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 (transport). The NYK Group's value lies in helping social development by providing safe and dependable transport that meets the needs of society.

Exploring business opportunities through safety and environmental initiatives

As a shipping company, NYK recognizes that safety and the environment are crucial issues for management. In fact, the NYK Group has been earnestly carrying out related initiatives for many years. Although measures for ensuring safety and protecting the environment result in expenses, we believe they also open up opportunities for business, and recognize them as positive investments for raising competitiveness.
In order to further enhance our safety and environmental measures, we are currently focusing on innovations based on the latest information technology (IT) applications, such as the Internet of Things (IoT) and big data. We set up an information platform in 2008 that uses IoT to collect shipping data, which the system can share in real time at sea and on land. By analyzing the data and optimizing ship operations, we can reduce fuel consumption and lower the environmental burden of shipping operations. Based on operational data, we can predict various kinds of mechanical breakdowns of engines and other equipment on vessels, and study ways for preventing such breakdowns. Downtime occurs when a vessel must suspend service due to factors like collisions, running a ground, and mechanical problems. In the future, by making greater use of the data analyses, we expect to reduce downtime even more because it will be possible to incorporate warnings and predictions of mechanical breakdowns. Keeping a ship in continuous operation is not only beneficial economically; it also benefits the environment because it eliminates the need for ships to operate at higher speeds in order to return to service after being laid up, which results in greater CO2 emissions. Therefore, we intend to actively continue with this initiative.
Obviously, the NYK Group alone cannot solve the safety and environmental issues confronting society today. Nevertheless, we are proactively encouraging the shipping industry as a whole to promote innovations using shipping data.

Promoting a venturesome corporate culture while developing outstanding human resources worldwide

For the NYK Group to create new businesses and reform its existing shipping businesses, the most important operational resources are its people. Based on the concept of "creative solutions," a key theme of our medium-term management plan, we have been helping employees expand their awareness while working to foster a corporate culture that allows each member to demonstrate his or her technical skills, on-site capabilities, and creativity, thereby enabling new businesses to be created and problems to be solved.
For example, in order to motivate members of the Group to try and start new businesses, we established the Creative Solutions Development Fund in 2014, which provides funding for outstanding commercialization plans selected from ideas submitted by group companies. As another example, since April 2015, we have been holding creative solutions workshops as a program for developing mid-career employees into leaders that can drive innovation in the future. Held twice annually for a period of six months, the workshops include lectures by outside experts, training retreats and instruction on how to practically and systematically carry out projects based on actual case studies. In order to ensure safe transport and implement environmental measures at the highest level, it is essential to hire and train highly skilled seafarers. About 90% of seafarers working on vessels operated by the NYK Group are not Japanese nationals. This multinational trend is expected to continue in the future, so it will be necessary for us to consider an appropriate composition of crews by nationality. As part of our efforts to train seafarers, we opened the NYK-TDG Maritime Academy in June 2007 as a mercantile marine academy in a suburb of Manilla in the Philippines. The academy has been contributing to development of the Group's seafarers, and has earned a good reputation in the Philippines for providing educational opportunities and helping create jobs.

Promoting diversity and workplace reforms while aiming for sustainable growth

Around three decades ago, the vast majority of the NYK Group's employees were Japanese. At present, however, among the approximately 50,000 people employed by the Group as office workers and seafarers, about 85% are from a wide range of countries other than Japan. In order to draw on the capabilities of all these employees, we place importance on fairly evaluating and promoting personnel regardless of their nationality or gender. Furthermore, we are proactively promoting career advancement for women, and are also focusing on workplace reforms, including measures for shortening working hours.
At the same time, we have been working to improve compliance, paying close attention to having the NYK Group fully meet the expectations of society. Accordingly, in every region of the world, we are striving to ensure that all members of the Group follow local social norms, respect human rights, and comply with laws and regulations, including antitrust and anti-bribery laws.
People around the world depend on the NYK Group. Therefore, in order to continue being a sustainable corporate enterprise, the Group is placing importance on environmental, social, and governance criteria, while earnestly soliciting the views of a broad range of stakeholders in an effort to meet their expectations. As we undertake these endeavors, we sincerely hope for the ongoing support of all stakeholders going forward.

October 2017

Sign

Tadaaki Naito
President

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