Eight Non-Financial Programs

• Our Road Map
• Materiality
• Eight Non-Financial Programs
• Communication with Stakeholders

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	Carbon Neutral ProgramⅠ Carbon Neutral ProgramⅡ Zero Waste Program Sustainable Water Program	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	Safety First Program Quality Reliability Program Talent Diversity Program	Reduction in lost-time injury rate, etc. Reduction in number of claims about products, offerings and applications Utilization of diverse talent
G	Compliance Penetration Program	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.

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.

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.

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.

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 121 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	1,474	1,407	46
	[0/20]	[0/20]	[8/20]	[11/20]	[1/20]
United States	997	2,028	1,979	820	2,123
	[6/49]	[11/49]	[9/49]	[8/49]	[15/49]
Europe	3,816	0	6,013	0	15,859
	[8/30]	[0/30]	[8/30]	[0/30]	[14/30]
Asia and Oceania	906	68	266	517	1,580
	[7/20]	[1/20]	[2/20]	[6/20]	[4/20]
Thermos	0	0	48	0	120
	[0/2]	[0/2]	[1/2]	[0/2]	[1/2]
Total	5,719	2,096	9,780	2,744	19,728
	[21/121]	[12/121]	[28/121]	[25/121]	[35/121]

• Data as of FYE2024
• 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 ProgramCultivating a culture of safety

Aim for world-class safety in the industrial gases industry

As a group that handles high-pressure gases, safety is the foundation of our corporate existence. Guided by the mindset that “selling gases is commensurate with selling safety,” we are dedicated to further promoting safety and ensuring a safe and reliable supply of gases. As a Group KPI, we target a lost-time injury rate (number of lost-time injuries per million work hours) of 1.6* or lower, and strive to be a global leader in safety.

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

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

As a corporate group dealing mainly in industrial gases, we consider our unwavering quality commitment to be the stable supply of products that underpin a range of industries, and that because our product is an invisible gas, reliability is an essential quality that we must provide. We will promote a culture that emphasizes quality by keeping our important promises to 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 took measures to automate the sending of analysis data at our electronic materials specialty gas plant and promoted the introduction of quality control automation equipment at our chemical production plant. Furthermore, we continued our quality audit program* that began in FYE2023 and 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.

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 (FYE2024)

99.4％（100% completion rate as of the end of June 2024）

Region	Main training and themes
Japan	Explanation of compliance, harassment prevention, respect for human rights, observation of antimonopoly laws, and whistleblowing
North America	Code of Conduct, employee core competency (workplace ethics and compliance initiatives), and harassment prevention
Europe	Code of Conduct
Southeast Asia and India	Code of Conduct, explanation of compliance, bribery and corruption prevention, and whistleblowing
East Asia	Code of Conduct, workplace harassment, conflict of interest, corruption prevention, personal data protection, and whistleblowing
Australia	Code of Conduct, awareness of fraud, workplace bullying, harassment, and discrimination
Taiwan	Code of Conduct, ensuring a respective workplace (harassment), and personal information protection