Sixth Mid-Term Management Plan and the FY2020 Targets and Performance

The NSK Group considers it important to select issues to address and to set policies and attainment targets by taking into consideration such matters as regulatory requirements, the expectations and needs of stakeholders, potential risks and opportunities, and relevance to the NSK Group’s business endeavors. We work through the PDCA cycle, setting Mid-Term Management Plan targets, including for environmental (E), social (S) and governance (G) activities, and monitoring management indicators for assessing progress.

ESG categoryPolicy
Sixth Mid-Term Management Plan targetsFY2020 targetsFY2020 performance
EnvironmentMaximize the environmental contribution through products
Minimize the environmental impact from business activities
Creating environmentally friendly productsCreate environmentally friendly products with a Neco score of 1.2 or higherCreate environmentally friendly products with a Neco score of 1.2 or higherDeveloped 6 environmentally friendly products
Avoid at least 2 million t-CO₂ emissions during the use of NSK products1.8 million t-CO₂2.51 million t-CO₂
Fighting global warming and climate changeManufacturing, technology, offices: reduce CO₂ emissions by 7% from FY20175% reductionReduced by 31%
Resource conservation and recycling measuresAchieve a recycling rate of at least 99%98.9%98.9%
Industrial waste per unit of sales: 4% reduction from FY20173% reductionIncreased by 11.8%
Water withdrawal per unit of sales: 4% reduction from FY20173% reductionIncreased by 16.6%
Reducing use of environmentally harmful substancesFull response to the 10 EU RoHS2 substancesFull response
  • Ensured full response in newly developed products
  • Continued efforts to completely eliminate harmful substances in manufacturing processes

Response rate for inclusion in NSK Survey of Environmentally Harmful Substances

  • In Japan: Maintain 100%
  • Outside Japan: Obtain 100%
  • In Japan: Maintain 100%
  • Outside Japan: Obtain 99%
  • In Japan: Maintained 100%
  • Outside Japan: Obtained 90%
Biodiversity conservationIdentify the factors in operations that could have a negative impact on biodiversityContinue activitiesContinued activities
Expand social contribution activities related to biodiversity conservationContinue activitiesContinued activities based on the impact of the COVID-19 pandemic
Educate to deepen employee awareness of issuesContinue activitiesContinue activities
ESG categoryPolicySixth Mid-Term Management Plan targets
FY2020 targetsFY2020 performance
Safety ManagementPrevent fatal and serious accidentsEach production site manages its own PDCA cycle for identifying dangerous spots and their improvementRaise the level of risk extraction and inspection at each site and support self-driven risk-reduction activitiesHaving completed extracted risk reduction up to the previous fiscal year by continuing to improve the serious accident risk assessment criteria and their operation, improved level of self-driven risk reduction at each production site
Enhance the safety management of outside contractorsBusiness inspection and improvement guidance for contractors, subcontractors, and outside contractors
  • Established and started operation of the Outside Construction Rule Guidebook
  • Established operation of an outside construction management web system
Increase safety awareness

Train and implement behavior that increases safety awareness, including KYT* and the safety practice of pointing and calling

* KYT: Kiken Yochi (hazard prediction) Training

Plan and launch a safety culture workshop at sites in Japan to raise the NSK safety culture to an interdependent (mutually-enlightening) model
  • Completed construction of a safety culture workshop management system
  • Commenced workshop operations at sites in Japan
Further enhance safety management through continuous ISO 45001 certificationObtain ISO 45001 certification for 6 sites in Japan and 18 global sites
(Plan revised due to the COVID-19 pandemic)
Obtained ISO 45001 certification and began implementing it at 3 sites in Japan and 8 global sites
(Sites not yet certified are scheduled to be certified in the first half of fiscal 2021)
Newly establish the Safety and Fire Prevention Training Center and foster an advanced safety cultureBegin operating the Safety and Fire Prevention Training Center using remote learningThe Safety and Fire Prevention Training Center began operating using remote learning, and safety education instructor training was conducted for managers and supervisors. Completed training of 2 instructors at each site.
Prevent accident reoccurrenceExpand “Look Across Activities” (seeing accidents at other sites as relevant to one’s own workplace and learning lessons from those accidents) to operators on the shop floorEnhance "Look Across Activities" so that factory personnel become more fully aware of the risks in their own workplacePromoted "Look Across Activities" for factory personnel by providing them with guidance from their superiors to improve their risk awareness
Identify risks through risk assessment of equipment and work procedures and implement measures against those risksImplementation/evaluation/countermeasures for risk assessment of existing equipment
(Promotion of a three-year plan from FY2019 to FY2021)
Promoted risk assessment of the existing equipment as planned while implementing risk-reduction measures
ESG category
PolicySixth Mid-Term Management Plan targetsFY2020 targetsFY2020 performance
Quality ManagementNSK Product Development System (NPDS)
This is NSK’s proprietary quality management system for quickly transforming new orders into reliable, stable production.
  • Verify performance with a complete grasp of the level and conditions required by the field
  • Improve field quality
  • Improve NPDS quality (achieve KPI target value)
  • Construct a global system addressing design kakotora (quality problems experienced in the past)
  • Established a feedback system and achieved design review (DR) KPI scores in all business divisions
  • Achieved 100% NPDS participation rate for DR experts
  • Established specifications for a global system addressing design kakotora (quality problems experienced in the past)
NSK Quality No. 1 (NQ1) Program
NSK is promoting initiatives to realize stable production and ensure zero defects.
  • Improve procurement quality
  • Dantotsu improvement activities (ongoing activities for zero defects)
  • Establish supplier audit teams
  • Improve supplier quality concern (SQC) issues by means of Dantotsu activities (ongoing activities for zero defects)
  • Established supplier audit teams and commenced activities
  • Commenced construction of a unified SQC system at domestic plants
  • Achieved global expansion of Dantotsu activities and implemented an internal awards scheme
  • Identify gemba (frontline) 4Ms* quality risks, review good product conditions
  • Enhance reoccurrence prevention

* 4M: Man, Machine, Material, Method

  • Strengthen cooperation with regional quality assurance departments
  • Improve the reoccurrence prevention method
  • Held global quality conferences online
  • Held regional quality conferences online
  • Held study sessions by Reoccurrence Prevention Promotion Committee members at each plant
Human resource development
NSK is promoting the human resource development to build a stronger foundation for quality creation.
Foster quality-first human resource development
  • Effectively utilize Quality-Dojo*
  • Establish Quality-Dojo in technological divisions for design quality training
  • Effectively utilize quality engineering

Quality-Dojo: A dedicated area for quality training put in place at each plant. Established in FY2019.

  • Established Quality-Dojo at all major global bases and commenced training of all employees
  • Commenced establishment of Quality-Dojo in technological divisions
  • Implementation of company-wide FMEA education
ESG categoryPolicySixth Mid-Term Management Plan targetsFY2020 targetsFY2020 performance
Supply Chain ManagementEnsure stable supply and optimize supplier portfolioStable procurementBCP audits of 30 major companies (Cumulative total of 100 companies since FY2018)On-site inspections not carried out due to the effects of the COVID-19 pandemic, efforts implemented centered on remote follow-ups of inspections conducted on 70 companies in FY2018 and 2019
Sustainable and responsible procurementImplementation of self-assessments based on the NSK Supplier CSR Guidelines (every other year)Implemented to additionally reflect the assessment items pointed out in the CSR audit conducted by a third party in FY2018
Obtained responses from 416 companies in Japan (response rate 95%) and implemented verification of level of progress of efforts
ESG categoryPolicySixth Mid-Term Management Plan targetsFY2020 targets
FY2020 performance
Human Resource ManagementLeverage a diverse workforcePromote more diversity and inclusion (D&I)Raise awareness of D&I
  • President’s Diversity Message 2020 published
  • Conducted unconscious bias training
Improve the paternal leave acquisition rateImproved 23.5 points against previous fiscal year (Acquisition rate 50.3%)
Continue to run caregiving seminars
  • Employees taking courses increased by 1.6 times
  • Held training courses for human resource consultation desk staff
  • Create a work environment that empowers foreign nationals (Japan)
  • Develop management personnel (global)
  • Support the empowerment of mid-career hires
  • Started cross-cultural training planning, expanded support for language learning
  • Completed Global Management College FY2019 course (Total number of graduates for all nine terms: 111)
  • Conducted follow-up interviews/training for mid-career hires
Raise awareness of LGBTQ+ issues
  • Held internal seminars
  • Jointly held an external collaborative event
Raise external awareness of our initiatives to promote D&I
  • Selected again as a Nadeshiko brand
  • Retained Kurumin certification (certification recognizing companies with parent-friendly HR policies and programs)
 Promote the advancement of women
Increase the percentage of women among managers and managerial candidates by 1.6 times (compared with FY2018)
Continue supporting women in career-track positionsConducted third round of training for women in career-track positions
Promote a higher percentage of women among career-track position hires (administrative and sales staff: 40%; engineers: 10%)Administrative and sales staff: 40%; Engineers: 10% achieved
Build more engaging workplacesPromote work-style reformsExpand remote work
  • Newly established rules for remote work
  • Environment improvements (e.g., loaned communication terminals, switched to mobile PCs)
Promote health and wellnessRaise external awareness of our initiatives to improve the health of our employeesRetained certification as an Outstanding Health and Productivity Management Organization (White 500)
Centralize the management of employee health checkup resultsCommenced centralized management and analysis by installing a health checkup results management system
Provide opportunities for growthSupport the career advancement of every employeeTrain young employees at an early stageImplemented young employee rotations
Provide ongoing growth opportunities

Adding to conventional face-to-face training, expanded the number of participants and opportunities to attend by making full use of online options and HyFlex*

* HyFlex: Hybrid-Flexible (face-to-face and online training simultaneously)

ESG category
PolicySixth Mid-Term Management Plan targetsFY2020 targetsFY2020 performance
Respecting Human RightsPromote initiatives in line with international human rights norms
  • Maintained process of labor-management discussions and improvements
  • Maintained initiatives to protect LGBTQ+ rights, etc.
  • Continued to respond to inquiries and reports from employees concerning workplace harassment, etc., and implement corrective measures
ESG categoryPolicySixth Mid-Term Management Plan targetsFY2020 targetsFY2020 performance
Corporate GovernanceRealize a transparent, fair and timely decision-making system for sustainable growth and improvement in our corporate value over the mid- to long- termFurther enhance the effectiveness of the Board of DirectorsStrengthened the monitoring function by appointing a majority of outside directors to the Board of Directors
Strengthen Group governanceEnhanced monitoring function and risk management by separating corporate auditor duties from management support
ESG categoryPolicySixth Mid-Term Management Plan targetsFY2020 targetsFY2020 performance
Risk ManagementImplement appropriate risk management to maintain the soundness and transparency of executive management, to increase confidence among business partners and markets, and to improve corporate valueIdentified key risks and mitigated them
ESG categoryPolicySixth Mid-Term Management Plan targetsFY2020 targets
FY2020 performance
Disaster Risk ManagementDevelopment of group crisis management systemsStrengthen cooperation with regional headquarters outside JapanStrengthen reporting and information sharing systemsSet up an emergency response organization to prevent the spread of COVID-19 infections, formulated the Group’s basic policy, and shared countermeasures implemented in each region
Optimize crisis management systemReview the management system based on crisis response results
BCP creation and effectiveness enhancementJapan: Improve BCP effectiveness for earthquake, wind, and flood damageEnhance capabilities to continue product supplyStrengthened emergency response capabilities through training at the Group Crisis Response Task Force and Site Crisis Response Task Forces
Outside Japan: Establish a BCP against serious risksFormulate a BCP assuming serious risksExpanded sites formulating BCP, and started cross-regional BCP formulation
ESG categoryPolicySixth Mid-Term Management Plan targetsFY2020 targetsFY2020 performance
Information Security Management
  • Respond to risks associated with the convenience of information handling due to the rapid development of information and communication technology and strengthen compliance with relevant laws and regulations
  • Build even more robust network mechanisms and organizational structures to counter increasingly sophisticated cyberattacks
Enhance information security infrastructureContinue PDCA cycles for the Information Security Management System (ISMS)Implemented ongoing ISMS activities
Obtain ISO 27001 certificationObtain certification in the Information System DepartmentObtained certification in November 2020

Strengthen incident response capability (including the C-SIRT* system)

* SIRT is the abbreviation for Security Incident Response Team.

Establish C-SIRT organization and commence activitiesAppointed person to C-SIRT and conducted incident response training
Enhance ID and access managementComplete preparations for building an ID and access management systemContinued work to build the system and implemented preparations for migration
ESG categoryPolicySixth Mid-Term Management Plan targetsFY2020 targetsFY2020 performance
ComplianceIncrease trust from international and regional society by completely adhering to the laws and regulations, and by taking actions based on high ethical standardsFurther strengthen the global compliance systemMonitor compliance plans and their progress outside Japan
  • Monitored compliance plans outside Japan and their progress through global and monthly meetings
  • Supported and monitored measures based on the results of the employee engagement surveys (compliance awareness surveys) conducted in fiscal 2019
Improve sophistication of compliance risk managementConduct competition law (antitrust law) audits (worldwide)Conducted competition law (antitrust law) audits and ascertained risks (worldwide)
Heighten employee compliance awarenessFurther develop compliance training for operators working at plantsAt the Saitama Precision Machinery Plant, department managers served as instructors and conducted training for all factory operators
Increase the compliance hotline's reliabilityShare information on usage status and corrective measures (worldwide)Information on system usage and corrective measures shared in the Compliance Newsletter and via other channels such as digital signage