Sustainability Management
Basic Policy on Sustainability
In March 2023, the Board of Directors approved the Basic Policy on Sustainability, which was subsequently made public. The policy states that Nippon Paint Group, with MSV as the goal, will implement sustainability initiatives as part of autonomous and decentralized management that emphasizes the autonomy of partner companies. Sustainability at Nippon Paint Group is based on the premise of the pursuit of MSV based on our Asset Assembler model.
Nippon Paint Group recognizes an opportunity for sustainable growth from taking actions such as protecting natural capital including the environment, enhancing human resources by embracing diversity, and creating innovation with social benefits. Our group partner companies autonomously develop sustainability strategies and conduct business activities. Furthermore, we identify risks and opportunities related to Materiality based on sound group governance with the sole mission of Maximization of Shareholder Value (MSV) after adequately fulfilling our legal, social and ethical obligations to customers, suppliers, employees, society and other stakeholders.
Autonomous sustainability structure
Under the leadership of Co-Presidents, five sustainability teams were established. Three teams are Environment & Safety, People & and decentralized management thatemphasizes the autonomy of all partner companies, the five teams areconducting global activities primarily led
by business leaders with considerableexpertise involving the areas of responsibility of each team.
Team leaders submit reports about progress and ideas for new activities directly to Co-Presidents about once every quarter. Co-Presidents pass on this information to the Board of Directors to enable the Directors to supervise sustainability activities.
*Partner Company : Name of consolidated subsidiary companies of Nippon Paint Holdings
| Global Team | Environment & Safety | People &Community | Innovation & Product Stewardship | Governance | Sustainable Procurement |
|---|---|---|---|---|---|
| Scope | ・ Minimize the carbon footprint ・ Ensure the safety of employees and stakeholders |
・ Invest in the well of employeesbeing ・ Build and enable better communities for all our stakeholders |
・ Promote sustainable products ・ Drive innovation towards UN SDGs and carbon neutrality |
・ Maintain the most advanced governance system possible as a listed company, including integrity, internal controls, and risk management | ・ Engage our Suppliers to ensure products and services are purchased sustainably through economically, environmentally and socially responsible processes |
| Global Team Leader | DuluxGroup Brad Hordern |
Nipsea Group Gladys Goh |
Nipsea Group/NPCS Hong Jiang |
NPHD/NPCS Yuri Inoue |
Nipsea Group Janet Ling |
Candidate project site and new business due diligence
The Nippon Paint Group seeks to prevent occupational accidents through advance assessment of risks associated with occupational safety and health, environmental protection, and accidents at all stages from planning to operations related to all of equipment, including newly constructed and expanded factories.
When acquiring a company, our due diligence encompasses assessing risk associated with the company’s occupational safety and health, environmental protection, and labor practices, including the safety control system and operating status and the management system for environmental protection. We seek to identify not just recognized risk but also latent risk associated with the operations of newly acquired companies, and take proactive steps to mitigate the risks.
The risk assessments conducted for the acquisitions in 2019 of the paint manufacturers DuluxGroup, of Australia, and Betek Boya ve Kimya Sanayi Anonim Şirketi, of Turkey, confirmed that neither company’s systems presented undue risk.