Sustainability-
Message from the Presidentmenu
- Message from the President
- Sustainability Promotion Structure
- Tackling climate change
- Initiatives to Achieve Carbon Neutrality
- Key issues(materiality)
- Environmental Contribution through Surface Modification Technologies
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Message from the President
We will contribute to building a sustainable society through surface modification technologies.
Kazuichi Satomi
Chairman President & CEO
We started business in 1928 by taking over the patent rights for manufacturing a rust-proofing chemical for steel and a rust-proofing process from Parker Rust-Proof Company in the US. For nearly 100 years since then, we have continued to refine our surface modification technologies and contribute to the development of society as a leading company in this field. Surface modification technologies significantly extend the service life of things by preventing strength deterioration and wear of metals, thereby improving their durability. With these and other benefits, they save resources and are environmentally friendly. They are essential technologies for building a sustainable society.
Since its founding, the Nihon Parkerizing Group has been growing with two core industries: the automotive and steel industries. However, the automotive industry is witnessing an accelerating shift to EVs as part of the move toward a carbon-free society. In the steel industry, an industry shakeout is in progress in and outside Japan, along with the rise of China, India, and other countries. It also faces a growing demand for environmentally friendly technologies. In addition to these moves in customer industries, soaring raw materials and, energy prices, and other ongoing events have made the current business environment even more challenging. Among them, the reduction in the number of automotive parts resulting from the acceleration of the shift to Evs is a significant threat to the Nihon Parkerizing Group. To address these rapid changes in the business environment, the Group must respond promptly to new needs by considering customers' perspectives more than ever.
At the Nihon Parkerizing Group, we formulated Vision2030 in 2021, describing what we wanted to be like in ten years. There, we set five fundamental strategies for "developing new businesses," "cultivating existing markets," "accelerating global rollout," "enhancing Group governance," and "diversifying human resources," with sustainability-oriented management at the base. As our FY2030 targets, we set consolidated net sales at 200 billion yen, an operating income to net sales ratio of 15%, and ROE of 10% or higher. To achieve these targets, we need to take on challenges bravely and aggressively in new business domains instead of existing ones. We are making Group-wide efforts to achieve them.
As part of the efforts, we have already begun constructing new Central Research Laboratories to complete them in 2025. After their completion, the facility will be a world-leading R&D base for surface modification technologies. In addition, we are revitalizing the domestic and international exchange of human resources to develop globally competitive human resources and strengthen the recruitment and development of local staff. We have also established technology hubs in Thailand and China to provide technological support close to customers and facilitate the timely development of technologies matching local needs. We have taken these initiatives under the policy: "Think Globally & Act Locally."
Sustainability initiatives are also essential for enhancing corporate value and identifying and addressing critical social issues. In July 2023, we established a Sustainability Committee. We also checked the progress regarding carbon neutrality targets and the six key issues (materiality) we have identified. We discussed future action policies, among other agendas, in an attempt to integrate business activities with sustainability-oriented management and drive them.
At the Nihon Parkerizing Group, we will strive to ensure highly transparent information disclosure so that our shareholders, investors, and other stakeholders will better understand our medium- to long-term value creation.
Basic Policy on Sustainability
- The Nihon Parkerizing Group is committed to realizing a sustainable society and increasing its corporate value by providing its products and services.
- The Nihon Parkerizing Group will actively seek to provide products and services that are environmentally friendly and ensure safety and quality.
- The Nihon Parkerizing Group aims to realize a society where diverse human resources can play an active role through respect for human rights and equal employment opportunities.
- The Nihon Parkerizing Group will engage in fair and sincere corporate activities, with appropriate information disclosure and proactive communication with stakeholders.
Framework for Sustainability-Oriented Management
At the Nihon Parkerizing Group, we have formulated a Basic Policy on Sustainability. We are pursuing initiatives aimed at building a sustainable society and enhancing our corporate value under our Corporate Philosophy: "We are contributing to the effective use of limited resources on planet Earth, creating new value of resources through surface modification of all kinds of materials, preserving the global environment, and realizing an affluent society."
Regarding the risks of climate change and the potential impact on our businesses, as well as the specific initiatives we are taking at the Nihon Parkerizing Group, we plan to disclose information in the integrated report to be published in September 2023, in accordance with the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD).
Policy List
The Nihon Parkerizing Group has established the following policies.
Sustainability Promotion Structure
We established the Sustainability Committee, in which management is actively involved to strengthen and accelerate our sustainability efforts further.
We will further enhance and strongly drive the Group's sustainability promotion activities.
More Information about the Sustainability Promotion Structure
How We Tackle Climate Change
At the Nihon Parkerizing Group, we began to disclose information based on the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD) in 2023. We will determine climate change risks and opportunities, assess their impact on our businesses, and explore the sustainability of our businesses, thus fulfilling our responsibilities as a corporate entity.
Initiatives to Achieve Carbon Neutrality
To build a sustainable society, we have set a goal of achieving carbon neutrality by 2050 and formulated a policy on our initiatives and targets of our activities. We will clarify the roles we should fulfill as a chemical company and work proactively to reduce CO2 emissions from our businesses (Scope 1 and 2 emissions). And we will cut the emissions throughout the entire lifecycle of our products.
More Information about Initiatives to Achieve Carbon Neutrality
“Vision2030”
We will contribute to building a sustainable society by creating new value for resources through surface modification of various materials.
At the Nihon Parkerizing Group, we attempt to create new value through surface modification technologies. We will also work to preserve the global environment and realize an affluent society, as stated in our Corporate Philosophy.
Key Issues (Materiality)
We have identified six key issues (materiality) that we should address on a priority basis at the Nihon Parkerizing Group towards building a sustainable society.
We will promote sustainability-oriented management Group-wide and address social issues proactively through business activities.
Environmental Contribution through Surface Modification
Metals are essential materials for our daily life. As mentioned, we apply surface modification technologies to various materials to protect metals. What if there were no surface modification technologies? We made provisional calculations to see how corrosion prevention and wear resistance technologies protect metal materials and contribute to reducing GHG emissions.
More Information about Environmental Contribution through Surface Modification Technologies