New Sustainability targets and KPIs
In line with the new medium-term plan starting from FY2025/3, the Group has set new sustainability targets and KPIs for the six materiality issues. It has identified as key issues to be addressed by the Group.
Materiality Targets (Fundamental Management Matter)
Health and Safety (Items separated in the new MTP)
We will continue to aim for zero fatalities. We will significantly raise our target for the significant injury rate (SIR) and work towards achieving it through new approaches such as introducing AI and CCTV cameras at our manufacturing sites.
Ethics and Compliance
As we have now become to receive a consistent number of reports through the hotline system (quantity aspect), we have set a new target focusing on the content of the reports (quality aspect). In addition, the feedback on Ethics and Compliance program including Ethics and Compliance Weeks we have received to date shows that there have been still fears among people about possible retaliation for reporting concerns. To enhance the reliability of the Reporting of Concerns system we have set a new target of zero incidents of retaliation. Furthermore, we have also set a KPI regarding employees' evaluation on the compliance program for its further improvement.
Safe and High-quality Products and Services
With regard to quality, we have set a new target of "zero major quality spikes (Quality incidents that affect external customers and have a financial impact of over 100 million yen)".
In the supply chain, we have raised the targets in several areas in light of the status of achievement of the targets for the fiscal year ending March 2024. Specifically, we have set a target of increasing the penetration rate of the Sustainable Supply Chain Charter, which is more advanced than the Supplier Code of Conduct. We have also increased the target for the supplier assessment coverage rate to 74%. We will continue to work towards achieving our targets by promoting the Sustainable Supply Chain Charter to our suppliers. In addition, we have newly specified reduction targets for Scope 3. We aim to achieve our Scope 3 reduction targets through ongoing engagement with suppliers involved in these hot spots.
Materiality Targets (Sources of Competitiveness)
Environment
In addition to raising our CO2 reduction target per unit of production, we have also newly specified a target for the ratio of renewable electricity. Although renewable electricity is easily affected by market price fluctuations, we will aim to further increase the ratio through our efforts to seek more economically viable procurement methods on a global level.
In addition, due to the effects of climate change, social anxiety about water resources has been increasing in recent years. In order to respond to these social issues, we have set a target to reduce water withdrawal by 50% in water stressed area. Furthermore, there is an accelerating trend towards a circular economy. In response to this trend, we have set a new target for the recycling of glass resources. In particular, in the Automotive Glass business, we are actively promoting glass recycling initiatives in collaboration with our customers. This will also contribute to the realization of a decarbonized society.
Social shift and Innovation
We have newly set quantitative sustainability targets for this item. The target we have set this time is to increase the sales composition ratio of strategic products. In particular, we aim to achieve this target by expanding sales of strategic products such as glass for solar panels which is one of our mainstay products, automotive glass such as head-up displays and roof lights for the future expansion of the EV market, and high-function glass products such as LPH (LED print heads) and multi-core optical connectors for data centres that support immersion cooling and address the issue of energy conservation in the future increase in data distribution volume. We aim to achieve this target by expanding sales of strategic products.
Human Capital
With regard to employee engagement, we have set a new goal of improving the "Employee Value Proposition". The measurement indicator will be the question "Would you recommend the NSG Group as a good place to work (Net promoting score, NPS)" in the internal employee attitude survey "Your Voice". In the survey in November 2023, it showed a high correlation with the results of the questions about the company's sustainability initiatives, and the results were interesting in that they suggested that the company's initiatives for sustainability have a positive effect on employee awareness, which in turn contributes to improving corporate value. We aim to achieve our KPI targets by implementing internal training on employer branding and making use of social media, etc. With regard to DEI, we have raised our targets even higher in light of the Japanese government's target for the ratio of female managers (30% by 2030).