ENVIRONMENTAL ACTION PLAN "S-TEC"

To conserve energy, reduce chemical emissions and manage waste, we formulated priority action plans for conservation that we have outlined in [S-TEC], a company-wide activities plan that we have been promoting since FY2000.

[S-TEC] was conducted under the activity name “Global S-TEC Level 1″, which ran from the year 2015 to 2018.
Due to our globalization initiatives, the production to overseas affiliates ratio has increased. In accordance with our goals, we have determined domestic targets, overseas targets, overseas affiliates.

Theme Targets for FY 2018 Progress (% compared to the previous year) Initiatives in FY 2017 Evaluation
(1) Energy Saving Global Energy consumption per unit of production reduced by 5.9% in comparison to FY2014 ▲1.2%(▲0.1%) Areas of Improvement Improvements seen to cogeneration equipment at the Nagoya factory, etc.
Areas of Degeneration Increase seen in products that don’t efficiently utilize energy along with a decrease in production at some sites.
(2) Reduction of Greenhouse Gas Emissions Domestic Reduction of CO2 emissions to 190,000 tons or less 199,000 tons(▲0.3%) Areas of Improvement Fuel conversion applied to congeneration equipment for wastewater disposal facilities, etc.
Areas of Degeneration (2) Reduction of Greenhouse Gas Emissions
Overseas Reduction of CO2 emissions per production unit by 7.2% in comparison to FY2014 ▲0.0%(+0.2%) Areas of Improvement Reviewing the improvements made to the steam usage of vacuum pumps, etc. ×
Areas of Degeneration Product structure changes etc.
(3) Protection of Water Resources Global Reduction of water consumption per production unit by 6.8% in comparison to FY2014 ▲1.7%(▲1.5%) Areas of Improvement Reduction of water consumption while equipment is idle.
Reviewing cooling down methods, etc.
(4) Waste Reduction Global Generate less than 50,000 tons of waste 61,000 tons (+ 1.5%) Areas of Degeneration Generate less than 50,000 tons of waste ×
Landfill disposal volume: 10 tons or less 45 tons (+ 94.1%) Areas of Degeneration Temporary waste generated at SCTI (not expected to occur in FY2018) ×
(5) Reduction of chemical substance emissions Domestic VOC * Emissions are 80 tons or less 74 tons (▲ 25.1%) Areas of Improvement Goals of FY2018 achieved one year ahead of schedule due to full-scale operation of the Kashima Plant VOC equipment.

“Global” refers to our domestic and overseas consolidations

  • * PRTR substances subject to the revised and former laws stated by the Japan Chemical Industry Association

Evaluation criteria ◎: Significantly exceeded the target ○: The target was achieved / progressed smoothly △: Improvement was seen, but the target was not achieved ×: The target was not achieved / efforts were insufficient

Global S-TEC Level 2

In order to flexibly respond to changes occurring both internally and externally, we have completed our group’s 9th medium-term management plan one year ahead of schedule. Progress towards completing our 10th medium-term management plan has begun.

In terms of our environmental activities, efforts were made to complete our “Global S-TEC Level 1” program in conjunction with the 10th medium-term management plan. Preparations for the “Global S-TEC Level 2″ program began August 2018 and are expected to be completed August 2020

Energy Conservation

The “S-TEC” plan focuses on energy conservation and reducing greenhouse gas emissions.

When the Kyoto Protocol came into effect in 2005, we established the “Kyoto Protocol Activities Policy” and formed a working group to combat global warming issues with our domestic offices.
Efforts are being made to improve energy usage, production processes and effectively make changes to fuel.

Our global target is to reduce energy consumption per unit of production by 5.9% in comparison to FY2014
In FY 2017, the status of factories in Nagoya and Kyoto, SCR and SCTI saw significant improvements. However, the factory in Kinuura, SKT and the SDP Ogaki factory have seen a decline in improvement. The basic unit of energy consumption decreased by 0.1% compared to the previous year (1.2% reduction compared to FY2014)

Reduction of greenhouse gas emissions

For FY2018, our goal is to reduce CO2 emissions to 190,000 tons or less at domestic offices.
In addition, the domestic target for greenhouse gas emissions for 2030 is set at 160,000 tons or less, a 25.4% decrease from FY2005. It is a goal similar to what the current government of Japan has set.

In FY2017, domestic offices reduced CO2 emissions by renewing cogeneration facilities and altering fuel in wastewater treatment facilities.
However, due to an increase in production volume, it decreased only by 1,000 tons from the previous year to the current 199,000 ton amount. In the future, we will further reduce emissions by switching to heavier oil.

Overseas affiliates aim to reduce CO2 emissions per production unit by 7.2% in comparison to FY2014.
In FY2017, we took measures such as improving the vacuum pump and reviewing our usage of steam. Due to alterations in the product, there were no changes to be seen in comparison to the previous year (1.0% increase compared to FY2014).

Water Resource Protection

In order to protect our water resources, the “Global S-TEC Level 1” plan used the basic unit of water consumption per production unit volume as an indicator and aims to reduce it by 6.8% in comparison to FY2014.

In order to preserve water resources, we have established working groups at each domestic business site to promote various ways to reuse the water during the production process. Various initiatives such as reusing steam drains and others are being noted in a ledger to manage progress and share information with our company’s group.

In FY2017, we implemented measures such as reducing water usage when facilities are not operating and reviewing current cooling methods. It resulted in a 1.5% reduction from the previous year and a 1.7% reduction from FY2014.

Resource conservation and waste reduction activities

In order to effectively use our resources, we are working to implement the 3 Rs (Reduce, Reuse and Recycle).
After the second implementation of waste reduction initiatives, the amount of waste generated domestically dropped from 72,000 tons to 46,000 tons in 2014.
During our Global S-TEC Level 1 project, we expect to see an increase in production overseas, and with that, a lowered amount of waste to 50,000 tons or less with an amount to landfills to 10 tons or less.

However, the volume of products with high waste generation increased domestically.
Overseas, sales increased to 1,000 tons (a 12,000 ton increase from FY2014) due to changes in regulations implemented by China in FY2016.
The volume weighed in at 61,000 tons preceding changes. Due to sudden waste generation at SCTI, landfill disposal increased by 94% compared to the previous year.

Reduction in chemical emissions

The amount of PRTR-designated substances, the VOC emission reduction measures and their effects are listed in the CSR Report.

Voluntary activities are being conducted to determine the amount of chemical substances that were released and transferred into the environment. We will prioritize these actions for further emission reduction implications.

Because chemical substances that were released into the environment have been released into the earth’s atmosphere, new initiatives were set to combat these issues. Since FY2006, we have been working to reduce VOC emissions, including solvents that are not subject to PRTR laws.
Our goal is to reduce total emissions at domestic offices to 80 tons or less in FY2018

Due to the full-scale operation of the VOC equipment installed at the Kashima Plant in FY2015, emissions in FY2017 decreased by 26 tons from the previous year to 74 tons.
We achieved our domestic target for FY2018 one year ahead of schedule. VOC regulations are also set overseas with a Thai equivalent of the PRTR Law enforced in Thailand.
In China, the Chinese environmental protection tax was introduced in FY2018. In line with these trends, we are setting VOC reduction targets overseas as well.

FY 2017 Results for PRTR-designated Substances (domestic bases)

Number of substances handled Amount handled Amount emitted into the atmosphere Amount emitted into the water Amount emitted into the soil Amount of waste transferred
Our company 126 136,267 37.5 0.5 0 512.8
Our domestic affiliates 59 190,877 5.9 0.1 0 8.9
Total Total 132 327,144 43.4 0.7 0 512.7

Pollution Prevention

In order to prevent the pollution of the air and water, we will comply with regulations and laws through appropriate maintenance and management of equipment and periodic inspections.
Through various initiatives, we are working to reduce emissions of pollutants. In regards to soil and underground water contamination, we will continue to conduct investigations.
There are currently no alerts or emergencies. In FY2017, there have been no pollution alerts, environmental violations, administrative guidance or lawsuits.

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