FY 2024 CSR Activity Policy and
Targets of the Nippon Soda Group

CSR Activities to Improve Corporate Value
CSR Activities to Protect Corporate Value
Stakeholder Engagement
Corporate Governance / Compliance / Risk Management

CSR Activities to
Improve Corporate Value

Agriculture

Materiality	Relevant SDGs	Our Vision 10 Years in the Future	KPI
Securing food and achieving sustainable agriculture Contribution to the global supply of food Diversification of crop protection Streamlining and improving labor efficiency in farming production	Goal 2：ZERO HUNGER End hunger, achieve food security and improved nutrition and promote sustainable agriculture.	A chemical group that addresses agricultural and food issues and is succeeding as a business.	(1)Hosting of seminars (2)Current initiatives

Healthcare

Materiality	Relevant SDGs	Our Vision 10 Years in the Future	KPI
Healthy lives to all people Support services for high-performance products and formulation technologies	Goal 3：GOOD HEALTH AND WELL-BEING Ensure healthy lives and promote well-being for all at all ages.	A chemical group that addresses health issues and is succeeding as a business.	(1)Contributions (2)Hosting of seminars

Environment

Materiality	Relevant SDGs	Our Vision 10 Years in the Future	KPI
Toward a resource recycling society Steady supply of water resources Reduction of environmental burden caused by waste	Goal 6：CLEAN WATER AND SANITATION Ensure availability and sustainable management of water and sanitation for all. Goal 11：SUSTAINABLE CITIES AND COMMUNITIES Make cities and human settlements inclusive, safe, resilient and sustainable. Goal 12：RESPONSIBLE CONSUMPTION AND PRODUCTION Ensure sustainable consumption and production patterns.	A chemical group that addresses global environmental issues and is succeeding as a business.	(1)Volume of water contributed (2)Current initiatives
Achieving sustainable plant protection Protection of precious trees such as pines and cherry blossoms from harmful insects	Goal 15：LIFE ON LAND Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.		(1)Current initiatives

ICT^※

Materiality	Relevant SDGs	Our Vision 10 Years in the Future	KPI
Applying the functionality of chemicals to IT devices Supply of high-performance materials that are friendly to the environment and people	Goal 9：INDUSTRY, INNOVATION AND INFRASTRUCTURE Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.	A chemical group that supports the development of the information and electronic technology field through materials and is succeeding as a business.	(1) Contributed shipment value

※Information and communications technology

Initiatives for the Next Generation

Materiality	Relevant SDGs	Our Vision 10 Years in the Future	KPI
Achieving a low-carbon society Contribution by supplying low-carbon products Engaging in initiatives aimed at the hydrogen economy	Goal 13：CLIMATE ACTION Take urgent action to combat climate change and its impacts. (1)Agriculture Microbial pesticides, microbial biopesticides and biostimulants (2)Healthcare Plant-derived pharmaceutical additives (3)Environment Research on hydrogen production and hydrogen storage technologies (4)ICT Secondary batteries Development of materials with low environmental impact	A chemical group that contributes to the achievement of a low-carbon society by providing low-carbon products and is succeeding as a business.	(1)Current initiatives
Forming partnerships to achieve goals that cannot be accomplished by the Nippon Soda Group alone Sharing philosophies for goals and cooperating with other companies and organizations	Goal 17：PARTNERSHIPS FOR THE GOALS Strengthen the means of implementation and revitalize the global partnership for sustainable development.	A corporate group that realizes goals by sharing its values with several companies and organizations and is succeeding as a business.	(1)Current initiatives
Research and development toward the next generation Research and development that enables the continuing development of human society and the global environment, and that leads to business	(1)Food (2)Healthcare (3)Advanced Materials	A corporate group that can successfully contribute to society through its products and can succeed as a business.	(1)Status of research and development
Developing human resources for the next generation Educational system to foster a culture of safety for the future		A chemical group that is fostering human resources who can successfully manage a business based on its CSR philosophy.	(1)Training initiatives

CSR Activities to
Protect Corporate Value

Management System^RC and
Organizational Governance^CSR

Action Policies (Concepts)	Item	Target	Target Action	KPI
In order to carry out sound and transparent corporate activities in compliance with laws and ordinances, etc., we will continuously implement the PDCA cycle of target setting, improvement and periodic reviews based on RC codes and RC ethics. We will conduct business activities in accordance with the seven social responsibility principles specified in CSR: 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. We will also conduct CSR and RC activities in our overseas operations.	(1)Activities	Proper implementation	Implement PDCA cycle to make ongoing improvements and to strengthen measures to prevent problems caused by human error.	(1)KPIs for each activity

Environmental Protection^RC・CSR

Action Policies (Concepts)	Item	Target	Target Action	KPI
We will make efforts to save energy and resources, reduce and recycle waste, reduce emissions of harmful substances and greenhouse gases, conserve water resources, and endeavor to reduce our impact on biodiversity and ecosystems with the goal of minimizing the environmental impact of our business activities.	(1)Environmental abnormalities	Zero events	Implement measures for reducing risks by evaluating environmental impact. Plan and implement measures to prevent problems caused by human error.	(1)Number of legal violations
	(2)Energy ①Energy intensity ②Energy intensity in logistics	①Annual improvement of 1% ②Annual improvement of 1%	①With an eye to meeting the reduction target, ensure that improvements are conducted per unit of production through the setting, implementation, and evaluation of themes for improvement. ②With an eye to meeting the target for reducing energy use in logistics, focus efforts to ensure the improvement of the per-unit energy use through the setting, implementation and evaluation of themes for improvement.	(1)Energy consumption (intensity) (2)Energy consumption (intensity)
	(3)Reduction of greenhouse gas emissions	Nippon Soda Group GHG Emissions More than 20% reduction by FY 2026 More than 30% reduction by FY 2031 (both compared with FY 2014) Eliminating fluorocarbon leakage problems from equipment that uses fluorocarbons	With an eye to meeting the reduction target, implement improvement measures in conjunction with energy-saving activities. Conduct periodic inspections and maintenance of equipment that uses fluorocarbons.	(1)Amount of emissions
	(4)Water resources conservation	Monitor water resources and promote efficient water use	①Maintain and improve water quality in wastewater from business sites. ②Consider reduction targets for water usage.	(1)Number of wastewater environment abnormalities (2)Amount of water used
	(5)Industrial waste ①Amount of final disposal at landfills ②Zero emissions ③Waste plastics	①Annual reduction of 3% in amount of final disposal at landfill ②Continuation of zero emissions ③Reduction of emissions and promotion of recycling	①With an eye to meeting the reduction target, focus efforts to ensure the improvement in the per unit of production waste generation through the setting, implementation, and evaluation of themes for improvement. ②Continue to achieve zero emissions at all worksites by reducing the amount of final disposal at landfills and amount transported. ③Consider measures to reduce emissions and promote recycling.	(1)Amount of final disposal at landfill (2)Zero emissions ratio (3)Current initiatives
	(6)Emissions of harmful substances into the atmosphere	Annual reduction of 1%	Plan and implement measures to reduce emissions of hazardous substances.	(1)Amount of emissions
	(7)Reduction of impact on biodiversity and ecosystems	Continue activities to reduce the impact on biodiversity and ecosystems	Contribute to the preservation of biodiversity by reducing environmental burden through environmental protection activities. Promote communication with related parties and strive to collaborate and cooperate to enhance biodiversity.	(1)Current initiative

Process Safety^RC& Disaster Prevention/BCP

Action Policies (Concepts)	Item	Target	Target Action	KPI
We will prevent major accidents at our facilities and promote safe and stable production. We will establish a business continuity plan (BCP) and drive continuous improvement.	(1)Major accidents at facilities	No accidents	Achieve zero major accidents at facilities. Reduce the risk of major accidents at facilities in line with BCP.	(1)Number of accidents
	(2)Maintenance and improvement of BCP	Maintenance and improvement of the BCP using the PDCA cycle	Review BCP periodically and address new risks and other matters.	(1)BCP improvement status

Occupational Safety and Health^RC

Action Policies (Concepts)	Item	Target	Target Action	KPI
We will promote the creation of zero-accident workplaces and work to ensure that employees can work with a healthy body and mind.	(1)Occupational accidents resulting in an absence from work or no absence	No accidents	Reduce risks through risk assessments. Increase efforts for preventing human error. Activate safety initiatives (KY, pointing and vocalizing, mutually directing attention, identifying hiyari-hatto (near miss) accidents, 5Ss, improvement activities, campaigns, etc.). Implement disaster prevention activities for young employees and less experienced employees. Strengthen hands-on training facilities and training system.	(1)Number of occupational accidents
	(2)Promotion of health and productivity management	Improvement of health literacy	Gauge current level of health literacy. Follow-up those undergoing periodic medical examinations. Conduct mental health check and follow-up. Formulate and implement various health measures and educational programs.	(1)Current initiatives

Logistics Safety^RCand Quality Assurance

Action Policies (Concepts)	Item	Target	Target Action	KPI
We will prevent logistics accidents by minimizing hazards, harm and risks of in-transit accidents associated with the transportation and distribution of our products. We will enhance customer satisfaction.	(1)Logistics-related complaints	Zero events	Provide education and guidance for shipping companies. Investigate the causes of complaints, and implement thorough recurrence prevention measures.	(1)Number of logistics-related complaints
	(2)Product-related complaints	Annual 20% decrease in number of incidents	Alleviate A and B rank risks through the Companywide introduction of a quality risk assessment system. Strengthen measures to prevent human error. Investigate the causes of complaints, and implement thorough recurrence prevention measures.	(1)Number of product-related complaints

Chemical and Product Safety^RC

Action Policies (Concepts)	Item	Target	Target Action	KPI
We will increase the confidence that customers and society have in us by taking into account possible hazards and harm from chemical substances and products with regard to safety, health and the environment, and we will comply with domestic laws and regulations, international standards, treaties and the like, as well as other regulations that are socially demanded.	(1)Compliance with chemical-related laws and ordinances	Zero violations	Reinforce control of chemical substances (domestic and overseas SDS/label system revisions in line with legal reforms, reinforce examinations and management systems for products containing chemical substances). Conduct periodic educational programs on chemical substance control.	(1)Status of management (2)Status of educational programs

Stakeholder Engagement

Together with Our Customers（Consumer Issues^CSR）

Action Policies (Concepts)	Item	Target	Target Action	KPI
We will contribute to customer satisfaction through shared recognition of issues.	(1)Consumer issues	Appropriately respond to consumer demand and requests from society	Respond appropriately to consumer demand and requests from society collected through consulting desk, sales and product promotion activities.	(1)Current initiatives

Together with Our Employees（Human Rights^CSRand Labor Practices^CSR）

Action Policies (Concepts)	Item	Target	Target Action	KPI
We will respect human rights and act in recognition of both their importance and their universality. We will act based on the understanding that socially responsible labor practices are indispensable to social justice and peace, respect for the rule of law, and a fair society. We will work to ensure that employees can thrive in their respective working lives based on appropriate labor practices.	(1) Diversification of personnel	Improve personnel diversity	Engage in recruitment activities with a focus on diversity (women, people with disabilities, senior citizens, foreign nationals, etc.). Adapt to diversity.	(1) Current initiatives
	(2)Engagement	Improve engagement	Gauge current level of engagement. Improve individual motivation, help individuals demonstrate their capabilities, and develop human resources. Maintain and improve workstyles and productivity	(1)Engagement survey results
	(3)Promotion of health and productivity management	Reduce overtime and prevent increase	Manage overtime. Manage acquisition of paid leave, etc.	(1)Overtime hours (2)Status of acquisition of paid leave
(3)Promotion of health and productivity management	Reduce overtime and prevent increase	Manage overtime. Manage acquisition of paid leave, etc.	(1) Overtime hours (2) Status of acquisition of paid leave

Together with Our Business Partners
（Fair Operating Practices）

Action Policies (Concepts)	Item	Target	Target Action	KPI
We will undertake dialogue with business partners to promote, fair, just and sound business transactions. We will promote environment- and society-friendly CSR procurement with the cooperation of business partners throughout the supply chain.	(1)Business partners	①Fair and just business transactions ②Promote environment- and society-friendly^CSR procurement	In the case of the selection of suppliers, conduct a fair comparison and evaluation based on various conditions, including quality, price, delivery terms, technical competence and stability of supply.	(1)Status of compliance with Code of Conduct (2)Current initiatives

Together with Our Shareholders and Investors

Action Policies (Concepts)	Item	Target	Target Action	KPI
We will undertake fair and timely information disclosure that is accurate and easy to understand.	(1)Shareholders and investors	Constructive dialogue Fair and timely information disclosure	Engage in dialogue with investors, analysts and shareholders.	(1)Dialogue status

Together with Our Local Communities
（Community Involvement / Development and Social Dialogue^RC）

Action Policies (Concepts)	Item	Target	Target Action	KPI
We will make efforts to improve the general public’s confidence in us by participating in various environmental protection and safety activities and proactively engaging in dialogue with stakeholders regarding the effects of chemical substances on safety, health and the environment. We will comply with legal requirements and improve transparency. We will contribute to the creation of a sustainable society by supporting the development of local communities.	(1)Local gatherings and community involvement	Increase number of times and enrich content of local gatherings and involvement	Continue to engage in dialogue with concerned local people and relevant organizations and improve content.	(1)Number of dialogue events held and contents
	(2)Legal and other requirements	Zero legal violations	Continue with measures to prevent recurrence of deviations and reinforce management of laws through PDCA cycle.	(1)Status of deviations
	(3)Creation of more opportunities for stakeholder engagement	Once a year at each worksite	Create more opportunities for stakeholder engagement. Incorporate results from stakeholder engagement activities to improve CSR and RC activities.	(1)Number of engagement events held and contents
(4)Contribution to society	Continue with social contribution activities	Participate in local cleaning activities and activities that contribute to the sustainable development of local communities.	(1) Number of activities implemented

Corporate Governance / Compliance / Risk Management

Corporate Governance

Action Policies (Concepts)	Item	Target	Target Action	KPI
We will adopt the Corporate Governance Code as the basis for our business activities with an emphasis on sound and transparent business management that complies with the law.	(1)System	Maintain and improve the corporate governance structure	We adopted the Corporate Governance Code as the basis for our business activities and conduct business management that complies with the law and which is highly sound and transparent.	(1)Governance structure

Compliance

Action Policies (Concepts)	Item	Target	Target Action	KPI
We will ensure corporate activities in compliance with laws, regulations and corporate ethics by ensuring all employees are fully informed of the Nippon Soda Group Code of Conduct.	(1)Legal compliance	Legal compliance system and ongoing education and training	Implement regular training to make sure employees are fully informed about the Nippon Soda Group Code of Conduct, conduct a survey, and operate a reporting and consultation desk that is always open.	(1)Violations of laws and regulations

Representative Director, President,
Chairman, CSR Administration Meeting

Eiji Aga

April 1, 2024

Sustainability