Message from the President
Further accelerating its transformation to realize a “better future”
We believe that a healthy society and economy as well as comfortable and well-being lives are possible on a sustainable earth. In recent years in particular, the environment, society and economy have undergone dramatic changes and the risks (variable factors) that affect management are becoming increasingly diverse and extending across a wide range.
Amid this environment, DNP will create a “better future” by responding flexibly and swiftly to an assortment of risks as well as by anticipating change and spurring reforms on its own.
In March 2024, DNP specified the actions that should be taken and the type of value that should be created to realize the “four societies”, which are each mutually interrelated, aimed for as our “better future” and identified “materiality” as a key issue for continued growth together with society.
As activities based on materiality, we are currently promoting initiatives in accordance with the Business Strategy, Financial Strategy and Non-financial Strategy of our Medium-term Management Plan. DNP is also working to implement thorough risk management that focuses on the entire supply chain to minimize the negative impacts of its business activities on society and the environment. By “creating value” and “strengthening business base” that supports this, DNP will solve social issues as well as create new value that meets people’s expectations and work to achieve sustainable growth for the DNP Group.
Initiatives related to the environment
Balancing economic growth and the global environment
DNP continually strives to enable the harmonious coexistence between its business activities and the global environment and it promotes activities with a keen awareness of the environment throughout the entire supply chain as it aims to achieve nature positive. In recent years, DNP has accelerated efforts to solve environmental issues especially as climate change, marine pollution and loss of biodiversity become increasingly serious.
In responding to climate change, which is one of our key issues, we are promoting such measures as transforming our business portfolio, strengthening our energy saving activities and accelerating the introduction of renewable energy to achieve carbon neutrality by 2050. DNP is also placing emphasis on reducing discharge of unneeded materials and recycling as it strives to realize a circular economy. To further accelerate these efforts, in March 2024 DNP updated its environmental targets so that they are more aggressive.
DNP is also promoting initiatives to preserve the ecosystem throughout the supply chain. For example, we are focusing on developing products and services that are essential for realizing a next-generation mobility society and a decarbonized society, developing and utilizing low-carbon materials, and reducing CO2 emissions for each product unit.
We will continue working to solve various environmental issues to realize nature positive.
Initiatives related to society
Supporting active participation of employees , who are the driving force in value creation
The key base and source of strength for the DNP Group in creating a better future is the presence of every employee. On the basis of our Human Capital Policy, which prescribes our universal and basic approach to human resources, we focus on supporting active participation of our employees, who are the driving force in value creation as well as irreplaceable assets and are accelerating efforts to strengthen and maximize our human capital.
To drive unprecedented transformation beyond our traditional path, it is important for each employee to be independent, acquire the necessary knowledge and skills on their own initiative, fulfill their roles to the fullest and further develop their own strengths. DNP supports “employees’ independent career autonomy toward value creation” and is promoting the nurturing of human capital who can be active both within and outside DNP. We will significantly increase “human creativity (added value productivity)” globally to clearly connect this investment in human resources to the enhancement of corporate value.
Respect the differences of each person, accept one another and promote diversity
To significantly enhance human creativity, DNP actively promotes diversity and inclusion (D&I). Additionally, to develop and provide optimal value to the diverse people living in our diverse society, we seek to maximize the capacity of our organization by respecting every difference among all employees, accepting one another and multiplying the strengths derived from such diversity. For example, as part of efforts to promote the active roles of women, we are working to nurture the next generation of leaders with the goal of increasing the ratio of female executives to 30% by 2030. Moreover, respect for human rights has become more important than ever before as our business activities expand globally. Based on this awareness, we are strengthening our management system that is premised on respecting human rights such as by formulating the Human Rights Policy and promoting human rights due diligence.
Initiatives related to governance
Continuing to be a resilient organization that is trusted by society
For the DNP Group to continue providing value, we believe that we must improve our corporate value and continue to be a company that is always trusted by all stakeholders. With this in mind, we are working to further strengthen and enhance corporate governance. We have built and are operating a system that enables accurate management decision-making, proper and swift business execution based on these decisions, and the supervision and auditing of these. At the same time, we provide thorough training and education to raise each individual’s awareness of compliance. Based on this fundamental approach, DNP has adopted the organizational design of a company with a Board of Statutory Auditors and introduced a system with outside directors and corporate officers in addition to establishing and operating an advisory committee composed of independent outside directors.
Moreover, as part of these efforts, three organizations are further strengthening their collaboration. These organizations consist of the Sustainability Committee, which manages medium- to-long-term risks and identifies business opportunities and reflects these in management strategies; the BCM Promotion Committee, which works to ensure the safety of employees and maintain continuity of production activities even in the event of emergencies such as natural disasters, and the Corporate Ethics Committee, which seeks to reduce risks by increasing employee awareness with regard to compliance. DNP will continue to respond to company-wide risks in a timely and appropriate manner as well as accelerate efforts to create a better future for ourselves.
President
Chairperson of the Sustainability Committee
Yoshinari Kitajima