Materiality (Key issues)

Of the 13 items extracted with the purposes of the sustainable growth of the company and the realization of a sustainable society through ESG initiatives and contribution to the SDGs for global environmental and social issues, we specified 11 items as Materiality (Key issues) which Nissan Shatai should give top priority to tackling.
Based on the concept of double materiality, we organized a matrix on the two axes of “the impact on the environment and society” and “the importance for the corporate value of our own company.”

“the impact on the environment and society” and “the importance for the corporate value of our own company.”

“the impact on the environment and society” and “the importance for the corporate value of our own company.”

The process for determining Materiality (Key issues)

The process for determining Materiality (Key issues)

The process for determining Materiality (Key issues)

Initiatives for materiality (key issues) and SDGs goals, and risks and opportunities

category Materiality Action items Initiative
Policy
Goals of
contri-
buting
SDGs
Main risks Main opportunities
E)Envi-
ronmental
Response to climate change Carbon neutral In addition to the steady execution of existing items, such as renewals to energy-saving facilities, etc., we will promote various activities for realization of carbon neutral by 2050, including the deployment of clean energy, promotion of technology development to respond to CASE, etc. SDGs No 7
SDGs No 11
SDGs No 13
SDGs No 15
SDGs No 17
Plant disaster accompanying abnormal weather related to hotter temperatures, increased natural disasters due to climate change, cost increases due to regulatory strengthening, increase in energy costs due to deployment and expansion of a carbon tax Introduction of renewable energy, development of low-carbon technology
Clean exhaust gas
Electrification of cars
Renewable energy utilization
Pursuit of energy efficiency
Resources management Promotion of 3Rs(reduce, reuse, recycle) approach Promotion of vehicle development based on the 3Rs.
Reduction of water utilization for manufacturing based on the Nissan Green Program
SDGs No 6
SDGs No 12
SDGs No 14
SDGs No 15
SDGs No 17
Rise in raw material prices, supply anxiety due to resource depletion, strengthening of environmental regulations Promotion of resource efficiency, development of recycling technology, sustainable resource procurement
Effective utilization of water resources
E)Envi-
ronmental/
S)Social
Supply chain management Developing a relationship with suppliers based on mutual trust and benefit SDGs No 8
SDGs No 9
SDGs No 12
Severing of the supply chain by abnormal weather, issues with suppliers’ working environments Improvement in supply chain transparency, sustainable procurement, strengthening of cooperative relationships with suppliers
Product quality Development and production divisions are working together in order to construct a “high quality guarantee process.” SDGs No 9
SDGs No 12
Recalls due to quality issues, decline in brand image, customer attrition Improvement in brand value through quality enhancement, improvement in customer satisfaction, increase in repeat customers
S)Social Diversity, equity & inclusion With a basic policy of “being a company where all workers can fully utilize their tarent,” we promote diversity, fairness, and acceptability SDGs No 5
SDGs No 8
SDGs No 10
Human resource outflow due to lack of diversity, legal issues, social criticism Innovation through utilization of diverse human resources, improvement in corporate culture, improvement in brand image
Human Rights We respect the human rights of all stakeholders and do not condone any discrimination.
We prevent forced labor and child labor in the supply chain
SDGs No 5
SDGs No 8
SDGs No 10
Legal issues due to human rights violations, decline in brand image, social criticism Improvement in corporate evaluation through respect for human rights, strengthening of competitiveness in global markets, improvement in brand image
Human capital Human Resource Development We have developed a personnel evaluation system and training operations aimed at our employees and company growing together
Enhancement of employee satisfaction through the improvement of problem solutions
SDGs No 4
SDGs No 8
Human resource outflow, resource shortage, skill gaps, decline in employee morale Improvement in employee skills through education and training, enhanced employee engagement, increased employee motivation
Workplace environment improvements
Promotion of work-life balance
Health and safety Health management Promotion of health maintenance and enhancement activities based on the corporate policy that “Only people with sound mind and body are able to work with vigor, peace of mind, and integrity”
Promotion of improvement of both hard and soft aspects of the workplace environment aimed at a “safe and people-friendly workplace”
SDGs No 3 Industrial accidents, productivity decline due to health issues, legal issues Enhancement of productivity through provision of healthy workplace environment, improved employee satisfaction, enhanced corporate evaluation
Occupational Safety and Health
Safety of products Safety enhancement of commercial vehicles, premium cars, specially equipped vehicles, and the support business through the application of cutting-edge technologies and responses to social requirements SDGs No 3
SDGs No 9
SDGs No 11
Legal issues, decline in brand image, decline in social credibility Gaining of customer trust through provision of highly safe products, enhanced brand value, increase in repeat customers
G)Gover-
nance
Corporate Governance Strengthen corporate governance Effective implementation of the Corporate Governance Code and establishment of internal control systems
Enhancement of security measures based on the business continuity plan (BCP)
SDGs No 8
SDGs No 11
SDGs No 13
SDGs No 16
Management instability due to governance dysfunction, decline in investor confidence, decline in corporate value Stable management through transparent and efficient governance, gained investor trust, enhanced corporate value
Strengthen Risk Management
Compliance Development and dissemination of a Code of Conduct, quick identification and rectification of problems using an internal and external hotline system, determination of solutions in the Compliance
Committee and implementation of the solutions
SDGs No 16 Penalties due to legal violations and their responses, decline in corporate value, social criticism Enhancement of corporate value through legal compliance, strengthened legal compliance functions, maintained and gained social trust

Value Creation Process

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