Materialities and our initiatives

The process to identify materialities at our Group is as follows: the 34 GRI Standard items are set as the basic key issues (materialities) that we should engage in as management; after which a matrix using the axes of "Importance to Stakeholders" and "Importance to Our Group" is created through discussions at the Sustainability Committee, the materialities that the Group should engage with are finally categorized into five elements (22 items), the "Materialities to be Addressed."

The identified 22 materialities to be addressed are categorized into the three sub-concepts in our long -term vision, "NFC VISION 2030", and then specific actions, KPIs (Key Performance Indicators), and numerical goals are set.

NFC VISION 2030	Materialities	Initiatives	KPIs (Key Performance Indicators)	Numerical Goals	SDGs
Sustaining the KIREI of the future through diversity-driven innovation	Human Rights	Be a company where female can play an active role	- Ratio of female employees - Ratio of females in management	- With the aim of having 30% or more ratio of females in management by the 2030s, the goals are to have 20% or more ratio of female employees, as well as 15% or more ratio of females in management and management candidates by FY 2027.
		Be a workplace where people can work equally regardless of disability	- Ratio of disabled people hired ※1	- The goal is to have 2.5% or more ratio of disabled people hired by the end of FY 2023.
		Achieve work-life balance by supporting child-rearing and long-term care	- Ratio of child-care leave taken ※1 - Specific measures for long-term care	- The goal is to take 70% or more ratio of child-care leave by the end of FY 2025. - The specific measures for long-term care are considered.
	Environment	Develop products that can be co-existed with environment	- Amount of R&D investment - Number of patents	- The goal is to have 4.4% of sales or more amount of research and development investment every fiscal year during FY 2023 to 2026. - The goal is to apply 75 patents over the five years between FY 2022 and 2026.
Sustaining the KIREI of the Earth through sustainable manufacturing		Develop products that can be co-existed with environment	- Amount of R&D investment - Number of patents
		Reduce emissions of substances targeted by the PRTR System	- Amount of emissions of substances targeted by the PRTR System	- With the aim to reduce the amount of movement by 50% or more compared to FY 2020 by the end of FY 2030, the specific studies are carried out.
		Contribute to achieving a carbon-neutral society	- Amount of greenhouse gas emissions ※1	- The specific studies are carried out to meet the government target of reducing CO2 emissions in the industrial sector by 38% of FY 2013 levels by 2030, based on the goal of achieving carbon neutrality by 2050.
		Reduce industrial waste and promote resource recycling	- Amount of industrial waste generated ※1 - Recycling rate ※1	- The specific studies are carried out to reduce the generated amount of industrial waste by 20% or more compared to FY 2019 by the end of FY 2030. - The specific studies are carried out to achieve 90% or more recycling rate by the end of FY 2030.
		Strengthen the effective use of water resources	- Amount of water used ※1 - Amount of effluent ※1	- The specific studies are carried out to reduce the used amount of water by 10% or more compared to FY 2019 by the end of FY 2030. - The specific studies are carried out to reduce the amount of effluent by 10% or more compared to FY 2019 by the end of FY 2030.
Sustaining the KIREI of communities through compliance, safety, and actions that ensure peace of mind	Compliance	Strengthen compliance	-Number of serious compliance violations ※2 - Rate of compliance training session attendance	- The goal is to achieve zero occurrence of a serious compliance violation. - The goal is to achieve 100% attendance rate of compliance training session.
	Occupational Health and Safety	Prevent workplace accidents and ensure health and safety for workers	- Number of workplace accidents ※1 - Rate of stress check implementation	- The goal is to achieve zero occurrence of workplace accidents every fiscal year. - The goal is to achieve 90% or more implementation rate of stress check every fiscal year.
	Product Safety & Quality	Contribute to society through safe and reliable products	- Number of quality claims	-The goal is to reduce the number of quality claims by 50% from that of previous fiscal year in each fiscal year.