日本電気硝子（5214） – Integrated Report 2021（2/2）

Corporate GovernanceWe aim to reach the targets set forth in our Medium-term Business Plan, EGP2026, by enhancing our competitiveness with a motivated Board of Directors and strengthened supervisory functions across management.Our Corporate Governance PolicyWe believe that to increase corporate value and achieve sustainable growth, it is essential to continue to ensure managerial transparency and strengthen supervisory functions regarding the execution of business affairs. This is our basic policy on corporate governance and we will strive to improve our organization and business systems in accordance with this policy.Corporate Governance StructureBoard of DirectorsThe Board of Directors makes decisions on important management affairs of our Group and supervises the execution of business affairs. 2022), which is available on our website.(https://www.neg.co.jp/uploads/sites/2/202203_103_notice_en-3.pdf)As of March 30, 2022, the Board of Directors consists of ten members (including two representative directors, four inside Board of Corporate AuditorsWe adopt a corporate auditor system. As of March 30, 2022, the directors, and four outside directors). The Board of Directors is Board of Corporate Auditors consists of four Corporate Auditors, presided over by the Chairman of the Board. To achieve clarity of two of whom are outside Corporate Auditors. Corporate Auditors management responsibility and develop a flexible management conduct audits of the Directors’ execution of their duties through system capable of responding to changes in the business assessing business affairs and corporate assets and setting environment, the term of Directors is set at one year. Regular Board important audit issues according to auditing policies, plans, and of Directors meetings are held monthly, and extraordinary Board of assignment of duties established by the Board of Corporate Directors meetings are held when necessary. In addition, at the Auditors. They also participate in Board of Directors meetings. budget meeting held once a year, the Board of Directors monitors Meetings of the Board of Corporate Auditors are held monthly in management by hearing explanations directly from the respective principle, and Corporate Auditors share information and exchange executive officers about the business outcomes of the current fiscal opinions at these meetings. Corporate Auditors endeavor to improve year and the budget of the next fiscal year. We have disclosed the the effectiveness of their audits by deepening their understanding reasons for the appointment of each director in the Notice of the about the Company’s business operations. For this purpose, the 103rd Ordinary General Meeting of Shareholders (held on March 30, Corporate Auditors take various measures, such as attending the Diagram of Corporate Governance System (as of March 30, 2022)Election and removal Election and removalElection and removalGeneral Meeting of ShareholdersIndependent AuditorCoordinationBoard of Corporate Auditors:2 Inside Auditors, 2 Outside AuditorsAuditAuditBoard of Directors:6 Inside Directors (2 Representative Directors, 4 Directors)4 Outside Directors• Management monitoring• Key decision-makingConsultationReportAppointment and dismissal of Representative DirectorsCoordinationCoordination(Representative Directors) Chairman of the BoardPresidentCoordinationManagementCommitteeElection and removalof Executive OfficersCompliance CommitteeInformation Management CommitteeTrade Control CommitteeStaff DepartmentsInternal Control Divisions18 Executive Officers (4 of whom are Directors)AuditBusiness DepartmentsCoordinationCoordinationNomination and Remuneration Advisory Committee:Chairman of the Board President4 Outside Directorsiii nosvDgnitiduA)srebmem emit-lluf 8(gnirotinom tnemeganaMseitud fonoitucexE36Nippon Electric GlassThe Foundation of Value Creationannual budget meeting and periodically questioning Directors and Executive Officers about their duties and handling of business affairs.Management CommitteeThe Management Committee deliberates on our Company’s Nomination and Remuneration Advisory CommitteeAs part of our efforts to strengthen our corporate governance, the regarding the decisions made at the Board of Directors meetings. Management Committee meetings are held twice a Company established the Nomination and Remuneration Advisory month and when deemed necessary. As of March 30, 2022, the Committee to ensure transparency and objectivity in the Management Committee comprises six inside directors (two of appointment and dismissal of representative directors and in the whom are representative directors) and five senior vice important managerial affairs and draws up detailed action plans process of determining director remuneration. The Committee presidents.deliberates on the appropriateness of matters related to the appointment and dismissal of representative directors; remuneration policies and systems for directors; the amount of remuneration Executive OfficersWe adopt an executive officer system to promote faster decision determined for directors; and reports its conclusions to the Board of making, ensure managerial transparency, and enhance the Directors.execution of business affairs. As of March 30, 2022, there are The Committee comprises two representative directors and eighteen Executive Officers (four of whom are Directors). The four outside directors. Its membership is shown below.President is responsible for execution of duties and the other Executive Officers execute the duties assigned to them by the President. Each Executive Officer serves for a term of one year.ChairShuichi Mori (Outside Director)MembersMasayuki Arioka (Chairman of the Board)Motoharu Matsumoto (President)Reiko Urade (Outside Director)Hiroyuki Ito (Outside Director)Yoshio Ito (Outside Director)Outside Directors and Corporate AuditorsAs of March 30, 2022, there are four outside Directors and two and tax accountant and one attorney at law, who are both outside Corporate Auditors within the Company. Outside Directors independent from the Company and are highly experienced in their make up 40% of all Directors.respective fields. They proactively perform their auditing duties and In order to strengthen the management supervisory capabilities reinforce supervisory functions.of the Board of Directors and other corporate administrative bodies When hiring outside Directors and Corporate Auditors, we base by ensuring that they receive informed and objective advice, our our selection on whether candidates satisfy requirements set for outside director appointments include: two corporate management independent directors/corporate auditors in accordance with the experts with many years of first-hand knowledge and experience in Tokyo Stock Exchange’s rules and regulations. At the same time, we the world of corporate management; a science expert who is also take into account the importance of avoiding any risks or specialized and highly experienced in the field of agricultural conflicts of interest with our general shareholders. We have sciences; and an economist with expertise and a robust background registered all our outside executives as independent directors/in corporate governance and organizational management.corporate auditors with the Tokyo Stock Exchange.Outside Corporate Auditors consist of one certified accountant Analysis and Evaluation of the Effectiveness of the Board of DirectorsAll of our Directors respond to an annual questionnaire to perspective.investigate the effectiveness of the Board of Directors. The In addition, with regard to the question of whether the questionnaire sent out in fiscal 2021 focused on (1) the Board of internal directors were aware of the difference between their role Directors in general, (2) the running of Board of Directors in executing their own duties and their role as a director and meetings, and (3) outside directors.could express an opinion in discussions outside of their With regard to the question of whether the Board of immediate purview, and could contribute to improving the quality Directors deliberated sufficiently in their meetings on corporate of deliberations and decision-making by the Board of Directors, strategy and other matters related to the overall direction of the some voiced the opinion that while discussions were probably company, some voiced the opinion that corporate strategy was being held in the Management Committee, they wanted internal explained in regard to each business separately, but not sufficiently in regard to the overall direction of the company. directors to take a more proactive stance in discussing matters in Board of Directors meetings.Another opinion was expressed that while all matters that We have determined that the Board of Directors is viable required deliberation had been put on the agenda, because the and that its effective functioning has been ensured. However, we large number of matters to discuss was from the most recent will strive to enhance deliberations at Board of Directors and short-term issues, a little more time was needed for the meetings by making improvements based on evaluation results discussion of strategic issues from a medium- and long-term and will continue to evaluate its effectiveness.37Integrated Report 2021AboutNippon Electric GlassValue CreationStoryValue CreationStrategiesValue Creationin PracticeThe Foundation ofValue CreationFinancial &Corporate InformationSkill Matrix of DirectorsFor the corporation to be able to respond flexibly to a changing climate and business conditions, and to improve corporate value over the medium and long term, we consider it necessary for directors to have specialized skills in a range of areas related to management.NamePosition in the CompanyOutside IndependentGenderNomination and Remuneration Advisory Committee ( ◎ indicates chairperson)Major knowledge, experience and capabilitiesCorporate managementFinance and LegalTechnologySales and MarketingMasayuki AriokaChairman of the Board (Representative)Motoharu MatsumotoPresident (Representative)Hirokazu TakeuchiDirectorHiroki YamazakiDirectorTomonori KanoDirectorMamoru MoriiDirectorShuichi MoriDirectorHiroyuki ItoDirectorYoshio ItoDirectorMaleMaleMaleMaleMaleMaleMaleMaleMale●●●●Reiko UradeDirectorFemaleNote: The table above does not indicate all of the expertise possessed by each director.●●◉●●●●●●●●●●●●●●●●●●●●●●●●●●Policy on Deciding Directors’ and Corporate Auditors’ RemunerationOur executive compensation for directors (excluding outside Nomination and Remuneration Advisory Committee, which is directors) comprises a monthly retainer, bonuses, and grants of chaired by an outside director and the majority of whose members restricted shares; for outside directors and corporate auditors, are outside directors. Unless an equal number of Committee remuneration is limited to a monthly retainer.members differ in opinion, the decisions of the Committee are The total monthly remuneration for directors is within the deemed to have been adopted by the Board of Directors. Grants of scope determined by the General Meeting of Shareholders, and the restricted shares are determined by the Board of Directors after total amount of the bonus payment is determined at the General consideration of individual duties and responsibilities as well as the Meeting of Shareholders after deliberation by the Nomination and share price after deliberation by the Nomination and Remuneration Remuneration Advisory Committee subject to the approval of the Advisory Committee and are within the scope of the total amount Board of Directors. The amounts of the monthly retainer and bonus determined by the General Meeting of Shareholders.for each individual director are commensurate with those of other The ratio of the monthly retainer, which is a fixed amount of companies and are aligned with our business performance (in the remuneration, to the bonus and grants of restricted shares, which case of internal directors only), the economic environment, and are variable amounts of remuneration, is generally 6:4 objective market research data on remuneration provided by (fixed:variable) on a periodic payment basis. outside specialized agencies. The duties, responsibilities, and Remuneration for corporate auditors is determined after achievements of individual directors are also taken into account. consultation with the auditors within the scope of the total amount The decision is made after comprehensive consideration of the determined by the General Meeting of Shareholders after reference above and is commensurate with what is offered by other to what is offered by other companies as determined by surveys companies. The specifics are deliberated on and decided by the conducted by external specialized agencies.Internal ControlOur internal control system is based on Japan’s Companies Act reporting-related internal controls is assessed by the internal and utilizes basic policies decided upon by the Board of Directors control division (Auditing Division), which is under the direct control in order to build a system that ensures proper business operations. of the president.In addition, we have in place an internal control reporting system, In the Internal Control Report released in March 2022, our which is based on the Financial Instruments and Exchange Act and financial reporting-related internal controls for fiscal 2021 were which facilitates the development and operation of a system for assessed as “effective.” A report by an outside auditing company ensuring proper financial reporting. The condition of financial also assessed the controls as being appropriate in all key aspects.38Nippon Electric GlassThe Foundation of Value CreationRoundtable Discussion of the Outside DirectorsWe look forward to the challenge of further nurturing the shoots of new business while implementing initiatives aimed at maintaining the steady growth ofthe Company’s existing businesses.Hiroyuki ItoShuichi MoriReiko UradeOutside DirectorOutside DirectorOutside DirectorWhat is your opinion of the current governance system and its effectiveness?Mori: My candid impression of the company’s situation over the past six years is that Nippon Electric Glass (NEG) has firmly effort. In that regard, I believe that NEG’s business continues to operate thanks to its good faith governance that functions in a diligent manner.Ito: I believe there are two aspects to governance: The first is to act as a check on management, specifically as a restraint against fraud and intemperate actions; the other is to contribute to better established its governance system, which includes the appointment management, or to help sustain proper management. I’ve been of outside directors. The ultimate mission of outside directors is to watching the movements in the Company for the past two years, rein in a runaway top management, but I think the ultimate and I certainly wouldn’t drop my guard, but I’m hardly worried guarantee of governance is the ethics of those in upper about the former. Regarding the latter, on the other hand, management. The management team of NEG comprises of the companies have the responsibility to contribute to society through chairman, the president, and others who place great value on their business and to pursue sufficient profitability to support this honesty and ethics, which I believe has contributed to NEG’s contribution. I believe that maintaining a balance between these autonomous and sound corporate governance.Urade: When I consider governance, I think it is important that, in addition to establishing a system, that one properly implement it as two is what constitutes appropriate management, which leads to disciplined and vigorous management. Governance has an important role to play in helping to support a balance between the two. In that regard, NEG also has a clear corporate vision of part of day-to-day management. Since NEG is a manufacturing becoming the world’s leading manufacturer of special glass. As an company with an actual glass manufacturing plant, I think that the outside director, I intend to support everyone to the best of my Company would not continue if not for steady and cumulative ability in order to help them realize this vision.39Integrated Report 2021AboutNippon Electric GlassValue CreationStoryValue CreationStrategiesValue Creationin PracticeThe Foundation ofValue CreationFinancial &Corporate Informationregarding business and technological development.Ito: I’ve been serving in this position for a relatively short period, so it is sometimes difficult to understand the technical content. I also appreciate the willingness of the chairman and the president to answer my questions with carefully thought-out explanations. In addition to receiving clear answers to our questions, I feel that we outside officers are benefiting from considerations that make it easier for outside officers to participate in discussions. These include explanations and management backgrounders related to technology that are presented in an easy-to-understand manner.Mori: I am the longest-serving outside director, but I am still not intimately familiar with the glass industry, and to be honest, discussing the direction of the Company and its future strategy can be challenging. However, since outside directors have a mission to supervise compliance with laws and regulations and the legitimacy of decision-making procedures, I intend to continue to fulfill my responsibilities in that regard.Urade: There are certain things that left an impression on me with respect to the Board of Directors meeting. At one time NEG was How well does the Company support the activities of outside directors?Mori: Regarding the agenda of the Board of Directors meeting, we have asked the board to send us relevant materials in engaged in difficult discussions about what it would do to continue operating businesses outside Japan that were not advance, and we also receive explanations from the secretariat. In experiencing an earnings recovery. The president said, “The addition, the minutes and materials of the Management Committee, in which internal management deliberates on important matters, are forwarded to us prior to the Board of Directors meeting. So, we are able to attend the Board of situation is difficult at the moment, but we have important locations that have a positive future outlook that should not be parted with — I will not make an easy decision.” This is a clear message that sustainable growth cannot be achieved simply by Directors meeting with a full understanding of the discussions that pursuing short-term profits and represents upper management’s took place at the Management Committee.Urade: The secretariat provides detailed explanations about these matters, and each time we submit a question we receive a detailed and thoroughly researched reply.Ito: On that point, I feel that management information is accessible. In particular, I find it a significant advantage that the president provides a summary of the economic circumstances and social situation as well as the business issues facing the stance to ensure NEG remains a leading company. When I heard this, I suddenly had a clearer understanding of the situation.Mori: I have the strong impression that NEG has grown by doing everything with due diligence and by working with steadfast resolve. In the past, NEG predicted the end of glass production for cathode ray tubes and undertook a bold shift to the liquid crystal display glass business. More recently, it confidently executed a bold strategy: it took the plunge and acquired a huge glass fiber business in Europe and the North America in an effort Management Committee, which I can confirm. Because I can gain to expand its business portfolio. This type of major investment a very good understanding of the thoughts of top management represents the one of NEG’s strong points.and the management situation, I have a sense of security regarding the operation of the Company.What is the atmosphere at the Board of Directors meetings?Mori: Some say that the Board of Directors are convening for a longer period of time now than they did before I was appointed, but in recent years, discussions have become more active, as it was originally a place to seriously discuss each agenda item. However, since internal directors engage in discussions in advance at the Management Committee and other meetings, there is a tendency for outside directors to comment more frequently at the Board of Directors meetings. To that extent, it is possible for us to point out without hesitation problems that are difficult for internal directors to put their finger on as well as issues 40Nippon Electric GlassThe Foundation of Value CreationWhat is your opinion of the new Medium-term Business Plan?Mori: The plan itself was well formulated, and I think it’s firmly grounded. The key is to enhance the business portfolio with an eye to the future. The Company is well supported by the two pillars of display glass and glass fiber, but the real challenge is how to develop a third pillar. Research and development should be further strengthened. While I have high hopes for the commercialization of all-solid-state batteries, it is not limited to this. It must also nurture the development of more innovative new businesses. The key to doing so is the effort to strengthen NEG’s human resources foundation. NEG is a company that has done well so far with a small number of exceptionally talented individuals, so in a sense it is quite efficient. However, I think it will be necessary to allow for show leadership on the issue. I hear that there are few job some waste to accrue through the adoption of a trial-and-error applications submitted by women, and consequently there are approach to various initiatives. Expansion outside Japan is also limited numbers of women willing to take on managerial positions. progressing. I think that investing in people, including the handing But I believe there exist various ways to review recruitment down of technology, will be a critical aspect of this Medium-term methods and appoint female managers at an early stage in their Business Plan.careers.Ito: From the outset, NEG has always been a company with a good balance of offense and defense, but this Medium-term Ito: That’s right. I think promoting the active participation of women as a breakthrough in personnel system reforms could be the Business Plan lays out an approach intended to strengthen the starting point for kickstarting new growth.company’s offensive stance. Along with the intention to expand existing businesses, the need to develop new fields is a conscious part of the plan. The challenge the Company faces is how to attract Mori: In terms of the human resources foundation, acquiring management personnel for the future is also a major challenge. The and develop its human resources. In the future, I think it will be Nomination and Remuneration Advisory Committee is promoting necessary to develop a system for strengthening their personnel discussions on this issue. Last year, we clarified our requirements foundation.with regard to management personnel; in the future, we will prepare ourselves well for upcoming changes at the top.Mori: In my experience, strengthening of the human resources foundation is not something that can be achieved overnight. While respecting the desires of younger members, it is also important to maintain a climate in which they are free to take on challenges. Moreover, to that end I think it is important to nurture the green shoots of technologies and businesses that have emerged by having those in supervisory positions provide their expert advice.Ito: It is a system that develops the ideas submitted by young members and utilizes them, which leads to the emergence of new businesses.Please give us your views on the Company’s medium- and long-term growth prospects.Mori: NEG has strengths in its ability to develop various new products and its technical capabilities to precisely meet the various needs of customers, based on the universal material of glass. On the other hand, the application and marketing capabilities of newly developed products and patents require further enhancement. We believe that the strengths of technological development capabilities Mori: In my experience, developing innovations requires, in a sense, people who tend to be disruptive outliers. Those who take will be made known to the industry more widely and collaboration will lead to new development through cross-industry exchanges on new challenges are not always well behaved, so it takes and information dissemination at exhibitions.patience to keep them on. In that respect, it is good that the employees of NEG are diligent, but overall, they are somewhat reserved.Urade: When it comes to strengthening our human resources foundation, I would like the Company to further accelerate its diversity initiatives. The concept of diversity is broad, but in Japan, Urade: Having its headquarters in Shiga Prefecture has shaped the character of NEG. Even though the fact that such a great company is located in Shiga, I feel it is a loss if this is not well publicized.Ito: NEG has entered a new phase that includes support for its new Medium-term Business Plan and its efforts to address carbon promoting the active participation of women has become a major neutrality. I would like the public to learn more about these facts issue. I urge the Company to put more effort into hiring female and initiatives, so it may be time to consider new strategies related employees, training them, and appointing them to managerial to corporate identity. I hold high expectations for new challenges in positions. In order to do so, it is essential the system be expanded, everything the company envisions for the future.that awareness be raised internally, and that top management 41Integrated Report 2021AboutNippon Electric GlassValue CreationStoryValue CreationStrategiesValue Creationin PracticeThe Foundation ofValue CreationFinancial &Corporate InformationApr. 1982Apr. 2010Jun. 2013Jan. 2017Joined Nippon Electric GlassVice President andGroup General Manager of Electronic Products GroupDirector (incumbent) and Senior Vice PresidentExecutive Vice President (incumbent)Apr. 1984Oct. 2006Apr. 2011Jan. 2016Mar. 2016Joined Nippon Electric GlassGeneral Manager of Technical DivisionVice PresidentGroup General Manager of Corporate Technology GroupDirector (incumbent) and Senior Vice President (incumbent)Apr. 1982Oct. 2010Jan. 2015Mar. 2015Joined Nippon Electric GlassGeneral Manager of Development DivisionSpecial Assistant to PresidentFull-time Corporate Auditor (incumbent)Apr. 1986Mar. 2015Mar. 2019Joined Nippon Electric GlassGeneral Manager of Administrative DivisionFull-time Corporate Auditor (incumbent)Chairman of the Board(Representative Director)MasayukiAriokaDirector andExecutive Vice PresidentHirokazuTakeuchi(Research & Development,Process Development &Engineering, ElectronicProducts Business)Director andSenior Vice PresidentTomonori Kano(Display Glass Business)[Thin Film Business]Outside DirectorShuichiMori(Independent Director)Directors, Corporate Auditors, Executive Officers (As of March 30, 2022)DirectorsApr. 1978Mar. 1997Jun. 1999Jun. 2002Jun. 2004Apr. 2008Jun. 2009Mar. 2015Joined Nippon Electric GlassGeneral Manager of Glass Fiber Division, ProductionDirector (incumbent)Vice PresidentSenior Vice PresidentExecutive Vice PresidentPresidentChairman of the Board (incumbent)Apr. 1982Jun. 2003Feb. 2005Apr. 2007Jun. 2011Apr. 2013Mar. 2015Joined Nippon Electric GlassCEO of Techneglas Inc.General Manager of Accounting DivisionVice PresidentDirector (incumbent) and Senior Vice PresidentExecutive Vice PresidentPresident (incumbent)Corporate AuditorsApr. 2009Mar. 2020Apr. 2020Professor, Faculty of Economics, Shiga UniversityOutside Director of Nippon Electric Glass (incumbent)Emeritus Professor, Shiga University (incumbent) and Professor, Faculty of Business Administration, Osaka University of Economics (incumbent)Apr. 1973Jun. 2014Apr. 2017Jun. 2017Jun. 2019Jun. 2020Jun. 2021Joined Matsushita Electric Industrial Co., Ltd. (currently Panasonic Corporation)Senior Managing Director (Representative Director) of Panasonic CorporationVice President (Representative Director) of Panasonic CorporationExecutive Vice President (Representative Director) of Panasonic CorporationLeft Panasonic CorporationOutside Director of Kameda Seika Co., Ltd. (incumbent)President of the Japan-China Economic Relations and Trade Centre (incumbent)Mar. 2022Outside Director of Nippon Electric Glass (incumbent)President(Representative Director)MotoharuMatsumoto[Auditing]Director andSenior Vice PresidentHirokiYamazaki[Fundamental Technology,Intellectual Property, Environment, Quality Auditing, Product Safety Management, Cooperation in Research & Technology]Director andSenior Vice PresidentMamoru Morii(Administration, Human Resources, Purchasing, Information Systems and Sales Management)[Accounting, Corporate Strategy, Marketing, Tokyo Branch Office and Security Trade Control]Outside DirectorReiko Urade(Independent Director)Outside DirectorHiroyukiIto(Independent Director)Full-timeMasahikoOhjiOutsideTsukasaTakahashiOutside DirectorYoshio Ito(Independent Director)Full-timeYoshihisaHayashiOutside Yukihiro Yagura(Independent Corporate Auditor)(Independent Corporate Auditor)Apr. 1989Registered as attorney at law and joined Katsube Law Office (currently Katsube Joined Tohmatsu Audit Corporation (currently Deloitte Touche Tohmatsu LLC)Takahashi Law Office)Jul. 2012May 2013Mar. 2019Jun. 2020Representative of Katsube Takahashi Law Office (incumbent)Outside Corporate Auditor of Aeon Delight Co., Ltd. (incumbent)Outside Corporate Auditor of Nippon Electric Glass (incumbent)Outside Corporate Auditor of Nippon Shokubai Co., Ltd. (incumbent)Oct. 1992Apr. 1996Jun. 2020Jul. 2020Aug. 2020Mar. 2022Registered as certified public accountantLeft Deloitte Touche Tohmatsu LLCEstablished Yagura-jicpa (incumbent)Registered as certified public tax accountantOutside Corporate Auditor of Nippon Electric Glass (incumbent)Executive OfficersSenior Vice PresidentsVice PresidentsAkira KishimotoNorio NakamuraHiroaki NomuraTakuo HoriuchiHitoshi Kanaya[Consumer Glass Products [Glass Fiber Business]Business][Glass Fiber Business (Sales),Electric Glass Fiber America, LLC]Sales Management][Display Glass Business (Sales), [Process Development & Engineering]Haruki MatsumiyaMasaaki KadomiToshiyuki NakajimaHidetaka OdaYoshiyuki Tamamura[Process Development & [Research & Development][Administration, Human Resources][Display Glass Business (Production)][Purchasing, Information Systems]Ken HamajimaTakuji OkaMasanori Wada[Glass Fiber Business (Production)][Electronic Products Business (Production)][Consumer Glass Products Business (Production)]Apr. 1989 Mar. 2015Jan. 2016Jan. 2020Jan. 2021Mar. 2021Joined Nippon Electric GlassGeneral Manager of Display Glass Division, ProductionVice PresidentSenior Vice President (incumbent)Group General Manager of Display Glass Group (incumbent)Director (incumbent) Apr. 1985Jun. 2014Jan. 2017Jan. 2021Mar. 2022Joined Nippon Electric GlassGeneral Manager of Accounting DivisionVice PresidentSenior Vice President (incumbent)Director (incumbent)Apr. 1972Jun. 2008Mar. 2011Jan. 2014Jun. 2015Mar. 2016Jun. 2017Joined Sumitomo CorporationExecutive Vice President (Representative Director) of Sumitomo CorporationLeft Sumitomo CorporationPresident (Representative Director) of Jupiter Telecommunications Co., Ltd. (currently JCOM Co., Ltd.)Chairman (Representative Director) of Jupiter Telecommunications Co., Ltd.Left Jupiter Telecommunications Co., Ltd.Outside Director of Nippon Electric Glass (incumbent)Outside Director of Tokai Cable Network Corporation (incumbent)Apr. 2010Apr. 2018Mar. 2019Professor, Graduate School of Agriculture, Kyoto UniversityEmeritus Professor, Kyoto University (incumbent) and Research Professor, Institute for Integrated Radiation and Nuclear Science, Kyoto University(incumbent)Outside Director of Nippon Electric Glass (incumbent)Engineering]Masahiro Kobayashi[Electronic Products Business]42Note: ( ) means “supervising” and [ ] means “in charge” indicating work assignments of executive officers.Nippon Electric GlassThe Foundation of Value CreationJoined Nippon Electric GlassGeneral Manager of Glass Fiber Division, ProductionApr. 1978Mar. 1997Jun. 1999Jun. 2002Jun. 2004Apr. 2008Jun. 2009Mar. 2015Director (incumbent)Vice PresidentSenior Vice PresidentExecutive Vice PresidentPresidentChairman of the Board (incumbent)Apr. 1982Jun. 2003Feb. 2005Apr. 2007Jun. 2011Apr. 2013Mar. 2015Joined Nippon Electric GlassCEO of Techneglas Inc.General Manager of Accounting DivisionVice PresidentDirector (incumbent) and Senior Vice PresidentExecutive Vice PresidentPresident (incumbent)Corporate AuditorsApr. 2009Mar. 2020Apr. 2020Professor, Faculty of Economics, Shiga UniversityOutside Director of Nippon Electric Glass (incumbent)Emeritus Professor, Shiga University (incumbent) and Professor, Faculty of Business Administration, Osaka University of Economics (incumbent)Apr. 1973Jun. 2014Apr. 2017Jun. 2017Jun. 2019Jun. 2020Jun. 2021Mar. 2022Joined Matsushita Electric Industrial Co., Ltd. (currently Panasonic Corporation)Senior Managing Director (Representative Director) of Panasonic CorporationVice President (Representative Director) of Panasonic CorporationExecutive Vice President (Representative Director) of Panasonic CorporationLeft Panasonic CorporationOutside Director of Kameda Seika Co., Ltd. (incumbent)President of the Japan-China Economic Relations and Trade Centre (incumbent)Outside Director of Nippon Electric Glass (incumbent)Outside DirectorHiroyukiIto(Independent Director)Full-timeMasahikoOhjiOutsideTsukasaTakahashiOutside DirectorYoshio Ito(Independent Director)Full-timeYoshihisaHayashiOutside Yukihiro YaguraDirectorsChairman of the Board(Representative Director)MasayukiAriokaDirector andExecutive Vice PresidentHirokazuTakeuchi(Research & Development,Process Development &Engineering, ElectronicProducts Business)Director andSenior Vice PresidentTomonori Kano(Display Glass Business)[Thin Film Business]Outside DirectorShuichiMori(Independent Director)President(Representative Director)MotoharuMatsumoto[Auditing]Director andSenior Vice PresidentHirokiYamazaki[Fundamental Technology,Intellectual Property, Environment, Quality Auditing, Product Safety Management, Cooperation in Research & Technology]Director andSenior Vice PresidentMamoru Morii(Administration, Human Resources, Purchasing, Information Systems and Sales Management)[Accounting, Corporate Strategy, Marketing, Tokyo Branch Office and Security Trade Control]Outside DirectorReiko Urade(Independent Director)Apr. 1982Apr. 2010Jun. 2013Jan. 2017Joined Nippon Electric GlassVice President andGroup General Manager of Electronic Products GroupDirector (incumbent) and Senior Vice PresidentExecutive Vice President (incumbent)Apr. 1984Oct. 2006Apr. 2011Jan. 2016Mar. 2016Joined Nippon Electric GlassGeneral Manager of Technical DivisionVice PresidentGroup General Manager of Corporate Technology GroupDirector (incumbent) and Senior Vice President (incumbent)Apr. 1982Oct. 2010Jan. 2015Mar. 2015Joined Nippon Electric GlassGeneral Manager of Development DivisionSpecial Assistant to PresidentFull-time Corporate Auditor (incumbent)Apr. 1986Mar. 2015Mar. 2019Joined Nippon Electric GlassGeneral Manager of Administrative DivisionFull-time Corporate Auditor (incumbent)Apr. 1989 Mar. 2015Jan. 2016Jan. 2020Jan. 2021Mar. 2021Joined Nippon Electric GlassGeneral Manager of Display Glass Division, ProductionVice PresidentSenior Vice President (incumbent)Group General Manager of Display Glass Group (incumbent)Director (incumbent) Apr. 1985Jun. 2014Jan. 2017Jan. 2021Mar. 2022Joined Nippon Electric GlassGeneral Manager of Accounting DivisionVice PresidentSenior Vice President (incumbent)Director (incumbent)President (Representative Director) of Jupiter Telecommunications Co., Ltd. (incumbent)Executive Vice President (Representative Director) of Sumitomo CorporationJoined Sumitomo CorporationLeft Sumitomo Corporation(currently JCOM Co., Ltd.)Apr. 1972Jun. 2008Mar. 2011Jan. 2014Jun. 2015Mar. 2016Jun. 2017Chairman (Representative Director) of Jupiter Telecommunications Co., Ltd.Left Jupiter Telecommunications Co., Ltd.Outside Director of Nippon Electric Glass (incumbent)Outside Director of Tokai Cable Network Corporation (incumbent)Apr. 2010Apr. 2018Professor, Graduate School of Agriculture, Kyoto UniversityEmeritus Professor, Kyoto University (incumbent) and Research Professor, Institute for Integrated Radiation and Nuclear Science, Kyoto UniversityMar. 2019Outside Director of Nippon Electric Glass (incumbent)Note: ( ) means “supervising” and [ ] means “in charge” indicating work assignments of executive officers.(Independent Corporate Auditor)(Independent Corporate Auditor)Apr. 1989Jul. 2012May 2013Mar. 2019Jun. 2020Registered as attorney at law and joined Katsube Law Office (currently Katsube Takahashi Law Office)Representative of Katsube Takahashi Law Office (incumbent)Outside Corporate Auditor of Aeon Delight Co., Ltd. (incumbent)Outside Corporate Auditor of Nippon Electric Glass (incumbent)Outside Corporate Auditor of Nippon Shokubai Co., Ltd. (incumbent)Oct. 1992Apr. 1996Jun. 2020Jul. 2020Aug. 2020Mar. 2022Joined Tohmatsu Audit Corporation (currently Deloitte Touche Tohmatsu LLC)Registered as certified public accountantLeft Deloitte Touche Tohmatsu LLCEstablished Yagura-jicpa (incumbent)Registered as certified public tax accountantOutside Corporate Auditor of Nippon Electric Glass (incumbent)Executive OfficersSenior Vice PresidentsVice PresidentsAkira Kishimoto[Consumer Glass Products Business]Norio Nakamura[Glass Fiber Business]Hiroaki Nomura[Glass Fiber Business (Sales),Electric Glass Fiber America, LLC]Takuo Horiuchi[Display Glass Business (Sales), Sales Management]Hitoshi Kanaya[Process Development & Engineering]Masaaki Kadomi[Research & Development]Toshiyuki Nakajima[Administration, Human Resources]Hidetaka Oda[Display Glass Business (Production)]Yoshiyuki Tamamura[Purchasing, Information Systems]Haruki Matsumiya[Process Development & Engineering]Masahiro Kobayashi[Electronic Products Business]Ken Hamajima[Glass Fiber Business (Production)]Takuji Oka[Electronic Products Business (Production)]Masanori Wada[Consumer Glass Products Business (Production)]43Integrated Report 2021AboutNippon Electric GlassValue CreationStoryValue CreationStrategiesValue Creationin PracticeThe Foundation ofValue CreationFinancial &Corporate InformationCompliance and Risk ManagementTo maintain public trust and to achieve sustainable growth, every employee and executive of our Group is expected to comply with laws and international rules, and consistently act in accordance with our organization’s high ethical standards.Compliance SystemWe established our Compliance Committee as a specialized body that ensures our Group members continues to comply with laws and regulations. The Committee also provides information on corporate ethics and is primarily focused on the items listed at right.Compliance Program● Drafting revisions to the Group Code of Conduct and Principles of ● Collecting and analyzing information on compliance and providing Activitiescompliance training● Managing an internal whistleblowing system (NEG Hotline)Group Code of Conduct and Principles of ActivitiesTo ensure that all employees are informed on compliance matters, Philosophy Structure, Code of Conduct, Principles of Activities, we have established the Group Code of Conduct and Principles and an introduction to the NEG Hotline are distributed to of Activities. Wallet-sized cards printed with the Corporate employees of group companies in Japan. Internal Whistleblowing SystemAn internal whistleblowing system called the NEG Hotline has This whistleblowing system has been set up at all of our subsidiaries, including those outside of Japan, and we are been established to help prevent any illegal violations, working to ensure that our stakeholders know about the system wrongdoings, or unethical acts and to promote early detection and that it functions properly.and quick resolution should such acts occur. We have established two consultation hotlines, one that connects employees to the Compliance Committee (internal contact point) and another that Ensuring ComplianceTo raise compliance awareness (for example, for high ethical connects to an attorney’s office (outside contact point). The standards and respect for human rights) throughout our Group, confidentiality of the informants is strictly protected at both each year we carry out compliance training as a part of an contact points, so that no unfair treatment will occur.education program for newly hired employees and antitrust 44Nippon Electric GlassThe Foundation of Value Creationseminars for employees engaged in sales activities. We also executives and employees in Japan and overseas to provide the ensure awareness among management by holding workshops for Company with signed declarations each year promising that they will directors and executive officers. At these sessions, participants abide by the Principles of Activities. This gives them the opportunity take the opportunity to discuss themes such as governance and to reflect on how they carry out their work in terms of compliance.compliance. In addition, we have designated October as the month for strengthening compliance. We conduct compliance-related lectures and workshops throughout our Group companies The UK Modern Slavery ActOur subsidiary, Electric Glass Fiber UK, Ltd., has published a both in Japan and overseas, and also put up compliance transparency statement pursuant to Section 54 of the UK Modern awareness posters throughout our facilities. Moreover, we ask all Slavery Act 2015.Import/Export Control InitiativesWe have established a Trade Control Committee as part of efforts training.to ensure thorough implementation of export controls and These and other initiatives have earned us certification as an compliance with various export-related legal requirements, such Authorized Economic Operator (AEO) by Kobe Customs for both as the Foreign Exchange and Foreign Trade Act. Among other exports and imports. This is a status conferred on those things, the Trade Control Committee scrutinizes the economic operators that have well-developed cargo security implementation of export control procedures, facilitates Foreign controls and legal compliance structures in place.Exchange and Foreign Trade Act-related training, and develops Thanks to this, not only the Company but also its overseas internal rules and regulations. subsidiaries are conferred AEO mutual recognition, thereby Also, in order to ensure appropriate compliance with import/expediting smoother import/export customs procedures. In export customs procedures and tax reporting, we have addition, we are the only Japanese glass manufacturer to be established the Specified Export Declaration Office and Special certified as an AEO for both imports and exports. (Current as of Import Declaration Office to facilitate the implementation of trade-March 29, 2022.)related business according to the requirements of the Customs In October 2021, Electric Glass (Guangzhou) Co., Ltd. Act and other tariff-related laws. As part of their efforts to ensure earned an Advanced Certified Enterprise, the highest status under thorough compliance and greater awareness, both of these Chinese AEO classification system from the local Customs.offices conduct regular Group-wide auditing and employee Implementing BCPTo be prepared for disasters such as earthquakes, typhoons, case of an emergency. Moreover, in order to resume production floods, fires, and mass infections, we created a disaster and continue to supply our customers in the aftermath of a management manual based on the company’s disaster disaster, we are working to strengthen our risk management preparedness regulations, and we carry out emergency drills system of procurement.periodically. In the wake of the 2011 Great East Japan Earthquake, we reviewed our disaster management measures and implemented seismic reinforcement to our buildings, production facilities, and equipment.In 2015, we began using Business Continuity Planning (BCP), which replaced the previous disaster preparedness regulations. To facilitate the processes necessary for BCP, a manual providing information on detailed preparation procedures and actions that should be taken when an emergency or disaster strikes was created. In accordance with the implementation of BCP, we have also introduced a system that will efficiently confirm the whereabouts of all domestic employees and their families in Risk ManagementBasic Policy of BCP❶ To protect each employee and their families and to secure their safety❷ To protect production equipment, to prevent the spread of damage as well as secondary disasters from occurring within the company and the adjacent communities, and to help with rescue efforts❸ To resume providing customers with products and services as rapidly as possibleOur Group reviews business risks on a periodic basis, based on committees formulate regulations and guidelines, conduct our policy on internal control, and takes the necessary steps to training, prepare manuals, and undertake additional activities as manage such risks. In cases involving any business risks that are deemed necessary.deemed significant, responsible divisions or specialized 45Integrated Report 2021AboutNippon Electric GlassValue CreationStoryValue CreationStrategiesValue Creationin PracticeThe Foundation ofValue CreationFinancial &Corporate InformationCSR FoundationWe will contribute to realizing a sustainable society by working on three priority themes: the Environment, Diversity and Inclusion, and Community Contribution.The History and Themes of Our CSR ActivitiesOur work on pollution problems at our Fujisawa Plant in the early 1970s taught us to undertake environmental conservation as an issue crucial to the sustainability of our operations. A particular characteristic of special glass manufacturers is the consumption of large amounts of energy and resources, and the emission of carbon dioxide. Accordingly, environmental conservation continues to be an issue of the upmost importance for our Group. At the same time, we have engaged in contribution to the community mainly by assisting with the education of local human resources and through active involvement in employment of the disabled.Based on this historical background, and in order to further advance our CSR activities, the Management Committee in which our top management participates has established a “way of thinking” that forms the foundation of these activities, which we have set forth in our CSR priority themes.Our Fundamental Way of Thinking Regarding CSRCSR is a key area in our corporate activities and cannot exist separate from our Corporate Philosophy Structure. Accordingly, we carry out our CSR activities in accordance with the intention of our Corporate Philosophy Structure and, through the implementation of CSR activities, we aim to raise our corporate value and realize a sustainable society. We have established both of these approaches as our fundamental way of thinking in regard to CSR.Three Priority ThemesOur Way of Thinking on CSRWe promote CSR with our Corporate Philosophy Structure as the basic principles.realize a sustainable society.Through our CSR activities we will raise our corporate value and We have established the Environment, Diversity and Inclusion, and Community Contribution as the three priority themes (those with the Materiality) of our CSR. These themes have a strong association with the priority issues that we have focused on so far (environmental conservation, community contribution, employment of the disabled). We have reconfirmed the background and importance of these three themes and have clarified the future direction for scaling up our initiatives on a broader scale. In addition, we will place emphasis on these themes, as we believe they are directly linked to the United Nations’ Sustainable Development Goals (SDGs).Materiality Determination ProcessSTEP1STEP2STEP3STEP4Narrow down from social perspectiveAssess from business activity perspective Executives verify suitabilityMateriality determinedThree Priority Themes DefinedEnvironmentDiversity and InclusionCommunity ContributionEnvironmental conservation is a duty for a The basis of our thinking on Diversity and A good relationship with the community is company like ours whose operations incur Inclusion is that the integrated strength of essential for sustainable business. a high environmental burden, so we personnel with diverse backgrounds and Therefore, we believe it is important to advocate “consideration for the environment” and “efficient manufacturing values—whether in terms of gender, race, or so on—is the driving force behind engage with local communities to gain their trust and appreciation. We will continue to processes lead to environment-friendly corporate growth. Of course, employment actively participate in local activities, and manufacturing.” Furthermore, we maintain of the disabled is also included in this also provide support for the disadvantaged the attitude that it is unthinkable for our theme. At the same time, we will do our and for human resource development in the operational activities not to include utmost for all these employees by providing communities we serve.environmental conservation activities.personnel training and maintaining a safe and healthy working environment for them.46Nippon Electric GlassThe Foundation of Value CreationThe Basic Policy of Our Priority ThemesIn order to further clarify the direction of our CSR activities, we have determined a basic policy for each of our priority themes. Furthermore, we have identified corporate governance as the foundation of the core elements of our CSR and are positioning and developing it within the framework of our CSR.Three Priority ThemesEnvironmentDiversity and InclusionCommunity Contribution• Consideration for the environment • Reduction of the environmental burden caused by our operations• Conservation of the global environment and the realization of a recycling-oriented society• A work environment in which diverse personnel can flourish• Health and safety activities based on health and productivity management• Continuous development of human resources• Community-based activities• Sustainable activities• Activities that contribute to community developmentCorporate GovernanceEnhancing corporate governance to support the core elements of our CSRStrengthening of Corporate GovernanceImprovement of Information Disclosure• Ensure transparency of management.• Reinforce the functions of our Board of Directors.• Strengthen our compliance management.• Risk management• Promote communication with stakeholders. • Fair and timely disclosureWe have put into writing our way of thinking on CSR and what our three priority themes are. We are actively pursuing CSR activities focused on divisions central to each priority theme, i.e., the Environment Division, Human Resources Division, Administrative Division, and Fundamental Technology Division. Through activities like these, we are contributing to the realization of a sustainable society and the improvement of our corporate value.47Integrated Report 2021AboutNippon Electric GlassValue CreationStoryValue CreationStrategiesValue Creationin PracticeThe Foundation ofValue CreationFinancial &Corporate InformationEnvironmentenvironmentally friendly way.With “consideration for the environment” as one of our key values, we will continue to manufacture products in an Our Way of Thinking on Environmental ConservationEnvironmental conservation is one of top management priorities as a special glass manufacturer that uses a large amount of resources and energy. We hold consideration for the environment as an important value and have always been conscious of environmental conservation through our operations. We firmly believe that having the world’s most efficient processes possible is the key to achieving the world’s most environment-friendly manufacturing. In this regard, we are constantly striving to reduce our environmental footprint while promoting various challenges including sustainable development and biodiversity conservation. We are also putting in place measures to achieve carbon neutrality, a key concern in light of ongoing global climate change.The Environmental Charter is our fundamental policy on the environment and sets forth the direction we need to follow in enacting our initiatives for environmental conservation. In accordance with our Environmental Charter, through our glass business, and together with our Group companies, we will continue to be instrumental in preserving the global environment and realizing a recycling-oriented society.Environmental CharterEnvironmental PrinciplesPreservation of the global environment is extremely important and indispensable for the prosperity of civilization and humanity in the 21st century. Nippon Electric Glass, upholding the Corporate Philosophy of “To build a brighter future for the world by uncovering the unlimited possibilities of glass for more advanced creative manufacturing” and adhering to “Consideration for the environment” as one of its essential corporate values, strives to be and remain the world’s leading manufacturer of special glass by ensuring the state-of-the-art technological development, the highest quality standards, efficient production, and steady product supply. Nippon Electric Glass and its Group companies are committed to contributing to the preservation of the global environment and realization of a recycling-based society by adopting high-efficiency and environmentally responsible processes.Action Plan1. We will honor and observe all environment-related laws and regulations and the environment-related agreements and conventions that we have signed, and establish and enforce our own and voluntary environmental restrictions.2. We will endeavor to reduce our environmental impact in all aspects of our corporate activities and in all stages of the product life cycle, including procurement, manufacturing, transportation, sales, use, reuse, treatment, and disposal.3. We will attain the world’s highest-level manufacturing to more effectively utilize natural resources and energy sources, thereby contributing to preservation of biodiversity and reduction of greenhouse gas emissions.4. We will strive to adapt our activities to the requirements of 21st-century society to prevent pollution, thereby optimizing our presence in society.5. We will set environmental objectives and targets and attain them through optimization of our essential operations and environmental protection activities in which all employees participate. We will also continuously improve our environmental management system to enhance our environmental protection performance.This Charter is informed to all employees and affiliated companies, and is made available to parties outside the Company at their request.Environmental Management SystemOur environmental management system is composed of an Environment Division, business departments (including manufacturing group companies inside and outside Japan) and staff departments—all working under the president and executive officer in charge of environment.Environmental Management MeetingThis meeting is held every three months. The executive officer in charge of environment chairs the meeting, which is attended by the President, Executive Vice President, Senior Vice Presidents, General Managers of our business departments, and representatives of our major group companies that carry out manufacturing. The meeting serves as a forum for deliberations related to groupwide environmental activities, covering our responses to climate change and many other environmental issues, along with the rollout of environmental conservation initiatives.Environmental Management OrganizationBoard of DirectorsPresidentManagement CommitteeEnvironmental Management MeetingExecutive Officer in Charge of EnvironmentEnvironment DivisionIdentification of Issues, Planning, and Progress AssessmentEach Business Department/Staff DepartmentDomestic/Overseas Manufacturing Group Companies Activities under Environmental Business PlanEnvironmental Conservation Activities48Nippon Electric GlassThe Foundation of Value CreationEnvironmental Business PlanOur Environmental Business Plan is our own unique initiative that Waste Categoriesapplies business management principles to environmental conservation. In 2021, we launched initiatives related to energy that supplement our existing focus on waste and water since 2000. Through these efforts, we are demonstrating our commitment to reducing our environmental impact while adopting measures to address the issue of global warming.Energy EfficiencyWaste ReductionWater ReductionInternal Recycling ASpent polishing agents, glass shards, and other materials useful in-house as recycled raw materialsnoitareneGSocial Recycling BScrap metal, scrap bricks, waste paper,scrap plastic (recycled), and other materials,which have value externally as reusable materialsesaeeRlCorporate Recycling CScrap plastic (converted to fuel), waste oil,wood scrap, and other materials, which we pay to have recycled outside the companySmallEnvironmental impactLandfill Waste DIncombustible materials, incinerated ash, wasterefractories, and other materials, which we pay to have disposed of in landfillsLargeEnergy EfficiencyWe are making visible the total amount of energy used by the Water ReductionWe consider the amount of water that we use to be an important group globally in our product manufacturing processes, and have factor in determining how skillfully we perform manufacturing. By begun implementing an energy business plan aimed at using managing our water usage, intake, and outflow, we increase our energy efficiently and reducing waste. The data we gather will be understanding of the entire glass manufacturing process, while analyzed to determine what productivity improvement measures further improving our process technologies and equipment. to implement and to create efficiency improvement plans and set Management efforts continue to be focused on decreasing our consumption rate targets for more efficient energy use.rate of water consumption.We will combine these initiatives with improvements in electricity usage and the introduction of new manufacturing process technologies, such as hydrogen combustion. Promoting efforts to reach our targets for carbon neutrality, we aim to be the world’s most efficient and most eco-friendly glass manufacturer.Water Flowsuch activities as periodic maintenance of glass melting furnaces. Treated waterUsed waterWaste ReductionWe separate waste into two categories: “normal waste,” which comprises waste generated by our normal production activities, and “bulky construction waste,” which is waste generated by These waste categories are further separated into the four subcategories shown in the accompanying figure, with “Landfill Waste D” being our highest waste reduction priority due to its high environmental impact.Initiative to Protect the Global EnvironmentWater intakeOutflow of waterWater used/reused in-houseWell water, tap water,industrial water,rainwater, spring waterPolishing, grinding, cleaning;equipment and AC cooling water;domestic water(cafeterias, baths, toilets)River discharge,public sewerdischargeWatertreatmentEvaporated water,landscaping water,etc.As part of our initiative to protect the global environment and contribute to sustainable systems, we take measures to conserve biodiversity while supplying and developing eco-friendly products that both save energy and generate energy.49Integrated Report 2021AboutNippon Electric GlassValue CreationStoryValue CreationStrategiesValue Creationin PracticeThe Foundation ofValue CreationFinancial &Corporate InformationSpecial FeatureOur Initiatives for Carbon NeutralityWe aim to achieve carbon neutrality by 2050 through aggressive investments, R&D, and other initiatives.Carbon neutrality is a critical global issue to prevent global warming. Under such circumstances, in February 2022, we determined target values to reduce CO2 emissions and announced them together with our initiatives to achieve the targets.CO2 Emissions Reduction TargetsBy 2030CO2 emissions compared with 2018 (Scope 1 + Scope 2)Emissions intensity (Scope 1 + Scope 2)* Production weight ratioReduced by 36%Reduced by 60%Achieving carbon neutrality by 2050CO2e (tens of thousands of tons)Compared with fiscal 2018Scope 1Scope 2261240EmissionsEmissions intensityReduced by 36% Reduced by 60%* Production weight ratio171188Achievingcarbonneutrality3002502001501005002018(Base year)20192020202120302050Supporting the TCFD RecommendationsIn November 2021, we declared our support for the Task Force on Climate-Related Financial Disclosures (TCFD) to analyze risks and opportunities that climate change brings to our businesses, as well as to inform everyone of financial impacts and our countermeasures. We continue to proceed with analyses based on the TCFD recommendations and disclose information appropriately.50Nippon Electric GlassThe Foundation of Value CreationApproach to CO2 Emissions ReductionReducing the amount of greenhouse gases emitted from glass melting furnaces is a critical issue for the glass manufacturing industry, and we have been working on this issue as our highest priority. Reducing Energy Loss Caused by Exhaust GasesThe most efficient manufacturing in the world leads to the most environmentally friendly manufacturing in the world. To achieve this, we will need to improve product quality and yield to minimize the amounts of raw materials and energy that we use for our manufacturing. It is also important to improve thermal efficiency. Conventional glass melting furnac