Status of achievement of targets for FY2024/3
Although some targets were not met, we were generally able to achieve our goals.
Reductions in absolute Scope 1+2 emissions were also progressing smoothly, and by the fiscal year ending March 2024, we had achieved a 16% reduction, half of the SBTi well below 2°C target (30% reduction by 2030 compared to 2018). In terms of responsible procurement, there were also some areas where KPIs improved significantly, such as the average Eco Vadis score of suppliers, which greatly exceeded the target.
On the other hand, we did not achieve our targets for reducing landfill waste and improving the significant injury rate (SIR). These are long-term issues that are in a phase where it is not easy to make improvements, but we plan to raise the targets for some of them in the next medium-term plan and tackle them with a new approach.
| Environment |
| FY2024/3 target |
FY2024/3 progress |
- 8 percent reduction in CO2 intensity across glass manufacturing operations compared to CY2018
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- KPI of 0.69 kg CO2(e) / tonne of glass (e) was measured during FY2024/3. This represents a 4.9% YoY improvement in the KPI since FY2023/3 (0.73 kg) and an 8% improvement vs baseline of FY2018/3 (0.75 kg). This improvement was achieved via a combination of the continued efficiency improvements associated with the implementation of the NSG Group energy & carbon management program and increased activity in the procurement of renewable forms of energy.
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- 20 percent reduction of waste to landfill compared to FY2020/3
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- Waste to landfill remains at 21.6 kt in FY2024/3 versus FY2023. This is a 2.3% improvement versus the baseline FY2020/3, only.
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| Human Capital |
| FY2024/3 target |
FY2024/3 progress |
- Reduction of Significant Injury Rate (20 percent vs. FY2020/3)
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- Significant Injury Rate was 0.32, a 3% increase compared to FY2020/3. The cause is thought to be the lack of safety training for the new leaders. We will raise the target for the FY2027/3 and work towards achieving the target with a new approach.
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- Employee Engagement, "Our Vision" penetration ratio (80 percent)
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- In an employee attitude survey conducted in November 2023, 86% responded positively to the question on whether their immediate supervisor's decisions are in line with the core values of Our Vision, confirming that the penetration of Our Vision among employees is improving.
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- Female managers in NSG Group
- 12.7% as of 2021 June 30th
- FY2024/3 target: female manager increase at least 1% in each SBU and Function compared to 2021 June 30st
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- Female managers in NSG Group was 16% as of FY 2024/3 by 3.3% improvement. For 2027/3, we will raise our targets even higher, check our progress once a year, and share best practices to aim for further improvement.
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| Responsible sourcing |
| FY2024/3 target |
FY2024/3 progress |
- To achieve and maintain a 95 percent acceptance of the NSG Supplier Code of Conduct by our key suppliers.
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- 94% of Key suppliers have agreed to the Supplier Code of Conduct or can demonstrate their own equivalent code, achieved the target. This is an improvement of 4 points compared to FY2021/3. We will continue our efforts to improve the acceptance rate of the Supplier Code of Conduct with regard to key themes such as human rights and the environment.
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- To assess and monitor the sustainability performance of 65 percent of our suppliers by external spend.
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- EcoVadis sustainability assessments completed for 65% of external supplier spend, achieved the target. Compared to 52% for the fiscal year ending March 2022, there was a significant improvement of 13%. We have raised our targets for the fiscal year ending March 2027.
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- To achieve and maintain an average 50 sustainability score for all assessed suppliers.
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- Average scoring of all suppliers EcoVadis assessments reached 61 and achieved the target. In particular, the number of suppliers with low scores has decreased, leading to an improvement in scores.
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| Ethics & Compliance |
| FY2024/3 target |
FY2024/3 progress |
- Hotline utilization (Actual vs. benchmark data)
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- NSG Group received 174 reports for FY2024/3. (Decrease by 1 point from FY2023/3) The benchmark for similar-sized enterprises in number of employees is 275 according to an external consulting firm. Group E&C continues to analyze variance between the number of the actually received reports vs. the benchmark data.
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- Increase of concern reports from Manager's Report Form targeting 30 percent of the total report
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- The ratio of reports from Manager's Report Form (MRF) was 27 percent of the total reports in FY2024/3. (Decrease by 7 points from FY2023/3) Group E&C continues to promote MRF via various communication channels such as internal bulletins and newsletters.
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- Education completion ratio (95 percent completion by managers by 5 days before the deadline of the education campaign)
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- 98.4 percent of Key Roles completed relevant trainings during the annual education campaign in FY2024/3. 77 percent of managers completed by 5 days before the deadline. Group E&C will continuously make its best effort to raise the training completion rates.
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- Top level communications (Minimum four annually (CEO/C-Suite))
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- Top level communications regarding ethics and compliance were made four times during the fiscal year such as the message video by CEO and regional SBU heads during Ethics and Compliance Week 2023 and new CE&CO Introduction.
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In accordance with the new MTP starting from the FY25, the following targets will be addressed from the next financial year
| Materiality |
FY27 New Targets |
FY27 KPIs |
| Health and Safety |
Fatality |
Fatality and life-changing disability |
0 |
| Significant Injury Rate (SIR) |
0.20 |
| Ethics and Compliance |
Ratio of substantiated E&C hotline reports |
45% |
| Cases of retaliation reported to E&C |
0 |
| Fines associated with Competition or Bribery/Corruption violations |
0 |
| Ethics and Compliance (E&C) Annual Education |
100% completion with achievement or improvement of any above KPIs |
| Compliance Program Score and Effectiveness |
90% agreement/favorability |
| Safe and High-quality Products and Services |
Supply Chain |
Scope3 |
2.6 MT |
| Supplier collaboration |
Supplier spend signing up to Supply Chain Charter |
63% |
| Supplier spend with recognized ESG assessment |
74% |
| A weighted average score for all assessed suppliers |
Over 60 |
| Supplier spend with Diverse Suppliers |
2% |
| Quality |
Major quality spike (Quality incidents that affect external customers and have a financial impact of over 100 million yen) |
0 |
| Environment |
Carbon emission |
CO2 intensity |
3% YoY reduction |
| Renewable energy electricity ratio |
65% |
| Absolute Scope1+2 |
Reduction |
| Waste to landfill |
20% reduction (vs FY24) |
| Cullet ratio |
3% point increase vs FY19 |
| Water withdraw |
50% decrease vs FY19 in water stressed areas |
| Social shift and Innovation |
% Sales of the strategic products |
From 23% to 29% |
| Human Capital |
Employee Engagement |
% agreement for NPS question from "Your Voice" survey |
80% |
| DEI |
Female manager ratio |
24% (FY24 result: 16%) |