The NOF Group recognizes that matters concerning sustainability are our corporate social responsibility, and has established a system in which all Directors, including Directors who concurrently serve as Audit and Supervisory Committee members, participate in deliberations of the Sustainability Committee, which is chaired by the President. The Sustainability Committee meets regularly once a year, with ad-hoc meetings held when required.
In addition to regular annual reports, the details of ad-hoc committee discussions are also reported to the Board of Directors. As the secretariat divisions of the Committee’s deliberations are appropriately supervised and approved of by reconfirmation by the Board of Directors. As the secretariat of the Committee, the Corporate Planning & Strategy Department, Corporate Technical Division, Human Resources & General Affairs Department, Purchasing Department, and Corporate Communications Department promote the formulation and specific development of sustainability strategies for the entire Group.

The NOF Group identifies important risks and opportunities upon clarifying materiality (important issues) that could impact long-term management direction and corporate value. We have broadly divided these into the three categories of “Provide new values to realize a prosperous and sustainable society” (business growth strategy from the perspective of sustainability), “Strengthen the business foundation” (human capital strategy, etc.), and “Promote Responsible Care activities” (climate change response strategy, etc.), and have established long-term management strategies, individual business strategies, and sustainability-related targets and KPIs based on the major risks and opportunities.

The Risk Management Committee conducts a comprehensive assessment of business risks, including those related to climate change and human capital. Business risks are assigned individually to specific committees for monitoring, analysis, evaluation, and establishing countermeasures. Climate change-related risks are handled by the Responsible Care (RC) Committee and the Risk Management Committee, while human capital-related risks are handled by the Risk Management Committee. In addition, opportunities are discussed by the Executive Management Committee and the Priority Business Review Committee, and important matters are deliberated by the Executive Committee. A system has been put in place in which the deliberation results of these specialist committees and meetings are reported to the Board of Directors for supervision.

The NOF Group has established sustainability-related KPIs and monitors the progress of specific measures to achieve its corporate vision set forth in NOF VISION 2030. We have set the reduction of CO₂ emissions as a target for addressing climate change, which is an important issue in our business activities, and various targets related to better performance of human resources to measure the promotion of human capital management.
In addition, we have established metrics for net sales of strategic products in the three prioritized business fields of the Group, as well as for R&D investment, as KPIs for measuring business growth from the perspective of sustainability, and are monitoring these metrics.

We will increase the frequency of activities of the Sustainability Committee, an umbrella organization chaired by the President, as well as the various specialist committees to strengthen the risk management system.

The NOF Group considers sustainability in our business activities to be encompassed by our Corporate Philosophy: “Contributing to humanity and society as a corporate group that creates new value through the power of chemistry, from the biosphere to outer space.” We will strive to maximize the values that we share with every stakeholder and with society.