Oct. 06, 2020

Nippon Steel Corporation

On October 6, 2020, Nippon Steel Corporation published the Integrated Report and the Sustainability Report for fiscal 2020 (Japanese version).

The Integrated Report 2020, published for the second year, is constituted along the lines of the value creation process model of the International IR Framework, developed by the International Integrated Reporting Council (IIRC) and adopted by Nippon Steel so that the overall composition of the company can be better understood. Other ways we facilitate understanding include creation of a new section in the report on the company’s strategies to cope with risks and opportunities. Concerning the Environmental and Social aspects of ESG (Environmental, Social, Governance), the Integrated Report takes up materiality and relevance to factors of the value creation process while details on initiatives are written in the Sustainability Report.

The Sustainability Report 2020 comprehensively introduces ESG initiatives in order to facilitate understanding. Nippon Steel’s active engagement in Environmental priority issues is explained, while Social issues are presented in order of materiality with Key Performance Indicators (KPIs) for each issue. As coping with climate change, in particular, has become increasingly important, we have disclosed information according to the recommendation by the Task Force on Climate-related Financial Disclosures (TCFD) and have included a list of TCFD’s recommended disclosure items. We also began discussion onCO2 emission reduction targets and goals of Nippon Steel, which we plan to disclose within the current fiscal year. Moreover, our promotion of innovative technology development for the ”Challenge Zero” initiative, based on the notion that innovation is critically important in realizing a decarbonized society, is introduced in the report.

Main contents of the reports are as follows:

■Integrated Report

• Nippon Steel Group’s corporate philosophy
  
• Message from the President
  
• Attractiveness of steel
  
• History of our development
  
• The value creation process and Nippon Steel’s strengths
• Materiality of ESG issues
• Inputs (manufactured capital; natural capital; intelligent capital; human capital; financial capital; social and relationship capital)
• Business activities (Steelmaking value chain and the Nippon Steel Group’s business domains; Business summary by segment)
• Outputs and outcomes
• Results and outlook (FY2019 results; FY2020 outlook and toward returning to generate operating profit (non-consol.) post-COVID-19)
• Risks and opportunities, and Nippon Steel’s strategy (Pursuit of a lean & optimal production framework; Enhancement of globally-competitive strategic products in quality and quantity; Deepening of overseas business, addressing to local production and local consumption; Coping with climate change; Promoting DX)
  
• Corporate governance
• Financial information
• Stock information
  

■Sustainability Report

• Corporate philosophy, management principles
  
• Message from the President
  
• Attractiveness of steel; Nippon Steel Group’s challenge history; Business; Value creation process; Contribution to SDGs
  
• Materiality of ESG issues
  
• Environmental initiatives: 1) Coping with climate change; 2) Contributing to creation of a circular economy; 3) Promotion of environmental risk management; 4) Initiatives on conservation of biodiversity
• Social report: 1) safety and health initiatives; 2) Disaster prevention initiatives; 3) Quality-related initiatives; 4) Toward more stable production; 5) Respect for human rights and promoting diversity & inclusion; 6) Initiatives for human resources development; 7) Together with local communities
• Corporate governance
• Independent assurance report
• Awards received
  

We sincerely hope that the Integrated Report and the Sustainability Report help stakeholders better understand Nippon Steel. Through dialogues with stakeholders, we intend to continue improving both reports to become more useful for stakeholders to understand Nippon Steel. We will remain committed to contributing to sustainable society and improving corporate value.

Both reports are available to be downloaded from the following website URLs (At present, only in Japanese.)