Eight Non-Financial Programs

Launch of Eight Non-Financial Programs

In our new approach to materiality, Nippon Sanso Holdings specified 24 material issues, including three fundamental preconditions for our existence, namely, respect for human rights, safety and security, and corporate ethics. To address these issues, we have created eight non-financial programs that will run across the entire group.

List of Non-Financial Programs

Non-financial programs Initiative
E
  • Reduce our group's GHG emissions
  • Reduce customer GHG emissions through environmental product offerings and applications
  • Reduction in waste emissions
  • Effective use of water resources
S
  • Reduction in lost-time injury rate, etc.
  • Reduction in number of claims about products, offerings and applications
  • Utilization of diverse talent
G
  • Compliance education and enforcement

Carbon Neutral ProgramⅠReduction of the Group’s GHG emissions

Aiming for carbon neutrality in 2050
Realizing carbon neutrality through technological breakthroughs

Aiming to become carbon neutral by 2050, the NSHD Group aims to reduce its GHG emissions 18% by FYE2026 and 32% by FYE2031. As shown below, our key initiatives to achieve these goals entail the replacement of air separation units (ASUs), the purchase of green electricity certificates, and the introduction of renewable energy.

Further promotion of energy conservation and efficiency of energy use

  1. Replacement of air separation units (ASUs)
  2. Reduction of electricity usage through digital solution technologies
  3. Streamlining of logistics and review of transport

Promotion of the use of renewable energy and green power

  1. Switch to electricity companies with low emissions coefficients
  2. Purchase green power certificates
  3. Introduce renewable energy

Carbon capture and offsets

  1. Promote CO2 capture
  2. Carbon offset through new technology, forest conservation, and tree-planting activities, etc.
  

 
NSHD Group appropriately complies with climate change-related laws and regulations (in Japan, these include the "Act on the Rational Use of Energy and Conversion to Non-Fossil Energy Sources (Energy Conservation Act)" and the "Act on Promotion of Global Warming Countermeasures") and policies through various statutory reports to administrative agencies.

GHG Emission Reduction Targets

FYE2026: 18% reduction  
FYE2031: 32% reduction (Base year: FYE2019) 

Carbon Neutral ProgramⅡReduce customer GHG emissions through environmental product offerings and applications

Through the NSHD Group’s products and services, we aim to achieve a reduction in GHG emissions that exceeds the Group’s own emissions.

The NSHD Group helps customers reduce their GHG emissions through the supply of its products and services. As a goal for helping customers reduce their emissions, the Group is keen to achieve a reduction in GHG emissions that exceed its own emissions.

Environmentally friendly products currently under development

  • Oxygen-enriched combustion in blast furnaces
  • H2 and NH3 combustion in industrial furnaces
  • Carbon capture and utilization
 

Please refer to Sustainability Data on P. 9-10 for a breakdown of environmental products, offerings and applications.

(Lower customer GHG emissions through environmental product offerings and applications) > (Our group GHG emissions) (FYE2026)

Global GHG reduction through our products and technologies 

Zero Waste ProgramReduction in waste emissions

We have set KPIs for our aims of securing water resources based on the regional and business characteristics of each operating company.

Promoting the 3Rs (reduce, reuse, recycle) of waste processing is a requirement of our times. We will set and pursue KPIs for each operating company to reduce waste emissions and landfill volume. For example, in Japan, the Taiyo Nippon Sanso Group will work to halve its industrial waste landfill disposal by FYE2026 comparetd to FYE2019 under its Halve Amount of Landfill Disposal (HALD) initiative that was launched in FYE2022. Nippon Sanso Holdings is making steady progress toward achieving its targets by selling valuable materials in disposed high-pressure gas containers and by thoroughly separating and recycling waste, having achieved a 56% reduction in FYE2025.

 

 

Sustainable Water ProgramEffective use of water resources

We have set KPIs for our aims of securing water resources based on the regional and business characteristics of each operating company.

The NSHD Group strives to reduce water withdrawal by setting KPIs for each operating company in order to more effectively use limited water resources. We surveyed water stress using the Aqueduct water risk evaluation tool developed by the World Resource Institute (WRI) to identify manufacturing plants (ASU, HyCO sites) in high-risk areas. At manufacturing plants in high-risk areas, we are taking steps to increase water recycling and reduce water withdrawal and consumption volumes.

Results of Water Stress Level Survey

The NSHD Group conducts a survey of water stress at all of its production sites in order to apprehend the risks related to use of water resources and facilitate a more effective response to water risks. Using the Aqueduct water risk assessment tool developed by the World Resources Institute, we surveyed water stress at 129 sites, with the following results.

*Water risk category: Baseline water stress
Upper level: Water usage (thousand m3), lower level: Number of production sites

High High-medium Medium Medium-low Low
Japan 0 0 1,456 1,566 46
[0/21] [0/21] [9/21] [11/21] [1/21]
United States 1,018 2,667 1,949 748 1,470
[6/50] [14/50] [8/50] [8/50] [14/50]
Europe 3,770 0 5,707 0 15,104
[9/33] [0/33] [9/33] [0/33] [15/33]
Asia and Oceania 875 113  361  612  1,497
[6/23] [1/23] [5/23] [6/23] [5/23]
Thermos 0 0 61 0 101
[0/2] [0/2] [1/2] [0/2] [1/2]
Total 5,663 2,780 9,534 2,926 18,218
[21/129] [15/129] [32/129] [25/129] [36/129]
  • Data as of FYE2025
  • Water stress survey conducted using Aqueduct water risk assessment tool
  • Reporting boundary: Production sites with ASU, HyCO, or liquid carbon dioxide facilities with annual water withdrawal of 20,000 m3 or more and Thermos 

Safety First ProgramA Security and Safety Culture

Aim for world-class safety in the industrial gases industry

For the NSHD Group, which handles various high-pressure gases, safety forms the foundation of its corporate existence. With the mindset that “selling gas is selling safety,” we have designated the lost time injury rate as an essential safety KPI for maintaining a safe and reliable supply of gases. As a Group KPI, we aim to maintain the lost time injury rate (time lost to injuries per one million working hours) at 1.6* or below. 

*Target 40% reduction of average from FYE2017 to FYE2021 (2.53)

Specific measures to achieve goals

  • Sharing information on workers’ and other accidents and best practices
  • Improve safety capability by using DX, AI, and the IoT
  • Safety education/utilizing the Technical Academy (foster a safety culture and improve sensitivityto danger)
  • Investments in safety

Taiyo Nippon Sanso Corporation also takes the following measures for safety in addition to reducing the lost-time injury frequency rate:

  • Reduce workplace accident rate
  • Reduce the rate of vehicle accidents while transporting products
  • Reduce the number of facility accidents
  • CCPS assessment

The lost time injury rate for FYE2025 decreased year-on-year to 1.85. Over the medium to long term, the rate is basically decreasing, and we will continue making a concentrated effort to prevent the occurrence of occupational accidents.

The above efforts have improved the lost-time injury rate to a level that meets the target.

Lost-time injury rate: 1.6 or lower (FYE2026) 

Quality Reliability ProgramInitiatives for increasing quality and reliability

Instilling corporate awareness of emphasis on quality and enhance quality and reliability of our group's products

Because industrial gases, the NSHD Group’s core products, underpin a wide range of industries, it is imperative that their quality remain uncompromised. Moreover, as industrial gases are invisible, we believe they must be products that customers can trust. We will promote a culture that emphasizes keeping our important promises to quality for customers and strive to further raise awareness among employees. We will also implement a series of initiatives with the aim of increasing quality and reliability by promoting the introduction of LIMS and other automation technologies. In FYE2024, the activities of the Quality Committee (SSG-QC) comprising the NSHD Group’s electronic materials gases manufacturing companies involved sharing best practices to increase customer satisfaction and discussing resolutions to issues. In the TNSC Group, we promoted the introduction of quality control automation equipment at our chemical production plant. Furthermore, we continued our quality audit program* that is being implemented across the entire NSHD Group.
*Each operating company conducts a quality audit of their business sites once every three years based on important audit items set by NSHD.

● Instilling quality-centric culture and improving awareness of employees

  • Quality ethics and compliance education
  • Quality audit program
  • Share information on quality complaints along with measures for remediation and improvement

● Promote the introduction of LIMS and other automation technologies

  • Automation of test, inspection, and analysis recording 

● Increase satisfaction of electronic materials gases customers

  • Increasing customer satisfaction through the activities of the Semiconductor Specialty Gas Quality Committee (SSG-QC)

Talent Diversity ProgramIncrease human resource diversification and engagement

Talent development strategies for sustainable growth

With an eye on sustainable growth, the NSHD Group intends to actively accept people of diverse talents, cultures, and values, and to develop them as “The Gas Professionals.”
We have set KPIs related to empowering women and focus Groupwide efforts to achieve them. We encourage personnel exchanges across regions in order to broaden their perspectives and grow while learning about each other’s different backgrounds.

Major initiatives to achieve KPIs

  • Japan:
    ・Development of female managers and leaders, and awareness reform (sponsorship program, training for aspiring female managers, unconscious bias training)
    ・Opportunities for dialogue to promote D&I (town hall meetings, International Women's Day events)
     
  • United States: First dialogue event featuring female employees held on International Women's Day (March 2025)
  • Europe:
    ・First talk event hosted by WING (Women's Ikigai Nippon Gases), including an International Women's Day live-streamed discussion and internal networking event (FYE2024)
    Provide opportunities for all employees to discover their Ikigai (sense of purpose), while focusing on supporting women
  • Asia and Oceania: Established a Women's Empowerment Promotion Committee. Formulated the SEAI Women's Empowerment Forward Plan by integrating 76 action plans, including KPIs (FYE2024)

Initiatives for personnel exchanges

  • Established task-based global teams that span regions (Examples: Promotion of programs at operating companies for the production of bulk gases and achievement of carbon neutrality and operational excellence Promotion Project)

Rate of female employees FYE2026 ≧ 22% FYE2031 ≧ 25%
Rate of female management posts FYE2026 ≧ 18% FYE2031 ≧ 22%
 

Compliance Penetration ProgramCompliance penetration and enforcement

Compliance training at all operating companies

The NSHD Group positions respect for human rights, safety and security, and corporate ethics as preconditions for its corporate existence. Each operating company offers various compliance training courses aimed at getting employees to expand their awareness of compliance and acquire correct knowledge. With a shared understanding that ensuring all employees take compliance training is the basis for establishing compliance, we have set a 100%* rate of receiving compliance training as one of the non-financial KPIs in our medium-term management plan.
 *Applies to mandatory “main training” for all employees in each region

Compliance training result (FYE2025)

100%

Region Main training and themes
Japan Compliance overview, harassment prevention, respect for human rights, Antimonopoly Act, Subcontractor Act, quality compliance, whistleblowing system
North America Code of Conduct, harassment prevention, quality compliance
Europe Code of Conduct
Southeast Asia and India Code of Conduct, bribery and corruption, compliance guidance
East Asia NSHD Code of Conduct, whistleblowing system, conflicts of interest, personal data protection, corruption prevention, Antimonopoly Act, corporate secrets, Occupational Health and Safety Act, employee handbook, workplace harassment, contract management (case studies)
Australia Code of Conduct, fraud awareness, bullying, harassment, and discrimination in the workplace
Taiwan Code of Conduct, whistleblowing system, power harassment, compliance leadership and commitment

Rate of receiving compliance training: 100% (FYE2026)