Promotion of CSR Activity

Framework for CSR Activities

The CSR activities of the Nippon Soda Group include all of the Responsible Care (RC) codes (activity items). All CSR activity items respect the seven principles of social responsibility described in the ISO 26000 standard (accountability, transparency, ethical behavior, respect for stakeholder interests, respect for the rule of law, respect for international norms of behavior, and respect for human rights) and Responsible Care is based on the concepts of “doing what is ethically right” and “implementing proactive measures to reduce risks” in all of our business operations, including those overseas. The seven core subjects (activity items) of social responsibility in CSR and the seven RC codes (activity items) are closely related to each other as follows.

Relationship between CSR (ISO 26000) and RC

CSR Promotion System

Chaired by the president of Nippon Soda, the Corporate Social Responsibility (CSR) Administration Meeting is a groupwide decision-making body that promotes CSR activities, including RC. The CSR Administration Meeting is attended by all Nippon Soda directors, executive officers, worksite managers, and officers of major domestic group companies. It is held twice a year to ensure continuous improvement through the PDCA cycle (see page 8 for details) by setting, evaluating, and reviewing targets at the management level.

The following group companies participate as members in the Corporate Social Responsibility Administration Meeting, subcommittees (Environment, Safety, Quality, Human Rights/Labor Practices), and the GHG Emissions Reduction WG.

• * The Nippon Soda Group expressed its endorsement of the Task Force on Climate-related Financial Disclosures (TCFD) recommendations in October 2022. Our GHG Emissions Reduction Working Group is advancing efforts based on these recommendations, including setting numerical targets, examining countermeasures, and verifying the effectiveness of the countermeasures.

PDCA Cycle

The Nippon Soda Group pursues its CSR activities in a systematic manner through continuous improvement based on the PDCA cycle. In order to carry out sound and transparent corporate activities in compliance with laws and ordinances, etc., each worksite is required to develop a CSR improvement plan (Plan), implement the developed plan (Do), make quantitative evaluations of both the plan and its implementation (Check), and implement measures based on quantitative evaluation results (Act) using the RC ethics and RC codes as guidelines. We also conduct a groupwide audit to assess the appropriateness of activities. We recommend that the PDCA cycle for CSR Activities to Protect Corporate Value be repeated each year. The CSR Promotion Subcommittee holds a meeting to review the progress of the PDCA cycle twice a year. The progress is also reviewed by management twice a year at the Corporate Social Responsibility Administration Meeting.

RC Audits

Internal Audits

We collectively refer to internal audits, such as the Quality Management System (QMS), Environmental Management System (EMS) and Occupational Health and Safety Management System (OSHMS), that are conducted at each site of Nippon Soda (plants and research centers) as the “RC audit.” To investigate and evaluate whether these audits are conducted appropriately, as well as the appropriateness of audit levels across the Company, a representative from each site and staff in charge at the Head Office convene once a year to hold an RC Audit, Verification and Review Meeting. The results of internal audits are reviewed at the Corporate Social Responsibility Administration Meeting and are used to make continuous improvements.

Regular RC Audits

Nippon Soda’s audit team conducts regular (biennial) audits of CSR practices at group companies.

External Audits/Reviews

All worksites (plants and research centers) and manufacturing group companies undergo external reviews according to ISO 14001, ISO 9001, and ISO 45001 and diagnosis of disaster prevention capability with emphasis on disaster prevention and occupational safety by an institute specializing in disaster prevention. Based on their results, ongoing improvement efforts are made. We are also subject to appropriate governmental reviews and inspections based on various laws and ordinances, and proactively engage in efforts to address potential areas for improvement.

We proactively welcome audits by customers, who are our stakeholders, and make improvements in response to their feedback. In addition, we also undergo external audits on an as-needed basis.

Special RC Audits

A special audit is conducted, as needed, in the event of a serious non-conformity or other serious problem under an appropriate audit system that can accommodate the situation.

Audits and Reviews Conducted

Audits and Reviews Carried Out at the Nippon Soda Group in FY 2025/3 (Number of times)

• 1 Includes worksite audits and internal audits.
• 2 The 211 external audits of Nisso Metallochemical include 198 inspections of the company by a waste treatment contractor.

Acquisition of International Certifications and ESG Ratings

The Nippon Soda Group is committed to continuously improving its CSR activities by acquiring ISO certifications and obtaining ESG ratings from domestically and internationally recognized third-party organizations. These international standards and external assessments enable us to verify the effectiveness of our CSR activities in an objective manner and identify areas for improvement, which in turn helps us enhance the quality of our initiatives. Furthermore, by gaining a deeper understanding of the rapidly changing needs and values of the international community and ensuring a high level of transparency in the information we disclose to meet the expectations of diverse stakeholders, we are doing what we can to further improve our external evaluations.

Status of ISO Certification Acquisition

• * Current as of March 31, 2025. Percentage of Nippon Soda and Nippon Soda Group (Nippon Soda and its consolidated subsidiaries) whose manufacturing facilities have acquired ISO certification. Nippon Soda’s Mizushima Plant returned its ISO 14001, ISO 45001, and ISO 9001 certifications to the certification organization due to the closure of its production operations.
• * ISO 14001: An international standard for environmental management systems intended to help organizations improve their environmental performance and reduce their environmental impact.
• * ISO 45001: An international standard for occupational health and safety management systems intended to help organizations manage workplace safety and health risks and protect worker health.
• * ISO 9001: An international standard for quality management systems intended to help organizations improve customer satisfaction and achieve continuous improvements in quality.

External ESG Ratings

Selected as a constituent of the Sompo Sustainability Index (five consecutive years)

Selected as a constituent of the FTSE JPX Blossom Japan Index (three consecutive years) and FTSE JPX Blossom Japan Sector Relative Index (four consecutive years)

Selected as a constituent of the MSCI Japan ESG Select Leaders Index

• * Nippon Soda Co., Ltd.’s inclusion in the MSCI Index, and the use of MSCI’s logo, trademarks, service marks, or index names in this report, does not constitute sponsorship, endorsement, or promotion of Nippon Soda Co., Ltd. by MSCI or any of its affiliates. MSCI Indexes are the exclusive property of MSCI. MSCI and the MSCI Index names and logos are the trademarks or service marks of MSCI or its affiliates.

Shinfuji Kaseiyaku Co., Ltd. acquired “Gold” rating in EcoVadis sustainability survey

Underwent an occupational accident prevention survey

We underwent an occupational accident prevention survey (diagnosis) by Sompo Risk Management Inc. (For more details, see Sompo Risk Management Inc.’s Opinion on the Occupational Health and Safety Survey on p. 98)

Diagnosis of disaster prevention capability

We underwent disaster prevention capability diagnoses by Sompo Risk Management Inc. (For more details, see Sompo Risk Management Inc.’s Opinion on Disaster Prevention Assessment Survey on p. 97)

Third-party verification of Integrated Report and ESG Data Book

In FY 2025/3, our Head Office and Takaoka Plant underwent third-party verification by the Japan Chemical Industry Association. (For more details, see the Japan Chemical Industry Association’s Third-party Verification of the Nippon Soda Group Integrated Report 2025 and ESG Data Book 2025 on p. 96)