Approach to and Promotion System for Risk Management

Recognizing that risk management is an important part of management, the Group takes appropriate measures to prevent potential risks in our business activities and focuses on preventing losses caused by the materialization of risks, as far as possible.

Nihon Nohyaku has established a basic policy and management system for risk management for the entire Group in the “Risk Management Regulations.” The Risk Management Committee, composed of full-time Directors or Executive Officers who supervise each department, identifies risks, prevents risks from materializing, and takes measures to minimize the impact of risks that have materialized.

Risk Management Initiatives

In principle, the Risk Management Committee holds a regular committee meeting in March every year to summarize the activities of the year and decide on policies for the next fiscal year. Based on these decisions, we hold workplace meetings (twice a year) and a group council within Group companies (once a year). At the first workplace meeting in FY2022, we worked to enhance employees’ understanding of management risks and company-wide risks, and to improve risk management awareness. At the second meeting, discussions aimed at updating the list of risks faced by each workplace were conducted. As a result of the discussions at each workplace, we identified new risks, including geopolitical risks, soaring global energy prices, and soaring raw material prices due to inflation and other factors. In addition, in FY2022, we conducted our first e-learning program on the basics of BCP and risk management, with the aim of raising risk management awareness across the company.

Enhancing BCP (in Japan: an earthquake directly hitting Tokyo, natural disasters, pandemics)

We have established the Nichino Group Emergency Response Regulations and a system to establish a controlled organization to respond quickly and accurately in the event of an emergency such as a disaster or pandemic, or when such an event is predicted.

In addition, we have established guidelines for large-scale disaster countermeasures at each of our major bases, and prepared action standards and a business continuity plan (BCP) in the event of large-scale disasters such as an earthquake directly hitting Tokyo or natural disasters. These guidelines and plans are reviewed as necessary.
In FY2022, we continued to have an Emergency Response Committee in place as a measure to prevent the spread of COVID-19. The Committee appropriately issued notifications to Nihon Nohyaku and our Group companies regarding measures to prevent the spread of infection, based on government requests. In terms of specific preventive measures against the spread of infection, we restricted the number of employees coming into the office to up to 30% by making the most of the work-from-home system. Moreover, in response to government requests, we reviewed our infection prevention measures and internal guidelines for domestic and overseas business trips as appropriate.

Although we began to lift restrictions on coming into the office from May 2023, from the perspective of the impact on work, work-life balance, workstyle reform and improving productivity, we continue to use both systems of working at the office and working from home. At the Head Office, we aim to have 60% of employees work in the office, and depending on the business characteristics of each department, we will effectively utilize open plan offices and the work-from-home system.

Response to TCFD Recommendations

See our Climate Change Response page for more information.