Materialities and our initiatives

Process to Identify Materialities

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."

Materialities Matrix

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.

Materiality ( Key Issue ) Numerical Goals for FY2026

* N: Nippon Fine Chemical, A: ARBOS, B: NISSEI BILIS,
P: NISSEI PLAS-TECH, S: Sichuan Nipo Fine Chemical

NFC VISION 2030	Materialities	Initiatives	KPIs (Key Performance Indicators)	Participating Companies*	Numerical Goals	SDGs
Sustaining the KIREI of the future through diversity-driven innovation	Human Rights	Be a company where women can play an active role	- Ratio of female employees	N, B, P	- The goal is to have 20% or more ratio of female employees by FY2027.
			- Ratio of females in management	N, A, B, P, S	- The goal is to have 30% or more ratio of femailes in management by the 2030's.
		Be a workplace where people can work equally regardless of disability	- Ratio of disabled people hired	N, A, B	- The goal is to have 2.7% or more ratio of disabled people hired by the end of FY2026.
		Achieve work-life balance by supporting child-rearing and long-term care	- Ratio of child-care leave taken	N, A, B, P	- The goal is to take 70% or more ratio of child-care leave by the end of FY2026.
	Environment	Develop products that can co-exist with the environment	- Amount of R&D investment	N, A, B	- The goal of amount of research and development is to have 2.7% or more of consolidated sales every fiscal year during FY2025 to FY2026.
Sustaining the KIREI of the Earth through sustainable manufacturing			- Number of patents	N, A	- The goal is to apply 85 patents over the five years between FY2022 and FY2026.
		Reduce emissions of substances targeted by the PRTR Register	- Amount of emissions of substances targeted by the PRTR Register	N	- The goal is to reduce the amount of movement by 50% or more compared to FY2020 by the end of FY2030.
		Contribute to achieving a carbon-neutral society	- Amount of greenhouse gas emissions	N, A, B, P	- The goal is to reduce emissions by 41.5% compared to FY2018 by FY2030.
				S	- The goal is to reduce emissions by 2% compared to FY2018 by FY2030.
		Reduce industrial waste and promote resource recycling	- Amount of industrial waste generated - Recycling rate	N, A	- The goal is to reduce the generated amount of industrial waste by 20% or more compared to FY2019 by the end of FY2030. - The goal is to achieve 90% or more recycling rate by the end of FY2030.
		Strengthen the effective use of water resources	- Amount of water used - Amount of effluent	N, A, B	- The goal is to reduce the used amount of water by 10% or more compared to FY2019 by the end of FY2030. - The goal is to reduce the amount of effluent by 10% or more compared to FY2019 by the end of FY2030.
				S	- The goal is to reduce the used amount of water by 5% or more compared to FY2024 by the end of FY2030. - The goal is to reduce the amount of effluent by 5% or more compared to FY2024 by the end of FY2030.
Sustaining the KIREI of communities through compliance, safety, and actions that ensure peace of mind	Compliance	Strengthen compliance	-Number of serious compliance violations	N, A, B, P, S	- The goal is to achieve zero occurrence of a serious compliance violation.
	Occupational Health and Safety	Prevent workplace accidents and ensure health and safety for workers	- Number of workplace accidents	N, A, B, P, S	- The goal is to achieve zero occurrence of workplace accidents every fiscal year.
			- Rate of abnormal findings in health checkup results - Rate of not-high-stress assessment result in stress check	N	- The goal is to reduce the rate of abnormal findings in health checkup results (including those requiring follow-up) to 70% or less by the end of FY2030. - The goal is to maintain 85% or more rate of not-high-stress assessment result in the stress check each fiscal year.
	Product Safety and Quality	Contribute to society through safe and reliable products	- Complaint recurrence rate - Complaint resolution rate within the specified timeframe	N	- The goal is to achieve 0% recurrence rate for complaints of the same nature over the past three years. - The goal is to achieve a complaint resolution rate of 80% or more within one month upon receiving the corresponding complaint.

• The goals and performance in FY2025.
• The goals and performance in FY2024.
• The goals and performance in FY2023.
• The goals and performance in FY2022.