Special Feature 2022 - Integrated Report 2022
Toward Achieving Sustainability
Basic stance
Our definition of “sustainable business management” is to ensure that the direction of business strategies that the company pursues conforms with the path the world seeks in order to solve social issues, and to continue the company’s robust, steady growth.
While we recognize the need to review our overall management from a new perspective, the COVID-19 global pandemic has made us more strongly aware of the importance of being prepared for uncertainties. Thus, in order to ensure the sustainability of our businesses, we identified five issues of materiality based on the medium- to long-term visions of our stakeholders both inside and outside the company, and clarified 15 action themes, including “Realize a carbon-free society,” “Respect human rights and follow proper labor practices,” and “maintain and foster globally competitive human resources.” We have also established various systems to ensure the implementation of proactive and continuous improvement activities for each theme. For example, to check the progress of the improvement activities on a regular basis, the ESG Materiality Steering Committee was organized. We have also established a risk management system covering both financial and nonfinancial domains so as to promptly address risks that may arise in the future. Moreover, the CSR Charter, which was established in 2008 and has served as the most important guidelines for Nidec’s CSR to date, the CSR Declaration on the Conduct, which clarifies the actions that our employees should choose to take from the perspective of fulfilling their social responsibilities, and all the other documents and regulations concerning CSR constitute the foundation for our materiality initiatives.
We will continue to launch effective sustainability strategies by leveraging all of our philosophies and experience, with the aim of making our businesses more sustainable.
Organization to promote materiality actions
The five materiality issues Nidec has identified are associated with a total of 15 action themes, which are classified into three phases according to the timing of the start of action.* As a structure to check that each activity is being conducted steadily and effectively, the ESG Materiality Steering Committee is held periodically. Placed directly under the Management Committee, the ESG Materiality Steering Committee meets every month, affording almost all officers an opportunity to report on the progress and problems of their action themes on a phase-by-phase basis. Reports are given directly by the officers in charge of each action theme. The matters discussed and decided at the Committee meetings are immediately reflected in the action plan.
* Please refer to "Nidec's Materiality".
Establishment of the Sustainability Committee
In FY2022, we established the Sustainability Committee within the Board of Directors as a meeting body to manage and supervise the ESG Materiality Steering Committee. The operation of the Sustainability Committee allows us to secure a longer-term and broader perspective, identify current issues by working backwards from our ideal future self, or, “a global company that continues to grow for the next 100 years and beyond,” and promote initiatives. By doing so, we will enhance the sustainability of our management.
Significance of the Sustainability Committee
This committee is a new structure for Nidec to allow the Board of Directors to take ultimate responsibility for the sustainability of management. The five committee members are mainly composed of outside directors so that outside opinions can be reflected in management decisions. The members of the Sustainability Committee monitor the activities of the executive organization (ESG Materiality Steering Committee), thereby advancing Nidec’s sustainability management.
Messages from Sustainability Committee members
Of the five directors who have become members of the Sustainability Committee, the three outside directors share their aspirations.
Outside Director Takako Sakai, Chairperson
Many of Nidec’s products are environmentally friendly, featuring, for example, energy-saving properties. In addition, many of Nidec’s business sites are actively introducing or launching the use of renewable electricity. Put another way, Nidec’s business activities themselves have mechanisms that lead to environmental conservation. In consideration of the influence that Nidec has, I am enthusiastic, as Chairperson, about playing an important role in passing on the global environment to future generations. As the chair of the committee, I would like to create a path to improving corporate value while valuing the opinions of each committee member.
Outside Director Tamame Akamatsu, member
For the sake of society in 2030 and the Earth in 2050, I thought it was timely to establish a committee to actively address social issues. I have been involved in growing talent in the field of art, which has been rooted in all cultures around the world and passed down successively from generation to generation along with the history of mankind. From this standpoint, I would like to think about what is necessary and what can be done to create a future where the younger generation can have hope, regardless of market values such as production and consumption.
Outside Director Junko Watanabe, member
In the modern economy and society, corporate activities cause environmental problems and give rise to burdens on specific groups in terms of labor, human rights, and fair trade. To change this vicious cycle on a global scale, changing corporate activities is particularly important. I place great expectations on the transformative power of Nidec, which is expanding its business globally.
As a member of the Sustainability Committee, I would like to engage in discussions in a lively manner and steadily work on individual activities, including setting targets to be achieved, identifying specific issues to be addressed, drawing up guidelines, and considering schedules for achieving the targets.
