TOKYO, Sept 12, 2024 - (JCN Newswire) - NEC Corporation (NEC; TSE: 6701) has published the ESG Databook 2024, a report on its ESG (Environmental, Social, and Governance) initiatives from April 2023 onwards.
NEC ESG Databook 2024
URL: www.nec.com/en/global/sustainability/report/index.html
As outlined in its Mid-term Management Plan 2025 (*), NEC aims to create social and environmental value through its business, with a focus on growth areas, and as part of its financial strategy, is strengthening its non-financial foundations to support the sustainable growth of the company and society.
The main initiatives outlined in the ESG Databook 2024 are as follows:
1. Utilization of Sustainability Information Disclosure Standards
The ESG Databook 2024 was composed with reference to the four components of the ISSB and SSBJ drafts of Sustainability Information Disclosure Standards: "Governance," "Strategy," "Risk Management (including NEC's unique opportunity creation)," and "Indicators and Goals." In addition to examining the gap between disclosure standards and actual initiatives, the Databook will also be used as a tool for dialogue with investors and research institutions that utilize it.
2. Initiatives to reduce capital costs by promoting businesses that contribute to carbon neutrality and by addressing environmental risks
In response to the growing interest in decarbonization among customers and society, NEC is introducing a variety of environmental solutions, including its Sustainability Transformation (SX) consulting services, which support the formulation of strategies and roadmaps toward carbon neutrality and nature positivity. Specifically, in response to the intensification of natural disasters caused by climate change, the Japan Consortium for Adaptation Finance was established with Mitsui Sumitomo Insurance Company, Limited in order to expand the market for "Adaptation Finance," which promotes the procurement of funds by visualizing the effects of adaptation measures using digital technologies. In addition, to ensure a stable supply of food, NEC is expanding sales of AI-based agricultural support solutions through strategic partnerships that act as a new pillar for growth business.
Meanwhile, for the third consecutive year, NEC has issued sustainability-linked bonds with KPIs based on the strength of its environmental initiatives, including its selection as a CDP "A-List (Climate Change)" company for five consecutive years, in an effort to reduce its capital costs. Furthermore, in July 2023, NEC became the first company from Japan's IT industry to issue a TNFD report, disclosing its natural capital initiatives to stakeholders, and in June 2024, published a second edition.
3. Strengthening security for NEC and society, and strengthening the acquisition and development of human resources
As NEC is engaged in businesses that have a high level of public importance, it has positioned cybersecurity and information security as a form of materiality. NEC is promoting measures in accordance with the Cybersecurity Management Guidelines Ver. 3.0 of Japan's Ministry of Economy, Trade and Industry and the NIST Cybersecurity Framework Ver. 2.0 of the U.S.-based National Institute of Standards and Technology (NIST), and discloses its initiatives in the "NEC Information Security Report." In fiscal 2023, NEC was awarded the highest rating of "Two Stars" by the Japan Federation of Information Technology Associations (JFIA) as a company with particularly excellent security measures and as a model to emulate.
NEC Information Security Report 2024 (published in September 2024)
URL: www.nec.com/en/global/sustainability/security/index.html
Additionally, as part of NEC's human resource management, the company is also strengthening the acquisition and development of security and digital transformation (DX) personnel who can meet the expectations and deserve the trust of customers.
4. Strengthening Corporate Governance
In June 2023, NEC transitioned from a company with a board of corporate auditors to a company with a nominating committee, etc. By clearly separating supervision and execution, NEC has strengthened the supervisory function of the board of directors, while at the same time accelerating decision-making and business execution by delegating significant authority to executive officers.
5. Continued inclusion in major ESG indices
As a result of these efforts, NEC continues to be included in major ESG indices, such as the Dow Jones Sustainability Indices Asia Pacific Index, the FTSE4Good Index Series, and the MSCI ESG Leaders Indexes, which is one of the financial strategy targets of the Mid-term Management Plan 2025.
Guided by the NEC Way, NEC aims to create the social values of safety, security, fairness and efficiency and to promote a more sustainable world where everyone has the chance to reach their full potential. Moreover, NEC contributes to all 17 SDGs by actively engaging with various stakeholders and leveraging the power of ICT to address social challenges.
(*)Mid-term Management Plan 2025: www.nec.com/en/global/ir/library/plan2025.html
About NEC Corporation
NEC Corporation has established itself as a leader in the integration of IT and network technologies while promoting the brand statement of "Orchestrating a brighter world." NEC enables businesses and communities to adapt to rapid changes taking place in both society and the market as it provides for 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. For more information, visit NEC at https://www.nec.com.
Source: NEC Corporation
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