Materiality
Materiality Initiatives and KPIMateriality

Strengthening of
Nissan Chemical’sbusiness baseContinuous
improvement ofresponsible care activities

We aim to provide new value
for helping to enrich people’s lives through four businesses based on core technologies.

We aim to strengthen ourbusiness base to improve
our ability to respond to increasingly diverse and sophisticated marketing needs.

We aim to enhance the maintenance of environment,
health, and safety throughthe operation of the Nissan
Chemical Responsible CareManagement System.

Social issues and social changes looking ahead to 2050 and issues to be addressed by Nissan Chemical
were discussed across the Company in the “Business Planning Project” led by the President and the Vice
President, and it was confirmed that there have been no major changes in social issues and social changes since the previous formulation.

SocialEconomy◦Advanced climatechange◦Global crisis◦Increase of requests forconsideration of health and safety
in the work environment◦Advent of a smart society◦Intensification of inter-corporate competitions◦Diversification of risk factors◦Exacerbation of thefood issues◦Changes in lifestyle◦Labor shortage◦Worsening health issues

Review of Materiality
and Materiality Factors◦Increase of requests for sustainability
considerations in the supply chain◦Increase of interest in corporate governancereform◦Increase of requests for information disclosure● Net sales: +6% compared to FY2021● Net sales: +15% compared to FY2021● Net sales: +22% compared to FY2021

Contribution to theimprovement of thequality of life

● Supply of disinfectants for drinking water● Contribution to maintaining the health ofcompanion animals● Net sales: +15% compared to FY2021● Net sales: +34% compared to FY2021

Contribution to healthissues● Supply of generic drugs● Offer of contracted manufacturing andservice for pharmaceuticals● Development of materials for regenerative
medicine market● Development of drugs for intractablediseases● Net sales: +5% compared to FY2021● Net sales: +4% compared to FY2021

Nissan Chemical
Sustainable Agenda● Provision of products and services that
contribute to solving social issues● M aintaining at least 55% in consolidated
net sales● Above 55%

Enhancement of R&Dcapability● Acceleration of R&D through the use of AI● Expansion of core technologies● Further use of open innovation● Total number of patent applications(FY2022 to 2027): 2,500● Number of patent applications: 378● Number of serious complaints: Zero
● Attendance rate of quality training: At
least 90%

● Number of serious complaints: 1● Attendance rate of quality training: 85%

Maintenance andimprovement ofemployees’ health● Promotion of measures against lifestylerelated diseases● Rate of employees within appropriate● Implementation of mental health measuresweight*: At least 70%● Awareness activities for employees on*BMI (body mass index): 18.5 to 25.0
maintaining their health● Promotion of female’s health● Promotion of work-life balance● Implementation of measures against

Creation of a comfortableharassment
workplace● Support for childcare and nursing care,

Strengtheningof Nissan
Personnel retention andChemical’strainings
business base● Introduction of a new personnel system(role grading system)● Strengthening of career development● Enhancement of self-development supportprograms

Identification ofMateriality andMateriality Factors(through resolution at theBoard of Directors)

From the perspective of incorporating outside opinions, we exchanged opinions in intensive discussions
with directors and audit & supervisory board members, including outside officers, regarding the materiality and materiality factors that had been reviewed in the Business Planning Project.

The Board of Directors confirmed and resolved the appropriateness of the materiality, materiality factors,
and key performance indicators (KPIs) for each materiality factor, which were identified based on the discussions in the Business Planning Project and the opinions of the officers.

Continuous
improvementof responsible
care activities● 81%● Positive response rate in survey ofemployee attitude on human resources
development: At least 65%● 60.5%● Promotion of active participation of females ● P roportion of females in the regular
position: At least 13%● Recruitment of international students
 roportion of female researchers in the● Promotion of employment of persons with ● P
regular position: At least 18%
disabilities● Proportion of females in the regular
position: 11.0%● Proportion of female researchers in theregular position: 14.8%

Promotion of fair-trading● Holding in-house training sessions, andconduction of other educational andawareness activities● Conduction of educational and awarenessactivities for compliance● Number of violations of antitrust laws: 0● Number of bribery of foreign public
officials: 0standards

Exchange of Opinions with
Directors and Audit &Supervisory Board Members,including Outside Officers● Utilization rate for annual paid leaves: At
least 80%

Promotion of diversity● Provision of feedbacks on results ofsustainable procurement survey

In regards to the 30 materiality factors, we considered and analyzed the social issues and social changes,
and then made arrangements to manage the impact on the Group.

● 68%

encouraging male employees to takeparental leaves

Promotion of sustainable● Provision of supports in improvement forprocurement
suppliers that do not meet the Company’s

Management of Impact
on Our Group

Relationwith SDGs

● Net sales: +16% compared to FY2021● Net sales: +55% compared to FY2021● Prevention of serious complaints

We reviewed materiality and materiality factors with reference to the SDGs, evaluation items ofESG-related evaluation organizations such as DJSI and FTSE, and sustainability information disclosure
guidelines such as SASB, and determined that the materiality identified in the previous mid-term businessplan “Vista2021” remains a priority issue for Nissan Chemical. On the other hand, in light of the priority of
Nissan Chemical’s business base and the results of our activities under Vista2021, we have added “safetyand disaster prevention” as a new materiality factor, and summarized into 30 materiality factors.

FY2022 Result● Supply of agrochemicals to increase cropyields and conserve agricultural labor infood production● Contribution to the maintenance of healthof livestock

Improvement of products● Prevention of quality fraud and data
qualitytamperingSocial Issues and Social Changes

Environment

FY2027 Target● Supply of materials that contribute tohigher capacity/speed of data
communication and sensing

Contribution to smart

Provision ofsociety
new value forhelping toContribution to the foodenrich people’s issues
lives

Materiality Identification Process

Gain Understanding
About Social Issues andSocial Changes

Vista2027 Major Initiatives● Development of materials that contribute to
the expansion of renewable energy● Development of materials that contribute to
the achievement of a circular economy● Reduction of the application amount ofSupply of environmentalagrochemicals
Net sales: +10% compared to FY2021
friendly products and● Introduction of recyclable packaging materials ●services● Supply of exhaust gas removal materials● Supply of disinfectants and water treatment
for septic tanks● Supply of materials that enable reduction ofoil and fat waste

Three Materiality of Nissan Chemical Group
Provision of newvalue for helping toenrich people’s lives

Materiality factor

 ero violations of antitrust laws●Z ero bribery of foreign public officials●ZProvided feedback to suppliers who● Provision rate of supports in improvement ● responded to the previous mid-term
for suppliers that do not meet thebusiness plan and those who responded
Company’s standards: At least 90%
in the first half of FY2022

Adaptation to climatechange● M aintaining and improving the resilience of ● Update and maintenance of BusinessUpdated or maintained BCPs for products
business activities in the event of natural
Continuity Plans (BCPs) for products that ● that account for 41% of ordinary income
disasters
account for 50% of ordinary income

Mitigation of climatechange● GHG emissions reduction● GHG emissions: Reducing by at least 30%
from FY2018 level● GHG emissions: Reduced by 9.8% fromFY2018 level

Promotion ofoccupational health andsafety● Strengthening of occupational safetymanagement● Zero accidents requiring staff time offfrom work
● Number of occupational accidents:
Reducing by half compared to FY2020● Number of accidents requiring staff timeoff from work: 2● Number of occupational accidents: 7(FY2020: 8)● Held e-learning course on occupationalsafety (at Nissan Chemical and 2 Groupcompanies)

Biodiversity
conservation● Promotion of biodiversity conservation
activities

 stablishment and operation of Bio-Parks●Eat Nissan Chemical’s plants● Established the Saitama Plant Bio-Garden

 ontinuation of zero serious violations of●Claws and regulations● Number of serious violations of laws andregulations: 0 (maintained)

Management of chemical ● Compliance with laws and regulations
regarding the use of chemical substances
substances
Reduction of industrial
waste and pollutant
emissions eduction in final disposal ratio at Nissan● Reduction of industrial waste and pollutant ● Remissions for final disposal
Chemical’s plants (compared to FY2020)● 22.6% (FY2020: 14.3%)

Safety and disasterprevention● Strengthening of the management of safety ● Zero fires, explosions and chemical spills
and disaster prevention
 ero safety accidents●Z● Number of fire: 1, Number of explosions: 0,
Number of chemical spills: 0● Number of safety accidents: 1

Materiality and SDGs Web https://www.nissanchem.co.jp/eng/csr_info/management/materiality.html
Nissan Chemical Corporation

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Integrated Report 2023

Nissan Chemical Corporation

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Integrated Report 2023

Value Creation & Growth Strategies

In order to realize our ideal state in 2050 as set out in our long-term business plan “Atelier2050”, to be “a future-creatingcompany that grows through seeking to enrich people and nature”, and “a group of co-creators that face challenges forchange with a strong passion”, in FY2022, we reviewed the materiality that we need to address. With the aim of achieving
sustainable development for society and the Nissan Chemical Group, we are managing our progress on an annual basis byusing the KPIs up to FY2027 set in our mid-term business plan for “Vista2027” as indicators for sustainable management.