Sustainability

Environmental Management

Five-Year Environmental Action Plan

The NGK Group has established the Fourth Five-Year Environmental Action Plan (fiscal 2016–2020). To achieve the goals of the Plan, we are promoting environmental activities, setting annual targets.

Outline of the Fourth Five-Year Environmental Action Plan (Fiscal 2016–2020)

The NGK Group organizes environmental initiatives by creating five-year action plans. The Fourth Five-Year Environmental Action Plan, initiated in fiscal 2016, has been formulated to broadly encompass major global environmental challenges and to select two key issues each for two groups of themes, namely, priority themes and focus themes.
The two priority themes are: environmental/social contribution through products; and reducing CO2 emissions and discarded materials. The first priority theme directly reflects the core concept of the NGK Group philosophy, while the other theme closely relates to NGK’s medium- to long-term initiative of New/Reformed Manufacturing Structures for increasing competitiveness. For focus themes, we have also set two issues: biodiversity conservation and water resource risk management/response, both being major challenges for which socially responsible corporate action is required with greater urgency.

Base Year, Target Year, Control Scope

The new Five-Year Environmental Action Plan has been designed to correspond with the business initiative of New/Reformed Manufacturing Structures. Accordingly, the base year of the Plan has been set to coincide with the initiative. In principle, activities are managed on a consolidated basis. The consolidated method has been adopted in response to the recent changes in our global production output structure, particularly increased production at overseas manufacturing sites and more products that go through the supply chain covering multiple locations worldwide.

Diagram of how our Five-Year Environmental Action Plan is formulated. Discussions start with three main points: the NGK Group Philosophy, medium- to long-term management strategy, and environmental issues of concern to society. Ideas are compiled into four areas of focus and improvement: products that contribute to protecting the environment, reduction of CO2 emissions, action to preserve biodiversity, and commitment to water-resource-related risk management.

Five-Year Environmental Action Plan Progress Report

The table below summarizes the Fourth Five-Year Environmental Action Plan: targets and results for fiscal 2019, and targets and forecasts for fiscal 2020, the final year of the plan.
In fiscal 2019, compared to forecasts at the start of the period, negative factors such as lower sales volume in core products and negative currency effects prevented us from achieving annual goals for a number of the items for which we set numerical goals. Fiscal 2020 is the final year of the Fourth Five-Year Environmental Action Plan. Due to issues caused by the growing COVID-19 pandemic, such as production stoppages at overseas manufacturing bases and lower demand, forecasts point to non-achievement of the goals we set for many items this year. However, with our employees doing everything possible to restore operations to normal at manufacturing bases and demand returning to a recovery track in the second half of fiscal 2020, we are confident that performance will exceed forecasts.

Targets and results for fiscal 2019, and targets for fiscal 2020, the final year of the Five-Year Environmental Action Plan. We have set targets such as increasing the number of products that contribute to protecting the environment by 60% compared to fiscal 2013 and reducing CO<sub>2</sub> emissions by 20% on a per unit sales basis.

Notes:
  • Self-evaluation standards for achievement level: ○: Target achieved; ×: Target not achieved
  • 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.
  • NGK basic unit per transport volume expresses in metric ton-kilometers the amount of crude oil equivalent fuel used.
  • Based on the computation criteria stipulated in the Act on the Rational Use of Energy.
  • Covers all manufacturing sites of the NGK Group.