Society

The Nippon Paint Group supports and promotes sustainable development in all regions where we operate through business activities that integrate and balance the three elements of economy, society and environment.

Diversity and Inclusion

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D&I Statement

Our people are an integral component of Nippon Paint Group in achieving Maximization of Shareholder Value (MSV).
We value diversity*, and recognize the importance of inclusion. For this reason, we are determined to foster a culture where differences are welcomed and appreciated, and environments where all employees have access to resources, feel respected and are empowered to reach their full potential.
People play a vital role at Nippon Paint Group and we firmly believe that active participation and contribution by a diverse workforce is the key driving force to achieve MSV.

*diversity in terms of race, religion, gender, age, sexual orientation, nationality, culture and a variety of values and ideas

Management system

We have designated Diversity & Inclusion as an item of materiality, and is undertaking human resources initiatives. Specifically, the Global Team (People & Community Team) that works directly under the Directors, Representative Executive Officers & Co-Presidents discusses policies and initiatives concerning human resources activities of each partner company and reports updates to the Co-Presidents. The Co-Presidents will submit reports to the Board of Directors whenever necessary. In this manner, materiality-related activities of the People & Community Team are overseen by the Board of Directors.
People & Community Team shares success cases of each partner company and identify priority issues, and autonomously conduct activities based on roadmaps developed for each partner company.

Building up human capital with diversity

Building up human capital with diversity serves as one of the most critical cornerstones of our Asset Assembler model.
We know that our diverse, skilled and engaged workforce is critical to achieve MSV. To this end, we foster the promotion of human resources with a diverse background and the promotion of education and awareness of diversity, equity, and inclusion; eliminate the discrimination, harassment, and violence based on race, gender, religion, and any other form of diversity in the workplace; and create a more welcoming work environment where everyone feels welcomed and respected.
Each of our PCs are building up human capital by taking actions that are suitable for the countries and regions where they conduct business activities.
The Global Code of Conduct, which was established in January 2022, articulates our focus on diversity and respect for human rights. In addition, our PCs around the world carry out human resource management activities designed to secure and increase diversity. Moreover, our Corporate Governance Policy stipulates that the Group values ensuring diversity.

DuluxGroup

At DuluxGroup, we believe that diverse perspectives and experiences drive innovation and enhance performance. Our leaders, at all levels, are focused on creating an environment where everyone feels they belong and can do their best work.
We are committed to gender equality. Through a focused effort in our recruiting strategies, our internal talent management processes and development of our people, we have increased female representation at all levels of the organization, particularly in leadership, where we have more than doubled the percentage of women in our Top 200 in the last 10 years.
By actively promoting career development opportunities and a compelling employee value proposition, including flexible work arrangements, we aim to not only attract and retain talented women, but also break down gender stereotypes in our industry.

Dunn-Edwards

At Dunn-Edwards, we’re proud to have built an organization that reflects the diverse melting pot that is the North American market, and we’re committed to fostering an inclusive and diverse environment, where all employees feel welcomed and valued, and where everyone has equal access to opportunities, guidance, and support.
Based on this guiding principle, in 2020, we established our Diversity, Equity, and Inclusion (DE&I) Committee to steer our efforts in this area. In the time since, all activities and initiatives undertaken have been developed based on company-wide survey data, gauging the sentiment of our workforce around the company’s current state of and efforts toward DE&I.
To date, we’ve expanded resources for career development and career pathing, launched a DE&I training curriculum for team members at all levels, and launched a new Intranet and communication strategy to improve transparency across the organization. As we go forward, we’ll continue to use a data-driven approach to shape future activities to ensure a welcoming and supportive environment.

NIPSEA Group

NIPSEA Group takes pride in fostering a diverse and inclusive workforce that embraces people of different genders, generations, nationalities, and expertise. We recognize the importance of having a diverse team in producing better business outcomes for its customers and the communities it operates in. As part of its commitment to Diversity & Inclusion (“D&I”), we have formed a dedicated committee that champions initiatives around “People and Community.”
This committee plays a vital role in ensuring that the company's D&I policies and programs align with its overall commitment and approach to D&I.
NIPSEA Group is working towards the goal of achieving 35% female representation in both management and emerging leader categories.
To achieve this goal, we have created a supportive work environment that aims to attract, retain, and develop female talents across the organization. These initiatives include mentorship programs, coaching, and leadership development opportunities.

Japan Group

Japan Group has taken the following actions to achieve the goal of increasing the ratio of women in managerial positions to 10% by 2025: development of next-generation female leadership candidates, implementing various actions to help with career visioning, and mindset reform in employees for promotion to managerial positions. Specifically, we are working on the development of next-generation female leadership candidates as part of activities of the D&I Committee Japan launched in July 2022. Through this activity, we provide all supports and development opportunities necessary to encourage ordinary female employees to set their career goals in a more proactive manner. In addition, our employees will declare their career goals once a year and have one-on-one meetings with their supervisors to continuously support their career goal achievements. This opportunity has allowed all employees including female employees to become aware of the importance of building their careers by themselves, thereby contributing to mindset reform. Female candidates will not be given preferential treatment in our annual appointment of managerial positions. Both management and supervisors make sure to promote the right person regardless of gender, ensuring that talented female employees are not overlooked in promotion decisions.



Roadmap

2022 2023 ~2025
NIPSEA
  • Kicked off D&I Week to raise employee awareness
  • Implemented Global CSR Framework
  • Launching D&I Policy
  • Encourage countries to own the roadmap towards achieving 35% female representation in both management & emerging leader category
  • Weave D&I into Employee Engagement campaigns
  • Initiated the NIPSEA Female Mentorship Program
  • Implementation of roadmap towards the goal of achieving 35% female representation in both management & emerging leader category
  • Monitor progress towards the goal
DuluxGroup
  • Revised draft D&I framework and strategy, encompassing dimensions beyond gender (indigenous reconciliation; disability; cultural diversity)
  • Regular reporting to the CEO and the Executive Team on our progress against our diversity ambition
  • Promote our Employee Value Proposition to all employees, but particularly to women in Supply Chain and Sales
  • Engage each of our Strategic Business Units to develop their own Diversity, Inclusion and Belonging strategy and actions
  • Meaningful actions to sustain our momentum toward gender balance, particularly in leadership
  • Meaningful internal programs to foster inclusion
Dunn-Edwards
  • Launched DEI Training
  • Launched phase 2 of DEI curriculum for all employees
  • Share DEI curriculum with NPHD People and Community DEI Committee
  • DEI committee building company-wide interactive activity for April’s celebration of diversity, highlighting the diversity that exists within Dunn-Edwards
  • Continuously review and adapt company polices to ensure that all charter objectives are met
Japan Group
  • Kicked off D&I Committee Japan. Launched activities to support the skill development and active participation of women employees, revitalize the organization and accelerate business growth/li>
  • Developed action plans towards 2025
  • Act on Promotion of Women’s Participation & Career Advancement in the Workplace
  • Increase the ratio of women in managerial positions to 10%
  • Selects and trains the next generation of women leaders from non-managerial positions for their skills and career building

Examples of the Japan Group D&I Initiatives

Gender pay gap for Japan Group

At every PC in Japan Group, wages are determined based on roles played and significance of job tasks. We have gender pay parity in like-for-like roles and job tasks.
Based on our analysis, the primary cause of the gender pay gap is the lower ratio of women in managerial positions than men. Japan Group is taking actions, such as providing skill development programs for female employees and their supervisors with the goal of achieving the numerical target of increasing the ratio of women in managerial positions to 10% by 2025. We believe that the gender pay gap will decrease with the increase in the ratio of women in managerial positions.

Gender pay gap ratio (FY2022)

All workers Regular employees Non-regular employees
Nippon Paint Automotive Coatings Co., Ltd. (NPAC) 66.9 75.8 67.3
Nippon Paint Industrial Coatings Co., Ltd. (NPIU) 77.8 79.8 81.4
Nippon Paint Co., Ltd. (NPTU) 73.6 77.2 76.3
Nippon Paint Corporate Solutions Co., Ltd. (NPCS) 77.4 79.6 77.8

* The survey targets are partner companies with more than 300 employees
* Women’s wages relative to men’s (indexed to 100)

(For reference) Pay gap analysis for NPAC

The larger overall gender pay gap is mainly attributable to the gender pay gap among non-regular employees of 67.3% because NPAC has more non-regular employees than other PCs. Based on our analysis, the gender pay gap among non-regular employees is primarily due to the difference in the composition of workforce (the ratio of employees reemployed after retirement: 64% for men and 2.9% for women).

Work-life balance initiatives

Japan Group have established flexible working systems in step with the life events of their employees, including work-from-home systems and systems allowing paid leave to be taken in hourly increments, shortened working hours, and childcare and nursing care, as well as promoting initiatives such as seminars to explain systems.

System Eligible people Summary
Flextime system All employees In principle, employees work core hours of 11 a.m. to 2 p.m. and are able to choose their own starting and finishing times
Shortened work hours system Employees with preschool children and those caring for family who require nursing Employees may shorten their working hours in 30-minute increments up to a limit of two hours per day
Childcare leave Employees with children up to first grade in junior high school Seven days per year for one child and ten days per year for two children
Leave can be taken in hourly or daily increments
Nursing care leave Employees caring for family who require nursing Seven days per year for one nursing recipient and fourteen days per year for two recipients
Leave can be taken in hourly or daily increments
Menstrual leave Female employees When it is difficult for an employee to work on menstrual days. Two days within the menstrual period
Paid leave by unit system All employees Leave can be taken in hourly or half-day increments
One-week holiday All employees who have been with the company for at least two years Acquisition of five consecutive days of paid annual leave every year
Work-from-home system Those raising children or caring for family
Employees engaged in overseas-related work
Employees may work from home up to four times per month
During the COVID 19 pandemic, this system applies to all employees, with no limit applied to the number of times
Childcare allowance Employees caring for children under the age of three Subsidies available for childcare fees when using childcare facilities
Childcare leave system Employees caring for children under the age of three Up to three years
Nursing care leave system Persons caring for family who require nursing Authorization of leave for up to six months per year to provide nursing care

Establishment of Working from Home System

Working from Home

We have introduced a working from home system in order to respect and assist the work motivation of employees by developing a working environment that increases labor productivity and allows employees to bring out their full potential without being constrained by working hours and geographic location of employees.

As measures to prevent COVID-19 infections, we apply the working from home system to employees without limiting the employees who are allowed to work from home and the frequency of usage. The questionnaire survey of employees of our Group companies in Japan conducted in February 2022 had positive responses, such as working from home system improves work efficiency by making it easier to schedule a meeting with overseas attendants; and the use of web conferencing system facilitates smooth information sharing and decision making. At the same time, issues were raised, such as employees in certain job categories cannot work from home; and some physical tasks including administrative procedures involving paper documents prevent some employees from working from home.

Based on the feedback and issues emerged regarding the working from home system, we will improve applicable systems wherever necessary toward creating a working environment that allows individual employees to demonstrate their abilities to the fullest.


Encouraging men to take childcare leave

Male employees' participation in childcare is important in terms of responding to the requests of these employees, and also to mitigate the impact of childcare, which is skewed towards women, and to allow both spouses to build a sustainable career. Japan Group are encouraging men to take childcare leave to support men actively participating in it. In particular, we are using in-house media to offer messages from management and stories about men’s experiences with childcare leave, and working to create an environment in which it is easy for men to take it.

A comment from a male employee (photograph at right): "I couldn't do any of the things I wanted to do; feeding the baby, changing diapers, putting my child to bed; it was a constant process of self-examination and failure. I realized just how much I had been relying on my wife to raise my children. This woke me up to how being close to my child's growth would be an asset for me; it was a great opportunity for me to re-look at the way I work."

Social - Diversity and Inclusion initiatives

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