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CSR activities in FY2021

Environmental Management

Environment Policy

Environment Policy

Company Environmental Performance and Targets

Company-Wide Environmental Performance for the Fiscal Year Ended March 31, 2022

Target Achieved in 12 of 18 Items

Achieved
Achieved
Unachieved
Not achieved
Environment policy Environmental target Achievement Self-evaluation
Developing technology that contributes to prevention of global warming Development of new technologies and products that contribute to energy conservation and energy creation / Expansion of the scope of calculation for environmentally friendly products Development of environmentally friendly products Achieved
Observance of laws and regulations Continued strict control of toxic and deleterious substances Inventory control and monthly self-audits Achieved
Reducing the environmental impacts of our business operations Consideration toward carbon neutrality (promotion of CO2 emission reduction) Reduction of CO2 emissions Japan Less than 262,000 tons/year 266,000 tons/year Unachieved
Overseas 369,000 tons/year 346,000 tons/year Achieved
Reduction of CO2 emission intensity Japan 23.0 % reduction of the fiscal year ended March 31, 1998 levels* 20.0 % reduction of the fiscal year ended March 31, 1998 levels Unachieved
Overseas 3.9 % increase of the fiscal year ended March 31, 2007 levels 6.3 % increase of the fiscal year ended March 31, 2007 levels Unachieved
Disseminate and ensure compliance with the revised Green Procurement Standards Japan Ensure compliance at each business site Implementing at each site Achieved
Utilizing resources sustainably Reduction of water consumption Reduction of water intensity Japan 24.7 % reduction of the fiscal year ended March 31, 2011 levels 25.5 % reduction of the fiscal year ended March 31, 2011 levels Achieved
Overseas 14.1 % increase of the fiscal year ended March 31, 2015 levels 14.0 % increase of the fiscal year ended March 31, 2015 levels Achieved
Reduce waste generation and maintain high recycling rate Improvement of recycling rate Japan 98.6% or more 97.9% Unachieved
Overseas 97.5% or more 94.8% Unachieved
Reduction of waste generation intensity Japan 5.8 % reduction of the fiscal year ended March 31, 2011 levels 5.0 % reduction of the fiscal year ended March 31, 2011 levels Unachieved
Reduction of paper and styrofoam usage Reduction of paper purchase intensity Japan 3.5 % increase of the fiscal year ended March 31, 2011 levels 10.1 % reduction of the fiscal year ended March 31, 2011 levels Achieved
Reduction of styrofoam usage Japan Abolished Abolished Achieved
Stringently controlling environmentally harmful substances Reduction of chemical substances subject to PRTR Law used Intensity of chemical substances subject to PRTR Law used Japan 1 % reduction of the fiscal year ended March 31, 2020 levels 5.6% reduction of the fiscal year ended March 31, 2020 levels Achieved
Prevention of phthalate ester contamination and strict control of old stock products Japan Strict control at each site Implementing at each site Achieved
Conserving biodiversity Promote biodiversity conservation activities such as "Kigyo no Mori" (corporate forest) activities Japan Participation of each site Implementing at each site Achieved
Overseas Participation of each site Implementing at each site Achieved

*CO2 emission factors for electricity consumption are calculated using a fixed factor of 0.381 kg-CO2/kWh.

Company-Wide Environmental Targets for the fiscal year ending March 31, 2023

Environment policy Environmental target
Developing technology that contributes to prevention of global warming Development of new technologies and products that contribute to energy conservation and energy creation / Expansion of the scope of calculation for environmentally friendly products
Observance of laws and regulations Continued strict control of toxic and deleterious substances Inventory control and monthly self-audits
Reducing the environmental impacts of our business operations Consideration toward carbon neutrality (promotion of CO2 emission reduction) Reduction of CO2 emissions Japan 288,000 tons/year or less*1
Overseas 263,000 tons/year or less*2
Reduction of CO2 emission intensity Japan 9.7 % reduction of the fiscal year ended March 31, 2019 levels
Overseas 23.7 % reduction of the fiscal year ended March 31, 2019 levels
Disseminate and ensure compliance with the revised Green Procurement Standards Japan Implementing at each site
Utilizing resources sustainably Reduction of water consumption Reduction of water consumption intensity Japan 25.5 % reduction of the fiscal year ended March 31, 2011 levels
Overseas 22.3 % reduction of the fiscal year ended March 31, 2015 levels
Reduce waste generation and maintain high recycling rate Improvement of recycling rate Japan 97.9% or more
Overseas 96.9% or more
Reduction of waste generation intensity Japan 0.7 % increase of the fiscal year ended March 31, 2011 levels
Reduction of paper and styrofoam usage Reduction of paper purchase intensity Japan 7.5 % reduction of the fiscal year ended March 31, 2011 levels
Reduction of paper purchase intensity Japan Maintaining abolition
Thorough management of environmentally hazardous substances Amount of chemical substances subject to PRTR Law used Intensity of chemical substances subject to PRTR Law used Japan 1% reduction of the fiscal year ended March 31, 2022 levels
Conserving biodiversity Promote biodiversity conservation activities such as "Kigyo no Mori" (corporate forest) activities Japan Increase in the number of participating establishments
Overseas

*1 Calculated using emission factors sourced from "Electric Utility Emission Factors" (Ministry of the Environment and the Ministry of Economy, Trade and Industry) in Japanese sites.

*2 The NTN Group has acquired third-party certification globally for ISO 14001, the international standard for environmental management systems. Our environmental management organization is structured to promote compliance with the environmental laws and regulations of each country and continually improve environmental performance. For business sites in Japan, multi-site certification is acquired, and all business sites work together to achieve environmental targets under the top management led by directors in charge.

Environmental Management System

Environmental Management System

The NTN Group has acquired third-party certification globally for ISO 14001, the international standard for environmental management systems. Our environmental management organization is structured to promote compliance with the environmental laws and regulations of each country and continually improve environmental performance. For business sites in Japan, multi-site certification is acquired, and all business sites work together to achieve environmental targets under the top management led by executive officer in charge.

Environmental Management Framework Chart

Environmental Management Framework Chart

ISO14001 Certification

As a general rule, environmental management system (ISO14001) certification is to be obtained within three years of operation, and all existing business sites globally (that have been in operation for more than three years) have already obtained certification. We will continue to acquire certification for new business sites in accordance with the above principle. In Japan, we have acquired certification using the multi-site method. Overseas, each business site has acquired certification, and NTN DRIVESHAFT ANDERSON, INC. (U.S.A.) newly received a certification in February 2022.

* Certification was acquired at each site for NTN Tado Corp. and Taira Forging Corp. in Japan.

ISO14001 Certification

ISO14001 certification

Violation of Environmental Laws and Regulations

In the fiscal year ended March 31, 2022, there were no cases of serious penalties or sanctions under environmental laws and regulations.

Environmental Education

The NTN Group conducts environmental education by various levels and functions. The level-specific training includes basic education for new employees in introductory training and practical education after assignment to workplaces, as well as training for newly promoted managers to address environmental issues at their workplaces from the perspective of risk/benefit management. For each job function, we provide training on how to respond to sales departments and agents who serve as contact points for surveys on the inclusion of environmentally hazardous substances in products from customers and on related laws and regulations, and training for internal auditors of environmental management systems. In addition, we strive to raise environmental awareness among all employees by making them aware of important environmental measures and holding various events in June each year as part of the Environment Month events. To prevent infection caused by COVID-19 pandemic, we are also focusing on environmental education through online training and e-learning instead of face to face training sessions.

Raising Environmental Awareness

In order to raise environmental awareness, the NTN Group (Japan) distributes "Basic Environment Policy Cards" to all employees (including personnel working at business sites such as resident contractors, temporary staff, and subcontractors). In addition, during Environment Month in June every year, we (1) conducted environmental education, (2) conducted energy conservation patrols, (3) published environmental news, and (4) displayed an Environment Month poster from the Ministry of the Environment. As an example, Iwata Works (Japan) published environmental news to deepen the understanding of climate change and resource recycling.

Environmental News (Iwata Works)

Environmental News (Iwata Works)

Basic Environment Policy Card (Paragraph 4 and thereafter on reverse side)

Basic Environment Policy Card (Paragraph 4 and thereafter on reverse side)

Emergency Response

Emergency Response Drill

NTN Group conducts annual drills in response to emergencies such as oil and environmentally hazardous substance leaks to ensure that it can respond quickly in the event of an emergency. 13 participants at NTN Akaiwa Corp. (Japan) conducted an on-site drill by putting up an oil fence on an irrigation channel in preparation for an oil leakage. Participants experienced attaching a rope to the oil fence, securing the rope to the slope with stakes, and attaching the oil fence to the water surface. In addition to responding to a leak, the drill was meaningful in that participants were able to actually experience how easy it is to lose one's balance on a slope and how high the irrigation canal actually is. We will continue to conduct such drills in the future to ensure that we can respond as quickly as possible in the event of an emergency.

Oil Spill Response Drill in Irrigation Canals (NTN Akaiwa)

Oil Spill Response Drill in Irrigation Canals (NTN Akaiwa)

Major Leakage / Spill Incidents

In the fiscal year ended March 31, 2022, there were no serious leaks or spills caused by our group. We will continue to take measures to prevent leaks and spills of oil and environmentally hazardous substances and strive to prevent environmental pollution accidents.

Environmental Accounting

In order to efficiently address environmental conservation, NTN Japan quantifies the costs and economic effects of environmental conservation by classifying them according to Ministry of the Environment guidelines.
Environmental conversation costs for FY2021 were approximately 3.03 billion yen, including research and development of eco-products, and the economic effect of environmental conservation measures was approximately 1.31 billion yen.

Environmental Conservation Costs

(Million yen / year)

Classification Equipment investment Development costs Grand Total
Costs Details Costs Details
Business area costs Pollution prevention Costs 5 Environmental equipment (dust collectors, blowers, etc.) 326 Maintenance, inspection, etc., of environmental facilities (dust collectors, wastewater treatment facilities), etc. 331
Global environmental conservation costs 164 Energy-saving equipment (inverters for air compressors, LED lighting, high-efficiency air conditioning equipment, etc.) 189 Installation, maintenance, inspection, etc., inspection of energy-saving equipment, etc. 353
Resource recycling costs 1 Water-saving and rainwater utilization equipment, grinding sludge solidification equipment 637 Waste recycling and reduction measures, disposal costs for general waste and industrial waste 638
Upstream and downstream costs 0 21 Analysis related to green procurement 21
Management activity costs 0 370 Personnel costs for environmental management system (EMS), information disclosure (advertisements, NTN reports) greening and cleaning of the site 370
Research and Development Costs 286 Purchase of testing equipment, prototyping costs, etc. 1,029 Research and development of eco-friendly products (bearings, CVJs, electric modules, renewable energy products, etc.) 1,315
Social activity costs 0 1 Greening and cleaning outside the company 1
Environmental damage response costs 0 5 Soil sampling and remediation costs 5
Total 456 2,578 3,034
(Reference) Total for the fiscal year ended March 31, 2021 622 2,739 3,361

Economic Benefits Associated with Environmental Protection Measures

(Million yen / year)

Item Costs Details
Global environmental conservation costs and benefits 79 Energy-saving effects of air conditioning, compressors, lighting, etc.
Resource recycling costs and benefits 1,233 Gain on sale of metal sludge and other valuable assets, etc.
Total 1,312
(Reference) Total for the fiscal year ended March 31, 2021 703

Environmental Conservation Effects

Indicators Fiscal year ended March 31, 2021 Fiscal year ended March 31, 2022
Total CO2 emissions 277,000 tons 300,000 tons
Waste reduction Recycling rate 98.1% Recycling rate 97.9%