Special Feature 2021 - Integrated Report 2021
We have identified material issues (materiality) that we should prioritize to fulfill Nidec’s mission of “contributing to the Earth by producing the highest quality motors in the world” in the medium to long term and to continue to expand our corporate value, through the following process.
Steps to identify materiality (material issues) to be prioritized
Understanding and organizing material issues
Based on the Global Reporting Initiative (GRI) Standards, the Sustainability Accounting Standards Board (SASB) Standards, the items on which ESG evaluation institutions place importance, social issues, and our business environment, we have organized the items that we consider important in terms of both risks and opportunities in our business and have selected 44 candidate items for materiality (material issues) to be prioritized.
Evaluating material issues from the perspective of stakeholders
For the 44 candidate items for material issues, we conducted a questionnaire survey targeting institutional investors in Japan, Asia, Europe, and the U.S. We asked investors who hold many shares of our company and investors who have experience in ESG engagement to evaluate the importance of each candidate item.
Evaluating material issues from the perspective of our company
We conducted a similar questionnaire survey of Nidec’s directors, executive officers, and overseas management officers.
Identifying material issues after evaluating their validity at the Senior Management Committee* meeting and the Board of Directors’ meeting
Based on the results obtained in Steps 2 and 3, the management selected the material issues to be prioritized in terms of importance for both stakeholders and Nidec after repeated discussions. The extracted issues to be prioritized are classified into five materiality categories and 15 themes after the deliberation of the Board of Directors.
* Senior Management Committee: currently Management Committee
Results of questionnaire survey of investors
As a result of conducting a questionnaire survey targeting institutional investors in Japan, Asia, Europe, and the U.S. as part of the materiality identification process, we received the following opinions in addition to a quantitative evaluation for each candidate item. These opinions were referred to when identifying materiality.
Examples of survey responses from investors
- I believe that items that reflect the Creating Shared Value (CSV) perspective aimed at improving corporate value through the resolution of environmental and social issues and items that are attracting worldwide attention are the most important.
- I place great importance on enhancing corporate governance, and in particular, I consider it essential to introduce a succession plan for top management and appoint outside directors with management experience.
- I believe that the most important issues for a company like Nidec to tackle are climate change, fair remuneration for employees, support for diversity, and the creation of a workplace that respects work-life balance.
- I hope that Nidec will continue to communicate with investors after further promoting the dissemination of sustainability knowledge to its IR team.
- Nidec manufactures many products that provide solutions helpful in improving energy efficiency and reducing carbon emissions. To be a complete solution provider, Nidec needs to set a reduction target for GHG emissions from its business operations and work toward achieving the target.
We have set KPIs, which we intend to achieve by FY2025, for each theme to address the identified materiality. We incorporate the KPIs into the new medium-term strategic goal Vision 2025, and work on them to enhance the sustainability of our business.