About the Supplier Engagement Ratings

The CDP Climate Change Questionnaire is a survey of the world’s top companies by market capitalization to examine their greenhouse gas emissions reduction activities and climate change mitigation efforts. The CDP Supplier Engagement Ratings (SER) aims to accelerate emissions-related initiatives in global supply chains by creating a system that evaluates the collaborative efforts of purchasing organizations and companies with their suppliers and that recognizes best practices. The SER assessment is based on responses to questions in four key areas of the full CDP Climate Change Questionnaire (Governance, Goals, Scope 3 Management, and Supplier Engagement). Furthermore, the overall CDP Climate Change Questionnaire score is also considered as part of a company’s overall performance with respect to climate change. Companies that achieve the highest rating in the SER are recognized as Supplier Engagement Leaders. 653 companies, the top 8% of companies that responded to the full CDP Climate Change Questionnaire (131 of which were Japanese companies), made it onto the “Leader Board”, the highest possible rating, in the 2022 Supplier Engagement Ratings.

About NRI’s climate change-related engagement with business partners

To reduce greenhouse gas emissions from its business activities throughout its supply chain, the NRI Group has set a goal to have 70% of its business partners set SBTs³ for reducing their greenhouse gas emissions. Furthermore, the new targets announced in February 2023 set the goals of reducing Scope 3 emissions by 30% from FY2019 levels by FY2030 and achieving net zero⁴ emissions, including Scope 3, by FY2050⁵. To achieve this goal, we hold an annual “Sustainability Dialogue” with Japanese and international business partners to exchange views with each company on sustainability-related topics, including climate change. In FY2022, we also held a workshop for our business partners on setting greenhouse gas emission reduction targets. Furthermore, since FY2021, with the aim of more accurately determining our Scope 3 emissions⁶, we have been participating in the CDP Supply Chain Program7.
We believe that these efforts to reach out to our business partners on climate change have been internationally recognized as high-level, leading to our selection to the Leaderboard.

Under the corporate philosophy of “Dream Up the Future”, the NRI Group will continue to create new value together with its various stakeholders to address climate change and other social issues, to contribute to the creation of a sustainable future society.

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  CDP: CDP is a global non-profit organization whose primary activity is to drive corporations and municipalities to disclose information about their environmental initiatives, including climate change, water resource protection, and forest conservation, and to thereby encourage these initiatives, at the request of institutional investors and major purchasing organizations around the world with a strong interest in environmental issues,
  See the CDP’s website (English) for more about the CDP Supplier Engagement Ratings
  https://www.cdp.net/en/research/global-reports/scoping-out-tracking-nature-across-the-supply-chain

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  NRI Selected as an A List Company, the Highest Rating, in the CDP Climate Change Survey for the Third Consecutive Year
  NRI News Release: https://www.nri.com/en/news/info/cc/lst/2021/1213_2

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  SBT:
  Abbreviation of “Science Based Targets.” Greenhouse gas emission reduction targets are set by companies for the next five to ten years from the time of application, consistent with the levels required by the Paris Agreement. The SBT Initiative issues guidelines and certifies targets.
  SBT Initiative Website (English): https://sciencebasedtargets.org/

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  Net Zero:
  Refers to a state in which anthropogenic greenhouse gas emissions and removals are in balance, resulting in net zero greenhouse gas emissions to the atmosphere.

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  NRI Group Announces Net-Zero Emissions to be Achieved By 2050 - New greenhouse gas emissions reduction target set in accordance with SBTi’s Corporate Net-Zero Standard-
  NRI News Release: https://www.nri.com/en/news/newsrelease/lst/2023/cc/0224_1

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  Scope 3 emissions: Indirect emissions excluding Scope 1 (direct greenhouse gas emissions by the business itself) and Scope 2 (indirect emissions from the use of electricity, heat, and steam supplied by other companies). This refers to greenhouse gas emissions associated with manufacturing in the supply chain, employee commuting, business trips, etc.

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  CDP Supply Chain Program: A mechanism for participating member companies and organizations to request responses to questionnaires from their suppliers through CDP’s disclosure system.

For References

●NRI Group’s sustainability-related initiatives

• Website: https://www.nri.com/en/sustainability
• Comprehensive Report: https://ir.nri.com/en/ir/library/report.html
• ESG Data Book: https://www.nri.com/en/sustainability/library/back_number
• Sustainability Book: https://www.nri.com/en/sustainability/library/back_number