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- Sustainability
- Material Issues of the NLM Group
Material Issues
of the NLM Group
The NLM Group will contribute to the realization of the sustainable society envisaged by the SDGs through the comprehensive and wide-ranging fields of business related to aluminum. As part of this process, in order to recognize the issues the NLM Group should address in particular and raise them as important management issues for the Group's sustainable growth and the creation of corporate value, our Board of Directors identified the material issues of the NLM Group.
We have set KPIs (target values) for each of the issues and are working towards achieving them based on concrete plans of action.
Steps to Identifying Material Issues
Identifying a Group of Candidate Material Issues
Ahead of identifying the material issues, we ascertained the extent of impact of the Group's activities, which cover a wide range of business fields. To ensure there were no omissions in our recognition of related social issues, we first determined the Group's value chain and its scope as a means of verification. Next, based on the requirements of international guidelines such as SASB, GRI, the SDGs and ISO 26000, we produced a list of around 400 wide-ranging social issues related to ESG. We assessed the importance of each issue based on an analysis of the impact on each stakeholder and the NLM Group, and finally narrowed the issues down to a shortlist of 31.
Assessing Importance
Working with the consolidated shortlist, we conducted another assessment of importance based on two aspects, the degree of importance to society, and the degree of importance in mid-to-long-term corporate value creation for the NLM Group, and finally identified the material issues.
Confirming Validity and Comprehensiveness
When assessing the importance of the items on the shortlist, we also had them evaluated by outside experts active in a variety of fields. We reconsidered and reviewed the items while referencing their opinions to confirm the validity and comprehensiveness of the choices.
Identifying the Material Issues
We reclassified the identified material issues into five material issue themes. After undergoing review by the CSR Committee and Group Executive Committee, the issues were approved by the Board of Directors.
- Protecting the global environment
- Providing sustainable value
- Happiness of employees
- Responsible procurement,
production and supply - Corporate ethics and governance
List of Material Issues
Material Issues
- Reducing greenhouse gas emissions from company activities (scope 1, 2)
- Reducing greenhouse gas emissions in the supply chain (scope 3)
- Action on climate change (TCFD)
- Responding to water stress
- Preventing environmental pollution
Reason for Selection, Risks, and Opportunities
While all of the aluminum we use at the NLM Group is imported, a huge amount of electricity is necessary in the process of smelting it. Accordingly, we urgently need to reduce all greenhouse gas emissions--Scopes 1, 2 and 3. In addition, considering the natural environment and biodiversity is important for ensuring the sustainability of our business activities using natural capital. Therefore, we have set this material issues theme.
Material Issues
- Efforts to expand the use of renewable energy
- Developing and providing low-carbon products and services
- Promoting a recycling-oriented economy and society
- Developing and providing robust infrastructure
- Contributing to the stable supply of food
- Shaping the future through innovation
Reason for Selection, Risks, and Opportunities
Products from the NLM Group are capable of fulfilling the growing demand related to the switch to materials created using renewable sources of energy and materials whose recyclability is high. We believe that, by leveraging these features, we can provide sustainable value in a broad range of domains, including the automobile, transportation, electricity and electronics, and social infrastructure domains. This is why we have set this theme of material issues.
Improving the comprehensive capability of the Group as a whole to make suggestions to the automotive market
Promoting horizontal recycling by strengthening cooperation with external parties
Material Issues
- Occupational health and safety
- Developing a fulfilling workplace
- Diversity & inclusion
- Securing and cultivating human resources
Reason for Selection, Risks, and Opportunities
As a manufacturer, we have set an internal slogan: Safety and health come before anything else. In recent years, we are also promoting mental healthcare. To enhance the value of the corporate group, we consider the happiness of employees, who play leading roles in our businesses, is important, and a healthy work-life balance, diversity and inclusion, human resource development, and other initiatives are necessary. For this reason, we have also set this as one of the themes of our material issues.
FY2030: 10% or above
NLM Pride and Social Contribution Project activities
NLM Future Active Participation Project
Activities of the Group D&I Subcommittee
Promotion of the acquisition of Kurumin and Eruboshi certifications
FY2030: 100%
Tiered training of Group employees
production and supply
Material Issues
- Providing safe and secure products and services
- Protecting and respecting human rights
- Developing a stable supply chain
- A resilient value chain that is flexible to changes
Reason for Selection, Risks, and Opportunities
The Group's products are used in a broad range of sectors, and the Group plays roles in wide-ranging supply chains. We believe that initiatives including those implemented from a BCP perspective, including initiatives for respecting human rights such as the prohibition of various types of discrimination and forced labor, and initiatives for stable procurement controlling geopolitical risks, in addition to initiatives to maintain and improve quality, will contribute to the sustainability of not only the company but the entire supply chain. This is why we have set this material issues theme.
Promoting activities to enable on-site workers to voice their opinions and promote internal policing.
Material Issues
- Strengthening governance
- Reinforcing the compliance framework
Reason for Selection, Risks, and Opportunities
We believe that, in addition to enhancing and increasing the sophistication of our corporate governance for the sustainable operation of our business, the promotion of engagement with shareholders, investors, and various other stakeholders is useful in the enhancement of our corporate and social value. Further, we believe that the prevention of misconduct and scandal is an effective way to prevent these matters negative impacting not only the company but also society. This is why we have set this material issues theme.
Expanding the Learning Management System (LMS) in the Group
*1 The targets are FY2030 targets unless otherwise noted.
*2 Nippon Light Metal Co,. Ltd. (non-consolidated)
*3 Suppliers constituting 80% of the Group's total purchases by amount