Contents/Editorial Policy

Message from the President

Nikon Group Profile

Nikon’s Sustainability

Business Activity＞ Our Approach to Sustainability

Environment

Society/Labor＞ Sustainability Promotion SystemGovernanceCorporate Citizenship Activities＞ Stakeholder Engagement＞ Sustainability Materiality

Sustainability Promotion SystemSystem
In order to effectively implement the Sustainability
Policy, the Nikon Group has established the Sustainability
Committee, chaired by the Representative Director andPresident, and with the officer in charge of the Corporate
Sustainability Department as the vice chair. Its members
are comprised of members of the Executive Committeeand all general managers responsible as heads of thebusiness units and divisions, with related department
managers participating as observers.
The committee deliberates on overall management anddecision-making related to sustainability activities, including
identifying materialities, setting goals for materiality issues,
managing the progress of each measure, evaluating
performance, and directing improvements. We also monitor
overall sustainability risks with a focus on materiality.
In addition, to properly respond to risks that might critically
impact corporate management, the Nikon Group has setup the Risk Management Committee, which also identifies
and takes other actions against risks to the Nikon Group
based on risk identification surveys in coordination with theSustainability Committee.
In principle, the Sustainability Committee meets twice a year.
In fiscal year 2022, it met four times. At the same time, lecturesby experts and discussions are held at this committee's
meetings to enhance each member's knowledge of global
social issues and trends. Deliberations at this committee
are reported at least once a year to the Board of Directors,
which manages and supervises the appropriateness andeffectiveness of activities as well as associated risks.
The Environmental Subcommittee and the Supply
Chain Subcommittee have been established under theSustainability Committee.

● Sustainability Promotion System (As of March 31, 2023)

Board of Directors

Supervision and Report
Collaboration and Cooperation
Coordination System (collaboration, request, report)
Secretariat

Corporate Sustainability
Department

Representative Director and President

Sustainability Committee

Nikon Business Units and Corporate Administration Divisions

Regional Headquarters(CSR/Sustainability
Department)Group companies in the Americas,
Europe and Asia/Oceania
Compliance and SustainabilityCoordinatorGroup companies
in Japan/Korea

Environmental Management Promotion System（➡ p.055）
Supply Chain Management（➡ p.097）
Risk Management（➡ p.143）

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Contents/Editorial Policy

Message from the President

Nikon Group Profile

Nikon’s Sustainability

Business Activity＞ Our Approach to Sustainability

Promotion System at Group Companies
Outside JapanThe Nikon Group has established a sustainability department
at each regional headquarters, in order to advanceconsistent sustainability initiatives across the Groupcompanies while taking into account the characteristics
of each region where they are located, including culture,customs, language, etc. We divide the geographic areas
where we operate into four regions (excluding Japan),and the sustainability departments of Nikon and ofeach regional headquarters puts in place systems forthe promotion of sustainability within their jurisdiction.
Furthermore, a Compliance and Sustainability Coordinatoris appointed at each company to ensure collaboration.
In addition, a Sustainability Global Communication Meetingis held once a year, with participants representing the CSR/
sustainability department at each regional headquarters.
At this meeting, information regarding social trends in eachregion, progress made in sustainability activities, and issues
that need to be addressed, is shared and discussed. In fiscal
year 2022, this meeting was held in the U.S. In particular, aforum was established for exchanging opinions with local
Group company stakeholders about DEI, and intensive
discussions were held on how to strengthen future initiatives.

Environment

Society/Labor＞ Sustainability Promotion SystemGovernanceCorporate Citizenship Activities＞ Stakeholder Engagement＞ Sustainability Materiality

Activities Aimed at Raising
Employeesʼ Sustainability AwarenessParticipation in InternationalInitiatives

The Nikon Group publishes a quarterly newsletter in 14
languages covering activities related to the SDGs andsustainability-related news within and outside the Group, withthe aim of raising sustainability awareness among employees.
In addition, a sustainability page has been established on
our Group portal site (Japanese), with new content posted
every two weeks regarding sustainability awareness-raisingand the current status of related Group activities. In thefiscal year 2022, we disseminated information on various
themes, including biodiversity, human rights, compliance,and corporate citizenship activities, to raise awareness andencourage employee participation in activities.
Furthermore, Nikon held a talk event about SDGs in theworkplace in Japan for employees in Japan using a web
conferencing system. To provide an opportunity for people
to become familiar with sustainability and to think about theconnection between their work and the SDGs, employees
from different business units were invited to appear on stage
each time to introduce initiatives at their workplaces.

The Nikon Group aims to enhance the optimization andeffectiveness of its activities by working together with various
groups through involvement in international initiatives.
Participation in Environmental Initiatives and Outreach to Society（➡ p.054）

Joining the UN Global Compact
Nikon became a signatory to the UN Global Compact(UNGC) in 2007. We respect the ten principles covering thefour areas of human rights, labor, environment and anticorruption. Through the UNGC, the Nikon Group acquires
a global perspective on social challenges as well as gaining
opportunities to share information with other companies andbuild a network with experts.

Sustainability Newsletter

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Contents/Editorial Policy

Message from the President

Nikon Group Profile

Nikon’s Sustainability

Business Activity＞ Our Approach to Sustainability

Environment

Society/Labor＞ Sustainability Promotion SystemGovernance＞ Stakeholder Engagement

Corporate Citizenship Activities＞ Sustainability Materiality● Main Achievements for the Fiscal Year 2022 in Relation to the Ten Principles of the UN Global Compact
Principle

PolicyNikon Human Rights Policy

Human rights/Labor

1・2/3・4・5・6

Jurisdiction

Achievements
Disseminated a message from the president to all Nikon Group employees on Human Rights Day. In addition, human rights events and human rights e-learning programs were held in Japan.
Furthermore, the communication handbook for deepening consideration of human rights in advertising and promotions was updated and disseminated to those in charge.

Sustainability Committee

Nikon CSR Procurement
Standards
Supply Chain Subcommittee
Responsible Minerals Sourcing
PolicyEnvironment

Anticorruption

In addition to conducting 3TG surveys of products in all business units, in fiscal year 2022, the scope of the cobalt survey was expanded to include a cumulative total of four business units. Published
the Responsible Minerals Sourcing Report and the list of smelters that are either 3TG/cobalt conformant or undergoing surveys.

Nikon Long-Term Environmental
VisionEnvironmental Subcommittee

Deployment throughout the Group of Environmental management systems and implementation of initiatives. In fiscal year 2022, we reviewed our Nikon Medium-Term Environmental Goals inconjunction with materiality inspections and formulated the Environmental Action Plan accordingly.

Nikon Green Procurement
Standards

Supply Chain Subcommittee

Conducted our triennial environmental management system survey in accordance with risks of chemical substances occurring in materials used, components, and processes. Also conductedenvironmental management system assessments to confirm the establishment and management of environmental management systems. In fiscal year 2022, we conducted assessments for 59
procurement partners. As a result, 31 companies were newly certified as environmental partners (total number of certified environmental partners: 456).

Nikon Anti-Bribery Policy

Compliance Committee

Confirmation of the operation of anti-bribery guidelines using a self-inspection sheet. In fiscal year 2022, we began work on revising the Anti-Bribery Guidelines to reflect the latest social trends andbusiness realities. In addition, education on anti-bribery was provided to Nikon Group employees.

7・8・910Conduct CSR assessment, audits, and corrective actions once every three years for procurement partners that are selected based on risk assessment from various perspectives. In the current fiscalyear, the CSR questionnaire was revised in consideration of the RBA's SAQ, and the CSR questionnaire diagnosis was conducted for seven new procurement partners and 10 key partners (Tier 2suppliers and beyond). In addition, CSR audits were conducted for two procurement partners and improvements were requested.

Initiatives for RBA
With the aim of enhancing sustainability both within theNikon Group and in the supply chain, Nikon joined theResponsible Business Alliance (RBA)*1 in May 2018. The RBA
has established the RBA Code of Conduct to ensure thatworking environments remain safe and workers are treatedwith respect and dignity, while also setting standards for thefulfillment of environmental and ethical responsibilities within
the supply chains of all member companies.
In fiscal year 2022, we conducted education and assessmentson the RBA Code of Conduct at 18 manufacturing facilities
inside and outside Japan to ascertain the status of compliancewith the RBA Code of Conduct for the entire Group. Theresults were reviewed by the Corporate Sustainability
Department, which provided feedback to improve andresolve issues at the respective business facilities. In fiscal year
2023, we plan for a Group-wide effort to improve and resolve
issues identified in assessments.
In August and September of 2022, the RBA VAP*2 audit
was carried out at Kumagaya Plant, the first such audit forNikon. It was carried out by an RBA-dispatched auditor andcovered all applicable categories of labor, health and safety,environment, and ethics. Results revealed generally goodlevels for each. For the issues identified, we will formulate
and carry out a voluntary improvement plan, and undergoa re-audit of items improved during the first half offiscal year 2023, after which the final audit results will bedetermined. With a sincere approach to the audit results,
we will maintain our process of continuous improvement
to promote compliance with RBA's Code of Conduct.
In addition, Nikon is implementing measures to foster

compliance with the RBA Code of Conduct throughout thesupply chain. For example we ask procurement partners toimplement the RBA self-assessment and making effective
use of relevant educational materials. In fiscal year 2022,
the questionnaire was revised to enable a rigorous
understanding of the status of each company's CSR-relatedinitiatives and risks.
*1 The Responsible Business Alliance (RBA) is an international industry coalition dedicatedto corporate social responsibility in global supply chains (labor, occupational health andsafety, environment and ethics). Initially, the RBA was founded primarily by three leading U.S.
electronics companies; its membership has since expanded to include firms in the automotive,
retail and toy manufacturing sectors, among others.
*2 Validated Assessment Process (VAP): An audit to verify compliance with the RBA's Codeof Conduct for labor, health and safety, environment, and ethics, conducted by an audit
organization accredited by the RBA.

Promoting CSR Procurement（➡ p.101）

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