CSR Activities

The Nikke Group continues to make proactive efforts
for ESG aiming to sustainably improve our corporate value.

Environment

The Nikke Group prioritizes global environmental conservation among business management matters
so as to hand down the rich natural environment to future generations.

Mid-term plan for environmental conservation

Targets and results for FY 2016

Purpose Description FY 2016 target FY 2016 result Self-evaluation
Saving energy Specific energy consumption per unit of factory shipping price compared with that in FY 2015 No more than 99.0% 91.6%
Reducing CO2 emissions Specific CO2 emissions per unit of factory shipping price compared with that in FY 2015 No more than 99.0% 89.8%
Reducing final disposal volume of waste Specific final disposal volume per unit of factory shipping price compared with that in FY 2015 No more than 99.0% 101.5%

Self-evaluation criteria

Achieved the goal, well exceeding the target Achieved the goal
Couldn’t achieve the goal, but close Couldn’t improve to achieve the goal

Target sites for the report

Domestic Manufacturing Department:

 ■ Three manufacturing sections (Innami Mill / Ichinomiya Mill / Gifu Mill)
 ● Offices (eight locations)
Eight domestic group companies (Ambic Co., Ltd., Gosen Co., Ltd., Kanaya Knit Co., Ltd., Bisyuu Wool Co., Ltd, Taisei Wool Textile Co., Ltd., Tsukineko Co., Ltd., Nikke-Okoshi Dyeing Co., Ltd . and Hokuren Co., Ltd.)

Shopping Center Section:

Two shopping centers (Nikke Parktown and Nikke Colton Plaza)

Total energy consumption and specific consumption

CO2 emissions and specific emissions

Note: The CO2 emissions factor from FY 2015 was used to calculate the actual FY 2016 value because the factor from FY 2016 hadn’t been published yet. Also, the actual value from FY 2015 is different from that in the data reported last year because the calculations were corrected after the FY 2015 factor was published.

Waste volume / recycled volume / final disposal volume and specific final disposal volume

Social

The Nikke Group will enrich people’s lives and minds, and create products and services that contribute to local communities.

CSR fulfilled through business activities

CSR fulfilled through business activities

Practice of corporate philosophy

Our founder Seibe Kawanishi had a strong belief, which was Itsu motte kore wo tsuranuku, meaning “Once I set a goal, I will never give up,” and continued bold efforts in an aggressive and prudent manner while valuing the spirit of working and working to the end.
We have built 120 years of tradition by continuously generating innovations.Having this spirit, which is still alive in our corporate philosophy as one of its pillars, the Nikke Group continues developing challengers.

Summary of capital investments

The Nikke Group (Nikke and consolidated subsidiaries) invests in streamlining and improving productivity by means such as making manufacturing processes more efficient as well as making focused investments in the business fields from which we can expect long-term profit. In this consolidated fiscal year, we invested 5,966 million yen in capital investments (including investments in intangible long-term assets and long-term prepaid expenses), and the descriptions and amounts of the investments by major segment are as below.
As for the Textile & Clothing Materials business, we invested 1,339 million yen in the introduction of manufacturing facilities aiming to improve quality, reduce delivery time, and improve productivity.
As for the Industrial Machinery & Materials business, we invested 494 million yen in newly building an assembly plant for industrial machinery and other measures.
As for the Human & Future Development business, we invested 4,042 million yen in the large-scale renovation of Nikke Parktown (in Kakogawa City, Hyogo Prefecture), as well as investments including those related to real estate development and nursing facilities.
As for the Consumer Goods & Services business, we invested 91 million yen in the introduction of facilities for the business and other measures.

Business model for creating value

The Nikke Group will enrich people’s lives and minds,and create products and services that contribute to local communities.

We have always provided products and services that meet social needs to solve social issues.
Keeping our four businesses as main businesses, we will continue to make efforts to create new value under the three themes of the environment, safety/security, and health/comfort.

Social/community contributions

As a corporate group that is gentle and warm toward people and the planet, we at the Nikke Group believe that good communication with society and people in local communities is fundamental to supporting the smooth operation of our businesses, and therefore wish to help families and local communities. In particular, our activities for building communities and establishing lives through the Human & Future Development business are based in Ichikawa City, in which Koubou Karano Kaze – craft in action is based, which is an outdoor craft exhibition and has been used to provide opportunities to discover/develop new craftspeople, along with our activities for the redevelopment of our former factory site in Kakogawa City. We wish to keep a good relationship with people in Kakogawa City, where our plant was supported by the local people. We aim to build communities and establish lives so that we can develop together with the people in local communities.

Supported art/cultural activity: Koubou Karano Kaze – craft in action, an outdoor craft exhibition
Co-sponsored sports activity: Kakogawa Marathon

Governance

Recognizing the importance of strengthening corporate governance in order to improve our corporate value in a long-term and stable manner, we will secure corporate transparency and aim for operations that can be trusted by diverse stakeholders including shareholders in accordance with our corporate philosophy and corporate principles.

Corporate governance system

1. Board of Directors

The Board of Directors consists of eight directors including three external directors, who are balanced in terms of knowledge, experience, and capabilities as a board and have diversified backgrounds, and holds a meeting every month. Highly independent external directors are appointed, and more than one third of the board members shall be external so that we can expect advice from various perspectives and strengthen the Board’s supervisory function. The Board of Directors recognizes its fiduciary responsibility to shareholders and is responsible for realizing our corporate philosophy and sustainably improving our corporate value by appropriately exercising its authority.

The Board of Directors shall:

  • Develop the environment to enable risk-taking, and support the executive team in making prompt and decisive decisions in accordance with our corporate philosophy “meeting every challenge with passion and pride.”
  • Make decisions on important matters stipulated in laws and regulations, the articles of incorporation, and the Board's rules including its bylaws, and supervise directors’ execution of operations.
  • Entrust the executive team with decision making on matters except those described in the preceding item so as to improve its agility and flexibility in executing operations. Note that the Board of Directors may entrust the executive team with making decisions on the execution of operations related even to important matters from the viewpoint of agility, flexibility, and expertise.
  • Recognize that the goals stipulated in a mid-term business plan are part of the Board’s commitments to shareholders, and make every effort to achieve such goals. If any goal is not achieved, the Board shall analyze the causes and responses, explain them to the shareholders, and then incorporate its analysis into subsequent plans.
  • Develop an internal control system, and supervise its operation to ensure that the system is being effectively operated by cooperating with the Internal Auditor Department.
  • Develop and establish a reporting system to Audit and Supervisory Board members so as to improve the effectiveness of audits.

2. Audit and Supervisory Board

The Audit and Supervisory Board consists of four members including two external members, and holds a meeting every month. Highly independent external auditors have been appointed, and they conduct audits in accordance with their independence and appropriately give their opinions. The Audit and Supervisory Board recognizes its fiduciary responsibility to shareholders, and secures the soundness of the Group, aiming for the sustainable improvement of corporate value by making appropriate judgments from an independent, objective viewpoint.

The Audit and Supervisory Board shall:

  • Monitor the condition of corporate governance and the status of operations, and conduct audits of the daily activities of the executive team including the directors.
  • The Audit and Supervisory Board members shall audit the Board of Directors’ decision-making process and the directors’ execution of operations by means of participating in the Board of Directors’ meetings and other important meetings, hearing from directors, and inspecting documents such as important approval documents.

3. Advisory Board

We have established the Advisory Board, of which at least half of the members are independent and external. The Advisory Board shall receive reports regarding the appointment and remuneration of officers and matters that are essential to company management, and provide advice.

  • The Advisory Board consists of six board members (including three external members).
  • The Board shall hold regular meetings twice a year and special meetings when necessary. The purpose of the meetings is to provide reference assistance on management through a free exchange of ideas.

4. Group Management Conference

The Group Management Conference consists of executive officers, full-time Audit and Supervisory Board members, division managers, and division managers from the Group headquarters, and it holds meetings twice or more per month for the purpose of leading the Chief Executive Officer to make effective judgements by considering each matter from various angles through discussions when the CEO is to make important decisions regarding his/her execution of operations.

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