NEC Outlines “Materiality” for Accelerating Social Value Creation
Product name：NEC Outlines
- NEC releases Sustainability Report 2018 -
TOKYO, Sep 28, 2018 - (JCN Newswire) - NEC Corporation (NEC; TSE: 6701) announced details on its view of "materiality," the Company's priority management themes from an environmental, social and governance (ESG) perspective, under the Mid-term Management Plan 2020.
Since its founding in 1899, NEC has been providing value to customers and society through its business activities under the motto of "Better Products, Better Services." "NEC has defined its materiality with the formulation of the Mid-term Management Plan 2020," said Takashi Niino, President and CEO, NEC Corporation. "This outlines the approach to social value creation and connects our business strategies with ESG initiatives as a new declaration to our various stakeholders of our commitment to achieving the mutual growth of NEC and society."
Materiality is outlined in the NEC Sustainability Report 2018 and Integrated Report 2018 posted to the NEC Global website today. Materiality from the environmental point of view is also shown in the Annual Environmental Report 2018.
NEC became a signatory to the United Nations Global Compact(1) in 2005, which was founded on the basic principles of human rights, labor, environment and anti-corruption and continues to strive to minimize any burdens that business activities may have on society. With the newly identified materiality we will contribute to value creation for society through our businesses and to the achievement of the SDGs(2).
Overview of Materiality
We have identified nine priority management themes as materiality, arranging them in three layers as shown below. For each of the following themes, we established non-financial indicators for measuring progress. Further information on the indicators can be found in the NEC Sustainability Report 2018.
Materiality Identification Process
Aiming to define materiality, NEC held dialogue sessions with experts from fields such as sustainable management, civil society, and medium- to long-term investment in order to integrate social perspectives. Members of NEC who are responsible for sustainable management and relevant business departments also participated in these dialogue sessions.
Nine Priority Management Themes Arranged in Three Layers
We identified nine priority management themes and arranged them in three layers; "Fundamental priority themes for Social Value Creation," "Processes connected with maximizing NEC strengths, such as economic value and social value" and "Priority themes for maximizing value."
1. Sustainable Growth Enablers
NEC has identified the following 5 themes within the foundation of management as a whole.
- Governance and compliance
- Environmental action with a particular focus on climate change
- Sustainability and socially literate human resources
- Privacy policies and measures aligned with societal expectations
- Security to maximize ICT possibilities
2. Engines of Change
NEC identified the following 2 themes as processes which will lead to maximizing the economic and social value/strengths of NEC.
- Dialogue and co-creation with our stakeholders
- Innovation management
3. 2020 Growth Focus to Create Social Value
NEC will create social value through the following growth areas.
- NEC Safer Cities(3)
- NEC Value Chain Innovation(4)
The NEC Group is promoting "social solutions projects" which create social value in the form of safety, peace of mind, efficiency, and fairness on a global scale. By combining the latest cutting-edge ICT and knowledge, NEC is working to achieve an efficient and refined society in which people can live brighter and richer lives.
(1) The United Nations Global Compact:
An initiative that calls on companies worldwide to align their strategies and operations with ten universal principles in four fields of human rights, labor, the environment and anti-corruption. NEC joined in 2005.
Sustainable Development Goals that consist of 17 goals to achieve by 2030 based on issues such as poverty, hunger, energy, climate change and peace.
(3) NEC Safer Cities:
NEC's business domain to contribute to realizing safe, secure, efficient and fair cities, where individuals can exhibit their potential to the full and live better lives, by utilizing cutting-edge technology such as biometric authentication, AI, and the IoT.
(4) NEC Value Chain Innovation:
NEC's business domain to create new value by developing cutting-edge technologies and promoting co-creation with customers in order to connect people, goods, and processes, reaching across the boundaries between enterprises and industries. In doing so, NEC will support a more sustainable planet, sustainable growth for companies, a society where people can live in abundance, and a brighter world for the future.
About NEC Corporation
NEC Corporation is a leader in the integration of IT and network technologies that benefit businesses and people around the world. The NEC Group globally provides "Solutions for Society" that promote the safety, security efficiency and fairness of society. Under the company's corporate message of "Orchestrating a brighter world," NEC aims to help solve a wide range of challenging issues and to create new social value for the changing world of tomorrow. For more information, visit NEC at https://www.nec.com.
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