NEC Announces Progress on Environmental, Social and Governance Initiatives to Support Sustainability of the Company and Society
TOKYO, Sept. 30, 2022–(JCN Newswire)–NEC Corporation (TSE: 6701) is launching a new initiative under a program aimed at “contributing to solving social problems through our business activities”, “strengthening risk management and enforcing compliance” ” policy to promote initiatives that support sustainable development. and “facilitating communication with stakeholders”. Under the Medium-Term Management Plan 2025(1), NEC is committed to strengthening non-financial measures to support the sustainable development of the company and society.
The 2022 NEC Sustainability Report published on the NEC Global website outlines progress made to date.
1. Began to use financial and non-financial data for correlation analysis, practice integrated thinking
To identify non-financial initiatives that can bring greater enterprise value, NEC has taken steps with ABeam Consulting Ltd to visualize how non-financial work affects financial performance. Based on this analysis, NEC has identified a strong correlation between price-to-book (P/B) ratios and non-financial metrics such as “number of women serving as department heads or higher” and “training days per employee” .
2. Strengthening commitment to climate change and conducting business-by-business scenarios
based on TCFD recommendations
In 2021, NEC announced its net-zero greenhouse gas emissions target, Not only from its direct business operations, but also its entire supply chain, aiming to be carbon neutral by 2050. Under this enhanced goal, NEC was validated by the Science-Based Targets Initiative (SBTi) and joined RE100, an initiative dedicated to significantly expanding the adoption of renewable energy (2). In addition, NEC has launched a new project to conduct a “climate scenario analysis” to predict the risks and opportunities that each business faces due to climate change based on its social vision for 2030 and 2050.
3. Substantial initiatives to continue to strengthen the social field
NEC’s business is highly public, so information security and network security are the company’s substantive issues in the social field. In order to be properly assessed, NEC discloses the status of security measures to its customers, investors and other stakeholders through the 2022 Information Security Report.
NEC is accelerating diversity and reforming the way it works to achieve a 50% employee engagement score under the 2025 mid-term management plan. In 2021, town hall meetings, in which the NEC CEO speaks directly and in two-way dialogue with approximately 170,000 employees, will be held 10 times in Japan and 26 times in other regions. As a result of these activities, employee engagement scores improved by 10 percentage points from the previous year, reaching 35 percent by 2021.
4. Strengthening Corporate Governance
In times of increased uncertainty and rapid change, NEC believes that a system that regularly incorporates external input is essential to set the company’s direction and improve its initiatives. Therefore, NEC established the Sustainability Advisory Committee, which includes the CFO, the official responsible for promoting sustainable development.
The NEC Group Human Rights Policy (3) has been revised in accordance with the United Nations Guiding Principles (UNGP) to provide precise guidelines for upholding “Respect for Human Rights” NEC the rights enshrined in the Principles of the Way” to achieve a sustainable society in which everyone can reach their full potential.
In recognition of NEC’s ESG initiatives, the The company has been included in the Dow Jones Sustainability Indices World Index (DJSI World) and Dow Jones Sustainability Index Asia Pacific Index (4) for the second consecutive year. In addition, NEC continues to be included in the FTSE4Good Index Series (5) and the MSCI ESG Leaders Index (6 ).
In the field of the environment, NEC has been recognized for leadership in corporate sustainability by the global environmental non-profit CDP and has received its prestigious reputation within three years A place on the ‘A List’ of 2019. Actions to address climate change and protect water security (7). NEC has also been listed as a ‘Supplier Engagement Leader’ in the Climate Supplier Engagement Ratings for the second year in a row. In In 2020 and 2021, NEC was awarded a “Platinum” sustainability ranking in EcoVadis(8) that evaluates suppliers, as part of the top 1% of companies worldwide.
NEC aims to create social values of safety, security, equity and efficiency to contribute to a more sustainable world where everyone has the opportunity to reach their full potential. In addition, NEC actively collaborates with various stakeholders to leverage ICT The power of our company to meet social challenges and contribute to all 17 SDGs.
(1) Mid-term business plan for 2025
www.nec.com/en/global/ir/library/plan2025.html
(2) NEC raised its greenhouse gas emission reduction target to SBT1.5℃ and joined the global renewable energy initiative RE100
www.nec.com/en/press/202106/global_20210611_01.html
(3) NEC Group Human Rights Policy
www.nec.com/en/global/csr/pdf/human_rights_en.pdf(4) NEC was included in the Dow Jones Sustainability Index (DJ SI)
www.nec.com/en/press/202111/global_20211122_02.html(5) The created ESG indices are provided by FTSE Russell (UK), a wholly owned subsidiary of the London Stock Exchange Group. NEC has been included in the FTSE4Good index series since September 2002.
(6) ESG index created by MSCI (US). NEC has been included in the MSCI ESG Leaders Index since 2015.
(7) NEC Selected for CDP “A List” Advanced Climate Change and Water Security Initiative for Three Consecutive Years www.nec.com/en/press/202112/global_20211208_01.html
(8) EcoVadis uses a methodology based on international sustainability standards to evaluate suppliers, covering 190 spend categories and over 160 countries.
Its Sustainability Scorecard shows performance across 21 indicators across four themes: Environment, Labour and Human Rights, Ethics and Sustainable Sourcing.
Since 2012 NEC has been awarded a “Gold” Sustainability Ranking among the top 5% of companies and a “Platinum” Ranking in 2020 and 2021 .
NEC Sustainability Report 2022www.nec. com/en/global/csr/report/index.html
2022 Information Security Report
www.nec.com/en/global/csr/security/index.html
About NEC Corporation
NEC Corporation has established itself as a leader in the integrated IT and networking technologies, while promoting the brand statement of “Harmonizing for a Better World”. The NEC enables businesses and communities to adapt to rapid changes in society and markets, as it provides the social values of safety, security, equity and efficiency to promote a more sustainable world where everyone has the opportunity to reach their full potential. For more information, visit NEC at https://www.nec.com.
Industry: Cloud and Enterprise
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