日本電気硝子（5214） – ESG Databook 2021

ESG DatabookFor the year ended December 31, 2021Contents010204051216Corporate GovernanceComplianceRisk ManagementEnvironmentDiversity and InclusionCorporate Information On the Issuance of Our DatabookThe Nippon Electric Glass Group ESG Databook 2021 contains information that will be of particular interest to our stakeholders who want to get more information on our environmental, social, and governance-related efforts beyond what appears in our Integrated Report 2021 and on the Company website. With your feedback, we plan to continue improving such reports to make the information easier to understand. Organizations CoveredThe Nippon Electric Glass Group’s 10 companies in Japan and 15 companies outside Japan are covered in this databook. In cases where the coverage area of the data differs, we have indicated the appropriate coverage areas respectively. Period of ReportingFiscal 2021 (January 2021 to December 2021) Some qualitative information regarding fiscal 2022 has also been included in this databook. Publication, Next Scheduled Publication Issued in May 2022. Next scheduled issue in May 2023.Disclosure PolicyThe Group Code of Conduct stipulates that our Group will disclose necessary corporate information in a timely and appropriate manner to enhance communication with concerned parties. Following this policy, we will continue to disclose important information related to our Group’s activities to all stakeholders, including shareholders and investors, in a timely and appropriate manner.Caution Concerning Forward-Looking StatementsStatements in this databook with respect to our Group’s plans, outlooks, strategies, and other statements that are not historical facts, are forward-looking statements involving risks and uncertainties.Corporate Governance Attendance of Board of Directors and Board of Corporate Auditors Meetings in Fiscal 2021NameBoard of DirectorsBoard of Corporate AuditorsRepresentativeDirectorsMasayuki Arioka14/14 meetings (100%)Motoharu Matsumoto14/14 meetings (100%)—————————Hirokazu Takeuchi14/14 meetings (100%)Koichi Tsuda14/14 meetings (100%)Hiroki Yamazaki14/14 meetings (100%)Tomonori Kano11/11 meetings (100%)(Since assuming office in March 2021)Shuichi Mori14/14 meetings (100%)Reiko Urade14/14 meetings (100%)Hiroyuki Ito14/14 meetings (100%)Masahiko Ohji14/14 meetings (100%)13/13 meetings (100%)Yoshihisa Hayashi14/14 meetings (100%)13/13 meetings (100%)Katsuhiro Matsui14/14 meetings (100%)13/13 meetings (100%)Tsukasa Takahashi14/14 meetings (100%)13/13 meetings (100%)DirectorsOutsideDirectorsFull-timeCorporateAuditorsOutsideCorporateAuditors Training for Directors and AuditorsDuring Compliance Awareness Month, which is held in October of every year, we invite outside instructors to come and give lectures on compliance to our inside directors, full-time corporate auditors, and other executives. We also hold director training seminars every year, which provide our directors with a deeper understanding of current business conditions, including those surrounding corporate governance. Our corporate auditors participate in seminars and information exchanges with outside organizations, through which they deepen their auditing-related expertise. For our outside directors and outside corporate auditors, prior to assuming office, we provide them with explanations about our current corporate situation and systems. After they have assumed office, we provide them with opportunities to conduct interviews with directors and executive officers. Total Amount of Directors’ and Corporate Auditors’ Remuneration in Fiscal 2021CategoryTotal amount of remuneration(millions of yen)Total amount for each type of remuneration (millions of yen)Monthly (fixed) remunerationRestricted stock-based remunerationBonusesRetirement benefitsNumber of eligible Board MembersDirectors (Outside Directors excluded)Corporate Auditors (Outside Corporate Auditors excluded)Outside Directors and Corporate Auditors3612304137413740——0190—————725Corporate GovernanceEnvironmentDiversity and InclusionCompliance Internal Whistleblowing System “NEG Hotline”Known by name or AnonymousContact point: Compliance CommitteeMeans: postal mail or emailtnamaCli ro tnamrofnIKnown by nameKnown by name or AnonymousContact point: attorney’s office (NEG Hotline contact)Means: postal mail, email, phone or faxAnonymousAnonymouseciffo s’yenrottANote: Flow diagram is for the Company and its group companies in Japan.■ Number of exposures or claims within the Group2017420186201911202011202112Note: Figures for 2017 and 2018 are for the Company and its group companies in Japan only. Compliance Committee Measures to Prevent CorruptionWith increasing globalization, the importance of preventing corrupt actions such as bribery in international transactions is being recognized in Our Group Code of Conduct prohibits the bribery of public officials or others in positions of public service in Japan or any other country. The issue of preventing corruption is addressed in compliance training at our group companies both in Japan and abroad, held during Compliance various countries. Awareness Month. Measures to Maintain Fair Business DealingsWe recognize the importance of adhering to antitrust laws in promoting fair international dealings. Our Group Code of Conduct prohibits actions such as price-fixing or cartel agreements, and based on the internal rules at our group companies inside and outside Japan, any contact with a director and an employee of a competitor must be requested ahead of time and reported on afterwards. Adherence to the antitrust laws is covered in our annual group company compliance training, and we also hold seminars on the antitrust laws for employees who work in sales.02Corporate GovernanceEnvironmentDiversity and Inclusion Compliance Education, Workshops, and Lectures Held in Fiscal 2021 NameIntended PersonsTimes ParticipantsThemesEducation for new employees(new graduates)All new employees (new graduates)JapanWorkshop (online)LectureManagers at our Company and subsidiaries in Japan(Participants shall inform other employees in their workplace of the content.)Executives and general managers at our Company, representatives of subsidiaries in Japan, area branch managersAntitrust seminar for sales departmentsEmployees of our Company engaged in sales activities241238156• Corporate Philosophy, Code of Conduct, Principles of Activities• What is compliance?• Internal whistleblowing system• Case studies and the like• Outline of compliance• Recent trends (background and notes)• Internal whistleblowing system and the like58• On quality fraud57Antitrust laws• Outline of antitrust laws• Effects of revision to laws and case studies• Corporate Philosophy, Code of Conduct, Principles of Activities• Protecting human rights in the supply • Trade secrets, personal information• Internal whistleblowing system and the likeOversease-LearningManagers at subsidiaries in Malaysia, the U.S.A. and Europe―312chainAs a result of these efforts, no cases occurred in fiscal 2021 of bribery, anticompetitive acts, or any other infraction requiring legal action.■ BCP Response Training■ BCP Activation Structure BCPAt our BCP response training carried out in November 2021, we simulated the scenario of a major earthquake in the active fault zone on the west coast of Lake Biwa, set up a remote disaster headquarters, and elicited issues that could arise.Head Office Disaster ResponseTask ForceArea Branch Disaster ResponseTask Force(for 6 bases in Japan)RolesHead Office: Implement basic policy and decision-making for general disaster response. Area Branches: Facilitate disaster response while coordinating closely with the Head Office.Structure of Head Office Disaster Response Task ForceTask ForceDirector(President)Task ForceDeputy Director(front-line command)Task ForceDeputy Director(logistical support)General Affairs ManagerPersonnel ManagerAccounting ManagerProcurement ManagerIT Systems ManagerFacilities ManagerEquipment ManagerEnvironmental ManagerSales ManagerSecretariat03BCP response trainingCorporate GovernanceEnvironmentDiversity and InclusionRisk Management Business RisksRisk DescriptionPossibilityEffectResponse① Risks related to procurement of materials and other itemsLimited supply or delays for raw materials and fuels, or rising prices of such materials or logistical costsMediumHigh② Risks related to natural disasters, accidents and outbreaks of communicable disease③ Risks related to information management④ Drastic changes in demand and market structure⑤ Capital expenditure risksSuspension of operations or delays in production and shipments caused by natural disasters such as earthquakes, typhoons, and heavy rains, or accidents such as fires and power outages, or outbreaks of infectious disease (including such occurrences in the supply chain); and costs to repair damage to facilitiesClaims for damages due to the leaking of confidential information that our Group obtained in the course of business, or tarnished corporate reputation due to such problems; and the suspension of business activities or information systems operation due to a computer virus or cyberattackContracted demand for existing products due to technological innovation, or fluctuation of price or supply of products due to intensified competitionSignificant change in demand forecast, shortage of plant capacity, sudden change in price of major equipment or materialsA shift to stricter environmental regulations, or more corporate responsibilities related to the environment demanded by society⑥ Environmental risksMediumMediumMaintain good relations with suppliers, find new suppliers, increase the number of suppliers, and switch to general-purpose materials.Implement a business continuity plan; provide seismic reinforcement of structures; implement disaster-preparedness measures; arrange dispersed manufacturing sites; and prevent the introduction and spread of communicable diseases.MediumHighMediumMediumEstablish an Information Management Committee, deploy security systems, and provide in-house training.MediumMediumSpeed up R&D, respond to new needs through aggressive sales.MediumMediumWhen and however necessary, build new production facilities and continuously upgrade them.Develop environmentally friendly products, ensure that facilities and management systems exert minimal impact on the environment, raise production efficiency, practice the 3Rs (reduce, reuse, recycle), strengthen efforts to reduce carbon emissions, and promote disclosure based on TCFD recommendations.Comply with laws and regulations, survey changes in legal revisions, and hold periodic in-house education and audits.Utilize forward exchange contracts, properly manage interest-bearing debt, and carry out interest rate swap transactions.⑦ Risks related to legal restrictionsViolation of the laws or regulations of the country or region where we operateMediumLowFluctuations in currency exchange rates and interest ratesMediumLow⑧ Risks related to fluctuations in currency exchange rates and interest rates⑨ Risks related to certain products⑩ Risks related to overseas business operationsChange in investment or sales plan or material procurement policy of our major customersUnanticipated changes in laws or regulations; international tax risk; particular trade practices; changes in political or social conditions; and social turmoil due to terrorism, war, outbreaks of infectious disease, or other factors⑪ Securing human resources and business-related risksDifficulty in securing appropriate human resources for future business development and labor-related compliance violationsLowMedium⑫ Risks related to intellectual property rightsA litigation related to intellectual property rightsLowMediumLowHighDiversify our customer base.LowMediumFacilitate close communication between overseas subsidiaries and local authorities, and get advice from experts.Secure an optimal and effective workforce through active recruitment and training of diverse personnel; achieve labor saving through automation and other means; and institute labor management according to laws and regulations.Obtain intellectual property rights useful for business, survey and monitor other companies’ intellectual property rights, develop alternative technologies, and take over or license intellectual property from other companies.04Corporate GovernanceEnvironmentDiversity and Inclusion Environmental Management LogoThis logo was created in June 1993 and is used in our Environmental Management System activities and Environmental Charter. The design was selected from among internal suggestions. The green leaves represent new environmental technologies, nature, and the hands of our employees, while the blue circle depicts the sky and the Earth, environmental equipment made by our employees, and the community and society surrounding us. Promoting the Environmental Management PlanIn an effort to improve our environmental performance in fiscal 2021, we achieved 36 of the 39 targets we recognized at our plants in Japan. In fiscal 2022, we identified 42 targets that address urgent issues related to reductions in carbon dioxide emissions, energy and resource consumption; and matters directly linked to our core operations. ISO 14001 Certification StatusIn August 2017, we renewed our certification of registration for the international environmental standard ISO 14001:2015 (revised in 2015). Then in 2020 we retained our certification in the first renewal audit under the new standard. To further improve our environmental performance, we are committed to implementing the PDCA SGS Engineering Co., Ltd.(Plan, Do, Check, Act) cycle.JapanISO 14001 Certification Status of Our GroupCompany nameDate of certificationNippon Electric Glass Co., Ltd.(multi-certification at four plants)Group companiesDate of certificationAug. 27, 1999Jan. 19, 2001Nov. 1, 2002Feb. 15, 2013Dec. 25, 2020Jan. 31, 2000Jan. 12, 2002Sep. 18, 2006Aug. 28, 2007Oct. 9, 2007Dec. 21, 2009Dec. 9, 2014Nov. 11, 2015Apr. 17, 2017May 22, 2017Apr. 13, 2018Nichiden Glass Processing Company, LimitedShiga Nichiman Company, LimitedLTCC Materials Co., Ltd.OverseasTechneglas LLCNippon Electric Glass (Malaysia) Sdn. Bhd.Nippon Electric Glass Taiwan Co., Ltd.Paju Electric Glass Co., Ltd.Nippon Electric Glass (Korea) Co., Ltd.Electric Glass (Shanghai) Co., Ltd.Electric Glass (Korea) Co., Ltd.Electric Glass (Guangzhou) Co., Ltd.Electric Glass (Xiamen) Co., Ltd.Electric Glass Fiber NL, B.V.Electric Glass (Nanjing) Co., Ltd.05 Environmental EducationAll of our employees are regarded as important contributors to our environmental initiatives, so we provide them with various types of training in environmental management. We focus on upgrading the skills of our internal auditors and evaluators of environmental management, and train employees who have that responsibility. In fiscal 2021 such training was carried out for 38 new internal auditors.Corporate GovernanceDiversity and InclusionEnvironment Environmental Business Plan■ Energy EfficiencyIn 2021 we initiated efforts under an energy business plan that makes visible the amount of energy used in product manufacturing processes globally and promotes the efficient use of energy and reduction of wasteful use.We analyze the data obtained to boost productivity and develop effective measures, while continuing to reduce our energy intensity (production weight ratio) by setting targets and creating improvement plans for improving energy efficiency.■ Waste ReductionWaste CategoriesAs part of the waste reduction efforts we launched in 2000, we 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 such activities as periodic maintenance of glass melting furnaces. 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. With regard to normal waste requiring landfill disposal (Landfill Waste D), our ongoing efforts since 2009 to minimize and recycle what we generate on a daily basis have reduced the percentage of this waste per total weight of products sold to 0.1% or less. On the other hand, however, as a result of glass fiber business acquisitions in the U.K., Netherlands, and U.S.A. in 2016 and 2017, the amount of normal waste that the Group produces has increased dramatically. Moving forward, we will continue to promote our efforts overseas to reduce the amount of normal waste we generate. With regard to bulky construction waste requiring landfill disposal (Landfill Waste D), the majority of this waste is generated from glass melting furnace repairs and comprises unrecyclable waste brick. In 2017, we put in place a mechanism for shifting this waste to Social Recycling B by having a refractory manufacturer use waste chromium (Cr) bricks and zirconium (Zr) bricks as raw materials. This has also contributed to a significant reduction in landfill waste disposal associated with Cr bricks, which are classified as specially controlled industrial waste.Internal Recycling ASpent polishing agents, glass shards, and other materials useful in-house as recycled raw materialsSocial Recycling BScrap metal, scrap bricks, waste paper,scrap plastic (recycled), and other materials,which have value externally as reusable materialsCorporate Recycling CScrap plastic (converted to fuel), waste oil,wood scrap, and other materials, which we pay to have recycled outside the companyLandfill Waste DIncombustible materials, incinerated ash, wasterefractories, and other materials, which we pay to have disposed of in landfillsnoitareneGesaeeRlNormal Waste (Landfill Waste D) per Total Weight of Products SoldThe CompanyConsolidatedSmallEnvironmental impactLarge6.50.02■ Water ReductionWe believe that our level of manufacturing refinement is represented in the way water is used. Consequently, by managing our water usage we are increasing our understanding of the entire glass manufacturing process, including melting, forming, and processing, while further improving our process technology and equipment. The graph on the next page shows the change overtime in water intake and waste water per total weight of products sold. Although intensity increased after fiscal 2004 due to the rapid switchover from CRTs to LCDs, our intensity has declined as a result of management efforts to improve utilization efficiency within the LCD business since fiscal 2014.To reduce the intake volume of valuable water resources, we are promoting the reuse of water used in high volumes for cooling in the melting and forming stages and for cleaning at the processing stage. We are also reducing water intake and water out even for other uses through cascading (downcycling), depending on the purpose of the water use or required grade, as well as recycling water through purification.(%)8.06.04.02.000600051015161718192120Corporate GovernanceDiversity and InclusionEnvironmentWater Intake/Waste Water per Total Weight of Products Sold(m3/t)Water intakeWaste water20.015.010.05.00Water FlowWater intakeWater used/reused in-houseOutflow of waterWell water, tap water,industrial water,rainwater, spring waterPolishing, grinding, cleaning;equipment and AC cooling water;domestic water(cafeterias, baths, toilets)Treated waterUsed waterWatertreatmentRiver discharge,public sewerdischargeEvaporated water,landscaping water,etc.8.64.6 Our Global Warming CountermeasuresReducing greenhouse gas emissions from melting furnaces is a vital issue in the glass manufacturing industry, which uses a high volume of energy for melting, and it is a top priority for us.■ Oxy-fuel Firing Glass Melting FurnacesPercentage of Oxy-fuel Firing Furnaces among All Melting FurnacesAn oxy-fuel firing furnace differs from an air combustion furnace in that nitrogen is not taken into the furnace, which means that less exhaust gas (and consequently exhaust heat) is produced, thus reducing fuel consumption and CO2 emissions. Furthermore, the generation of thermal nitrogen oxides (NOx) in a furnace is reduced.In 1993, we installed Japan’s first oxy-fuel firing glass melting furnace. This technology has now been adopted for almost all of our furnaces.■ Fuel Conversion in Glass Melting FurnacesFuel ConversionWe have been making a shift to fuels that produce lower carbon emissions—actively switching to the use of natural gas over the last 20 years. In 2010 we completely stopped using heavy oil, and in 2020 we achieved a natural gas usage rate of 99.7%.00051015161718192021Heavy oilKeroseneLPGNatural gas00051015161718192021■ Increasing Electricity Usage in the Glass Melting Electricity UsageProcessIn the current melting process, both gas and electricity are used. When using electricity, we insert electrodes into the molten glass, a method of heating that uses the direct passage of electric current. This method is highly energy efficient, and produces less exhaust heat than gas combustion. Carbon emissions can also be reduced going forward by introducing renewable energy sources. To achieve this, our Group is promoting a shift to hybrid melting furnaces that can be powered by electricity. A further shift to all-electric melting furnaces is the direction in which we are headed, with the aim of achieving carbon neutrality in the future.0005101516171819202195.799.799.70.339.061.0(%)100806040200(%)100806040200(%)1008060402000700051015161718192120Fossil fuelsElectricityCorporate GovernanceDiversity and InclusionEnvironment Protecting BiodiversityTo fulfill our social responsibility as a corporation, we are required to make efforts to protect the global environment in our business operations. We have identified “consideration for the environment” as one of our key values, and we have been working to reduce our environmental footprint. Committed to the principle of leaving nature untouched, except for the locations required for our business operations, the Notogawa Plant maintains natural forests that make use of the native vegetation of the local Suzuka Mountain Range, and has even left local streams undisturbed since it was established. Flower seedlings are also grown in a greenhouse inside the plant and used to beautify the local area.In addition to reducing emissions of greenhouse gases, our employees participate in volunteer work to maintain forests carried out by a local forestry cooperative, and we take part in the extermination of invasive fish species in an effort to protect the ecosystem of Lake Biwa. Through such initiatives, we are working to conserve local biodiversity.In March 2021, we entered into a partner agreement with the Shiga Prefecture Afforestation Public Corporation, a general incorporated association whose director is the governor of Shiga Prefecture, Taizo Mikazuki. The Lake Biwa Carbon Credit system, began in 2021, allows Shiga Prefecture to use the national government’s J-Credit Scheme to earn credits for amounts of CO2 emissions reduced through energy-saving measures or the utilization of renewable energy, or for the amount of CO2 absorbed through forest management. The Shiga Pedestrian path through native natural vegetationEnvironmental Topics ①The Lake Biwa Carbon Credit Partner AgreementPrefecture Afforestation Public Corporation can then sell those credits to partners. The system’s aim is to achieve net zero carbon emissions in Shiga in the future. The funds from the buying and selling of offset credits are used to protect forests, from which the water of Lake Biwa originates, creating a positive cycle of reinforcement between the Shiga CO2 Net Zero movement and Lake Biwa environmental conservation efforts.Since 2018, we have been purchasing J-credits continuously from the Konze Forestry Association in Ritto, Shiga Prefecture, and this is our second case of purchasing J-credits through the Lake Biwa Carbon Credit system. We will continue on a regular basis to purchase credits produced in the prefecture, and support over the medium-to-long term forest conservation activities in Shiga, our home prefecture, to contribute to the Shiga CO2 Net Zero movement and the conservation of Lake Biwa.08Corporate GovernanceDiversity and InclusionEnvironment Analysis of Environmental Impact (fiscal 2021 consolidated basis)Annual CO2 emissions and CO2 emissions intensityScope 1Scope 2(1,000 ton-CO2e)3,500■2030 reduction targets (relative to 2018)∙CO2 emissions: 36% reduction∙CO2 emissions intensity: 60% reduction (production weight ratio)(%)10090807060504030781,8801,0108702118Base year192030Target(1,000 MWh)10,000FuelElectricity2. WaterWater intake(1,000 m3)10,00017181920211718192021NOx8,0006,0004,0002,0000(ton)5,0004,0003,0002,0001,0000120804005,9902,3403,6501511765,03009Particulate matter1718192021171819202117181920213. WasteTotal emissions(1,000 ton)160Landfill waste (Category D)Recycling (Category B+C)1718192021171819203,0002,5002,0001,5001,0005000■ Input1. EnergyTotal energy■ Output1. AtmosphereSOx8,0006,0004,0002,0000(ton)300250200150100500(ton)3002502001501005002. WaterWaste water(1,000 m3)10,0008,0006,0004,0002,00008,2702,450118417721CO2 emissions intensity (production weight ratio)Corporate GovernanceDiversity and InclusionEnvironment Environmental Accounting (The Company)CategoryMain Activities(Millions of yen)20202021Investment Expenses Investment Expenses3,2254221,0751,728195298— 21————18413464369980614———482,9934916911,811166101221272314,5479575,137(Millions of yen)(1) Costs within operational area(2) Upstream and downstream costs(3) Costs of management activities(4) Research and development costsCosts to reduceenvironmental footprint ofproduction activities withinoperational areaCosts to reduceenvironmental footprint ofupstream and downstreamproduction activitiesnwodkaerB①Anti-pollution maintenance and management costs ②Global environmental conservation costs③Resource recycling costsCosts for green procurement, product recycling, container and packaging recycling, environmental conservation measuresEnvironmental conservationcosts within managementactivitiesCosts for environmental education, ISO 14001 system construction and maintenance, and measuring of environmental footprint; labor costs of environmental managers6663742Environmental conservationcosts of R&D activitiesExpenses related to the development of environmentally friendly products, expenses related to production technology designed to reduce environmental impact 1822780887(5) Costs for social initiativesEnvironmental conservationcosts of social initiativesBeautification and tree-planting activities for harmonious coexistence with local communities, support for local communities, environment-related advertising costs, afforestation(6) Environmental remediation costsCosts to deal with damageto the environmentEnvironmental restoration expenses(7) Other costsOther costs relating toenvironmental conservationExpenses for dismantling and removal of environment-related equipment and facilitiesTotalItemNote: Regarding investment and expenses, only costs clearly arising directly from environmental concerns have been aggregated. In regard to production facilities and R&D, only sections related to the environment have been included.Total investment19,22434,234Contents20202021Total research and development costs5,8936,272Scheduled repair of glass melting furnaces and productionrationalization investment, investment to improve manufacturingproductivity of major productsDevelopment and improvement of process technology,and development of products, including FPD glass and glassfor electronic devicesSales of scrap metal, scrap bricks, etc.90100Proceeds from sales of valuableresources related to ③ of (1)Proceeds from sales of valuableresources related to (2)Environmental Topics ②Glass Fiber RecyclingRecycling technologies have long been used in Japan in the glass fiber business to produce fiber used in various applications such as automobiles, households appliances, and everyday items.When used as a composite reinforcing material, glass fibers are bundled together and surface-treated with organic material, both as protection and to enable the fibers to bond with resin. That finish poses a problem, causing many glass fiber manufacturers to treat loss and waste generated in the manufacturing process as industrial waste. We have eliminated the finish, so we can grind the glass fiber and turn it entirely into reusable material. Also, we collect the dust in the vapor generated from molten glass, whose main component is boric acid, and reuse it in glass raw material—a technology established in the 1980s. These technologies also help to Glass fiber also used in electric vehicles and fuel cell vehiclesconserve resources and clean exhaust gas.10Corporate GovernanceDiversity and InclusionEnvironment Environmentally Friendly ProductsWe contribute to a sustainable society by providing products that help conserve the global environment.Sales of environmentally friendly products: 90 billion yen in fiscal 2021Saving energy and laborCreating energyE Glass Fiber(Chopped strands)G-Leaf™, ultra-thin glassE Glass Fiber (Roving)Used in plastic automobile parts, make devices lighter. It also turbines. It also holds promise as reinforcement in the hydrogen gas Just micrometers thin, it helps This material is used as reinforcement for the plastic blades of wind this material helps make cars expands the possibilities of labor tanks of fuel-cell vehicles.lighter.saving in manufacturing through its use in a roll-to-roll process.Lamion™, ultra-thin glass laminated on resinThis material combines the superb properties of glass and resin. It is addition to anode material, using sodium ions, which has resulted used on train station platform doors thanks to its strength and light in the world’s first all-solid-state sodium-ion secondary battery. The weight.Test charging of a smartphone using the sodium-ion batteryAll-solid-state sodium-ion secondary battery (under development)We have newly developed a glass-ceramic cathode material, in battery’s use of sodium, which is a cheap and abundant resource, and its high stability, offer practical-level performance and great promise for the future. The product is under development and we hope to commercialize it as soon as possible.Lumiphous™, phosphor-glass compositeThis wavelength-converting material helps expand the range of applications for energy-saving LED lighting.Reducing environmental impactHigh-efficiency deep UV transmitting glassUsed for LED antiseptic lamps, this glass can contribute to the replacement of antiseptic lamps that use environmentally harmful mercury.11Corporate GovernanceDiversity and InclusionEnvironment Percentage of Female Employees and Female Leaders (The Company)Under our Women’s Empowerment Project we hold events for female Percentage of Female Employees and Female Leaders employees to exchange information and opinions with each other and with staff at other firms. We are also working to nurture female leaders for positions in management.Percentage of female employeesPercentage of female leadersPercentage offemale leaders：Number of female leaders Number of female employees13.68.8(%)16128401718192021Note: A female leader is a female employee who oversees and manages subordinates. Support for Raising the Next GenerationIn February 2019, we received Platinum Kurumin accreditation under the Act on Advancement of Measures to Support Raising Next-Generation Children in Japan and have continued providing such support. Under our Sixth Action Plan (2018–2021), we implemented measures encouraging male employees to take childcare leave and employees to take annual paid leave, and expanded our system to accommodate different working styles. Our Seventh Action Plan went into effect in April 2021, aiming to build a pleasant working environment that enables all employees to achieve a healthy balance in their work and home life. 7th Action Plan (Outline and Implementation)(April 1, 2021 to December 31, 2023)■Encouragement of male employees to participate in childcare■Work-style reforms to create a workplace that encourages personnel diversityImplemented: April 1, 2021 to December 31, 2021■Childcare leaveWomen Utilization rate: 100% (1/1)MenUtilization rate: 31.0% (9/29)■System to enable diverse working styles, reduction of overtime work, promotion of use of paid leave· Promotion of 5 consecutive days of leave taken twice a year (ongoing)· Expansion of workplaces eligible for flextime· Review of an easier-to-use work-from-home system12Corporate GovernanceDiversity and InclusionEnvironment Human Rights InitiativesIn line with the spirit of our Corporate Philosophy Structure, respect for human rights are set forth in our Code of Conduct and Principles of Activities. Led by our committee on human rights issues, we perform human rights education and participate in and dispatch executives to projects run by local governments and external groups. Our Company is a board member of the Shiga Prefecture Human Rights Issues Liaison Committee. Based in Shiga Prefecture, where our main operations are located, this committee allows us to play a leading role in promoting human rights in the region.Organization Chart of the Committee on Human Rights IssuesHeadquartersOtsu BranchMake-up of Headquartersand Area BranchesTakatsukiBranchNotogawaBranchTokyo BranchOsaka BranchHead:Executive Officer in charge of Human ResourcesCommittee members:Representatives of each area branchBranch head:Head of area branchCommittee members:Heads of departments of area branches and female committee memberssretrauqdaeHsehcnarB aerAHuman rights education Health and Productivity ManagementSince we believe that improving the health of all employees leads to corporate growth, we are developing health and safety activities based on health and productivity management. We are also implementing work-style reforms. We have established key performance indicators (KPIs) for mental and physical health, and are rolling out activities, education, and other initiatives aimed at improving the health of employees in each area. One initiative is a total ban on smoking in all plants and sales headquarters in Japan starting in fiscal 2021.Mental and Physical Health KPIsPhysical healthPercentage with BMI of 25 or more2020 34.5%　　2022 28.0%Mental healthPercentage suffering from high stressAverage for past 3 years 20.3%　　2022 16.0%The Company and our Health Insurance Society were both certified in the 2022 Certified Health and Productivity Management Outstanding Organizations Recognition Program. The selections for certification are made jointly by the Ministry of Economy, Trade and Industry and the Nippon Kenko Kaigi. This certification system recognizes companies that engage in strategic health and productivity management for their employees. This marks our fourth consecutive certification.13Corporate GovernanceDiversity and InclusionEnvironment Health and SafetyRegarding health and safety, our Principles of Activities state that “We put safety first in everything we do, and we abide by all rules and regulations regarding health and safety.” Under our company-wide health and safety Industrial accident frequency rate (the Company)0.42program, our health and productivity management philosophy forms the Organization Chart of Health and Safety for Each Areabasis for an action policy aimed in part at maintaining and improving the mental and physical health of each employee. This allows us to create a Health and Safety Committeevibrant working environment that increases the creativity and productivity • General health and safety manager• Safety manager • Health manager• Industrial physician • Health and Safety Committee membersof the entire corporation.In addition to periodic workplace patrols, we also implement educational awareness campaigns, hazard prediction (kiken yochi) activities, and information sharing among all operational sites both in and outside Japan, so that we can increase awareness of health and safety issues and achieve our zero-accident benchmark. Furthermore, for all employees we have an EAP (Employee Assistance Program) and conduct stress checks as part of our measures concerned with mental health.In fiscal 2021, there was one employee accident at the Company resulting in lost workdays. This has brought into focus issues that we will incorporate into the health and safety initiatives we implement in fiscal 2022 and afterward in order to ensure we remain accident-free.Accident PreventionConference• Affiliates• Subcontractors• SecretariatHealth and SafetyPromotion Committee• Health and SafetyPromotion CommitteemembersSpecialtysub-committees• Health and SafetyPromotion CommitteemembersEach workplace• Safety manager• Health manager• Health and SafetyPromotionCommitteemembers• Operation chief Work-style ReformsWe started promoting work-style reforms in 2017. By eliminating unnecessary and duplicated work through task inventory checks and maximizing use of IT, we have improved efficiency. These efforts have enabled us to reduce overtime work and increase the taking of paid leave. The benefits of these efforts have been returned to our employees via an expanded welfare program and other ways.Number of Paid Leave Days TakenDays TakenPercentage of Days TakenFiscal 202115.966%Main Initiatives■Task inventory checks■Conference reforms (shorter, etc.)■Active use of IT■5 consecutive days of leave taken twice a year■Full implementation of no-overtime days■ Establishment of a new work-from-home system■ Establishment of a new return-to-work system■Expansion of workplaces eligible for flextime■Provision of child-rearing and nursing care-related information■Work-style reform seminars* New initiatives (from 2022)■Expansion of work-from-home system■Expansion of workplaces eligible for flextime■System revision to align with revision to the Child Care and Family Care Leave Act■Conducting of employee awareness survey14Corporate GovernanceDiversity and InclusionEnvironment Human Resource DevelopmentIn order to attain our goal of being the world’s leading manufacturer of special glass, we need to have human resources capable of performing at a world-class level in all areas. We help our employees to better themselves by offering them a range of study opportunities, such as on-the-job training, level-specific training, global human resource training, skills training, and self-development programs that include acquiring industry We will continue to provide our employees with more robust training, which will help them get to that next level.certification.Training ProgramsLevelBy levelCareer developmentLanguage studyBy job categoryBy skill/purposeSelf-developmentOutside trainingDirectorDirector trainingExecutiveExecutive trainingManagerManager trainingSecondary evaluator trainingPrimary evaluator trainingNew appointee evaluator trainingManagerial/Technical courseGeneral courseSkills/technical courseMiddle-career employee – Young employeeMiddle-career employee10th-year trainingYoung employee5th-year trainingYoung employee3rd-year trainingOJTOJTYoung employee3rd-year trainingilignnart tnempoeved reerac dna nap elfiLManagerial/Technical courseGeneral courseSkills/technical courseReview training after first year on the jobNew employeeOJTOJTReview training after first year on the jobTechnicalPractical training at assigned postAdministrativePractical training at assigned post and overseasPractical training in shift workGroup training upon joining companyiignnart noitisop seaSliignnart hsilgnE ssensubi lacitcarp *PCGCompliance trainingHuman rights trainingElectric information security seminarsAccounting seminarsIntellectual property seminarsAI/IoT seminarsOccupational health and safety seminars (mental health, other)Course on “The Unlimited Possibilities of Glass”ISOSmall group activities on the manufacturing flooriesenhC/hsillgnE ni sessac gnneve :egaugnaLimetsys noitisuqca noitaciifilauQignnraeL-e :gnnrael ecnatsDiimetsys snoitacifilauq laciiffOisranmes edstuOi* Global Communications Program15Corporate GovernanceDiversity and InclusionEnvironment Corporate Information■ Corporate ProfileFoundedDecember 1, 1949Plants (in Japan) Company NameNippon Electric Glass Co., Ltd.Head Office 7-1, Seiran 2-chome, Otsu, Shiga 520-8639, Japan Tel: +81-77-537-1700 Fax: +81-77-534-4967Sales Headquarters (Osaka) 10F, Sumitomo Seimei Shin-Osaka Kita Bldg., 1-14, Miyahara 4-chome, Yodogawa-ku, Osaka 532-0003, Japan Tel: +81-6-6399-2711 Fax: +81-6-6399-2731(Tokyo)9F, Shinagawa Grand Central Tower, 16-4, Konan 2-chome, Minato-ku, Tokyo 108-0075, Japan Tel: +81-3-5460-2510 Fax: +81-3-5460-2525Otsu, Shiga-Takatsuki, Notogawa, Precision Glass CenterCapital32,155 million yenNumber of Employees 6,251 (consolidated, as of December 31, 2021)Stock Exchange ListingsTokyo Stock Exchange (Prime Market)Stock CodeFiscal Year5214January 1 to December 31 of each yearOrdinary General Meeting of ShareholdersHeld each year in March Transfer Agent for Common StockSumitomo Mitsui Trust Bank, LimitedPaju Electric Glass Co., Ltd. (South Korea)Nippon Electric Glass (Korea) Co., Ltd. (South Korea)Techneglas LLC (U.S.A.)●Manufacturing facilities●Sales officesNippon Electric Glass America, Inc. (U.S.A.)AsiaU.S.A.Electric Glass Fiber America, LLC (U.S.A.)Nippon Electric Glass Co., Ltd.JapanNippon Electric Glass Taiwan Co., Ltd. (Taiwan)Osaka Office & Sales HeadquartersHead Office and Otsu PlantNippon Electric Glass (Malaysia) Sdn. Bhd. (Malaysia)Tokyo Office & Sales HeadquartersShiga-Takatsuki PlantNotogawa PlantPrecision Glass Center■ Global OperationsElectric Glass Fiber UK, Ltd. (U.K.)Electric Glass Fiber NL, B.V. (The Netherlands)EuropeElectric Glass (Korea) Co., Ltd. (South Korea)Nippon Electric Glass Europe GmbH (Germany)Electric Glass (Nanjing) Co., Ltd. (China)Electric Glass (Shanghai) Co., Ltd. (China)Electric Glass (Xiamen) Co., Ltd. (China)Electric Glass (Guangzhou) Co., Ltd. (China) https://www.neg.co.jp/en/company/■ Web Directory● Company● Top Message● Corporate Philosophy● Corporate Governance● Locations● Investor Relations https://www.neg.co.jp/en/ir/● Financial Highlights● IR Calendar● IR Library● Stock Information● CSR https://www.neg.co.jp/en/csr/● Our Way of Thinking on CSR● The three priority themes and main activities of CSR16