Five-Year Environmental Action Plan
The NGK Group organizes environmental initiatives by creating ﬁve-year action plans. To achieve the goals of the five-year targets, we are promoting environmental activities and setting annual targets.
Outline of the Fifth Five-Year Environmental Action Plan (Fiscal 2021–2025)
We have established the Fifth Five-Year Environmental Action Plan, which encompasses our environmental action targets for fiscal 2021 through 2025.
This is the first five-year plan aimed at realizing the NGK Group Environmental Vision (announced in April 2021), which aims for net zero CO2 emissions by 2050. The Environmental Vision’s key themes are “carbon neutrality,” “a recycling-oriented society,” and “harmony with nature”.
Base Year, Target Year, Control Scope
Targets of the Fifth Five-Year Environmental Action Plan
The targets for each theme shown below have been established for fiscal 2025 which is the final year of the Fifth Five-Year Environmental Action Plan, and targets for the first year, fiscal 2021.
The plan pursues environmental action centered on the three themes of “carbon neutrality,” “a recycling-oriented society,” and “harmony with nature”, all of which is aimed at realization of the NGK Group environmental vision.
With regard to initiatives toward carbon neutrality, the conventional KPI used for CO2 has been basic unit per net sales; however, we have changed this to CO2 emissions volume in order to link it to our NGK Group environmental vision target. The intent of this change is to make it easier to gauge our progress towards our goal of net zero emissions by 2050, as well as our milestone target of a 50% reduction (370,000* metric tons) in CO2 emissions volume by 2030 compared with the base year of fiscal 2013. Also, in order to facilitate action aimed at expanding the use of renewable energy, we have established a target for renewable energy use rate of total energy usage throughout the Group. Achieving this target will not only bring the NGK Group closer to achieving net zero carbon emissions but also help promote more widespread adoption of renewable energy in society.
Further, along with climate change, we also recognize that water resources represent an area of significant environmental concern, and it has been our ongoing practice to evaluate water resource risks and take appropriate action in response. Under the current plan, we have established quantitative indicators that will help us take more substantive action in addressing these risks.
On the other hand, we are focused on social connection through contributions to environmental society and promotion of environmental communication. In terms of contributions to environmental society, we have traditionally used the growth rate in sales of products contributing to environmental protection as a target; however, in order to bring this more in line with the NGK Group environmental vision, we have set a target to increase the number of carbon-neutrality-related products registered. With regard to CSR procurement, we are seeking to understand the environmental impact, including CO2 emissions, exerted by our suppliers.
* Emissions are a revision of the calculation standard. Specifically, the power emission factor (coefficient for converting power consumption into CO2) will be changed from the conventional fixed value to the actual value of the power company every year. This will reflect the renewable energy utilization rate.
Ratio of electricity from renewable energy to total electricity consumption
Results of the Fourth Five-Year Environmental Action Plan
Below are the results of the fourth Five-Year Environmental Action Plan, which ended in fiscal 2020.
In the first fiscal half, demand dropped for core products due to the impact of the COVID-19 pandemic, and unfortunately we did not meet targets for products that contribute to environmental protection and for CO2 emission reductions versus BAU (business as usual). However, thanks to efforts at production bases and the startup of new factories and new production lines, production efficiency improved, and we met our target for CO2 emission intensity of sales, something we had not been sure of achieving.
- *1 Self-evaluation standards for achievement level: ○: Target achieved; ×: Target not achieved
- *2 Reduction rate against BAU (business as usual) indicates the percentage rate of emissions reduction resulting from implemented actions compared to a case in which no improvement action was taken since fiscal 2013. By not incorporating the influence of foreign exchange movements and other factors, this indicator allows a direct grasp of the efforts by each site.
- *3 NGK basic unit per transport volume expresses in metric ton-kilometers the amount of crude oil equivalent fuel used.
- *4 Based on the computation criteria stipulated in the Act on the Rational Use of Energy.