- Basic Principle
- Sustainability Basic Policy
- The NAGASE Group's materiality (important issues)
- Determination of non-financial goals (KPIs)
- Promotion structure
- Activities of the Group Manufacturing Industry Cooperation Committee
- Research and development to realize a sustainable society
- DX Initiatives
- Relationships with Stakeholders
Basic Principle
A sense of values shared within the NAGASE Group
Sustainability Basic Policy
"Continue to make efforts for solving social and environmental issues through our corporate activities for the sustainable growth of the NAGASE Group and society” is positioned as a common idea throughout the philosophy structure.
- 1. Business operations with integrity
- 2. Good relationship with society
- 3. Consideration for the environment
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.
Vision
To realize a sustainable world where people live with peace of mind, each of us embodies our value proposition, “Identify, Develop and Expand” through daily activities.
“Ideal NAGASE”
for 2032
(200th anniversary)
Business Designer that Creates a Sustainable Future :
“Identify, Develop and Expand” – Contribute to the development of sustainable society
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.
Vision
To realize a sustainable world where people live with peace of mind, each of us embodies our value proposition, “Identify, Develop and Expand” through daily activities.
“Ideal NAGASE” for 2032 (200th anniversary)
Business Designer that Creates a Sustainable Future :
“Identify, Develop and Expand” – Contribute to the development of sustainable society
Sustainability Basic Policy
"Continue to make efforts for solving social and environmental issues through our corporate activities for the sustainable growth of the NAGASE Group and society” is positioned as a common idea throughout the philosophy structure.
- 1. Business operations with integrity
- 2. Good relationship with society
- 3. Consideration for the environment
Vision
- Maintaining the highest standards of integrity for almost 200 years
- Working with partners to enable new businesses
- Driving new technologies with knowledge and experience
- Staying a step ahead of the market to actively offer solutions
We “Identify, Develop and Expand” new business
- Identify : We discover untapped business opportunities
- Develop : We convert opportunities into customer value
- Expand : We deliver solutions to multiple fields and regions
Sustainability Basic Policy
The measures for sustainability-related issues lead to the highest standards of integrity that the NAGASE Group pursues as its management philosophy and the world in our vision for the future. We acknowledge that continuing corporate activities that contribute to the solution for social and environmental issues enables sustainable growth, and thus we make proactive efforts by developing a policy for sustainability activities.
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
The NAGASE Group's materiality (important issues)
NAGASE Group identified materiality at the time of formulating the Medium-Term Management Plan ACE2.0 and have been promoting efforts to address it. In September 2024, we have revised the materiality in light of the recent changes in the external business environment and the other factors. The materiality has been revised to six, retaining the existing three items of “Employee Engagement Improvement”, “Realize a Decarbonization” and “Transparency in corporate governance” while adding three new items of “Extend a healthy life expectancy”, “Driving a Circular Economy” and “Achieve a Sustainable supply chain”.
We will continue to consider and implement updates and revisions of the materiality according to various changes.
| Changes in the external environment having a major impact |
The NAGASE Group's materiality | Related SDGs |
|---|---|---|
| Diversity of human resources Demographic changes Climate change and resource shortages Food and water scarcity Globalization Depletion of natural resources Geopolitical risk Growing awareness of human rights | Employee engagement improvement |
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| Realize a Decarbonization |
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| Extend a healthy life expectancy |
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| Achieve a Sustainable supply chain |
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| Driving a Circular Economy |
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| Transparency in corporate governance |
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Materiality and KPI identification process and management
2020
Materiality identification
We held discussions in the NAGASE Group Sustainability Promotion Project and identified the most important issues in terms of “importance to stakeholders” and “importance to NAGASE’s business. After that, we identified the issues as materiality within the Mid-Term Management Plan ACE2.0.
2021
Setting KPIs
We have established two projects on the identified materialities: “Improving Employee Engagement” and “Carbon Neutrality”.
2022–2023
KPI management and materiality (progress report)
We set KPIs related to “ Carbon Neutrality” and “ Employee Engagement Improvement.” Non-financial targets for carbon neutrality and employee engagement improvement have been set for FY2025, and we are working to address materiality with a focus on KPI management.
2024
Revision of Materiality
We revised the materiality by reorganizing it in light of changes in the external environment and other factors since the materiality was identified, and through discussions at the Sustainability Committee and exchanges of opinions with outside directors and experts. The materiality has been revised to six, retaining the existing three items of “Employee Engagement Improvement”, “Realize a Decarbonization” and “Transparency in corporate governance” while adding three new items of “Extend a healthy life expectancy”, “Driving a Circular Economy” and “Achieve a Sustainable supply chain”.
Determination of non-financial goals (KPIs)
We have determined the following non-financial targets (KPIs) in ACE2.0 (the mid-term business plan announced in May 2021) to quantitatively evaluate and monitor our efforts to address key issues (materiality) we have identified in order to realize our ideal state of “a business designer that creates a warm-hearted future” by 2032 (200 years after our founding).
| Category | KPIs | ||
|---|---|---|---|
| Improve employee engagement* | Target | Group companies | Percentage of companies conducting regular engagement surveys: 100% |
| NAGASE (Non-Consolidated) |
Total engagement survey score: 60 or better | ||
| Carbon neutrality | Target | Consolidated Group | Scope 1,2 reduction: 37% or greater (compared to 2013) |
| Reduction through renewable energy generation and purchases: 35,000 tons or more (cumulative) | |||
| NAGASE (Non-Consolidated) |
Scope 2 zero emissions | ||
*Calculated for consolidated subsidiaries, treating the Prinova Group as a single company.
Improve employee engagement
The NAGASE Group recognizes that employee engagement is the most important factor in achieving sustainable growth. In this context, the company defines engagement as a relationship between company (organization) and employee built on mutual respect and mutual motivation.
In September 2021, the first year of the ACE 2.0 Medium-term Management Plan, NAGASE & CO., LTD. conducted an engagement survey across 16 categories: Eight related to the company, four related to supervisors, and four related to the workplace. The survey was designed to identify the state of employee engagement serve as a basis for developing measures to improve engagement.
The company established implementation guidelines, including the involvement of top management, independence, and transparency, and will implement these measures throughout the group in a steady and consistent manner.
Employee engagement survey
Employee Engagement Improvement Project Key Initiatives for FY2023
Major Initiatives for FY2023
Starting with the “Employee Engagement Improvement Project” with management as the owner, we have set the promotion of “vertical dialogue” and “horizontal collaboration” as high priority issues in the Company. Revamping of sales liaison meetings among division managers, establishment of new administrative liaison meetings among general managers, and new dialogue meetings between directors and supervisors, As a result of these measures, both of the two KPIs, which are non-financial targets, made progress as follows.
| KPI | Actual results for FY2023 | |
|---|---|---|
| Employee Engagement | NAGASE & Co., Ltd：Engagement Survey Total Score over 60 | Total score：56.0 (56.5 in preceding fiscal year) |
| Group：100% of respondents conducting regular engagement surveys | Percentage of surveyed regularly：86% (81% in preceding fiscal year) |
Carbon neutrality
The NAGASE Group identified solving social/environmental issues and globalization as a materiality.
The NAGASE Group recognizes that addressing climate change is an important issue, establishing a goal to achieve carbon neutrality (Scope 1 and 2)—meaning net zero GHG emissions by 2050.
In addition to trading company functions, the NAGASE Group engages in manufacturing and processing. In this context, the group will endeavor to achieve carbon neutrality by categorizing operations into four quadrants along two axes: trading company/manufacturing and visualization/reduction.
NAGASE Group greenhouse gas emissions (Scope 1 and Scope 2)
Carbon Neutral Project Major Initiatives for FY2023
Major Initiatives for FY2023
In FY2023, Nagase has conducted "On-site PPA with in-house consumption" and "Virtual PPA Service Agreement".
In addition, we are aware that we have made further progress in accumulating knowledge and know-how toward carbon neutrality through collaboration with Zeroｂoard, which offers GHG emissions visualization services, and carbon footprint (CFP) calculation consulting services with DNP.
| KPI | FY2023 results Provisional values before guarantees by certifiers | |
|---|---|---|
| Carbon Neutral | 【Consolidated】 Scope1,2 reduction rate：37% or more (compared to 2013) Reduction from renewable energy generation and purchase：35,000 tons or more (cumulative total) |
【Consolidated】Scope1,2 reduction rate：32% 【Consolidated】Reduction from renewable energy generation and purchase：7,488 tons (cumulative total) |
| 【Non-consolidated】Scope 2 Zero emissions | 【Non-consolidated】Scope 2：2,099t |
Promotion structure
We established the Sustainability Committee, chaired by the Representative Director and President, with the aim of continuously improving the corporate value of the NAGASE Group by contributing to the resolution of social and environmental issues through corporate activities. The committee consists of a chairperson and at least two committee members, who are appointed by the President from among employees of the Company or Group companies. The Corporate Sustainability Office carries out business execution (realization) based on the group-wide policy.
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 in December 2023, casual, face-to-face educational activities were launched (18 sessions with a total of over 100 participants as of August 2024). In addition, Nagase Vita has published a “Sustainability Communication Book 2023” to share its “ideal state,” “goals,” and “action plan” within the company.
Activities of the Group 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 April 1, 2024)
Nagase ChemteX Corporation / Nagase Viita Co., Ltd. / Totaku 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.
Research and development to realize 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.
