NEC : Development of Robust Financial and Non-financial Measurement Methodologies for Sustainable Growth (Osamu Fujikawa, Executive Vice President and CFO)(2,126KB)

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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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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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

E

S

G

Key themes (Materiality)

Climate change (Decarbonization)

Security

AI & human rights Diverse Human resources

Corporate governance Supply chain sustainability Compliance

Main initiatives

1. Acceleration of environmental management toward achievement of the SBT*2 1.5 degrees by 2030
2. Contribution to CO2 reduction through customer DX

1. Development of human resources in advanced security to handle social infrastructure
2. AI provision and utilization prioritizing respect for human rights

1. Further improvement of transparency of corporate governance
2. Strengthening of collaboration with suppliers from a human rights/environmental perspective
3. Eradication of serious compliance incidents

FY2025*1 KPIs

1. 33.6% reduction*3 (Compared to FY2017)

1. Doubling of internationally certified personnel
2. Incorporated initiatives based on the AI and Human Rights Principles

1. Suppliers agreeing to
   the procurement guideline: 75%*4
2. No. of serious incidents: 0

*1 Fiscal year ending March 2026 *2 Science-based targets	*3 Scopes 1 and 2	*4 Ratio based on the procurement amount
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Further reinforce initiatives in non-financial capitals

that contribute to financial performance

Dow Jones Sustainability Indices		FTSE4Good Index Series	MSCI ESG Leaders Indexes
(World, Asia Pacific)

• As of December 2021

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Develop resilient financial measurement methodologies

from a mid- and long-term perspective

Financial indicators

Result of corporate activities

IMPACT

Analysis

Initiatives in
non-financial capitals	Improvement / enhancement
Manufacturing Intellectual
Human Natural Social & relationships

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© NEC Corporation 2021

NEC Group Internal Use Only