CORPORATE SOCIAL RESPONSIBILITY REPOR T

CSR REPORT

Nippon Light Metal GroupCONTACT INFORMATION

Nippon Light Metal Holdings Company, Ltd.
CSR Contact, Central CSR and Audit OfficeUrbannet Uchisaiwai-cho Building, 1-1-13 Shimbashi, Minato-ku, Tokyo, 105-8681
TEL.03-6810-7168 FAX.03-6810-7167
https://www.nikkeikinholdings.com

Nippon Light Metal Group

Editorial policy

Table of Contents
Editorial policy ……………………………………………………

3

Message from CEO ………………………………………………

4

FeaturesOur efforts to select material issues ……………………………

6

Measures to address floods in the area around Amehata Dam …

8

Shimbashi Relocation Project ………………………………… 10
Our response to COVID-19 …………………………………… 12
Main content

Introduction

Boundary of the report

The aim of this CSR Report 2020 of the Nippon Light Metal (NLM)
Group is to ensure that the NLM Group’s CSR-related approachand initiatives are understood by our stakeholders by reportingthem in a way that is easy to understand.
The NLM Group recognizes the social issues that surround it.
We are also aware of climate change and ESG investments,
which are receiving increasing attention in recent years, andglobal initiatives including SDGs. We are pursuing CSR to help
solve these issues.
We would appreciate it if you would read about the initiatives
we take to address each of the issues and provide us with
opinions and comments.

This report describes the activities of and facts about Nippon
Light Metal Holdings Co., Ltd. and its 77 consolidated subsidiaries(a total of 78 companies) unless otherwise specified.

This is a direct English translation of the original Japanese
document.

CSR procurement ……………………………………………… 19
Diversity …………………………………………………………… 20

Period covered

Workstyle reform/Measures to reduce long working hours … 21

October 2020 (Next report: To be issued in October 2021;
Previous report: Issued in October 2019)

Independent assuranceAsymbol indicates that a third party, KPMG AZSA
Sustainability Co., Ltd., has provided independent assurance
regarding the reliability of the data.

Stock Indexes

Reference guidelines
This report was created by referring to the Environmental
Reporting Guidelines 2018 (Ministry of the Environment),
the Global Reporting Initiative (GRI) Standards and Prevention and
Mitigation of COVID-19 at Work Action Checklist (ILO).

The environment ………………………………………………… 15

Period of issuance

Data for the report were collected between April 2019 andMarch 2020.
* Data collected before or after this period are also used in some sections of this report.

Occupational safety ……………………………………………… 22
Quality assurance………………………………………………… 24
Local communities ……………………………………………… 27
Governance, Compliance and Internal Control ……………… 28
Independent Assurance Report ………………………………… 31

Reporting media of CSR information
This report describes the CSR initiatives that were taken by the NLM Group in FY2019.

2 Corporate Social Responsibility Report 2020

Corporate overview ……………………………………………… 32

Further information are available on our official website.

Data ……………………………………………………………… 34

Non-financial information

Financial information

CSR Report(Brochure/PDF)

WebsiteWebsitehttps://www.nikkeikinholdings.co.jp/csr/
https://www.nikkeikinholdings.com/csr/（English）

https://www.nikkeikinholdings.co.jp/ir/ir-data/
Annual Report

Fact Book

Nippon Light Metal Holdings Co., Ltd. 3

Message from CEOEntering the new normal with the power of Team NLM
Introduction

the market attributed to the US-China trade war and the slump infoundation thanks to the initiatives for improving our financial

the aluminum ingot price, I am fully aware that we did not have thestanding that we have been taking over the last ten years.

First, I would like to extend my heartfelt condolences to thosepower to overcome these factors. I suspect that our strategies andWe had cash on hand exceeding 130.0 billion yen, including the

who have lost loved ones to COVID-19. I would also like tomethods are behind global trends. I also suspect that because ourcommitment line, cash and deposits. While the situation remains

express my support for the people who are fighting the diseaseprofit had continued to increase since our foundation in 2012,

unpredictable, I feel that the initiatives we have taken were right on

and wish them a complete recovery, the people all over

we rested content with the status quo or avoided change, believing

target. This experience has made certain that we will be able to

the world who are working hard on the medical front lines, andthat the way we do things is right and that after we have passed

explore and capture new needs, new markets, and new work

those who are providing nursing care, as we work together tothe bottom of this recession, we would be able to enjoy growthstyles even during the current pandemic and the subsequent

take on the pandemic.

like before. A corporate group which rests content with a little

post-COVID world.

success is destined to move backward and rapidly fall into theabyss. The world is changing with time. We must continue to

The Problem of Sedimentationin Amehata Dam
Typhoon Krosa and Typhoon Hagibis, which brought
unprecedented torrential rains to Japan last year, severely
damaged the area around Amehata Dam, which is one of
Nippon Light Metal Co., Ltd.’s hydroelectric power generation
facilities. This resulted in flooding in the areas around the dam,causing great problems for local residents and others. On behalfof the NLM Group, I hereby extend my deepest apologies toeveryone who was affected.
This problem is reported in detail on pages 8 and 9. We willcontinue to respond faithfully, making the safety of local
communities the highest priority, operating with our belief inworking together with local communities to contribute to theirdevelopment and improvement, which is stated in the Social
Contribution Policy of the NLM Group. We have developed abasic plan to address the Amehata Dam sedimentation in
consultation with local residents, local municipalities, andrepresentatives from the national government. We would like toimplement this plan steadily with the cooperation of those
involved.

Progress of the mid-term management
plan, COVID-19, and the new normal
Financial results for the first fiscal year of the mid-term
management plan (for FY2019 to FY2021) were severe, with a
President and Chief Executive Officer,
Nippon Light Metal Holdings Company, Ltd.

4 Corporate Social Responsibility Report 2020change by trying new things, and always aim for growth.
In the second half of the fiscal year, COVID-19 struck the world

Selection of material issues
It is said that COVID-19 cleared the cloudy sky because theas if it were testing these thoughts of ours. The pandemic only

world’s factories and plants shut down, shops and offices wereminorly impacted our business performance in FY2019. However,closed, aircraft and automobiles stopped moving, and people

this is attributed to the time gap between the changes in thestayed at home due to the pandemic. And there are news reports

manufacturing market and their impact on our market. This gap isthat the world has achieved the reduction of greenhouse gas

experienced by companies that mainly deal in materials. I think thatemissions that it has targeted during the period when economic

the impact will gradually begin to extend.

and social activities had stopped due to the COVID-19 pandemic.

Regarding the virus’s impact on our employees and businesses,
one employee in Thailand, two in the United States, and one inThis news report reminds us how big and serious the climatechange problem is.

Japan were infected as of July 31. However, the scale of theLast year, we reported that we had begun to select our own

problem was not large enough to affect our businesses directly.

material issues to tackle the problem. Later, we discussed it at

While the COVID-19 pandemic has begun to slow down some ofvarious levels, including at meetings of the Board of Directors,

our businesses, we continue operating both in Japan and

the Group Executive Committee, the CSR Committee and others.

overseas.

Unfortunately, however, we have yet to select our material issues
because the discussions necessary for reaching a conclusion andWe launched a COVID-19 task force in March, with myself as its

the subsequent dialogues with stakeholders have beenhead, and began measures to control infection. We checked thesuspended, another effect of COVID-19. Here, I would like to sharestatus of infections within the group, including at overseas sites,

the content of the discussions to date, so that you can share yourand actively took measures, including the establishment of

opinions in the future.

measures to prevent infection, the confirmation of BCP,

We are in the first year of the Decade of Action, when all humans

teleworking, the opening of satellite offices, the improvement ofmust take action to achieve the SDGs by 2030. Our businessinternet environments, and the preparation of necessary equipment

domains have increasingly expanded. I believe that this expansion

such as face masks and disinfecting alcohol. Notably, officers andleads to the ability of the group to alleviate the impact crises have

employees worked as one in their positions and from their own

on our business performance, including climate change. I also

perspectives to prevent infection and continue businesses.

hope that, thinking the other way round, current and future threats

As a result, the impact of the pandemic on the group has been

can be transformed into great opportunities for the group because

minimized to date.

of this form of business. At the NLM Group, we are ready to

There is another story related to this. In December last year,

demonstrate our strengths which are enabled by cooperation andyear-on-year decline in both sales and profit. Net sales

we relocated our office to Shimbashi for several reasons. One was

to attempt new forms of business globally after the end of

decreased 34.6 billion yen (6.9%) year on year, to 465.9 billion

to strengthen our BCP. While we planned for different disasters,

COVID-19, or during what is being called the new normal.

yen. Net profit declined 13.1 billion yen (63.6%) year on year, tothe office relocation initiatives we had executed helped us respond

As Team NLM, we will work to be a groundbreaking innovator of

7.5 billion yen, reflecting special losses of 11.0 billion yen thatto the COVID-19 pandemic quickly, and enabled us to work fromaluminum and beyond. The transition to the new normal will be an

resulted from the above-mentioned measures to address

home and advance other measures without major difficulties.

opportunity for us to accelerate our efforts to take on new

Amehata Dam sedimentation, in addition to the decline in net

The details of the office relocation initiatives are discussed onchallenges and break new ground that no other material

sales. While there are various factors, including a slowdown ofpages 10 and 11. In addition, we have a strong financial

manufacturer has done before.
Nippon Light Metal Holdings Co., Ltd. 5

Feature Our efforts to select material issues

Our efforts to select material issues
Since 2018, we have been selecting material issues toward theachievement of sustainable society. In the mid-term management
plan for FY2019 to FY2021, we selected the three elements ofsafety, quality, and the environment, which we identified throughthe process of searching for material issues, as tentative coreelements of the issues. They were derived from the Management
Policy of the NLM Group.We distilled essential elements that
support the “Nippon Light Metal — Anything Aluminum” statementin the Management Policy. These elements are things that we havealways valued and that are important to society. We quantified anddistributed them according to economic andsocial value. Then we grouped policies andother elements in high positions according toboth their economic and social value, whichenabled us to derive the three core elementsof safety, quality, and the environment. Eachelement has two aspects: opportunities andrisks. For example, safety is related to therisk of workplace injuries, the risk of defective
products and services, and the risk of the
disruption of the supply chain, among others.
The other side, this element also isconnected to opportunities, including safe
town development and the growing demand
for safe, secure foods, medical products,
and services. Quality includes both productand service quality and the quality assurance
system that supports them. If these elementsfunction well, the value of the NLM brandincreases. Quality fraud and other problems
are major risks. The environment relates toenvironmental pollution risks and thesignificant environmental impact that ourbusiness activities have. The other side, thiscore element also involves opportunities, forexample, opportunities to develop products
and services that reduce environmental
impact or improve the environment.

In FY2019, discussions were conducted based on these threeelements while keeping present and future issues and the things
that are important to the corporate value that we will create in the
future in mind. We are exploring more specific products, services,businesses, and initiatives by considering how to adapt andrespond to climate change risks and opportunities and how the
NLM Group will contribute to achieving a sustainable society, thereason for establishing the SDGs.
A page from the presentation material
for the Nippon Light Metal Holdings mid-term management plan

Temperature rise

Giant typhoons, cloudburst, and other similardisasters occur frequently, resulting in the frequent
flooding and damage of production sites and insupply chains.

Rebuild production sites and supply chains to ensure
they are disaster-resistantLabor environment at production sites becomes
tougher, causing the loss of human resources and alabor shortage.

Create a humane workplace environment thatenables job satisfaction through the pursuit ofinnovative technologies and automation.

Sea level rise causes frequent flooding and damageat production sites in coastal areas.

Rebuild production sites and supply chains to ensure
they are disaster-resistant

The market shifts toward decarbonization, resulting inpeople and companies avoiding the use of aluminum,
which emits a large amount of carbon.

Improve our recycling technologies and alloy
development capabilities to expand our lineup of
products and services with high scrap content

Energy costs rise due to the transition away fromfossil fuels.

Significantly reduce carbon emissions from thecompany and supply chain

Aluminum-producing nations change their policies in
response to the tight balance between energy supply
and demand, resulting in an unstable aluminum
supply.

Establish our own sources of raw materials bybuilding a wider-ranging closed recycling system.

Possible opportunity

How to respond to the opportunity

Rebuild the supply chain so that it is disaster-resistantby working together with suppliers

Extreme weather

Material issues

Improving people’s lives
Providing safe, secure products and services that are useful for society

SafetyHealthy, safe workplaces(zero workplace injury)

Economic value

Enabling employees to enjoy themselves

The environment
Voluntarily and proactively tackling
global environmental issues

Identifying risks accurately and reducing themManaging the group in a way that ensures harmony between shareholders, suppliers, employees, and local communities

Complying with the laws and regulations of each country and respecting international norms
Complying with accounting standards and building a secure internal control system
Communicating with society and the timely, appropriate management and disclosure of information
Social value

Increased demand for the construction andrenovation of social infrastructure due to frequentdisasters.

Expand the lineup of disaster-resistant products andservices and those that improve the efficiency ofdisaster recovery
Win trust by providing products and services of amore reliable quality as materials to be used ininfrastructure for life and industry

Temperature rise

Demand for aluminum packages and cold chain
logistics increases in response to the growing
demand for antiseptic and antibacterial products.

Expand the lineup of products and services for
packaging materials and cold chain logistics

Decarbonization

The market shifts toward decarbonization, leading togreater demand for decarbonized aluminum.

Develop low-carbon aluminum by taking measures
including improving the recycling rate, using
renewable energy, and selecting ingot sources

Resource
efficiency

The value of materials with high resource efficiency isreaffirmed, resulting in greater demand for aluminumwith a high recycling ratio.

Improve our recycling technologies and alloy
development capabilities to expand our lineup of
products and services with high scrap content

Waste reduction

A shift to materials with a competitive edge regarding
the 3Rs occurs due to moves to stop using plastics,
resulting in greater demand for aluminum.

Develop functions, products, and services to bealternatives to plastics

Being environmentally friendly

Ensuring compliance

6 Corporate Social Responsibility Report 2020

Extreme weather

How to respond/adapt to the risk

Opportunities

Quality

Impressing customers

Possible risk

Decarbonization

Essential elements of the Management Policy

Pleasing shareholders

Risks

As a result, we identified six material issues.

Material issues of the NLM Group (proposed)

1. Development and provision of sustainable products andservices for sustainable applications
2. Development and provision of low-carbon products andservices
3. Value chain that is flexible and resilient to change

4. Happiness of employees
5. New normal
6. Harmonious co-existence with local communities andbuilding trust with themMoving forward, we plan to proceed with the determination of material issues by further deepening discussions and consultingwith each stakeholder to listen to their opinions.

Nippon Light Metal Holdings Co., Ltd. 7

Feature Measures to address floods in the area around Amehata Dam

Measures to address floods in the area around Amehata Dam
Torrential rains caused by Typhoon Krosa and Typhoon Hagibis in 2019 caused the water level of the Amehata
River above Amehata Dam to rise. The dam is owned by Nippon Light Metal Co., Ltd., our subsidiary. This
resulted in flood damage to the area around the dam.
We extend our deepest apologies to residents and other affected people for the great problems and anxieties
caused by the floods.
Amehata Dam (in 2009)

At Amehata Dam, we have been removing sediment from the reservoir as amaintenance measure. However, the river bed above the dam rose due to theaccumulation of earth and sand that had entered the reservoir, causing flooding insome areas. We have therefore been taking measures that make the safety ofthese areas the top priority.
Against this background, we have received a grade of A (immediate
improvement measure required) from the regular inspection of the dam by the
Ministry of Land, Infrastructure, Transport and Tourism (MLIT), for four consecutive
years since 2014. After we received notice of the 2019 inspection results, thenational government gave us administrative guidance, directing us to finalize a planfor measures to address the sedimentation problem and to implement themeasures in a well-planned manner to fundamentally solve the problem.
Reference 1 Content of the administrative guidance
Regarding measures to respond to the regular inspection of
Amehata Dam
Notice No. 13 dated August 9, 2019 from the Director of Kofu River andNational Highway Office, Kanto Regional Development Bureau, MLIT
To: Officer of Kambara Complex, Nippon Light Metal Co., Ltd.
Notice from the Director of Kofu River and National Highway Office,Kanto Regional Development Bureau, MLIT
Findings of the regular inspection
Measures to address sedimentation have been taken, but themeasures shall be strengthened and improved to surely reduce theamount of sediment.
A plan for measures to address the sedimentation problem shall befinalized and the measures shall be implemented in a well-planned
manner to fundamentally solve the sedimentation problem.
While abnormalities such as deformation have not been observed,
the amount of sediment has exceeded the sediment storage capacity.
Accordingly, its impact on the dam body, etc. shall be investigated.
We gravely accepted this administrative guidance. To plan measures to fundamentally
solve the sedimentation as soon as possible and to ensure the measures are aseffective as possible, Nippon Light Metal Co., Ltd. established the Amehata Area
Sediment Countermeasures Investigative Commission (the “Investigative
Commission”) together with the MLIT, the Yamanashi prefectural government, and the
Hayakawa municipal government in September 2019. The Investigative Commission
conducted multiple studies regarding emergency measures to address flood damage
in the surrounding area and drastic measures to address the accumulated sediment.
Reference 2 Progress of the Investigative Commission
1st meeting of the Investigative Commission September 3, 2019
1. Purpose for establishing the Amehata Area Sediment
Countermeasures Investigative Commission
2. Overview of the Amehata Dam and the circumstancesthat led to the removal of sediment

3. Issues to overcome and the schedule for the formulationof a sediment countermeasure plan
2nd meeting of the Investigative Commission December 20, 2019
1. Progress in the recovery from Typhoon Hagibis andemergency measures
2. Proposed plan for the removal of sediment
3. Future actions
3rd meeting of the Investigative Commission February 4, 2020
1. Matters that were reported and identified in the previous
meeting
2. Progress in emergency measures
3. Status of the investigations to identify drastic measures
4. Proposed schedule of removal
5. Future actions
4th meeting of the Investigative Commission March 25, 2020
1. Progress of investigations into measures to address
sedimentation in Amehata Dam
2. Matters identified in past meetings and responses tothem
3. Content of the basic plan for measures addressing
sediment in the Amehata area
4. Impact of the sediment on the dam bodyThrough the four meetings of the Investigative Commission that were held byMarch 2020, we received approval for the measures addressing sediment in the
Amehata area from MLIT, the Yamanashi prefectural government, and themunicipal government of Hayakawa Town. Then we submitted the Basic Plan for
Measures Addressing Amehata Dam Sediment, which we finalized, to MLIT.

To begin the implementation of the basic plan immediately, we attachedimportance to the short-term plan (a solution to prevent floods andmudslides) to be implemented in FY2020 and FY2021.
Under the medium-term plan for FY2022 and onward, we will takemeasures such as securing places to dispose of removed sediment byfinding candidate locations where embankments are needed so theremoved sediment can be used as a material to build the embankments,
while continuing to cooperate with the Hayakawa and Minobu municipal
governments, the national government, and the Yamanashi prefectural
government. In addition, the basic plan will be reviewed at eachfollow-up meeting of the Investigative Commission in accordance with
its progress, to formulate and advance feasible measures to securesufficient sediment storage capacity to prepare for the largest ever
inflow of earth and sand.
Further, there are many issues to be studied surrounding Amehata
Dam, including the remarkably large amount of sedimentation comparedto other dams in Japan. Therefore, we will continue to study
countermeasures from a broad perspective to ensure sedimentation stays
at a safe level and take measures to maintain sufficient sediment storage
capacity (continuous countermeasures against sedimentation) byconsulting with other stakeholders at the follow-up meetings of theInvestigative Commission. We have positioned this process as a part of thelong-term plan.
2. Outline of the Basic Plan for Measures Addressing Amehata Dam
Sediment(1) Short-term plan [1st Step]
Period FY2020 to the end of FY2021
Goal

Reference 3 Outline of the Basic Plan for Measures

Addressing Amehata Dam Sediment(April 30, 2020)
1. Position of the Basic Plan for Measures Addressing Amehata Dam
Sediment
Floods have already occurred above the Amehata Dam reservoir.
Therefore, under this plan, we will aim to implement a solution toprevent floods and mudslides as soon as possible and ensure that the
Amehata Dam reservoir can fulfill its functions in the future.
Accordingly, in this basic plan, we divided countermeasures into threestages: a short-term plan [Step 1], a medium-term plan [Step 2], and a longterm plan [Step 3].
This plan that we submitted was formulated with the greatest possible
consideration of the living environment of local residents. It has arealistic target for the amount of accumulated sediment to be removed,
before describing the feasible countermeasures that we formulated.

Contents

Implementing a solution to prevent floods and mudslides(removing accumulated sediment so that the water level will
not exceed the normal water level)
Removal and transportation of the accumulated sedimentthat is predicted to cause floods and mudslides (estimatedamount: 3,000,000 m3)
Emergency measures• Construction of a temporary embankment(2) Medium-term plan [2nd Step]
Period FY2022 to the end of FY2024
Goal

Remove 3,000,000 to 4,000,000 m3 of accumulated
sediment to secure sufficient sediment storage capacity to
prepare for the largest ever inflow of earth and sand.

Contents

Use the sediment (as an aggregate resource, for building
embankments for land development, and for otherpurposes)
Review and implement the continuous countermeasures
addressing sedimentation
Follow-up, etc.

(3) Long-term plan [3rd Step]
Period FY2025 Goal
Contents

Maintain a safe level of sedimentation
Use the sediment (as an aggregate resource, for building
embankments for land development, and for otherpurposes)
Implement continuous countermeasures addressing
sedimentation
Follow-up, etc.

To review the status of the implementation of this Basic Plan for Measures
Addressing Amehata Dam Sediment, on June 11 Nippon Light Metal Co., Ltd. held
the 1st follow-up meeting of the Amehata Area Sediment Countermeasures
Investigative Commission with the MLIT, the Yamanashi prefectural government,
and the Hayakawa municipal government. At the 1st follow-up meeting of theInvestigative Commission, we reported the progress of the measures taken basedon the basic plan.
At Nippon Light Metal Co., Ltd., we will continue to implement the Basic Plan for
Measures Addressing Amehata Dam Sediment steadily with cooperation fromeveryone involved and prioritizing the safety of the area. In the financial results for
FY2019, we recorded an extraordinary loss of 11.0 billion yen as expenses for the
Amehata Dam countermeasures during FY2020 and FY2021.

• Securing a river channel• Temporary use of the inside of the dam lake for theconstruction of embankments to protect the prefecturalroad, to construct a temporary road, and for other purposes
Drastic measures• Increase the capacity of the belt conveyor to discharge
sediment below the dam• Use the sediment (as an aggregate resource, for constructing haul roads in rivers, for building embankments for landdevelopment, and for other purposes)• Review the continuous countermeasures addressing
sedimentation
Follow-up, etc.
Temporary embankment under construction(in July 2020)

8 Corporate Social Responsibility Report 2020

Nippon Light Metal Holdings Co., Ltd. 9

Feature Shimbashi Relocation Project

Close in, Team NLM!
— Collaborating to move to a higher level —Once we settle into our home, it makes us feel at ease, with thefamiliar rooms and people around us. When we return home, it
calms us down. Our homes are irreplaceable, even if it is a bit old
and far away and there are some inconveniences. This is an officestory.
Ichiro Okamoto’s ideas were different than that.
“We have been operating in this place for 23 years. The
equipment is aging, and the office is inconveniently located far
from the center of Tokyo. More than anything, do business
partners and people from the group want to have to change to themonorail to get here? Can we come up with new ideas if we are
surrounded by documents and see the same people every day?”I want to create a workplace where people with diverse
backgrounds create product value through friendly competition.
The valuable collaborations that determine our survival should becreated through bustle that includes dissension, allowing us totransform the NLM Group into a vigorous corporate entity that
does not fear change.”
This desire led Okamoto to decide to relocate our head office in
October 2018.
“Complete the relocation by December 2019,” he ordered us.
Shimbashi is our new address. Unexpectedly, this location was
where Nippon Light Metal Co., Ltd. established its head officewhen it was founded.
Three major policies were indicated.

1. Improve collaboration within the group.
2. Improve communication within the group.
3. Secure a sufficient, comfortable office space.

The implementation of these policies was entrusted to elevenmen and six women between their twenties and their forties.
The selection of these 17 people reflected Okamoto’s belief that
future work styles must be considered by young employees.
This way, the project to relocate the office to Shimbashi began,
growing to involve 1,000 people from 18 group companies whose
offices were located in Tokyo.
As they began, the members faced significant challenges.

Ten of the seventeen project team members

As they began, the members faced significant challenges.
More than anything, time was limited. “It is impossible to relocate
a head office this large in only one year.” The consulting firm’s
contact persons did not hide their surprise.
The space was not large enough. While the new office is nearly
10% smaller than the previous office, the plan would increase
the number of people by 30%. If they all simply gathered there,
the office would be jam-packed. It would be far from comfortable.
The space was far too small.

Further, all of the 1,000 people would not always be in the officebecause the sales staff spend long hours outside the office, andthere are always staff who are away on business trips or on leave.
However, as long as they are a part of the companies, they needdesks. The problem was the assigned desks. It was decided that
fixed desk assignments would be ended, enabling staff to work
anyplace in the office they wished. The introduction of Activity Based
Working (ABW)1 increased opportunities to communicate, giving it adual purpose. While ABW had been introduced in individualcompanies, what would happen when employees from multiple
companies of the same corporate group were free to choose where
to work in the same area was unknown. On top of this, officers were
not going to be the exception. They were to have no desks of theirown, with no typical desks for senior staff in the plan. This
arrangement was intended to create a space shared by all of thepeople, beyond boundaries of age, position, and company. Only thisteam could come up with this idea and make that choice.
This made them think that the locker rooms were also a wasteof space. They would be rarely used, except in the morning andevening. No uniform, no locker room. Thus, the Everyday Casual
dress code was introduced.
The problems of time and space were solved in these ways, andthe focus was shifted toward initiatives embodying the major policies.
A hot desking system was introduced. It does not matter who sits inwhich seat. Rather, they are prohibited from using the same desk again
and again. They do a variety of tasks in their jobs. They need desksthat facilitate communication, where they can concentrate on creating
materials or thinking about things, desks where they can stand andwork, and even desks for not working. To give them options to choose
from according to their needs, different types of chairs, desks, andtables, 20 types each, were prepared. They were arranged vertically,horizontally, diagonally, in circles, and in squares. Project members
also paid a lot of attention to the carpets, walls, and ceilings. They
designed these elements based on concepts created for each floor.

They solved the time problem by transferring more authority.
There was a mountain of matters to be determined, such aslayout, design, and equipment. If those matters were to be
determined through meetings one by one, the project could never
be completed in one year. Therefore, the project team was left todetermine how to use the budget, on the condition that they would
not go over budget, which saved a significant amount of time.
Various measures were devised to solve the space problem.
First, they focused on documents and cabinets. Extra space would
be created by reducing the number of cabinets, which were
crammed into the office. To do this, reduce the documents.
A serious effort to go paperless began. The height of all the
documents piled up was 6,000 m. That is equivalent to 1.6 times
the height of Mt. Fuji. Is it really necessary to have this many
documents? They were disposed of or computerized. The mastercopies that were absolutely necessary were moved to thewarehouse. A system for same-day deliveries to the warehouse
was also quickly created. As a result, the height was cut to 600 m.
The 90% reduction created 1,000 m2 of space.

A communication space on the floor for a diverse range of activities

The corporate cafeteria is an important place for communication.
They aimed to create spaces and services which enable staff andguests to relax. The office cafeteria was placed on the highest floor
that we rent. To reduce queues, a cause of stress, before eating, it
was decided that payments should be made after eating. This space
was designed to allow people to gather at any time of the day. It
serves breakfast, can be used as a cafe, and in the evening becomesa venue for parties where people can enjoy craft beer, and of course
it serves lunch. It was the venue for this year’s New Year’s greeting.

6,092

The Building that contains the Shimbashi office of the NLM Group

10 Corporate Social Responsibility Report 2020

Fact-finding survey Interim measurements

611
Final plan

Wall mural and art that welcomes guests

The implementation of the project abolished all sorts of old
customs and incorporated elements that were created by taking
on new challenges for the future. It was completed in December
2019, when 1,000 people from group companies in Tokyo
gathered there. As a bonus, the new office allows us to reduce
costs by at least 6%.
While this success is attributed largely to the project team,the efforts of the Team NLM members, who accepted, joined, andtook in all of these drastic changes must also be appreciated.
Fixed phones and feature phones were replaced withsmartphones. Desktop PCs were entirely abolished, and anotebook computer was issued to each person. Face-to-facemeetings are not the only means of communication. Online chatand video conferences also enable communication and theexchange of information. Meetings are held online using
smartphones and computers. New IT tools were introduced one
after another, creating an environment that requires us to use
these tools to work. Everyone began adapting to this newenvironment, without being negative, even though there weresome differences in how fast they were able to adapt.
Ground rules were also established. Those rules are quite
simple. The first rule is about clean desks. Don’t leave anything,even bacteria, on a desk for the next user. When we have finishedusing a desk, wipe it with alcohol to make sure it is clean, and ourwork is done. It goes without saying that this rule has worked out
well, as the COVID-19 pandemic began just months later. The
reduction of documents and the introduction of IT facilitated thetransition to remote working, including work from home.
Ground rules
1. Clean desks

4. IT tools

2. Personal/shared lockers and cabinets

5. Meetings

3. Task-based selection of working location

6. Greetings, honorifics, and others

Now we have an environment that fully and comfortably facilitates
the improvement of communication and collaboration. Moving
forward, we will make the new office our base for the creation of
new value as Team NLM moves beyond the boundaries between
companies, divisions, and positions while adopting new lifestyles
that help control COVID-19, including the avoidance of the 3Cs(closed spaces, crowded places, and close-contact settings). Look
forward to Team NLM’s leap forward into the future.

Change in the amount of documents in meters

1,535

The project members paid even greater attention to the spaces
for welcoming guests. In front of the elevator on the 9th floor,
where the receptionist’s office is located, guests are welcomed bya wall mural depicting our production site, which is the source ofour value and the group’s history. And at the back of the wall muralis the HINT-BOX,2 where we introduce our new assets.
This is the secret base of Team NLM. Here, we stage encounters
between guests and the new Team NLM. You are welcome to visit
this space and experience the new Team NLM for yourself.

ISLE, the relaxing office cafeteria*A system enabling employees to accomplish more creative achievements,
where they are free to choose where and when to work.
*The secret base of Team NLM. This is the NLM Group showroom, where we
introduce Group products and services, the value they provide, and thetechnologies and expertise behind them, from a unique perspective.
Nippon Light Metal Holdings Co., Ltd. 11

Feature Our response to COVID-19

the task force and provided to all workplaces and employees of the NLM Groupthrough predetermined methods. These methods include e-mail, posting theinformation on the intranet and digital signage.

Initiatives for the prevention of
infection and business continuity

5. Map the hazards of all operations and covering all jobs.

. POLICY, PLANNING AND ORGANIZING
1. Develop and post a statement of management’s commitment andresponsibilities to reduce the risk of exposure to the virus and transmissionof COVID-19 at the workplace in consultation with worker representatives.
2. Develop a preparedness and response plan for COVID-19 prevention at
workplace, considering all work areas and tasks performed byworkers and potential sources of exposure.
At the NLM Group, we have set up a COVID-19 task force that is headed by thepresident of Nippon Light Metal Holdings Co., Ltd. (NLM HD) and responsible for
infection prevention overall and business continuity. We determined themeasures that are necessary, informed the employees of group companies(including temporary staff and the employees of contractors; the same applies
hereinafter), and implemented the measures. When necessary, we consulted thelabor union when setting up the task force and implementing the measures.
Figure: Organization of the COVID-19 task force (Established on March 9, 2020)
Group companies and divisions(including overseas ones and plants)
Organization

Infection control team
General affairs unit

Chief
(President of NLM HD)

PR & IR unit

Planning infection control
measures and raisingawareness
Formulating plans to purchase
Occupational equipment to control infection
and managing the equipment
safety andCooperating with occupational
health unit
physicians and the healthinsurance union
Responding to public institutions(Ministry of Health, Labour and Welfare,public healthcare centers, and others)
Purchasingunit

Responding tomass media andother external
parties

Purchasing equipment
to control infection
Supporting suppliers

Information Maintaining the functions
system unit of information systems
Business operation team

Organization

Duty

Planning unit

CSR unit

Coordinating BCP

Accounting
unit

Risk financing(funding and payment)

Checking the status ofgroup companies andserving as the contact
office for groupcompanies

Group companies and divisions(including overseas ones and plants)

3. Regularly consult your occupational health services, local publichealth authority or other partners, which may have developed
information materials to promote workplace prevention of risk of
exposure to the virus and other technical advice.
To obtain expertise on the prevention of infection, we regularly collect informationfrom the government, an expert panel on COVID-19 measures, the National
Institute of Infectious Diseases, public health centers, industrial physicians, and othersources. The information we collect is reflected in the countermeasures that we take.

4. Establish a workplace system for providing up-to-date reliable
information to workers on the emerging situation on COVID-19, withreference to information released by national or local health authorities.
Information obtained from the national government, municipal governments,
public health centers, specialized institutions, and other sources is collated by
12 Corporate Social Responsibility Report 2020

9. Develop a plan of what to do if a confirmed or suspected case of COVID-19
is identified at the workplace that includes among others reporting,monitoring, and disinfection in line with the national guidelines.
If a confirmed or suspected case of COVID-19 is identified at a workplace, we
follow the manual we have adopted laying out the steps necessary to handle aninfection. When disinfecting a workplace where an infection has been identified, we
follow our disinfection guidelines (which include guidelines on the proper use,maintenance, and disposal of disinfection tools). To prevent the spread of infection,
we use a survey when conducting our own close contact tracing. We created thesematerials with reference to reliable guidelines that we obtained through theinformation collection mentioned in section 3. above section.
Our manual laying out the steps of handling an infection

Case
The risk of infection is high in the rest areas at our production
sites because employees use these spaces together to eat, chat, or havebusiness meetings. In response to this, we ventilate the spaces more
frequently, have abolished face-to-face seating arrangements, and have
employees take turns taking breaks to reduce the number of people who use
the spaces at the same time.

7. Promote teleworking for non-critical workers to minimize thespreading of COVID-19 in your workplace.
We encourage all of our office workers to work from home. At our head office,80% of employees succeeded in teleworking when the local area was at risk.
We continue to pursue improvements of the work system and the use of ICT
tools as solutions to the jobs that cannot be done from home.

8. If teleworking is not feasible introduce shifts to avoid large
concentrations of workers in the facilities.
Because teleworking is impossible for the majority of workers at our production
sites, they are as crowded as usual. To avoid this, employees in charge ofengineering or management, who are not directly involved in production, work in
staggered shifts using flexible working hours and in partitioned offices.
In addition, we have employees take turns using corporate cafeterias and rest
areas by setting time limits and the maximum number of employees who can use
them at the same time.
Case
Example: At lunch, you enjoy not only your meal but also theconversation with your colleagues. However, if many employees eat together,
the place will be crowded, putting them at risk of infection. Therefore, we haverearranged cafeteria tables and chairs in a way that all users will face the same
direction while being seated. We also set time limits to enable them to take turns
using the cafeteria. In addition, we have also asked employees to eat lunch silently.

We did not have an opportunity to train the personnel who actually implement themeasures for handling an identified COVID-19 infection. However, this did not causemuch confusion because we had established steps to handle other infections, such as
influenza or norovirus, and had trained personnel to implement these measures. So far,
we have had no infections of disinfection personnel, infections of groups, or similar cases.

14. Inform workers that each has a right to remove from a work
situation that poses imminent and serious danger for life or health,in accordance with national law and laid out procedures andimmediately inform their immediate supervisor of the situation.
Each individual employee has the right to remove themselves from a work situationor environment that poses an imminent danger for their life or health at their own
discretion. This is an important occupational safety and health rule at the NLMGroup. Beginning during new employee training, we train our employees thoroughly
and repeatedly to ensure they are aware of this rule. In addition, if a situation
posing an imminent danger to life or health has been identified, employees willremove themselves from the situation and report it to their immediate manager. The
report will immediately be sent to people related to occupational safety and health,including the president of NLM HD, and the responsible people at all businesslocations of the group, all at once via the Simultaneous Emergency-Alert System.1

Safety and Health Regulations (Excerpt)
Appendix 512 Training Items(1) Training upon purchase of new equipment or change of work procedures.
1. Danger or toxicity of machines, etc., or raw materials, etc., and methods of handling thereof
2. Performance of safety devices, harmful substance control devices, or of personal protective
equipment and methods of handling thereof
3. Operation procedures
4. Inspection at the time of commencement of work
5. The causes and prevention of diseases of which workers are susceptible related to the work concerned
6. Housekeeping and maintenance of sanitary conditions
7. Emergency measures and evacuation at the time of an accident
8. Other matters necessary for maintaining safety and health related to the said work

Measures for preventing infection, which are aimed at protecting the safety andhealth of our employees, are incorporated into our business continuity plan.
The plan includes the improvement of work conditions and a staffing plan for
implementing these measures.
Case
Some employees try to continue working even when their
physical condition is not good. This is not good for the prevention of infection,
too. We need to ensure these employees return home immediately or havethem stay at home to heal or monitor their condition. To prevent employees
from being unpaid when they can’t come into the office, we have had
employees, including those working at our production sites, work from home.
Our employees understand that this way of working will produce results which
are good from the perspective of business continuity as well.

13. Train management, workers and their representatives on the adopted
measures to prevent risk of exposure to the virus and on how to act in case of
COVID-19 infection. For high-risk workers, the training should include thecorrect use, maintenance and disposal of personal protective equipment (PPE).

1 Rules and information-sharing system to inform management and related people about anincident immediately and all at once in the event of an emergency such as a workplace injury,
quality complaint, fire/explosion accident, or natural disaster6. Integrate safety and health into your contingency and business
continuity plan and consider other labour related requirements
including where operations must be done with a reduced workforce.

management guidelines

Secretariat of task force

Operating the task
force
Coordinating
information fromexternal sources

Duty
Checking for infection among
employees
Personnel (in Japan and other countries)
affairs unit Formulating attendance

We have identified jobs involving close contact with people, jobs done face to face,jobs done in environments where social distancing is difficult (including commuting
and travelling), and other high-risk tasks and environments. We have implemented
measures to eliminate or mitigate these risks. The main measures we have taken
are as follows.
Remote working: We have employees work from home or at satellite offices.
Eighty percent of all employees have worked in this way. Further, we introduced
online meetings and online chat meetings.
The reduction of opportunities to be in close contact with others: We implemented
measures including staggered commuting, office partitioning (splitting offices into
multiple sections), partial/overall suspension of the hot desking system, aprohibition of business trips, and a prohibition of dinner gatherings.
Postponement of events: We cancelled or postponed meetings, training
sessions, and events at which many people gather.

Case
Use of public transportation is recommended as a means ofcommuting because it reduces the risk of commuting disaster and CO2
emissions. However, travelling on a jam-packed train or bus for nearly twohours in total every day increases employees’ risk of infection and their stressfrom anxiety. Therefore, we have exceptionally permitted employees tocommute by private car even if they do not fulfill requirements for thepermission (work hours and commuting time).

10. In line with national standards, expand access to paid sick leave,
sickness benefits, and parental/care leave and inform all workers.
Employees who are infected or suspected to be infected are allowed to take unpaid
sick leave or annual paid leave pursuant to the labor standards law and our rules of
employment. Employees are allowed to work from home if they feel sick, aresuspected to have had close contact with an infected person, or otherwise needmonitoring of their health condition. This rule also applies to employees working at
our production sites. Information about these measures is provided by the task
force and the personnel affairs division. It is also posted on the intranet, on digital
signage, and in other locations to ensure employee awareness.

11. Establish a monitoring and evaluation mechanism of the
COVID-19 prevention strategies and plans.
Measures for infection control and business continuity and the status of theirimplementation are reported to the Board of Directors every half year and whenotherwise appropriate.

. RISK ASSESSMENT, MANAGEMENT AND COMMUNICATION
12. Assess the risk of potential for interaction with workers, contractors,
customers and visitors at the workplace and contamination of work
environment, and implement measures (see section III).
We prevent infections in the workplace by assuming that there is transmission
not only between employees but also to, from, and between all visitors, including
customers, suppliers, government employees, and local residents.

15. Assist delivery workers, truck drivers and other transportation workers tominimize the direct contact with customers and ensure personal hygiene
practices such as hand washing and use of hand sanitizers. Consider providing
personal protective equipment if workers are in direct contact with clients.
For the drivers of trucks transporting our products, etc. (including employees,
temporary staff, employees of contractors, and those of our suppliers), we takemeasures including the provision of face masks, distribution of mobile phone
disinfectants and protective gloves, and the taking of body temperatures before
beginning work. In addition, we strive to reduce the contact that the people delivering
documents, letters, and other items have with other people through measures
including the introduction of methods of accepting and delivering items that avoid
direct contact, the reduction of service hours, and the decrease of delivery frequency.

16. Travel should be avoided if not essential. Assess risk of COVID-19
infection when business travels are planned (for all the phasesof travel and job assignments).3
We have banned overseas travel, including travel by expatriates and their families.
Non-essential domestic business trips shall be cancelled following the travel restrictions
imposed by the government of each country we operate in. Approval from the officer incharge and the responsible person from the personnel affairs division is necessary forurgent, important business trips. We have enhanced our web conferencing system toenable employees to hold online meetings in lieu of business trips for meetings.

17. Maintain regular communication with workers and workers’ representatives,
including over the internet, or when not possible, over the phone.
We share information with the labor union about infection prevention and business
continuity measures at monthly face-to-face meetings, which are held while taking
sufficient measures to prevent infection. Matters involving changes to labor conditions
are discussed with the labor union in advance and implemented by mutual agreement.

Nippon Light Metal Holdings Co., Ltd. 13

Feature Our response to COVID-19

18. Assist workers to manage any emerging psychosocial risks,
new forms of work arrangements, and in the promotion andmaintenance of healthy lifestyles including diet, rest andsleep, exercise and social contacts with friends and family.
We support our employees so that they are able to establish new work styles which
are adapted to the changes brought about by new risks as quickly as possible. We
are pursuing more flexible work styles because risk tolerance and sensitivity levels
differ from employee to employee. They include matters related to the promotion
and maintenance of healthy lifestyles including diet, rest and sleep, exercise andsocial contacts with friends and family, in addition to work arrangements.

. PREVENTION AND MITIGATION MEASURES
19. Organize work in a way to allow for physical distancing of atleast 2 meters (6 feet) from other people or another distanceas prescribed by the relevant competent authority.
Based on information collected from the sources mentioned in section 3. above,
employees are required to keep a physical distance of at least 2 meters (6 feet) fromother people, in principle. To enable employees to maintain this distance, we havethem take turns using locations where many people normally gather and minimize thenumber of participants at events in these places. When it is impossible to maintainphysical distancing under unavoidable circumstances, we take measures such as thewearing of face masks, the prohibition of face-to-face seating, the establishment oftime limits, the limiting of the number of people, and the installation of partitions.
Every year, our general meeting of shareholders is attended bya large number of shareholders and its venue is filled to capacity. In FY2020,
we requested that our shareholders refrain from coming to the meeting venue.
On the day of the meeting, we prepared a second venue to enable social
distancing between attendees. The meeting held in the first venue wasbroadcast live online.

The Environment

Case
Ground Rule No. 1 at the Shimbashi office is “Clean desks.”
This rule was created in response to the hot desking system, which was
implemented based on the idea of Activity Based Working. While employees
are free to use any desk on any floor, they must clean desks and chairs afterusing them, for the next users. ( p.11)

24. Improve exhaust ventilation and provide more clean make-up air
to rooms and operations with high risk of exposure to the virus.
We ventilate rooms that have insufficient ventilation by opening windows anddoors regularly. We also use circulators and electric fans for the forced ventilationof places with insufficient natural ventilation.

25. Promote and communicate good respiratory hygiene at theworkplace, such as covering your mouth and nose with yourbent elbow or tissue when you cough or sneeze.
To prevent the spread of droplets from coughs and sneezes, we require that
employees wear face masks at work, in principle. The company supplies facemasks to employees who don’t have them.

26. Ensure social distance at the workplace and remain out of“congregate settings”4 as much as possible.
In accordance with government guidelines and advice from experts, we strive to avoid
the 3Cs (closed spaces with poor ventilation, crowded places with many people, andclose-contact settings where people talk up close) in workplaces as well.

We recommend that meetings, events, and training sessions are held online.
When face-to-face meetings or similar events must be held under unavoidable
circumstances, permission is given only when all of the following requirements
are fulfilled. 1. All participants of the meeting, etc. shall wear face masks. (Thecompany shall provide them for those who do not have them.) 2. The good
physical health of the participants shall be confirmed, and no one in bad healthshall be permitted to attend. 3. A physical distance of approx. 2 meters shall be
kept between participants of the meeting, etc. 4. The duration of the meeting,etc. shall be limited to 60 minutes.

21. Provide staff, customers and visitors with ample and easily accessible
places where they can wash their hands with soap and water, disinfecthands with sanitizers, and in addition, promote a culture of hand washing.
22. Put sanitizing hand rub dispensers in prominent places around theworkplace and make sure these dispensers are regularly refilled.
We have increased the frequency of refilling soap dispensers in restrooms toensure that all employees and visitors are able to wash their hands with soap
and water at anytime. In addition, we have placer hand sanitizers at entrances,offices, corporate cafeterias, rest areas, and other places to enable people todisinfect their hands with alcohol at anytime. We regularly refill sanitizers toprevent them from being empty. We also have sufficient quantities of disinfectant
in stock to ensure that we will not run out.

23. Promote a culture of regular wiping of desks and workstations,doorknobs, telephones, keyboards and working objects withdisinfectant and regularly disinfect common areas including rest rooms.
Surfaces frequently touched should be cleaned more often. Dependingon the operations, consider hiring cleaning and disinfecting services.
We put disinfecting alcohol wipes in each office. Employees are obliged to wipe
the desks and chairs they use before they return home every day. We issue one
telephone and one computer to each employee. We have shared furniture,
fixtures, and equipment wiped by cleaning service providers regularly. This is also
true of communal areas, including restrooms.
14 Corporate Social Responsibility Report 2020

Environmental management system

Environmental accidents and emergency responses

At the NLM Group, we fully recognize the impact that our businessactivities may have on the environment. We have developed anenvironmental policy, under which we are taking initiatives torealize sustainable businesses and a sustainable society voluntarily
and proactively, beyond complying with related laws andregulations.
The NLM Group Environmental Committee deliberates anddecides on the core measures related to the group’s environment
management. The committee is chaired by the president of Nippon
Light Metal Holdings Co., Ltd., and consists of company officers,
presidents of major NLM Group companies, and other members.
Matters determined by the Environmental Committee are fleshedout by the environmental control segment, which serves as thecommittee’s secretariat, and are made known at meetings ofenvironmental practitioners from each site* before actions aretaken.

At the NLM Group, we have developed and operate a quick
reporting system in Japan and overseas to respond promptly toenvironmental problems.
In FY2019, there were no lawsuits, fines, or forfeits related to theenvironment. There were three environmental accidents (twoaccidents in Japan and one at an overseas site).
We received ten complaints (five complaints in Japan and five atoverseas sites) about noises, odors, or similar issues from local
residents. For each complaint, we have taken measures to prevent
its recurrence with the cooperation of the people from the site andthe environmental control segment of the group while
communicating with the person who lodged the complaint.
Further, we also collect information about measures taken at allsites of the group to prevent similar issues and share the measurestaken at each site across the group, as a part of our efforts to
reduce risk.

* Sites: Boundary of application of the environmental management system

Environmental management system

Case

20. Avoid face-to-face meetings, giving preference to phone calls,
email or virtual meetings. If you need to organize meetings,
organize the space to allow for physical distancing.

Tackling the climate change problem tobuild a sustainable society

27. Provide appropriate facemasks and make available paper
tissues at worksites, for use by those who develop a runnynose or cough, along with closed bins for hygienicallydisposing of them.

President of Nippon Light Holdings Co., Ltd.

Face masks are provided at worksites, for use by those who develop a runny noseor cough. Paper tissues are available in restrooms and offices. These places arealso equipped with closed bins for hygienically disposing of them.

Person in charge of environmental protection
from the Central CSR and Audit Office

Number of environmental troubles that occurred(cases)16

Board of Directors of Nippon
Light Metal Holdings Co., Ltd.
Group Executive Committee
Operation

Environmental Committee(Chair: President of Nippon Light Metal Holdings Co., Ltd.)

Control. ARRANGEMENTS FOR SUSPECTED AND
CONFIRMED COVID-19 CASES
28. In line with the local authorities guidance, encourage yourworkers with suspected symptoms of COVID-19 not to cometo the workplace and to follow the guidance of the local
authorities.
Employees with poor physical conditions or suspected symptoms of COVID-19
must return home and remain there. When remaining at home, employees mayeither work from home or take annual paid leave or unpaid sick leave.

29. Advise workers to call their healthcare provider or the local
public health department when they have serious healthcondition including trouble breathing, giving them details of
their recent travel and symptoms.
Employees who have a serious health condition, including trouble breathing, areadvised to call and consult the Call Center for Japanese Returnees and Potential
Contacts or their personal physicians. Before and after a PCR test, it is also
requested that they cooperate with surveys conducted by the company, includingones that review their most recent activities and the people who have had
contact with them. If an employee has tested positive, we submit the results ofour surveys and other necessary materials to the local public health center.

30. Arrange for isolation of any person who develops COVID-19
symptoms at the work site, while awaiting transfer to an
appropriate health facility. Arrange for disinfection of the worksite and health surveillance of persons who have close contact.
If any employee in a work site becomes infected with COVID-19 or has had/issuspected to have had close contact with an infected person, we isolate the employee
appropriately and disinfect the work site. We require that employees who have had
contact with the employee and those who work in the same workplace return homeand stay there to monitor their health condition. They are to remain at home until thetest results of the employee that is suspected to be infected are obtained.

Group companies’ sites

Meeting of environmental practitioners* 47 sites of 25 companies in total (scope of environmental management inJapan)

Complaints

Accidents

12
8

11

4
0

16
4

10

10

3

3

0

0

2015

2016

2017

2018

3
2019 (Fiscal year)*1 Complaints: Number of complaints (about odor, noise, or the similar event)lodged by external parties*2 Accidents: Environmental issues that have an impact outside the site (suchas leakage of oil or chemicals)

Environmental audits
At the NLM Group, the environmental control segment of thegroup conducts regular environmental audits of 60 sites in Japanand other countries. Points checked in environmental audits
include the status of compliance with laws and regulations, system
for handling emergencies, training given at each site, and initiatives
taken to save energy and preserve biodiversity.
In FY2019, environmental audits were conducted at 19 sites inJapan and seven overseas in China, Thailand, and North America,and 71 problems were identified. The problems include failures tofulfill industrial waste management standards, such as insufficientsignboards and partitions in storage sites, and insufficient waste
information provided to waste disposal contractors. Corrections
were made accordingly. It was also pointed out that proceduresfor handling emergencies, such as oil leaks, had yet to beestablished. This was corrected by implementing a regular training
program and making it a rule to keep a record of training. Further,in response to one of our plants leaking chemicals outside of itself,
we investigated the countermeasures taken at other sites withsimilar equipment and incorporated them into environmental
audits. Corrections for all 71 problems have been completed.
Problems identified in environmental audits are shared at meetingsof environmental practitioners to reduce environmental risks.

Environmental audits (Left: Kambara Complex of Nippon Light Metal Co., Ltd.;
Right: Nikkei Siam Aluminum Limited (Thailand))

TOPIC Improvements to prevent the leakage of caustic soda
(Sodium hydroxide solution)(Nikkei Extrusions Co., Ltd.)In October 2019, an accident occurred at the Okayama Plant
of Nikkei Extrusions Co., Ltd. An alkaline liquid spilled into an
adjacent river. The spilled liquid was collected immediately,
which prevented major damage. The Okayama Plant of Nikkei
Extrusions Co., Ltd. and the environmental control segment of
the group worked together to analyze the cause of theaccident and to study and implement measures to prevent its
recurrence. The accident was found to have been caused byan error in repairs and the absence of dike at the plant’s
boundaries, among other factors. As countermeasures, werevised the steps involved in repairs and installed a retaining
wall extending about 100 meters at the plant’s boundary withthe river. Further, an improvement was also made to the way
the chemical is transported. Previously, an approx. 100-meterlong pipe was used to send the chemical from the tank to theequipment which uses it. As an improvement measure, a newchemical tank was installed close to the equipment, and thepipe was removed. This has reduce the risk of the chemicalleaking from the pipe.

BeforeAfter the installationof the dike

New caustic soda tank

Nippon Light Metal Holdings Co., Ltd. 15

The Environment

Initiatives addressing noises, odors, and fumes
At the NLM Group, we take action to prevent noises, odors, andfumes.
To prevent noise, we have repaired uneven sections of passages
to reduce the noise that occurs when forklifts pass over them. We
have also changed the way we purchase aluminum materials. We
now purchase materials in flexible container bags, to reduce noise
when handling the materials.
For several years, Nikkei MC Aluminum (Thailand) Co., Ltd. hasreceived many complaints regarding odors and fumes from othercompanies in its area. The suspected cause was the leakage ofodors and fumes generated in the aluminum melting process,odors from the cutting oil that adheres to aluminum materials in
the materials yard, and the mixture of these odors that affected thesurrounding companies. In response, we took equipment
improvement measures during FY2018 and FY2019. They include
the replacement of a large dust collector with one that has agreater dust collecting capacity, the optimization of the amount of
deodorizer sprayed through the improvement of spray equipment,
and the prevention of odor leaking from the aluminum materials
yard by reducing its openings. In addition, we replaced the
deodorizer with one that is appropriate for the causes of the odor.
As a result, the number of odor complaints fell to five in FY2019.

Development of environmental human assets
At the NLM Group, we run various training programs to develop
environmental human assets in accordance with the nature of thework at each site.
Initiatives for developing human assets in FY2019
Encouragement to acquire public qualifications related to theenvironment
Regarding employees’ acquisition of public qualifications related
to the environment, we check the ages of our existing employees
who have these qualifications to ensure that we will have asufficient number of certified employees over the long term. At
sites with a small number of qualified employees, we encourage
employees to acquire qualifications during environmental audits
and similar opportunities.
Training session on laws and regulations (held twice a year) todevelop environmental practitioners
Training sessions on laws and regulations were held under thethemes of the Soil Contamination Countermeasures Act and the
Waste Management and Public Cleansing Act, in considerationof their importance as laws and their level of influence.
Participation in environmental audits
To improve the skills level of environmental practitioners, we hadthem participate in the environmental audits of other sites asauditors. They learned how to look at and walk around sites, key
points for identifying issues, key points of countermeasures, andother environmental management activities on site. In FY2019, a
total of 34 environmental practitioners from 27 sites (rate ofparticipation 126%) participated in the environmental audits.

The Dust collector (left) and deodorizing equipment (right) of Nikkei MC Aluminum(Thailand) Co., Ltd.

Training to develop ISO 14001 internal auditors
We hold a training session to develop ISO 14001 internal
auditors once a year, to give as many employees as possible an
opportunity to look at the fields they work in from the viewpointof environmental protection. In FY2019, 22 employees attended
the session.

Greenhouse gas emissions
Greenhouse gas emissions (Scope 1 and Scope 2) from the NLMGroup in FY2019 decreased by 154 thousand tons CO2 (17%)
year-on-year, to 731 thousand tons CO2.
Emissions in Japan included in the above were 606 thousand
tons CO2, down 142 thousand tons CO2 year-on-year. This mainlyreflects a reduction of energy consumption attributed to reduction in
production and the decline of the CO2 emission factor for electricity,in addition to the reduction attributed to energy saving activities.
Overseas greenhouse gas emissions remained almost
unchanged from the previous year, at 125 thousand tons CO2.
Scope 3 emissions decreased by 251 thousand tons CO2
year-on-year, to 1.773 million tons CO2. This reflects a reduction of
raw material purchases attributed to reduction in production.
Scope 1

Scope 2

768
481

796

804

511

513

0

748
462

600

606
328

400
291

286

278

2015
2016
2017
800
(Thousand tons CO2) Overseas
Scope 1

2018

2019

287

200

285

1,000
0

(Fiscal year)

Scope 2

600
400
200

135

125

137

125

64
63

62
73

55
70

70
67

62
63

2015

2016

2017

2018

2019

127

0

3

2.09

2.19

2015

2016

2.09

1.82
1.87

1.60

Target

1

1,000
800

Greenhouse gas emissions per unit of sales (Japan)(Tons CO2/million yen)

2

Greenhouse gas emissions (Scope 1 and Scope 2)(Thousand tons CO2) Japan

Initiatives for reducing greenhouse gas emissions(reduction targets and results in Japan)
At the NLM Group, we aim to reduce the greenhouse gas
emissions per unit of sales to 1.82 tons CO2/million yen by FY2030
as a part of our voluntary action plan to reduce greenhouse gas
emissions.The result for FY2019 was 1.60 tons CO2/million yen.
This mainly reflects our energy saving activities, a reduction ofenergy consumption attributed to reduction in production, and thedecline of CO2 emission factor for electricity.

(Fiscal year)

2017

2018

2019

2030 (Fiscal year)

Initiatives for saving energy
Our energy consumption in Japan in FY2019 decreased by 2.3 PJ(16%) year-on-year, to 11.6 PJ.
At the NLM Group, we have established an energy conservation
task force, which consists of qualified energy managers from major
sites. This task force advances initiatives to manage and saveenergy. Initiatives taken in FY2019 include the reduction of steam
consumption achieved by downsizing equipment, the replacementof equipment with more energy-efficient equipment, the efficientuse of heat through the insulation of various pieces of equipment,
and the reduction of steam consumption through the reuse of the
hot water generated in the manufacturing process. These initiatives
are shared by members of the energy conservation task force andapplied horizontally within the group. We have also begun topromote energy saving activities by having members of the task
force participate in environmental audits and visualize activities
using IoT equipment.
Energy consumption (Japan)

Greenhouse gas emissions including Scope 3 emissions (FY2019)

Environmental targets and FY2019 results (Japan only)
Evaluation Legend -Action item

Energy saving activities
and countermeasuresagainst global warming

Air quality control

Water quality control

Waste reduction andrecycling(Thousand tons CO2)
: Achieved,

Medium-term target (Japan)

Greenhouse gas
emissions1

2030

Greenhouse gas emissions per unit of sales at
1.82 tons CO2/ million yen

1.60 tons CO2/million yen

Energy consumption

2020

12 PJ5/year or less11.6 PJ/year

SOx2 emissions

2020

350 tons/year or less

326 tons/year

NOx emissions

2020

370 tons/year or less

362 tons/year

COD4 emissions

2020

110 tons/year or less95.4 tons/year

Total amount ofdischarged water2020

27 million m3/year or less21 million m3/year

Emissions2020

32 thousand tons/year or less43.9 thousand tons/year

Disposal (landfill)2020

3 thousand tons/year or less

2.3 thousand tons/year

2020

Number of PRTR substances at 24 or less

24 substances

3

Chemical management

1 Concerning calculations of greenhouse gas emissions, see the note to the next section, “Greenhouse gas emissions.”
2 SOx: Sulfur oxides
3 NOx: Nitrogen oxides
4 COD: Abbreviation of Chemical Oxygen Demand
5 PJ: Petajoule, a unit of energy (1 PJ = 1,000 TJ = 1015 J)

16 Corporate Social Responsibility Report 202013%

: Initiatives being taken, ×: Not achieved

Target year

FY2019 result

Evaluation

Category 2 to 7

16%

16.0

13.3

14.2

14.6

13.9

12.0
Scope 3

2,504
71%

Scope 1

(PJ)
20.0

Scope 2

11.6

8.0

1,773

4.0

Category 1

0.0

2015

2016

2017

2018

2019

(Fiscal year)

Scope 3

Scope 1: Direct greenhouse gas emissions (such as from the combustion of
kerosene or heavy oil)
Scope 2: Indirect greenhouse gas emissions attributed to the use of energy
including electricity
Scope 3: Indirect greenhouse gas emissions from the supply chain
Boundary: All 31 manufacturing subsidiaries of the consolidated subsidiaries inJapan
All 14 manufacturing subsidiaries of the overseas consolidated
subsidiaries* The following CO2 emission factors were used for the calculations.
Electricity consumed in Japan: The CO2 emission factor with T&D losses ofeach previous fiscal year announced by theElectric Power Council for a Low Carbon
Society
Electricity consumed overseas: CO2 emission factors of the respective
countries shown in CO2FCOMB 2017 fromthe IEA
Fuel: The CO2 emission factor for each fuel is set by a ministerial ordinancefrom the Ministry of the Environment(Hydroelectric power generation electricity at the Kambara Complex of Nippon
Light Metal Co., Ltd. uses the domestic electric power CO2 emission factor.)* The actual values do not include emissions associated withchlorofluorocarbons and their alternatives.

TOPIC Overhauling the holding furnace(Mie Plant of Nikkei MC Aluminum Co., Ltd.)At the Mie Plant of Nikkei MC Aluminum Co., Ltd., one line formelting various forms of scrap is made up of a melting furnace
and a holding furnace. Before the overhaul, both the melting
furnace and the holding furnace were furnaces with aforehearth. A furnace with a forehearth is a furnace that has
both a heating chamber and forehearth. The forehearth has
an opening that allows workers to easily put materials such as
scrap into the furnace. Melting furnaces need forehearths
because the scrap is melted by submerging it in melted
aluminum. However, the holding furnace did not necessarilyneed a forehearth because only a small amount of add-in
material is melted in it to control quality. Therefore, we
overhauled the furnace, turning it into a closed furnace without
a forehearth, whose radiating surface is small. This has
enabled us to reduce energy consumption by 20%, which
had been our target. Further, because the forehearth wasremoved, we were also able to remove the tunnel linking theheating chamber and the forehearth, which was easily

Nippon Light Metal Holdings Co., Ltd. 17

The Environment

CSR procurement

Initiatives for preserving biodiversity

damaged, eliminating the need to repair it and resulting in a
reduction of repair costs. Additionally, the work of scoopingout ash, which had to be done twice, once for the heating
chamber and once for the forehearth, now needs to be done
only once, which means increased work efficiency.

BeforeAt the NLM Group, we advance activities to preserve biodiversity
at our sites in Japan and other countries in accordance with our
Biodiversity Guidelines. Specifically, we engage in activities
including the monitoring of the environment around each plant,
tree-planting activities, and the protection of wildlife, in our efforts
to reduce our impact on biodiversity.
Biodiversity Guidelines
Basic Policy
The NLM Group will take the following initiatives for thepreservation and sustainable use of components of biologicaldiversity.
Striving to understand the impact of business activities on
biodiversity
Engaging in biodiversity-friendly business activities andtaking other initiatives to reduce the impact of businessactivities on biodiversity, to ensure the sustainable use ofcomponents of biological diversity
Striving to develop a system for promoting these initiatives

After

Air quality control
SOx emissions in Japan in FY2019 decreased 18 tons year-onyear, to 326 tons. This mainly reflects energy saving initiatives,
including the reduction of fuel consumption through the overhaulof the melting furnace and other measures, and a reduction in
production.
At 362 tons, NOx emissions remained almost unchanged fromthe previous year.
Water quality control
The amount of discharged water in Japan in FY2019 decreased
1.2 million m3 year-on-year, to 21.0 million m3 while COD
emissions remained almost unchanged from the previous fiscal
year, at 95.4 tons.
Waste reduction
Waste emissions in Japan in FY2019 were 43.9 thousand tons
while the volume of waste disposed into landfills remained almost
unchanged from the previous year, at 2.3 thousand tons.
Chemical management
The number of material of pollutant release and transfer register inJapan in FY2019 were 24.
Material balance (including overseas sites)

INPUT

TOPIC Membership in the Keidanren Committee on
Nature Conservation
In August 2019, Nippon Light Metal
Holdings Co., Ltd. joined theKeidanren Committee on Nature
Conservation (KCNC). The KCNC
was established so thatorganizations could support
activities to protect nature in Japanand developing countries andpromote the nature conservation
activities of companies. Moving
forward, we will proceed with ouractivities to preserve biodiversity inconsultation with the KCNC.

OUTPUT

Fuels

Greenhouse gases

6.0PJ

Plants

731 thousand tons CO

2

SOx
Aluminum and aluminum

Electricity and steam

products

8.1PJ

365 tons
NOx

449 tons
Wastewater

21.3 mil. m

3

Customers

Raw materials

523 thousand tons

COD

106 tons
Recycling

Water*

Final disposal (landfill)

22.6 mil. m

3

3.4 thousand tons
Amount of recycling/ reduction

48.4 thousand tons
* Seawater intake is excluded.

18 Corporate Social Responsibility Report 2020

TOPIC Participation in WWF Japan(Nikkei Technology Center Co., Ltd.)
Nikkei Technology Center Co., Ltd.
has become a member of WWF*Japan and has been providing
funding support as one of its
initiatives to protect the global
environment. In FY2019, thecompany encouraged its
employees to participate in Earth
Hour, a WWF event turning off
lights at the same time on thesame day all over the world. The
company has also ended the useof plastic straws.
WWF Japan certificate of* WWF: World Wide Fund for Nature

corporate membership

We practice CSR procurement together
with our suppliers.
Activities for raising suppliers’ awareness of CSR procurement

Communication with suppliers

At the NLM Group, we conduct awareness-raising activities to help
our suppliers understand our CSR procurement policy, including
the distribution of our CSR report every year. In FY2019, we
conducted a CSR procurement questionnaire survey of our
suppliers, and 224 of our 453 suppliers responded. When asked ifthey have established a business continuity plan (BCP), 58% of the
respondents said they had already established one or were
formulating one now (compared to 56% in the previous survey),
and the percentage of respondents who said they were formulating
one now was 21% (compared to 16% in the previous survey),
showing that BCP initiatives have been accelerated by our
suppliers. Further, the suppliers who responded affirmatively to aquestion about the establishment of a management system
ensuring their compliance in procurement with laws, regulations,and norms increased to 60% (from 57% in the previous survey),
showing that progress had been made in suppliers’ establishmentof compliance systems.

We sought advice from President Ueda of Shinwa Bussan KaishaLtd. about the BCP of the NLM Group and other topics. Shinwa
Bussan Kaisha Ltd. cooperated in our surveys of the impact of the
major natural disasters in 2019 and the COVID-19 pandemic in
2020 on our supply chain.

BCP initiatives
Where a major natural disaster, pandemic, or similar event has
occurred, the NLM Group conducts a survey to assess the impactof the disaster on the supply chain related to centralizedpurchasing, to promptly grasp any impact on the supply chain. In
2019, incidents of wind and flood damage occurred one after
another, and each time we checked the situations of our suppliers.
In addition, in February 2020, we conducted a survey to assess
the impact of COVID-19 on our supply chain, which covered morethan 95% of our suppliers involved in our centralized purchasing.
In the survey, we cooperated with suppliers to create a supply
map, identify and register emergency contact numbers, and other
BCP activities. Creating the supply map reminded us that it isnecessary for us to know the contact numbers of places that are
directly involved in the distribution of goods, and not just those of
the trading companies and manufacturers that we contact daily.
Through these activities we were able to establish an effective
contact system.

Thorough initiatives to prevent bribery and similar
misconduct within the procurement department
The Purchasing & Logistics Department of Nippon Light Metal Co.,
Ltd., which oversees the centralized purchasing of the NLMGroup, remains watchful and is careful every day to prevent any
form of misconduct, such as bribery, from occurring in any of ourrelationships with buyers and suppliers. One initiative for achieving
this is the Purchasing & Logistics Department’s regular training
program. Two times every year, the department uses its internal
meeting as an opportunity to provide procurement compliancetraining. Participants watch video training materials and exchange
opinions with each other, sharing their intent to prevent
misconduct as people involved in procurement. We continue totake initiatives like this in our efforts to raise compliance awareness.
In addition, we also use the meetings of the people in charge ofprocurement within the NLM Group to call for thorough measures
to prevent misconduct within procurement departments, confirm
the Group Compliance Codes, and take other initiatives.

Mr. Masao Ueda
President
Shinwa Bussan Kaisha Ltd.

Could you give us feedback about Nippon Light Metal’ssurveys of the impact on the supply chain?
Large natural disasters have occurred frequently over thelast several years. Also, I must talk about the COVID-19
pandemic. In these unforeseen circumstances, you asked
us questions using an established format instead of a verbal
confirmation over the telephone. That was very good for us
because you made what we should do as suppliers clear. It
also enabled us to respond more quickly than before.
Have you formulated a BCP? Do you provide regulartraining?
We are positioned as an interface between manufacturers
and users. Therefore, we are in close contact with the
responsible people of manufacturers to ensure that we areable to contact them even in an emergency. We also
stockpile emergency supplies for employees, including facemasks, and have introduced teleworking.
The China risk has greatly affected the supply chain.
What should users do to prepare for risks like that?
Speaking from the standpoint of a supplier, I strongly
request that companies purchase materials from multiple
suppliers. I also think that they should use suppliers who arefamiliar with business in China. I also recommend thatcompanies take this as an opportunity to replace projects
involving monopolized procurement with purchases frommultiple suppliers.
What is your opinion of the BCP initiatives of Nippon
Light Metal?
I think that you need to provide information about whether
you will accept a delivery or not. I think you are overlooking
that trading companies like us have to provide user
information to manufacturers. I believe that, by accurately
providing users’ acceptance information to manufacturers,
we can prevent unwanted confusion when a disasteroccurs.

Nippon Light Metal Holdings Co., Ltd. 19

Diversity

Workstyle reform/Measures to reduce long working hours

We advance initiatives to leverage diverse
human assets and diverse values.

We will continue to accelerate workstyle reformwith responsibility for and pride in our work.

Employment of people with disabilities

Workstyle reform

At the NLM Group, we are proceeding with initiatives that leverage
our diverse human assets and their value. One of those initiatives
is employment of people with disabilities, for which we makegroup-wide efforts.
In Japan, there is a statutory employment rate of people withdisabilities that is applied on a company-by-company basis.
Accordingly, within corporate groups, the employment of people
with disabilities had been an issue addressed by each groupcompany individually. The NLM Group is a corporate group
including 78 companies with consolidated net sales of around400.0 billion yen. In Japan alone, it includes 55 group companies
with net sales of 377.7 billion yen. Because many of the operatingcompanies have only tens or hundreds of employees each, theyfound employing people with disabilities difficult, and theemployment rate was below the statutory requirement at as manyas 70% of them. Our first move to overcome this situation and hirepeople with disabilities in a long-term and stable manner was tobegin to proactively employ people with disabilities by establishing
Nikkeikin OhLis Co., Ltd., a special subsidiary company*, in 2015.
A few years after the company was established, the developmentof employment infrastructure has progressed gradually andexpertise in the expansion of job categories has been
accumulated, thanks to the efforts of employees and staff
members who have supported the operation. As a result, in
FY2019, the company succeeded in extending job opportunities tonearly 30 people.
*Special subsidiary companies are subsidiaries established with special
considerations for the employment of people with disabilities, with the goal ofpromoting and stabilizing their employment. When special subsidiaries fulfill
specific requirements, the subsidiary’s employees can be regarded as
employees of its parent company as a special case when calculating the parent
company’s employment rate of people with disabilities.

Expanding the categories of jobs where people withdisabilities are able to work in a lively manner
As of April 2020, 21 employees with disabilities work for the
Nikkeikin OhLis Co., Ltd. At the Kambara Site of Nikkeikin OhLis
Co., Ltd., its employees are in charge of the cleaning,
beautification, planting development, confectionery production,
paperwork, and other tasks for the Kambara Complex of Nippon
Light Metal Co., Ltd. and the Nikkei Research and Development
Center. For each one of their tasks, we invite external lecturers toprovide specialized training, increasing the opportunities fortraining and improving the employees’ skill level.
More than 200 employees with disabilities work for the NLMGroup as a whole, and we will continue to improve their work
environment to make it more comfortable for them and toproactively recruit new employees. At the same time, we areplanning to strengthen
cooperation between
group companies tofurther expand thecategories of jobs that
employees withdisabilities do by having
the operations of
Nikkeikin OhLis Co., Ltd.
and group companies
shared across the group
Group training at the Kambara Site ofand expanded upon.
Nikkeikin OhLis Co., Ltd.

20 Corporate Social Responsibility Report 2020

Riken Light Metal Industry Co., Ltd.’s initiatives for
employing people with disabilities with support from
Nikkeikin OhLis Co., Ltd.
Riken Light Metal Industry Co., Ltd. had two employees withdisabilities in charge of cleaning, beautification, and production
assistance. In April 2020, three new employees with disabilities
joined the company. Although the number of employees withdisabilities had only been two employees, the company was able
to increase that number by three all at once, while smoothly
beginning new operations, with the support of Nikkeikin OhLis Co.,
Ltd., which is also based in the city of Shizuoka and is a precursor
to the employment of people with disabilities. Nikkeikin OhLis’s
knowledge about how operations are learned and its experience
proactively training students from special needs schools on the job
were utilized effectively in their provision of support. To enable new
employees to do tasks such as cleaning, beautification, andplanting development, training was provided in their first week of
employment. Training was held at the Kambara Complex, a baseof Nikkeikin OhLis, and at the Nikkei Research and Development
Center. After training, employees of Nikkeikin OhLis regularly
support the work of the new employees, with the goal of enablingthem to learn necessary
skills as quickly as
possible. The
accumulation ofexperience is also
beneficial for theemployees of Nikkeikin
OhLis, and has led themto improving theircapability to providing
training as members ofTeam NLM.
Production assistance (removal of aluminum parts)
Nippon Fruehauf Co., Ltd.’s initiatives to employ people
with disabilities
At the Atsugi Plant of Nippon Fruehauf Co., Ltd., 31 employeeswith disabilities engage in tasks such as the conversion of paper
documents into electronic data, the printing of business cards andother documents, and light-duty manufacturing work. The task of
converting paper documents into electronic data is done by ateam of several employees under a dedicated manager. They use
scanners and PCs to digitize documents, including documents
related to process management in the plant and administrative
data from sales sites all over Japan. In addition, reflecting
increasing cooperation with the plant, the employees began
engaging in light-duty work necessary at the manufacturing site,
such as the pre-assembly of parts. The
team is now relied upon by the
manufacturing workers.
Nippon Fruehauf Co., Ltd. has
accumulated the expertise to enable
these light-duty manufacturing tasks
and the tasks of converting paper
documents into electronic data to berolled out throughout the group. The
company is looking to expand these
activities to Nikkeikin OhLis Co., Ltd.
and Riken Light Metal Industry Co.,
Ltd. On the other hand, employees of
the company do not clean up theiroffices. Therefore, the company isconsidering having Nikkeikin OhLis Co.,Light-duty manufacturing taskLtd. provide its expertise in this area.
(bending aluminum parts)

Balancing work and nursing care

At the NLM Group, we have been enacting workstyle reform
initiatives, including the establishment of a workplace environment
which offers employees the ability to choose the diverse workstylethat suits the stage of their lives they are in, in addition to measures
to reduce long working hours based on laws and regulations andensure that employees take their annual paid leave. These efforts
are a part of the initiatives we are advancing to “Create aworkplace where everyone assumes responsibility for and takes
pride in his/her work and where everyone can fully develop his/herabilities as freely as possible,” which is included in ourManagement Policy.
Promotion of work-life balance
To help employees balance work and childcare, and work andnursing care, Nippon Light Metal Co., Ltd. has worked together
with the Labor Union to enhance its internal programs, such as theconversion of some childcare leave days into paid leave and theextension of the length of nursing care leave. Further, in April 2020,
the company extended the eligibility of its shorter working hour
program for childcare so that it can be used by employees until
their child graduates from elementary school. The company also
paid attention to its employees’ smaller needs related to daily
nursing care, such as having to accompany aged parents to thehospital even when parents have not been certified as needing
long-term care. As a result, the company has introduced nursing
care support leave separately from the nursing care leave
established by statute. In addition, for the employees themselves,the company has introduced life support leave that can be used
for hospital visit or the similar purposes, to develop an environment
which permits employees to work over the long term while
continuing to receive medical treatment. In addition to the above,the company has introduced a retirement pension plan for
employees who have worked for the company continuously forone year or longer.

Standards set by related
laws and regulations, etc.

Nippon Light Metal Co., Ltd.
measures

Period: Up to 93 days Period: Up to 186 days
Acquisition:
Nursing Acquisition:
The leave may be
No limitation on the number
care leave split into up to threeof blocks into which leave
blocks.
may be split
Period: 10 days/yearof eligibility:
Nursing Scope
Certification of thecare leave need for long-termcare is required.

Same as left

Nursing
care
supportleave

Period: 10 days/year
Scope of eligibility:
Certification of the need forlong-term care is not
required.
Salary: Paid

None

Balancing work and medical careStandards set by related
laws and regulations, etc.

Lifesupport
leave

None

Nippon Light Metal Co., Ltd.
measures

Period: 10 days/year
Salary: Paid
Scope of eligibility:
Designated intractablediseases, fertility treatment,cancers, heart diseases,
and cerebrovasculardiseases

Measures for promoting work-life balance at Nippon Light
Metal Co., Ltd.

Message from an employee
who used a program at
Nippon Fruehauf Co., Ltd.

Balancing work and childcare

Fumie Hachi

Standards set by related
laws and regulations, etc.

Nippon Light Metal Co., Ltd.
measuresChildcare
leave

Period: Until the childbecomes two
years old
Salary: Unpaid

Period: Until the childbecomes three years
oldSalary: Paid for some days

Familysick leave

Period: Until the child
beginselementary
schoolSalary: Unpaid

Period: Until the child
graduates fromelementary school
Salary: Paid

Shorterworking
hours

Period: Until the child Period: Until the childbecomes
graduates fromthree years oldelementary school

Accumulated
None
leave

Period: Until the child
graduates fromelementary school
Salary: Paid

Supportfor return None
to work

Return-to-work program
A program that helps
employees who left thecompany to give birth or takecare of their children return towork

Environmental Conservation Office
Nippon Fruehauf Co., Ltd.

I used the shorter working hour program to balance work withhousework and childcare. In addition, as my second
daughter’s third birthday approached, I wanted to extend theperiod of shorter working hours from the age of three toentering elementary school. I expressed my desire at an
opinion exchange session hosted by the Labor Union. The
company and the Labor Union immediately considered myrequest and decided to extend the period of shorter working
hours, which has been a great help for me. In FY2019, while
using the extended shorter working hour program, I was able
to fulfill my duties to create materials and present
achievements as the leader of small group involved in activities
at my workplace. As you grow older, you face various
changes in life, such as childbirth, childcare, nursing care, andmedical care. I would like to continue working for the longterm by reviewing my workstyle flexibly whenever I need to doso.

Nippon Light Metal Holdings Co., Ltd. 21

Occupational safety

Safety comes before anything else.

At the NLM Group, we promote safety activities under a simple
basic policy, safety comes before anything else. Our safety
activities involve the employees of group companies in Japan andin other countries, as well as the temporary staff and theemployees of our contractors at each business location, and our
suppliers. Therefore, we have made our policy easy for every worker
to understand as a part of our efforts to instill this policy in them.

Workplace injury trends
The number of workplace injuries at the NLM Group in 2019
decreased year-on-year in Japan and remained unchanged fromthe previous year at overseas sites.
While their number declined from the previous year, workplace
injuries are still frequent. We therefore strive to prevent workplace
injuries by enhancing measures to ensure the safety of machines,
equipment, and tasks and achieve a higher level of safety
awareness among people.
Number of workplace injuries(cases)Japan

Overseas

23
16

13
6
2015

9 8

2016

12

19

16

2017

implement measures to prevent the recurrence of the injury
including investigating the cause. Employees who are most familiar
with the work site are expected to consider and implement reliablemeasures. On the other hand, familiarity may also cause them tooverlook something, make an incorrect assumption, or make someother error. There is also the concern that, because those people
work in the same site daily, they may protect each other or hesitate
to take more severe measures. Accordingly, members of thegroup’s Safety and Health Control Department inspect the sitefrom a third-party perspective, separately from the people from thebusiness location in question. They inspect the site three times,
one week, one month, and six months after the workplace injury,
to assess the effectiveness of the countermeasures that were
implemented and whether they have taken root firmly, among
other points. This prevents workers from getting into a rut andsimply following procedures while incorporating best practices
from other business locations, and enables countermeasures
based on specialized knowledge.
In FY2019, activities to prevent workplace injuries at businesslocations where workplace injuries occurred were supported bygiving instructions on how to streamline processes analyzing thecauses of workplace injuries and formulating countermeasures, by
explaining legal regulations, by advising them to receive training
from external institutions, and by taking other measures.
Percent of business locations where workplace injuries
occurred that are visited

9

Number of workplace injuries judged to require visitation
Number of visits
Percent visited
2018

2019

(Year)

100%

Frequency rate of lost-time injuries (Consolidated)
1.05
0.70

12 12

0.56

2016

2017

2017

2018

2019

(Year)

Two major activities for preventing recurrence
At the NLM Group, we engage in two major activities for preventing
the recurrence of workplace injuries. One is the implementation ofthorough countermeasures at the business locations where
workplace injuries have occurred. The other is the prevention ofsimilar workplace injuries, to prevent serious workplace injuries thathave occurred in the group from happening at other businesslocations.
Thorough measures to prevent workplace injuries
Third-party investigations of workplace injuries and theprevention of their recurrence
When a workplace injury has occurred, the first thing we do is tohave the people in charge and other people from the businesslocation, including the safety and health manager, consider and
22 Corporate Social Responsibility Report 2020

2018

2019

50
45
40
35
30
25
20
15
10
5
0

Being pinched/caught
Cut/abrasion
Fall
Flying/dropped object
Collision
Falling from a heightContact with a hot object
Repetitive strain/overexertion
Contact with a hazardous object
Crash

2015

2016

2017

2018

2019

(Year)* Including lost-time injuries, non-lost-time injuries, and minor injuries(injuries which are less serious than non-lost-time injuries)

Issues of each action item
Action item

Issue

∙ For non-routine work, it is difficult to take equipmentPrevention of falling from related measures and establish work standards.
∙ Within distribution departments, equipment-related
heights
measures depend in large part on cargo owners’ facilities.
Prevention of being
pinched/caught∙ It takes a long time to establish equipment-related
measures because of the huge number of rotating andmoving parts.

Prevention of being
crushed under an object
which was leaned
against something andfalls over

∙ Because of the limited space, objects are often leaned
against things, such as objects being kept in a place
temporarily.
∙ There are many rules that are dependent on people, suchas rules for preventing objects from falling over.

Prevention of therecurrence of forklift
accidents∙ Space is limited and the number of forklifts is large. Thishas made it difficult to segregate people from forklifts andhas made it impossible to eliminate points where trafficlines of people are close to those of forklifts.
∙ Because the machines are operated by humans, errors inoperation cannot be eliminated.

Activities for preventing similar injuries

100%

17 17

0.41

2015

100%
22 22

0.91

Use of information technologies in safety and health activities

Number of workplace injuries by type (Japan)(cases)(Year)

Initiatives for preventing the occurrence of similar
workplace injuries
In October 2017, a fatal workplace injury occurred at a groupcompany in China. A steel plate for products, which was leaning
against a frame, fell down, resulting in the death of an employee
who was working between the plate and the frame. In September
2018, another fatal accident occurred at a group company in India.
An employee who was cleaning was caught in a belt conveyor
conveying raw materials, resulting in death.
Where a serious workplace injury like the above occurs in thegroup, we inspect all of the group’s production sites to identify any
factors that may cause a similar accident that may have been left
unaddressed and any risks that have been overlooked, to ensurethat a similar accident will never occur again.
At present, we are addressing falling from a high place, being
pinched/caught, being crushed under an object which was leaning
against something and has fallen over, and forklift accidents.
Among these, accidents where employees are pinched or caught
are highly likely to result in serious consequences. It is the mostfrequent issue in workplace injuries at the NLM Group.

The risk of being pinched/caught is a typical risk, and safetymeasures have been repeatedly taken. However, the number ofthese workplace injuries has not decreased. Therefore, we
inspected sites from the perspective of how to cause accidents
instead of the previous perspective of how to prevent accidents. In
many cases, an accident is caused by an event or behavior which
had not been expected or by a series of coincidences. We looked
for conditions and environments which could cause accidents, toeliminate them in advance.
As a result of the overhaul made from this different perspective,
6,100 risks were identified across the group. At present, we aretaking actions with the goal of taking countermeasures to address
all of the 6,100 risks.
At the Kambara Heat-Exchanger Plant of Nippon Light Metal
Co., Ltd., risks are reduced by regularly conducting risk
assessments (investigations into dangers or harms, etc. ofmachines, etc.: Industrial Safety and Health Act).
BeforeAt the NLM Group, we have installed and operate safety training
equipment, which allows employees to experience simulations ofdangerous tasks and equipment, to raise employees’ safety
awareness. At present, we have installed the equipment at ninebusiness locations.
Further, in FY2019, the Kambara Complex of Nippon Light Metal
Co., Ltd. introduced virtual reality (VR) equipment to enhance theexisting simulated experience training, in which trainees do realtasks and use real machines. This equipment enables employees
to experience a fall from a height, which is difficult to simulate, as
well as an electric shock.
Moving forward, we will be proactive in introducing digitaltechnologies. They will include a system for monitoring anddetecting risks by applying image recognition technologies basedon AI, which we will use to prevent workers from being pinched/caught or getting injured in other ways. They also include the useof vital signs sensing technology to check workers’ physicalconditions and detect risks of heat stroke, falls, and falls fromheights, which will be used in safety management.

Message from an employee who
experienced VR training
Takashi Kitaguchi (right in the photo)
Central Safety, Health, Environmental Conservation Division
Nippon Light Metal Co., Ltd.

Because the equipment isolates yourvision and hearing from the outside
world, it creates a great sense of
immersion (into the virtual world), so
the experience was realistic. Most ofall, in the program for experiencing afall from a height, I could not help but
bend backwards at the moment of
the fall, even though I knew it was asimulated experience. I really felt afear of high places. I would neverwant to fall in a real setting.

Training with VR equipment

Instructions on disinfection to prevent COVID-19 infections
At the NLM Group, we implement a wide variety of measures tocontrol COVID-19 ( p.12-14). As a part of these measures,
disinfection should be done promptly and completely when aperson has a confirmed or suspected infection, which is important.
Because of this, disinfection is done at each workplace. To ensure
the safe, appropriate disinfection of workplaces, we have createda manual including photos and videos that explains appropriate
work procedure. We have also created a disinfection record sheet
to ensure that there will be no steps omitted during disinfection.
We share tools such as these across the entire group in our efforts
to prevent outbreaks.

After

An improvement made at the Kambara Heat-Exchanger Plant of Nippon Light
Metal Co., Ltd.
The fence around the cutting machine was added, and an automatic cutout was
installed.
Disinfection instruction manual (excerpt)
Nippon Light Metal Holdings Co., Ltd. 23

Quality assurance

Quality assurance extends
from consultation to the end of use.
At the NLM Group we identify the needs of society and ourcustomers and engage in quality assurance initiatives to ensure
safety and quality while catering to these needs.

Quality management system(1) Ensuring the independence of quality assurance
departments
The quality assurance department of NLM HD was set up as theCentral Product Safety & Quality Assurance Division under the
direct control of the president to ensure its independence. This
department takes overall control of quality assurance departmentsof all companies and segments in the NLM Group. In addition, thequality assurance departments of the individual companies andsegments also operate as independent organizations.
Independence of the quality assurance departments
President of NLM HD

Content of prompt reports and recalls (FY2019)
Month and year

April 2019

Sharing and utilizing complaint information
We are able to provide safe, secure products and services tocustomers because we discover problems and completely address
them in the consideration phase before the commencement ofcommercial production. However, some items needing
confirmation are not evaluated completely, resulting in a failure tosolve every problem in the consideration phase. As a result, we
receive complaints attributable to design/development factors at a
rate of around 20% every year. Further, complaints attributable tomanufacturing factors include those caused by inadequate
instructions because of insufficient verification during theconsideration phase, which account for more than 50% of allcases.
At the NLM Group, the Central Product Safety & Quality
Assurance Division monitors complaints by collecting information
about complaints from group companies and segments. In
addition, the causes of all complaints are analyzed. The results of
the analyses are provided to the Group Quality Committee toensure the information is shared.

(4) Initiatives for providing safe products and services andensuring quality
At the NLM Group, the majority of complaints we receive are
attributable to insufficient confirmation before commercial
production. Therefore, the Screening Committee Meeting meets toevaluate safety, quality, and compliance with laws and regulations
from multiple perspectives, to confirm that commercial production
has been started without problems, and to ensure that advancequality checks have been conducted.
In FY2019, the Screening Committee Meeting met 92 times tolaunch new products and services and to revise products andservices.
Number of meetings of the Screening Committee Meeting120(cases)Ratio of complaints by factor in monetary terms

Central Product Safety andQuality Assurance Department
Operation

Plant managers

Group Quality Committee

2015

17.0

36.9

11.1

2016

16.5

36.0

7.9

2017

19.9

35.9

21.3

34.9

2018

16.7

0.0
Quality assurance
departments

Manufacturing
departments

Sales departments

General affairs
departments(2) Activities to improve quality assurance capabilities
At the NLM Group and with the Central Product Safety & Quality
Assurance Division taking the lead, we engage in activities tosteadily create business opportunities while identifying andreducing risk.
Group Quality Committee
At the NLM Group, the Group Quality Committee, which is
attended by quality assurance managers from group companies
and segments, meets twice a year in April and October. At themeeting, participants share quality-related information in the group,
such as quality assurance information and excellent examples ofquality assurance improvement. The meeting also includes
committee member discussion. The goal of these committee
meetings is improving the level of quality assurance and control
throughout the group.

87

2015

2016

92

2018

2019 (Fiscal year)

22.7
13.3

20.3

18.8

21.1

3.9
7.2

40.0

19.0

16.9

10.6

43.1
20.0

16.0

60.0

6.9

80.0

100.0

(3) Structure for reporting serious quality-related matters
At the NLM Group, we have established and enforce a rule
requiring that, in the event of a serious quality problem such as arecall or a defect that may cause physical injury, information about
the problem shall be provided promptly to the overall groupregardless of who is responsible for it.
In FY2019, seven problems were reported. The causes of theseven problems were analyzed. It was found that they were mainly
caused by insufficient evaluation in the development or
consideration phase of the products or services and inadequate
operating instructions, which can be attributed to the lack of clarity
in the specifications requested by customers.
Number of serious quality-related matters that were reported(cases)Number of prompt reports

Number of recalls (of the numberof prompt reports)

8

2015

Quality audits: Distribution of results by score

763(1) Quality audits
At the NLM Group, we visit all of the group’s companies andmanufacturing sites once a year to conduct quality audits. Mattersthat are checked through quality audits include the effectivenessand appropriateness of quality management systems based on
ISO 9001, laws, and regulations, as well as the status of the
management of products and services as it is actually
implemented. We also engage in quantitative evaluations based on
criteria established by the group, root cause analyses of the items
that need to correct, and the conversion of the results of these
efforts into strengths.
In FY2019, we audited 46 facilities in Japan and 16 overseas
sites. As a result of audits in FY2019, it was found that 88% ofcompanies and segments were operating under correct rules.
Thus, the level of quality assurance and control has been improving
every year. On the other hand, some overseas manufacturing sites
were found not to have written in-house development and design
procedures, and corrections were made accordingly.
Score

10
8

1 and 2: Correction needed
3: Operated without problems under correct rules
4 and 5: Initiatives which should be applied at other segments
are taken.

(Fiscal year)

4

4

3

2
2016

2017

Activities for improving quality assurance capability

26.1

(%)

Independence of the quality
assurance departments

82

2017

2018

2019 (Fiscal year)2015

0.3 19.7

2016

0.0

14.2

74.1

2017

0.0

12.6

72.8

2018

0.0

15.1

2019

0.0

0.0

11.6
20.0

7.2 0.5

72.3

40.0

11.0
13.2

0.7
1.4

78.5

6.1 0.3

82.9

5.3 0.2

60.0

80.0

100.0
(%)

24 Corporate Social Responsibility Report 2020

A quality audit (Nikkei MC Aluminum (Thailand) Co., Ltd.)(2) Full quality checks
At the NLM Group, we conduct full quality checks during quality
month (November) every year to examine our quality activities andcheck that our products and services are produced and shippedwithout problems, among other points.
In FY2019, we fully checked the statuses of the management
under the following contents, with the goal of working thoroughly
on factors causing complaints, the results of quality audits, and the
upstream management of manufacturing.
As a result of the full quality checks, we were able to confirm
that standards and rules to be observed have been established ateach department, and activities are carried out in accordance withthe standards and rules. Some departments were found not tohave rules for management, and corrections were madeaccordingly.
Contents of the full quality checks (FY2019)1) Whether the acceptance of orders for new products andservices and 4M change management are evaluated in phases
where evaluation is necessary2) Whether responses to customer requests regarding
specifications and other matters are surely checked by the
Screening Committee Meeting

94(Fiscal year)

2019

Participate

Category

April 2019
AugustSerious property damage
Parts not bonded
2019
December Insufficient strength of a section
Recall2019
to which a part is attachedFebruary
Defective processing
Recall2020
dimensions of parts
Serious property damage
March 2020 Defective material holes
March 2020 Insufficient fastening of parts Recall

Design/development
Manufacturing
Purchasing (outsourcing)
Sales
OthersPresidents/general managers of businessdivisions of subsidiaries/affiliates

Content of the defectCut caused by a protruding
Physical injury
part of a productProduct breakage
Possibility of a physical injury

Method of the full quality checks∙ Confirm the presence of established procedures from the input of
information when orders are accepted or there is a 4M change tothe provision of the information to the manufacturing or service
provision department.
∙ Check the activity record to confirm the above procedures arefollowed.

Development of human assets in charge of quality(1) Program for improving quality assurance capabilities(independent studies of quality (Hinshitsu Jishuken))
At the NLM Group, we conduct independent studies of quality(Hinshitsu Jishuken) every year as part of quality improvement
activities. The Hinshitsu Jishuken are conducted using one groupplant as the “gym,” where participants carry out quality
improvement activities using real products and manufacturing
processes as their subjects. Thus, they learn approaches andmethods for improving quality control and establishing quality
assurance. While there are small group activities, QC circles, andsimilar activities at each company and segment, the Hinshitsu
Jishuken serves as an opportunity to discover new things byworking on improvements in processes that participants havenever experienced before, beyond the boundaries between
segments. In this activity, participants work on improvements byidentifying things about products and services and their processes
that can be improved and by sharing targets — the problems thathave occurred and the ideal state of the products or services— with the people involved. The goal of the segment conducting
Hinshitsu Jishuken is to produce improvements while the goal ofthe members working on the improvements is to acquire
improvement skills. The knowledge, tools, and experience
necessary for quality assurance and control can be improved byunderstanding the things that society and customers need, and byhaving a firm understanding of how things are, even if the products
or services being handled are different.
Nippon Light Metal Holdings Co., Ltd. 25

Quality assurance

Local communities(2) Development of human assets through group training
In FY2019, for the continuous development of the human assets incharge of quality, the NLM Group provided training with thethemes of “ways of thinking and the creation of system necessary
to fulfill customer requirements,” in addition to “basic training for
quality control” and “ISO 9001 internal auditor training.” The new
training is aimed at expanding the idea of IATF 16949:2016, a
standard recommended by the automotive industry, across thegroup. Approx. 50 people participated in this training. The training
allowed participants to learn about ISO 9001 requirements andalso deeper ways of thinking, leading them to make improvements
within their own company or segment.

Messages fromparticipants in the firstround of the program

The things that weremost impressive

The things that were thetoughest

What I learned from theactivities(3) Exchange of human assets in charge of quality
At the NLM Group, the Central Product Safety & Quality Assurance
Division has a program that accepts human assets dispatchedfrom group companies and provides them on-the-job training todevelop them into human assets capable of working on quality
assurance for the group. This program was launched in 2018 toraise quality assurance awareness and prevent quality accidents
and misconduct. The program gives participants, who are usuallyworking on quality assurance at their own segments or sites, afulfilling opportunity to increase their knowledge, meet new
comrades, and develop a more detailed feel for what their missionis, by seeing other products and services and thinking about thequality assurance system of the entire group.

NLM Group’s social contribution activities seen fromthe viewpoint of social contribution accounting
Social contribution activities doubled in eight years
Expenses related to social contribution(Million yen)
200

Mikio Tanaka

Kenichi Kitazoe
General Manager, Engineering
Department
Nikkei Extrusions Co., Ltd.

Group Leader
Quality Assurance Group, Rolled
Products Division
Nippon Light Metal Co., Ltd.

While I had experience identifying risks during
quality month, the competition on good practices
in quality was my first opportunity-related
initiative, which permitted the group-wide sharingof positive information, such as examples ofimprovements that had been made at various
segments.

Working in the Central Product Safety & Quality
Assurance Division, I visited various businesslocations and reaffirmed for myself that we deal ina diverse array of products and services forvarious industries. I was also able understanddifferences in the methods for quality assurance
and the ways of thinking for these diverse
products, services, and industries. I felt thatfurther evolution is possible if we deepen our
cooperation by skillfully taking advantage of thebroadness of the fields the NLM Group is
engaged in.

I had a hard time adapting to the wide range of
operations done by the Central Product Safety &Quality Assurance Division to manage quality
assurance for the entire group. Because I was
unfamiliar with the tasks, I fell significantly behindschedule, which caused a lot of trouble for theother people involved.

Unlike the improvement activities at plants, theactivities of the Central Product Safety & Quality
Assurance Division rarely produce a visible effect.
This made it hard for me to feel the achievementsthat we made. In addition, I found it difficult to
identify the needs and current situations ofsociety, our customers, and other stakeholders
because I was away from the manufacturing
sites.

I felt that there was a gap in enthusiasm for
quality and the level of quality control between
departments upstream, close to the beginning of
the process and those downstream, close to thecustomers in the process. This experience mademe feel that we need to improve our company’s
quality assurance so that we never cause
problems for society or our customers.

By observing various business locations of the
NLM Group, I was able to expand my criteria forevaluating manufacturing beyond the quality
aspects that were my focus. In addition, theexperience of working outside my own segment
allowed me to reaffirm for myself which of ourinitiatives are good and which are insufficient.

Message from a participant in the second round of the program
What I am determined to do
When I was transferred from the engineering department to the quality assurance department at myprevious workplace, I found that things looked completely different. I believe that the same thing will
happen in this program. Therefore, I would like to learn new things with a consciousness of how eachplant in the group looks from the perspective of the Central Product Safety & Quality Assurance Division.
What I expect to experience during the two years
This is a good opportunity to learn about quality assurance of the entire group. I would like to proactively
bring back and share the good things I find with my own segment and improve my own awareness.

Takao Otaki(Dispatched from)
Quality Assurance Department
Nikkei Heat Exchanger Co., Ltd.

26 Corporate Social Responsibility Report 2020

In FY2020, we are using online tools and other similar tools andlooking for methods that involve minimal travel and contact.

168

163
150
100

72

121

117

2014

2015

95

179

133

50
0

2012

2013

2016

2017

2018

2019 (Fiscal year)

At the NLM Group, our social contribution activities are not simply
temporary activities or donations. Instead, the group as a whole
has introduced and is promoting community-based activities andprograms to contribute widely to society as a whole. We havecontinued those activities in the same way, even in the face of the2008 global financial crisis and in years when we suffered frommajor disasters. As a result, the related expenses have doubled in
the eight years since we first began these activities.
In FY2019, we participated in 353 local programs, and our
expenses were 179 million yen.

Working together with society over the next 20 years
Nippon Light Metal Co., Ltd. celebrated its 80th anniversary in
2019. The company decided to make annual donations to theFoundation for the Support of the Children’s Future (Kodomo no
Mirai Ouen Kikin) that is operated by the Welfare and Medical
Service Agency (WAM), and WAM’s Social Welfare Promotion
Support Program, for the next 20 years leading up to its 100th
anniversary.
The act of helping address the difficulties faced by impoverishedchildren and supporting people with disabilities through this fundand this program conforms to the Social Contribution Policy of the
NLM Group. This is the first time for the NLM Group to decideadvance to continue to donate over such a long period. We
promise to make the 20 years a period for working together withsociety as we engage in our corporate activities.
In FY2020, the second year of this 20-year program, there havebeen a large number of applications for subsidies for emergency
support projects associated with the spread of COVID-19, and ourdonations are used for these projects.

Foundation for the Support of
the Children’s Future(Kodomo no Mirai Ouen Kikin)https://www.kodomohinkon.go.jp/

Initiatives to prevent COVID-19 infections
Our quality assurance initiatives involve many opportunities totravel to actual places and contact actual goods, such as quality
audits and various training programs. Therefore, it is necessary for
us to revise their content and methods from the perspective ofpreventing COVID-19.

The opening of Nikkei Arena, a gymnasium
where parasports can also be played

Social Welfare Promotion
Support Program

The gymnasium at theTomakomai Complex of
Nippon Light Metal Co.,
Ltd. was renovated in a
project commemorating thecompany’s 80th
anniversary. This gymnasium has been used as a welfare facility forthe group’s employees and their families. It was renovated toenable it to be used by local people, particularly by parasports
teams.
The first step for us in the renovation project was to learn about
the parasports themselves. To understand what facilities arenecessary for these sports and how to facilitate their use, we
listened to people from the city of Tomakomai’s Fukushi Fureai
Center (a parasport facility) and to the parasports teams in the city.
We also observed wheelchair basketball tournaments held in
Hokkaido and the Japan wheelchair rugby championships, andsurveyed athletes, referees, and others involved in the sports.
While deepening our exchanges with the athletes and competition
officials, we learned that they faced issues such as a shortage ofathletes and referees and a limited number of facilities that wereavailable for them. This increased our desire to play a part insolving these issues as members of the local community. We
interacted significantly with Tomakomai WBC, a wheelchairbasketball team, through a wide range of activities including
observing their practices and playing the sport with them. Theygave us specific advice for the renovation.
We made various changes to the specifications, including the
installation of automatic and sliding doors, the widening of roads
and slopes, and internal facilities.
The hands of wheelchair athletes get dirty because they handle
handrims intensely during games. Therefore, we installed awashstand designed for wheelchair users. The resting room has
windows, through which wheelchair users are able to look over the
arena. This enables athletes to watch games while resting. We
attached 900 mm tall protective mats to the walls of the arena, toprotect wheelchair rugby and wheelchair basketball players frominjury, even when they collide with walls due to their fast, furious
play.
The second floor has a viewing area where people can look over
the arena, as well as a workout room and a room that can be used
for lectures and team meetings.
The renovation was completed in March this year but its opening
was delayed due to the COVID-19 pandemic. It began operating
fully in July this year. The renovated gymnasium will be used by
local Tomakomai wheelchair basketball teams for training, as well
as for football, tennis, handball, darts,and other sports. In particular, we haveheard that people involved in wheelchairsports have difficulty securing places totrain and play games because there are
only a limited number of stadiums thathave the appropriate equipment. We
hope that Nikkei Arena will be useful forthe local people and the people who playsports for the disabled, as well as for the
Washstand designed for
employees of the NLM Group.
wheelchair users

https://www.wam.go.jp/hp/guide-jyoseioutline-tabid-178/

Nippon Light Metal Holdings Co., Ltd. 27

Governance, Compliance and Internal Control

Group governance aimed at ensuring furthertransparency of corporate management
NLM Group

maintain the institutional independence of the auditing function.
They met 12 times in FY2019. The Board of Auditors consists ofsix members including three independent outside auditors(including one non-Japanese officer). (The figures are as of June24, 2020). In addition, it has one full-time employee who is incharge of assisting in auditing operations.

Nippon Light Metal Holdings Co., Ltd. (hereafter, the “NLM HD”) isa pure holding company listed on the First Section Market ofTokyo Stock Exchange, Inc. We have formed the NLM Group,
which consists of 77 consolidated subsidiaries including Nippon
Light Metal Co., Ltd. and Toyo Aluminium K.K., the core operatingcompanies (as of March 31, 2020). At the NLM Group, we operatebusinesses with a focus on the manufacture and sales of aluminumand related products.

Establishment of the Nomination andCompensation Committee

The NLM Group’s basic approach to management is systematizedas the Group Management Policy, which consists of three pillars
and 13 basic policies.
Matters concerning the NLM Group’s governance are managed
based mainly on Group rules stipulated by the NLM HD, while theautonomy of each company is respected. In addition, decisions on
matters that affect the overall Group are made after they are
examined from multiple perspectives by the Group Executive
Committee, which consists mainly of directors of the NLM HD.
Among these matters, those that are especially important are
discussed and determined by the Board of Directors of the NLMHD.
In FY2019, the Board of Directors of the NLM HD met 13 times.
In June 2020, one new independent outside director joined them.
As a result, the Board of Directors of the NLM HD consists of 14
members including five independent outside directors (including
one female officer). The ratio of independent outside directors now
fulfills the standard “at least one-third” ratio that is recommended
in the Corporate Governance Code established by Tokyo Stock
Exchange, Inc.
In addition, the NLM HD has set up a Board of Auditors to

Number of outside
directors

13

2

12

13

3

Total number ofauditors

6

Number of outside
auditors

3

4

Executive compensation
and appointment
Oct. 2012

Jun. 2016

Compliance

Audit reports

Appointment/removal

President and CEO

Jun. 2017

Audit reports/ Opinion exchange

Opinion exchange

The handbook translated into four languages(English, Chinese, Thai, and Vietnamese)

Whistleblowing
systemInternal audit

Central CSR and
Audit OfficeCompliance Committee
CSR Committee
Quality Committee
Environment Committee

Statutory
auditor audits

5- 2020: Appointment of a female
director

Jun. 2018- 2020: Establishment of the Nomination
and Compensation Committee
Feb. 2020 Jun. 2020
Month and year

FY2019 compliance promotion plan and major achievements

The raising ofawareness

Executive officers

Group Executive
Committee

Compliance Codes and compliance meetings as an
inseparable combination
The codes of conduct of the NLM Group are published as theGroup Compliance Codes, which require all officers andemployees of the group, including those outside Japan, to comply
with laws and regulations, corporate ethics, and businessetiquette, act sensibly, and communicate with stakeholders
proactively, among other requirements. To ensure officers andemployees are thoroughly informed of these codes, a handbook
containing them, which has been translated into four languages(English, Chinese, Thai, and Vietnamese), is distributed to all sothat they can carry it around.

Auditors
Outside auditors

Appointment/ removal

Accounting auditor

Consulting
AdviceNomination andCompensation Committee
AdviceConsulting

Compliance Committee
The NLM Group has set up a Compliance Committee, which ischaired by the president and CEO of NLM HD and consists of themembers of the Board of Directors of NLM HD. The Compliance
Committee prepares a compliance promotion plan every year andchecks the status of implementation of the plan on a quarterly
basis.

14- 2020: Appointment of a nonJapanese auditor

Education/training

Directors
Outside directors

Operations, subsidiaries,
and affiliates

Opinion exchange

12

Promotion of complianceAppointment/ removal

Board ofDirectors

Reports andproposals

28 Corporate Social Responsibility Report 2020

Appointment/ removal

Board of Auditors

Audit reports

Three outside auditors(All of them are independent officer*)* Defined by Tokyo Stock Exchange, Inc. as“an outside director/auditor who is unlikely
to have conflicts of interest with generalshareholders”

Total number of
directors

Compliance with laws andregulations

General Meeting of Shareholders
Appointment/ removal

Six auditors (term: four years)- 2012: Establishment of the NLM HD as a pure holding company

Item

Governance structure

Accounting audit

Every year, the Board of Directors of the NLM HD passes
resolutions regarding the evaluation of its effectiveness.
At the Board of Directors’ meetings, the directors engage inlively discussion, with opinions proactively shared mainly byoutside directors and outside auditors. The content of these
discussions is reflected in the management team’s execution ofbusinesses.
Efforts are also made to enhance the operations of the Board of
Directors. Such efforts include the inspections of businesslocations, including overseas sites, by outside directors andoutside auditors and free discussions on a wide range of themes
related to management, which are not limited to matters intended
for a resolution by the Board of Directors. In addition, independent

Separation of management
and execution*Members of the Nomination and Compensation Committee(As of June 24, 2020)
Chairperson: Masato Ono (Independent outside director)
Member: Ryoichi Hayashi (Independent outside director)
Member: Haruo Ito (Independent outside director)
Member: Toshihito Hayano (Independent outside director)
Member: Keiko Tsuchiya (Independent outside director)
Member: Ichiro Okamoto (President and Chief Executive Officer)

Fourteen directors (term: one year)

Five outside directors(All of them are independent officer*)

outside directors meet with the president and CEO or holdmeetings of only independent outside directors as the occasion
warrants, in their efforts to exchange opinions and share theirrecognition of issues from independent, objective perspectives.
As a result, Board of Directors’ meetings include open,
constructive statements and discussion, and it is believed that
effectiveness of the Board of Directors is ensured.
Main free discussion topics- Human asset development of the NLM Group
Issues and future direction of human asset development of the
NLM Group were discussed.
- CSR issues of the NLM Group
Discussions of the past CSR activities of the NLM Group and
CSR issues that the group should address in the future were
held.

Changes in the governance structure

In February 2020, the NLM HD set up the Nomination andCompensation Committee as an advisory body to the Board of
Directors and the president, to strengthen the Board of Directors’supervision of the nomination and compensation of directors andothers, which is an important matter in corporate governance. The
majority of this committee’s members are independent outside
directors and its chairperson is selected from among these
independent outside directors by the Board of Directors.
This committee deliberates on matters related to nomination
policy, including on the duties and qualities required of thepresident and CEO and directors, and matters related tosuccession plans for the president and CEO, among others, toensure the transparency and fairness of decision-making
processes related to the nomination and compensation of
directors and others.

The group’s governance structure

Outside directors / outside auditors ratios

Evaluation of the effectiveness of the Board of Directors

Achievement

Anti-bribery

Distribution of translated editions of
the handbook containing anti-bribery
rules

Addressing priority risks

No serious incidents in the eight fields
of priority risk

Establishment of an
information management
systemEnhancement of information
management at the head office

Implementation ofindividual companies’
promotion plans

The plans and achievements of groupcompanies were confirmed.

Compliance meetings

Held twice, with attendance of 94%

Promotion of complianceat overseas sites

Translated editions of the handbook
containing the Compliance Codes were
distributed.

Enhancing measures toprevent harassment

Explanatory meeting on the revision oflaws was held, and training to prevent
power harassment was given to
managers and supervisors.

Training of people incharge of complianceTraining regarding the revision of laws

Job-class-specific training

Given to officers, managerial
employees, mid-career employees,
and new employees.

Expatriate training

Given individually to expatriates

Compliance Promotion
Month

The President’s message wasdelivered. Posters were put up to raiseawareness. Compliance slogans were
solicited and selected.

Intranet

Compliance newsletter

Securing the independence ofthe external contact office

We switched from a corporate
lawyer’s office to a specialist firm.

Contact office for
non-Japanese speakers

A contact office that accepts reports
in English, Chinese, Thai, andVietnamese was established.

Evaluation

Nippon Light Metal Holdings Co., Ltd. 29

Governance, Compliance and Internal Control

Moreover, to promote the understanding of, and inform employees
thoroughly of, the codes of conduct, a compliance meeting is heldat each workplace twice a year to enable them to learn byrepetition. At the meetings, participants exchange opinions aboutproblems faced in the workplace, case examples of complianceviolations that occurred in other departments, and other subjects.
In FY2019, a total of 2,156 workplace meetings were held, with
21,404 participants in total (participation rate: 94%).

Main content of and items in the Group Compliance Codes
Position: Specific codes of conduct that all officers andemployees of the group should observe
Chapter 1: Promotion of compliance
Practice faithful, fair business activities widely and think
and act from other people’s points of view.
Chapter 2: Responsibilities to employees
Make ensuring the workplace safety and health,protecting human rights, prohibiting discrimination andharassment, and other responsibilities to employees
the top priority
Chapter 3: Basic internal rules
Appropriate use of company assets including
intellectual property rights, appropriate management ofcompany secrets, appropriate recording and reportingof operations, and other rules
Chapter 4: Responsibilities to customers and business partners
Safety and quality assurance of products and services;prohibition of unfair competition including bribery, thecreation of cartels and bid rigging; appropriate
transactions with business partners; and other
responsibilities
Chapter 5: Responsibilities to society
Legal compliance, reduction of environmental impact
through initiatives such as the 3Rs, carbon emission
reduction, and biodiversity preservation, never having
any relationship with antisocial forces, active interaction
with local communities and contribution to theirdevelopment, and other iniatives
Chapter 6: Responsibilities to shareholders and investors
Appropriate information disclosure, prohibition of
insider trading, and other responsibilities
Chapter 7: Dissemination, additional rules
That officers and managerial employees should takethe initiative in acting in accordance with thisCompliance Codes and instruct and supervise theirsubordinates; that they request that the relevant
temporary staff agencies and subcontractors comply
with these Codes; that the violation of these Codes will
result in punishment based on established rules; andother rules
Whistleblowing system
A whistleblowing system has been introduced at major groupcompanies. In addition, the NIKKEI HOTLINE, the group’scommon contact office for whistleblowers, has been set up. The
NIKKEI HOTLINE receives approximately 40 whistleblowing
complaints and requests for consultation every year.
The NIKKEI HOTLINE ensures that whistleblowers are protected
and that they cannot be treated disadvantageously. Information
about each whistleblower is disclosed only to people in charge ofthe contact office for whistleblowers and some of the people incharge of investigations. It will not be disclosed to any otherperson without the consent of the whistleblower. People involved,
including the whistleblowers themselves, are strictly prohibitedfrom leaking secrets that they are aware of, and violating this rule
will result in disciplinary action. Retaliation against and harassmentof whistleblowers are also strictly prohibited, and violating this rulealso results in disciplinary action.
The corporate lawyer’s office was previously the external contact
office for whistleblowers. In FY2019, however, we switched to a
specialist firm, thereby strengthening the independence of thecontact office. Further, we have built a global hotline system by
establishing a contact office for whistleblowers that respond in thefirst languages of the countries where we have major overseas
sites (Chinese, English, Thai, and Vietnamese).
30 Corporate Social Responsibility Report 2020

Independent Assurance Report

Number of cases that were reported to NIKKEI HOTLINE(cases)

13

14

15

2015

2016

2017

28

29

2018

2019 (Fiscal year)

Internal control
The Board of Directors of the NLM HD has determined the Basic
Policy on the Development of the Internal Control System and is
striving to apply the policy uncompromisingly. In addition, theBoard of Directors receives a report about the status of internal
control every two quarters and provides appropriate supervisionand instructions.
Internal control over financial reporting
To ensure appropriate financial reporting, we have established andoperate an internal control system over financial reporting. For thispurpose, we have appointed an internal control executive and aninternal control promoter at each group company and segment
and promote appropriate establishment and operation of internal
control system. Evaluation is undertaken by auditing departments
under the direct control of the president of NLM HD and whose
independence is secured. Information about the status of theestablishment, operation, and evaluation of internal controls isshared with auditors and accounting auditor and reported to theBoard of Directors.
Risk management
Under the risk management system of the NLM Group, priority
risks are specified with a focus on operational risks, and we haveestablished a supervisory department for each risk field at the NLM
HD to reduce each risk and address residual risks flexibly. The
supervisory department handles risks by cooperating withbusiness departments.
The Board of Directors receives a report on the overall risk
management situations twice a year and evaluates the contents of
the report before giving the necessary instructions.
In FY2019, climate change risks and opportunities werediscussed at meetings of the company’s Board of Directors, theGroup Executive Committee, the CSR Committee, and at othermeetings, with the discussions being held to select material issues.
( p.6-7)
Major initiatives that were taken to address priority risks
Subject risks

Initiatives and results

Defective product/ servic( p.25)

Quality audits of all sites (every year)

Environmental accidents,
environmental impact( p.15)

Environmental audits of all sites (every three years)

Natural disasters/ accidents

Workplace injuries( p.22)

Information security

Evaluation

Full checks of specifications required by customers

Supporting measures to prevent the recurrence ofenvironmental accidents

Formulation of administrative departments’ BCP
Emergency drills (confirmation of safety, satellite mobile
communication, rescue, establishment of disaster headquarters)

On-site inspection of lost-time injuries
Prevention of the recurrence of serious injuries
Strengthening the security of cloud-based services
Training to address targeted email attacks

Leakage of trade secret

Establishment of a system for monitoring confidential information

Export security

No applicable problems

Failure in the timely disclosure of information No failures

Nippon Light Metal Holdings Co., Ltd. 31

Corporate overview

Corporate overview

Business summary

Trade name:

Nippon Light Metal Holdings Company, Ltd.
(Abbreviated to “NLM HD”)

Securities code:

5703

Head office location:

Urbannet Uchisaiwai-cho Building, 1-1-13 Shimbashi,
Minato-ku, Tokyo

Established:

October 1, 2012

Paid-in-capital: 46,525 million yen
Sales:

Alumina, Chemicals, andIngot Business

Sheet and Extruded
Products Business

Fabricated Products andOther Businesses

Foil and Powder
Products Business

Sales ratio

Sales ratio

Sales ratio

Sales ratio

22

22

37

19

465,946 million yen (consolidated)

Number of employees: 13,611 (consolidated)*All data are from FY2019 or as of March 31, 2020.

Financial highlights
Net sales (consolidated)

Ordinary profit (consolidated)

Profit attributable to owners of parent(consolidated)(billion yen)(billion yen)(billion yen)

500.5
465.9
464.4 448.4 481.4

24.5

26.3

29.5

31.1

19.5
23.5

15.5

18.0

%

20.6

7.5

Sales

102.8

Sales

Operating profit

2016

2017

2018

2019 (Fiscal year)

2015

Equity ratio (consolidated)

Dividend

(%)

(yen)

35.6

37.2

39.0

39.6

28.8

2015

2016

2017

2018

2019 (Fiscal year)

2015

2016

2017

2017

2018

2019 (Fiscal year)

Global network

2015

8

8

2016

2017

9

9

2018

ToyaI Europe

32 Corporate Social Responsibility Report 2020

9.0

Suzhou Toyo Aluminium Ekco
Household Products
Toyal Zhaoqing
Toyo Tokai Aluminium Hanbai(Shanghai)
Hunan NingXiang JiWeiXin
Metal Powder
Toyo Aluminum Ekco Trading(Suzhou)
Toyo Aluminium (Shanghai)Management
Toyal MMP India
Toyal (Thailand)

%

Sales

101.2

Sales

Operating profit

billion yen(billion yen)

117.0

9.6

2018

102.8
10.9

2019 (Fiscal year)

107.0

9.8

2017

%

Sales

173.0

Sales

Operating profit

billion yen(billion yen)

107.8

7.2

2018

101.2

169.0
9.8

Sales

88.9

Sales

Operating profit

2019 (Fiscal year)

Aluminum sheets and extrusion
products are used in a wide variety
of fields, such as for automotive partsand railway cars in the transportindustry, thick sheets and relevant
parts for semiconductor/ liquidcrystal manufacturing equipment,
and fabricated sheets for PC/ tablet
bodies in the electrical andelectronics industry. The NLM Groupmakes use of its technologies andexpertise cultivated over many years
to proactively develop products thatmeet customers’ needs and to
supply highly functional sheets andextrusion products.

Nippon Light Metal Holdings
Nippon Light Metal
Nikkei Sangyo
Shizuoka Kosan
Kinki Kenmazai Kogyo
Aluminium Wire Rod
Nikkei MC Aluminium
Nikkeikin Kakoh Kaihatsu Holdings
Nikkei Inazawa
Nikkei Metal
Nikkei Extrusions
Riken Light Metal Industry
Nisshin
Nikkeikin Aluminium Core Technology
Nikkei Technology Center
Nikkei Niigata
Nikkei Kambara
Toyo Rikagaku Kenkyusho
Nikkei Kenzai Kogyo
Nippon Fruehauf
NikkanNKS
Nikkei Matsuo
Nikkei Heat Exchanger
Nikkei Hokkaido
Nippon Electrode

Nikkei Partners
Nikkei New Business
NLM ECAL
Nikkei Panel System
Shiga Nikkei
Shimonoseki Nikkei
Arumi Reinetsu
Nikkei Information Systems
Nikkeikin OhLiS
Nikkei Logistics
KeinaraNikkei Fujioka
Fruehauf Industries
Fruehauf Hokkaido
Fruehauf Okayama
Fruehauf Kyushu
Fruehauf Shiga
Fruehauf Service
Nikkei Engineering*2
Toyo Aluminium
Toyo Aluminium Ekco Products
Toyo Tokai Aluminium Hanbai
ALP
Toyo Aluminium Kosan
ALPHAMIC

2017

billion yen(billion yen)

180.3
11.7

173.0
10.4

95.3

94.4

4.9

5.1

2018

2019 (Fiscal year)

2017

2018

In Fabricated Products and Other
Businesses, we deal with distinctive
products that are highly valued fortheir quality. These products include
truck bodies from Nippon FruehaufCo., Ltd., commercial refrigerator
and freezer panels from Nikkei Panel
System Co., Ltd., and fabricatedaluminum products for infrastructure,including for civil engineering andconstruction, from Nikkei Engineering
Co., Ltd. We also supply anodized
aluminum foil for aluminumelectrolytic capacitors, automotive
parts, and carbon products, among
others.

88.9

3.1

3.6

The alumina and chemicals segment
manufactures aluminum hydroxide,
alumina, and various otherchemicals. These products are used
in a range of fields, including as fire
retardants, raw materials forceramics, and industrial materials forthe manufacture of pulp and paper.
The ingot segment manufactures avariety of aluminum ingots and ishighly evaluated for the developmentof highly-functional ingots that cater
to customers’ needs.

2019 (Fiscal year)

Alumina, Chemicals, and Ingot Business
Sheet and Extruded Products Business
Fabricated Products and Other Businesses
Foil and Powder Products Business

Nikkei MC Aluminum (Kunshan)
Nikkei MC Aluminum (Thailand)
Nikkei Singapore Aluminium
NI Nikkei Shenzhen
Nikkei (Shanghai) Body Parts
Nikkei Siam Aluminium
Nikkei (Shanghai) International Trading
Shandong Nikkei Conglin Automobile
Parts
Toyo Precision Appliance (Kunshan)
PT. Nikkei Trading Indonesia
Nikkei Panel System Vietnam
Fruehauf Mahajak2019 (Fiscal year)

2017

6

2016

2018

billion yen(billion yen)

111.1

2015

%

2019 (Fiscal year)

Toyo Aluminium K.K. plays theleading role in these businesses. We
have established our position as aleading manufacturer by developinga wide range of products thatincorporate aluminum’s special
characteristics and that are useful insociety, industry and everyday life.
They include packaging materials forfood and pharmaceuticals, products
for electronics, aluminum paste, andsolar cell materials. We develop new
fields by utilizing our own
technologies as the foundation andprovide a range of highly functional
materials and products in markets athome and abroad.

Nikkei MC Aluminum America
Nippon Light Metal North America
Nippon Light Metal Georgia
ToyaI America*1 Dormant companies (two companies) are excluded.
*2 This company was named Sumikei-Nikkei Engineering
during the fiscal year ended March 2020.

Nippon Light Metal Holdings Co., Ltd. 33

Data

Boundary

2017

2018

2019

Unit

Boundary
Average age

The Environment

Category 1: Purchased goods and services*5

Consolidated

Category 2: Capital goods
Category 3: Fuel and energy related activities(not included in Scope 1 or 2)
Category 4: Upstream transportation anddistribution*6

Consolidated

804
125
2.09
1,926
22

Consolidated

28

Consolidated

0

0

0

thousand tons-CO2

Category 5: Waste generated in operation

Consolidated
Consolidated

Category 7: Employee commuting

Consolidated

Electricity

Consolidated

Fuels

Consolidated

4
0
4
8.1
6.0
30.3
523
365
449
22.6
21.3
1.3
106
48.4
3.4
1,580
6,248
370

thousand tons-CO2

Category 6: Business travel

5
0
3
10.4
6.2
33.2
601
379
560
23.9
22.5
—
105
48.4
3.5
2,218
6,210
554

Greenhouse gas emissions (Scope 1, Scope 2)*1

Consolidated (Japan only)*2
Consolidated (besides Japan)*3*1

Greenhouse gas emissions per unit of sales
Breakdown of Scope 3 emissions*4

Energy consumption

Consolidated (Japan only)

606
125
1.60
1,690
42

thousand tons-CO2

34

34

thousand tons-CO2

Environmental conservation expenditure: Investment

Consolidated (Japan only)

Environmental conservation expenditure: Expenditure

Consolidated (Japan only)

Economic effect of environmental conservation activities: Earnings
Economic effect of environmental conservation
activities: Changes in expenditure*10*11

Consolidated (Japan only)

4
0
3
10.8
6.3
35.5
576
473
520
23.5
21.5
—
97
37.3
3.5
1,983
5,598
486

Consolidated (Japan only)-1,440

-982

1,027

Energy consumption intensity per unit of sales

Consolidated

Weight of raw materials used in production

Consolidated

SOx emissions

Consolidated

NOx emissions

Consolidated

Quantity of water intake*7

Consolidated

Total amount of discharged water*8

Consolidated

Water consumption*9

Consolidated

COD emissions

Consolidated

Emissions and disposal of waste and waste byproducts Recycled/Reduced

Consolidated

Disposed (landfill)
Environmental accounting

748
137
1.87
1,947
35

Consolidated

thousand tons-CO2
tons-CO2/ million yen
thousand tons-CO2
thousand tons-CO2

Average duration of service
Average annual hours worked

million m3

Average number of days of annual paid leave taken
Average rate of acquisition of annual paid leave
Number of employees who newly took childcare leave

tons

34

59

51

person(s)Consolidated (Japan only) Female

2
29.2

9
24.9

8
23.4

thousand yen/ person

2.59

2.63

2.57

%

Non-consolidated (Toyo Aluminium K.K.)

2.03

1.93

2.55

%

Consolidated (Japan only)

12
9
66
5
0.56

23
16
64
5
1.05

19
16
56
6
0.91

case(s)

0.27

0.54

0.27

Male

Consolidated

FemaleConsolidated

Male

Consolidated

FemaleConsolidated

Male

Consolidated

FemaleConsolidated (Japan only) Male
Consolidated (Japan only) Female

Number of employees who newly took nursing care leave

Consolidated (Japan only) Male
Consolidated (Japan only) Female

Number of users of the shorter working hour program

Consolidated (Japan only) Male

Number of employees who were absent from work due tomental health problems

million m3
million m3

Consolidated (Japan only) Male

FemaleConsolidated

Consolidated (Japan only) Female

tons
tons

Consolidated (Japan only) Female

Consolidated

Consolidated (Japan only) MaleGJ/ million yen
thousand tons

2019
36.9
35.3
11.1
7.2
2,226
1,922
334
175
10.3
9.1
63.9
74.3
12
52
0
2
3
83

Consolidated (Japan only) Female
Average annual overtime work hours

PJ
PJ

2018
39.9
37.4
11.8
8.0
2,157
1,871
302
150
9.9
9.6
57.8
73.4
6
66
4
2
1
66

Male

Consolidated (Japan only) Male

thousand tons-CO2
thousand tons-CO2

2017
39.1
36.9
11.5
7.7
2,146
1,974
324
161
9.9
9.7
52.5
71.6
1
55
2
1
0
61

Consolidated

Average annual amount of expenditure for education/ training

Consolidated
Non-consolidated (Nippon
Light Metal Co., Ltd.)

Employment rate of people with disabilities*17

thousand tons
thousand tons
million yen

Safetymillion yen

Number of workplace injuries*18*19

Lost-time injuries

Consolidated (besides Japan)

million yen

Non-lost-time injuries

million yen

Consolidated (Japan only)
Consolidated (besides Japan)

Unityears oldyears old
years
years
hours/ person
hours/ person
hours/ person
hours/ person
days
days
%
%
person(s)person(s)person(s)person(s)person(s)person(s)person(s)case(s)case(s)case(s)Number of cases of lawsuits, penalties, orforfeitures related to the environment

Consolidated

0

0

0

case(s)Number of accidents related to the environment*12

Consolidated
Consolidated

0
10

0
16

3
10

case(s)Number of complaints related to the environment*13

190
0
1,540
90
8,992
2,233
12,855
8,058
1,198
2,243
1,089
231
36
—
—
—
—
—
—
—
—
—
—
—
—
—
—
596
7.1
197
401
3.5
88.4

208
0
1,640
95
9,087
2,494
13,316
8,399
1,271
2,282
1,095
229
40
0
0
108
15
2,153
559
3,150
833
2,878
671
1,975
276
646
52
692
7.8
211
490
5.6
83.8

216
1
1,666
96
9,345
2,504
13,611
8,568
1,323
2,221
1,239
222
38
0
0
108
21
2,124
600
3,164
894
2,919
741
2,010
284
686
60
617
6.2
210
490
5.0
89.1

person(s)Number of cases that were reported to NIKKEI HOTLINE

Consolidated

15

28

29

person(s)Compliance meeting

Number of times the meeting was held

Consolidated

2,102

2,066

2,156

times

Number of participants

Consolidated

20,237

20,972

21,404

total number

8

8

12

person(s)

100

100

100

%

Number of employees*14

Number of employees by country/region

Full-time directors

Consolidated

Male

Consolidated

FemaleEmployees (managerial employees)

Consolidated

Male

Consolidated

FemaleEmployees (regular employees)

Consolidated

Male

Consolidated

FemaleEmployees

Consolidated

Total

Japan

Consolidated

Male

Consolidated

FemaleConsolidated

Male

Consolidated

FemaleAsia
U.S. and Europe

Consolidated

Male

Consolidated

FemaleNumber of employees in each age group*15 under 15 years old

Consolidated

Male

Consolidated

Female15 to 19 years old

Consolidated

Male

Consolidated

Female20 to 29

Consolidated

Male

Consolidated

Female30 to 39

Consolidated

Male

Consolidated

FemaleConsolidated

Male

Consolidated

FemaleConsolidated

Male

Consolidated

FemaleConsolidated

Male

Consolidated

Female40 to 49
50 to 59
60 or older
Number of new hires

Total

Consolidated (Japan only)

Percentage to employees

Consolidated (Japan only)

Number of new graduates who were recruited
Number of employees who leftThree-year retention rate*16
Number of those who were re-employed after retirement
Labor Union participation rate

34 Corporate Social Responsibility Report 2020

Consolidated (Japan only)
Total

Consolidated (Japan only)

Percentage to employees

Consolidated (Japan only)
Consolidated (Japan only)
Non-consolidated (Nippon
Light Metal Co., Ltd.)
Non-consolidated (Nippon
Light Metal Co., Ltd.)

Consolidated
Non-consolidated(Nippon Light Metal Co., Ltd.)case(s)Compliance

Employees, etc.
Number of directors

Frequency rate of lost-time injuries*18*20

person(s)case(s)person(s)Number of patent publications*18

Consolidated

Number of patent registrations*18

Consolidated

182
107

167
92

160
81

case(s)person(s)Number of violations of laws or regulations in theprovision of products/services

Consolidated

0

0

0

case(s)Number of prompt reports

Consolidated
Consolidated

8
4

7
3

case(s)Number of recalls

6
2

Consolidated

133

168

179

million yen

Consolidated

8

9

9

yen

person(s)person(s)person(s)person(s)person(s)person(s)Quality assurance

person(s)Community

person(s)Expenditure related to social contribution

person(s)Governanceperson(s)person(s)person(s)person(s)person(s)person(s)person(s)person(s)person(s)person(s)person(s)person(s)person(s)person(s)%person(s)person(s)%%case(s)Interim and year-end dividend per sharecase(s): We have received independent assurance by KPMG AZSA Sustainability Co., Ltd. regarding the reliability of the data.
*1.
*2.

In FY2018, we began to compile statistics on greenhouse gas emissions from our main offices.
The following CO2 emission factors were used for the calculations.
Electricity consumed in Japan: The CO2 emission factor with T&D losses of each previous fiscal year announced by the Electric Power Council for a Low Carbon Society
Fuel consumed in Japan: The CO2 emission factor for each fuel is set by a ministerial ordinance from the Ministry of the Environment*3. The following CO2 emission factors were used for the calculations.
Electricity consumed overseas: CO2 emission factors of the respective countries shown in CO2FCOMB 2017 from the IEA
Fuel consumed overseas: Same as fuel in Japan in *2*4. The emissions are calculated by multiplying the activity amount by the CO2 emission factor published by the Ministry of Economy, Trade and Industry and the Ministry of theEnvironment.
*5. The Scope 3 Category 1 emissions are calculated based on the volume of purchase of the top three items in terms of volume purchased from outside of the group. Of the items, thealuminum ingots are those purchased by Nippon Light Metal Group Metal Center.
*6. Reviewing the standard of calculating emissions in Category 4, and the values for FY2017 and FY2018 were corrected accordingly.
*7. The seawater intake quantity is not included.
*8. Reviewing the standard of calculating the amount of discharged water, and the values for FY2017 and FY2018 were corrected accordingly.
*9. Began to be calculated in FY2019*10. Changes in expenditure are calculated using the following formula: Changes in expenditure = expenditure incurred during a base period (FY2018) – expenditure incurred during thecurrent year (FY2019)*11. - (minus) indicates an increase in expenditure.
*12. Environmental problems that affect external parties (such as the leakage of oil or chemicals)*13. Number of petitions from external parties (such as those regarding smell and noise)*14. Fixed-term (full-time) employees are included.
*15. Consolidated values began to be reported in FY2018.
*16. Percentage of employees who are still at the company as of April 1 in the year that is three years after they joined the company*17. As of June 1 immediately after the end of each fiscal year. The statutory employment rate is 2.2% (was 2.0% until March 31, 2018).
*18. The subject period is calendar year (January to December).
*19. The values for lost-time injuries (consolidated (besides Japan)) and non-lost-time injuries (consolidated (Japan only)) for FY2017 were incorrect and were therefore corrected.
*20. Injuries that resulted in one or more days’ absence from work (excluding commuting injuries)

Nippon Light Metal Holdings Co., Ltd. 35