization;

indigenous peoples

ii. Remediation plans being implemented;
iii. Remediation plans that have been
implemented, with results reviewed throughroutine internal management review processes;
iv. Incident no longer subject to action.

Human Rights Assessment：

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

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

material topic and its

For example, whether the organization has

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

The management103­2approach and its
components＞

4­6Management

3­4

Nissha Group’s CSR

c. A description of the following, if the＞CSR

approach.
management approach includes that component:i. Policies

Nissha Group’s CSR
Materiality

ii. Commitments＞

iii. Goals and targets

Human Rights Hotline,

iv. Responsibilities

Building and Operation of av. Resources

Management System

32­33

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

a. An explanation of how the organization

Nissha Group’s CSR

evaluates the management approach, including:Management＞CSR

Evaluation of the
management approach3­4

i. the mechanisms for evaluating the effectivenessof the management approach;
ii. the results of the evaluation of the management148

CSR Report 2018

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

：HumanGRI 412

Rights Assessment
2016

Operations that have412­1been subject to humanrights reviews or impact
assessments＞

a. Total number and percentage of operations that

Human Rights Building andhave been subject to human rights reviews or

Operation of a Managementhuman rights impact assessments, by country.

System32­33

a. Total number of hours in the reporting period
devoted to training on human rights policies or
Employee training on412­2

human rights policies orprocedures

procedures concerning aspects of human rightsthat are relevant to operations.
b. Percentage of employees trained during thereporting period in human rights policies orprocedures concerning aspects of human rightsthat are relevant to operations.

412­3

Significant investment

a. Total number and percentage of significant

agreements andinvestment agreements and contracts that include

contracts that include

human rights clauses or that underwent human

human rights clauses orrights screening.

that underwent humanb. The definition used for ‘significant investmentrights screening

agreements’.

Local Communities：

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

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

material topic and its

For example, whether the organization has

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

The management103­2approach and its
components

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

103­3

Evaluation of theof the management approach;

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

：LocalGRI 413

Communities 2016

413­1

Operations with local

a. Percentage of operations with implemented

community

local community engagement, impact

engagement, impact

assessments,

assessments, andand/or development programs, including the use

development programs

of:

149

CSR Report 2018

i. social impact assessments, including gender
impact assessments, based on participatory
processes;
ii. environmental impact assessments andongoing monitoring;
iii. public disclosure of results of environmental
and social impact assessments;
iv. local community development programs basedon local communities’ needs;
v. stakeholder engagement plans based on
stakeholder mapping;
vi. broad based local community consultationcommittees and processes that include vulnerable
groups;
vii. works councils, occupational health and safetycommittees and other worker representation
bodies to deal with impacts;
viii. formal local community grievance processes.

413­2

Operations witha. Operations with significant actual and potential

significant actual andnegative impacts on local communities, including:potential negativei. the location of the operations;

impacts on local

ii. the significant actual and potential negative

communities

impacts of operations.

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

＞

ii. the organization’s involvement with the impacts.

Nissha Group’s CSR

material topic and its

For example, whether the organization has

Materiality

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

Explanation of the

4­6
113­115

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

3­4

Nissha Group’s CSR

approach.

＞CSR

b. A statement of the purpose of the managementc. A description of the following, if the
The management103­2approach and its
components

management approach includes that component:

Nissha Group’s CSR
Materiality＞

4­6

i. Policies
ii. Commitments

Human Rights Hotline

33＞

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

Partnership with Our Suppliers＞Basic Purchasing Policy, CSR

87­89

Supplier Audits

vii. Specific actions, such as processes, projects,
programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness103­3of the management approach;

Nissha Group’s CSR

management approachii. the results of the evaluation of the management

Management＞CSR

Evaluation of the3­4

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

：Supplier

GRI 414

Social Assessment

New suppliers that were
414­1

2016

screened using social
criteria

414­2

Negative social impacts

Partnership with Our Suppliers

screened using social criteria.

＞Basic Purchasing Policy, CSR

a. Number of suppliers assessed for social

Partnership with Our Suppliersa. Percentage of new suppliers that were

150

87­89

Supplier Audits

CSR Report 2018

in the supply chain andimpacts.

actions taken

b. Number of suppliers identified as having＞Basic Purchasing Policy, CSR

87­89

Supplier Audits

significant actual and potential negative social
impacts.
c. Significant actual and potential negative social
impacts identified in the supply chain.
d. Percentage of suppliers identified as having
significant actual and potential negative social
impacts with which improvements were agreed
upon as a result of assessment.
e. Percentage of suppliers identified as having
significant actual and potential negative social
impacts with which relationships were terminatedas a result of assessment, and why.
Public Policy：

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

Management

b. The Boundary for the material topic, which

Approach 2016

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

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

material topic and its

For example, whether the organization has

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

The management103­2approach and its
components

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

103­3

Evaluation of theof the management approach;

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

：

GRI 415 Publica. Total monetary value of financial and in­kind

Policy 2016

political contributions made directly and indirectly
415­1

Political contributions

by the organization by country andrecipient/beneficiary.
b. If applicable, how the monetary value of in­kind
contributions was estimated.

Customer Health and Safety：

GRI 103

103­1

a. An explanation of why the topic is material.

Nissha Group’s CSR

material topic and its

b. The Boundary for the material topic, which

Materiality

Approach 2016

Boundary

includes a description of:＞

Explanation of theManagement

i. where the impacts occur;

Editorial Policy

4­6
113­115

ii. the organization’s involvement with the impacts.
For example, whether the151

CSR Report 2018

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

＞CSR

3­4

＞

4­6

＞Nissha＞9­10Nissha Group’s CSRManagementa. An explanation of how the organization

Nissha Group’s CSR

manages the topic.

Materiality

b. A statement of the purpose of the management

The management103­2approach and its
components

approach.

Nissha Group’s CSR

c. A description of the following, if theGroup’s Stakeholders Externalmanagement approach includes that component:

Assessment

i. Policies

Human Rights Hotline＞

ii. Commitments

33

iii. Goals and targets

Corporate Ethics andiv. Responsibilities

Compliance Guideline of thev. Resources

Corporate Ethics andvi. Grievance mechanisms

Compliance, Promotion

vii. Specific actions, such as processes, projects,

Structure and Initiatives

programs and initiatives

＞

28­29

＞Quality

Consumer Issues

Slogan, Quality and Safety of96­97

Products

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

＞CSR

3­4

＞Quality and97

Evaluation of theof the management approach;

Nissha Group’s CSR

management approachii. the results of the evaluation of the management

Management

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

：

GRI 416

Customer Healthand Safety 2016

Assessment of the416­1

health and safety
impacts of product andservice categories

a. Percentage of significant product and service
categories for which health and safety impacts areassessed for improvement.
a. Total number of incidents of non­compliancewith regulations and/or voluntary codes
concerning the health and safety impacts ofproducts and services within the reporting period,

Incidents of non­compliance concerning416­2

the health and safety
impacts of products andservicesby:i. incidents of non­compliance with regulations
resulting in a fine or penalty;

Consumer Issues

ii. incidents of non­compliance with regulations

Safety of Products

resulting in a warning;
iii. incidents of non­compliance with voluntary
codes.
b. If the organization has not identified any non­compliance with regulations and/or voluntary
codes, a brief statement of this fact is sufficient.

Marketing and Labeling：

GRI 103

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

Management103­1material topic and its

b. The Boundary for the material topic, which

Approach 2016

Boundary

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

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CSR Report 2018

a. An explanation of how the organization
manages the topic.
b. A statement of the purpose of the management
approach.
c. A description of the following, if the
The management103­2approach and its
components

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

103­3

Evaluation of theof the management approach;

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

：

GRI 417

a. Whether each of the following types ofMarketing andinformation is required by the organization’sLabeling 2016

procedures for product and service informationand labeling:i. The sourcing of components of the product orservice;
Requirements for
417­1

product and service
information and labelingii. Content, particularly with regard to substancesthat might produce an environmental or social
impact;
iii. Safe use of the product or service;
iv. Disposal of the product and environmental orsocial impacts;v. Other (explain).
b. Percentage of significant product or service
categories covered by and assessed forcompliance with such procedures.
a. Total number of incidents of non­compliancewith regulations and/or voluntary codes
concerning product and service information andlabeling, by:

Incidents of non­417­2compliance concerning
product and service
information and labelingi. incidents of non­compliance with regulations
resulting in a fine or penalty;
ii. incidents of non­compliance with regulations
resulting in a warning;
iii. incidents of non­compliance with voluntary
codes.
b. If the organization has not identified any non­compliance with regulations and/or voluntary
codes, a brief statement of this fact is sufficient.

417­3

Incidents of non­a. Total number of incidents of non­compliancecompliance concerningwith regulations and/or voluntary codes

marketingconcerning marketing communications, including

communications

advertising, promotion, and sponsorship, by:i. incidents of non­compliance with regulations
resulting in a fine or penalty;
ii. incidents of non­compliance with regulations
resulting in a warning;
iii. incidents of non­compliance with voluntary
codes.
b. If the organization has not identified any non­153

CSR Report 2018

compliance with regulations and/or voluntary
codes, a brief statement of this fact is sufficient.
Customer Privacy *：GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

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

＞

ii. the organization’s involvement with the impacts.

Nissha Group’s CSR

material topic and its

For example, whether the organization has

Materiality

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

Explanation of the

4­6
113­115

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

＞CSR

3­4

＞

4­6

b. A statement of the purpose of the management

Materiality

approach.

Human Rights Hotline

33

Nissha Group’s CSRManagementa. An explanation of how the organization
manages the topic.

Nissha Group’s CSR＞

c. A description of the following, if the
The management103­2approach and its
components

management approach includes that component:

Initiatives Related to Informationi. Policies

Securityii. Commitments
iii. Goals and targets
iv. Responsibilities
v. Resources＞Nissha
＞85

Nissha Group’s CSRGroup’s Stakeholders External
Assessment

＞
＞Risk

vi. Grievance mechanisms

The Environment Wastevii. Specific actions, such as processes, projects,

Management

programs and initiatives

Management Related to Waste

9­10

71

and Waste Converted in
Valuable Resources

a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness103­3of the management approach;

Nissha Group’s CSR

management approachii. the results of the evaluation of the management

Management＞CSR

Evaluation of the3­4

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

：

GRI 418

a. Total number of substantiated complaints

Customer Privacy

received concerning breaches of customer

2016

privacy, categorized by:

418­1

Substantiated

i. complaints received from outside parties andcomplaints concerning

substantiated by the organization;

breaches of customer

ii. complaints from regulatory bodies.

privacy and losses ofb. Total number of identified leaks, thefts, or

customer data

losses of customer data.

No complaint has been reported.

c. If the organization has not identified any
substantiated complaints, a brief statement of thisfact is sufficient.
Socioeconomic Compliance *：GRI 103

103­1

a. An explanation of why the topic is material.

Nissha Group’s CSR

material topic and its

b. The Boundary for the material topic, which

Materiality

Approach 2016

Boundary

includes a description of:＞

Explanation of theManagement

i. where the impacts occur;

Editorial Policy

4­6
113­115

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

154

CSR Report 2018

c. Any specific limitation regarding the topic
Boundary.
a. An explanation of how the organization

＞

4­6
33

Management

3­4

Nissha Group’s CSR

b. A statement of the purpose of the management＞CSR

manages the topic.
approach.

The management103­2approach and its
components

c. A description of the following, if the

Nissha Group’s CSR

management approach includes that component:

Materiality

i. Policies

Human Rights Hotline＞

ii. Commitments
iii. Goals and targets

Corporate Ethics andiv. Responsibilities

Compliance Guideline of thev. Resources

Corporate Ethics andvi. Grievance mechanisms

Compliance, Promotion

vii. Specific actions, such as processes, projects,

Structure and Initiatives

＞

28­29

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

＞CSR

3­4

＞Quality and97

Evaluation of theof the management approach;

Nissha Group’s CSR

management approachii. the results of the evaluation of the management

Management

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

：

GRI 419a. Significant fines and non­monetary sanctions

Socioeconomic

for non­compliance with laws and/or regulations inCompliance 2016

the social and economic area in terms of:i. total monetary value of significant fines;

419­1

Non­compliance with

ii. total number of non­monetary sanctions;

laws and regulations iniii. cases brought through dispute resolution

Consumer Issues

the social and economic

mechanisms.

Safety of Products

area

b. If the organization has not identified any non­compliance with laws and/or regulations, a brief
statement of this fact is sufficient.
c. The context against which significant fines andnon­monetary sanctions were incurred.

Material topics specific in Nissha
Grievance Mechanisms *：GRI 103a. An explanation of why the topic is material.

Management

b. The Boundary for the material topic, which

Approach 2016

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

＞

ii. the organization’s involvement with the impacts.

Nissha Group’s CSR

material topic and its

For example, whether the organization has

Materiality

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

Explanation of the

4­6
113­115

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

b. A statement of the purpose of the management

4­6

Management＞

Nissha Group’s CSR

manages the topic.

3­4

a. An explanation of how the organization＞CSR

The management
approach and its

approach.
c. A description of the following, if the

Nissha Group’s CSR
Materiality＞

management approach includes that component:

Human Rights Hotline,

i. Policies

Relationship with Labor Union

ii. Commitments
iii. Goals and targets
iv. Responsibilities

Corporate Ethics andCompliance

34­35

28­29

v. Resources
vi. Grievance mechanisms

155

CSR Report 2018

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

＞CSR

Evaluation of theof the management approach;

Nissha Group’s CSR

management approachii. the results of the evaluation of the management

Management

3­4

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

＞

Index

Human Rights Hotline

33

＞

4­6

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

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:i. where the impacts occur;
ii. the organization’s involvement with the impacts.

Nissha Group’s CSR

material topic and its

For example, whether the organization has

Materiality

Boundarycaused or contributed to the impacts, or is directly

Editorial Policy

Explanation of the
103­1

113­115

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

The management103­2approach and its
components

＞CSR

3­4

＞

4­6

Human Rights Hotline

33c. A description of the following, if the

Nissha Group’s CSR

management approach includes that component:

Management

i. Policies

Nissha Group’s CSR

ii. Commitments
iii. Goals and targets
iv. Responsibilities

Materiality＞

v. Resources
vi. Grievance mechanismsvii. Specific actions, such as processes, projects,
programs and initiatives
a. An explanation of how the organization
evaluates the management approach, including:i. the mechanisms for evaluating the effectiveness103­3of the management approach;

Nissha Group’s CSR

management approachii. the results of the evaluation of the management

Management＞CSR

Evaluation of the3­4

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

Management

b. The Boundary for the material topic, which

Approach 2016

includes a description of:Prevention of Further Global

i. where the impacts occur;

Warming

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

Management

material topic and its

For example, whether the organization has

Boundarycaused or contributed to the impacts, or is directly

103­1

linked to the impacts through its business
relationships.

＞Initiative in Scope 3＞

Nissha Group’s CSR
Materiality
Editorial Policy

69

4­6
113­115c. Any specific limitation regarding the topic
Boundary.

156

CSR Report 2018

103­2

＞CSR

3­4

＞

4­6

Human Rights Hotline

33

The managementa. An explanation of how the organization

Nissha Group’s CSR

approach and its

manages the topic.

Management

components

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

Nissha Group’s CSR
Materiality＞

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

25­26

Management＞

Nissha Group’s CSR

ii. the results of the evaluation of the management3­4of the management approach;

management approach＞CSR

Evaluation of theapproach;
iii. any related adjustments to the management
approach.
Corporate Governance Risk

IndexManagement

157

CSR Report 2018