Materiality

We identify materiality in the environmental, social, and governance areas.

Materiality Determination and Review
Materiality / Initiatives / Indicators and targets

Materiality Determination and Review

We reviewed our materiality items and related initiatives in light of changes in the external and internal environment since the materiality items were originally identified in 2017. The following process was used to analyze and evaluate materiality issues from both Company and stakeholder perspectives.

Materiality Determination Process

Step 1	Confirm our corporate objectives Reaffirm our foundation in our corporate philosophy, vision, and values
Step 2	Identify internal and external issues Internal issues: Identify relevant issues through the corporate philosophy, the Group Code of Conduct, the Principles of Activities, the basic CSR policy, risk assessment results, the EGP2028 Medium-term Business Plan, and interviews with each department External issues: Identify items based on the Global Reporting Initiative (GRI) Standards, the Responsible Business Alliance (RBA), and the expectations of investors, business partners, and other stakeholders
Step 3	Evaluate materiality Organize and assess the identified issues, and designate the prioritized items as materiality items
Step 4	Verify suitability Items are compiled by the CSR Committee and reviewed and approved by the Management Committee and the Board of Directors

Materiality / Initiatives / Indicators and Targets

The materiality review identified 13 items of materiality in fiscal 2025. We accordingly launched initiatives for each materiality and set key performance indicators (KPIs) and targets.

Environment

Materiality	Conditions and issues	Initiatives	Indicators	Target
Addressing climate change	Glass manufacturing requires a significant amount of energy, making the reduction of greenhouse gas emissions from our melting furnaces an important issue. We are also adapting our business activities to address the risks and opportunities arising from climate change.	・Carbon Neutrality Action Plan (e.g., reducing GHG emissions)	CO₂ emissions (Scope 1 + 2) (consolidated) Note: Production weight ratio CO₂ emissions intensity (Scope 1 + 2) (consolidated) Note: Production weight ratio	36% decrease in fiscal 2030 (compared to fiscal 2018) 60% decrease in fiscal 2030 (compared to fiscal 2018) Carbon neutral in 2050
Using resources efficiently	Glass manufacturing requires substantial natural resources, and we have made it a top priority to reduce consumption, improve production efficiency, and minimize waste.	・Reduce natural resource consumption ・Reduce waste generation	Landfill waste intensity (domestic, consolidated) Notes: 1. Landfill waste generated from normal production activities 2. Weight-to-sales ratio	Domestic: maintain at 0.1% or lower Consolidated: reduce to 5.3% or lower (fiscal 2026)
Consideration for the environment	We operate several manufacturing sites near Lake Biwa and strive to maintain world-class production processes with minimal environmental impact to support sustainable development and protect the region’s biodiversity.	・Reduce water usage and protect the environment ・Participate in forest conservation activities to preserve biodiversity	Water withdrawal per unit (consolidated) Note: Weight-to-sales ratio Wastewater discharge per unit (consolidated) Note: Weight-to-sales ratio	Water intake intensity of 7.8㎥/t or less (fiscal 2026) Wastewater intensity of 5.3㎥/t or less (fiscal 2026)

Social

Materiality	Conditions and issues	Initiatives	Indicators	Target
Diversity and inclusion	We believe that the collective strength of a diverse workforce drives corporate growth. We actively recruit diverse talent and foster a workplace environment where employees respect one another’s human rights and work with motivation and a sense of purpose.	・Hire diverse human resources (women, people with disabilities, non-Japanese) ・Human resources system (evaluation, promotion, salary, benefits) ・Human rights (prohibition of discrimination and harassment, prohibition of child labor and forced labor, respect for workers’ rights) ・Employee engagement	Percentage of employees with disabilities (NEG and consolidated subsidiaries in Japan)	Medium-term: minimum 4.4% (by fiscal 2030) Long-term: minimum 4.6% (by fiscal 2035)
			Percentage of women among new hires(non-consolidated)	Minimum 25% (new graduates in career-track positions)
			Percentage of female managers (non-consolidated)	Minimum 2.0% (by fiscal 2028)
Human resources	We will work to elevate the capabilities of our workforce in pursuit of our vision of a workforce composed of “individuals capable of world-class performance in all areas.”	・Training and education (competence development, self-development, knowledge and skill transfer)	We cultivate employees capable of independently advancing and improving operations through ongoing programs and on-the-job training.	–
Safety and health	We seek to enhance employee motivation and retention and ultimately strengthen productivity and creativity across the company by continuously minimizing occupational risks and fostering a workplace where everyone can work with energy, safety, and well-being.	・Occupational health and safety (safety, workplace environment)	Occupational injury rate per 1,000 employees (consolidated)	1.1 or less
Safety and health		・Health and productivity management (physical and mental health, stress check analysis)	Presenteeism loss rate (non-consolidated)	Less than 23%
Responsible sourcing	We fulfill our social responsibilities concerning the environment, human rights, and in all areas throughout the entire supply chain.	・Consider the environment and human rights in supply chain procurement	Percentage of high-risk suppliers evaluated for quality, environment, and human rights (NEG and major consolidated subsidiaries)	100% (by fiscal 2028)
Coexistence with local communities	Good relationships with local communities are essential for the continuation of business activities. We build relationships of trust with local communities and contribute to their development by supporting local education, welfare, and environmental initiatives.	・Promoting the potential of glass (in-class presentations, participation in scientific events) ・Community contribution activities (food donations, cleanups)	Continuously conduct each activity	–
Advance glass science	We believe supporting basic research in glass, which is our core technology, and nurturing talent are essential for our sustainable growth. We advance the science of glass by working with higher education institutions and supporting education on glass topics.	・Develop human resources in the sciences (present university lectures) ・Support glass research at universities and other institutions (endowment lectures)	Continuously conduct each activity	–

Corporate Governance

Materiality	Conditions and issues	Initiatives	Indicators	Target
Compliance	A significant share of our manufacturing and sales is conducted overseas. Accordingly, we comply with international rules and all applicable laws and regulations and conduct our business with a strong commitment to ethics and integrity.	・Ensure compliance with laws and regulations and provide anti-corruption education ・Implement an annual Compliance Awareness Month ・Identify, assess, and respond to risks ・Ensure tax compliance	Number of legal actions for bribery, anti-competitive practices, and other violations (consolidated)	0 cases per year
Corporate governance	Ensuring diversity on the Board of Directors strengthens the supervisory function and enhances the competitiveness of business activities.	・Ensure diversity on the Board of Directors	Percentage of outside directors, including women	50% or higher
Management of confidential information	We take steps to minimize the risk of information leaks and cyberattacks that could disrupt corporate activities and to prevent incidents with significant impact.	・Committee activities ・In-house training (compliance, IT) ・Conduct incident response drills	Number of serious information security incidents (consolidated)	0 cases per year
Information disclosure	We disclose necessary information in a timely and appropriate manner to maintain strong relationships with all stakeholders.	・Disseminate information through various media ・Communicate with investors	Enhance continuous disclosure Increase dialogue with investors	–