In Focus

Message from the President

The Nitto Group Will Continue to Support Our Customers and Create New Values for the Next 100 Years to Realize a Sustainable Society

Building on the Nitto Group’s “DNA” to bring about Innovations for the Next 100 Years to Come

The Nitto Group celebrated the centennial anniversary of its foundation in 2018. Reaching a major milestone is invigorating. In our quest to realize our Mission, “Contribute to customers’ value creation with innovative ideas,” we have identified the opportunities presented by changes in the market and the world at large since the inception of our business, thus creating values unique to the Nitto Group. Underlying this philosophy is a determination shared throughout the Group, that is, each and every employee should demonstrate a sense of ownership and listen with utmost care to what customers have to say to help them to find solutions to their issues. In this sense, all of our employees are in the business of marketing.

In the upcoming 100 years, we will be required to build a sustainable society where people can lead a sound and healthy life. If we - “Nitto Persons” with DNA of the Nitto Group - are to make such a future a reality, we must fulfill the important duty of “challenging ourselves to make innovations over the next 100 years.”

Because we are a B2B manufacturer finding ourselves somewhere between upstream and downstream of the value chain, a number of our products may not be visible to consumers. In the next 100 years, however, it will be important to enhance a public perception that the Nitto Group is a company that offers values essential for making innovations happen. For this, we must maintain an excellent reputation among our customers so that they will say, “Because of the Nitto Group’s involvement in the crucial part of our development process, we are able to realize products that we want to create.” I believe whether or not we can continue to offer such value will hold the key to our growth over the mid- and long-term.

Board Member
President, CEO&COO

高崎秀雄

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Material Issues for Sustainability

The Nitto Group has identified material issues for sustainability in order to simultaneously solve social issues and enhance corporate value. Two criteria were used for selection: whether it is for “co-creating value through innovation,” which is achieved through products and services, and whether it is for “enhancing management quality for co-creating value,” which is made possible by reinforcing the management foundations. In addressing these, we begin by recognizing risks and opportunities associated with each issue and feed them back to business plans.

Identification Process

Co-creating Value through Innovation (Issues to be Addressed through Products and Services)

Initiatives taken spontaneously through businesses designed to “simultaneously solve social issues and enhance corporate value”

step 1	Making a list of social issues (Social issues as business opportunities)	From among major documents on SDGs compiled by governments, academic societies, NPOs, and businesses, we have sorted out issues that are deemed to be socially important and compiled them in a list. We then selected issues that are relevant to us from the perspective of business opportunities after taking into account our business domains and the future course of our business.
step 2	Materiality assessment	For each of the social issues selected in Step 1, we assessed their materiality for society at large and the company over a 10-year period. Social materiality= How seriously and rapidly the extent of their impact is expanding (high growth potential of the relevant market) Nitto Group’s materiality= How possible it is for Nitto Group to provide products/services that tap into its strengths
step 3	Determining material issues	Based on the assessment results in Step 2, we identified “social issues whose relevant market offers high growth potential and is easy for the Nitto Group to gain an advantageous position” as material issues for sustainability for the Nitto Group.

step
1

Making a list of social issues
(Social issues as
business
opportunities)

From among major documents on SDGs compiled by governments, academic societies, NPOs, and businesses, we have sorted out issues that are deemed to be socially important and compiled them in a list. We then selected issues that are relevant to us from the perspective of business opportunities after taking into account our business domains and the future course of our business.

step
2

Materiality
assessment

For each of the social issues selected in Step 1, we assessed their materiality for society at large and the company over a 10-year period.

Social materiality=: How seriously and rapidly the extent of their impact is expanding (high growth potential of the relevant market)
Nitto Group’s materiality=: How possible it is for Nitto Group to provide products/services that tap into its strengths

step
3

Determining
material issues

Based on the assessment results in Step 2, we identified “social issues whose relevant market offers high growth potential and is easy for the Nitto Group to gain an advantageous position” as material issues for sustainability for the Nitto Group.

Enhancing Management Quality for Co-creating Value
(Issues to be Addressed by Reinforcing the Business Foundations)

A prerequisite to “simultaneously solve social issues and enhance corporate value,” which is addressed in response to requests from stakeholders

step 1	Making a list of requests from stakeholders (Requests from economic, environmental, and social aspects)	The “GRI Standards” issued by the Global Reporting Initiative (GRI) were used to select and make a list of requests from stakeholders.
step 2	Materiality assessment	For each of the requests from stakeholders selected in Step 1, we assessed their materiality for society at large and our company over a 10-year period. Social materiality= Breadth of stakeholders that make the requests Nitto Group’s materiality= Magnitude of impact on the Nitto Group and compatibility with its policies
step 3	Determining material issues	Based on the assessment results in Step 2, we identified “social issues whose solution is requested by a broad range of stakeholders and that have major impact on the Nitto Group” as material issues for sustainability for the Nitto Group.

step
1

Making a list of requests from stakeholders
(Requests from economic, environmental, and social aspects)

The “GRI Standards” issued by the Global Reporting Initiative (GRI) were used to select and make a list of requests from stakeholders.

step
2

Materiality assessment

For each of the requests from stakeholders selected in Step 1, we assessed their materiality for society at large and our company over a 10-year period.

Social materiality=: Breadth of stakeholders that make the requests
Nitto Group’s materiality=: Magnitude of impact on the Nitto Group and compatibility with its policies

step
3

Determining material issues

Based on the assessment results in Step 2, we identified “social issues whose solution is requested by a broad range of stakeholders and that have major impact on the Nitto Group” as material issues for sustainability for the Nitto Group.