Initiatives to Address Priority Issues (materiality)
In order to contribute to the realization of a sustainable society, the NST Group has identified six priority issues (materiality) related to ESG management that must be focused on, based on the issues of stakeholders, the Group’s corporate philosophy and roles, and growth strategies.
Initiatives related to these issues will lead us to the achievement of SDGs corresponding to each of the materiality components we identified. Recognizing the role that our stakeholders and society expect us to play, we are actively working to resolve the issues and achieve the SDGs.
Each division selects priority themes to address in regards to the priority issues (materiality), and creates a detailed action plan, which it is carrying out. The Sustainability Committee conducts regular monitoring of progress and operates a PDCA cycle in connection with the business strategy to reliably achieve results. In our initiatives to address materiality, we will continue to conduct follow-up utilizing indicators to assess results and steadily carry out the initiatives as we work to contribute to a sustainable society and enhance corporate value.
- *GX steel refers to “green steel for GX (Green Transformation)” defined in the “5th Consolidated Summary of the Study Group on Green Steel for Green Transformation” published by the Ministry of Economy, Trade and Industry in January 2025.
A zero-carbon society made possible by green hydrogen
A future created with exclusive sales rights in Japan
A zero-carbon society made possible by green hydrogen
Following the initial investment in 2023, NST has conducted additional investment in the Norwegian company Hystar AS, and has acquired exclusive rights for sales of PEM water electrolyzers in the Japan market. We will accelerate our contributions to a zero-carbon society through green hydrogen technology that is a good match for renewable energy.
PEM water electrolyzers and Hystar AS
A solid polymer (PEM) water electrolyzer is a technology that utilizes power generated from renewable energy to break down water into hydrogen and oxygen, producing high-purity green hydrogen. Because this system is able to start and stop quickly under conditions when the power supply is unstable, it is characterized by its extremely good compatibility with wind power, solar power, and other renewable energy that involves large fluctuations. It also functions to make effective use of excess power and to coordinate power demand and supply. Hystar AS is a spin-off from SINTEF, one of Europe’s largest research agency, and is a high-tech company that develops and produces highly efficient and safe PEM water electrolyzers utilizing its original patented technology. The production line produces the stack which is the core component in-house, and is planning large-scale expansion of production with support from the EU Innovation Fund, one of the largest climate change funds in the world.
Strengths of NST and challenging ourselves with green hydrogen
NST has so far participated in the green hydrogen business through sales of materials for water electrolyzers. However with this additional investment, we will be actively involved not only in materials supply, but also in sales of complete water electrolyzers and stack units. We have recently acquired exclusive rights to sales of Hystar AS products in the Japan market, and have created a system that allows one-stop deliveries of cutting-edge water electrolyzer solutions to customers in Japan.
The reason behind our promotion of this business is our sense of a social mission based on the urgent need to establish a hydrogen society in order to achieve carbon neutrality. Although costs, technical obstacles, and other challenges are involved in introducing and expanding the systems, we will utilize cutting-edge technologies and partnerships to overcome each of these challenges. We will work to contribute to the continual development of society and industry as a theme that is deeply connected to multiple SDGs (Sustainable Development Goals), including “Affordable and Clean Energy” and “Industry, Innovation and Infrastructure.”
Future prospects
In the future, we will utilize the partnership that we have constructed with Hystar AS to carry out materials supply, and sales of water electrolyzers and stack units, in an integrated manner. As the introduction of renewable energy expands in Japan, the demand for green hydrogen is also growing, and NST is working to strengthen our stable supply system and technical support. Furthermore, we will challenge ourselves to create new value in hydrogen-related business, and actively contribute to the creation of a sustainable society – a zero-carbon society.
Opening up a future of sustainable architecture
Toward the creation of a sustainable society
Opening up a future of sustainable architecture
NST has invested 11% in NS Hi-Parts Corporation, which is engaged in technical development and business development for the NS Super-Frame construction method®, and is supplying the SuperDyma® high corrosion-resistant plated steel manufactured by Nippon Steel that is used in the frame panels.
NS Super-Frame construction method®
This is classified as light-gauge steel framed housing, a type of steel frame structure, and is a construction method with a range of superior performance, including fi re prevention and resistance, heat insulation performance, and durability. It is widely used in apartment buildings, dormitories, company housing, facilities for the elderly, offices, shops, and other low-rise structures. With this construction method, because the frame panels which are a key structural component of the building frame are produced in a factory at the same time that the foundation work is being carried out, this method can achieve large reductions in construction periods compared to conventional methods. Because it is a prefabricated construction method in which the frame panels are assembled on-site, it is also a solution to the problem of shrinking numbers of experienced construction workers at worksites.
Use for the Columbia Pavilion at Expo 2025 Osaka, Kansai
Expo 2025 Osaka, Kansai opened in April 2025. Approximately one year earlier, NS Hi-Parts Corporation received an inquiry about construction from the design office for the Columbia Pavilion. The reason was that an extremely short construction period had been set upon request from the Expo Steering Committee, with all work using heavy machinery to be completed by the end of October 2024 (approximately seven months). To address this issue, the NS Super-Frame construction method® was adopted. This method uses the SuperDyma® high corrosion-resistant plated steel supplied by NST as the frame material. After foundation work was completed at the end of September 2024, frame construction was completed in 12 days from October 12 to 23, 2024. The steel used with the NS Super-Frame construction method® is NSCarbolex® Neutral, a low CO₂ steel supplied by Nippon Steel. This was a good match for the “contribute to the achievement of SDGs” objective of Expo 2025 Osaka, Kansai, and is one of the reasons that this method was used for the Columbia Pavilion.
Future prospects
The application of energy-saving standards to newly constructed buildings became mandatory in April 2025, and the government has indicated that its policy will be to raise the standards* by 2030. The NS Super-Frame construction method® features superior heat insulation performance, allowing a comfortable living environment to be created with less air conditioner operation. As a result, this construction method conforms to the new energy-saving standards. In addition, adding the use of NSCarbolex® Neutral green steel allows this construction method to also reduce CO₂ emissions. We will contribute to the creation of a sustainable society by expanding the use of this construction method.
- *ZEH (net zero energy house) and ZEB (net zero energy building) standards which indicate that a residence or building that produces more energy than it uses
Contributing to next-generation societies with electrical steel sheet
Innovative and steady leaps into the future
Contributing to next-generation societies with electrical steel sheet
In August 2024, in order to further reinforce the sales foundation and supply chain functions in Japan and overseas, the NST Group was joined by Denkishizai Co., Ltd., a highly specialized trading company that handles primarily Nippon Steel electrical steel sheet. In cooperation between Denkishizai and NST, we will construct a system for promoting the use of electrical steel sheet.
Electrical steel sheet
This is special high-performance steel material that produces a strong magnetic force when electricity is applied to it. It plays an important role in efficiently using magnetic force to transform electrical energy into magnetic energy, or the reverse. Electrical steel sheet can be broadly divided into two types according to its characteristics.
Oriented electrical steel sheet:
Designed so that magnetic force acts only in a particular direction, this type aligns the orientation of iron crystals that are easily magnetized to produce magnetic force in the predetermined direction. It is primarily used in products such as electrical transformers and power Transformer distribution transformers, where the magnetism needs to be concentrated in a specific direction, and contribute to the efficient use of power.
Non-oriented electrical steel sheet:
This type features excellent magnetic characteristics in all directions, and is prepared so the orientation of the crystal axes is random. It is primarily used in motor cores and generators.
Growing demand for electrical steel sheet
The importance of electrical steel sheet grows year by year as we move toward the creation of energy-saving societies. With the expansion of generative AI and IoT, large-scale data centers which operate high-capacity servers are being constructed one after another. In large-scale data centers, because high energy-saving performance is being demanded not only from servers but also from a wide range of electrical equipment (such as generators, transformers, air conditioners, and coolers), high-efficiency electrical steel sheet has become essential.
Exceptional technical knowledge and processing technologies
Electrical steel sheet is characterized by its hardness and thinness, and also by the fact that the magnetic characteristics are adversely affected by strain during processing. As a result, high precision processing is required. Denkishizai has processing technologies including multi-strip slitting technology that can slit up to 30 strips* at one time, and burr-free slitting technology that prevents projections (burrs) when the metal is machined. Work is performed by highly experienced engineers who perform minute adjustments on the μm (micrometer) scale that cannot be achieved by machines alone. Even products several mm in width can be slit while fully maintaining the magnetic performance and shape accuracy. The company also offers secondary processed products such as skewed laminated cores that reduce electrical loss, and shield panels that are used in medical applications. The trading division and processing division work together to meet a diverse range of customer needs.
- *Unit of one strip-shaped sheet that is cut by a single slit process
Future prospects
The mission of Denkishizai is to “contribute to improving the global environment by developing energy-efficient societies” and it is utilizing both its marketing proposal abilities and technical abilities to expand its business. While it reaches for business opportunities such as the electrification of automobiles and expansion of data centers, it is also focused on strengthening governance, and is aiming for further leaps forward while optimizing its operations.
Challenging ourselves to expand the use of stationary storage batteries
Toward the establishment of a new primary power source
Challenging ourselves to expand the use of stationary storage batteries
Backed by soaring electricity prices, subsidies from local governments, and other factors, there has been a rapid growth in demand for the storage batteries that have been a focus of attention, ranging from household products to large-scale power storage facilities. NST imports medium to large-size stationary storage batteries that are used for industry and power grids from the company Hithium, and sells them within Japan.
Stationary storage batteries
There are two types of storage batteries, the “stationary type” that is installed at homes, factories, and power grids, and the “onboard type” that is used in EV and other vehicles. The Hithium products sold by NST are stationary types, and are used for a wide range of applications, including as an emergency power source in times of disaster, a means of reducing electricity costs by cutting consumption during peak hours*, and for balancing electricity supply and demand in a power grid. In particular because they can be used effectively with renewable energy power, they are gaining attention as equipment that can contribute to the creation of a zero-carbon society.
- *Power is stored during hours when less electrical power is used, and smooths power demand during hours when energy use is high, reducing basic costs.
About Hithium
Hithium is a start-up venture that was founded in China in 2019, and is a promising company that in 2024 was No. 3 in the world in terms of stationary storage batteries delivered. This company’s products are not only superior to competitors in terms of price and performance, but safety is also a major strength as not a single fi re incident has occurred since the company was founded, and they are supported by a large number of customer companies.
Reason for getting involved in this business
Hithium stationary storage batteries are widely used in China, Europe, and the U.S., however none have yet been sold in Japan, and the company has positioned Japan as its next target. Motivated by the past performance and trust in NST through past business related to storage battery materials, Hithium consulted with NST regarding its entry into the Japan market. This is how we got involved in this business. In combination with the solar panels that NST already sells, being able to propose a storage battery that features good compatibility increases the range of proposals that we can make to customers, and is a new opportunity to expand business. For these reasons, we are working to expand the use of Hithium batteries.
Future prospects
In the Japan market, which has been growing rapidly since 2023, our role is to increase the recognition of Hithium and expand sales of its excellent products. Gaining a deep entry into the market through steady marketing activities, participation in exhibitions, use of media, and other means is an urgent issue. Because storage batteries are products that are used over a long period of 20 to 25 years, it is also necessary to establish a maintenance system to maintain performance during the period of use, and to create a warranty system in cooperation with the manufacturer.
Expanding the use of high-quality storage batteries as a new primary power source can also contribute to the creation of a zero-carbon society. We intend to continue assisting in the growth of the storage battery market, and make the storage battery business a new foundation for profits.
Expanding sales of OPG pork from North America
A world that is friendly to animals and the environment
Expanding sales of OPG pork from North America
While the livestock industry is essential to household dining tables, the cost focus of mass production invites neglect of animal welfare and environmental impacts. NST is working to construct a sustainable supply chain by expanding purchases from OPG and companies that achieve carbon neutrality.
What is OPG?
In recent years, there has been growing global awareness of the approach to sustainable food and animal welfare. For reasons of management and production efficiency, sows have conventionally been kept in a cramped, separated area called a stall while they are pregnant. However this method restricts the pig’s freedom of movement, and is considered a problem from the perspective of animal welfare. As a solution to this problem, attention has been focused on the raising method known as OPT (Open Pen Gestation). With OPG, the sow is raised in an open environment while pregnant, in a space that allows the pig to move about freely, greatly reducing stress on the animal. OPG has already become standard in the EU, and is rapidly expanding in North America as well. Shops in North America do not advertise OPG pork in any way, but sell it as an ordinary product. Concern for animal welfare has been recognized as a social responsibility of corporations.
Trends in environmental and pig-raising regulations
OPG is only an example of improvements to animal welfare. There are growing numbers of suppliers that are also actively involved in actions such as reducing greenhouse gases, preventing water pollution, and preventing drug-resistant bacteria. While some countries have strengthened regulations related to such animal welfare and the environment, because there has been no change to the global need for protein, there is now the problem of production increasing in countries with lax regulations. It is a fact that it is impossible to fully achieve sustainable livestock and reduce worldwide environmental impact simply by strengthening regulations in individual regions.
Role of NST
If price alone is prioritized, there will be growing trade in products from suppliers who do not give adequate consideration to animal welfare or environmental measures. NST believes that it an important mission for us to explain the efforts of producers who take an active approach to such matters and the advantages of their products, and expand the scope of understanding and support. In particular, NST was the first in Japan to begin importing OPG pork from Canada Packers, a producer in North America that has achieved carbon neutrality. We will continue to play a leading role in expanding these trends throughout the industry, and will contribute to the creation of a future with sustainable livestock and food.
Creating trash-free oceans with “ONE OCEAN”
Our dream is for ONE OCEAN to one day disappear
Creating trash-free oceans with “ONE OCEAN”
At MN Inter-Fashion, to address the increasingly severe problem of ocean plastic, we are operating the original “ONE OCEAN” brand of recycled polyester material that uses as a raw material plastic drink bottles collected from areas where there is a high risk of them reaching the ocean.
What is ONE OCEAN?
ONE OCEAN is a material brand that was developed with the goal of resolving the problem of ocean plastics. It is made from plastic drink bottles collected in areas where there is a high risk of them reaching the ocean, and is upcycled as a recycled polyester material.
Environmental problems surrounding plastic
Approximately 400 million tons of plastic is produced globally each year, and of that an estimated 8 million tons is not disposed of properly and flows into the oceans. This results in frequent deaths of sea turtles and marine birds that mistake the plastic for food and consume it. Furthermore, microplastics 5 mm or smaller in size, formed from plastic pulverized by UV radiation and waves, accumulates and diffuses in the bodies of fish, shellfish, and other marine organisms, and are becoming a risk to human health through the food chain. In this way, plastics waste flowing into the oceans has become a global problem.
The future created by ONE OCEAN
The goal of ONE OCEAN is to eliminate plastic from the oceans, and we are working to develop fabrics using plastic waste and for environmental preservation activities. A certificate (raw material certificate) can be presented showing that the product uses recycled material from plastic drink bottles that were collected from areas where there is a high risk of them reaching the ocean, and the reliability of recycling can be easily communicated to the consumers. The ONE OCEAN fabrics cut UV radiation, and feature rapid drying, stretchability, and other high performance for comfort. Compared to ordinary polyester products, a T-shirt made from ONE OCEAN fabric has been proven to reduce CO2 emissions by 28% during production.
Future prospects
ONE OCEAN will continue to develop and propose ideas so that the fabric will reach more people, not only in the fields of ladies’ and men’s fashion, but also in uniforms and a wide range of other product categories. This will allow consumers to feel closeness with environmentally friendly products, and expand opportunities for people to make environmentally responsible choices even without being aware of doing so. By increasing these everyday choices, we aim to make progress in fulfilling our environmental responsibilities as a corporation.