Framework for Occupational Health and Safety and Work-Life Balance

NEC’s General Affairs Department formulates companywide policies for health and safety activities, as well as targets and key measures for each fiscal year. NEC’s Employee Relations Department promotes initiatives based on the NEC Group Health Declaration. In promoting these initiatives and with the goal of realizing these targets and measures, we operate a management system for preparing and implementing specific measures for each business site, and consolidated subsidiary in Japan, and for conducting internal audits and reviews. Particularly with regard to health and productivity management, the Employee Relations Department and the NEC Health Insurance Association work together as a health management promotion team for the Company and its consolidated subsidiaries in Japan. In addition to conducting independent health-related activities, these organizations work in close collaboration and pool their data and expertise to advance initiatives.

Furthermore, to help us achieve the goals of Mid-term Management Plan 2025, we set KPIs in consultation with the CHRO and based on the World Health Organization’s definition of health as “a state of complete physical, mental, and social well-being.” Consequently, the KPIs now encompass emotional and social health in addition to our existing emphasis on physical and mental health. Under the direction of the President, the CHRO oversees activities related to occupational health and safety companywide, including risk management, and reports on these activities to the Board of Directors and other organizations.

The NEC Group’s Health and Productivity Management Implementation Framework

Occupational Health and Safety (OH&S) and Work-Life Balance Policy

Safety

The Company is working to secure, maintain, and improve a working environment where people can work safely and healthily as a foundation for realizing its Purpose. To promote these efforts, we have stipulated the following action guidelines in the NEC Group Safety and Health Policy. This policy is formulated based on dialogue with labour unions and approved by the CHRO, who is the officer in charge. It applies not only to NEC’s officers and employees, but also to all people involved with NEC’s businesses and any other parties whose health and safety should be considered.

NEC has also formulated the Occupational Health & Safety Management Regulations as part of efforts to enhance the quality of its health and safety activities, and has established the NEC Group OH&S Management System. It also conducts related risk assessment and monitoring, as well as preventive and countermeasures. In the wider NEC Group, NEC Solutions (China) Co., Ltd., NEC (UK) Ltd. and NEC XON Holdings (Proprietary) Limited have acquired ISO 45001 certification.

Quality and Safety (Occupational Health and Safety Management in Construction and Installation Work)

Health

In fiscal 2020, NEC established the NEC Group Health Declaration. Rather than simply focusing on the prevention of illness, the declaration calls for efforts to improve the health of employees so that they can work with mental and physical vitality and achieve self-actualization. In this way, the Group aims to create even more social value.

We carry out a variety of health promotion activities driven by the slogan “Better Condition, Better Life.” Based on three policies—Literacy, Practice, and Technology—we seek to reform health awareness, change behavior, and help people maintain healthier behavior.

In recognition of these initiatives, NEC was included in the 2022 Health & Productivity Stock Selection (2022), a certification program of Japan’s Ministry of Economy, Trade and Industry, and received certification as a Health and Productivity Management Organization in 2024 (White 500, 2024) from the Ministry of Economy, Trade and Industry.
Since fiscal 2022, to achieve the Mid-term Management Plan 2025 goal of becoming “an employer of choice,” we have been enhancing the physical and mental condition of our employees and raising our employee engagement score through health and productivity management.

Training and Awareness-Raising for Occupational Health and Safety

Mental Health Measures

We position mental healthcare as a key theme in healthcare management, and we are creating a healthy workplace by maintaining the mental health of our employees.

Occupational Health and Safety Management

Risk Management Regarding Occupational Health and Safety

NEC identifies risks and countermeasures based on the NEC Group OH&S Management System.

These tasks are overseen by NEC’s General Affairs Department, with its internal organization, the Regional Affairs Department, serving as a regional center handling routine matters in the role of promotion office. Specifically, the Regional Affairs Department holds health and safety committee meetings in each region and communicates details of their discussions and deliberations internally. It also receives inquiries from a wide range of employees and organizations as the internal contact desk.

Furthermore, labour union members also participate in a monthly worksite inspection conducted by an industrial physician, exchanging opinions with workplace representatives and gathering opinions. When new risks arise regarding health and disasters, the information is quickly gathered and used by the health and safety committees to make improvements.

Meanwhile, important matters such as a major disaster or pandemic are handled by the Business Continuity and Disaster Recovery Headquarters attended by corporate management, such as NEC’s President or directors. The headquarters decides on important themes each year, reviews the flow for countermeasures, and conducts drills.
(Our response to the pandemic is described in the section on “Business Continuity.”)

Furthermore, we provide a channel for exchanging information with subsidiaries outside Japan to share safety confirmation information during disasters and take steps to ensure workplace safety.

Status of Labour-Management Discussions Regarding Occupational Health and Safety (Status of Health and Safety Committees, Etc.)

At each business site and base, health and safety committees meet each month in line with laws and regulations to take action on ensuring health and safety and promoting comfortable workplace environments. Committee members include health and safety commissioners and labour union representatives selected by each division, along with employee representatives, and industrial healthcare staff (industrial physicians, public health nurses, and registered nurses). They share information on the status of labour accidents and the targets for each fiscal year. They also discuss new health and safety countermeasures and health-related measures, among other matters.

Overview of Health Management (Health Promotion)

NEC is working to promote health through the following initiatives.

Health Checkups

We provide blood tests for all employees of NEC Corporation and 24 affiliated companies in Japan, including all items covered in the regular health examination, with the goal of identifying lifestyle diseases at an early stage and responding quickly. This enables us to implement consistent measures against lifestyle diseases from the time employees join the Company until their retirement.

Health Check-up Result Prediction Simulation

Health Promotion Events

In fiscal 2024, we held seven events, including exercise seminars conducted by professional trainers, as well as lectures on diet, sleep, and other topics given by experts and industrial physicians. A total of 6,024 people attended the events (NEC Corporation and consolidated subsidiaries in Japan).

Smoking Cessation

Since fiscal 2021, we have been offering an online Quit Smoking Program in collaboration with the NEC Health Insurance Association. The program allows employees to receive free online outpatient care to help kick the habit.
Of the 1,500 participants over the three years ended March 31, 2022, 93% completed treatment (NEC Corporation and companies affiliated with the NEC Health Insurance Association). In addition, the Wellness Promotion Center, an occupational health organization of the NEC Health Insurance Association, recommends personalized smoking cessation methods through individual consultations. As part of a One-day Smoking Cessation Program, we provide over-the-counter nicotine gum and patches, and measure carbon monoxide levels (an indicator of oxygen deficiency) before and after quitting smoking to confirm effectiveness.

Measures against Cancer

Awareness-raising activities have included inviting industrial physicians and experts to conduct seminars on themes ranging from cancer prevention through to treatment and support for employees receiving treatment. A total of 1,419 people attended the seminars in fiscal 2024, and the satisfaction rate was 95% (NEC Corporation and consolidated subsidiaries in Japan).

To support those working while concurrently receiving treatment, in 2018 we formulated guidelines covering the Company’s position, direction, points for employees and supervisors to be aware of, and other matters. Depending on the situation, individual employees receiving treatment receive personalized support in coordination with their workplaces, the Wellness Promotion Center, and the personnel and general affairs departments of the companies where they work.

Health Support for Young Employees

NEC Corporation and 24 affiliated companies in Japan are implementing the following initiatives designed mainly to foster a self-care mindset.

Communication of Various Health-related Information

Initiatives for Preventing Lifestyle-related Diseases

NEC and 24 affiliate companies in Japan are implementing the following initiatives to prevent lifestyle-related diseases.

Addressing Women’s Health

NEC Health Insurance Association System

Cancer Screening Support

The NEC Health Insurance Association has established an environment that enables employees to receive the same screening tests as they would at an external medical institution for a lower self-coverage cost, and to take the examinations during work hours.

In fiscal 2022, we implemented measures to increase the cancer screening rate for employees at ages where the risk of developing cancer increases (40 years for men and 35 for women).

Specifically, we invested an additional 3.5 million yen to reimburse eligible individuals for out-of-pocket expenses for cancer screening, and encouraged regular checkups. Consequently, the cancer screening rate increased significantly from 21.8% to 64.0% in the targeted age groups.

In fiscal 2023, we facilitated cancer screening for employees by creating an environment in which they can undergo regular health checkups at the same time as cancer screening. We also encouraged them to get comprehensive health examinations at external medical institutions.

As a result, testing locations were significantly increased and employees were able to undergo regular health checkups and cancer screening tests at the same time. These measures have significantly increased the NEC Group’s cancer screening test rate, from 49.0% in fiscal 2023 to 56.8% in fiscal 2024.

Online Quit Smoking Program

In collaboration with the NEC Health Insurance Association, we provide an online Quit Smoking Program, which offers employees free outpatient consultations with a doctor about quitting smoking.

Of the 1,500 participants over the three years ended March 31, 2022, 93% completed treatment (NEC Corporation and companies affiliated with the NEC Health Insurance Association)

Dental Examinations

Employees have access to free dental examinations, which are provided based on a contract with the NEC Health Insurance Association.

Healthy Work-Life Balance: Support for Those Balancing Work with Family Commitments

Childcare Support

NEC Corporation supports employees who are balancing work with childcare with benefits such as leave before and after a spouse gives birth, childcare leave, and a system of reduced working hours for childcare, in addition to measures such as the following.

NEC Corporation acquired the “Kurumin” Next-generation Support Certification Mark from Japan’s Ministry of Health, Labour and Welfare in 2007, 2012, and 2015 in recognition of the Company’s initiatives for childcare. We implemented a series of measures, including measures that are not incorporated in the action plan, and further improved the work-life balance of our employees. As a result of these measures, NEC Corporation acquired “Platinum Kurumin” certification in 2018.

The Company is encouraging greater understanding and utilization of childcare leave among male employees by issuing a Guide for Childcare Leave for Men in line with post-natal paternity leave (childcare leave at the time of childbirth) under the revised Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members and by publishing stories about the experiences of men who have taken childcare leave.

Nursing Care Support

To support employees’ efforts to balance work and nursing care, we have established systems such as nursing care leave, reduced working hours, and shorter workdays.

In addition, a nursing care plan has been set up within “Will be,” the cafeteria-style benefits and welfare system, to provide employees with a variety of support to meet their needs as they balance nursing care and work.

From fiscal 2021, the number of employees working reduced hours to fulfill their childcare and nursing care responsibilities will decrease. We believe that this is because the spread of telework and Super Flex Time has led to an increase in the number of employees who are able to balance work with childcare or nursing care without having to work reduced hours. In addition, as a result of encouraging male employees to take childcare leave, the number of employees doing so has increased.

Healthy Work-Life Balance: Workstyle Reforms

Updating Workstyle

NEC is updating from a hybrid workstyle where employees can basically design their place and time of work to a workstyle in which 40% (2 days a week) of work is carried out in-person at the office. Our aim is to maximize team performance and strengthen NEC’s ability to execute strategies and achieve its Purpose.

Special Jury Prize in the Nikkei Smart Work Awards 2023

NEC received a five-star rating in the Nikkei Smart Work Survey, ranking in the top 24 of the 813 companies that responded to the survey. The Company was also selected to receive the Special Jury Prize in recognition of its excellent systems for promoting health, including mental health, and for receiving a five-star rating for three consecutive years.

Introduction of “Thanks/Praise” Platform

Through the “Thanks/Praise” platform, the NEC Group aims to facilitate light, positive feedback using stickers in an effort to foster a culture of mutual acknowledgment and enhancement. The program was expanded to include the entire NEC Group (except for certain Group companies). A test in 2023 confirmed that giving stickers to one another correlates with individual performance and the creation of good relationships between employees. Furthermore, in collaboration with NEC Generative AI Service, we are working on a new initiative to effectively convey the sentiments of each individual.

Work-Life Balance

NEC grants all employees annual paid leave, and also grants a separate allowance of five days per year of family friendly leave (up to 20 days can be accumulated). Family friendly leave is paid leave that can be used for reasons such as personal illness, a spouse or partner’s childbirth, childcare, attending children’s school events, family care and local volunteer activities.

The Company is also promoting work-life balance through the following initiatives.

Response to Serious Global Health and Safety Issues

Infection Countermeasures

At NEC, we have established a consultation desk for health issues (including infectious diseases) at the Wellness Promotion Centers, and we also use our intranet to provide information about how to prevent infection and to remind people to exercise caution. In addition, we provide financial assistance for seasonal influenza vaccinations and various other types of vaccination as part of infection prevention measures.

When employees are sent on assignment outside Japan, we make them aware of the need to be mindful of and receive vaccinations for infectious diseases that are common in the local area, such as tuberculosis and malaria, which must be reported. In addition, we pay careful attention to employees’ health management during transit and on their return to Japan.

Medium- to Long-term Goals, Priority Activities and Progress, Achievements, and Issues

Medium- to Long-term Goals and Priority Activities

(Scope: NEC Corporation unless otherwise specified) Period: April 2021 to March 2026

FY2024 Goals, Progress, Achievements and Issues, and FY2025 Goals

FY2024 Goals

Progress, Achievements and Issues

FY2025 Goals

Indicators and Goals for Occupational Health and Safety and Work-Life Balance

Mental Health-related Leave of Absence Rate

Our fiscal 2026 target rate for mental health-related absence is 0.82%.

Childcare Support and Nursing Care Support

Work Hour Management (Average Monthly Overtime Work Hours per Employee)

Following deliberations between the workers union and management, NEC Corporation and affiliated companies in Japan stepped up initiatives to prevent excessive work by revising the standard for overtime work, requiring a health check at 70 or more hours of overtime work per month, down from the previous 80 hours.

Average monthly overtime work hours per employee is presented at right.

Days of Leave

Status of Labour Accidents and Disasters

Labour accidents at NEC Corporation and consolidated subsidiaries in Japan are mostly minor, such as tripping on stairs at train stations or falling on the street during business trips or sales calls.

In fiscal 2024, there was one labour accident at NEC Corporation and one at a consolidated subsidiary in Japan, both caused by long working hours.

In addition, we have not identified any instances of serious violations of laws and regulations from related organizations.

When a labour accident occurs, the person responsible for monitoring labour accidents checks on the status of the person or persons affected by the accident, determines the cause, and implements measures to prevent a recurrence as needed, as laid out in the Company’s escalation rules. Even for minor labour accidents such as tripping or falling, the details and countermeasures are shared throughout the Company via the OH&S Committee, the intranet, and other means. We strive to prevent labour accidents that could be caused by natural disasters, for example, calling on employees to remain at home or to return home early if a typhoon or heavy snowfall is forecast.

Trends in Frequency Rate and Severity Rate

Occupational health and safety training rates and training completion rates are as follows.