Material Issues
To realize its mission statement, we have identified material issues by ascertaining stakeholders' expectations and placing importance on the changing social impacts of its business activities.
Material Issues of the NYK Group
We have positioned Safety, Environment, and Human Resources as its three material issues, with governance underlying them. These issues relate directly to our business, so employees are broadly aware of their importance. As we implement ESG management, our material issues form the core of management. The Group has formulated a specific management strategy to realize the new vision of the medium-term management plan announced in March 2023. The figure on the right presents the relationship between our Mission, Vision, and Value, as well as our management strategy, material issues, and governance.
Process for Identifying Material Issues
To realize its mission statement, we have identified material issues by ascertaining stakeholders' expectations and placing importance on the changing social impacts of its business activities. In the first fiscal year of the medium-term management plan, we identified more specific key themes associated with our material issues with a view to further advancing them. The ESG Strategy Headquarters took the lead in drafting the contents, which was discussed over multiple sessions with the ESG Strategy Committee. Thereafter, said proposals were submitted to the Board of Directors via the Management Meeting for confirmation and discussion regarding their appropriateness. In the process of careful discussion by many employees and members of lower, middle, and upper management, in addition to directors, the material issues, which have already penetrated the organization, are grasped more deeply by the Group's employees as they take more personal ownership of them. To realize our target state for 2050, we will continue to discuss material issues and identify key themes.
- 1Identify key themes
The ESG Strategy Headquarters takes lead, and the key themes that the NYK Group should engage with are determined through comprehensive consideration, discussion, and selection, making reference of the medium-term management plan, ISO 26000, GRI Standards, SASB, ESRS, the SDGs, and other companies.
- 2Establish importance
After discussions by the ESG Strategy Committee, which includes external advisors, the importance of the themes is evaluated with respect to both the Group and its stakeholders.
- 3Confirm appropriateness
The ESG Management Strategy Headquaters submits a report, wich is disucussed at the Management Meeting and then discussed and approved by the Board of Directors.
- *Note: Going forward, the ESG Strategy Committee will continuously discuss the contents of material issues and key themes.
Material Issues' Vision and Key Themes
In the identification process for making the material issues more specific for the new vision announced in the medium-term management plan, the NYK Group has formulated Material Issues' Vision and has set key themes to realize them. Governance is positioned as the foundation, and upon this foundation specific initiatives are determined to realize the vision.
Material Issues | Material Issues' Vision | Key themes |
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Safety | The NYK Group supports logistics sites with expert knowledge, skills, and experience based on a high level of safety awareness, and continues to be an organization where people create safety and safety protects and nurtures people's lives and livelihood. |
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Environment | The NYK Group will continue to be a force that supports the sustainable development of the Earth and humanity by taking a leading role in solving environmental issues on a global scale through continuous co-creation of necessary value for the future beyond the scope of a comprehensive logistics company. |
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Human Resources | The NYK Group encourages all employees to vigorously bring their best and authentic selves to work and to perform at their full potential, enabling us to remain a good corporate citizen implementing social susutainability initiatives. |
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Foundation:Governance |
Non-Financial Targets (KPIs) and Performance
Based on its material issues, the NYK Group has set numerical targets on non-financial KPIs and announced them in the medium-term management plan together with its financial indicators, return on invested capital (ROIC), net income, and ROE. Looking ahead, to monitor the progress of the key themes for realizing Material Issues' Vision, the Group will continue to examine and discuss setting more specific KPIs, such as those to heighten safety awareness (Safety), provide detailed GHG reduction targets (Environment), and utilize engagement surveys (Human Resources).
Material Issues | Target | FY2022 | FY2023 |
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Safety | Number od major accidents: 0 accidents | 2 accidents | 3 accidents |
Environment | GHG (Scope1+2) Reduction of 45% (vs. FY2021, -Absolute Corporate Emmissions Targets) by 2030 Net Zero (Scope1+2+3) by FY0250 |
Scope1+2: 11,331,299ton-CO2e (-11% vs. FY2021) Scope3:14,595,322ton-CO2e |
Scope1+2: 11,473,705ton-CO2e (-9.8% vs. FY2021) Scope3:14,929,553ton-CO2e |
Human Resources | Wemwn manager ratio of 30% by FY2030 | Non-consolidated :13.7% Consolidated: 25.2% |
Non-consolidated:13.6% Consolidated: 26.2% |
- *Note 1: Safety: The scope of application for the number of major accidents is currently under examination.
- *Note 2: Human Resources: Consolidated information disclosed in the annual securities report in June 2023
Material Issues and SDGs
We pursue the creation of social and corporate value by ensuring and enhancing safety, the environment, and human resources, which are material issues, while also contributing to achieving the SDGs (Sustainable Development Goals).