5-Year Environmental Action Plan

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

Outline of the 5th 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 five-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.

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Reference Year, Target Year, Control Scope

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Targets of the 5th 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 from CO₂ emissions generated per unit of sales to CO₂ emissions volume. 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.

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Results of the 5th 5-Year Environmental Action Plan in FY2023

Below are the targets and results for FY2023, targets for FY2024, and targets for the final year of the current five-year action plan, in FY2025.
With the gradual recovery of global economic activity in FY2023, strong global passenger car sales led to an increase in the volume of shipments for automotive-related products for our Environment Business Group. On the other hand, through our pursuit of energy conservation and expanded efforts to increase renewable energy use, we reduced CO₂ emissions by approximately 200,000 metric tons.
As a result, we achieved CO₂ emissions of 560,000 metric tons against the target of 560,000 metric tons, as well as 25% of the target for rate of renewable energy use. We have also reached all other quantitative targets, including for waste and water withdrawal.

Results in FY2023 were as follows.

Results of the 5th 5-Year Environmental Action Plan in FY2023

Results of the 5th 5-Year Environmental Action Plan in FY2023

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