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CSR Objectives and Achievements

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*Evaluation standards: contactTarget achieved contact 80% or more of target achieved contact Less than 80% of target achieved

Provision of Products that Contribute to Better Social Environment

Development and Provision of Products and Services That Help to Preserve the Natural Environment

Strengthen production system in response to market trends for automotive-related products.(NGK Group) Strengthened global production system in response to expanding demand for automotive-related products. (NGK Group) Increase sales growth rate for environmental products by 60% or above by fiscal 2020 (compared to fiscal 2013).
NAS battery (wider use of renewable energy)
DPF, HONEYCERAM, NOx sensor (automobile exhaust gas purification)
Low-Level Radwaste Treatment System(NGK Group)

Enhancement of Quality of Products and Services, Development and Provision of Safe and Secure Products and Services

Conduct rigorous design verification and reliability evaluation to achieve zero major market complaints. Reduce defect costs through optimization and standardization of manufacturing conditions. (NGK Group) Achieved zero major market complaints in more than 90% of the entire Group divisions; failed to reduce defect costs at around 50%. (NGK Group) Conduct rigorous verification for modifications and changes to eliminate risks associated with design and manufacturing. (NGK Group)

Disclosure of Corporate Information

Enhancement of Corporate Information Disclosure

Enhance and continue to provide fair and honest information disclosure in a timely and appropriate manner. (NGK Group) Conducted ongoing fair and honest information disclosure in a timely and appropriate manner. (NGK Group) Enhance and continue to provide fair and honest information disclosure in a timely and appropriate manner. (NGK Group)

Consistent Improvement of Internal Controls Relating to Financial Reporting

Curtail and clearly improve items identified by audits. (NGK Group) Improved all items identified by audits within the fiscal year. (NGK Group) Improve items identified during audits. (NGK Group)
Raise efficiency in assessment and audit of processes rated favorably in the previous fiscal year. (NGK Group) Raised efficiency in assessment and audit of processes rated favorably in the previous fiscal year. (NGK Group) Raise efficiency in assessment and audit of processes rated favorably in the previous fiscal year. (NGK Group)

Thorough Enforcement of Compliance; Risk Management

Thorough Promulgation of the NGK Group Guidelines for Corporate Behavior Through Education

Continue thorough awareness and inculcation of NGK Group Guidelines for Corporate Behavior and behavioral guidelines. (NGK Group) Familiarized employees with career training, created a paper on awareness summarizing guidelines for corporate behavior distributed to all employees. (NGK Group) Continue thorough awareness and inculcation of NGK Group Guidelines for Corporate Behavior and behavioral guidelines. (NGK Group)

Reinforcement of the Risk Management System

The CSR Committee will regularly follow-up on the status of Company-wide risk countermeasures.(NGK Group) CSR Committee met three times, followed up on status of risk countermeasures. (NGK Group) The CSR Committee will regularly follow-up on the status of Company-wide risk countermeasures. (NGK Group)
Conduct CSA questionnaires. (NGK) Conducted CSA questionnaires for a total of 1,703 employees, including executive officer and audit & supervisory board member. (NGK) Conduct CSA questionnaires for directors and managers in Group companies in Japan. (NGK Group)

Respect and Protection of Intellectual Property Rights

Conduct awareness programs for manager-level employees. (NGK) Conducted an awareness program for manager-level employees, inviting external experts, in which around 100 employees participated. (NGK) Conduct awareness program for manager-level employees. (NGK)
Continue to conduct small group discussion-based seminars for young engineers. (NGK) Conducted five small group discussion-based seminars for young engineers in the R&D and business divisions, attended by a total of 62 employees. (NGK) Provided e-learning programs for basics of patents, attended by a total of 136 employees. (NGK) Continue to conduct small group discussion-based seminars for young engineers and provide e-learning programs for basics of patents. (NGK)

Creation and Consistent Improvement of a Framework for Information Security

Complete group-wide compliance with the Microsoft Edge browser ahead of the phase-out of Internet Explorer in January 2016. (NGK Group) Followed up on security measures and software management status at four overseas Group companies, and provided individual guidance for inadequate efforts. (NGK Group) Continue to follow up on security measures and strengthen software licensing management. (NGK Group)

Strict Adherence to the Anti-Monopoly Act, Subcontract Act, and Other Laws and Regulations Pertaining to Business Transactions

Conduct programs to thoroughly instill awareness of competition law compliance. (NGK Group) Revised the competition law compliance rules of each Group company and built an appropriate compliance system according to international standards. Set up the Global Compliance Office to strengthen the relevant structures. (NGK Group)
Considerably increased training opportunities directed at overseas Group companies, of which 26 received training. (NGK Group)
Revised the competition law handbook and distributed a new edition to NGK and Group companies in Japan. Held briefing sessions in each business group to increase understanding of its content. (NGK Group)
Introduce e-learning programs to increase training opportunities. (NGK and domestic Group companies) Create overseas editions of the competition law compliance handbook (U.S., China)
Revise the Compliance Card. (NGK and domestic Group companies)
Launch e-mail archiving systems for Group companies (Japan and U.S.)

Anti-corruption Measures

Provide training on anti-bribery regulations involving foreign public officials. (NGK Group) Established internal anti-bribery rules, including ethical standards. (NGK Group)
Provided training on anti-bribery regulations involving foreign public officials, as part of expatriate training. (NGK Group)
Provided training on anti-bribery regulations at overseas Group companies. (NGK Group)
Launch internal anti-bribery rules involving foreign public officials. (NGK Group)
Provide training for anti-bribery regulations involving foreign public officials. (NGK Group)

Strict Adherence to Laws and Regulations Relating to Export Management

Conduct measures to increase understanding of the import/export handbook. (NGK) Organized 17 training sessions for responsible persons from each division to raise awareness of the importance of the import/export handbook, attended by a total of approx. 350 persons. (NGK) Inculcate thorough awareness of import/export handbook. (NGK)

Respect of Humanity and Assurance of Comfortable Working Environment

Maintenance and Consistent Improvement of Safe and Comfortable Working Environments

Focus efforts on safety training to prevent accidents before they occur. (NGK) Provided safety training for individual issues at relevant organizations, focusing on improving awareness and familiarization of emergency actions. (NGK) Focus efforts on safety training to prevent accidents before they occur. (NGK Group)
Promote 5S workplace certification activities, continue to develop company-wide. (NGK) Horizontally deployed successful case studies developed company-wide. (NGK) Promote 5S workplace certification activities, continue to develop company-wide. (NGK)
Continue health management for employees who routinely work long hours. (NGK) Continued to offer health management programs, in which 226 employees participated. (NGK) Continue health management for employees who routinely work long hours. (NGK)

Development of Human Capital and Recruiting of Human Resources across the Group

Plan highly effective human resource training. (NGK) Promoted systematic training through approximately 120 programs. (NGK) Plan highly effective human resource training. (NGK)
Promote systematic training in attempt to strengthen onsite capabilities. (NGK Group) Organized training programs to strengthen onsite capabilities, using certified in-house instructors with appropriate experience and expertise. (NGK Group) Promote systematic training in attempt to strengthen onsite capabilities. (NGK Group)
Ongoing language training (Goal: 80% of new hires score 600 or higher on the TOEIC). (NGK) 80% of new hires achieved a TOEIC score of 600 points or higher. (NGK) Ongoing language training (Goal: 80% of new hires score 600 or higher on the TOEIC). (NGK)

Utilization of Diverse Human Resources

Maintain disabled employment rate at 2.0% or higher, as required by law. (NGK) Achieved the 2.18% legally mandated ratio. (NGK) Maintain disabled employment rate at 2.0% or higher, as required by law. (NGK)
Continue to encourage use of systems for transferring to main career track positions. Increase the ratio of new female graduate employment against male employment. (NGK) Ten employees transferred to main career track positions. New female graduate employment ratio increased to 40.3% from 23.7% in the previous fiscal year. (NGK) Raise career awareness of female employees and provide them with opportunities to demonstrate their potential. Increase the ratio of new female graduate employment and diversity of job assignment for females. (NGK)

Support for Better Balance between Work and Home Life/Childrearing

Work with labor union to promote rectification of long working hours. (NGK) In cooperation with the workers' union, reviewed causes of increasing overtime work hours and examined and conducted improvement actions, producing record-breaking results: more than 99% of employees used six or more granted days of paid leave, for the third consecutive year; the average number of used days of granted paid leave exceeded 10.0, for the fifth or more consecutive year; and the use rate of granted paid leave exceeded 60%, for the fifth or more consecutive year. (NGK) Work with labor union to promote rectification of long working hours. (NGK)
Increase use of expanded childrearing support measures. (NGK) A total of 39 employees (29 females and 10 males) used systems to take childcare leave of absence; and a total of 53 employees used reduced working hours options for parents of young children. (NGK) Increase use of expanded childrearing support measures. (NGK)

Fair and Honest Evaluation of Procurement Partners and Extensive Resource Diversification

Fair and Honest Evaluation of Procurement Partners, and Extensive Resource Diversification

Conduct assessments, focusing on new and important suppliers (representing around 10% of all applicable). (NGK) Visited and assessed a total of 103 suppliers (representing around 10% of all applicable), consisting of 13 new and 90 existing companies. (NGK) Conduct assessments, focusing on new and important suppliers (representing around 10% of all applicable). (NGK)
Discuss BCP measures with individual suppliers, considering specific business relationships. (NGK) Discussed BCP measures with individual suppliers, considering specific business relationships. (NGK) Discuss BCP measures with individual suppliers, considering specific business relationships. (NGK)

Promotion of CSR Procurement

Maintain ongoing activities through reconfirming understanding and agreement of suppliers. (NGK Group) Obtained written agreements from suppliers. (NGK Group) Maintain ongoing activities through reconfirming understanding and agreement of suppliers. (NGK Group)

Preservation of Global Environment

Prevention of Global Warming

Curb CO2 emissions.
In Japan:
Reduce CO2 emissions by 10% compared to fiscal 1990 (190,000 tons or less); by 20% compared to fiscal 2010 in terms of basic unit per net sales.
Overseas:
Reduce by 5% or more compared to fiscal 2010 in terms of basic unit per net sales. (NGK Group)
In Japan:
Reduced CO2 emissions by 9.3% compared to fiscal 1990 (191,000 tons); by 27% compared to fiscal 2010 in terms of basic unit per net sales.
Overseas:
Reduced by 34% compared to fiscal 2010 in terms of basic unit per net sales. (NGK Group)
In Japan

Overseas
Basic unit per net sales: Reduce by 9% or more compared to fiscal 2013. (NGK Group)

Adoption of Environmentally Friendly Production Processes

Promote the development of innovative process technologies for overseas locations. (NGK Group) Innovative processes developed by NGK and introduced to overseas sites entered the mass production phase. (NGK Group) Increase adoption of innovative processes in overseas sites, particularly for building new factory lines, introducing the latest facilities and expanding production capacity. (NGK Group)
Promote energy conservation measures on general purpose equipment at Group companies in Japan and overseas. (NGK Group) To promote voluntary energy-saving efforts at Group companies, created energy-saving guidelines and a list of best practices and distributed them to each Group company inside and outside Japan. (NGK Group)

Promotion of Resource Recycling

Curb amount of discarded materials generated.
In Japan:
Reduce by 10% compared to fiscal 2010 in terms of basic unit per net sales.
Overseas:
Reduce by 5% compared to fiscal 2010 in terms of basic unit per net sales.
(NGK Group)
In Japan:
Reduced by 19% compared to fiscal 2010 in terms of basic unit per net sales.
Overseas:
Reduced by 40% compared to fiscal 2010 in terms of basic unit per net sales. (NGK Group)
Basic unit per net sales: Reduce 13% compared to fiscal 2013. (NGK Group)
Promote and establish routine operations for resource recycling efforts in accordance with conditions in each country. (NGK Group) In Japan:
Maintained recycling rate level of at least 99%.
Overseas:
Established sorting management systems at each base, and set appropriate recycling rate targets. (NGK Group)
Maintain recycling rate of at least 99% in Japan. (NGK Group)

Strengthening of Global Environmental Management

Focusing on overseas Group companies, identify issues, and consider improvement actions as necessary. (NGK Group) Identified overseas Group company bases that need to improve risk control and clarified issues. (NGK Group) Support bases that need to improve risk control; change regulatory value control methods, shifting focus from point-based to trend-based management. (NGK Group)

Coordination with Local Communities and Promotion of Contribution to the Society

Provision of Scholarships and Living Assistance to Foreign Students

Maintain support to foreign students. (NGK) Provided housing for 32 students from four countries and scholarships for 20 students from 12 countries. (NGK) Maintain support to foreign students. (NGK)
Continue to hold language classes and cross-cultural exchange meetings led by foreign students conducted within and outside the company. (NGK) Held 20 Chinese language classes, and hosted 10 cross-cultural exchange sessions with foreign students from India, Canada, Sweden, Turkey, France, Vietnam Malaysia, China, and Korea. (NGK) Continue to hold language classes and cross-cultural exchange meetings led by foreign students conducted within and outside the company. (NGK)
Distribute information after support ends. (NGK) Sent New Year's greetings to approximately 300 supported students, including alumni; and issued NGK International Friendship Club Membership Cards for students at the expiration of the support period. (NGK) Distribute information after support ends. (NGK)

Cooperation with Local Communities, Labor Unions, and NPOs in Social Contribution Activities

Ascertain activity status and maintain distribution of information connected to the upcoming activities at each Group company. (NGK Group) Received 70 articles from Group companies on social contribution activities, and posted several on NGK' s website as part of corporate information sharing. (NGK Group) Ascertain activity status and maintain distribution of information connected to the upcoming activities at each Group company.(NGK Group)

Support for Volunteer Activities by Employees

Continue to create an environment enabling employees to easily take part in volunteer activities. (NGK) Continued to provide employees with various types of volunteer activity opportunities, including: assistance at science events, participation in Table for Two (TFT), assistance at marathon races, NGK Eco Point System, and tree-planting projects. (NGK) Continue to create an environment enabling employees to easily take part in volunteer activities. (NGK)

Communications with Stakeholders

Communication with Customers and Procurement Partners

Hold earnings results presentations for major suppliers. (NGK) Held earnings results presentations for 131 major suppliers. (NGK) Hold earnings results presentations for major suppliers. (NGK)
Continue to operate the supplier helpline. (NGK) Continue to operate the supplier helpline. (NGK) Continue to operate the supplier helpline. (NGK)
Conduct assessments, focusing on new and important suppliers (representing around 10% of total). (NGK) Visited and assessed a total of 103 suppliers (representing around 10% of all applicable), consisting of 13 new and 90 existing companies. (NGK) Conduct assessments, focusing on new and important suppliers (representing around 10% of all applicable). (NGK)

Interaction with Local Communities via Plant Tours and Open House Events

Continue to interact with local communities. (NGK) Interacted with local communities through six plant tours held at three sites. (NGK) Continue to interact with local communities. (NGK)
Enhance communications with external stakeholders. (NGK) Exchanged opinions with individuals mainly from local administrations. (NGK) Enhance communication with external stakeholders. (NGK)

CSR Talk Live (Discussions on Implementing CSR with Every Employee Class)

Continue two-way communication events with NGK and domestic Group company employees. (NGK and domestic Group companies) Held 10 sessions in eight locations in Japan, attended by a total of 388 employees. (NGK and domestic Group companies) Continue two-way communication events with NGK and domestic Group company employees. (NGK and domestic Group companies)
Enhance CSR-Web content and use it for employee training (NGK and domestic Group companies) Established routine operations for real-time information communications; started use for employee training (NGK and domestic Group companies) Enhance CSR-Web content and use it for employee training. (NGK and domestic Group companies)

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