Sustainability Management
The overall picture of sustainability management
Based on corporate philosophy, DNP is engaged in business activities that create a "better future" for itself, with a long-term perspective, aiming to realize a sustainable society and Well-being lives.
We have set forth "four societies" that we aim for as a "better future," and have defined the material issues necessary to realize them.
Sustainability Management Initiatives
Based on its corporate philosophy, the DNP Group aims to realize a "sustainable, better society and well-being lives" as part of its approach to sustainability management and is developing business activities to take the initiative in creating a "better future." To realize a “better future” and achieve sustainable long-term growth, DNP needs to appropriately identify and understand the impacts of diverse and rapidly evolving environmental, social, and economic changes on its business and assess both their negative impacts (risks) and positive impacts (opportunities). It then integrate these insights into its medium- to long-term management strategy, enabling it to mitigate risks while capitalize on business opportunities.
Furthermore, in addition to responding flexibly and swiftly to various changing factors, DNP also anticipate change, driveｓ its own transformation, and turnｓ such change into business opportunities, thereby enhancing both its corporate sustainability and the sustainability of the environment, society, and economy.
Governance
DNP believes that a healthy society and economy, as well as comfortable and well-being lives for people, can only be sustained on a sustainable earth. In recent years in particular, the environment, society, and economy have been changing rapidly, and the factors affecting management have become increasingly diverse and extensive. Against this backdrop, to enhance environmental, social, and economic sustainability and further promote the sustainable growth of the DNP Group itself, the Sustainability Committee, chaired by the Representative Director and President, with the Representative Director and Executive Vice President serving as Vice Chairman, and consisting of Directors and Executive Officers responsible for each headquarters division, is responsible for managing medium- to long-term management risks, identifying business opportunities, and reflecting these in management strategies. This committee works closely with the BCM Promotion Committee, which ensures employee safety and maintains production activities even in the event of a natural disaster, cyberattack, or other emergency, and the Corporate Ethics Committee, which aims to reduce risks by raising employee awareness of compliance, thereby covering company-wide risks and building a flexible and resilient governance system.
The Sustainability Promotion Committee meets quarterly in principle and may convene additional meetings as necessary. Its purpose is to ensure that the company’s approach to sustainability is appropriately reflected in its management strategy. The Committee discusses the following matters and reports its findings and recommendations to the Board of Directors:
- Managing medium- to long-term sustainability-related business risks, identifying business opportunities, and incorporating them into management strategy
- Formulating sustainability policies and overseeing their implementation across all divisions
- Identifying sustainability-related issues, setting goals and developing plans, monitoring the implementation of those plans, evaluating the progress of initiatives, and taking corrective and improvement actions
The Board of Directors receives reports on the Committee’s deliberations and resolutions, the status of its activities, and the outcomes achieved. Based on these reports, the Board deliberates on and oversees the appropriateness of the company’s sustainability policies and initiatives.
Strategy
Guided by its corporate philosophy of “Connecting individuals and society and providing new value,” DNP aims to realize “a sustainable society and more fulfilling lives” through sustainable management. Based on these principles and with a long-term perspective, DNP conducts business activities to create a “better future.” In March 2024, DNP identified its material issues, or “materiality,” by defining the value it seeks to create and the matters it needs to address. This materiality is critical both to realizing the four interconnected societies that constitute DNP’s vision of a “better future” and to ensuring that DNP continues to grow together with society.
Based on this materiality, DNP is advancing initiatives in line with the business, financial, and non-financial strategies set out in its Medium-term Management Plan. By creating new value and strengthening its management foundation, DNP seeks to achieve sustainable growth for the DNP Group. In particular, under its non-financial strategy, DNP positions “strengthening human capital,” “strengthening intellectual capital,” and “environmental initiatives” as key elements of its management foundation that contribute both to reducing risks and creating opportunities.
Risk Management
Under a flexible and resilient governance framework, DNP identifies risks and opportunities that may affect its businesses, taking into account drivers of change in the environmental, social, and economic landscape. DNP promotes integrated risk management to minimize the adverse impacts of these changes while expanding business opportunities through appropriate responses to the identified risks and opportunities.
DNP also assesses the significance of the identified risks and opportunities. Based on the assessment results, the Sustainability Promotion Committee designates those that could have a particularly significant impact on management as “significant risks and opportunities.” These significant risks and opportunities are incorporated into the business, financial, and non-financial strategies set out in the Medium-term Management Plan. They are also translated into specific measures for managing individual risks and creating business opportunities.
DNP assesses and reviews its risks and opportunities at least annually and continuously reviews them in response to changes in the external environment and progress in implementing its business strategies.
Indicators/Goals
DNP has established relevant indicators and goals to quantitatively assess and manage its responses to sustainability-related risks and opportunities. These indicators are used to monitor progress under the Medium-term Management Plan and individual initiatives. Progress is also regularly monitored by the Sustainability Promotion Committee and the Board of Directors.
The fiscal 2025 results and progress against each indicator and goal are presented on the respective thematic pages, together with information on DNP’s latest initiatives.