Materiality
To promote sustainability management, the NOK Group has identified materiality (key issues) for FY2024 across four areas: business, environment, society, and governance. These key issues were identified based on the materiality identification process outlined below.
NOK Group’s Materiality
| Improving profitability | Improving profitability is essential for the sustainable growth of our business. We will improve profitability through the development and sales expansion of function-specific xEV products and green energy-related products, as well as the project for creating new growth areas launched in FY2024. |
|---|---|
| Addressing global environmental issues | One of our critical missions is to leave behind a rich global environment for future generations. We will realize a sustainable society by shifting to green factories, which involves utilizing renewable energy and adopting energy-saving equipment, and offering eco-friendly green products. |
| Responding to human rights, human resources, and the working environment | Harnessing the full potential of diverse human resources is essential for sustainable corporate growth. To secure and develop global talent, we will advance initiatives such as designing HR systems and educational programs and improving workplace environments, as well as promoting the creation of an organization aligned with our management strategies. |
| Strengthening corporate governance and management systems | We have positioned strengthening the business management system as one of our key management priorities in order to achieve sustainable global growth. We aim to reinforce Group-wide coordination by adopting a global matrix structure and to enhance management effectiveness and transparency by transitioning to a company with an audit and supervisory committee. |
Materiality Identification Process
STEP 1: Identifying key challenge candidates
The Sustainability Office took the lead on this project, collecting information on global social issues and identifying key social challenge candidates with a significant impact on both the company and society while referencing sustainability information disclosure guidelines, evaluation criteria from ESG rating agencies, and other documents.
Furthermore, the CEO Office played a leading role in identifying challenges concerning the sustainable growth of the business after assessing them against the four transformation initiatives outlined in the Medium-Term Management Plan (FY2023-FY2025).
STEP 2: Prioritizing key challenge candidates
We gathered opinions from internal departments concerning the identified challenge candidates and evaluated them from both social and management perspectives. We then selected four challenges that were high priorities for stakeholders and that had a high level of impact on our business.
STEP 3: External expert consultation
We verified the validity and comprehensiveness of the four selected challenges through external expert consultation.
STEP 4: Deliberation by the Board of Directors
The Management Committee and the Sustainability Committee reviewed the validity of the identified materiality, which was then deliberated on by the Board of Directors.