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

Strength / Characteristics
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
Value Proposition

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
Vision for the Future

We will contribute to a sustainable world where people live with peace of mind

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)

The NAGASE Group conducted an external environmental analysis at the time of the formulation of ACE 2.0, the mid-term business plan announced in May 2021, and recognized that technological innovation, climate change and resource shortages, demographic changes, and industry restructuring are of paramount importance to both NAGASE and its stakeholders.

  • *1Assessed as important matters that produce great change to the respective needs of employees, business partners, local communities, consumers, and shareholders.
  • *2 Assessed as important matters that offer opportunities for new businesses, opportunities for existing businesses, threats to existing businesses, and threats to business continuation.

We also identified important issues (materiality) in sustainability based on the value we provide to our stakeholders. We will contribute to a sustainable society by addressing the following materiality issues through our core business: utilization of diverse human resources, provision of a workplace environment and corporate culture; creation of new value through the use of advanced technology; globalization and resolution of social and environmental issues; and corporate governance. We will also contribute to the achievement of the Sustainable Development Goals (SDGs) * adopted by the United Nations in 2015.

Delivered Values Materiality Related SDGs
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. 【 Use diverse human resources; offer a workplace environment and corporate culture 】 Use advanced technologies to improve productivity and leverage diverse human resources. Provide a workplace environment and foster a corporate culture as a Group where employees with diverse backgrounds have mutual respect and motivate each other.
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. 【 Use of state of the art technology to create new value 】 Create new value leveraging advanced technologies and a network of business partners. Provide a wide range of solutions based on understanding the true causes of the increasingly complex problems of business partners.
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 chain Provide products and services towards realization of a sustainable world 【 Solving Social and Environmental Issues, and Globalization 】 Solve problems that threaten safety and security, e.g., climate change and food and water shortage. Contribute to securing and improving food safety by utilizing biotech, AI and other advanced technologies. Fulfill health maintenance demands due to increasingly aging societies in advanced countries. Contribute to the acceleration of globalization and solve social issues in each region.
Share holders 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. 【 Corporate Governance 】 Establish a highly transparent corporate governancesystem. Make sustainable improvement of enterprise value by balancing economic value and social value.

Determination of non-financial goals (KPIs)

To achieve the Ideal NAGASE for 2032 (200th anniversary) as business designer that creates a sustainable future, formulated the ACE 2.0 Medium-term Management Plan (FY2021 to FY2025), backcasting from the year 2032. Under this plan, we will create both economic value and social value under a pursuit of quality.
The NAGASE & CO., LTD. board of directors established non-financial goals (KPIs) for the company to evaluate quantitatively and monitor efforts toward materialities identified for the company to achieve the Ideal NAGASE.

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.
*FY2021: 41% of group companies conducted a survey (24 companies, including companies conducting one survey only).
  sNAGASE (Non-Consolidated) engagement survey score: 52.4

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

>従業員エンゲージメントサーベイ

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)

カーボンニュートラル

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.

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.

Please click here for details.

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.

Please click here for details.

New Value 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. In recent years, we have been working to develop markets for TABRASATM, our new material search platform, and AxonerveTM IP Core, our semiconductor design technology. We will continue to promote the construction of AI-based materials informatics systems, the creation of new technologies through the fusion of biotechnology and electronics, and the construction of proprietary IP.

Please click here for details.

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.

Please click here for details.

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 Value Proposition and 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 2021
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 chain Provide 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)