Materiality
Materiality supporting Asset Assembler model
We will aim for MSV by using sustainability activities centered on initiatives on materiality that support Asset Assembler model.
Nippon Paint Holdings is pursuing MSV as its sole mission and believes, first and foremost, that the fulfillment of obligations to customers, suppliers, employees, society, and others is the major premise for accomplishing this goal. Initiatives for key sustainability issues (materiality), identified in 2020 from a global perspective, require the fulfillment of our obligations and a direct linkage to our businesses, such as identifying new business opportunities and tapping into new markets. Furthermore, these initiatives are also expected to prevent expenses from increasing and reduce business risks by complying with future laws and regulations while responding to supply chain issues ahead of competitors.
Nippon Paint Group continues to use initiatives that are directly linked with business activities and based on a thorough understanding of materiality-related risks and opportunities from a medium- to long-term perspective. In accordance with Asset Assembler model, we are linking these initiatives to the creation of innovations that support the growth of existing businesses. We believe that these initiatives to achieve MSV will result in revenue growth and higher expectations for our value (maximization of EPS/PER).
The materiality identification process
We identified materiality by creating a list of material issues which society requires us to address. This process included international ESG guidelines such as the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB) as well as items required by ESG research organizations. We then performed a quantitative evaluation of the issues and verified their significance from two perspectives: the level of importance to stakeholders and the level of importance to Nippon Paint Group’s businesses. In addition, we used external experts to receive objective viewpoints and held discussions with our partner companies around the world to identify material issues associated with our business model and the business environment. These issues were then designated as our materiality.
For more information about our framework for sustainability initiatives and the identification of KPIs, see “Sustainability Strategy”
Sustainability Materiality (material issues) |
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Asset Assembler model |
Maximization of Shareholder Value (MSV) |
*Further information about ESG Management system is available here.
list
- We created a long list of 75 items that is our obligation to address based on international ESG standards and guidelines for disclosure and reporting derived from 11 ESG rating agencies and organizations. We then consolidated the list down to a preliminary list of 32 items.
Internal discussion
questionnaire
- The newly-established then ESG Committee met in April 2020 and deliberated on the materiality identification process. Also, we distributed a questionnaire to the 25 committee members and the staff of the then ESG Promotion Department for their input on the items in the preliminary list.
global risks
- To incorporate global risks, the discussions also included chemical sector risk scenarios based on information in the Vigeo EIRIS Controversy Risk Assessment and other reports. Peer companies in the global chemical sector and forward-thinking Japanese companies were also referred to.
discussion
- Based on the weighting of importance for stakeholders and for Nippon Paint Group we identified six groups of items of materiality for business sustainability. During the process, we placed particular importance on discussion and agreement with overseas partner companies.
opinion
- We interviewed various stakeholders and Independent Directors to gather their opinions on the potential items of materiality and created the final proposal through internal discussion.
Internal discussion
- We deliberated on the final proposal at the then ESG Committee meeting in July 2020 and obtained final approval at the Board of Directors meeting in August.
Materiality map

Relevant SDGs
Materiality | Relevant SDGs | Explanation of Materiality |
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![]() Climate Change |
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The impact of climate change on our daily lives is increasing each year. The Group is doing its part to mitigate the impact of climate change by reducing greenhouse gas emissions while minimizing the business risk posed by the changing climate conditions. |
![]() Resources and Environment |
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The sustainability of our business depends on the effective use of water, energy, and other resources and the prevention of environmental pollution. The Group applies measures in these areas throughout its product lifecycles. |
![]() Diversity & Inclusion |
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Respecting the people around us and embracing diverse values are essential for sustainable business growth. The Group respects human rights and emphasizes the importance of diversity in its employees and all individuals involved in our business operations. |
![]() Safe People and Operations |
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As a chemicals manufacturer, we are constantly assessing the potentially major risks to health and occupational hazards associated with handling chemical substances. We conduct capital investment and education to ensure the utmost safety and to minimize the risks to our employees and all people involved in our businesses. |
![]() Growth with Communities |
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We generate sustaining growth for our business investing in communities through our value chain, expanding our markets, strengthening our brand, and maintaining positive relations with local communities. |
![]() Innovation for a Sustainable Future |
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Today’s society is facing a growing number of problems that cannot be fully solved with methods used in the past. We are actively engaging in partnerships to enhance our ability to generate innovative solutions. |
Materiality, Risk, Opportunity, and ESG Agenda
Materiality | Risks | Opportunities | ESG Agenda |
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![]() Climate Change |
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![]() Resources and Environment |
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![]() Diversity & Inclusion |
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![]() Safe People and Operations |
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![]() Growth with Communities |
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![]() Innovation for a Sustainable Future |
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Sustainability Strategy Updates
Released April 7, 2023
Team | Materiality | Main actions/achievements in FY2022 | Targets/actions in FY2023 and onwards |
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Environment & Safety |
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People & Community |
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Innovation & Product Stewardship |
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Governance | All Materiality categories |
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Sustainable Procurement | All Materiality categories |
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