Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

3. Nissha Group Sustainability
3-1

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.

3-2

Sustainability Vision (long-term vision for 2030)

Nissha views sustainability as “initiatives for sustainable growth and development for both the company and society.” We believe that solving social
issues, which are primal needs, will support social development and lead to corporate growth.
Throughout our 90-plus year history, we have grown by evolving and expanding our core technologies and reorganizing our target markets. Under
our Mission, we have analyzed the magnitude of social issues and the sustainability of market growth for the next 10 years, and relatively evaluatedthe added value that can be created through our core technologies. Based on this analysis, we have positioned Medical, Mobility, and Sustainable
Materials as our growth areas.
Sustainability Vision(Long-term vision for 2030)

With integration and orchestration of the diverse capabilities of our people and ourtechnologies, we will contribute to solving global social issues in the priority markets ofmedical, mobility, and sustainable materials, and realize the enrichment of people's lives.

Social value
Solve social issues through business activities● Solve medical issues, realize safe andcomfortable mobility, and contribute toa circular society● Reduce 30% of total CO emissions, in view
2of carbon-neutral by 2050 (compared to2020)●■ Mission
Economic value

We realize the enrichment of peopleʼs lives by●

Aim for JPY 300 billion of net sales（including JPY 150 billion in medical business）

creating technology and developing it●

into economic and social value through the diverse capabilities,●

ROE 15%
Operating Profit Margin 12%

passion, and leadership of the global Nissha Group.
Mobility

Sustainable Materials

IT Devices

Solve medical issues

Realize safe and comfortable mobility

Contribute to a circular society• Reduce patient burden (QOL improvement)• Efficiency and labor saving in diagnosis
and treatment• Promote telemedicine (consultation andtreatment)• Comfort: More comfort in interior space• Safety and Convenience: Improve communication between people and cars
• Sustainability: Reduce environmental impact• Achieve carbon neutrality• Protection of the natural environment• Provision of petroleum-based plastic
alternative

Contribute to solving social issues
through our capabilities cultivatedfor IT devices

MedicalNissha Sustainability Report 2024

• Penetrate IT technology into society
through advancement of digital transformation

3-1

Environment
Contents /Editorial Policy

3-3

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Promotion Framework for Sustainability

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

■ Structure

Nissha has established a Sustainability Committee, chaired by the President and CEO with the
Senior Executive Vice President (ESG Promotion) as the Vice-Chair. This committee is composed ofbusiness organizations, divisions, and the ESG task force related to the themes of Creating business
opportunities, Risk reduction, Strengthening management foundation, and Corporate governance,
and which all work in concert with each other.
The ESG task force has been established to address the themes of Enhancing human capital,
Respect for human rights, and Responding to climate change. These are considered to be
par ticularly impor tant from an ESG perspective, and the ESG task force is responsible foraccelerating activities for each of these at Nissha.
The Sustainability Committee holds a general assembly once per year, in which it authorizes the
key performance indicators (KPI) and action items set by the main related business organizations,divisions, and the ESG task force based on the materialities determined through resolutions at
the Board of Directors. In addition, monthly business reviews and quarterly progress confirmation
meetings are held to confirm whether or not the set KPIs and action items are progressing asplanned. Each business organization, division, and the ESG task force oversee the management ofrespective strategy items, KPIs, and action items. In the fiscal year ended December 2023, we held
one Sustainability Committee General Assembly and three Progress Review Meetings.
The Board supervises the activities of the Sustainability Committee, discussing reports from theSustainability Committee and the ESG Task Force, and making necessary recommendations.

Nissha Sustainability Report 2024

3-2

Environment
Contents /Editorial Policy

3-4

Nissha Group
Sustainability

Environment

Third Party
Verification

SocialHuman
RightsHuman
Resources

Materialities (Key Issues) and KPIs

3-4-1 Materiality Identification
To realize our Sustainability Vision, the Nissha Group identifies particularly important items as
materialities. We also set and engage in specific strategy items, KIPs, and action items reversecalculated to achieve 2030 goals.
Materialities are evaluated from the 4 perspectives of, Creating Business Opportunities, Risk
Reduction, Strengthening Management Foundation, and Corporate Governance, using the twoaxes of importance to society and stakeholders, and importance to Nissha. In addition, we holddialogues with stakeholders including customers, shareholders and investors, and include that
insights in "importance to society and stakeholders". The identified issues and their positioning
within the Group are discussed by the Sustainability Committee, and materialities are identified
through deliberations and resolutions by the Board of Directors.

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

■ Materiality Identification Process
STEP1
Identify related social
issuesIdentify social and management issues related to the realization of the
Sustainability Vision by referencing SDGs*1, GRI Standards*2, RBA*3, etc.

STEP2
Prioritize

Incorporate knowledge gained through dialogue with customer s,shareholders, investors, and other stakeholders regarding the social andmanagement issues identified in Step 1, while analyzing and prioritizing
on two axes: "importance to society and stakeholders” (considering
SDGs, external evaluation, etc.) and "importance to Nissha".

STEP3
Verify validity

Examine the validity of the priorities via inter views conducted withbusiness divisions involved in the Sustainability Committee, ESG task
force and other organizations.

STEP4
Establish
materialities, KPIs,
and action items

Based on Steps 1 to 3, materialities are identified through deliberations
and resolutions by the Board of Directors. In addition, business divisions,organizations, and the ESG task force incorporate strateg y items,
KPIs, and action items which are then approved by the Sustainability
Committee.

*1. Sustainable Development Goals: Adopted by the United Nations in September 2015
*2. Global Reporting Initiative Standards: Global guidelines for sustainability reporting*3. Responsible Business Alliance: International code of conduct for labor, health and safety, environment, ethics, etc. for the electronics andother industries

Nissha Sustainability Report 2024

3-3

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

The Nissha Group is considering environmental changes that can potentially impact our businessactivities. We identify particularly important items for the realization of the Nissha Group
Sustainability Vision as material issues and review these items once a year.

■ Creating Business Opportunities
Identified based on important social issues (needs) in the priority markets as stipulated in
Sustainability Vision

Solve medical issues(Medical devices)

Scenario for Achieving Materialities(Strategy Items)

Expansion of business for Medical
Devices / Healthcare market

KPIs and Action Items(FY2026)• Net sales of Medical
Technologies business

Fair Operating Practices/ Local Communities

Expansion of business for Mobility
marketPromotion of circular
economy (Sustainable
Materials)

Expansion of business for Sustainable Materials market• Net sales of Mobility segment

RelatedSDGs

Materialities

Scenario for Achieving Materialities(Strategy Items)

GRI Standards Content
Index / ESG Data

KPIs and Action Items(FY2026)

Respect for humanrights• Reduction of labor and humanrights risks• Number of child labor and forcedlabor cases at primary suppliersin areas* with high labor andhuman rights risks : 0

Responding toclimate change• Reduction of CO2 emissions• Reduction of total CO2 emissions-18% (compared to 2020)

Providing responsible
products and services• Maintain and expand quality management system in accordancewith business strategy• Enhance quality at the design stage
with a focus on product safety andfeasibility• Implement quality education• Number of serious quality
incidents: 0

Sustainableprocurement• Establishment and operationalization of stable procurement• Achieve sustainable andstable procurement throughprocurement strategies that
understand the capabilities ofsuppliers and the risks associatedwith each procured item
[FY2024]• Cost reduction through global
sourcing• Transition to green procurement

Data security inresponse to increased
use of generative AI• Continuously enhance security
systems• Maintain and improve security
literacy among all employees• Improve productivity throughproactive use of generative AI• Timely deployment of security
systems across the entire Nissha
Group• Company-wide implementationof phishing email training andeducational systems• Develop governance and provide
education related to generative AI• Providing mobility products that
contribute to safety, comfort, andreduction of environmental impact• Promotion of circular economy• Solving marine plastic pollution
issues• Contribution to improving resource
utilization efficiency• Biodiversity conservation considerations

GovernanceEvaluated and identified environmental and social risks that impede business continuity in aiming toachieve Sustainability Vision• Contribution to medical carecentered on minimally invasive(heart disease) and acute care fields

Contribute to thesafety and comfortof transportationand logistics, and the
reduction of environmental impact(Mobility)

Quality Management / Efficiency
and Productivity Improvement■ Risk Reduction

3-4-2 Materialities of Nissha Group / KPIs and Action Items

Materialities

Governance• Net sales of Sustainable
Materials segment

Related
SDGs* Risk areas as defined by the International Labour Organization: Central and South America, Southeast Asia, and China

Nissha Sustainability Report 2024

3-4

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

GovernanceFair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

■ Strengthening Management Foundation■ Corporate Governance

Identified major management foundation elements in the quest for realizing our Sustainability
Vision and accelerating business activities

Identified major corporate governance elements in the quest for realizing our Sustainability Vision
and accelerating business activities

Materialities

Enhancing humancapitalEfficiency andproductivity
improvement

Scenario for Achieving Materialities(Strategy Items)

KPIs and Action Items(FY2026)

RelatedSDGs

Materialities• Promote opportunities forfemale employee• Female manager ratio
Global consolidated: 23%
Nissha non-consolidated: 12%

Improving theeffectiveness of theBoard of Directors• Enhancement of trainings for
management / strategic humanresources, and employee rotation• Selection rate of leader
candidates in selective training
programs
Nissha non-consolidated: 45%

Advancement of
global governance• Improve efficiency and productivity by digitalization of value
creation processes• Expand data-based decisionmaking mechanisms• Reduce working hours throughthe introduction of productivity
enhancement tools at overseas
subsidiaries: 20,000 hours /year (compared to 2023)• Reduce working hours for nonroutine tasks by using generativeAI

Nissha Sustainability Report 2024

Scenario for Achieving Materialities

KPIs and Action Items

Related
SDGs• Upgrade systems related tocorporate governance and group
governance• Improve the evaluation of theeffectiveness of the Board of
Directorsー• Complete the global risk
management systemdevelopment (regional risk
management systems)ー(Strategy Items)(FY2026)■ Boundaries of Materialities
Materialities

Boundaries
Inside Nissha Group

Outside Nissha Group

Respect for human rights●●

Responding to climate change●●

Providing responsible products and services●●

Sustainable procurement●●

Data security in response to increased use of generative AI●

Enhancing human capital●

Efficiency and productivity improvement●

Improving the effectiveness of the Board of Directors●

Advancement of global governance●

3-5

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Materialities■ Creating Business Opportunities

Solve medical issues(Medical devices)

Scenario for Achieving Materialities(Strategy Items)

Expansion of business for Medical Devices /Healthcare market• Contribution to medical care centered onminimally invasive (heart disease) and acutecare fields

Contribute to the safety andcomfort of transportationand logistics, and the
reduction of environmental
impact(Mobility)
Promotion of circular
economy(Sustainable Materials)

Expansion of business for Mobility market• Providing mobility products that contributeto safety, comfort, and reduction ofenvironmental impact

Expansion of business for Sustainable
Materials market• Promotion of circular economy• Solving marine plastic pollution issues• Contribution to improving resource utilization
efficiency

Fair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

■ Risk Reduction

3-4-3 FY2023 Initiatives and ProgressMaterialities

Governance

KPIs and Action
Items (FY2023)

Achievement
Status ＊• Net salesof Medical
Technologies
business○• Net sales ofMobility segment△• Net sales of
Sustainable
Materials
segment△

Scenario for Achieving Materialities(Strategy Items)

Progress in FY2023

Respect for humanrights• Reduction of labor and humanrights risks• Number of child labor and forced labor cases atprimary suppliers in areas* with high labor andhuman rights risks : 0• Conducted the regular annual survey of target
suppliers using the CSR survey form, and all
suppliers scored above the threshold• In addition to the above, site audits werecarried out for some selected suppliers. Minor
issues noted were given pointers on how to
improve them, and the results were confirmed
at a later date

Responding to climatechange• Reduction of CO₂ emissions• Achieved an 18.7% reduction in CO₂ emissions
in 2023, surpassing the target reduction ratioof a 9% (compared to 2020)• Promoted switch to renewable electricity atdomestic and overseas production bases andpromote energy conservation measures• Implemented Scope 3 emissions tracking, andthird party verification was obtained for someof them.

Providing responsible
products and services• Maintain and expand quality
management system in accordance with business strategy• Enhance quality at the design
stage with a focus on productsafety and feasibility• Implement quality education• Number of serious quality incidents: 0• Maintained or obtained new quality
management accreditation (ISO 13485, IATF
16949)• Confirmed the work related to design using
design review (DR) implementation andparticipation, and internal audits and screening
chances• Drafted and implemented training plans foreach function. Held 50 lectures, attended bya total of some 1,500 people. Also carried out
basic training for people working in loading

Sustainableprocurement• Establishment and operationalization of stable procurement• Carried out risk reduction measures for
those major components which require
procurement risk measures. Achieved
target implementation rate

• Biodiversity conservation considerations* This evaluates the level of achievement of net sales plans for each segment in FY2023.

* Risk areas as defined by the International Labour Organization: Central and South America, Southeast Asia, and China

Nissha Sustainability Report 2024

3-6

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources■ Strengthening Management Foundation
Materialities

Enhancing humancapitalScenario for Achieving Materialities(Strategy Items)• Promote opportunities forfemale employee

Fair Operating Practices/ Local Communities

Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

■ Corporate Governance
Progress in FY2023• Female manager ratio
Global consolidated: 22.7%
Nissha non-consolidated: 7.1%
• Heads of departments which had female
employees in the grades before managerial
staff met with HR to work on planned fosteringand promoting based on the departmentʼs
expectations and the personʼs own wishes• Enhancement of trainings for
management / strategic humanresources, and employee rotation• Selection rate of leader candidates in selective
training programs
Nissha non-consolidated: 41.5%• Nissha Academy Business School beginnercourse held

Efficiency andproductivity
improvement• Improve efficiency and productivity by digitalization of value
creation processes• Carried out e-Learning training (approx.
200 attendees) and training using internal
instructors (approx. 400 attendees) in order toimprove IT literacy as well as training humanresources with expertise in both the businessand digital fields• The planned reduction of 39,000 hours / year
in working hours through the use of efficiency
tools and automation such as RPA was notachieved. Initiatives in the Nissha Group in
Japan have made a certain level of progress,
and we are planning to expand the use tooverseas Nissha Group companies• Made work more efficient using a work designer

Creating technologies
to achieve businessstrategies• Create product platforms aimed
at increasing development efficiency in priority markets• Product groups were listed and thecommon technologies needed when
they were developed were clarified, thenproduction platforms were built and thetarget number of cases (3 cases / year) was
achieved

Nissha Sustainability Report 2024

GovernanceMaterialities

Improving theeffectiveness of theBoard of Directors

Advancement of global
governance

Scenario for Achieving Materialities(Strategy Items)• Upgrade systems related tocorporate governance and group
governance

Progress in FY2023• Put into practice the Desirable Relationshipbetween Internal Directors and Outside
Directors• Reconfirmed the standard for agenda items
submitted to the Board of Directors and review
operation of reporting items• Implemented actions in response to internal
control checklist• Understood the compliance status of the RBA
Code of Conduct (Malaysia and China regions)3-7

Environment
Contents /Editorial Policy

3-5

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Initiatives in Which Nissha Participate and External Evaluations

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

on the 10 principles of the Global Compact and work daily
toward achieving them with an eye to meeting the needs ofglobal society. We disclose information about our activities insustainability reports, published on the Nissha Group website.

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

■ TCFD (Task Force on Climate-Related Financial

Disclosures)

3-5-1 Initiatives in Which Nissha Participate■ United Nations Global Compact

The Ten Principles of the UN Global Compact
Human Rights
Principle 1: Businesses should support and respect the protection ofinternationally proclaimed human rights; andPrinciple 2: make sure that they are not complicit in human rights
abuses.

LabourPrinciple 3: Businesses should uphold the freedom of associationand the effective recognition of the right to collective
bargaining;
Principle 4: the elimination of all forms of forced and compulsory
labour;Nissha Co., Ltd. support the United Nations Global Compact
since April 2012.
The United Nations Global Compact (UNGC), the world's largest
sustainability initiative, brings together the United Nations andthe private sector (companies and organizations) to build ahealthy global society. Its purpose is to have various companies
and organizations show responsible and creative leadership, andthereby act voluntarily as good citizens to achieve sustainablegrow th. Companies and organizations that sign the UNGC
are required to continue to work toward the realization of
the 10 principles, which relate to the protection of humanrights, the elimination of unfair labor practices, environmental
responsibility, and the prevention of corruption, based on thecommitment of the top management of the company.
At Nissha Group, we have in place various target s ba sed

Nissha Sustainability Report 2024

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 toenvironmental challenges;

I n J a n u a r y 202 2 , w e e x p r e s s e d a g r e e m e n t w i t h t h e
recommendations from the TCFD (Task Force on Climate-related
Financial Disclosures).
The TCFD, established by the Financial Stability Board (FSB),
recommends that companies take measures to understand andaddress climate change-related risks and opportunities as amanagement issue.
In this Report, we have implemented information disclosurethat employs the framework items recommended by the TCFD.
And in addition to aiming for the continued enhancement ofgovernance and strategy concerning climate change moving
forward, we will also promote the expansion of information
disclosure■ Japan Clean Ocean Material Alliance (CLOMA)

Principle 8: undertake initiatives to promote greater environmental
responsibility; andPrinciple 9: encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms,
including extortion and bribery.

United Nations Global Compact

In January 2019, we joined the "Japan Clean Ocean Material
Alliance" (CLOMA), which aims to solve the marine plastic waste
problem. CLOMA is an organization established by the public
and private sectors to accelerate efforts across industries such as
proper management of plastic waste, promotion of the 3Rs, andpromotion of developing of alternative materials.

3-8Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

3-5-2 External Evaluation■ CDP■ EcoVadis■ FTSE Blossom Japan Sector Relative Index

I n F e b r u a r y 2024, w e
received a "B" rating in the
Climate Change Report 2023
published by the CDP, aninternational non-governmento r g a n i z a t i o n ( N G O) t h a t
focuses on the environment. This is the third highest of the eightlevels of evaluation.

We have been awarded the Bronze rating in EcoVadis sustainability
survey. EcoVadis is a global sustainability rating provider that aims to
improve corporate environmental and social initiatives throughout
the supply chain. They evaluate companies' activities in the areasof Environment, Labor Practices and Human Rights, Ethics, andSustainable Procurement.

We have been selected a s
a constituent stock of the
FTSE Blossom Japan Sector
Relative Index. This index
developed by FTSE Russell
is de sig ned to ref lec t theperformance of companies inJapan demonstrating strong
Environmental, Social and Governance (ESG) practices in eachsector. The Government Pension Investment Fund (GPIF) is using it
as their ESG index.

■ MSCI ESG Ratings■ FTSE Blossom Japan Index■ MSCI ESG Leaders Indexes

We have received an “ A A”
rating (the second highest
rating) in MSCI ESG Ratings.
MS CI In c. c a l cu l at e s a n dpublishes numerous stock
indices, and provides a variety of tools for institutional investors
globally to support their decision-making on investment. The MSCIESG Ratings comprehensively evaluates the companiesʼ activities
for the environment, social, and governance of thousands ofcompanies around the world and compares them by industry. MSCI
evaluates and rates the companies in seven grades from the highest
rank “AAA” to the lowest “CCC”. （*1）

We have been selected a s
a constituent stock of the
FTSE Blossom Japan Index.
T h e F T SE B l o s s o m Ja p a n
Index is an index developed
by FTSE Russell that reflects
the performance of Japanese
co mp a ni e s w i t h su p er i o renvironmental, social and governance (ESG) performance. The
Government Pension Investment Fund (GPIF) using it as their ESG
index.

We have been selected as aconstituent stock of the MSCIESG Leaders Indexes. This is a
global index developed by USbased MSCI Inc. and formedby selecting top-rated ESG companies. （*1）

Nissha Sustainability Report 2024

3-9

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

■ MSCI Nihonkabu ESG Select Leaders Index■ S&P/JPX Carbon Efficient Index■ SOMPO Sustainability Index

We have been selected a s
a constituent stock of the
MSCI Nihonkabu ESG SelectLeaders Index. This index uses
the MSCI Japan Investable
Market Index (IMI) developed by US-based MSCI Inc. as its parent,
and formed by selecting top-rated ESG companies with the targetof 50% of stocks in each industry. The Government Pension
Investment Fund (GPIF) also uses it as their ESG index. （*1）

We are included as a constituent
stock of the S&P/JPX Carbon
Efficient Index. The S&P/JPX
Carbon Efficient Index is built by
the S&P Dow Jones Index, one of
the worldʼs largest independentindex companies, based oncarbon emissions data from
Trucost, a pioneer in environmental assessment. This index increases theinvestment weight of companies in the same industry with high carbon
efficiency, and those that disclose information on their greenhouse gas
emissions. The Government Pension Investment Fund (GPIF) is using it
as their ESG index.

We hav e b e en s el e c te d a s
a co ns t itu ent s to ck of t he
SOMPO Sustainability Index,
an index managed by Sompo
Asset Management Co., Ltd.
in su cce s si o n sin ce 2012.
This index is a unique active
index, which is composed ofapproximately 300 companies
with outstanding ESG initiatives.

■ MSCI Japan ESG Select Leaders Index■ Morningstar Japan ex-REIT Gender Diversity Tilt Index■ Certified Health and Productivity Management Out-We have been selected as aconstituent stock of the MSCIJapan ESG S elec t Leader s
Index. This index uses the
MSCI Japan Investable Market
Index (IMI) developed by US-based MSCI Inc. as its parent, andformed by selecting top-rated ESG companies with the target 50%
of market capitalization in each industry.（*1）

We have been selected as aconstituent stock of theMorningstar Japan ex-REIT
Gender Diversity Tilt Index(hereinafter, GenDi J), which isadopted by the Government
Pension Investment Fund(GPIF) as an ESG investment index. GenDi J is an index of the initiatives
concerning corporate gender diversity provided by Morningstar, aleading investment research firm and mutual fund rating evaluator in
the United States. We are currently in Group 1 (the top of 5 groups).
（*2）

Nissha Sustainability Report 2024

2024

Sompo Sustainability Index

standing Organizations
We have been recognized as a
"Certified Health & Productivity
Ma na g em ent O u t s t a n ding
Organizations (Large Enterprise
Category)" by the Ministry of
Economy, Trade and Industry
for the third year in a row.
The cer tification is given tocompanies with especially excellent health management practices.

3-10

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

Third Party
Verification■ Kurumin Certification
We have received “ Kurumin”
certification for threeconsecutive terms since thefiscal year ended March 2010,
and also certified with Platinum
Kurumin in March 2019. Basedon the Act on Advancement of
Measures to Support Raising
Next-Generation Children, “ Platinum Kurumin” is a certificationof companies that have already obtained Kurumin certification inrecognition of their measures to support employees with children andare carrying out initiatives at an even higher level.

■ DX (Digital Transformation) Certification
In August 2021, we havecertified as a "DX-Certified
Operator" based on the DX(Digital Transformation)
certification system establishedby the Ministry of Economy,
Trade and Industry (METI). It wasevaluated that our DX efforts
and appropriate information
disclosure to stakeholders meet the standards required by METI.

Nissha Sustainability Report 2024

SocialHuman
RightsHuman
Resources

Fair Operating Practices/ Local Communities*1 THE INCLUSION OF Nissha Co., Ltd. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS,
TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE ASPONSORSHIP, ENDORSEMENT OR PROMOTION OF Nissha Co., Ltd. BY MSCI OR ANY
OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCIAND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF
MSCI OR ITS AFFILIATES.
*2 Morningstar, Inc., and/or one of its affiliated companies (individually and collectively,“Morningstar”) has authorized Nissha Co., Ltd. to use of the Morningstar Japan exREIT Gender Diversity Tilt Logo (“Logo”) to reflect the fact that, for the designatedranking year, Nissha Co., Ltd. ranks in the top quintile of companies comprising theMorningstar® Japan ex-REIT Gender Diversity Tilt IndexSM (“Index”) on the issueof gender diversity in the workplace. Morningstar is making the Logo available foruse by Nissha Co., Ltd. for informational purposes. Nissha Co., Ltd. use of the Logo
should not be construed as an endorsement by Morningstar of Nissha Co., Ltd. or asa recommendation, offer or solicitation to purchase, sell or underwrite any security
associated with Nissha Co., Ltd. The Index is designed to reflect gender diversity in theworkplace in Japan, but Morningstar does not guarantee the accuracy, completenessor timeliness of the Index or any data included in it. Morningstar makes no express or
implied warranties regarding the Index or the Logo, and expressly disclaim all warranties
of merchantability or fitness for a particular purpose or use with respect to the Index, any
data included in it or the Logo. Without limiting any of the foregoing, in no event shall
Morningstar or any of its third party content providers have any liability for any damages(whether direct or indirect), arising from any partyʼs use or reliance on the Index or the
Logo, even if Morningstar is notified of the possibility of such damages. The Morningstar
name, Index name and the Logo are the trademarks or services marks of Morningstar,
Inc. Past performance is no guarantee of future results.

Governance
Quality Management / Efficiency
and Productivity Improvement

3-6

Governance

GRI Standards Content
Index / ESG Data

Nissha Group Stakeholders

We identify the stakeholders as our customers, shareholders,
employee s, supplier s, and s o ciet y. Toward realizing our
Mission, we aim to realize our respective visions while valuing a
relationship with the stakeholders in which we affect each other.

Nisshaʼs Circle of Trust■ Customer
The Nissha Group operates three core businesses, Industrial
Materials, Devices, and Medical Technologies. We provide a rangeof products and services that satisfy market needs and engage inbusiness activities that help solve social issues. We also promote
fair operating practices, efforts in labor and human rights, and thebuilding of environment-conscious production systems so that ourcustomers can feel safe about entrusting us with work.

3-11

Environment
Contents /Editorial Policy

Nissha Group
Sustainability

Environment

SocialThird Party
Verification

Human
RightsHuman
Resources

Fair Operating Practices/ Local Communities

Governance
Quality Management / Efficiency
and Productivity Improvement

Governance

GRI Standards Content
Index / ESG Data

Communication■ Employee■ Society• Sales activities in daily operations• Products and services information provided on our website• Providing information for sustainability survey• Providing information about conflict minerals• Supplier responsibility (SR) audits by customers

The Nissha Group recognizes that human resources are thedriving force for improving corporate value. We view changes
in the business environment as opportunities for growth, andaim to grow both the company and our employees by bringing
together "diverse capabilities and passions.” We respect ouremployeesʼ human rights and diversity from a global perspective,p r o m o t e t h e c r ea t i o n o f s af e, c o mf o r t a b l e w o r k p l a c eenvironments, and offer support for diverse work styles so that
our employees can live up to their full potential.

The Nissha Group comprises a network that spans across theglobe, and in each region, we carry out business activities withrespect for the local culture and climate. While promoting
communication with local communities to fulfill our basic
responsibilities as a corporation and to be a company that isneeded by society, we also strive to be aware of global social
issues and play a role in resolving them.

■ Shareholder
We have in place an Investor Relations (IR) division and a
Shareholder Relations (SR) division to serve as contact points for ourshareholders and investors, and to establish a system for promoting
deeper communication with our shareholders and comprehensively
providing financial and non-financial information. We also create
opportunities to meet directly and exchange dialogue with ourshareholders and investors through IR events and one-on-one
briefings. Feedback and comments are reported regularly at Boardof Directors meetings and to the management, and used for theenhancement of our corporate value.

Communication• Shareholdersʼ meetings and management briefings following
shareholdersʼ meetings• Financial results presentations for institutional investors• The Medium-term Business Plan presentations for institutional
investors• One-on-one briefings for institutional investors• Response to individual inquiries• IR information and sustainability information provided on our
website• Materials published for shareholders and investors (integrated
report, business report, sustainability report, etc.)• Providing information to investigation institutions for ESG
investment

Nissha Sustainability Report 2024

Communication• Dialogue between labor and management• Education and training• Personnel evaluation and interviews• Hotline• Providing information via the company intranet and company
newsletter• Engagement survey and interviews

Communication• Environmental initiatives• Support and promotion of arts and culture• Future generation support activities• Exchange events with community people• Factory and facility tours• Cleanup activities in factory areas• Employeesʼ participation in volunteer activities■ Supplier
We procure the materials, equipment, and services necessary for
production and a wide range of business activities from suppliersin various regions. We work fairly and equally with all suppliers topromote sustainable procurement in order to share awareness ofour social responsibility and enhance mutual corporate value.

Communication• Procurement activities in daily operations• CSR procurement briefings• CSR survey (Self Assessment Questionnaire: SAQ) and audit• In-house exhibitions and seminars themed around supplierproducts and technologies

3-12