ESG Management Promotion Activity Report

Summary of ESG Management Promotion Activities in Fiscal 2020 and Outline of Next Year's Targets

The content of ESG Management Promotion Activities is organized and summarized from the perspectives of the NYK Group's materialities of "Safety," "The Environment," "Human resources," and "Governance."

Please see the GHQ Environmental Management Program for FY2020 for a summary of environmental activities and goals.

1.Safety

【ISO26000 Core Subjects】 O:Organizational Governance, H:Human Rights, L:Labour Practices, E:Environment, F:Fair Operating Practice, CI:Consumer Issues, CD:Community Involvement and Development

[Self-evaluation standard] Achieved: ◎ Almost Achieved:〇 Partially Achieved:△

Fiscal 2020 targets ISO26000
Core Subjects
Achievement/progress of fiscal 2020 Achievement
rate
Fiscal 2021 targets
1.Reduction of fleet accidents (Ensuring safety)
  1. 1Eliminate major accidents
  2. 2Reduce fleet downtime (10 hours / year / vessel)
  3. 3Conduct emergency preparedness and response
L,E

*From 2020, the calendar year (CY) is used instead of the company’s fiscal year (FY).

  1. 1-1Conducted NAV9000 audits (shipmanagement companies and ships) Audited 67 vessels / 6 companies, 395 corrective
    action requests
  2. 1-2Near Miss 3000 activities (increased companies to be covered) 32 target companies and 62,887 reports
  3. 1-3Convened various safety promotion meetings and safety seminars
    Held a Global SEMC*1 meeting (Nov), fleet safety promotion meetings (Oct, two meetings), and meetings of the president, captains, and chief engineers (September 2020)
  4. 1-4Distributed safety information total of 45 documents
  5. 1-5Conducted safety campaigns 305 vessels / 435 participants (*As not visit but remote)
  6. 1-6Developed method for preventing engine plant accidents by utilizing big data
    →Continuing development of apps
    →Founding of Remote Diagnostic Center (RDC) in the Philippines to monitor engine plants on NYK vessels
  7. 2Continued activities to minimize fleet downtime (overall) 17.1 hours/vessel (of this 7.5 hours/vessel for engine trouble)
  8. 3-1Conducted emergency response drills and reviews six times
  9. 3-2Conducted media response drill and reviews conducted drill (November) and employee e-Learning (Nov-Jan)
  10. 3-3Responding to seafarer manning issue caused by COVID-19; establishment of COVID-19 Crew Change Task Force
  1. 1Eliminate major accidents
  2. 2Reduce fleet downtime (10 hours / year / vessel)
  3. 3Conduct emergency preparedness and response
2.Safety activities with vessel owners and customers
  1. 1Visit vessel owners and conduct seminars for vessel owners
  2. 2Information sharing with shipmanagement firms
  3. 3Formulate safety guidelines with customers, shipping companies, and classification societies
L,CI
  1. 1Called for cooperation in blackout recovery tests for chartered vessels, held safety seminars, and shared information and exchanged opinions with vessel owners
  2. 2Conducted emergency communication training with relevant outside parties, such as terminals, shipmanagement companies, customers, etc. (four times)
  3. 3Formulated safety guidelines for areas not covered by IMO or other regulations with customers, shipping companies, classification societies, and other maritime industry entities (participated in eight committees during the year)
  1. 1Visit vessel owners and conduct seminars for vessel owners
  2. 2Information sharing with shipmanagement firms
  3. 3Formulate safety guidelines with customers, shipping companies, and classification societies
3.Prevention of accidents, investigation of causes, and gathering information for terminal
  1. 1Adopt and implement an internal audit system. Evaluate whether work is conducted according to safety standards
  2. 2Continue to raise on-site capabilities through mutual safety cross-patrols conducted among terminals in Japan
L,F
  1. 1Remote internal audit of terminals
  2. 2Temporary suspension of safety patrols at terminals to prevent against COVID-19
  1. 1Adopt and implement an internal audit system. Evaluate whether work is conducted according to safety standards
  2. 2Continue mutual safety cross-patrols of terminals in Japan,
    develop safety standards for other group port companies and use
    that as a base to establish a safety standard policy to further
    enhance our on-site operating capabilities.
4.Ensuring thorough safety management at shipyards and
ship equipment manufacturers
Ensure safety management based on safety standards at each company E,F Japan Marine Science Inc. (formerly Nippon Yusen Engineering) makes use of its QMS for safety management by conducting regular patrols of each ship site and conducting daily correction requests. In the Kure shipyard, Japan Marine United Corporation holds safety and quality management conferences to provide feedback that can then be used for the construction of subsequent ships. Ensure safety management based on safety standards at each company
5.Preparation for disasters
  1. 1Update the Company’s business continuity plan (BCP)
  2. 2Conduct disaster drill and BCP training to raise the effectiveness of disaster prevention plans and business continuity plans
O,CD
  1. 1Revised BCP document (May)
  2. 2Conducted disaster drills (twice) and BCP training (twice)
    Conducted emergency contact training utilizing IT tools for all employees
  1. 1Update the Company’s business continuity plan (BCP)
  2. 2Conduct disaster drill and BCP training to raise the effectiveness of disaster prevention plans and business continuity plans
  1. *1SEMC:Safety & Environmental Management Committee

2.Human Resources

【ISO26000 Core Subjects】 O:Organizational Governance, H:Human Rights, L:Labour Practices, E:Environment, F:Fair Operating Practice, CI:Consumer Issues, CD:Community Involvement and Development

[Self-evaluation standard] Achieved: ◎ Almost Achieved:〇 Partially Achieved:△

Fiscal 2020 targets ISO26000
Core Subjects
Achievement/progress of fiscal 2020 Achievement
rate
Fiscal 2021 targets
1.Workstyle reforms
  1. 1Establish an environment and cultivate a workplace atmosphere that enable diverse human resources to play an active role
  2. 2Reduce work hours, promote work-life balance, implement workstyle reform, and use IT to improve the work environment and increase efficiency and productivity
  3. 3Promote measures to improve employee health
H,L,F
  1. 1Conducted seminars for parents, pre- and post-maternity leave counseling, returnee counseling; introduced a mentor program; supported career development while managing workstyle and work hours
  2. 2Revised workstyles by expanding the target of work-at-home to all employees, implementing go-home-early days for parents, promoting use of the flex-time system raised employee awareness regarding increasing labor productivity
  3. 3Certified as a company in the large enterprise category of the Certified Health and Productivity Management Organization Recognition Program for excellent health and productivity management for a five year in a row
    Arranged for trainers to provide personal advice, held a charity run around Tokyo’s Imperial Palace(Trainer lesson delivered as a video due to COVID-19) , and ensured thorough implementation of health checks(consultation rate:100%)
  1. 1Establish an environment and cultivate a workplace atmosphere that enable diverse human resources to play an active role
  2. 2Reduce work hours, promote work-life balance, implement workstyle reform, and use IT to improve the work environment and increase efficiency and productivity
  3. 3Promote measures to improve employee health. Headquarters (non-consolidated) aiming for a 100% health checkup
2.Human resources development in Japan and overseas
  1. 1Implement a variety of training and human resources exchange programs in Japan and overseas based on the HR philosophy*2 to enable group employees to fully utilize their abilities in a broad range of business areas
  2. 2Development of problem-solving leaders utilizing advancements in DX
H,L
  1. 1-1Implemented NYK Business College training for enhancing the total ability of group employees (about 55 courses)
  2. 1-2Cancellation of Global NYK/YLK Week 2020 (November) due to COVID-19
  3. 2.Human resources development through original in-house NYK program; 21 graduates in FY2020
  1. 1Implement a variety of training and human resources exchange programs in Japan and overseas based on the HR philosophy*2 to enable group employees to fully utilize their abilities in a broad range of business areas
  2. 2Development of problem-solving leaders utilizing advancements in DX
3.Seafarer training
  1. 1Conduct review of NYK Maritime College (NMC)
  2. 2Conduct of practical training on dangers
  3. 3Educate seafarers and transfer knowledge in LNG projects
L,E
  1. 1Conducted NMC reviews to improve vessel safety and raise the training quality. Beginning in the current fiscal year, added e-learning to the classroom instruction of the NMC training and drills to further instill NYK maritime skills to our group seafarers
  2. 2Training conducted at the NYK-TDG Maritime Academy (NTMA) in the Philippines and the Tolani Maritime Institute in India; 184 seafarers attended in FY2020 (6,106 participants have participated since the start in 2015); training not been held since April 2020 due to COVID-19
  3. 3Temporary suspension of education of Angolan and Nigerian seafarers at educational facilities due to COVID-19
  1. 1Conduct review of NYK Maritime College (NMC)
  2. 2Conduct of practical training on dangers
  3. 3Educate seafarers and transfer knowledge in LNG projects
  1. *2HR philosophy: Continually develop diverse talent at all group companies across global fields

3.Governance

【ISO26000 Core Subjects】 O:Organizational Governance, H:Human Rights, L:Labour Practices, E:Environment, F:Fair Operating Practice, CI:Consumer Issues, CD:Community Involvement and Development

[Self-evaluation standard] Achieved: ◎ Almost Achieved:〇 Partially Achieved:△

Fiscal 2020 targets ISO26000
Core Subjects
Achievement/progress of fiscal 2020 Achievement
rate
Fiscal 2021 targets
1.Human rights due diligence,
Human rights awareness
  1. 1Human rights due diligence / impact assessment
    Understand, identify, and check NYK efforts regarding human rights issues via the Global Compact Promotion Committee, in addition to HR surveys and e-learning (CSR) for all group companies
  2. 2Human rights awareness Conduct human rights training, publicity activities during Human Rights Week and awareness of LGBT
O,H,F
  1. 1-1Verified through an HR survey measures at group companies concerning human rights issues and UN Global Compact compliance status
  2. 1-2Attended human rights education and due diligence meetings of Global Compact Network Japan collected human rights related information and recognized issues for the Company
  3. 2Conducted human-rights-awareness building during our new employee training and new manager training, shared information during Human Rights Week on the theme of business and human rights, and eliminating harassment
Human rights awareness
  • Conduct human rights training, publicity activities during Human Rights Week and awareness of LGBT
  • Establishment of various consultation windows, such as those addressing harassment
  • Group employees surveyed on employee human rights topics through HR survey and CSR e-learning questionnaire
2.Environment-friendly vessel sales and dismantling operations
Promotion of ship recycling based on NYK standards H,L,E,F Dismantling of five vessels at yards meeting NYK standards Actively disseminating ship-recycling policy to outside parties; conducting activities to increase treaty-certified yards
3.Compliance inspections
  1. 1Transmit CCO messages, then institute surveys about compliance awareness(headquarters)
  2. 2Conduct overall inspections (group companies in Japan)
  3. 3Implementation of compliance training
O,F
  1. 1Results of awareness survey reported at Compliance Committee meeting in October, and feedback provided to employees through in-house bulletin board
  2. 2Implementation status for domestic group companies confirmed at the end of the fiscal year
  3. 3Compliance training conducted online and via e-learning on topics that included antitrust law and bribery
  1. 1Transmit CCO messages, then institute surveys about compliance awareness(headquarters)
  2. 2Conduct overall inspections (group companies in Japan)
  3. 3Implementation of compliance training
4.Antitrust law risk assessment
  1. 1Conduct surveys, interviews, risk evaluations, and periodic inspections after risk assessment regarding antitrust law compliance at group companies in Japan and overseas as well as the various departments at the headquarters
  2. 2Hold meetings of the Executive Committee Overseeing Thorough Law Compliance
  3. 3Preliminary antitrust risk check conducted
  4. 4Preliminary check to prevent bribery of foreign civil servants conducted
F
  1. 1Conducted risk assessments and regular inspections at NYK headquarters departments and group companies in Japan and overseas
  2. 2Convened the Executive Committee Overseeing Thorough Law Compliance (September 2020)
  3. 3Cases brought to consultation given appropriate responses
  4. 4Cases brought to consultation given appropriate responses
  1. 1Conduct surveys, interviews, risk evaluations, and periodic inspections after risk assessment regarding antitrust law compliance at group companies in Japan and overseas as well as the various departments at the headquarters
  2. 2Hold meetings of the Executive Committee Overseeing Thorough Law Compliance
  3. 3Addition of examination function for investment projects, etc.
  4. 4Addition of examination function to new projects classified as high risk depending on the conditions of the business country and business field
5.Information system security measures
  1. 1Improve measures to counter viruses and hacking, etc., with the PDCA cycle and prevent internal information leaks
  2. 2Improve the security awareness of group employees
  3. 3Roll out ISMS-based security standards to group companies
  4. 4Adopt new groupware
O,CI,CD
  1. 1Introduction of EDR, construction of 24-hour monitoring system by GSOC
  2. 2Implemented e-learning and suspicious email training, and disseminate information through bulletin boards to increase awareness
  3. 3Addressed each group company individually
  4. 4Provided tech support to install security functions at group companies using groupware
    Activation of communication by releasing new functions of the system
    Maintaining standards of security and governance when work-at-home
  1. 1Improve measures to counter viruses and hacking, etc., with the PDCA cycle and prevent internal information leaks
  2. 2Improve the security awareness of group employees
  3. 3Roll out ISMS-based security standards to group companies
  4. 4Adopt new groupware
6.Dialogue with investors
  1. 1Actively promote communication from the president and management, such as directors, at biannual small meetings with institutional investors and financial results briefings conducted four times a year, as well as the IR Division contacting investors
  2. 2Visit people in charge of the exercise of voting rights at institutional investors to explain our governance system, etc., and engage in dialogue
O
  1. 1Online financial results briefings conducted four times a year: Total 566 participants (excluding our directors, executive officer, and employees) The NYK ESG Story briefing: Total 135 company participated
    Online small meetings with the president (twice in June and November): Total 38 companies participated
  2. 2Online dialogue with people in charge of the exercise of voting rights at institutional investors inside Japan(total 3 companies and 7 participants)
    Conducted ESG engagement(8 times with total 7 companies)
  1. 1Actively promote communication from the president and management, such as directors, at biannual small meetings with institutional investors and financial results briefings conducted four times a year, as well as the IR Division contacting investors
  2. 2Dialogue people in charge of the exercise of voting rights at institutional investors and ESG engagement
7.Ensuring thorough SCM
(fuel supplier evaluations)
Employees in charge evaluate all suppliers that we deal with and reflect the results in future purchasing activities (Evaluation items include quality, delivery, price, support for trouble, the provision of information, etc.) O,F Purchasing agreements are being made based upon multifaceted evaluations of supplier pricing, services, and performance at the time of agreement. Agreements are accompanied by compliance contracts and are updated every three or six months
We will continue to consider new evaluation methods and reflect them in systematic purchasing activities
Employees in charge evaluate all suppliers that we deal with and reflect the results in future purchasing activities (Evaluation items include quality, delivery, price, support for trouble, the provision of information, etc.)