Under its corporate philosophy, the Nishitetsu Group has contributed to the region’s sustainable development to remain a company that is useful to and trusted by society.
To address social issues for further growth in the future and to achieve sustainable growth and development together with the community, we have identified material issues that provide a high social contribution and a significant impact on corporate value.

Process for Identifying Material Issues

Step 1 Examining material issues

We analyzed global megatrends, socioeconomic conditions, SDGs, guidelines of international organizations, ESG assessment organizations’ evaluation items, industry trends, characteristics of each business, trends of other companies, etc., and examined candidates for material issues.

Step 2: Narrowing down and evaluating material issues

We evaluated our own material issues based on the situation our group is in, our corporate philosophy, the NNR Group CYD Vision 2025, and the 15th Medium-term Management Plan, as well as the level of importance to our own company and to our stakeholders.

Step 3 Identify material issues (themes)

We identified material issues through discussions by the Management Committee and ESG Promotion Committee.

Material issues and non-financial indicators

In the 17th Medium-Term Management Plan, we have established non-financial indicators to promote the steady execution of our business strategy and the resolution of key issues for sustainable management in an integrated manner. Moving forward, we will monitor these indicators in conjunction with the progress of the 17th Medium-Term Management Plan.

Material issues

Ideal image

Key metrics *Targets for Nishi Nippon Railroad (non consolidated)

FY

Target

E

Promoting business activities in harmony with the environment

Carbon neutral by 2050
Realization of a circular economy
Biodiversity conservation

• Reduction of CO2 emissions (Scope 1 and 2)

2035

60% reduction compared to FY2013

└Deploy environment friendly vehicles (electric buses, hydrogen buses, etc.)

2028

Cumulative total of 120 vehicles

• Percentage of newly built condominiums for sale meeting ZEH standards*

2028

100% (excluding some properties such as joint ventures with other companies)

• Projects in collaboration with local governments (decarbonization consulting, power source)*

2028

Cumulative total of 12 projects

• Efficient use of water resources

2028

15% reduction in water intake compared to FY2025 (per unit of revenue)

S

Pursuing safety and security

Establishment of the safety and security brand

• Number of responsible accidents and responsible incidents [Railways]*

Annually

0 responsible accidents/incidents

• Number of responsible fatal accidents and responsible passenger injury accidents [Buses]*

Annually

0 responsible fatal accidents
Number of responsible passenger injury accidents
(17 or fewer for route buses, 0 for chartered buses)

Helping develop sustainable and lively communities

Sustainable development of areas along railway lines

• Population within a station’s area of influence (1km radius) in priority areas

—

Monitoring

• Number of visitors to Tenjin and priority areas

—

Monitoring

• Passengers transported per actual kilometer traveled [Railways/Buses]

—

Monitoring

• Number of local governments deploying "KnowRoute" (Fukuoka area)

—

Monitoring

• Initiatives toward the practical application of autonomous driving*

2028

1 or more collaborative projects with local governments

• Percentage of cashless payments for non commuter passes*

2028

90%

Building partnerships with customers

Healthy and equal relationships with customers

• Implementation of brand image surveys

2026

Start survey

• Number of companies conducting customer satisfaction surveys

2026

Expand companies conducting the survey

• Number of member IDs

2028

Commercial/hotel members

• Number of users linking credit cards/apps/nimoca

2028

220,000 people

Building pleasant and rewarding workplaces

High employee engagement Establishment of DE&I

• Engagement survey score*

Annually

Exceeding the previous fiscal year

• Generative AI tool utilization rate*

2028

Utilization rate of 80%

• Number of hours of conventional work reduced through the use of generative AI*

Annually

Exceeding the previous fiscal year

• Digital literacy training attendance rate

2028

[Nishitetsu] Attendance rate: 99% / [Group] Attendance rate: 90%

• Human resource investment amount*

Annually

5% or more of operating profit

• Crew turnover rate [Railways/Buses]*

2028

5% or less

• Percentage of female managers*

2035

10%

• Growth rate in number of female employees (3 or more years of continuous service)*

2028

+5% compared to FY2023

• Percentage of male employees taking childcare leave*

Annually

95% or more

• Paid annual leave usage rate*

Annually

80% or more

• Employment rate of people with disabilities*

Annually

Maintain statutory employment rate

• Re-examination rate after health checkups*

2028

85% or more

• Incidence rate of employees on leave due to mental health issues*

2028

0.5% or less

• Smoking rate*

2028

27% or less

Respecting human rights

Establishment of business activities that respect human rights

• Implementation of human rights training for all officers and employees

Annually

Steadily implement

• Dialogue with rights holders*

Annually

Steadily implement

G

Ensuring the effectiveness and improving the transparency of corporate governance

Practicing management that is trusted by stakeholders such as customers, local communities, and shareholders

• Ratio of outside directors*

Annually

1/3 or more

• Number of meetings held with investors*

Annually

[IR] Exceeding the previous fiscal year / [SR] 3 or more companies per year

• Number of events held for shareholders*

Annually

Once a year or more

• Supplier questionnaire response rate [Accounting Department]*

2028

Response rate: 70%

• Implementation of supplier questionnaires [International Logistics]

2028

Implement domestically and overseas during the period

Thorough compliance

Establishment of compliance awareness

• Compliance self checks (response rate, formulation of improvement measures)

2028

Response rate: 80% / Formulation of improvement measures: 100%