Lobbying Governance
Overall Assessment | Analysis | Score |
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Strong |
Nippon Paint Holdings discloses a defined oversight structure and iterative review process that covers both direct and indirect policy engagement and is expressly tied to its climate-related strategies, indicating strong governance. The company states that “our major direct and indirect external activities are reported several times a year by the Global Teams to the Co-Presidents and by the Co-Presidents to the Board of Directors, to ensure that they are aligned with Nippon Paint’s policies and strategies related to climate change and water,” revealing a regular, board-level review mechanism. Alignment checks are embedded in day-to-day operations, as “the department in charge of ESG promotion and sustainability checks each time whether the content of external responses is consistent with our environmental policy and strategy… If any inconsistency is found, this process will be repeated again until consistency is ensured,” demonstrating an explicit procedure for monitoring and correcting lobbying positions. Indirect lobbying through trade bodies is also addressed: “through our membership in the Japan Chemical Industry Association, we confirm whether policies align with our strategies,” and all such engagements are “reported to the ESG Committee on a quarterly basis to verify whether they align with our climate change strategy.” Governance responsibilities are clearly assigned, with the “ESG Promotion Department, which is the secretariat for the ESG Committee,” conducting the checks, material matters being “discussed by the ESG Committee and then approved by the Board of Directors.” While the disclosure outlines oversight bodies, frequency of reviews, and an escalation process to resolve misalignment, the company does not publish a detailed climate-lobbying alignment report or describe instances of exiting associations, so transparency on outcomes remains limited.
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