For the Nitta Group, addressing environmental challenges, including climate change, is a key management issue. In order to enhance our efforts aimed at meeting the sustainability-related challenges facing society, we established the Sustainability Committee on May 13, 2022 and transferred to it some of the duties which had previously been handled by the CSR Promotion and Risk Management Committee.
The Sustainability Committee is chaired by the president and meets four times a year to deliberate, from a medium-to-long-range and ESG perspective, on the risks and opportunities created by climate change, as well as how the Nitta Group should respond to climate change risks, based on the NITTA Group Mission, the NITTA Group Code of Conduct, and the Sustainable Management Policy. The results of these deliberations are reported four times per year to the Board of Directors, which then deliberates and decides on important matters based on these results.

We have studied the risks and opportunities that climate change presents for Nitta Group business. Among these, we have identified transition risks and opportunities arising from such factors as changing governmental policies, regulations, and other social demands. We have identified physical risks and opportunities arising from such factors as increasingly extreme weather phenomena.
In analyzing possible scenarios, we utilized scientifically grounded scenarios presented by the International Energy Agency (IEA) and others to investigate potential impact on Nitta business. Our most recent scenario analysis looked at the entire supply chain, including raw material and parts procurement, product development, manufacturing, and sales, for the Nitta Group’s belt and rubber products business and hose and tube products business. We considered the impact that a 4°C temperature rise scenario and 1.5°C temperature rise scenario would have on this business in 2030.

The Nitta Group recognizes that the changes resulting from climate change is a major risk factor and therefore works, through the Sustainability Committee (which was entrusted in May 2022 with the duties previously handled by the CSR Promotion and Risk Management Committee), to assess, avoid, mitigate, and prevent the risks posed by climate change.
As a general rule, the Sustainability Committee meets four times per year and, in order to assess the impact of climate change on Group business, undertakes scenario analyses and other measures to identify, analyze, and rate climate change risks and opportunities. The committee then provides the Board of Directors with a report four times a year on the risks and opportunities it identifies.

The Nitta Group pursues a basic policy of reducing greenhouse gas emissions arising from the production phase and, towards that end, is working to reduce emissions by 46% by fiscal 2030 (compared with fiscal 2013) and to achieve carbon neutrality by fiscal 2050. To reduce greenhouse gas emissions, we will advance three initiatives: (1) thoroughly implement energy-saving measures to reduce energy consumption, (2) expand the use of renewable energy, and (3) purchase greenhouse gas-free energy.