Message from the President

Achieving sustainable societies through monohakobi* with top priority on safety and environment

As a comprehensive global-logistics enterprise offering ocean, land, and air transportation, the NYK Group has a basic philosophy of enriching people’s lives through monohakobi. The NYK Group positions ‘economic responsibility’, ‘environmental responsibility’, and ‘social responsibility’ at the core of business activities because it takes an integrated approach to business management that focuses on maximizing benefits to the Group and society simultaneously. The NYK Group’s value lies in helping society progress by providing transport that meets its current needs.

Meet Customers’ Expectations and Social Responsibilities through Creative Solutions based on Strong Foundations

As president, my vision for the future has two main components. First, I want us to be customers’ first choice because our creativity consistently generates new value. Being able to offer numerous Creative Solutions that impress customers and reinforce our reputation as an innovator contributes to our competitiveness. The second component entails building strong foundations.Recently, vessel commodification has increased in the shipping industry, making it prone to price competition. However, to differentiate us as a shipping company, rigorous, steady efforts to improve the transport quality underpinning our shipping business are essential. For example, we must continue efforts in shipping technology, ship management, vessel construction supervision,and other fundamental areas. This will help us build strong business foundations that are less susceptible to market fluctuations. Customers entrust us with diverse cargos because they have high expectations of the transport quality of not only our shipping business but of the Group as a whole. Further, given that we conduct our business amid nature and on a global scale, we must address environmental issues sincerely. In addition, the capabilities of each employee help us to provide safe, reliable transport.Developing as many personnel as possible to have advanced transport-related skills and expertise will directly boost our competitive strength. In other words, as well as the core area of transport quality improvement, environmental and human capital initiatives are part of the foundations that the NYK Group must enhance. Aiming to garner significant trust from customers and local communities, we will offer high-quality services at competitive prices by continuing to increase our creativity and fundamental strengths.

Securing safety and environmental conservation as one of the most vital management issues

The NYK Group is considering securing safety and environmental conservation as one of the most vital management issues. Ship accidents not only endanger seafarers but also can result in serious environmental pollution (e.g., oil spills).At NYK, we view the training and education of talented seafarers as a crucial component in safety, and to do this we operate a merchant marine academy in the Philippines. In the area of environmental conservation, we work proactively to develop both hardware and software technologies. For instance, we have installed solar power generators on our ships and ballast water systems on our module vessels.Many of these technologies are world firsts. In order to improve fuel consumption efficiency by 15% compared to FY2010 levels by FY2018, we are taking fuel saving measures a step further using navigation big data. Furthermore, in addition to the construction of a LNG bunkering vessel to follow a LNG-fueled tugboat and car carrier with low CO2 emissions, we decided on a plan to enter the LNG-fuel supply business. We are striving to change our business model to a more eco-friendly model, aiming to further reduce CO2 emissions and prevent air pollution.

CSR management strengthening

Recognizing that CSR is the foundation that supports growth strategies, the NYK Group will strengthen its CSR management built on the three keys of “Securing safety and environmental conservation”, “Sound and highly transparent management” and “Workplaces that instill pride”.Sustainably developing “Together with Society” requires that companies build and maintain management structures that are both transparent and efficient. This involves enhancements to internal control, rigorous compliance, and respect for human rights and labor standards. In May 2006, the NYK Group expressed its agreement and support for the United Nations (UN) Global Compact (GC) and incorporated the Ten Principles on human rights, labor standards,environment, and anti-corruption into its CSR Guidelines. As a global group with approximately 50,000 employees worldwide,human rights and labor standards are of the utmost Importance to us. The GC Promotion Committee works to educate domestic and international group companies on the GC principles regarding human rights and labor standards and provides training on the prevention of human rights abuses. In April 2015, we created our Legal & Fair Trade Promotion Group, which has been tasked with building a global system and advancing measures to reinforce rigorous compliance with antitrust law. Corporate solutions to social issues are one of the major themes in ISO 26000, a social responsibility guideline that was published in 2010. The NYK Group continues to work toward more sustainable societies and solutions to problems in all the communities we serve, discussing and collaborating on approaches with all interested stakeholders. We hope that we will continue to enjoy the support of stakeholders around the world,and look forward to the frank and honest opinions and suggestions of all our stakeholders.

April 2015

Sign

Tadaaki Naito
President

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