Materiality

Materiality Initiatives

To ensure effective and steady implementation of our materiality initiatives, Nidec has set 15 action themes in the five materiality categories. And, for each theme, we have set KPIs, which we intend to achieve by FY2025. We may change the materiality issues, action themes and KPIs taking into consideration their validity according to the business environment in the future.
As a structure to check that each activity is being conducted steadily and effectively, a Sustainability Promotion Meeting is held periodically. In this meeting, held every other month in principle, its participants check the status of the execution of materiality-related business operations, and deliberate and resolve policies and important matters related to Nidec’s sustainability activities.

Materiality and theme to be addressed

KPIs for each themes to be addressed

Category	Materiality	Theme to be addressed	Sub-theme	KPI (FY2025)	Progress in FY2024
Environment	Contribute to environmental sustainability	Realize a carbon-free society	Contribute to decarbonization through products	Contributing through Automotive Products Reduce CO₂ emissions by introducing the EV traction motor system (E-Axle/BSG): Cumulative total from FY2020 to FY2025: 11,700,000 t-CO₂ Reduce CO₂ emissions by introducing electric power steering (EPS-PP/EPS) motors: Cumulative total from FY2020 to FY2025: 26,261,000 t-CO₂ Reduce CO₂ emissions by introducing electronic brake booster (EBB) motors: Cumulative total from FY2024 to FY2025: 10,029,000 t-CO₂ Contributing through the small precision motors Reduce CO₂ emissions by introducing motors for compact EVs: 35,000 t-CO₂ per year Reduce CO₂ emissions by introducing motors for e-bikes: 32,000 t-CO₂ per year	[Contributing through Automotive Products] As for the EV traction motor system (E-Axle), since the production of unprofitable models was reduced from the second half of FY2023, the number of units shipped decreased, resulting in a downward trend in CO₂ emission reductions through to FY2024. [Contributing through the small precision motors] The amount of CO₂ emissions reduced by the supply of drive motors for e-bikes in FY2024 remained at 6,500 t-CO₂, mainly due to the fact that the speed of market growth did not reach the level forecasted when the KPI was established.
		Realize a carbon-free society	Reduce GHGs emissions attributable to business activities	By FY2025, increase the renewable energy introduction ratio to 40% on a consolidated basis Annually disclose a climate change scenario in line with the Task Force on Climate Related Financial Disclosures (TCFD) recommendations	With the aim of increasing the renewable energy introduction ratio, we promoted initiatives with a focus on both energy-saving and renewable energy introduction. In FY2024, the renewable energy introduction ratio increased to 13.7%, thanks to initiatives such as the in-house development of electricity consumption visualization system at the Nidec Center for Production Technology R&D and the introduction of the Group’s first off-site PPA. In addition, we initiated an internal carbon pricing system. Regarding the TCFD Recommendations, based on the results of a business impact assessment, we further strengthened our decarbonization efforts (considering the introduction of an internal system to strengthen and promote energy-saving and renewable energy introduction) and implemented measures to reduce water risks.
		Manage waste and hazardous waste	ー	Reduce the amount of waste generated intensity per unit of consolidated net sales by 3% compared to the FY2022	We conducted waste reduction activities with a focus on iron and aluminum. In FY2024, the amount of waste generated decreased by 12.7% compared to FY2022.
		Handle water risks	ー	Fully complete water risk assessments at all production sites	We conducted water risk assessments that were more in line with the actual situation of each site through detailed analysis of local information and water usage at the target site and interviews. We completed water risk assessments by confirming the results of detailed analyses of the sites identified as having high water risks and that measures to address water risks were being taken at these sites.
Products	Provide products and services adapted to social change	Pursue product safety and quality	ー	Create a database for chemical substances contained in products to make it easier for the development department to determine the choice of materials, and shift to an environment-oriented development system Implement quality management reforms in the automotive-related business, and establish an overall quality control organization and system by FY2025 Conduct assessment of all newly developed products and all products during the manufacturing process to reduce product safety risks	The Small Platform Motor & Solutions Business Unit adopted low-lead materials for 11 new models, achieving a reduction of 315 kg of lead compared to conventional materials. The Automotive Motor & Electronic Control Business Unit continued to conduct audits of project deliverables. It also analyzed trouble cases and compiled root causes and countermeasures into a database to use for design quality checks. With the appointment of a CQO, the Global Quality Management Division established a structure in which the General Manager of the Division oversees the heads of the quality assurance departments of all NIDEC Group companies.
		Respond to changes in the technological environment and the industrial structure	ー	Continuously launch new products that lead the Five Big Waves to resolve social issues Continue to pursue the high efficiency and miniaturization of motors that contribute to energy and resource saving	Based on the "Five Business Pillars," new business areas of focus for the medium to long term, we vigorously promoted product development and technological innovations that will contribute to solving social issues, with a focus on CO₂ reduction. We also strategically pursued environmental contribution and value creation by promoting LCA-based CO₂ emissions calculation and indicator setting.
		Protect and utilize intellectual properties	ー	Transform our IP portfolio to one that responds to social and business changes, including decarbonization and power and manpower saving, and use the new IP portfolio	We worked to build and manage IP portfolios that match each stage of the product lifecycle and to utilize these rights. We also formulated an intellectual property action plan together with the business heads of each of the Five Business Pillars, and conducted regular evaluation of activities.
Human Resources	Retain and develop diverse talent	Maintain and foster globally competitive human resources	ー	Promote the discovery and development of global leaders ーStrengthen the development of management personnel, including global human resources Establish and make functional a global talent management system ーEstablish regional HR management ーClarify positions subject to head office management ーEstablish a global mobility policy	We established the Global HR Strategy Committee. We promoted the discovery of talented individuals, regardless of nationality or geographic location, and built a globally common system for formulating succession plans. In addition, we incorporated the Human Resources Development Committee into the management meeting structure to ensure that management executives discuss strategic human resources development and personnel allocation.
		Promote diversity	ー	Achieve the targets below related to women’s empowerment (non-consolidated) ーRatio of female directors: 20% or higher ーAll managerial positions held by women: 9% or higher ーRatio of female candidates for managerial positions: 15% or higher * Executive officer or higher position, including outside directors * Referring to female employees in positions immediately prior to managerial positions Recruit non-Japanese directors	We conducted diversity dialogue sessions between outside directors and employees, cross-organizational/regional global interactive workshops, and an overseas site-originated mentoring program for female employees. We also conducted an organizational performance survey, and held workplace workshops to encourage members of each workplace to hold discussions based on the survey results.
		Promote occupational safety and health, and healthoriented business management	ー	Ensure a safe and comfortable work environment Reduce the number of serious accidents (those resulting in death or permanent disability) to zero Improve the Lost-time injury frequency rate Realizing health management as a unified NIDEC Group Receive certification as a White 500 Company (in the large enterprise category) under the 2025 Certified Health & Productivity Management Outstanding Organizations Recognition Program	Regarding occupational safety and health, we conducted comprehensive inspections on "internal equipment safety mechanisms (848 cases) and forklift safety measures (2,703 cases)." As part of efforts to promote health and productivity management, we held health seminars by industrial physicians to improve employees' health literacy. For employees with high health risks, we provided individual health guidance and encouraged them to receive a thorough medical examination, in order to improve and maintain the health of all employees.
		Respect human rights and follow proper labor practices	ー	Follow proper labor practices Manage working hours of employees, including those in managerial positions, from the perspective of occupational safety Reduce average overtime hours by improving productivity Respect human rights Clarify human rights policies for workers including those in the supply chain, and spread them among employees	We micromanaged the working hours of employees and properly reported them to and cooperated with relevant parties. Regarding the human rights due diligence process, we placed focus on human rights impact assessments, and the cessation, prevention, and mitigation of negative impacts. We clarified our human rights impact assessment plans and decided to conduct risk identification and assessments with a particular focus on the Southeast Asian region. We also began collecting information through interviews with the sites in that region and other methods to improve the accuracy of risk assessments.
Supply Chain	Build an internationally competitive supply chain to solve social issues	Sustainable procurement considering environmental and social aspects	ー	Conduct human rights due diligence on major suppliers: Implementation rate for high-risk suppliers by 2025: 100%	We updated the “Nidec Group Supply Chain CSR Promotion Guidebook.” In addition, we visited suppliers with high human rights risks identified in the previous fiscal year's NIDEC Supplier CSR Self-Assessment, and conducted on-site interviews and began discussions to address issues.
Corporate Governance	Create a solid governance system	Build a fair, transparent and highly effective governance system	Board of Directors	Continue to have the effectiveness of the Board of Directors evaluated by a third party Always maintain the ratio of outside directors in the Board of Directors at 50% or more, and the ratio of female directors at 20% or more	To ensure the effectiveness of the Board of Directors, we conducted an annual questionnaire survey of all Board members, including outside directors, and a third-party evaluation (by an external law firm). The Board of Directors’ performance of its supervisory function was highly evaluated again in FY2024.
			Nominating Committee / Remuneration Committee	Increase transparency and fairness in the retirement and dismissal process of directors Improve the effectiveness of the Remuneration Committee and ensure the objectivity and transparency of remuneration decisions for directors	The Nomination Committee, an advisory body to the Board of Directors, began deliberations for the selection of candidates for the next president. Regarding executive remuneration, a proposal was submitted to the Board of Directors to establish a system that links performance-linked executive remuneration to ESG performance.
			Management and enforcement of internal control	Based on the assumption of 4 trillion yen for sales volume, enhance audit resources in both quality and quantity	We promoted efforts to improve and streamline internal audit operations. We strengthened the on-site self-audit system at all Group sites and the monitoring of consolidated financial figures using DX technology, with the aim of preventing errors in financial reporting, identifying risk areas, and deepening audit procedures.
		Follow thorough compliance with laws and regulations	ー	Expand the legal affairs and compliance system to all Group companies starting from Nidec Corporation and the regional management companies (China, the U.S. and Europe) Identify serious non-compliance risks and take priority measures Provide compliance education to all employees of NIDEC Corporation once a year	We strengthened face-to-face compliance seminars. Instructors visited multiple sites, including Group companies, to hold two-way discussions with employees in order to prevent compliance violations.
		Build a risk management system	ー	All risks disclosed on the securities reports are evaluated by the department in charge, and the risks to be addressed in priority are identified Reduce the impact of the risks to be addressed in priority on our business Manage the progress of reducing such impact and the residual risks	We reviewed and re-identified items subject to risk assessment and worked to improve the efficiency of risk assessment activities. The re-identified risk items were evaluated to determine priority risks requiring immediate action.
		Promote information security measures	ー	Reduce the number of serious information security incidents to zero	Following the cyber-attack incident, we conducted an investigation to understand the details of the incident and identify causes, and submitted a report/notification to the competent authority and contacted all relevant parties. We also instructed all sites in the Group to conduct emergency security inspections and make necessary corrections in order to prevent recurrence of damage.