E nvironment Prevention of Global Warming The NTN Group strives to reduce CO2 emissions generated during production and transportation. Reduction of CO2 Emissions Efforts in the NTN Group in Japan CO2 emissions target achieved For the fiscal year ended March 31, 2016, our CO2 emissions were 275,000 tons/year, exceeding our emissions reduction target by 5,000 tons. As for our target of reducing our emissions intensity by 23.0% (to 0.67 ton– CO2/million yen) relative to that of the fiscal year ended March 31, 1998, we couldn’t achieve our target; however, we succeeded in reducing our emissions intensity (from 0.70 ton–CO2/million yen of the previous fiscal year to 0.69 ton–CO2/million yen), which represented a 21.2% reduction relative to that for the fiscal year ended March 31, 1998, due to a decrease in our production scale. For the fiscal year ending March 31, 2017, we set targets of CO2 emissions of 273,000 tons/year and CO2 emissions intensity reduction of 21.1% as compared with that of the fiscal year ended March 31, 1998, (0.69 tons– CO2 / million yen). CO2 Emissions and CO2 Emissions Intensity CO2 emissions (10,000 tons/year) 35.0 0.87 30.0 25.0 20.0 20.6 CO2 emissions intensity Emissions intensity (ton-CO2 /million yen) 1.00 28.8 0.69 26.9 27.2 27.9 27.5 27.3 0.80 0.70 0.73 0.70 0.69 0.69 0.60 15.0 0.40 10.0 0.20 5.0 0 1998 (Reference year) 2012 2013 2014 2015 2016 2017 0 (Target) (Years ended/ending March 31) Conversion to a High-Frequency Induction Furnace In December 2015, NTN CASTING CORP. introduced a high-frequency induction furnace. By switching to induction furnace from cupola furnace using conventional coal coke, we were able to reduce our CO2 emissions by almost half. Moreover, we succeeded in reducing both energy consumption and the quantity of dust generated. In addition, we achieved a higher level of safety because the new induction furnace no longer requires that material be bailed out from the furnace. High-frequency induction furnace Two business sites of the NTN Group are awarded commendations as “Excellent Energy Management Company.” 69 NTN FUKUROI CORP. and NTN Advanced Materials Corp. were commended by the chairman of the Chubu Electricity Use Rationalization Committee as “Excellent Energy Management Company.” The Chubu Electricity Use Rationalization Committee raises awareness about electricity and engages in activities to promote electricity utilization. Every year, it commends individuals, companies, and groups who promote rationalization and management of energy use. NTN FUKUROI CORP. was a recipient of a commendation because it engaged in energy-efficiency initiatives covering about 40 items, including adopting inverters for machinery coolant pumps and grinder coolant pumps and adjusting the operating schedules of facilities with the cooperation of all divisions. In addition, NTN Advanced Materials Corp. was evaluated for its various energy-efficiency initiatives, which included reducing the load on its air compressors and decreasing overall energy consumption by 9% compared with the level of the preceding fiscal year. Commendation ceremony (NTN representatives are fourth and fifth from the right) Reducing CO2 emissions in logistics For the fiscal year ended March 31, 2016, we achieved our target for CO2 emissions reduction attributable to logistics by emitting only 12,800 tons year (exceeding our reduction target by 400 tons). Moreover, we reduced our logisticsrelated CO2 emissions intensity to 0.0345 tons- CO2/million yen from 0.0349 tons-CO2/million yen, thus meeting our target. As for the fiscal year ending March 31, 2017, we will make efforts to achieve our target of CO2 emissions set to 12,800 tons/year and of the emissions intensity to 0.0345 ton–CO2/million yen. Extending Third-Party Verification to include Scope 3 emissions Continuing the achievement set the preceding fiscal year, we received third-party verification of the “CO2 emissions attributable to in-company practices (Scopes 1 and 2).” We also received third-party verification by SGS Japan Inc. regarding the “CO2 emitted throughout the supply chain by practices outside the company (Scope 3).” In the future, we will expand the verification range of Scope 3 and will take steps to reduce CO2 emissions throughout our supply chain. CO2 Emissions and CO2 Emissions Intensity in logistics CO2 emissions (10,000 tons / year) 2.00 0.0369 1.50 1.37 0.0346 1.35 0.0366 0.0370 1.32 1.30 0.0349 0.0345 0.0345 1.29 1.28 1.28 For the fiscal year ended March 31, 2016, our CO2 emissions totaled 330,000 tons/year, which satisfied our target (exceeding our reduction target by 7,000 tons). As for our target of reducing our emissions intensity by 13.0% (to 1.067 ton–CO2/million yen) relative to that of the fiscal year ended March 31, 2007, we couldn’t achieve our target; however, we did succeed in reducing our emissions intensity (from 1.08 ton–CO2/million yen of the previous fiscal year to 1.072 ton–CO2/million yen), which represented a 12.8% reduction relative to that for the fiscal year ended March 31, 2007. For the fiscal year ending March 31, 2017, we set targets of CO 2 emissions of 346,000 tons/year and CO2 emissions intensity reduction of 14% as compared with that of the fiscal year ended March 31, 2007, (1.06 tons – CO2/ million yen). Introduction of Solar Power Generation in Shanghai Shanghai NTN Corp. (Shanghai NTN) installed about 30,000 photovoltaic panels (representing an area of about 90,000 square meters) on the roofs of all six plants and began generating electricity from January 2016. This system is expected to generate 7 million kWh annually at a rated output of 5,200 kW, which will be devoted to about 12% of the electricity consumption of Shanghai NTN in future. Moreover, by reducing CO2 emissions by 7,000 tons annually, this initiative will help to take measures to reduce the summer heat. Photovoltaic panels installed on plants 0.040 0.030 1.00 0.020 0.50 0.010 0 0 2011 2012 2013 2014 2015 2016 2017 (Target) (Years ended/ending March 31) Efforts in the NTN Group Overseas CO2 emissions targets achieved CO2 emissions intensity Emissions rate (ton-CO2/million yen) CO2 Emissions and CO2 Emissions Intensity CO2 emissions Americas Europe Asia China CO2 emissions intensity Emissions intensity (ton-CO2 /million yen) (10,000 tons/year) 1.50 60 50 1.23 1.12 1.13 1.13 30.1 30.8 40 27.5 30 20 1.08 1.07 1.06 31.5 33.0 34.6 19.3 1.00 0.50 10 0 2007 (Reference year) 2012 2013 2014 2015 2016 2017 0 (Target) (Years ended/ending March 31) One business site in Germany and two in France obtained ISO 50001* registration Since 2013, NTN Kugellagerfabrik (Deutschland) G.m.b.H. (DMF) in Germany has been preparing for the introduction of the ISO 50001 standard. Under the leadership of its management, it has pushed forward with company-wide energy-efficiency initiatives and obtained a detailed understanding of energy management with respect to individual processes. The company thus improved its energy efficiency and reduced its costs, and as a result it was able to obtain certification of registration in December 2015. At the same time, NTN-SNR ROULEMENTS (NTN-SNR) and NTN TRANSMISSIONS EUROPE (NTE), both in France, obtained the Members of the DMF Energy Management same certification. Committee and ISO certificate * ISO 50001 was published by the International Organization for Standardization in June 2011 as the international standard for energy management systems. It is intended to encourage companies to manage their energy consumption and implement continuous improvements. 70
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