5-Year Environmental Action Plan

The NGK Group formulates five-year action plans for the environment. To achieve the goals of the 5-year targets, we are promoting environmental activities and setting annual targets.

Outline of the Fifth 5-Year Environmental Action Plan (FY2021–2025)

In FY2021, we established the Fifth 5-Year Environmental Action Plan, which encompasses our environmental action targets through FY2025.
This is the first 5-year plan aimed at realizing the NGK Group Environmental Vision announced in April 2021, which targets net zero CO₂ emissions by 2050. The Environmental Vision’s key themes are “carbon neutrality,” “a recycling-oriented society,” and “harmony with nature.”

Reference Year, Target Year, Control Scope

Targets of the Fifth 5-Year Environmental Action Plan

The plan pursues environmental action centered on the three themes of “carbon neutrality,” “a recycling-oriented society,” and “harmony with nature,” all of which are aimed at realization of the NGK Group Environmental Vision.
With regard to initiatives toward carbon neutrality, the KPI used for CO₂ has been changed to CO₂ emissions volume from basic unit per net sales. The intent of this change is to link the KPI to our NGK Group Environmental Vision target, and make it easier to gauge our progress towards our milestone target of a 50% reduction (370,000* metric tons) in CO₂ emissions by FY2030 compared with the reference year of FY2013 and net zero CO₂ emissions by 2050. Also, in order to facilitate action aimed at expanding the use of renewable energy, we have established a target for the rate of renewable energy to total energy usage for the entire 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.
In terms of recycling of resources, similar to the Fourth 5-Year Plan, we have set targets for continuous improvement using the reduction of waste generated per unit of sales, reduction rate against business as usual (BAU), and the recycling rate as management indicators.
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 changed to quantitative indicators from qualitative indicators that will help us take more substantive action in addressing these risks.
From the perspective of connecting with society, we are focused on 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 and services registered. With regard to CSR procurement, we are seeking to assess environmental data from our suppliers, including CO₂ emissions.

The calculation standards for emissions have been revised to match the market standards stipulated by the GHG Protocol. Specifically, the power emission factor (coefficient for converting power consumption into CO₂) has been changed from the conventional fixed value to the actual value of the power company every year. This will reflect the renewable energy utilization rate.

Results of the Fifth 5-Year Environmental Action Plan in FY2021 (first year)

Below are the targets and results for FY2021, targets for FY2022, and targets for the final year of the current 5-year action plan, in FY2025.
While there were signs of recovery as response to the COVID-19 pandemic progressed, the global economy remains uncertain due to disruption in the supply chain as a result of semiconductor shortages, soaring prices of raw materials, and the tense situation in Ukraine in the second half of FY2021. Despite this, the NGK Group still saw an increase in volume mainly in automotive related products and semiconductor manufacturing equipment thanks to the improved operating rates of high efficiency equipment that we invested in a few years ago, which led to an improvement in the basic units of the above product series. In addition, through our expanded efforts to increase renewable energy use since FY2021, we reduced CO₂ emissions by approximately 200,000 metric tons.
As a result, we achieved CO₂ emissions of 620,000 metric tons against the target of 700,000 metric tons, as well as 25% of the target for rate of renewable energy use. The Fifth 5-Year Environmental Action Plan and the NGK Group Environmental Vision are off to a good start as we have also reached all other quantitative targets, including for other emissions and water consumption.

Results in FY2021 were as follows.