Materiality
Material Topics
The NSK Group has identified nine material topics as the key sustainability areas on which it should focus its efforts. While living up to its corporate philosophy, the Group aims to contribute to the resolution of social issues with its sustainable growth by addressing these topics.
Material Topic Identification Process
Step 1: Selection of Subjects for Material Topic Assessment
We selected subjects that affect or could affect NSK’s sustainable growth and contribution to social issues from both short-term and mid- to long-term perspectives. Subjects such as product safety, helping to build a carbon-neutral society, and local community development were chosen for material topic analysis. The selection process primarily considered the following inputs.
- Standards, questionnaires, etc., reviewed:
(1) SDGs, GRI Standards, SASB Standards, ESRS
(2) Questionnaires from ESG research organizations
(3) Questionnaires/interviews with institutional investors
These assessment subjects align with the commitments to build a “safer, smoother society,” “protect the global environment,” and “improve relationships between people” articulated in NSK’s corporate philosophy, as well as the “safety,” “quality,” “environment,” and “compliance” NSK has positioned as core values.* They are also consistent with NSK’s SDGs Declaration, initiatives under its Mid-Term Management Plan 2026 (MTP2026), issues identified in annual risk assessments, and activities undertaken with stakeholders such as customers and suppliers.
*Core values: Common value criteria given top priority in management decision-making and actions
Step 2: Identification of Material Topics
Based on the concept of double materiality,* the importance of the assessment subjects was evaluated and mapped from both positive and negative perspectives in terms of the NSK Group’s impact on the environment and society (impact materiality) and the impact of social issues on the NSK Group (financial impact). The nine subjects with the highest importance were identified as material topics.
*Double materiality: A method of assessing material topics by evaluating not only the impact of changes in the external environment such as social issues on business, but also the impact of a company’s activities on external stakeholders, the environment, and society
Step 3: Deliberation by the Operating Committee
The nine identified material topics were finally determined by the CEO after deliberation by the Operating Committee, which consists of representatives from the executive divisions. They were then shared throughout the NSK Group via the Officers’ Meeting and reported to the Board of Directors. Material topics will be revised continually based on NSK’s management situation, changes in social conditions, changes in stakeholder requests, and other factors.
*The appropriateness of the setting and analysis content of the above identification process has been assessed with insights from an external consultant.
