Nippon Electric Glass : ESG Databook 2021

ESG Databook

For the year ended December 31, 2021

Contents

01 Corporate Governance

02 Compliance

04 Risk Management

05 Environment

12 Diversity and Inclusion

16 Corporate Information

On the Issuance of Our Databook

The Nippon Electric Glass Group ESG Databook 2021 contains information that will be of particular interest to our stakeholders who want to get more information on our environmental, social, and governance-related efforts beyond what appears in our Integrated Report 2021 and on the Company website. With your feedback, we plan to continue improving such reports to make the information easier to understand.

Organizations Covered

The Nippon Electric Glass Group's 10 companies in Japan and 15 companies outside Japan are covered in this databook. In cases where the coverage area of the data differs, we have indicated the appropriate coverage areas respectively.

Period of Reporting

Fiscal 2021 (January 2021 to December 2021)

Some qualitative information regarding fiscal 2022 has also been included in this databook.

Publication, Next Scheduled Publication

Issued in May 2022. Next scheduled issue in May 2023.

Disclosure Policy

The Group Code of Conduct stipulates that our Group will disclose necessary corporate information in a timely and appropriate manner to enhance communication with concerned parties. Following this policy, we will continue to disclose important information related to our Group's activities to all stakeholders, including shareholders and investors, in a timely and appropriate manner.

Caution Concerning Forward-Looking Statements

Statements in this databook with respect to our Group's plans, outlooks, strategies, and other statements that are not historical facts, are forward-looking statements involving risks and uncertainties.

Corporate Governance	Environment	Diversity and Inclusion

Corporate Governance

Attendance of Board of Directors and Board of Corporate Auditors Meetings in Fiscal 2021

	Name	Board of Directors	Board of Corporate
	Auditors
Representative	Masayuki Arioka	14/14 meetings (100%)	-
Directors	Motoharu Matsumoto	14/14 meetings (100%)	-
	Hirokazu Takeuchi	14/14 meetings (100%)	-
	Koichi Tsuda	14/14 meetings (100%)	-
Directors
Hiroki Yamazaki	14/14 meetings (100%)	-
		11/11 meetings (100%)	-
	Tomonori Kano	(Since assuming office in
		March 2021)
	Shuichi Mori	14/14 meetings (100%)	-
Outside
Reiko Urade	14/14 meetings (100%)	-
Directors
	Hiroyuki Ito	14/14 meetings (100%)	-
Full-time	Masahiko Ohji	14/14 meetings (100%)	13/13 meetings (100%)
Corporate
Auditors	Yoshihisa Hayashi	14/14 meetings (100%)	13/13 meetings (100%)
Outside	Katsuhiro Matsui	14/14 meetings (100%)	13/13 meetings (100%)
Corporate
Auditors	Tsukasa Takahashi	14/14 meetings (100%)	13/13 meetings (100%)

Training for Directors and Auditors

During Compliance Awareness Month, which is held in October of every year, we invite outside instructors to come and give lectures on compliance to our inside directors, full-time corporate auditors, and other executives. We also hold director training seminars every year, which provide our directors with a deeper understanding of current business conditions, including those surrounding corporate governance. Our corporate auditors participate in seminars and information exchanges with outside organizations, through which they deepen their auditing- related expertise. For our outside directors and outside corporate auditors, prior to assuming office, we provide them with explanations about our current corporate situation and systems. After they have assumed office, we provide them with opportunities to conduct interviews with directors and executive officers.

Total Amount of Directors' and Corporate Auditors' Remuneration in Fiscal 2021

	Total amount of	Total amount for each type of remuneration (millions of yen)	Number of
		Restricted
Category	remuneration	Monthly (fixed)		Retirement	eligible Board
	(millions of yen)	stock-based	Bonuses	Members
	remuneration	benefits
		remuneration
Directors
(Outside Directors	361	230	40	90	-	7
excluded)
Corporate Auditors
(Outside Corporate	41	41	-	-	-	2
Auditors excluded)
Outside Directors and	37	37	-	-	-	5
Corporate Auditors

01

Corporate Governance	Environment	Diversity and Inclusion

Compliance

Internal Whistleblowing System "NEG Hotline"

				Known by name or Anonymous
				Contact point: Compliance Committee
or Claimant				Means: postal mail or email
Informant			Known by name			Attorney'soffice			Known by name or Anonymous
	Contact point: attorney's office (NEG Hotline contact)
			Means: postal mail, email, phone or fax
			Anonymous						Anonymous

Note: Flow diagram is for the Company and its group companies in Japan.

• Number of exposures or claims within the Group

2017	2018	2019	2020	2021
4	6	11	11	12

Note: Figures for 2017 and 2018 are for the Company and its group companies in Japan only.

Committee Compliance

Measures to Prevent Corruption

With increasing globalization, the importance of preventing corrupt actions such as bribery in international transactions is being recognized in various countries.

Our Group Code of Conduct prohibits the bribery of public officials or others in positions of public service in Japan or any other country. The issue of preventing corruption is addressed in compliance training at our group companies both in Japan and abroad, held during Compliance Awareness Month.

Measures to Maintain Fair Business Dealings

We recognize the importance of adhering to antitrust laws in promoting fair international dealings.

Our Group Code of Conduct prohibits actions such as price-fixing or cartel agreements, and based on the internal rules at our group companies inside and outside Japan, any contact with a director and an employee of a competitor must be requested ahead of time and reported on afterwards. Adherence to the antitrust laws is covered in our annual group company compliance training, and we also hold seminars on the antitrust laws for employees who work in sales.

02

Roles

Head Office:

Corporate Governance	Environment	Diversity and Inclusion

Compliance Education, Workshops, and Lectures Held in Fiscal 2021

	Name	Intended Persons	Times	Participants	Themes
					• Corporate Philosophy, Code of
	Education for				Conduct, Principles of Activities
	new employees	All new employees (new graduates)	2	38	• What is compliance?
	(new graduates)				• Internal whistleblowing system
					• Case studies and the like
		Managers at our Company and			• Outline of compliance
	Workshop	subsidiaries in Japan	4	156	• Recent trends (background and notes)
	(online)	(Participants shall inform other employees	• Internal whistleblowing system and the
Japan
	in their workplace of the content.)			like
		Executives and general managers at our
	Lecture	Company, representatives of subsidiaries	1	58	• On quality fraud
		in Japan, area branch managers
	Antitrust	Employees of our Company engaged in			Antitrust laws
			• Outline of antitrust laws
	seminar for sales	2	57
	sales activities	• Effects of revision to laws and case
	departments
				studies
					• Corporate Philosophy, Code of
					Conduct, Principles of Activities
Overseas	e-Learning	Managers at subsidiaries in Malaysia,	―		• Protecting human rights in the supply
312	chain
the U.S.A. and Europe
				• Trade secrets, personal information
					• Internal whistleblowing system and the
					like

As a result of these efforts, no cases occurred in fiscal 2021 of bribery, anticompetitive acts, or any other infraction requiring legal action.

BCP

• BCP Response Training

At our BCP response training carried out in November 2021, we simulated the scenario of a major earthquake in the active fault zone on the west coast of Lake Biwa, set up a remote disaster headquarters, and elicited issues that could arise.

BCP response training

• BCP Activation Structure

Head Office Disaster Response		Area Branch Disaster Response
Task Force		Task Force
		(for 6 bases in Japan)

Implement basic policy and decision-making for general disaster response.

Area Branches: Facilitate disaster response while coordinating closely with the Head Office.

Structure of Head Ofce Disaster Response Task Force

Task Force		Task Force			General Affairs Manager
Director		Deputy Director
(President)		(front-line command)			Personnel Manager
		Task Force			Accounting Manager
		Deputy Director
		(logistical support)			Procurement Manager
					IT Systems Manager
					Facilities Manager
					Equipment Manager
					Environmental Manager
					Sales Manager
					Secretariat

03