In accordance with our corporate philosophy of “We are Treating Humanity Treasuring Technology With Good Care,” Nippon Chemical Industrial endeavors to solve societal issues through dialogue with stakeholders and the creation of value, and will work on realizing the happiness of all people from a global perspective and a sustainable society.

In response to our corporate philosophy and policy on sustainability, we have set forth the basic stance to be taken by the company through our products and technologies, in order to build and maintain positive relationships with our stakeholders (clients, shareholders, business connections, employees, and society).
An outline thereof is as follows:

We will fulfil an important role by putting these points into practice as a way of leading by example and focus fully on disseminating and entrenching these points within our organization in order for us to earn a greater level of society’s trust.

In connection with crises that could cause significant losses to the Company’s management, for avoiding falling into a crisis situation, our company consider the optimal response method from various angles to avoid, reduce, and control potential crises, and works to introduce them while considering cost and effectiveness. Risks are categorized by the Company as follows.

The importance of information security is becoming increasingly greater with the development of remote work.
We have been endeavoring to educate employees, develop the infrastructure, and otherwise strengthen security measures.
Given that information concerning information security is changing on a daily basis, we strive to obtain the latest information and harness it for our own measures.

As a comprehensive chemical products manufacturing and sales company, we supply a broad range of products both domestically and overseas.
Since chemical products are essential for societal activities, we feel immensely responsible for supplying them. In order to stably fulfill our social mission, we have formulated the Nippon Chemical Industrial business continuity plan (NBCP) as a business continuity plan. The policy is as follows:

We will realize our basic management policy of “taking on the further challenge of becoming a value-creating company by becoming a highly profitable company in an era of changes in the market environment and providing high-quality products and services through the people and technologies that we have amassed over many years.” We regard corporate governance as rooted in shareholder interests as an important management matter and will endeavor to reinforce compliance by implementing various measures to enhance management oversight, disclosing company information on a timely and appropriate basis, improving corporate ethics, and complying with laws and regulations.

The Company selects persons who can fulfill, as Directors, the management mandate conferred on them by shareholders, have a wealth of experience and high-level insight related to management, and are capable of fulfilling the duties and responsibilities of Directors as candidates for the Director position.
After a draft of candidates for Director is prepared by the representative director and deliberations are undertaken by the Nomination & Remuneration Committee, candidates for Director are selected by the Board of Directors.
Where there has been an irregularity or a violation of a law or regulation or a breach of the Articles of Incorporation in the execution of duties by a Director, or where circumstances under which it can be deemed that the proper performance by a Director of his or her duties would be difficult have otherwise arisen, the Director shall be dismissed.
It is also stipulated that a determination as to the election or dismissal of an Executive Officer shall be made through the adoption of a resolution by the Board of Directors.

An internal reporting (whistleblowing) system has been established and is being developed on a timely basis by the Company in order to prevent violations of the law and misconduct before they become serious matters and ascertain and correct issues as quickly as possible.
In operating this system, the Company has enacted regulations governing the internal reporting system and has endeavored to set up and operate contact points for internal reporting in the Operational Audit Office and outside the Company.

The Company’s basic policy and procedures concerning the remuneration of Officers are as follows:

The Company administered a self-evaluation questionnaire to all Directors.
This questionnaire was conducted based on knowledge shared with us by an outside consultant for the purpose of ascertaining whether or not Directors were aware of any issues concerning the composition or operations of the Board of Directors, agenda items submitted to the Board of Directors, and other matters.
The Board of Directors discussed its effectiveness based on the results of an analysis of the responses received as performed by the outside consultant.

It was confirmed that the composition and operations of the Board of Directors was generally appropriate for a system for making decisions and overseeing the execution of operations.
With respect to the objectivity and transparency of the oversight applied to the nomination and remuneration of management executives and Directors, which was an issue last year, a voluntary Nomination & Remuneration Committee was established and some progress was made.
In addition, it was also confirmed that a planned training program for Directors and Executive Officers needed to be built and implemented.

The Company’s Board of Directors will endeavor to further improve its effectiveness by investigating identified issues.
We will continue to share issues on the basis of evaluations of the effectiveness of the Board of Directors in order to enhance its effectiveness.