Sustainability

Environmental Report / NGK’s Core Policy on the Environment

Scope of Application

In addition to promoting the development and popularization of products and services that can help protect the environment, the NGK Group is endeavoring to preserve the global environment by improving manufacturing processes and developing and introducing manufacturing technology that has less environmental impact.

NGK’s Core Policy on the Environment*

Recognizing that protecting the environment is a vital issue that all of humanity must face, the NGK Group formulated its Core Policy on the Environment in April 1996 in order to bring its corporate activities into harmony with the environment. Based on the NGK Group Environmental Vision announced in April 2021, we will promote initiatives to contribute to carbon neutrality, a recycling-oriented society, and harmony with nature. On the basis of this policy, the NGK Group works to reduce the environmental impact of business activities, and actively strives to help protect the environment by developing products and technologies to that end.

* Revised in April 2021

Environmental Management System

The NGK Group promotes environmental conservation activities in accordance with our Core Policy on the Environment through initiatives pertaining to environmental management frameworks and the Environmental Management System (EMS) implemented by global Group companies working in conjunction with one another.

Environmental Management Promotion System

In addition to environmental management systems built independently at each site of NGK (Nagoya, Chita, Komaki, Ishikawa), we have established a consolidated management system to control environmental activities at all Group companies in and outside Japan under the leadership of each Business Group. The Five-Year Environmental Action Plan and the related annual plan are shared across the entire Group via the Business Groups to be incorporated into activity plans of each Group company.

To promote unified environmental management for the entire Group, annual liaison meetings are held for Group companies in Japan, while headquarters personnel audit Group companies in and outside Japan on a regular basis. Thus, we create interactive discussion and support opportunities to address issues facing each company.

Environmental Management Promotion System

① Environment, Industrial Safety & Health Committee

In principle, this committee meets twice each year. Other meetings are held at the discretion of the chair.

Governing Structure

Chair President appoints the chair in light of Executive Committee deliberations (As of July 2021, Executive Vice President)
Vice Chair Appointed by Committee Chair (As of July 2021, General Manager of Environment, Industrial Safety & Health Dept.)
Members Executive Vice President, Corporate Officers in charge of Head Office and Business Divisions, Vice Presidents responsible for Headquarters Departments, Group Executives, General Managers, Director of each site (General Manager of Pollution Control, General Safety and Health Manager), General Manager of Environment, Industrial Safety & Health Dept., General Manager of Corporate Communications, General Manager of Corporate Strategy Office, General Manager of Human Resources Dept., General Manager of Group Compliance, General Manager of Finance & Accounting Dept., General Manager of Legal Dept., General Manager of General Affairs Dept., General Manager of Construction & Maintenance Dept., General Manager of Global Engineering Center, and others designated by the Committee Chair

② Environmental Expert Committee

In principle, this committee meets four times each year. Other meetings are held at the discretion of the expert committee chair.

Governing Structure

Expert Committee Chair General Manager of Environment, Industrial Safety & Health Dept., General Manager of ESG Promotion Dept.
Vice Chair General Manager of Construction & Maintenance Dept.
Members General Manager of Business Planning Dept., Energy Infrastructure Business Group, General Manager of Business Planning Dept., Ceramic Products Business Group, General Manager of Safety, Quality & Environment Dept., Electronics Business Group, General Manager of of Business Planning Dept., Process Technology Business Group, persons in charge of promoting environmental activities in each division, Group Manager of ESG Promotion Department, Group Manager of Environment, Industrial Safety & Health Dept., others designated by the Expert Committee Chair

③ Environmental Committees at Each NGK Site

In principle, committees of each NGK site (Nagoya Site [headquarters, Atsuta/Mizuho], Chita Site, Komaki Site, Ishikawa Plant) meet twice each year in each area. They thoroughly convey matters determined by the Environment, Industrial Safety & Health Committee, and communicate and discuss issues and topics in each area (five sites hold two meetings each for total of 10 per year).

④ Environmental Management In and Outside Japan

Business divisions of NGK, including those at Group companies in and outside Japan, have environmental management systems aimed at realizing NGK’s Core Policy on the Environment. The NGK headquarters surveys environmental performance at Group companies and conducts audits to monitor their conformance to environmental laws. If problems are discovered, the causes and remedies are determined and disseminated throughout the Group. At Group companies in Japan involved in manufacturing, annual liaison meetings are held in order to convey environmental policy and to share information on matters such as companies’ environmental management status and effective environmental initiatives.

Environmental Management System (ISO 14001, etc.) Initiatives

The NGK Group encourages the acquisition of ISO 14001 or third-party certifications (such as Eco Stage 2 or Eco Action 21 in Japan) meeting this standard to systematically and continuously develop its environmental conservation activities in line with NGK’s Core Policy on the Environment.
Under this initiative, all Group companies (excluding new Group companies), including those outside Japan, as well as the Nagoya, Chita, Komaki, and Ishikawa sites, have received certification. Two of these are bases that were newly certified in fiscal 2020.

Certification of Environmental Management System

As of June 2021

Category Number of manufacturing bases Number of bases certified
NGK 4 4
Domestic
Group
Energy Infrastructure Business Group 5 5
Ceramic Products Business Group 1 1
Electronics Business Group 8 8
Process Technology Business Group 4 4
Overseas
Group
Energy Infrastructure Business Group 3 3
Ceramic Products Business Group 10 10
Electronics Business Group 4 4
Process Technology Business Group 4 4

New production bases operating less than two years not covered.

External Organizations’ Evaluation of NGK Environmental Management

On the right is an evaluation by external organizations of NGK’s recent environmental management and ESG activities.
Our fiscal 2020 rank was B for CDP-Climate Change and CDP-Water Security lists. Since fiscal 2016, we have been selected every year for the Dow Jones Sustainability Asia Pacific Index. In the Nikkei Environmental Management Survey, NGK’s highest placing was 50th, in fiscal 2017. In the fiscal 2019 Nikkei SDGs Management Survey, we received a fiscal 2020 deviation value of 59.6.

ESG Company Evaluation

Evaluation index Survey year
2016 2017 2018 2019 2020
CDP-Climate Change B B B A- B
CDP-Water Security B B B- B- B
DJSI/Asia Pacific Selected Selected Selected Selected Selected
Nikkei Environmental Management Survey 109th 50th 62nd - -
Nikkei SDGs Management Survey - - - Deviation value: 59.6 Deviation value: 59.1

Environmental Audits

NGK conducts internal audits and external audits (renewal audits) of the environmental management system at the Nagoya, Chita, and Komaki sites, as well as the Ishikawa Plant. Group companies also conduct these same internal audits, and external reviews of the environmental management systems are conducted by external auditors at all Group companies.
In fiscal 2020, in the same way as with the previous year, there were no significant findings. In the event of a significant finding, the relevant division and Environmental Management Dept. work together to review and implement countermeasures, as well as inform the Environment, Industrial Safety & Health Committee in each area in an attempt to horizontally deploy these measures.