Materiality
Approach
The NGK Group aims to use its unique ceramic technologies to contribute to sustainable energy, Environmental Conservation, and industrial development. Guided by the NGK Group Philosophy, “Enriching Human Life by Adding New Value to Society,” we have identified our Key Issues and are advancing initiatives toward the Realization of a Sustainable Society.
Materiality Identification Process
Step 1: Listing of issues
We reviewed international frameworks and guidelines, including the GRI Standards and the SDGs, as well as assessments by ESG evaluation bodies, to identify environmental, social, and governance issues. We then selected the environmental and social issues that are highly relevant to the NGK Group’s businesses. Governance issues were excluded because they are fundamental responsibilities that any organization is expected to address.
Step 2: Evaluation of the importance of issues
The NGK Group established a working group consisting of representatives from each department and assessed the selected issues using the two criteria of “impact on business” and “demands and expectations of stakeholders/impact on people and the environment.” We also took into account the views of external experts. The assessment results were reviewed by the ESG Management Committee (currently the Sustainability Management Committee), and we identified potential materiality candidates. We then analyzed the associated risks and opportunities and considered key initiatives with reference to their impact on business.
Step 3: Confirmation of validity and identification of Materiality
The working group reviewed the value that each potential materiality candidate could create for society and its alignment with the NGK Group Vision, while ensuring that no relevant issues were overlooked. Based on the results, we developed a proposed list of materiality items. The ESG Management Committee reviewed its appropriateness, and the Board of Directors approved it following deliberation.
Step 4: Setting KPIs
To manage our materiality, we established initiatives, KPIs, targets, and target completion dates for each materiality item. These were reviewed by the ESG Management Committee and approved by the Board of Directors.
