11-1 Kamitoba Hokodatecho, Minami-ku, Kyoto 601-8502, Japan
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CHIEF SUSTAINABILITY OFFICER
Report created by Cec Ehrhard
Nintendo is a consumer electronics and video game company.
Created in Japan in 1889, Fusajiro Yamauchi started the company from playing cards. Fast forward to 1977, Nintendo launched its first video game console.
The company took off from its next release in 1985 of the Nintendo Entertainment System. Nintendo keeps producing universal consoles like the Game Boy, Nintendo DS, Wii, and Nintendo Switch.
The company also created successful franchises like Donkey King, Mario, Super Smash Bro, and Pokemon. Nintendo is a parent company with a few subsidiaries based in Japan. Nintendo has become one of the most valuable and successful brands in the Japanese market.
Company Sustainability Activity
Nintendo is achieving a Sustainable Future by Bringing Smiles to Everyone Nintendo Touches. According to their CSR Report, the company is dedicated to becoming sustainable by “Putting Smiles on the Faces of Everyone Nintendo Touches Through [their] Products and Services.”
In deep understanding of the public interest in achieving a sustainable society, which began with advancement of the SDGs, Nintendo aims to contribute by responding to the needs of the times through initiatives that leverage the special characteristics of their products and business activities.
- In September 2019, Nintendo Ibérica (Spain) relocated to a new location. The new location improved natural lighting and air circulation with a 25% reduction in energy consumption compared to conventional buildings, and has also received a Platinum certification under the LEED* for New Construction system
- Starting in 2020, Nintendo of America partnered with a local energy service provider to purchase 100% renewable energy for its Redmond offices and suburban shipping facility
- Nintendo of America has signed a three-year contract with the local energy service provider to reduce its energy consumption by monitoring consumption regularly, improving building operations, updating building fixtures, and educating employees on how to manage electricity use efficiently
- 100% of freight carriers have been certified through the EPA’s SmartWay program. The program goal is to reduce greenhouse gas emissions through collaboration with the freight transportation industry
- Nintendo has a close to 100% recycling rate for product returns and repair parts, and offers a Take Back Program for consumers with older products, rechargeable batteries, etc
- Since January 2012, all electricity used in Nintendo of Europe’s offices is derived from renewable energy sources
- Starting in 2019, each floor is equipped with a recycling center, to separate paper, plastics, bottles, biowaste, general waste, electronics, and batteries
- FSC-certified paper is purchased for printing and copying
- Restrooms use toilet paper and paper towels with Blue Angel certification (a German eco-label)
- Nintendo of Europe (U.K.) converted all of their office lighting to LED
- Nintendo Benelux’s Belgium office has bought electricity generated 100% from renewable energy since June 2009
UN Sustainable Development Goals
UN SDGs Compliance
The following section aligns current company-wide sustainability initiatives with the UN Sustainable Development Goals. Although not explicitly stated, Nintendo has attempted to be compliant with SDGs.
- Nintendo has a company-wide system by which employees can control when they come to and leave work every day so that they can continue to demonstrate their strengths. In addition, to ensure that employees have sufficient personal time and sleeping time, they have also introduced a work interval system, which establishes a nine-hour break period following the end of each workday.
- Nintendo Ibérica (Spain) implemented a childcare check system upon receiving a request from an employee. With this system, employees can opt to use their lunch subsidy on childcare.
- Nintendo of Europe’s U.K. branch has been participating in a government-backed program called Ride2Work since October 2009. Ride2Work aims to encourage people to cycle instead of driving to work. The Ride2Work salary sacrifice program helps staff with the initial purchase of a bicycle by offering a tax incentive to participating employees. In addition, the program benefits the environment and helps employees improve their health.
- eNable, an Employee Resource Group (ERG)* at Nintendo of America, interacts with the communities both inside and outside the company through events that support, advocate and raise awareness of a wide range of disabilities. In May 2019, eNable celebrated Global Accessibility Awareness Day that invited company employees to learn about digital access and inclusion.
Secondary SDGs: 7, 12, 13
Nintendo has done well with their progress, but they do not state their targets or metrics on the CSR report or on the website. Likewise, there’s no information to be highlighted as completed progress for the company.
There is also no outlined SDG report. Nintendo has a fair amount of awards and certifications, but the company still needs to follow through on their progress and outline its targets so consumers can view exactly what they are trying to accomplish in terms of sustainability.
Most importantly, the company must atone for its poor human rights practices of unethically sourcing minerals from conflict zones. Nintendo has attempted to address how the company intends to improve their supply lines in their Modern Slavery Transparency statement published in September of 2020. Nintendo has been given a “C” rating.
Analyst Outlook: Negative
Nintendo appears to be sustainable, however, the company does not disclose targets or completed highlights. Nintendo lacks transparency and would benefit from being more specific in goals and targets.
Additionally, the company has come under fire for its unethical mineral sourcing practices, though it has instituted a Modern Slavery Transparency statement in 2020 to address these concerns.
It remains to be seen whether or not Nintendo will adhere to their newly adopted human rights policies into the future.
- No stated climate targets in CSR – hidden within website
- CSR report and Procurement Guidelines are vague with no substance of information
- Nintendo has been under fire for not improving its supply lines and continuing to source minerals from conflict zones. It seems as though the company has made an effort to rectify their wrongdoing through its September 2020 transparency statement, but it still has much work to do to make some long overdue progress toward CSR.