Message from the President
By providing solutions
to social issues,
we contribute to the
sustainable development
of society.
Nichiden is committed to the realization of a sustainable society through both its business activities and its corporate responsibilities. Since our founding, contributing to society has been embedded in our corporate culture. Guided by our management philosophy, we have built trusted relationships with our business partners while striving for genuine mutual prosperity.
Through the provision of environmentally responsible products and systems in our business activities, we support Japanese manufacturing and contribute to solving social challenges. In addressing increasingly complex social issues such as labor shortages and climate change, we emphasize collaboration with stakeholders.
In 2025, we published our Environmental Policy, Human Rights Policy, Ethics and Compliance Policy, and Sustainable Procurement Guidelines to advance sustainability across our Group and supply chain. These policies serve as essential guidelines for achieving a sustainable society together with our stakeholders. Under these guidelines, each officer and employee acts with a strong sense of responsibility, practicing environmental stewardship and ethical conduct to fulfill our corporate responsibilities.
By developing robust talent development systems and creating a workplace where employees find purpose and fulfillment, we enable our important management resource, our people, to thrive and contribute to the sustainable growth of both our company and society.
Nichiden will continue to fulfill its social responsibilities and walk alongside its stakeholders as a company that contributes to local communities and the global environment, striving to create a prosperous future and further enhance corporate value.
Toshikazu Fuke
Representative Director and President Executive Officer
Our Perspective and Initiatives for Sustainability
Nichiden Group has always followed its management philosophy to collaborate with stakeholders in solving a variety of social issues towards the growth and progress of a sustainable society. In recent years, the importance of achieving both the realization of a sustainable society through the resolution of such social issues and the continuous enhancement of corporate value has increased further. To strengthen our governance structure related to sustainability, we have established a Sustainability Committee, chaired by the Representative Director and President Executive Officer, with the aim of building a cross-functional and agile promotion framework.
The Sustainability Committee formulates basic policies related to sustainability, sets targets for addressing key social issues, manages and evaluates progress toward those targets, and deliberates on individual measures. The Committee reports and makes recommendations to the Board of Directors twice a year.
In addition, we formulate policies to promote sustainability across the Group and coordinate and align efforts within the Group.
Nichiden Group
Basic Policy on Sustainability
Based on its company motto and management philosophy, the Nichiden Group communicates with stakeholders in every way possible. This allows us to be a corporate entity that builds the workings of manufacturing and supports the foundations of industry, in the process raising overall corporate value and helping realize a sustainable society.
As part of our risk management framework, members of the Sustainability Committee regularly review potential risks and opportunities from both short-term and medium- to long-term perspectives, recognizing that such factors evolve in response to changing social and business environments. For each identified issue, the Sustainability Committee manages risks and opportunities by comprehensively considering the degree to which the matter contributes to solving social issues and the methods for doing so, as well as the financial significance, likelihood, and tolerance of associated risks and opportunities recognized in ensuring the sustainable, long-term development of the Group’s business.
Identified risks and opportunities are addressed according to their level of importance. Subcommittees under the Sustainability Committee examine specific response measures for the identified risks and opportunities, which are then decided by the Board of Directors and implemented across the company to enhance corporate value.
The Group has published our Environmental Policy, Human Rights Policy, Ethics and Compliance Policy, and Sustainable Procurement Guidelines to advance sustainability across our Group and supply chain.
These policies serve as essential guidelines for achieving a sustainable society together with our stakeholders. We will continue to fulfill its social responsibilities and advance alongside stakeholders as a company that contributes to local communities and the global environment.
Materiality
In 2023, we identified priority sustainability issues as our materiality themes in order to realize a sustainable society and enhance corporate performance. We promote and manage these initiatives by defining specific actions associated with each issue. We will continuously review our materiality themes and identification process in light of the external environment changes, business condition changes, and stakeholder expectations.
Key Issue 1
Environment: Addressing Climate Change
We consider climate change measures to be crucial towards achieving a carbon-neutral society and a circular economy. Besides the environmentally friendly products and systems that we have provided, we have been collaborating with stakeholders to solve a range of social issues.
Through the framework of the TCFD, we will continue to provide information on our efforts to sell more products that are environmentally responsible and help reduce CO2 emissions, and on our other climate change-related measures.
- Specific Actions
-
- Alignment with the TCFD framework
- Expansion of CO2 reduction-contributing products
Key Issue 2
Social: Company Environment Where Diverse Talent Can Grow and Thrive
First and foremost, we want our employees to reflect our company motto, “Sincerity.” This means they can do what is expected of upstanding people, such as properly greet others and keep promises. Sincerity has always been a cornerstone of Nichiden’s talent; our employees have striven for self-improvement through their work and have grown along with the company. We have built a training system for this valuable talent, which helps them realize their full potential, and a company culture in which they can enjoy rewarding work and personal fulfillment. The result is that they can help make the society around them sustainable.
- Specific Actions
-
- Well-being management
- Career development training for all levels
- Talent assessment training focused on strategic vision and planning capabilities
Key Issue 3
Governance: Establishing a Highly Transparent Governance Structure
We have built a system of corporate governance that provides a foundation for ensuring management transparency and fairness, and for executing prompt decision-making in the face of business environment changes. These help us contribute to an abundant future and achieve greater corporate value.
- Specific Actions
-
- Promotion of sustainability management
- Evaluation of the effectiveness of the Board of Directors
- Holding of Nomination and Remuneration Committee meetings
Key Issue 4
Business: New Contributions to Manufacturing That Solve Social Issues
We collaborate with suppliers and leverage our strengths—in people, technology, procurement, and information—in order to help our users solve the problems they face and to boost the value we provide, thus contributing to an abundant future.
- Specific Actions
-
- IoT solutions
- Expansion of robotic automation and labor-saving equipment
Identifying Materiality
Organizing initiatives within the company
Examining associated risks and opportunities and extracting key issues
Scoring and mapping issues by the Board of Directors, Sustainability Committee members, and external experts, and selecting candidate key issues (materiality)
Final identification of materiality following further discussion and review by the president and general managers
Multi-Stakeholder Policy
Our purpose is to “Sincerely contribute to the future of manufacturing by uniting the hopes of those who make products and those who use them.” Practicing sound management, we collaborate appropriately with, and build bonds of trust between, shareholders, employees, suppliers, and other stakeholders, in the process raising our corporate value.
While always keeping environmental matters in mind, we strive to fulfill the important responsibility of meeting society’s expectations by helping the manufacturing sector become more technologically advanced, efficient, labor-saving, and safe, and by passing on to our multiple stakeholders the profits and successes we achieve. From this perspective, we carry out the initiatives below as important ways to give back to our shareholders and employees, and to value our suppliers.
1. Giving Back to Employees
We consider our employees a valuable resource, and we focus on training them to raise our corporate value, continuously grow our company, raise productivity, and maximize added value. We do this by actively providing education and training programs that help them better engage with their jobs and boost productivity. We also aim to continuously give back to our employees by sharing our profits and successes with them through periodic pay raises.
(Individual Items)
Specifically, with regard to pay raises, we implemented HR system reforms in fiscal 2025, changing our previous grade, evaluation, and compensation system, which had been based on the scope of possible employee relocation, to one based on job responsibilities and level of contribution. We will continue to revise employee benefits according to economic circumstances and company performance, and further our education and training efforts by introducing more programs classified by job level and function.
2. Valuing Our Suppliers
We continuously strive to honor our partnership-building declaration.
Should the Declaration of Partnership Building be removed from the portal site, we will voluntarily rescind the Multi-Stakeholder Policy.
· Partnership-building declaration link
[https://www.biz-partnership.jp/declaration/128357-09-00-osaka.pdf] (in Japanese)
As well, we will appropriately build business relationships with companies exempt from consumption tax, using as guidelines government-announced policies on tax-exempt companies’ and their business partners’ handling of the invoice system.
We ensure appropriate dealings with our business partners by constantly confirming our conformance with the clauses of the declaration.
March 19, 2025
(Updated on March 3, 2026)
Toshikazu Fuke
Representative Director and President Executive Officer
NICHIDEN Corporation
