Policies and Approaches
The NGK Group defines specific Policies and Approaches of business activities based on 'NGK Group Corporate Business Principles.'
Policies and Approaches
1. Basic approach
By providing new value through our unique ceramic technologies under the NGK Group Philosophy of "Enriching Human Life by Adding New Value to Society," NGK Corporation and its Group companies (hereinafter, the ”NGK Group”) hope to contribute to the achievement of a sustainable society and earn the trust of society by meeting its expectations toward us. Setting this as the NGK Group's basic approach to sustainability, and keeping Environment, Society, and Governance (ESG) and the Sustainable Development Goals (SDGs) at the forefront in realizing the NGK Group Philosophy, we aim to contribute to the achievement of carbon neutrality and a digital society as we continuously enhance our corporate value.
2. Identification of material issues (Materiality) and promotion of initiatives
For the realization of the NGK Group Philosophy and for the sustainable advancement of society and the NGK Group, we will identify material issues faced by the NGK Group and our stakeholders as Materiality, and will address these in accordance with the NGK Group Code of Conduct as a guideline for our actions.
3. Responsibilities of the Board of Directors
The Board of Directors seeks to correctly recognize the ESG factors and other sustainability issues of the NGK Group and to connect these to the enhancement of our medium- to long-term corporate value by appropriately supervising and addressing initiatives aimed at sustainability issues. The Board of Directors also engages in appropriate disclosure of information and, based on insights gained through valuable dialogue with diverse stakeholders, strives to improve our management and to live up to the trust and expectations of society.
April 2023 Resolution of the NGK Insulators, Ltd. Board of Directors
[Company Name (Trade Name) to Change to NGK Corporation in April 2026]
Basic Approach
The NGK Group recognizes that protecting the environment, on Earth and in space, is a vital issue that all of humanity must face. Therefore, to bring our business activities into harmony with the environment, guided by the NGK Group Environmental Vision, we will bring our core principles of carbon neutrality, a circular society, and harmony with nature to life by committing to achieve Net Zero, advance a Circular Economy, and foster a Nature-Positive world. We also work to solve environmental issues with an awareness of the impact our business activities have on the environment and society, as well as the impacts the environment and society have on our business activities. Through initiatives like these, we strive to reduce the environmental impact of business activities and help protect the environment by developing products and technologies conducive to environmental conservation.
Main Focus
- 1Strive to develop, design, and manufacture products that contribute to the environment and products with low environmental impact.
- 2Work to reduce the environmental impact arising from business activities. Use tools such as design review to conduct a scientific investigation and evaluation of the impacts our business activities have on the environment.
- Promote energy conservation measures and expand the use of renewable energy for all processes and facilities, and make efforts to reduce CO2 emissions by reducing energy use and using energy efficiently.
- Promote resource efficiency (including reduction of natural resources use) and expanded use of recycled materials, and reduce the generation of waste materials (including valuable materials ).
- Manage the risks of water resources, promote water saving and reuse, and strive to reduce the amount of water withdrawal in our business activities.
- Through the appropriate use and control of chemical agents, work to reduce the risks inherent in toxic substances.
- Give precedence to environmentally friendly materials, parts, products, and facilities in procurement and purchasing, strengthening cooperative alliances with our business partners.
- Help to protect biodiversity by reducing our impact on the environment and developing/distributing eco-friendly products.
- 3Enhance environmental management systems from a global perspective while continuously reducing our environmental impact. Carry out risk management based on scenario analysis in order to continue our operations while responding to environmental changes.
- 4Work to prevent environmental pollution of the atmosphere, water, and land, and promote environmental conservation by abiding by environmental laws, regulations, and other requirements, and instituting our own voluntary standards. Also, strive to protect the environment so that our business activities will not prevent any local people from enjoying clean water resources.
- 5Provide environmental information to the public at the appropriate time and pursue dialogue with all stakeholders. Proactively develop social action programs. Also, engage in education and publicity in order to improve employees’ environmental consciousness.
NGK is dedicated to quality and committed to providing valuable products and services that are trusted by our customers and respected by society
The NGK Group hereby establishes this "NGK Group Human Rights Policy" (this "Policy") based on the "United Nations Guiding Principles on Business and Human Rights" and will promote initiatives to respect human rights to prevent violation or abuse of human rights of anyone impacted by the NGK Group's business operations.
1.Basic Approach to Human Rights
The NGK Group supports and respects the "International Bill of Human Rights" adopted by the United Nations (consisting of the Universal Declaration of Human Rights and the International Covenants on Human Rights), the "ILO Declaration on Fundamental Principles and Rights at Work" , the "OECD Guidelines for Multinational Enterprises" and other international norms.
With NGK Corporation ("NGK") signed up to the United Nations Global Compact, the NGK Group supports and respects the Ten Principles of the United Nations Global Compact.
2.Applicable Laws and Regulations
The NGK Group will comply with laws and regulations (the "Legislation") of each of the countries and regions where it operates. In case of any conflict between internationally accepted principles of human rights and the Legislation of any country or region, the NGK Group will seek ways to respect the internationally accepted principles of human rights to the utmost extent.
3.Scope of Application
This Policy applies to all directors, officers and employees of the NGK Group (the "Directors and Employees"). The NGK Group expects that its suppliers will also comply with this Policy.
4.Education and Training
The NGK Group will provide the Directors and Employees with appropriate education and training to effectively implement this Policy throughout its group-wide business operations.
5.Main Focus of the Group's Commitment to Human Rights
The NGK Group will:
- Comply with international norms on human rights and respect diversity of people;
- Respect human rights and undertake business activities without the use of forced labor or child labor; Provide young workers with fair working conditions that strictly comply with the Legislation of each country and region.
- Respect the individuality and independence of each employee and not engage in discrimination on the basis of race, citizenship, gender, age, religion, belief, existence of handicaps, sexual diversity or any other aspect; and
- Prevent the occurrence of harassment in the workplace and take prompt and appropriate action in the case where it occurs.
The NGK Group will:
- Strictly comply with the Legislation of each country and region relating to safety and sanitation, provide a safe and enjoyable work environment that is comfortable for everyone to work in for all;
- Strictly comply with the Legislation of each country and region relating to labor, safety and sanitation, we provide fair working conditions such as working hours, holidays, vacations, wages, and welfare programs.
- Respect employees’ right of freedom of association and of collective bargaining in accordance with the Legislation of each of countries and regions where it operates.
- Aim to harmonize work and life, and support a variety of working styles;
- Build up a relationship of trust through sincere debate and discussion with employees;
- Give educational opportunities to employees and provide opportunities to stretch their motivation and abilities; and
- Encourage free and open discussions and aim to create a corporate culture conducive to active communication.
6.Human Rights Due Diligence
The NGK Group will establish a system of human rights due diligence, and will implement processes to identify, prevent and mitigate adverse human rights impacts that the NGK Group's business operations may cause.
7.Remedy
If it is revealed or suspected that the NGK Group has caused adverse human rights impacts (whether directly through its business operations, or through its suppliers), the NGK Group will endeavor to deliver appropriate and effective remedy through good-faith dialogue with related parties.
8.Dialogues and Discussions
In the process of implementation of this Policy, the NGK Group will earnestly engage in dialogue and discussions with stakeholders, acquiring and drawing on independent external expertise on human rights.
9.Information Disclosure
NGK will disclose the status and results of implementation of this Policy on its website and integrated reports or through other channels.
10.Responsible Persons
NGK will designate the director in charge of the personnel division as the director responsible for the implementation of this Policy. The Board of Directors will oversee the status of implementation of this Policy by having the director regularly report the implementation status to the Board of Directors.
This Policy has been approved by NGK's Board of Directors and signed by NGK's Representative Director and President.
NGK Corporation
President
- Related information
'Maintaining the safety and health of each employee constitutes a basis for a company's operation and existence'
- 1Comply with Occupational Safety and Health Law and Company Regulations.
- 2Engage in activities in line with the OSHMS* to continuously raise the safety and health standards.
- 3Promote safety and health activities under enough education & training and good communication with employees.
- 4Reduce the risks of hazards and toxicity and prevent accidents to provide a comfortable work environment.
- 5Prevent employees' health hazards and enhance health promoting activities.
- *OSHMS:Occupational Safety and Health Management System
NGK Group defines “People who embrace challenges and teamwork" as one of Our Values of NGK Group Philosophy, and we are committed to realize Our Mission: Enriching Human Life by Adding New Value to Society. NGK Group is committed to drive the Five Transformations to realize the NGK Group Vision, and we believe that the active engagement of each personnel is crucial for accomplishing the Five Transformations. We define the core of the Group’s human capital management as hiring and developing personnel to enrich team members dedicated to the Five Transformations, and establishing an environment where each personnel can perform at full potential. Building upon this core belief, we establish the “Human Resource Development Policy" and “Workplace Development Policy" as follows.
Human Resource Development Policy
NGK Group develops personnel with the following abilities and mindset required to realize the Five Transformations.
- Cultivate advanced knowledge, skills, abilities or their combination, and proactively approach to problems
- Demonstrate teamwork and persistently lead to results
- Autonomously grow and continuously change oneself and the company
Workplace Development Policy
NGK Group develops the following workplace environment where each personnel can perform at full potential.
- Diverse and Inclusive Workplace
A workplace where everyone is acknowledged and respected, regardless of external attributes such as race, nationality, gender, and age, as well as internal attributes such as religion, beliefs, experiences, and values. - Enriched and Lively Workplace
A workplace where diverse personnel can feel rewarded, stay healthy both physically and mentally, have colleagues we respect and enjoy working with, and maintain a good work-life balance. - Open Workplace that encourages challenges
A workplace with open communication and psychological safety, that embraces courageous challenges for growth.
As our information-communication society grows ever more sophisticated, the NGK Group has come to handle much more in the way of information assets, and is aggressively pursuing the safekeeping of any and all information assets it retains. While it is essential to share these assets in order to conduct business in a smooth and efficient manner, establishing a system for information security likewise becomes a necessity. For this reason, the NGK group has set forth this basic policy regarding information security and will work to safeguard the information assets in its possession.
- In order to ensure the safety of retained information assets, which includes information retained in the course of business activities, as well as any devices, facilities, or services necessary to handle said information, we will establish an information security management system to prevent unauthorized intrusion, loss, theft, leaks, modification, damage, denial-of-service attacks, and any other threat.
- All individuals who work at any office of NGK or its group companies and who make use of information assets will be subject to ongoing information security education and training for an increased awareness of security issues. Actions in violation of this Policy may be subject to legal penalties, as well as reprimands set forth in labor regulations, contracts, and/or other binding documents.
- Should a security issue arise concerning information assets, we will promptly investigate the cause and work to keep any damage to a minimum.
- We will comply with all laws and social norms with regard to information security, as well as any such contractual requirements and duties entered into with a customer.
- NGK will strive to continuously review and revise the activities noted herein.
NGK Corporation and NGK group companies in Japan (hereinafter referred to as “NGK” or “we”) have established the following principles to process personal data we collect.
- 1We handle personal data in accordance with applicable laws and regulations on the protection of personal data.
- 2We collect personal data in a lawful and fair manner.
- 3We use personal data within the scope of the purposes specified in advance.
- 4We don’t provide personal data to third parties unless otherwise permitted by applicable laws and regulations on the protection of personal data or without consent from the data subject.
- 5We aim for thorough personal data management by implementing internal rules and organizational structures to protect against personal data breaches, leaks, or loss, and by providing education to our employees.
1. Basic Approach
With “relationship with society”, “open and fair,” and “partnership” at the core of its procurement activities, the NGK Group aims for mutual prosperity based on mutual trust with suppliers through open, fair, and equitable procurement practices that not only comply with laws but also take into consideration global environmental conservation, respect for human rights, and the working environment.
Through these series of actions and activities, we will promote sustainable procurement and provide valuable products and services to society as a whole.
2. Applicable Laws and Regulations
The NGK Group complies with the laws and regulations of the respective countries or regions in which it conducts its procurement activities.
3. Scope
This policy applies to the procurement practices of all officers and employees of the NGK Group. The NGK Group also requires its suppliers to comply with this policy and its objectives.
4. Priority Initiatives
The NGK Group will:
- Comply with necessary laws, regulations and international norms, and conduct procurement activities that meet the demands of society as a whole, including respect for human rights, environmental conservation, and coexistence with regional communities;
- Offer open entry opportunities to all suppliers, regardless of location, size, or business track record;
- Select suppliers fairly and impartially, considering aspects such as quality, technology, price, delivery time, and ESG factors;
- Build respectful and equal relationships with all suppliers, as they are important partners in creating market value together;
- Make every effort to seek and achieve procurement activities throughout the supply chain that are in line with our Group’s policies, guidelines, and norms;
- Pursue responsible raw material procurement throughout the supply chain, conducting procurement activities that take into account the impact on regional communities, including avoiding the use of conflict minerals; and
- Strive to conserve the global environment and biodiversity by introducing clean energy and reducing greenhouse gas emissions throughout the supply chain.
5. Correction and Improvement
If a violation of this policy or priority initiatives arises in our procurement activities through the NGK Group or its suppliers, or if concerns about such a violation become apparent, we will work with the relevant parties to correct and improve the situation appropriately and effectively.
The NGK Group has declared in the NGK Group Corporate Business Principles that it will strive to realize a sustainable society, respect human rights, and conduct fair and transparent business activities with integrity, and that pursuant to the NGK Group Code of Conduct it will strive for the comprehensive prevention of corruption. Corruption hinders the realization of a sustainable society and causes human rights violations, which violates the NGK Group Corporate Business Principles and the NGK Group Code of Conduct, and it cannot be tolerated.
We have established this "NGK Group Anti-corruption Policy" (this “Policy”) in order to comply with applicable laws and regulations, prohibit any direct or indirect involvement in corrupt practices, and strive to promote anti-corruption in all of our business activities, live up to our stakeholders’ trust and realize a sustainable society.
1. Compliance with Applicable Laws and Regulations
The NGK Group will comply with applicable anti-corruption laws and regulations in the countries and regions in which we conduct our business activities.
2. Prohibition of Corrupt Practices
The NGK Group will:
- Prohibit its officers and employees from conducting or engaging in corrupt practices, such as bribery, embezzlement, situations whereby there are any breaches of trust, conflicts-of-interest, insider trading, money laundering, obstructions of justice and any other abuses of their own or a third party’s authority or position for personal or organizational gain; and
- Prohibit its officers and employees from engaging in corrupt practices through any third parties, such as agents or consultants. We will implement necessary measures, such as strictly managing contracts with third parties and regularly checking transaction statuses.
3. Establishing an Anti-corruption System
The NGK Group will:
- Develop internal rules and organizational structures to raise awareness and promote this Policy;
- Assess corruption risks in the countries and regions where we conduct business, and implement risk countermeasures, focusing on high-risk business activities; and
- Establish a whistleblowing system that allows officers and employees to report any corrupt practices that they become aware of. We will maintain the confidentiality of reports, and prohibit the disadvantageous treatment of whistleblowers.
The implementation status of this Policy and related measures will be reported to NGK’ Board of Directors and reviewed as necessary.
4. Education
The NGK Group will regularly educate its officers and employees about this Policy and related actions and procedures.
5. Proper Accounting Procedures
The NGK Group will execute accurate accounting procedures in accordance with laws, regulations, and internal rules, and properly record and maintain its accounting books.
6. Records and Storage
The NGK Group will keep accurate business records and properly manage and store them.
7. Audits and Monitoring
The NGK Group will:
- Conduct internal audits of the implementation status of this Policy and promptly take corrective measures against any issues that are discovered; and
- Verify the effectiveness of internal audits and other measures and strive for continuous improvement.
8. Information Disclosure
The NGK Group will strive to disclose the status of its efforts to prevent corruption.
9. Response to Violations, etc.
The NGK Group will:
- Promptly address any actual or potential violations, make necessary corrections, and also take thorough measures to prevent any recurrences; and
- If our officers or employees violate any laws or regulations, the NGK Group Code of Conduct or our internal rules, we will take fair and strict actions in accordance with the internal rules.
10. Top Commitment
Top management will:
- Raise the awareness of this Policy within the NGK Group, allocate the necessary resources for its implementation, and maintain the system; and
- In the event of any violation of this Policy, proactively respond to the situation, including resolving the issue, investigating the causes, and working to prevent the issue from recurring.
This Policy has been signed by the President of NGK Corporation
NGK Corporation
President
The NGK Group regards compliance as an essential factor in gaining the trust of all of our stakeholders and defines it as the foundation of sustainability. In order to maintain and improve our tax compliance, we will work to maintain tax transparency and enhance awareness among our employees while also building the necessary framework to ensure compliance with laws and regulations and prevent corruption.
1.Compliance
The NGK Group ensures thorough compliance in accordance with the NGK Group Code of Conduct by complying with the tax laws of each country and region and the international agreements that apply to the NGK Group and respecting the spirit of taxation laws.
2.Tax Governance
NGK has established the NGK Group Tax Policy and will ensure compliance with the said policy. We gather and confirm information related to the tax position and tax governance system of our Group companies to help the NGK Board of Directors fulfill its responsibility of overseeing group tax risks. The day-to-day financial accounting and tax activities of the Group companies are managed by the financial managers of each Group company, with the involvement of the president of respective companies. They also report important tax matters to the head of their NGK business group and the NGK Board of Directors in an appropriate manner.
3.Risk Management
The NGK Group considers compliance to be an important aspect of risk management. We always act with integrity, minimizing our tax risks through compliance with applicable tax laws, regulations, rules, international agreements and commercial practices, and our own internal regulations. The NGK Group pays taxes in the appropriate jurisdictions in accordance with the state of our revenue-generating activities without engaging in aggressive tax saving schemes. When dealing with non-routine tax issues, we consult external experts for advice where necessary.
4.Optimization of Tax Burden
The NGK Group does not establish artificial business structures for the purpose of reducing its tax burden. We use available tax incentives to the extent that they fall within the scope of our business objectives. We work to eliminate double taxation where it occurs. Cross-border transactions among Group companies are carried out in accordance with OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations.
5.Relationship with Tax Authorities
The NGK Group acts with good faith and transparency and responds promptly to requests for information from tax authorities of each country and region. We intend to develop long-term, amicable relationships with tax authorities based on mutual trust and respect.
NGK Group recognizes uncertainties that can affect the realization of its Group Vision as risks. The Group aims to control these risks by appropriately identifying them and taking preventive measures to minimize potential losses caused by risks that materialize. The Group has established the following approaches to address risks based on their types.
We will continue to proactively create business opportunities and challenge ourselves to drive business transformation by taking appropriate risks in order to provide new values in carbon neutrality and the digital society.
We will appropriately control material risks that impede the continuity of business operations, achievement of management goals and sustainable growth by establishing countermeasures with timely capturing internal and external environmental changes including supply chain and continuously monitoring the possibility of risk materialization and changes in the degree of impact.
- We will strive to eliminate risks that hinder the assurance of the quality and safety of the products and services we provide.
- With regard to risks related to sustainability issues including human rights and climate change, we will work throughout our supply chain to meet societal expectations and contribute to realization of a sustainable society.
- With regard to risks related to compliance, we will endeavor to act in a sincere and responsible manner in accordance with international norms and thoroughly eliminate actions that are inconsistent with being a member of the international community including fraudulent behavior.
The NGK Group establishes herein the NGK Group Social Contribution Activities Policy and will actively engage in various activities to realize a sustainable society.
1.Basic Approach to Social Contribution Activities
The NGK Group is committed to sustainability management for realizing its philosophy and vision and achieving sustainable growth. We recognize that the understanding and trust of stakeholders and local communities are essential for developing a business environment. Through our social contribution activities, we work with everyone involved in our domestic and overseas operations to help create safe, secure, and vibrant communities and address social issues.
At the same time, we enable our employees to engage in social contribution activities to take part as members of society and to experience the value of social contribution activities to realize a future filled with happiness and smiles. Through these activities, we expect employees to learn and grow, and that these experiences will foster a sense of unity and belonging.
2.Areas of Activities
To realize a sustainable society, the NGK Group contributes to the growth of local communities by addressing social issues and promoting a society where everyone can take on new challenges through the following activities.
Initiatives to Nurture the Future
We support the learning and development of future generations and strive to create an environment where diverse individuals can thrive in a variety of fields, contributing to the sustainable development of our neighboring communities. Through learning opportunities, we seek to foster a society that values mutual respect for diversity and inclusion, enabling everyone to shine. Supporting people who take on challenges and make efforts in areas such as culture, the arts, and sports, we facilitate activities that bring courage, inspiration, and happiness to people.
Creating Sustainable Local Environments
Guided by the NGK Group Environmental Vision, we work in partnership with the local communities to maintain and preserve sustainable environments. We focus on advancing carbon neutrality, promoting a recycling-oriented society, and harmony with nature. Through these efforts, we also raise environmental awareness among our employees.
Ensuring Safety and Security in Local Communities
Through disaster relief efforts, local events, and a variety of community engagement activities, we strengthen our ties with people in need and the communities where we operate. We also strive to expand our network of cooperation so that we can contribute to the safety, security, development, and well-being of local communities.
3.Information Disclosure
We regularly share information about our activities so that all employees of the NGK Group can understand the purpose and significance of these activities. We also disclose information about our initiatives on our website and other communication channels to strengthen our relationships of trust with our stakeholders.