Briefing on ESG
Development of Robust Financial and Non-financial Measurement Methodologies for Sustainable Growth
NEC
Executive Vice President and CFO
Osamu Fujikawa
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© NEC Corporation 2021
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NEC Group Internal Use Only
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Purpose
NEC creates the social values of safety, security, fairness and efficiency to promote a more sustainable world where everyone has the chance to reach their full potential.
Strategy
EBITDA Growth rate: 9% Annual average
NEC's growth model
"Maximizing long-term profit" and "optimizing short-term profit"
Non-financial measurement
methodologies for sustainable growth
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© NEC Corporation 2021
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NEC Group Internal Use Only
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Culture
50% Engagement score
Transformation of People and Culture
Establishment of Business Infrastructure
Creation of a Shared Vision for
a Brighter Future with Customers
Continuously incorporate ESG indexes as indicators of risk
minimization and value maximization initiatives
Key themes (Materiality)
Climate change (Decarbonization)
Security
AI & human rights Diverse Human resources
Corporate governance Supply chain sustainability Compliance
Main initiatives
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Acceleration of environmental management toward achievement of the SBT*2 1.5 degrees by 2030
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Contribution to CO2 reduction through customer DX
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Development of human resources in advanced security to handle social infrastructure
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AI provision and utilization prioritizing respect for human rights
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Further improvement of transparency of corporate governance
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Strengthening of collaboration with suppliers from a human rights/environmental perspective
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Eradication of serious compliance incidents
FY2025*1 KPIs
1. 33.6% reduction*3 (Compared to FY2017)
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Doubling of internationally certified personnel
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Incorporated initiatives based on the AI and Human Rights Principles
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Suppliers agreeing to
the procurement guideline: 75%*4
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No. of serious incidents: 0
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*1 Fiscal year ending March 2026 *2 Science-based targets
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*3 Scopes 1 and 2
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*4 Ratio based on the procurement amount
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© NEC Corporation 2021
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Further reinforce initiatives in non-financial capitals
that contribute to financial performance
Dow Jones Sustainability Indices
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FTSE4Good Index Series
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MSCI ESG Leaders Indexes
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(World, Asia Pacific)
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Develop resilient financial measurement methodologies
from a mid- and long-term perspective
Financial indicators
Result of corporate activities
IMPACT
Initiatives in
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non-financial capitals
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Improvement / enhancement
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Manufacturing Intellectual
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Human Natural Social & relationships
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© NEC Corporation 2021
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NEC Group Internal Use Only
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