Identification of materiality issues (important issues)

　The NOF Group has set KPIs and their targets for each issue in order to realize the ideal conditions contained in the NOF VISION 2030.Gaps between target figures and actual results are evaluated, and targets are re-set for the following year and beyond to achieve them.

Process of identifying materiality
【STEP1】Identify social challenges
　We will draw up a list of potential themes by adding new social issues and high-profile issues to the themes considered in the previous process. We will classify and consolidate the themes as materiality factors with reference to various guidelines.
　●ISO26000　　●GRI Standards　　●SASB CHEMICALS　　●SDGs
　●Competitors’ materiality issues　　●In-house workshops

【STEP2】Set priority levels
　We will assess the priority levels with which to tackle the materiality factors based on the two axes of “degree of impact on society” and “degree of impact on the company.” We will also add the following elements to our considerations.
　❶Results of evaluation of the Company by ESG rating agencies
　❷ESG-related opinions received from shareholders in the past twelve months
　❸Perspectives of issues pursued by the NOF Group in past CSR activity plans
　After summing up the opinions of the individual divisions that handle the promotion of CSR activities, we will hold discussions at Strategic Meetings, which comprise Operating Officers with a title, and in the Sustainability Committee chaired by the President, and select the important issues. The lead divisions and divisions tasked with handling the important issues will also draft KPIs and numerical targets.

【STEP3】Approval
　The Board of Directors will approve the important issues. The KPIs and numerical targets of each important issue will be adjusted as required based on the opinions of the Board of Directors. Based on this, the individual divisions will carry out their respective activities.

【STEP4】Review
　The important issues will undergo periodic reviews. Each of the important issues will be reviewed annually by following Steps 1-3 while incorporating internal and external stakeholders’ opinions.