Our fundamental view

　Based on the basic philosophy that “a company is its people,” we will actively invest in human capital and new value encourage the growth of human resources who embody the NOF Group’s values of “Challenges,” “Fairness,” and “Harmony,” and can also create new value.

Three pillars of human resources performance

Human resources development
　In addition to our existing talent development system, we will promote human resource development measures aimed at fostering autonomous human resources, global human resources development, digital transformation (DX) human resources development, and support for career design development. We will introduce a “challenge goal system” to encourage employees to boldly take on difficult goals from a medium- to long-term perspective as part of the goal-setting items in personnel evaluations, and continue to create a corporate culture that recognizes tackling challenges.


Diversity
　We will continue to hire diverse human resources regardless of their gender, age, nationality, or disability. In addition, in order to create a corporate culture in which women can play a more active role, we will actively hire women and enhance systems that facilitate women's work. Furthermore, we will continue to hire mid-career human resources to accelerate our expansion into new business areas.


Employee engagement
　We will continuously advance creation of mechanisms, systems, and workplaces that enable each employee to understand our Corporate Philosophy and Values and perform their duties with motivation. We will also conduct employee engagement surveys on a regular basis and strive to improve job satisfaction.


　Through these activities for the three pillars, the NOF Group will contribute to people and society as a corporate group that creates new value through the power of chemistry

Taking on the challenge of creating new value

　Three values of “Challenges,” “Fairness,” and “Harmony” We hope to weave values appropriate to the new era with the power of chemistry together with our customers by leveraging our organizational culture in which employees them-selves embody these values and act in accordance with them.
　Amidst the rapidly changing and increasingly uncertain business environment, in order to face various social issues, be perceptive of the progress of innovative technologies, and take on the challenge of creating new value, last year we discussed anew our mission and path forward and established our new Corporate Philosophy and values to uphold. Based on the belief that human resources development is the foundation of management, we will continue to provide generous support for the growth aspirations of our employees and enhance the potential of our human resources by expanding diversity and improving employee engagement, while also taking into account the perspective of human capital management.

Governance

　The NOF Group identifies materiality (important issues) related to sustainability through discussions in the Strategic Meeting, which is composed of Directors concurrently serving as Operating Officers as well as Operating Officers with a title, and the Sustainability Committee, which is chaired by the President. This is then reported to the Board of Directors. For each materiality issue, KPIs and target values are set and activities are promoted by the supervising organization or department in charge. The progress and results are reported to the Sustainability Committee. The Sustainability Committee reviews materiality with the participation of all directors, and examines key issue items, KPIs, target values, and response policies in order to continuously improve the level of activities.
　Response to human capital is identified as one of the materiality issues, and important matters including medium- and long-term targets are discussed at the Sustainability Committee. In regard to risks, the Risk Management Committee conducts a comprehensive assessment, and the Compliance Committee implements risk countermeasures and analysis. A system has been put in place in which the results of deliberations are reported to the Board of Directors at least twice a year for supervision.

Strategy for human capital / Metrics and targets

We create diverse human resources that takes on the challenge of
creating new value.

Human resources development
　Faced with a business environment where uncertainty is the norm, it is necessary to continuously create innovation even in such an environment. To do so, it is more important than ever before to utilize human resources as important capital to support corporate performance. The driving force behind sustainable growth for the company will be providing employees, regardless of their age or career stage, with opportunities to constantly learn new knowledge and skills and encouraging them to take on new challenges through enhancement of training at the organizational level and regarding specific issues as well as expansion of support for self-education/development. Furthermore, in order to keep up with the speed of technological advancement, we will not only conduct in-house development of employees, but also hire diverse human resources with the aim of developing our human resources who take on challenges.

【Strategic investment】
①Promotion of employees’ autonomous growth　
　・Strengthening development of autonomous human resources
　　　We will consider establishing new training at the organizational level and regarding
　　　specific issues to foster a mindset in employees that encourages the actions necessary
　　　for business expansion and personal growth.
　・Support for career design development
　　　We will consider support for career design development so that employees can
　　　proactively form medium- and long-term goals and develop their skills effectively and
　　　efficiently.

②Promotion of development of DX human resources
　　　We will consider establishment of new DX human resources training.

③Promotion of development of global human resources
　　　We will consider revision of overseas study programs and related overseas educational
　　　systems, as well as development of global human resources.

　Training costs
　　FY2025 (aestimate)：¥242million　Over 2.5-fold(compared with FY2022）

Diversity
　The NOF Group believes that human resources are the source of corporate growth, and designates one of its materiality items as “better performance of human resources.” We promote diversity and inclusion based on the belief that acceptance and respect for diversity will promote the creation of innovation. We aim to be an organization where employees with diverse values can voluntarily and proactively take on all challenges with a sense of purpose, and where employees with talent and motivation are appropriately evaluated and can play an active role.

①Rate of hiring of female new graduates recruited for career-track positions
　　Actual：35.3％（2020）、42.9％（2021）、36.1％（2022）
　　Goals：30％ or more（Every year）
　　Measures：
　　　　　・Active recruitment activities
　　　　　・Implementation of training to promote the active participation of women
　　　　　・Multifaceted internal environment improvement

②Rate of female management-level employees
　　Actual：4.4％（2020）、4.8％（2021）、4.7％（2022）
　　Goals：Over 3-fold (Compared with FY2021)（2030）
　　Measures：
　　　　　・Systematic promotion of appointment of female management-level employees

③Percentage of employees with disabilities
　　Actual：2.30％（2020）、2.43％（2021）、2.46％（2022）
　　Goals：3.0％以上（2030）
　　Measures：
　　　　　・Expansion of employment of people with disabilities and workplace
　　　　　　environment improvement

④Pay gap ratio between male and female employees※
　　Actual：Full-time employees70.4％（2021）、Full-time employees70.6％（2022）
　　Goals：Full-time employees75％以上
　　Measures：
　　　　　・Balance of work with childbirth, childcare, etc.
　　　　　・Promotion of utilization of childcare leave by male employees
　　　　　・Promotion of workplace environment improvement that enables women to work
　　　　　　in shifts
　　　※Pay gap ratio between male and female employees (%) = Average annual income of
　　　　women / Average annual income of men x 100

⑤Rate of male employees utilizing childcare leave
　　Actual：53.5％（2020）、50.0％（2021）、95.2％（2022）
　　Goals：100％（2030）
　　Measures：
　　　　　・Expansion of measures 2030 (numerical targets) to support utilization
　　　　　　Implementation of promotion of utilization

⑥Rate of hiring of mid-career workers※
　　Actual：15.9％（2020）、28.6％（2021）、29.4％（2022）
　　Goals：25％ or more（Every year）
　　Measures：
　　　　　・Proactive, systematic Every year (numerical targets) recruitment in response to
　　　　　　business expansion, etc.
　　　※Rate of hiring of mid-career workers (%) = (Mid-career workers hired from April 1 to
　　　　March 31) / (Total of new graduate hires and mid-career workers hired from April 1 to
　　　　March 31) x 100　

Employee engagement
　Based on the philosophy that “a company is its people,” the NOF Group believes that the driving force for creating new innovation and corporate growth is having each and every employee perform their duties with motivation and understanding of our Corporate Philosophy and values. As one of our efforts to achieve this, we aim to improve employee engagement and create comfortable workplaces from various perspectives, including diversity and inclusion, talent development, work-life balance, health management, occupational health and safety, and labor-management relations. In addition, NOF has conducted employee engagement surveys since fiscal 2022 to ascertain employee engagement and the results of past initiatives. The employee engagement survey identifies our overall engagement score based on engagement related to work and duties (creativity, relationship building, and meaning-making) and engagement related to the company and organization (work content, human relations, and organizational systems). We are working to improve employee engagement by taking various measures to create comfortable workplaces.

Overall employee engagement score
　　Actual：49.5（2022）
　　Goals：50 or more（2025）
　　Measures：
　　　　　・Consideration of specific measures based on the employee engagement survey

Raising of the retirement age
　NOF has established a continuous employment system for re-employment of retirees and has been utilizing it as an important measure to secure employment opportunities for older workers. Through the operation of this system, we have created opportunities for self-fulfillment after retirement and enabled retirees to demonstrate their skills and experience. We have decided to raise the retirement age to 65 years old from fiscal 2023 in order to further utilize human resources.

Strategy for Human Capital / Risks and Opportunities

　The NOF Group is taking the following measures to address major risks related to human capital.

①Delays in fostering human resources（Risks）　
　⇒　Steady promotion of human resources development measures
　Constant provision of opportunities to learn new knowledge and skills
　●Promotion of human resource development measures by expanding our unique
　talent development system, which is systematized into “training at the organizational level,”
　“training regarding specific issues,” and “self-education/development.”
　● Provision of opportunities for employees to constantly learn new knowledge and skills
　regardless of their age or career stage
　● Development of global human resources through overseas training and educational
　systems
　● Development of DX human resources

②Labor shortages（Risks）　　
　⇒　Active recruitment activities (Securing human resources)
　Prevention of mismatches and proactive disclosure of information on recruitment
　●Proactive disclosure of information on recruitment
　● Enhancement of recruitment information, such as introductions of business activities
　and job descriptions, through the use of the website
　● Holding company information sessions for each job category
　● Implementation of internships that accept high school students

③Rise in turnover rates（Risks）
　⇒　Comfortable workplaces (Utilization of the job return system)
　Creation of an environment where employees can continue to work with peace of mind
　●Expansion of various systems related to childcare and nursing care
　●Provision of information on support for balancing work with childcare and nursing care
　using a handbook
　●Promotion of dialogue between supervisors and subordinates through a self-reporting
　system, etc.
　●Creation of an environment where employees can continue to work with peace of mind,
　 such as by conducting stress checks and establishing counseling services
　● Utilization of career opportunities through rehiring (job return) of retired employees

Risk management

　Within the NOF Group, the Risk Management Committee comprehensively identifies various management risks surrounding its business, and conducts company-wide risk assessment on the level of impact and potential for occurrence of each risk item in order to identify risks that need to be addressed as a priority. In disclosing information, a working group consisting of members selected from the Risk Management Committee and the Compliance Committee plays the central role in identifying the risks affected by human capital among the various management risks surrounding our business, and conducts risk assessments to determine the degree to which the impact will change in the future. The analysis results are reported to the Sustainability Committee, and important decisions are made related to human capital risk countermeasures.

Initiatives for human capital

　The NOF Group is promoting various initiatives related to human capital.

• Response to human capital（1.6MB）