Continuing to Evolve ESG Management
In the medium-term management plan, "Staying Ahead 2022 with Digitalization and Green," announced in March 2018, the NYK Group clearly stated its intention to integrate ESG principles with management strategies. In pursuing our goal of becoming a Sustainable Solution Provider that is essential to both society and industry, we will begin by having every Group employee use ESG yardsticks in addition to existing economic yardsticks. If rigorous analysis based on ESG yardsticks reveals that a business will help the NYK Group to remain essential to society, we will focus management resources-namely, talent, assets, investments, and data-on these businesses over the long term. We are confident that this approach will enable growth in the Group's corporate value by differentiating our existing businesses, creating new business fields, enhancing our brand, and heightening employees' job satisfaction and pride.
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Framework for Promoting ESG Management
To determine Groupwide policies on ESG management, we have established the ESG Management Committee, which is chaired by the president. In addition to the representative executive officers of each headquarters, the committee's members include an external expert. The committee deliberates and discusses ESG management agenda items from a Groupwide perspective and reports the details to the Management Meeting and the Board of Directors.
Under the ESG Management Committee, we have established the Sustainability Initiatives Subcommittee*1 and the UN Global Compact Promotion Subcommittee,*2 both of which conduct preliminary discussions and then submit proposals to the committee.
Further, ESG factors are considered in the deliberations of the Nomination Advisory Committee and the Compensation Advisory Committee. Moreover, the executive officer in charge of ESG management promotion or the general manager of the ESG Management Promotion Group participate in the Management Meeting, the Investment and Credit Council,*3 the R&D Committee,*4 and other important meetings. Also, we have established a system for reflecting ESG factors in decisions on individual projects.
- *1Sustainability Initiatives Subcommittee
Tasked with incorporating into the Group's social contribution activities an emphasis on the development of new businesses that address social issues, this subcommittee holds preliminary discussions on specific new initiatives that contribute to the sustainability of society through investments and loans
- *2UN Global Compact Promotion Subcommittee
The UN Global Compact Promotion Subcommittee was created by reorganizing the former Global Compact Promotion Committee in fiscal 2022. The purpose of the subcommittee is to promote the United Nations Global Compact and to establish systems based on it in the Company and its Group companies. Through global human resource surveys as well as processes for human rights due diligence, the subcommittee investigates business execution and matters that may violate the United Nations Global Compact, confirms the facts, and then discusses and determines any corrective measures as required
- *3Investment and Credit Council
Analyzes and evaluates the profitability, risks, and other matters related to specific investments, loans, and credit provision conducted by the Company and its Group companies
- *4R&D Committee
Deliberates on R&D projects related to technology development and verification tests in light of social trends and technical opinions
Framework for Promoting ESG Management (As of April 1, 2022)
Main Agenda Items of the ESG Management Committee
The ESG Management Approach Spreading Groupwide
ESG management has begun to steadily spread not only in the Company but also throughout the entire NYK Group. This change has inspired multiple Group companies in Japan and overseas to take the initiative in advancing ESG management initiatives.
In fact, NYK is strengthening coordination with Group companies. In addition to in-person discussions through regular meetings of domestic Group company presidents, the Company maintains good communication channels between the head office and overseas Group companies as well as among overseas Group companies, mainly through utilization of the Regional Management Offices established at business sites in the Americas, Europe, East Asia, and South Asia. Moreover, as a result of the widely changing global business environment, NYK has established region heads and country heads as new positions to deepen the NYK Group's regional strategies and to more flexibly craft business activities within the regions in April 2022.
Conducting business globally, the NYK Group comprises Group companies with a variety of different business lines and scales in Japan and overseas. Going forward, regardless of business lines and scales, departments in charge at the head office and Group companies will continue collaborating closely to spread ESG management throughout the entire Group.
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Initiatives for Promoting ESG Management Integration
The NYK Group will create a virtuous cycle in which employees adopt a long-term perspective and-with help of ESG yardsticks-address social issues through the differentiation of existing businesses, the expansion of new business fields, and investments. To provide foundations for initiatives, we have assigned ESG Navigators to each head office department. ESG Navigators act as catalysts and communicate the policies of the senior management team to these departments. In fiscal 2022, we are further extending the scope of ESG Navigators' activities to encompass the entire Group in Japan and overseas.
ESG Navigator System
ESG Navigators are responsible for advancing ESG management by supporting both top-down and bottom-up ESG initiatives in each department. Currently, 67 ESG Navigators, appointed by the general managers of departments, offices, and branches, are active in all 48 head office departments. We have borrowed the term “navigator” from the world of shipping, and we use the term in the sense of a second officer who is the chief navigator. An important task of the chief navigator (second officer) is to formulate voyage plans. In consultation with the captain, the chief navigator determines the route that the ship should take. Further, the chief navigator plays a central role in gathering and summarizing feedback from all crew members. We have chosen the title “ESG Navigator” because we want these personnel to advance ESG management at our offices by playing a role comparable with that of a chief navigator on board a ship. Specifically, ESG Navigators perform three key roles: discussing with the general managers of departments and offices how to establish routes that will take the departments to their target profiles; sharing the management team's ideas with all department members; and leading uninhibited exchanges of opinions among junior employees and vertically and laterally providing feedback from department members to other departments.
ESG Navigator Dialogues
In fiscal 2021, approximately 900 employees participated in 10 ESG Navigator Dialogues, which facilitate in-house information-sharing and provide opportunity for study sessions. The goals of these dialogues are to share examples of departments that have made good use of the ESG approach and to provide sustainability-related updates on social trends in general as well as on specialized knowledge.
In fiscal 2022, this dialogue continued to be held and included information-sharing on decarbonization and efforts to strengthen governance.
ESG Navigator Meetings
ESG navigators from each department gather and participate in free and open discussions about various ESG-related topics. Participants are divided into several small groups and make use of interactive communication to share issues and exchange opinions related to ESG management. This meeting accelerates promotion of ESG management integration among NYK Group through ESG Navigators.
Examples of Activities to Disseminate ESG Management
With the aim of disseminating ESG management, we are implementing numerous initiatives targeting Group employees in Japan and overseas.
|Details||Target||Time||Number of participants|
|Japan||Townhall meetings with the president||For employees of Group companies in Japan and overseas||2022/2||1,101 (online) + 176 (archive)|
|In-house briefings on NYK Report 2021(integrated report)||For employees of Group companies in Japan and overseas||2021/10-11||387 in total|
|Two keynote lectures by Daigo Shimizu, Goldman Sachs Japan Co., Ltd.||For employees of Group companies in Japan and overseas||2021/7, 12||601 in total|
|Townhall meetings with the executive officer in charge about the NYK Group ESG Story 2022||For employees of Group companies in Japan and overseas||2022/3||Approx. 600|
|Overseas||Townhall meetings with the president in North America||For employees of Group companies in the Americas||2022/4||Approx. 250|
|Meetings at an assembly of Filipino crew members||For crew members (mainly those in quarantine before boarding ships), their families, and related NYK Group personnel||2021/7||Approx. 1,000|