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- Sustainability
- Materialities (Key Issues) and KPIs
Materialities (Key Issues) and KPIs
To realize our Sustainability Vision, the Nissha Group identifies particularly important items as materialities. We also set and engage in specific strategy items, KPIs, and action items reverse-calculated to achieve 2030 goals.
Materialities are evaluated from the 4 perspectives of, Creating business opportunities, Risk reduction, Strengthening management foundation, and Corporate governance, using the two axes of importance to society and stakeholders, and importance to Nissha. In addition, we hold dialogues with stakeholders including customers, shareholders and investors, and include that insights in “importance to society and stakeholders”. The identified issues and their positioning within the Group are discussed by the Sustainability Committee, and materialities are identified through deliberations and resolutions by the Board of Directors.
Materialities are evaluated from the 4 perspectives of, Creating business opportunities, Risk reduction, Strengthening management foundation, and Corporate governance, using the two axes of importance to society and stakeholders, and importance to Nissha. In addition, we hold dialogues with stakeholders including customers, shareholders and investors, and include that insights in “importance to society and stakeholders”. The identified issues and their positioning within the Group are discussed by the Sustainability Committee, and materialities are identified through deliberations and resolutions by the Board of Directors.
Materiality Identification Process
| STEP1 Identify related social issues |
Identify social and management issues related to the realization of the Sustainability Vision by referencing SDGs, GRI Standards, Responsible Business Alliance (RBA), etc.. |
|---|---|
| STEP2 Prioritize |
Incorporate knowledge gained through dialogue with customers, shareholders, investors, and other stakeholders regarding the social and management issues identified in Step 1, while analyzing and prioritizing on two axes: “importance to society and stakeholders” and “importance to Nissha”. |
| STEP3 Verify validity |
Examine the validity of the priorities via interviews conducted with business divisions involved in the Sustainability Committee, ESG task force and other organizations. |
| STEP4 Establish materialities, KPIs, and action items |
Based on Steps 1 to 3, materialities are identified through deliberations and resolutions by the Board of Directors. In addition, business divisions, organizations, and the ESG task force incorporate strategy items, KPIs, and action items which are then approved by the Sustainability Committee. |
Creating Business Opportunities
Identified based on important social issues (needs) in the priority markets as stipulated in Sustainability Vision
| Materialities | Scenario for Achieving Materialities (Strategy Items) |
KPIs and Action Items (FY2026) |
|---|---|---|
| Solve medical issues (Medical Devices) | Expansion of business for Medical Devices / Healthcare market |
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| Contribute to the safety and comfort of transportation and logistics, and the reduction of environmental impact (Mobility) | Expansion of business for Mobility market |
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| Promotion of circular economy (Sustainable Materials) | Expansion of business for Sustainable Materials market |
|
Risk Reduction
Evaluated and identified environmental and social risks that impede business continuity in aiming to achieve Sustainability Vision
| Materialities | Scenario for Achieving Materialities (Strategy Items) |
KPIs and Action Items (FY2026) |
|---|---|---|
| Respect for human rights | Reduction of labor and human rights risks |
|
| Responding to climate change | Reduction of CO2 emissions |
|
| Providing responsible products and services |
|
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| Sustainable procurement | Establishment and operationalization of stable procurement |
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| Data security in response to increased use of generative AI |
|
|
Strengthening Management Foundation
Identified major management foundation elements in the quest for realizing our Sustainability Vision and accelerating business activities
| Materialities | Scenario for Achieving Materialities (Strategy Items) |
KPIs and Action Items (FY2026) |
|---|---|---|
| Enhancing human capital | Promote opportunities for female employee |
|
| Enhancement of trainings for management / strategic human resources, and employee rotation |
|
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| Efficiency and productivity improvement | Improve efficiency and productivity by digitalization of value creation processes |
|
Corporate Governance
Identified major corporate governance elements in the quest for realizing our Sustainability Vision and accelerating business activities
| Materialities | Scenario for Achieving Materialities (Strategy Items) |
KPIs and Action Items (FY2026) |
|---|---|---|
| Improving the effectiveness of the Board of Directors | Upgrade systems related to corporate governance and group governance |
|
| Advancement of global governance |
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