Nippon Steel’s Materiality

1. Materiality with due consideration of the corporate philosophy and 1 priorities in manufacturing
Our Corporate Philosophy (Our Values) states: “The Nippon Steel Group will pursue world-leading technologies and manufacturing capabilities, and contribute to society by providing excellent products and services.” Concerning “provision of excellent products and services,” our critical mission as a responsible manufacturing company is to reliably produce and deliver quality products that satisfy customers. Needless to say, the prerequisites to enable this mission include “safety, environment, and disaster prevention” as well as thorough compliance to rules and regulations. The “world-leading technologies and manufacturing capabilities” are realized by our human capital. Securing and fostering of outstanding personnel is an important challenge to be overcome in order to strengthen overall manufacturing capabilities. We firmly believe that respect for human rights and diversity & inclusion, as well as promotion of physical and mental wellness strength are the basics for our employees to work vigorously. With regard to the relationship with society, we must maintain good relationship with the community where our steelworks or other facilities are located. This is indispensable for us to continue operating business in the future. We are pledged to operate in an environmentally-friendly manner and maintain good communication with local communities, as a corporate citizen.

2. Materiality with due consideration of the company’s value creating process and potential changes in business environment
A base of our value creation process is to use a diverse range of financial/non-financial assets and competitive advantages, and to provide products and solutions to customers. In order to reproduce such processes, stable production and continual profit generation are indispensable. We have also been engaged in building of a recycle-oriented society through reduction of CO2 emissions by the three “Eco” initiatives and innovative technology development, and recycling of industrial waste (such as recycling of plastics). As our recent initiatives, we have played a leading role in solving various global environment-related challenges, including formulation of the Japan Iron and Steel Federation’s long-term vision for climate change mitigation “A challenge towards zero-carbon steel”; calculation of environment impact based on the Life Cycle Assessment (LCA) to be adopted by the International Organization for Standardization (ISO) and the Japan Industrial Standards (JIS); and a proposal to promote the “Creation of Sea Forests” and “Blue Carbon” (the carbon captured and sequestered by oceans and coastal ecosystems). We are confident that such initiatives for raising long-term corporate value will contribute to sustainable social development.

3. Corporate value enhancement and profit distribution
We are committed to continuing operations as a sustainably growing company by generating profit and raising corporate value from business activities, including Sustainability initiatives. We will also contribute to society by providing excellent products and services, and distributing profit to employees, government, shareholders, and other stakeholders.

4. Thorough compliance
As a responsible leading company, we thoroughly adhere to laws and regulations, which is fundamental to all of our activities. It should be achieved by our independent efforts, based on our corporate philosophy, value, code of conduct and alike.

Nippon Steel Corporation Group Code of Conduct
(1) Act with a strong sense of ethical values and in compliance with laws and regulations.
(2) Develop and provide socially beneficial, good-quality and safe products and services, thereby earning the satisfaction and trust of our customers.
(3) Engage in fair and free competition and proper business practices, and maintain a sound and proper relationship with political bodies and government agencies.
(4) Actively engage with the public, disclosing corporate information in a fair and proactive manner, while carefully protecting and managing personal data and other types of information.
(5) Create a healthy, safe and comfortable work environment, and respect the character and diversity of our employees.
(6) Actively contribute, as a member of society, to global environmental preservation and to local communities and society.
(7) Reject any relations with antisocial forces and organizations, and take a firm stance against all improper demands.
(8) Comply with laws and regulations of relevant countries and regions, and respect international norms, cultures and customs in conducting our business operations.
(9) Abide by this Code of Conduct and set up an effective mechanism to implement it. If a violation of this Code occurs, act promptly to determine the cause and prevent similar violations in the future, and make appropriate public disclosure.

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