Materiality

Materiality Identification Process

From among a wide range of ESG-related issues, we have identified materiality items based on the strengths of the NSD Group and industry characteristics and promote initiatives to effectively help build a sustainable society.
In identifying materiality, we carried out the process with the advice of outside experts, based on the two perspectives of "importance for stakeholders" and "importance for the Group."

Materiality map

NSD Group's Materiality

Environmental Initiatives

Reducing impact on global environment

To achieve a sustainable society, NSD recognizes that global environmental conservation is one of its management issues, and will help build a better, more prosperous global environment in collaboration with customers and business partners.

Opportunities
Increased use of IT services
Providing IT solutions for managing greenhouse gas emissions
Risks
Handling of social responsibility
Response throughout the supply chain
MaterialityMeasuresInitiatives and achievements
Climate Change & Energy Management
  • Information Disclosure based on TCFD Recommendations
  • Thorough environmental management based on ISO14001
  • Environmentally friendly initiatives

Target

  • CO2 Emissions* FY2030: 1,395 t-CO2 (42% reduction from FY2020 levels)
  • CO2 Emissions* FY2044: Achieving net zero emissions
  • We support the TCFD Recommendations and disclosed the information on our "Governance", "Strategy", "Risk Management" and "Indicators and Targets" related to climate change based on the TCFD Recommendations.
  • Established an environmental management system in compliance with the ISO14001:2015 certification standards, and operated and managed it in accordance with the PDCA cycle.
  • FY2024 CO2 emissions* were 1,808 t-CO2, a 24.9% reduction from FY2020 levels (base year).
Waste Management
  • Reducing waste by going paperless and recycling computers, etc.

Target

  • Sheets of printing paper used FY2030: 500,000 sheets (45% reduction from FY2020 levels)
  • 610,000 sheets of printing paper were used in FY2024, a 32% reduction from FY2020 levels (base year).
  • The rate of reusing and recycling computers was kept at 100%.
  • *: Energy subject to measurement is the total value of Scope1+2, and the scope of calculations is NSD and its subsidiaries.
  • *Please refer to this link for the Conservation of Water and Biodiversity.

Social Initiatives

Contributing to society by using our characteristics as an IT company

By creating and providing new solutions beneficial to people and society through exploring AI and other leading-edge technologies, we create new value in advanced technology and DX fields together with customers to contribute to building a sustainable society.

Opportunities
Earning the trust of society
Capabilities as a responsible IT company
Expansion of DX-related and Solution Businesses
Business creation through progress in introducing DX and solutions at various companies
Risks
Handling of social responsibility
Response throughout the NSD Group
Lack of technical knowledge
Drop in competitiveness due to insufficient accommodation of technological innovation
MaterialityMeasuresInitiatives and achievements
Social Innovation with IT
  • Solving social issues by creating and providing advanced technologies and DX-related solutions

We are focusing particularly on this materiality item to realize our vision: a company that offers a "Future for People and IT”. NSD is aiming for coexistence and co-prosperity with society by both solving social issues and enhancing its corporate value.

  • Development and provision of the "BizInsight" private generative AI platform to flexibly meet companies' demand for generative AI utilization.
  • Automated the preparation of production plans for white paperboard production processes to help enhance efficiency.
  • Supported secure and stable operation of water supply utilities from an IT perspective through the promotion of DX for next-generation water business.
  • Supported the introduction of the public service for personal identification in the "e-Kaga Citizen System" to satisfy the need for IT utilization for regional revitalization.
  • Developed a system to identify and quantify chemical substances in the customer's factories, contributing to improved operational efficiency.
Responsible Provision of AI
  • Formulating rules for responsible provision of AI, which is an IT company's mission
  • Established an "AI policy" and "AI rules", aiming for both the "promotion of AI business" and "thorough AI governance".

Social Initiatives

Creating a workplace where diverse human resources can thrive with job satisfaction

NSD develops its employees, an important asset for supporting its business, into true professionals and strives to create and maintain a comfortable working environment, creating a workplace where diverse human resources can play an active role with job satisfaction.

Opportunities
Acquisition of diverse human resources
Acquisition of human resources by promoting diverse working styles
Enhanced market competitiveness
Improved quality and productivity through the acquisition of diverse human resources
Risks
Outflow of human resources
Outflow of human resources due to increase in work styles throughout society
Drop in productivity
Drop in productivity and quality due to loss of communication, etc.
MaterialityMeasuresInitiatives and achievements
Human Resources Development
  • Skills development through extensive training systems and practical guidance
    • Improving technical skills as engineers (from the basics to exploring advanced technologies)
    • Improving human skills as members of society
  • In FY2024, conducted training with an emphasis on agile development and technology trends.
  • Expanded credentials eligible for financial incentives. As of the end of FY2024, there were a total of 5,095 employees with IT credentials.
  • Improved compensation through base pay increases, etc., from FY2022 to FY2025.
  • In FY2024, the personnel system was enhanced by dividing career paths into subcategories, etc.
Job Satisfaction for Employees
  • Providing appropriate and sufficient opportunities for employees to develop their skills
  • Having a fair personnel system that rewards contribution
Health and Productivity Management
  • Providing an environment where employees can work safely and in good health

Target

  • Continue average monthly overtime hours (non-statutory) of less than 20.0 hours
  • 75% or more of paid vacation days taken
  • In FY2024, the number of overtime hours worked was 16.9, continuing the trend of keeping it under 20.0 hours. The rate of paid leave taken was down 1.4 points from the previous year.
  • Selected as a “2025 Health & Productivity Stock” and recognized as a “2025 Certified Health & Productivity Management Outstanding Organization (Large Enterprise Category, White 500)”.
Diversity & Inclusion
  • Steady rollout of initiatives for women’s advancement in the workplace
  • Creating a comfortable working environment that respects employee diversity

Target

  • Ratio of female employees FY2030: 30% or more
  • Ratio of female managers FY2030: 20% or more
  • Percentage of male employees taking childcare leave FY2030: 80% or more
  • In FY2024, the ratio of female employees was 22.8%, and the ratio of women in management positions was 11.6%, both on an upward trend.
  • The ratio of women in new graduate hires in FY2025 was 49.7%.
  • Held seminars for male employees on childcare support systems. The ratio of male employees who took childcare leave in FY2024 was 66.7%, up about 17 points from the previous year.
  • Promoted understanding through D&I training, distribution of educational booklets on LGBTQ issues, etc.
  • Received the highest level of the Eruboshi Certification.
Supply Chain Management
  • Encouraging equal and fair dealings with business partners
  • Sharing and taking on sustainability challenges together with business partners
  • Regular sharing of information with senior management of business partners through the Sustainability Procurement Guidelines.
  • Conducted a survey on sustainability to find the status of these awareness-raising initiatives and held seminars to promote sustainability activities and health and productivity management.

Governance

Strengthening the foundation for the Company’s existence

In addition to prudent and efficient implementation of corporate governance, we, as a company that handles important information, will strive to handle information assets safely and securely and earn the trust of society.

Opportunities
Earning the trust of society
Capabilities as a responsible IT company
Risks
Cyber risks
Information leaks and cyber-attacks caused by unauthorized access
Handling of social responsibility
Prudent business operations throughout the NSD Group
MaterialityMeasuresInitiatives and achievements
Corporate Governance
  • A Board of Directors that supports highly effective supervision and transparent management decisions
  • Officer remuneration system to support business execution that leads to efficient and sustained growth
  • Four of the eight directors and two of the three Audit & Supervisory Board members are independent outside officers.
  • Director remuneration consists of base remuneration, bonuses, and stock-based remuneration (at least 40% is incentive remuneration).
Compliance
  • Fostering and enforcing an awareness around compliance
  • Ensuring fair trade and preventing corruption
  • Preventing compliance violations, etc.
  • Regularly conducted training on important laws and regulations such as Japan’s Subcontractor Act and Anti-Monopoly Act, as well as on harassment prevention (maintained a 100% participation rate).
  • Compliance status is reviewed by the Risk Management Committee. Issues and other matters are reported to the Board of Directors.
Data Privacy & Security
  • Improving employee literacy on information security
  • Strengthening security through measures against cyberattacks, vulnerability diagnostics, etc.
  • Regularly conducted training on information security and the protection of personal information (maintained a 100% participation rate).
  • The Information Security Committee meets monthly to discuss company-wide security measures, etc.
  • Reinforced measures to prevent unauthorized access and malware infection, etc.