Sustainability Management

Sustainability Promotion Structure

To promote sustainability, Nihon Kohden has established the Sustainability Promotion Committee, composed of the president, operating officers, and general managers, and Sustainability Promotion Meeting, composed of the representatives of 17 divisions. In July 2021, Nihon Kohden also established the Advisory Board consisting of four* external experts to incorporate outside perspectives on sustainability activities.
The Sustainability Promotion Committee holds a meeting twice a year and formulates the policies and directions. The Sustainability Promotion Meeting is held four times a year to establish and promote annual plans based on the policies and directions formulated by the Sustainability Promotion Committee and reports on the progress of those plans to the Sustainability Promotion Committee. Members of the Sustainability Promotion Meeting, who represent the departments in charge of each materiality, report on the progress of sustainability activities and exchange opinions with other members at regular meetings. The Company strives to implement sustainability activities in its daily business operations, in close coordination with the Compliance Committee, Quality Control Committee, and Environmental Committee. The Advisory Board Meeting is held twice a year to discuss and advise on overall sustainability promotion.
Furthermore, in order to raise awareness of the SDGs within the Company, we take actions such as educating employees in Japan and overseas through webinars.

Sustainability Promotion Structure

Sustainability Promotion Committee
* As one of the Advisory Board members was appointed as an outside director in June 2022, the Advisory Board currently consists of three members.

Sustainability Promotion Meeting Organizational Structure

Sustainability Promotion Meeting Organizational Structure

Material issues and KPIs

In order to review the progress of sustainability activities, Nihon Kohden’s management has set KPIs (Key Performance Indicators) and assigned departments for each materiality. 
We disclose the results each year in the Nihon Kohden Report and our website.
* Click the image to enlarge.

KPI progress reports

Materiality KPI Targets Note Results in FY2021
Improve resuscitation rates by expanding access to AEDs Number of AEDs sold in the world  [Target]
Cumulative number of products sold for 3 years worldwide: Over 350k units
Number of AEDs sold:
100k units
(Rate of progress 29%)
・Japan 51k units
・Overseas 49k units
Utilization rate of AEDs in Japan and the U.S.  [Actual]
Actual utilization rate of AEDs in Japan and the U.S. for 3 years
(No numerical target (follow-up item))
Utilization rate is the rate of out-of-hospital cardiac arrests responded to by laypersons using AEDs (all AEDs, including our products). Utilization rate:
Japan 4.2%
U.S. 9.0%
Provide educational opportunities for medical professionals in emerging countries Promote training in epilepsy diagnosis in Indonesia  [Target]
Start operations at four local education centers by the end of FY2023
Start operation:
0 centers
Number of educational seminars held, hosting countries, participants (including online programs) [Target]
・Cumulative number of hosting countries for 3 years: Over 5 countries (North America, Latin America, Europe, Asia, Middle East)
・Cumulative number of participants for 3 years: Over 100k
・Number of hosting countries:
3 countries
(Rate of progress 60%)
・Number of participants:
(Rate of progress 28%)
Automatic control of medical equipment R&D investment in a robotic anesthesia system  (*) (*)We have not set individual investment target figure for each KPI, but the cumulative three-year investment target for the whole Nihon Kohden Group is expected to be approximately 20 billion yen.  
R&D investment in closed loop control of ventilators (*)  
Develop and provide sensors which are gentle on the patient R&D investment in new sensors  (*)  
Number of products sold that have esCCO*1, synECi18*2, and iNIBP*3 installed  [Target]
Cumulative number of products sales for 3 years worldwide: Over 85k units
Number of products sold:
34k units
(Rate of progress 40%)
・Japan 15k units
・Overseas 18k units
Create a peaceful patient environment with advanced alarm technology R&D investment in improved alarm algorithms for patient monitors  (*)  
Number of hospitals that utilize Alarm reports*4 for improving workflow in Japan and the U.S. [Target]
Cumulative number of new contract hospitals for 3 years:
・Japan: Over 240 hospitals
・U.S.: Over 25 hospitals
Number of new contract hospitals:
86 hospitals 
(Rate of progress 32%)
・Japan 84 hospitals
・U.S. 2 hospitals
Contribute to care for patients with heart failure, brain disorders and infection R&D investment in early warning scores  (*)  
R&D investment in new parameters and algorithms for heart failure care  (*)  
Improve product utilization rate by remote monitoring Number of MD Linkage*5 sold and number of connected models  [Target]
・Cumulative number of connected models for 3 years worldwide: Over 7 models
・Cumulative number of connected units for 3 years worldwide: Over 5k units
・Number of connected models:
5 models
(Rate of progress 71%)
(MEK-1301/02/03, MEK-91/9200)
・Number of connected units:
566 units
(Rate of progress 11%)
Number of advance notifications before trouble with products occurs  [Actual]
Actual cumulative number of notifications for 3 years
(No numerical target (follow-up item))
Only in Japan Number of notifications:
1,973 cases
Eliminate health disparities through telemedicine Number of network-oriented products sold like LAVITA*6  [Target]
Cumulative number of contract hospitals for 3 years: Over 600 hospitals
Only in Japan Number of contract hospitals:
149 hospitals
(Rate of progress 25%)
R&D investment in realization of remote support for ICUs  (*)  
Foster a corporate culture of pride in contributing to healthcare Employee satisfaction  [Target]
FY2021: Establish operational policy and start survey (Only in Japan)
FY2022: Publication of survey results and subsequent implementation of ongoing surveys
Conducted survey of all 4,400 employees in Japan
Develop human resources who can succeed globally  [Target]
Cumulative hours of education for 3 years: Over 45 hours per person
House of education by job level provided by the Phoenix Academy (Human Resources Development Center). This training content will enable new employees and managers to acquire the knowledge and skills required for each level. Education hours per person:
18.6 hours
(Rate of progress 41%)
Pursue the highest level of quality in the world across the value chain Net Promoter Scores  [Target]
FY2021: Set up a system and start survey 
FY2022: Set targets based on survey results of previous year
Strive to achieve a 1 point improvement every year
Start survey
Improved 12 points compared to the previous year
Number of recalls [Actual]
Cumulative number of products recalled for 3 years(No numerical target (follow-up item))
We have set and are working on achieving a quality target of "zero recalls for 200 days or more". 6 cases
Ensure strict compliance and strengthen group governance Establish and strengthen compliance programs of the Group  [Target]
Zero occurrence of serious incidents of non-compliance
1 case (Japan)
Establish and promote Global Business Management Policy in overseas subsidiaries  [Actual]
Monitoring implementation of Global Business Management Policy by managers of all overseas subsidiaries over the next 3 years
(No numerical target (follow-up item))
Introduce Global Business Management Policy and started implementation
Strengthen internal control over domestic sales   [Actual]
Introduce system controls for pre-order processes and monitor their application
(No numerical target (follow-up item))
Introduce the system and started implementation
Realize a carbon-free society CO2 emissions  [Target]
・FY2023: 15.2% reduction compared to FY2020 per unit of sales (ISO 14001 certified sites, Scope 1, 2)
・Collect and disclose CO2 emissions for the whole group by end of FY2023 (Scope1, 2, 3)
・CO2 emissions:
34.1% reduction compared to FY2020
・Collect and disclose CO2 emissions:
Preparing for third-party verification
Number of models and sales ratio of environment-friendly products [Actual]
Number of models in next 3 years
(No numerical target (follow-up item))
Cumulative sales ratio of products for 3 years worldwide: Over 20%
・Number of models:
63 series
・Sales ratio of environment-friendly products:
Amount of waste from disposal of products and parts  [Target]
FY2023: 8% reduction of products and parts retirement compared to FY2020
21.3% reduction compared to FY2020

*1  esCCO (estimated Continuous Cardiac Output): Nihon Kohden’s unique technology which can estimate cardiac output continuously and painlessly based on ECG and pulse waves obtained from pulse oximetry. Previously, cardiac output could not be measured without inserting a catheter into the pulmonary artery. But now, with routinely monitored parameters, non-invasive and continuous estimates can be made without pain or strain on the patient.
*2  Synthesized 18-lead ECG: Synthesized 18-lead ECG uses the 12-lead ECG waveforms to mathematically derive the waveforms of the right chest leads (V3R, V4R, V5R) and back (V7, V8, V9).
    The measurement procedure is the same as the standard 12-lead ECG but more information can be obtained. 18-lead synthesized ECG is expected to be useful in detecting right ventricular infarction and posterior infarction.
*3  iNIBP (non-invasive blood pressure measurement algorithm): Nihon Kohden’s unique non-invasive blood pressure measurement algorithm using a linear inflation technology that completes the measurement while the cuff is inflating. This algorithm was developed with the concept of reducing the burden and stress of patients and medical personnel involved in blood pressure measurement as much as possible. Compared to previous measurement methods, it can measure faster and does not apply more pressure than necessary, reducing the burden and stress on the patient.
*4  Alarm report: This is a report that objectively evaluates the type and frequency of alarms based on alarm information from telemetry systems and central monitors. This report is expected to contribute to improving the medical environment by reducing the occurrence of false alarms.
*5  MD Linkage (Medical device remote monitoring system): This is a network system that automatically sends error messages and self-test information generated by medical devices to our server via a remote terminal. By automatically detecting equipment abnormalities and failures and notifying us, we can respond quickly and contribute to reducing product downtime.
*6  LAVITA (Medical and nursing care network system): This is a network system that can easily collect patient vital data, automatically send it to a cloud server, and share information in real time with various people such as medical workers and soclial workers. By collaborating with various medical institutions through LAVITA, it is possible to provide the support needed for comprehensive community care.

Holding Advisory Board Meetings

At the first Advisory Board Meeting held in September 2021, we shared the contents of Nihon Kohden’s sustainability key issues (material issues) and KPIs in relation to sustainability, and our progress in implementing them. In response, we received the advice to strengthen our efforts to address the environmental, quality and human rights issues.
Scene at the Advisory Board Meeting

Initiatives to Promote Understanding of Sustainability among Employees

To raise internal awareness of sustainability, Nihon Kohden conducts executive training and published feature articles in the Company Newsletter, as well as providing employee education for both domestic and international employees, with 3,937 participants in webinars and 545 participants in paper-based materials in FY2021.

Engagement with Stakeholders

Nihon Kohden’s planning and implementation of sustainability initiatives are predicated on harmony achieved with all of its stakeholders. Nihon Kohden is committed to establishing trust with its stakeholders and achieving growth accepted by its stakeholders in all aspects of its business, from product development, production and sales to after-sales services, the Company’s financial standing, and human resource development efforts. In addition to its citizenship activities and information disclosure through its business activities, Nihon Kohden also leverages the opinions and requests of stakeholders in its future business activities as part of its efforts to be a trusted member of society.
Stakeholder Main Communication Method Main Responsibility and Issues
Customers Daily sales activities
Call center
Net promoter score survey
Customer satisfaction survey
Academic seminars
ME (medical electronics) workshops
Offer of products and services with safety and security
Quality improvement of products and services
Enhancement of customer satisfaction
Response to customer complaints
Disclosure and offer of adequate information of products and services
Business Partners Daily procurement activities
Human rights due diligence
Questionnaire of sustainable procurement
Open and fair trade
Identification of human rights risks in business transactions
Promotion of sustainable procurement
Shareholders and Investors General shareholders meetings
Earnings presentations
Company briefings
Events for individual investors
Website for investors
Enhancement of corporate value
Appropriate shareholder returns
Timely and appropriate disclosure
Response to Social Responsible Investment 
Employees Self-enumeration system
Level-specific training sessions
Labor-management council meetings
Consultation counter
Employee satisfaction survey
Company newsletters and intranet
Respect for human rights and promotion of proper labor practices
Development and utilization of human resources
Securement of occupational health and safety
Increase in job satisfaction
Respect for diversity of human resources and work style
Local Communities Volunteer activities in local communities
Participation in local events
Participation and contribution to local communities