Basic Principle
Management Philosophy
We recognize our responsibility to society and offer beneficial products and services while maintaining the highest standards of integrity. Through our growth, we will contribute to society and enrich the lives of our employees.
NAGASE's Ideal State
NAGASE — Contributing to the well-being of people and the planet by solving challenges faced by our customers and society through materials
NAGASE Group Slogan
Our tagline reflects our commitment to building what's ‘next' step by step with our stakeholders, leading the way to a better future together.
Sustainability Basic Policy
Our efforts to address sustainability challenges are aligned with the NAGASE Group’s management philosophy, “Maintaining the highest standards of integrity,” and our vision: “Through materials, we solve challenges faced by our customers and society, and contribute to the well-being of people and the planet.”
We recognize that sustainable growth is made possible by continuing corporate activities that contribute to solving social and environmental issues. Accordingly, we have established our Sustainability Basic Policy and are actively working to implement it.
NAGASE Group Sustainability Basic Policy
1. Integrity in Business Activities
- We shall conduct our corporate activities in compliance with all applicable national and regional laws and regulations, and in keeping with societal norms and common sense.
- We shall strive to prevent corruption of all kind and maintain healthy and proper relations with our partners and government entities.
- We shall strive to to provide safe, high-quality products and services, and seek to maintain and improve the value to our customers and partners.
- We shall safeguard the benefit to the consumer through maintaining and promoting fair and free competition.
- We shall strive toward rigorous management and protection of information about our customers and our company.
2. Positive Relations with Society
- We respect human rights and do not permit any sort of discriminatory conduct. We absolutely refuse to accept infringements of human rights such as forced labor or child labor.
- We respect the cultures and practices of national and regional societies, and maintain positive relations with society.
- We shall strive to ensure health, safety, and appropriate communication with our diverse stakeholders.
- We shall constantly pay detailed attention to sustainability among our suppliers, and shall work to make corrections should there be any doubt to their sustainability.
- We shall proactively disclose corporate information as appropriate.
3. Consideration for the Environment
- We shall comply with national and regional environmental regulations.
- We shall contribute to the maintenance of the global environment, including limiting climate change and preventing contamination, promoting reduction in the environmental footprint of our business activities through suppression of greenhouse gas emissions and energy consumption.
- We shall, through environmentally-conscious products and services, provide information to our customers about appropriate product usage, recycling, and disposal methods.
- We shall contribute broadly to society through environmental conservation activities in various countries and regions.
- We recognize the importance of biodiversity and shall strive to conserve ecosystems.
Established on February 25, 2021
Promotion structure
Sustainability Committee
Our company has established a Sustainability Committee chaired by the President and Representative Director. We aim to sustainably enhance the corporate value of the NAGASE Group by contributing to the solving social and environmental issues through our business activities.
The committee consists of one chairperson and two or more members. Members are assigned by the President from among directors and representatives of group companies.
The Sustainability Committee identifies and revises materiality (key issues), establishes and maintains a group-wide promotion structure, and monitors various initiatives, including non-financial targets (KPIs). Progress on these initiatives is reported to the Board of Directors at least once a year, and is subject to its resolution and monitoring.
Additionally, the Sustainability Committee has identified the following as high-priority issues of Materiality: “ Employee engagement improvement”, “ Realize a decarbonization”, and “ Transparency in corporate governance ”. For “Employee engagement improvement” and “Realize a decarbonization”, we have established corporate projects composed of directors, executive officers, and senior management of group companies.
For details on Materiality, please see NAGASE Group Materiality (Key Issues).
Each project discusses specific policies and measures for achieving non-financial target under the monitoring of the Sustainability Committee. Key matters of the project are also reported to the Board of Directors at least once a year through the Sustainability Committee and are subject to its oversight.
N-Engagement Project (Related Materiality: Employee engagement improvement)
NAGASE Group has identified “Employee engagement improvement” as one of ourMateriality. We define engagement as “the company (organization) and its employees having a mutual understanding and moving in the same direction as equal partners.”
We have been running the “Employee Engagement Improvement Project” to promote understanding of engagement, foster its adoption across the Group, and implement various initiatives aimed at improving it. We have also promoted the realization of a harassment-free environment as a part of our efforts to enhance engagement. As a result, we achieved the non-financial targets for employee engagement set forth in the mid-term management plan ACE 2.0, successfully establishing the concept of engagement throughout the Group and building a foundation for dialogue. Accordingly, the “Employee Engagement Improvement Project” has concluded as of FY2025.
Starting in FY2026, looking ahead to FY2028—the final year of the mid-term management plan “Walk the Talk”—we aim to realize “a state in which each individual finds meaning in their work, looks in the same direction, and actively engages in discussion and takes action.” To bring this vision to reality, we have launched the “N-Engagement Project.” Centered on “activating dialogue” and “sharing values,” this project will promote the realization of a state where the company and its employees are looking in the same direction. Additionally, to visualize progress and current status, we will implement a new, original “N-Engagement Survey.”
＜Initiatives for FY2025＞
| Implement measures | Details |
|---|---|
| Enhancing Opportunities for Dialogue (1-on-1s and Town Halls) | Continue holding 1-on-1 meetings and small-group discussions with division heads and department managersHolding town hall meetings led by senior management at global group companies and strengthening direct communication |
| Incorporating Organizational Messages and Policies | Communication from senior management and division heads regarding the organization’s vision, the meaning of the business, and career perspectivesClarifying expected roles and fostering mutual understanding |
| Organizational management involving all members | Promoting all-staff discussions regarding the mid-term plan and our vision for the futureExpanding opportunities for active participation by assigning roles to young employees and the next generation of leaders |
| Improving employee engagement through integration with HR systems | Incorporating engagement metrics into the MBOImproving transparency by clarifying roles and objectives, and utilizing the counselor system |
| Strengthening Cross-Organizational and Global Collaboration | Expanding opportunities for interaction and dialogue across departments and with global entitiesBroadening perspectives and fostering a sense of unity within the organization |
| Obtaining external evaluations | Awarded the “Motivation Company” prize in the large company category (less than 5,000 employees) at the BMC2026 awardsRecognition for efforts to continuously improve engagement |
For details on our non-financial targets related to employee engagement, please see below.
Please see below for specific initiatives related to employee engagement.
Carbon Neutral Project (Related Materiality: Realize a Decarbonization)
NAGASE Group has identified “Realize a Decarbonization” as one of our Materiality (Key Issues), recognizing climate change as a critical challenge. We are actively working toward achieving carbon neutrality (Scope 1 and 2 emissions) by 2050.
We have classified our initiatives into four quadrants based on two axes—“Trading/Manufacturing” and “Visualization/Reduction”—given that we possess both trading and manufacturing/processing functions. To achieve our carbon neutrality goal, we are focusing on establishing and implementing specific, individual measures through the Carbon Neutral Project.
＜Initiatives for FY2025＞
| Implement measures | Details |
|---|---|
| Obtaining SBT Certification (Near-Term Goals) | Revision of the 2030 targets in the NAGASE Group Carbon Neutral Declaration (Scope 1, 2: 1.5℃ aligned / Scope 3: WB 2℃ aligned) |
| Scope 1,2 Emissions Reduction | Formulation of the NAGASE Group’s Scope 1, 2 emissions reduction plan to achieve SBT-certified targetsPromoting initiatives to reduce Scope 1,2 emissions (energy-saving activities, improving energy efficiency, purchasing renewable energy and non-fossil fuel certificates, etc.) |
| Scope 3 Emissions Reduction | Promoting supplier engagement to drive primary data collectionEstablishing a System and Environment for Primary Data Registration Using the “DocuValue” Chemical Document Management Platform |
| Improving the accuracy of emissions data | Expansion of the third-party verified boundaries for the NAGASE Group’s Scope 1, 2, and 3 emissions (coverage: 95% or more) |
For details on our initiatives related to carbon neutrality, please see below.
Each company is working on measures for internal penetration of sustainability. In July 2023, a video explaining sustainability trends and basic knowledge was distributed, and from FY2023 to FY2024, casual, face-to-face educational activities were launched (18 sessions with a total of over 100 participants). In addition, Nagase Viita has published a “Sustainability Communication Book 2024” to share its “ideal state,” “goals,” and “action plan” within the company.
Materiality (Key Issues)
NAGASE Group has been identifying our materiality (key issues) since FY2021, when we formulated our Mid- Term Management Plan ACE 2.0. In September 2024, we partially revised our materiality, in light of changes in the external environment.
We believe that we should define as Materiality the social issues we can address through our business activities.
Therefore, in addition to the areas we have continuously prioritized—“Employee engagingment improvement,” “Realize a Decarbonization,” and “Transparency in corporate governance”—we have added three items more closely tied to our business: “Extend a healty life expectency,” “Achieve Sustainable supply chains,” and “Driving a Circular Economy.” We are currently operating under these six Materiality.
Details of Each Materiality
| The NAGASE Group's materiality | Related SDGs | |
|---|---|---|
| Employee engagement improvement | We believe that improving employee engagement is paramount to achieving sustainable growth. Our definition of engagement is “the company (organization) and its employees have a mutual understanding and are looking in the same direction as equal partners,” and this is our goal. Toward this goal, we continuously implement engagement surveys and conduct various improvement activities based on the results. |  |
| Realize a Decarbonization | For the NAGASE Group, which operates globally, addressing climate change is a critical challenge.We have manufacturing functions in addition to trading functions. Therefore, we have initiatives across two axes and four quadrants—“Trading/Manufacturing” and “Visualization/Reduction”—aiming to achieve carbon neutrality with net-zero GHG emissions by 2050. |   |
| Extend a healthy life expectancy | We are committed to contributing to the well-being of people and the planet. Therefore, extending healthy life expectancy is a crucial theme for us. NAGASE handles food ingredients and additives for the food industry, as well as pharmaceutical raw materials and medical devices for the pharmaceutical and medical industry. Beyond material proposals as a trading company, we leverage our “manufacturing function” and “ R&D function” to offer manufacturing/processing and application proposals. We also engage in bio-related R&D and contribute to the agricultural business.Through these efforts, we aim to contribute to people's healthy and prosperous lives. |   |
| Achieve Sustainable supply chains | We are a trading company with about 18,000 business partners. We believe our mission is to contribute to solving social issues across the entire supply chain.Particularly given geopolitical risks and growing awareness of human rights, it is essential to properly understand issues and engage for improvement within the supply chain. We have formulated a Supply Chain Management Policy and are working to address these issues, in order to maintain a stable procurement and supply. Furthermore, we will actively work to solve various issues across the supply chain through partnerships, such as optimizing transportation efficiency by leveraging our expertise and network in chemical management. |  |
| Driving a Circular Economy | Regulations related to the circular economy, which aims to balance economic growth with reduced environmental impact, are emerging, particularly in Europe. As a supplier of materials across entire supply chains, contributing to a circular economy is a key issue for us. Especially, recycling and eco-friendly materials are themes we can address through our business. We will contribute to solving these challenges through our three core functions: “trading functions,” “manufacturing functions,” and “ R&D functions.” |   |
| Transparency in corporate governance | We aim to contribute to a sustainable world where people live with peace of mind. We will work to enhance our corporate value over the mid-to-long term. Furthermore, we believe that “swift decision-making and execution” and “ensuring transparency” are essential to implementing these initiatives, so we will work to strengthen our corporate governance. |  |
Process for Identifying Materiality
We have identified our current materiality after approximately one and a half years of discussion since FY2023. This process was led by the Sustainability Committee.
To identify these material issues, we formed a project team within the Sustainability Committee, primarily composed of young employees, dedicated to reviewing materiality. This team worked on analyzing necessary information and exploring directions.
1. Analysis of the external environment
(1) Investigation of Changes in the External Environment since the Mid- Term Management Plan ACE 2.0 (FY2021–2025) was Formulated
- Research such as the Global Risk Report
- Risk mapping based on two axes: “Importance to stakeholders” and “Importance to NAGASE” Explore materiality based on the most important themes for both sides
(2) Internal and External Interviews
- Interviews with internal stakeholders ( Head of Business Division, Group Companies, etc.) and external experts
(3) Identification of External Environment
2. Analysis of NAGASE's Characteristics
(1) Reviewing the Company History (Reaffirming NAGASE's DNA)
- The spirit of challenging new things
- Value creation through trading, manufacturing, and R&D functions
(2) Interviews with employees
3. Identification of Materiality
Based on the results of 1 and 2, we have identified “Materiality” as the social issues the NAGASE Group should address.
Internal Awareness Initiatives
We are working to ensure employee understanding and awareness, recognizing that this is crucial when addressing materiality.
To promote understanding and awareness of materiality across all Group companies globally, we produced animated videos in 9 languages.
These videos are available on the Group intranet and via digital signage at each location.
Video of NAGASE Group's Materiality
Non-Financial Targets
We are committed to realizing our vision of “NAGASE contributing to the well-being of people and the planet.” To this end, we have established non-financial targets for key themes that are both significant and appropriately measured, and we monitor their progress under our sustainability management structure.
Employee Engagement
Please see below for specific initiatives related to employee engagement.
Mid-Term Management Plan ACE 2.0 (FY2021–FY2025)
We have conducted engagement surveys (organizational diagnostic surveys) and set the following targets for completion rates and scores, thereby promoting a deeper understanding of the concept of engagement and establishing mechanisms for workplace improvement.
| Scope | KPI | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | FY2025 (Target) | |
|---|---|---|---|---|---|---|---|---|
| Group companies | Employee engagement survey completion rate *1 | 41% | 81% | 86% | 100% | 100% | 100% | Acieved |
| NAGASE (Non-Consolidated) | Engagement survey score *2 | 52.4 | 56.5 | 56.0 | 58.3 | 61.7 | Over 60 | Acieved |
- *1 This applies to consolidated subsidiaries. Companies that became consolidated subsidiaries during the Mid- Term Management Plan ACE 2.0 period are excluded.
- *2 The Engagement Survey Total Score of “60” is a deviation score calculated by Link and Motivation Inc. (based on data from over 10,000 companies). This organizational state is defined as “mutual trust exists.”
To achieve this state, we have set the Survey Total Score of “60” as our target.
Mid-Term Management Plan Walk the Talk (FY2026–2028)
We envision our aim for FY2028 as “a state in which each individual finds meaning in their work, looks in the same direction, and actively engages in discussion and takes action.” To achieve this, we are promoting initiatives (N-Engagement) that go beyond traditional engagement surveys and specifically aim to realize our definition—“the company (organization) and its employees have a mutual understanding and are looking in the same direction as equal partners.”
Under N-Engagement, guided by the objectives of “activating dialogue” and “sharing values,” we are conducting a new, original survey designed to assess the status and progress of our efforts to ensure that “the company and its employees are looking in the same direction.”
| Scope | Our vision for FY2028 | Implement measures |
|---|---|---|
| Group | A state in which each individual finds meaning in their work, looks in the same direction, and actively engages in discussion and takes action. | We regularly conduct the group-wide original survey, the “N-Engagement Survey,” to continuously track the state of dialogue and the degree of shared values within the organization. Based on these results, we will establish a framework that enables each organization to independently identify and discuss challenges. We will prioritize the following two areas: Activating dialogue：Create opportunities for employees to discuss the company’s philosophy and direction based on the survey results. Sharing values：Empowering each employee to fully understand and internalize the NAGASE Group's core values through dialogue. |
Realize a Decarbonization (Carbon Neutral)
The NAGASE Group has declared its commitment to achieving carbon neutrality by 2050, with the aim of reducing GHG emissions to zero (Scope 1 and 2).
In working toward carbon neutrality, we have set FY2030 targets and non-financial KPIs under our mid-term management plan as interim goals, and are promoting initiatives to achieve them.
Regarding our FY2030 targets, on February 20, 2026, we obtained SBT certification for our “near-term targets” from the Science Based Targets initiative (SBTi), an international climate change initiative, and have set the following targets:
・42.0% reduction in Scope 1 and 2 emissions (compared to FY2021)
・25.0% reduction in Scope 3 emissions (compared to FY2023)
For details on our initiatives related to carbon neutrality, please see below.
NAGASE Group Carbon Neutral Declaration
- ※ 1.5℃ aligned：a science-based target standard defined by SBTi to limit the increase in the global average temperature to 1.5℃ above pre-industrial levels.
WB2.0℃ aligned：a science-based target standard defined by SBTi to limit the increase in the global average temperature to well below 2.0℃ above pre-industrial levels.
Mid-Term Management Plan ACE 2.0 (FY2021–FY2025)
Under the Mid-Term Management Plan ACE 2.0 (FY2021–2025), we have set non-financial targets as milestones toward achieving carbon neutrality and have been making progress toward these goals.
| Scope | KPI | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 (Target) |
|---|---|---|---|---|---|---|
| Consolidated Group | Scope 1,2 reduction (Compared to FY2013) | 30% | 34% | 36% | 43% | 37% |
| Reduction through renewable energy generation and purchases (cumulative) (t-CO2) | 10 | 523 | 7,488 | 13,272 | 35,000 or more | |
| NAGASE (Non-Consolidated) | Scope 2 emissions (t-CO2) | 2,514 | 2,014 | 1,810 | 1,893 | Zero emissions |
- ※ The Group targets cover NAGASE & CO., LTD., Nagase ChemteX, Nagase Viita
The Non-financial targets under ACE 2.0 were set prior to obtaining SBT certification.
Mid-Term Management Plan: Walk the Talk (FY2026–2028)
We have established FY2028 targets that align with our SBT-certified 2030 targets and will continue to advance our efforts toward achieving them.
| Scope | Targets for FY2028 | Implement measures |
|---|---|---|
| Consolidated | Scope 1,2 reduction rate (compared to FY2021) 32.7% | Promotion of energy-saving initiativesEnergy efficiency improvementsUtilization of renewable energy (On-site/off-site PPAs, non-fossil fuel certificates, etc.) |
Manufacturing Industry Cooperation Committee
In each NAGASE Group manufacturing company, the Group Manufacturing Industry Cooperation Committee was established in 2019 and operates with the aim of strengthening each company’s foundation as a manufacturer. By sharing and utilizing non-financial information, such as safety, quality, and the environment, and working together to resolve various issues, we aim to enhance the corporate value of the entire Group and achieve sustainable growth.
Target Company
NAGASE Group’s domestic manufacturing affiliates (100%): 9 companies (as of November 1, 2025)
Nagase ChemteX Corporation / Nagase Viita Co., Ltd. / Nagase RooTAC Industries, Inc. / Fukui Yamada Chemical Co., Ltd. / Kotobuki Kasei Corp. / Nagase Filter Co., Ltd. / Nagase Techno-Engineering Co.,Ltd. / CAPTEX Co., Ltd. / Nagase Beauty Care Co., Ltd.
The Group Manufacturing Industry Cooperation Committee is engaged in quality improvement activities and initiatives in the subcommittees of occupational safety, environment, and DX. The activities of each subcommittee are disclosed on the sustainability website.
| Activities and subcommittees | Activities and main activities of subcommittees |
|---|---|
| Quality improvement activity | Promote quality improvement activities of the NAGASE Group, including the implementation of safety, quality, and environmental questionnaires. |
| Labor Safety Subcommittee | Promote labor safety activities of the NAGASE Group by disseminating information through the promotion of safety and health diagnoses and follow-up diagnoses, improvement of on-site capabilities such as lectures and training, and sharing of information on occupational accidents. |
| Environmental Subcommittee | Promote the environmental activities of the NAGASE Group by visualizing and sharing environmental data and setting KPIs. |
| DX Promotion Subcommittee | Promote the NGASE Group's DX activities, including the formulation of DX promotion policies and DX strategies, and the development of systems and environments. |
DX Initiatives
The NAGASE Group is promoting the following DX initiatives at Nagase and the Group Manufacturing Cooperation Committee.
NAGASE & Co., Ltd
NAGASE & Co., Ltd will further strengthen its existing strengths of “wide-area network,” “technical knowledge,” and “ability to solve problems and human resources” through the utilization of DX to promote transformation. We are currently strengthening our digital marketing function as a means of responding to changes in the external environment and customer behavior. We have begun building a digital infrastructure and developing human resources so that we can utilize the latest digital technologies in response to situations such as adding digital customer contact points, attracting customers, and responding to their needs. (Goal: to develop 100 DX human resources by FY2026)
Group Manufacturing Collaboration Committee
The Group Manufacturing Collaboration Committee has been conducting a “Digital Innovation Level Assessment” of manufacturing sites every other year since 2021. The “Digital Innovation Level Assessment” is a method to measure the maturity level of digitalization of such themes as visualization of manufacturing sites, improvement of quality and productivity, logistics reform, efficiency improvement of the entire supply chain, development of control networks, advancement of safety measures, advancement of maintenance operations, and reform of work styles. The method is also used to monitor the degree of achievement of the desired state in the implementation of measures in line with the strategy.
R&D for a Sustainable Society
In order to realize a sustainable society, R&D (research and development) is important for promoting innovation that will form the core of future business and pursuing commercialization with diverse perspectives and R&D capabilities. Within the NAGASE Group, the Research and Development Center, the NAGASE Application Workshop (NAW), the New Value Creation (NVC) Office, and the NAGASE Biotech Office are working to solve the problems in society by utilizing their respective characteristics.
Nagase Bio-Innovation Center
We are working to create research themes that can contribute to society from a macro perspective on issues related to social sustainability, such as climate change, population growth and resource depletion. We are mainly engaged in the development of material production technologies using genetic engineering, enzyme engineering, metabolic engineering, and bioinformatics. In particular, we have a number of proprietary technologies in the production of substances using actinomycetes as hosts and have made presentations outside the Company and applied for patents.
Nagase Application Workshop
In the field of plastic and coating materials, we evaluate and analyze raw materials, develop applications, and develop formulations for end products using those raw materials. In recent years, we have been working on the development of sustainable products such as bioplastics, recycled materials, and environmentally friendly paints. NAW will continue to pursue decorativeness and functionality in the field of plastic and coating materials.
Future Co-creation Office
It was established in April 2017 with the aim of creating the core of future business by promoting innovation and creating new value for the NAGASE Group. We are developing original products such as materials informatics, blockchain, sensors, and system ultra-low dielectric materials, as well as developing markets in the medical and energy fields, which are expected to grow in the future. In addition, we are investing in startups using CVC to acquire information in new fields and managing new business promotion activities across the company.
NAGASE Biotech Office
The NAGASE Group's elemental technologies related to research, development, and production of microorganisms, fermentation products, enzymes, and enzyme reactants are brought together to provide unique technological value that only NAGASE can provide. In recent years, we have been working to commercialize ergothioneine, a rare natural amino acid that improves brain function and has high antioxidant properties, by using the strains we have developed to develop applications in the life science field, including health foods, cosmetics, and pharmaceuticals.
Relationships with Stakeholders
NAGASE Group activities exist thanks to the Group's relationships with its diverse stakeholders, and it is extremely important to listen to the opinions and expectations of these stakeholders.
The NAGASE Group proactively incorporates the opinions and demands of its stakeholders in its corporate activities and conducts a variety of initiatives in order to connect these to sustainable societal development and increased corporate value.
| Stakeholders | Initiatives | Engagement |
|---|---|---|
| Employees | Provide a safe and friendly work environment.Provide a cheerful, happy, and engaging workplace.Create a corporate Group that is a sense of pride for employees and their families. | Employee Engagement Survey |
| Business Partners | Establish a cooperative relationship by gaining deep understanding of business partners, which enables pursuit of a wide range of possibilities.Provide solutions to issues that need to be tackled throughout the value chain as well as social issues. | Continuous dialogue with business partners Compliance with Ecovadis, Sedex, and CDP supply chain programs |
| Society and Consumers | Contribute to the development of the local community throughlegal compliance and ethical management.Consider the rights, health and comfort comfort of everyone involved in the supply chainProvide products and services towards realization of a sustainable world 【Relationships with Trade Organizations】 The Representative Director and President, and Executive Officers serve as the directors of the Japan Foreign Trade Council. As the members of our Environment Protection Committee, we take part in the activities of the Committee and engage in the promotion of the activities. | Social Contributions |
| Shareholders | Foster trust and a sense of security through a highly transparent management structure and timely and and timely and reasonable information disclosure.Maximize enterprise value by increasing both economic and social value and through continuous business creation. | Holding of Shareholders’ Meeting (once a year) Publication of consolidated reports (once a year) Meetings with institutional investors (as needed) |
