In Focus

Message from the President

Responding to Change Flexibly to Persevere in an Uncertain Time

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

The global COVID-19 pandemic has brought with it economic stagnation and changes in consumer behavior, which is increasing the uncertainty of the future. Throughout its more than a century-long history, the Nitto Group has been able to sustain its growth through numerous tribulations. Faced with this latest hardship, we hope to keep moving forward by flexibly coping with change.
When the whole world plunged into a recession in the wake of the global financial crisis of 2008, we implemented drastic reforms under the keywords of “Mu-Gen-Dai”: “Mu (eliminating),” “Gen (reducing),” and “Dai (substituting).” At that time, we extensively examined what in our everyday jobs, equipment, and systems could be “eliminated,” “reduced,” or “substituted.” With this approach, we were able to make a turnaround earlier than expected.
Going forward, we will streamline the things that we should continue doing, and replace what needs changing with novel ideas, in an attempt to wade through this time of uncertainty.

Board Member
President, CEO&COO

髙﨑秀雄

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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