Materiality Topics

Identification of materiality

We identified NRI’s materiality (key issues) from a management perspective and the perspective of external stakeholders by referring to international standards and guidelines, requirements from ESG evaluation organizations, consistency with corporate philosophy and growth strategy, and opinions of outside directors and experts.
In formulating our long-term management vision "NRI Group Vision 2030" (V2030), we have reidentified our materiality based on expectations and requests from our stakeholders (impact on the environment and society) and concepts such as double-materiality, in addition to the financial impact on the NRI Group. When identifying the materiality issues, we debate with external directors and experts and hold management discussions (STEP 3 in the figure below). In March 2023, we made a decision on materiality as part of our Basic Sustainability Policy (STEP 5 in the figure below).
In light of changes in the NRI Group's business and social environment, we have assessed the impact on the NRI Group's business and finances and identified risks and opportunities related to sustainability. Based on these results, the Sustainability Committee considers the need to review our materiality analysis on an annual basis.

1. Identification process of materiality

2. Materiality

The eight materiality issues made up of three tiers of “value created,” “capital generating value” and “management base (ESG)” are positioned as key elements in the formulation of business strategy and the management decision-making process.

Value Creation

Creating a sustainable future society

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	2030 Goals	Major Initiatives	KPI	FY 2025 Targets	FY 2023 Results
Co-create a thriving future society through expansion of digital social capital	Derive value from excellent human capital and intellectual capital to expand digital social capital	Business model transformation DX consulting, analytics Expand business by utilizing AI Social DX (e.g. Utilization of My Number, regional revitalization, etc.) Financial DX Policy proposals, advocation, Information & knowledge sharing, etc.	Overall investment and spending on measures for DX 2.0/3.0 that transforms industries and society	¥63.0 billion^*1	¥15.1 billion
Co-create an Optimal Society through effective utilization of its resources	Effectively utilize resources (such as human resources, public assets, IP) and recycle natural resources through the use of business PF and data analytics	Business process transformation Strategy/operations/systems consulting Value chain DX (CO₂ visualization, circular economy platforms creation) Shared operation through business PF STAR, BESTWAY, etc.	Revenues of business platforms that help to achieve an optimal society	¥141.0 billion	¥137.4 billion
through sophistication of infrastructure Co-create a safe and secure society	Provide highly advanced IT infrastructure to protect social infrastructure and data from disasters and cyber risks	Sustainable social infrastructure IT infrastructure transformation Security, cloud services Stable service operation Disaster management, disaster recovery support, etc.	Revenues related to safety and security to enable a more resilient society^*2	¥216.0 billion	¥185.5 billion

2030 Goals

Major Initiatives

KPI

FY 2025 Targets

FY 2023 Results

Co-create a thriving future society

through expansion of digital social capital

Derive value from excellent human capital and intellectual capital to expand digital social capital

Business model transformation
- DX consulting, analytics
- Expand business by utilizing AI
- Social DX (e.g. Utilization of My Number, regional revitalization, etc.)
- Financial DX

Policy proposals, advocation, Information & knowledge sharing, etc.

Overall investment and spending on measures for DX 2.0/3.0 that transforms industries and society

¥63.0 billion^*1

¥15.1 billion

Co-create an Optimal Society

through effective utilization of its resources

Effectively utilize resources (such as human resources, public assets, IP) and recycle natural resources through the use of business PF and data analytics

Business process transformation
- Strategy/operations/systems consulting
- Value chain DX (CO₂ visualization, circular economy platforms creation)

Shared operation through business PF
- STAR, BESTWAY, etc.

Revenues of business platforms that help to achieve an optimal society

¥141.0 billion

¥137.4 billion

through sophistication of infrastructure

Co-create a safe and secure society

Provide highly advanced IT infrastructure to protect social infrastructure and data from disasters and cyber risks

Sustainable social infrastructure
IT infrastructure transformation
- Security, cloud services
Stable service operation
Disaster management, disaster recovery support, etc.

Revenues related to safety and security to enable a more resilient society^*2

¥216.0 billion

¥185.5 billion

※1Cumulative values during the term of MTP2025
※2Direct to Consumer

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Value Creation Capital

Human and intellectual capital are the source of value creation

	2030 Goals	Major Initiatives	KPI	FY 2025 Targets	FY 2023 Results
Advance human capital through bold actions and growth of diverse professionals	Create a workplace where highly skilled professionals with diverse values gather to grow	Enhance capability to realize the growth story Promote diversity and inclusion Improve growth opportunities for each individual, etc.	Employee engagement score (NRI payroll) Female opportunity offering rate^*3(non-consolidated)	More than 70 continued 17%	71 15%
Accumulate intellectual capital through continuously evolving our outstanding business model	Continuously evolving of the source of our competitiveness (such as business model, brand, and capability)	Evolve business models (e.g., productivity innovation by utilizing AI & expand software assets) Create a continuously evolving brand (e.g., enhanced content for Information & knowledge sharing) Strengthen organizational capability to support business development (e.g., quality control, productivity innovation), etc.	Amount of investment in creating and accumulating intellectual capital	¥41.0 billion^*4	¥14.1 billion

※3Percentage of women responsible for projects and businesses
※4Cumulative values during the term of MTP2025

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Management Basis (ESG)

Extending ESG to the supply chain

	2030 Goals	Major Initiatives	KPI	FY 2025 Targets	FY 2023 Results
Contribute to global environment through collaboration with business partners	In collaboration with business partners with Scope 3 vision, create a sustainable environment globally and conserve natural capital while promoting more sophisticated use of renewable energies	Reduce greenhouse gas emissions, and promote renewable energy use (Scope 1+2) Take measures to reduce greenhouse gas emissions in Scope 3, etc.	Greenhouse gas emissions reduction rate(Base year: 2019) (Scope1+2) Greenhouse gas emissions reduction rate(Base year: 2019) (Scope3)^*5 Renewable energy usage rate	FY2030 Targets Scope1+2：Reduce by 97%^*6 Scope3：Reduce by 30% Renewable energy usage rate：100%	Scope1+2：86% decrease Scope3：21% increase Renewable energy usage rate：95%
Fulfill our social responsibilities through strengthening of relationships with stakeholders	Fulfill social responsibilities in the entire supply chain, such as good relationships with stakeholders, creating a healthy workplace, and commitment to human rights	Employee well-being Initiatives concerning human rights and labor practices (including AI ethics, etc.) Build and strengthen partnerships with business partners, stakeholders and communities, etc.	Rate of consent to the NRI Group Business Partner Code of Conduct^7or possessing own such codes of conduct^8	Domestic Group 90% （Ref：global 80%）	Domestic Group 80% （Ref：global 70%）
Evolve governance through realization of strategic risk control	Strive for balanced governance, including strategic risk-taking, to control risks with long-term perspective	Maintain/operate group-wide governance and internal control Enterprise risk management Strengthen quality control and information security management Promote disclosure and improve transparency Enhance compliance, etc.	Number of cases in which severe risk materializes (reports to regulatory authorities or incidents of equivalent severity for which the NRI Group is responsible)	0	5

2030 Goals

Major Initiatives

KPI

FY 2025 Targets

FY 2023 Results

Contribute to global environment

through collaboration with business partners

In collaboration with business partners with Scope 3 vision, create a sustainable environment globally and conserve natural capital while promoting more sophisticated use of renewable energies

Reduce greenhouse gas emissions, and promote renewable energy use (Scope 1+2)
Take measures to reduce greenhouse gas emissions in Scope 3, etc.

Greenhouse gas emissions reduction rate(Base year: 2019) (Scope1+2)
Greenhouse gas emissions reduction rate(Base year: 2019) (Scope3)^*5
Renewable energy usage rate

FY2030 Targets

Scope1+2：Reduce by 97%^*6
Scope3：Reduce by 30%
Renewable energy usage rate：100%

Scope1+2：86% decrease
Scope3：21% increase
Renewable energy usage rate：95%

Fulfill our social responsibilities

through strengthening of relationships with stakeholders

Fulfill social responsibilities in the entire supply chain, such as good relationships with stakeholders, creating a healthy workplace, and commitment to human rights

Employee well-being
Initiatives concerning human rights and labor practices (including AI ethics, etc.)
Build and strengthen partnerships with business partners, stakeholders and communities, etc.

Rate of consent to the NRI Group Business Partner Code of Conduct^*7or possessing own such codes of conduct^*8

Domestic Group 90%
（Ref：global 80%）

Domestic Group 80%
（Ref：global 70%）

Evolve governance

through realization of strategic risk control

Strive for balanced governance, including strategic risk-taking, to control risks with long-term perspective

Maintain/operate group-wide governance and internal control
Enterprise risk management
Strengthen quality control and information security management
Promote disclosure and improve transparency
Enhance compliance, etc.

Number of cases in which severe risk materializes (reports to regulatory authorities or incidents of equivalent severity for which the NRI Group is responsible)

※5Calculated based on a simplified calculation method in accordance with the Ministry of the Environment’s guidelines.　 Actual reduction effects are not reflected in the calculation figures (a review of the calculation method is currently under consideration).
※6Neutralization of residual emissions
※7Including environment, human rights, etc.
※8Consenters or holders of equivalent standards in NRI Group’s procurement partner companies, such as system development contractors

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