Process for Defining Materiality

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Defining the materiality of our priority CSR themes

In 2016, we defined the materiality of our priority CSR themes. We also established 10 fields of activities and 42 targets based on the 7th Medium-term Management Plan.
Going forward, we will repeatedly conduct dialog with major stakeholders, including customers, suppliers, shareholders and investors, employees and the local communities, while pursuing stakeholder engagement and continuing to review materiality and targets in line with the times.

Definition process for the materiality of priority themes (fiscal 2010 - 2015)

Evaluation of Materiality : Policy / Target Setting

2010 - 2012

  • Establish new CSR Policy
  • Set Complete prevalence of CSR application as the medium-term theme for the fifth Medium-term Management Plan (fiscal 2010 – 2012)

2013 - 2014

  • Set Complete prevalence of CSR application, and globalize CSR activities as the medium-term theme in the sixth Medium-term Management Plan (fiscal 2013 - 2015), and established 10 fields of activities and 30 CSR targets

2015

  • Establish 10 fields of activities and 42 targets to aim "Progressive Company" as the 7th Medium-term Management Plan (fiscal 2016 – 2020)

Evaluation of Materiality : Risk (Loss and Opportunity) Analysis

2010 - 2012

  • Implemented CSR fact finding survey (management and performance of principle departments). As a result, "compliance", "business continuity plan (BCP)", and "information disclosure" identified as three priority medium-term initiatives.

2013 - 2014

  • Implemented risk survey after identifying risk management as the medium-term priority initiative. As a result, compiled 370 specific examples with 22 classifications and 101 definitions and identified 21 material risks on two axes of degree of materiality and implementation status.

Evaluation of Materiality : Dialogue with Important Stakeholders

2010 - 2014

  • Held environmental meetings (local communities, NGK SPARK PLUG)
  • Gap analysis of our CSR and SRI evaluation
  • Participated in local disaster prevention meetings (government, citizens, NPOs, corporations)
  • Participated in information exchange meetings with neighboring companies held at Chamber of Commerce and Industry

Activity Review

2010 - 2012

  • CSR Policy determined by the Board of Directors. Three priority initiatives reviewed by CSR Committee

2013 - 2014

  • 30 CSR targets and responses to 21 material risks reviewed by CSR Committee

Standards and Guidelines for Reference and Analysis Tools

  • Japan Auto Parts Industries Association (JAPIA) guidelines & checklist
  • Japan Electronics and Information Technology Industries Association (JEITA) guidelines & checklist
  • Japan Business Federation "Charter of Corporate Behavior Action Plan"
  • GRI G4 Guidelines
  • ISO-26000
  • ISO 31000 risk analysis sheets, risk maps, risk management tables

List of 10 fields of activities and 42 targets under the 7th Medium-term Management Plan (fiscal 2016 - 2020)

Basic areas for maintaining corporate activities

All stakeholders

Fields of Activities Mid-term targets(by fiscal 2020) Department in charge
Management CSR Management ・Implement PDCA cycle to promote CSR on a global basis Risk Management Dept.
・Promote CSR awareness-raising activities on a global basis
Compliance
  Promotion System ・Construct a global promotion system Compliance Committee
・Continue education on helpline content
・Continue monitoring of compliance awareness and knowledge and corporate culture change
Security Control ・Deploy educational tools to NGK SPARK PLUG and group companies in Japan and monitor implementation status and effectiveness Confidentiality Management Committee
・Continuously improve security control, including group companies, and establish system for surveillance of implementation status
Export Control ・Establish a surveillance system for proper export management implementation status at both domestic and overseas group companies Export Control Committee
Information Security ・Continuously reduce security risk of group companies through deployment of Group Information Security Regulations Information Systems Dept.
Intellectual Property ・Implement patent review activities for mainstay products prior to design review meeting, including group companies Intellectual Property Dept.
・Establish new methods to deal with increasingly sophisticated counterfeiters, particularly in emerging countries
・Have at least 15% of submitted patents (S, A rank) be differentiation patents utilizing a patent portfolio that adds rivals’ information
Risk Management
  BCP/BCM ・Expand business continuity management system to group companies in Japan
・Construct a management system that can respond to not only earthquakes but also other disasters
BCM Working Group
・Create and put into operation procurement BCP mechanisms across the entire group Procurement Group
・IT-BCP countermeasures for server infrastructure (cloud utilization) Information Systems Dept.
Enterprise Risk Management ・Build company-wide risk management suited to NGK SPARK PLUG Risk Management Working Group
With Our Customers Safety and Quality ・Expand quality assurance to all group companies with a focus on goods for all customers Quality Committee, Corporate Quality Management Div.
・Expand quality management to all group companies aimed at delivering value to all customers
With Our Shareholders and Investors Information Disclosure ・Disseminate information that leads to increased shareholder trust Public Relations Dept. CSR Promotion Office (Risk Management Dept. in fiscal 2016)
・Disseminate information in an easy-to-understand and approachable manner on a global level Risk Management Dept.
・Construct a framework for an IR strategy aimed at institutional investors Accounting & Finance Dept.
・Disseminate information in response to stakeholders’ expectations and the changes in social trends Risk Management Dept.
With Our Employees Employment and Human Rights ・Implement fair evaluations that correspond to clear expectations Human Resources Dept.
・Establish educational programs that target the leaders of each group company
・Employ diverse human resources strategically
・Achieve personnel and human resource functions that contribute to the promotion of management strategy
・Further encourage the promotion of active participation by women
・Zero workers leaving their jobs in order to provide nursing care
・Achieve the mandatory number for employment of people with disabilities
・Promote active participation by seniors
Occupational Safety and Health ・Develop systems that make it difficult for accidents to occur aimed at developing a global safety culture Safety and Health Committee, Environment and Safety Management Dept.
Occupational Safety and Health ・Raise productivity by decreasing the rate of onset of mental illness Safety and Health Committee, Human Resources Dept.
With Our Suppliers CSR Procurement ・Use group companies’ periodic supplier evaluations and selection evaluations in global optimal procurement Procurement Group
・Reduce risk in the supply chain by thoroughly establishing CSR procurement Procurement Div., Risk Management Dept.
・Risk reduction, and education and awareness-raising through seminars
With Local Communities and International Society Social Contribution ・Continually enhance the social status of the NGK SPARK PLUG Group through social contribution activities Management Planning Dept., Public Relations Dept., General Administration Dept., Human Resources Dept., Environment and Safety Management Dept., Risk Management Dept. (Public Relations Dept. from fiscal 2016)
To Help Preserve the Environment Environment ・Promote environmental activities aimed at achieving global Eco Vision Environmental Committee, Environment & Safety Management Dept.