The NITTO KOGYO Group considers the preservation of the global environment to be one of the most important issues common to humanity.
Climate changes such as global warming as well are considered a major management issue affecting Group business.
In recognition of the risks and opportunities for business presented by climate change, we have taken active measures as we work to contribute to the sustainable society and improve our corporate value.

Governance Structure

In order to further advance its initiatives toward the realization of a sustainable society, NITTO KOGYO Group has established a Sustainability Committee, with the President as chair. Regarding climate change initiatives, this Committee, in collaboration with the existing Internal Governance and Environmental Conservation Committees among others, will monitor risks and opportunities as well as planning and executing strategies for environmental issues.
Regarding the status of climate change initiatives and future strategies, the Board of Directors will receive reports from this Committee, oversee its progress, and give directions on its measures.

Strategy and Risk/Opportunity Analysis

NITTO KOGYO Group is aware of the following major physical/transition risks and opportunities with regard to climate change.

[Physical risks (4°C scenario)]

• Risks in accordance with the expected generation of severe heat and violent storms as global warming goes unprevented

[Transition risks (1.5°C scenario)]

• Risks expected in a world where reinforced regulations to prevent global warming have limited average global temperature increases to 1.5°C compared to levels before the Industrial Revolutionz

Regarding physical risks affecting NITTO KOGYO Group, the main issues are disaster risks for manufacturing bases caused by increased frequency and violence of climate abnormalities, while transition risks involve the handling of increased manufacturing costs due to reinforced regulations toward a zero-carbon society. Elsewhere, important opportunities include handling increased demand for disaster prevention/mitigation commodities, greater need for renewable energy, and greater demand for EV (electric vehicle) chargers and equipment toward the EV society expected to come about rapidly.
Based on the above, the risks and opportunities in the table below are considered important influences requiring continued management.

Risk Management

The NITTO KOGYO Group considers measures addressing climate change problems to be an important issue. Important risks and opportunities for each business are identified, and initiatives and measures are discussed before being implemented throughout the Group.
In addition, our greenhouse gas emission results are calculated annually, with target progress management conducted by the Board of Directors. Further, greenhouse gas emission amounts are taken into consideration when conducting facility investment as well, affecting judgments on equipment introduction.

Indicators and Targets

The NITTO KOGYO Group has established the following targets toward realizing a sustainable society and improving corporate value, with measures in progress to reduce supply chain emission amounts.

FY2020 NITTO KOGYO emission amounts
(Scope 1, 2)

FY2020 Other indirect emission amounts
(Scope 3)

Related link: Supply chain emission amounts

GHG (greenhouse gases) Reduction Initiatives

In order to further supply chain emission amount reduction initiatives, NITTO KOGYO Group has grasped and disclosed not only its own emission amounts (Scope 1, 2) but also other indirect emission amounts (Scope 3).
Calculation and data collection methods for Scope 3 are to be further revised to increase their accuracy, leading to more accurate figures.

Regarding our own emission amounts (Scope 1, 2), energy saving during product manufacturing will make progress through improved productivity and the introduction of energy-saving equipment. In addition, along with a shift to energy with lower greenhouse gas emissions, we will work to create energy through the introduction of photovoltaic power generation facilities.

Regarding other indirect emission amounts (Scope 3), we will work with suppliers to reduce greenhouse gas emission amounts based on calculation results, as well as creating product and service value based on their environmental aspects. By providing customers with products and services for their use with lower greenhouse gas emissions than their conventional equivalents, we contribute to the reduction of greenhouse gas emissions throughout society.
In addition, because the electrical and information infrastructure is essential in realizing the zero-carbon society, we will work to provide, develop, and promote products and services such as EV chargers which reduce the environmental load, in accordance with society's needs.