Contents/Editorial Policy

Message from the President

Nikon Group Profile

Nikon’s Sustainability

Business Activity

Environment＞ Our Approach to Sustainability

Society/Labor＞ Sustainability Promotion SystemGovernance＞ Stakeholder Engagement

Corporate Citizenship Activities＞ Sustainability Materiality

Stakeholder Engagement
Basic Approach● Main Forms of Engagement with Stakeholders
Main Stakeholders

For a company to fulfill its social responsibility, it must disclose
its own policies and results to stakeholders in addition totaking feedback and expectations seriously and constantly
improving its own activities. Stakeholder engagement isessential for achieving this. The Nikon Group strives to achieve
reciprocal communication with stakeholders including
customers, shareholders, employees, business partners,and society as a whole. We also work to maintain anddevelop healthy relationships with them through a variety ofopportunities and methods.

Customers

Shareholders

Methods of Engagement

Objectives

・Call centers and service counters (as required)・Responses to customers by departments in charge of sales/services (as required)・Sharing of information via the website and other methods (as required)・Exhibitions/events (several times a year)
・News releases via mass media and other methods (as required), etc.
・General Shareholdersʼ Meeting (once a year)
・Announcements (as required)・Publishing of various types of printed materials including the NIKON REPORT andinterim reports (once a year), etc.

・Sharing of information via the website and other methods (as required)・Financial Results Conference (four times a year)
・Responding to ESG investment (as required), etc.

Timely and appropriate disclosure of information, acquisition of appropriate
evaluation and support from capital markets, fair and highly transparent corporate
management, appropriate return of profits

・Sharing of information via company newsletters, the Group portal site and othermethods (as required)・Labor and management conferences, and conferences with employee-elected

representatives (as required)

Employees

・Reporting and Consulting System (as required)・Conducting human rights and labor standards surveys at the Group companies(once a year)

Active utilization of diverse human resources, provision rewarding work
and workplace environment, proper treatment of workers, enhancement ofoccupational safety and mental health, positive labor-management relationships

・Conducting employee awareness surveys and questionnaires (once every one to● Nikon Groupʼs Main Stakeholders

Customers

Provision of high quality, high value-added products and services, response to
feedback and requests, and provision of appropriate information on products
and servicestwo years)

・Presidentʼs Town-hall Meetings, etc. (as required)

Ordinary consumers
Corporations
Government agencies

Business partners

・Dialog through everyday business activities (as required)・Meetings with procurement partners (once a year)
・Briefings/surveys/audits/correctional support for procurement partners on CSRprocurement(as required)・Survey/assessments of the establishment of environmental management systems

Mutual development through provision of products and services that are useful tosociety, fair business relationships, smooth sharing of information, joint researchand development, and CSR procurement(as required), etc.

Society

Shareholders

Employees

Nikon Group

Shareholders
Investors

Employees
Labor unions

・Participation in local events (as required)・Collaboration with NGOs/NPOs in Corporate Citizenship Activities (as required)・Participation in economic and industry organizations (as required)・Consultations with governmental agencies, academic societies/researchorganizations (as required)・Issuing of the Nikon Sustainability Report (once a year), etc.

Compliance with laws and regulations, participation in industry-governmentacademia collaboration projects, participation in the community as a corporate
citizen, contribution to technology development through support for researchorganizations, and enhancement of our activities through partnerships● Main Affiliated Organizations Related to Sustainability (As of March 31, 2023)
Organization Name

Suppliers
Business partners
Alliance partners

BusinesspartnersSociety
Local communities
NGOs/NPOs
Government and international organizations
Industry organizations

Joint Article Management Promotion-consortium (JAMP)

Japan Machinery Center for Trade and Investment (JMC)

Global Compact Network Japan (GCNJ）

Institute of Business Ethics (IBE)Business Ethics Research Center (BERC)

Japan Business Council in Europe (JBCE)(CSR Committee)

Japan Electronics and Information Technology Industries Association (JEITA)(CSR Committee, Environment Committee, and Responsible Minerals Trade Working Group)

Responsible Business Alliance (RBA)

Keidanren (Japan Business Federation)(Committee on Responsible Business Conduct and SDGs Promotion)

Responsible Minerals Initiative (RMI)

Platform for Learning Innovation - Japan (PLIJ)SEMI Japan(SDGs/Sustainability Committee)

The four Japanese electric and electronic (E&E) industrial associations, JEITA, CIAJ, JBMIA and JEMA(The Expert Committee on Chemical Substances in Products, Expert Committee on Waste and Recycling
Measures Relating to Business Facilities, Expert Committee on Chemical Substance Measures Relating toBusiness Facilities, and Biodiversity Working Group)

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Contents/Editorial Policy

Message from the President

Nikon Group Profile

Nikon’s Sustainability

Business Activity＞ Our Approach to Sustainability

Engagement with Employees
The Nikon Group believes that it is very important for every
employee to share the companyʼs vision, to be committed tothe companyʼs policies and plans, and to work proactively toput them into effect.
In fiscal year 2022, a special site was set up within our portalsite to communicate the newly announced Medium-Term
Management Plan to employees, including three videos
of discussion with the president about the plan and histhoughts on it, among others.
The President's Town Hall Meeting 2022 was also held as in
the previous year. In Japan, a total of three meetings were
held where the president and representatives selected fromeach unit actively exchanged opinions. The live broadcast
was accessed a total of 1,200 times, and many employees
watched the recorded content, including videos they missed
that could be viewed on demand. A total of nine town hallmeetings for Group companies outside Japan were also heldin an online format. During the discussions between thepresident and representatives of each company, questions
and opinions related to the Medium-Term Management Plan
were exchanged.
Separately, we continue to actively disseminate information
through the Group portal site, internal newsletters, and e-mails.

Environment

Society/Labor＞ Sustainability Promotion System

Engagement with Shareholdersand Investors
Nikon set a goal of capital market-oriented management
and has been focusing on investor relations activities thatemphasize dialogue with shareholders and investors.
We firmly believe that for Nikon, which aims to achievesustainable growth in its corporate value, engagement (i.e.,
objective- focused dialog) with shareholders and investors is avaluable opportunity to hear views from diverse perspectives.
We hold interviews with a total of approximately 500
shareholders, institutional investors and analysts both within
and outside Japan throughout the year. In fiscal year 2022,
we continued to announce quarterly financial results via awebcast. Moreover, we held our first IR Day the current fiscal
year as an opportunity to provide a deeper understandingof Nikon, and the general manages responsible as headsof the various business units explained the financial targets
and strategies of the businesses in our Medium-Term
Management Plan announced in April 2022. In addition to theonline format, top management has quickly resumed faceto-face meetings inside and outside Japan to listen directly
to opinions from shareholders and institutional investors.
In this way, we have redoubled our efforts to disseminate
information regarding the current state of the companyʼsoperations in a timely, appropriate manner, throughconstructive dialog with large numbers of institutional
investors and analysts. The feedback and advice that theNikon Group has received from shareholders and investors
has provided the Group with many useful suggestions
that the Group can utilize when implementing our growthstrategies, business management and restructuring, etc. In
particular, we have engaged in frank, wide-ranging exchangesof opinion with investors who are focused on a long-term

Governance＞ Stakeholder Engagement

Corporate Citizenship Activities＞ Sustainability Materiality

perspective, covering matters such as contributions towards
addressing social issues through business activities, financial
strategies regarding capital allocation, and ESG-related issues(particularly governance). We can make effective use of theseopinions when reflecting on our business management andconsidering our strategies, by sharing them with the Board ofDirectors and the Executive Committee on a regular basis.
Going forward, Nikon aims to enhance its engagement withshareholders and investors in terms of both quality andquantity. In addition, we will listen carefully to stakeholdersʼ
hopes and expectations, and will make effective use of what
we have learned to improve our business management.

Video of an internal presentation discussion about the Medium-Term
Management Plan

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Contents/Editorial Policy

Message from the President

Nikon Group ProfileNikon’s Sustainability

Business Activity

Environment＞ Our Approach to Sustainability

Society/Labor＞ Sustainability Promotion SystemGovernance＞ Stakeholder Engagement

Corporate Citizenship Activities＞ Sustainability Materiality

External Evaluation
As a business enterprise that adopts a proactive stancetowards sustainability activities, the Nikon Group has received
positive evaluations from a variety of external organizations.
● Inclusion in ESG Investment Indexes (As of June 30, 2023)

ESG Investment Index
FTSE4Good Index Series

ECPI Indices

SOMPO Sustainability Index

FTSE Blossom Japan Index*1

MSCI Japan ESG Select Leaders Index*1 *2

Dow Jones Sustainability Indices DJSIWorld and DJSI Asia PacificSelected/Overview
Selected: Since 2004
The ESG Investment Indexes by FTSE Russell, wholly owned by theLondon Stock Exchange

Selected: Since 2011ECPI is a company based in Milan and Luxembourg that produces
research, ratings and indices on companiesʼ ESG performance
Selected: Since 2013
The SOMPO Sustainability Index is a socially responsible investment
product that enables pension funds and other institutional investors
to invest broadly in companies with high ESG evaluations
Selected: Since 2017
FTSE Blossom Japan Index is designed to reflect the performance ofJapanese companies with excellent track records in terms of ESG
Selected: Since 2017MSCI Japan ESG Select Leaders Index selects companies from varioussectors with excellent ESG practices from among the top 500 Japanesestocks in terms of market capitalization

ESG Investment Index
S&P/JPXCarbon Efficient Index*1

S&P Japan 500 ESG index

Selected/Overview
Selected: Since 2018
The S&P/JPX Carbon Efficient Index is an index that uses TOPIX, therepresentative stock index for the Japanese market, as its securitiesuniverse and selects composite stocks with a focus on disclosure ofenvironmental information and level of carbon efficiency
Selected: Since 2019The S&P Japan 500 ESG Index is one of the S&P 500 ESG Index series, which
was newly announced by S&P Dow Jones Indices LLC, with the mainindices in Japan as its universe

MSCI Japan Empowering Women
Index*1 *2

Selected: Since 2019
The MSCI Japan Empowering Women Index selects companies in various
industries that have demonstrated superior gender diversity performance,from among the 500 listed Japanese companies with the highest market
capitalization

FTSE Blossom Japan Sector RelativeIndex*1

Selected: 2022
It is designed to measure the performance of Japanese companies that
demonstrate relative environmental, social, and governance excellence intheir respective sectors*1 Selected as an ESG index by the Government Pension Investment Fund, or GPIF.
*2 The inclusion of Nikon Corporation in any MSCI index, and the use of MSCI logos, trademarks, service marks or index names herein, does notconstitute a sponsorship, endorsement or promotion of Nikon Corporation by MSCI or any of its affiliates. The MSCI indexes are the exclusive propertyof MSCI. MSCI and the MSCI index names and logos are trademarks or service marks of MSCI or its affiliates.

Selected: Since 2018
Every year, the sustainability of major global companies is quantified
from three perspectives: economy, environment, and society. Basedon the results of evaluation by industry, approximately the top 10%
are selected for DJSI World and approximately the top 20% in theAsia-Pacific region are selected for DJSI Asia Pacific

NIKON SUSTAINABILITY REPORT 2023018

Contents/Editorial Policy

Message from the President

Nikon Group ProfileNikon’s Sustainability

Business Activity＞ Our Approach to Sustainability

Environment

Society/Labor＞ Sustainability Promotion SystemGovernance＞ Stakeholder Engagement

Corporate Citizenship Activities＞ Sustainability Materiality● ESG Evaluation (As of April 06, 2023)

Rating

Evaluation/Overview

CDP Climate Change A List and CDP
Supplier Engagement Leader

CDP is an NPO whose main activities include requesting that businessenterprises and local government authorities disclose information
relating to the measures they have taken to address environmental issues,
including climate change strategies, waste resource conservation, forest
conservation, etc., in line with requests from global institutional investors
etc., who are concerned about the environment, and also promoting
increased adoption of measures of this type. Organizations that secure
an A rating (the highest possible rank) in relation to climate change areincluded in the CDP Climate Change A List. The CDP awards the title ofSupplier Engagement Leader to global leaders that collaborate eﬀectively
with suppliers in relation to climate change

AAA MSCI ESG Rating

The MSCI ESG Ratings adopt a seven-point scale from "AAA" to "CCC,"ranking a company's ESG performance according to industry-specific ESG
risks and its ability to manage those risks relative to its industry peers. In2023, we obtained AAA, the highest possible rating

Sustainability Yearbook 2023 Top1% S&P Each year, S&P Global evaluates the sustainability of the world's leading
Global ESG Score
companies from three perspectives: economy, environment, and society.
It then selects and honors those companies that receive particularly
exceptional scores. The Top 1% S&P Global ESG Score recognizes
companies that score within 1% of the highest scoring company in eachindustry group with a score of 60 or higher＊ THE USE BY NIKON CORPORATION OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS,SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF NIKONCORPORATION BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED ʻAS-ISʼ ANDWITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.

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