Basic Concept
The Nisshinbo Group is aiming to increase corporate value as a more united corporate group by realizing its Corporate Philosophy — "Change and Challenge! For the creation of the future of Earth and People." With "Awareness and Concern towards our Environmental Impact" as the Group’s Business Conduct Guidelines, the Group has a deep understanding of environmental behavior and actively engage in and act on environmental activities. As an Environment and Energy Company group, the Group will continue to offer new products and systems that help protect the environment, save energy and create alternative sources of energy, while also providing solutions that address some of the greatest issues faced by humanity today, such as environmental destruction and natural disasters caused by climate change, to make life safer and more secure for people everywhere.
The Nisshinbo Group emphasizes the following environmental issues:
- ① Providing sustainable solutions
- ② Taking action against global warming
- ③ Contributing to a recycling-oriented society
- ④ Water-resource conservation measures
By setting environmental targets for the above issues and promoting activities to address them, the Group aims to contribute to the achievement of the "sustainable, decarbonizing and resource-recycling society" advocated by Japan and the United Nations, and to find solutions for customers’ social and environment issues. In so doing the Group is continuing to contribute to achieving the SDGs.
Promotion System
The Nisshinbo Group, as an Environmental Company, has established internal regulations for promotion of environmental management to contribute to the sustainable development of society on a global scale and to specify basic matters related to the promotion of environmental management.
The chief executive responsible for promotion of the environmental management of the Group is the President of Nisshinbo Holdings Inc. The Group is engaged in promotion activities of the environmental management under a system in which the Company's Managing Officer is responsible for these activities.
Similarly, at each of the Company's subsidiaries, the president or vice president of the core company serves as the chief executive responsible for promotion of the environmental management, and the general manager responsible for promotion of the environmental management and the person for promotion of the environmental management are appointed to promote environmental management promotion activities.
The "Sustainability Development Promotion Meeting" or the "Environmental Management Promotion Staff Meeting" are held once a year under the auspices of the Sustainability Development Department to discuss policies and issues related to the promotion of environmental management on a Group-wide basis.
The Environment Group of the Sustainability Development Department of Nisshinbo Holdings Inc. collects performance data and manages the progress of each Group company's activities toward environmental targets, and the progress is checked by the general manager responsible for promotion of the environmental management of the Company.
The Group conducts periodic environmental audits once a year to ensure that the environmental management system is being properly implemented, including compliance with environment-related laws and regulations. The representative of each of the Company's subsidiaries in charge of the general manager responsible for promotion of the environmental management conducts an environmental management review once a year to receive reports on changes to the environmental management system and the status of achievement of the annual environmental plan, as well as to issue instructions on the necessary implementation items for environmental management.
The Director and chief of the Corporate Strategy Center of the Company reports the details of changes to the Group's environmental management system, the status of achievement of the three-year environmental targets, and the results of environmental audits once a year at the board of management*. The President, who is the chief executive responsible for promotion of the environmental management, conducts environmental management reviews and issues instructions on matters necessary for environmental management. The management review is also reported to the Board of Directors, which discusses actions to be taken and oversees the targets and their progress.
* The Board of Management: Executive conference consisting of Directors, Executive officers, etc.
Specific Initiatives of the Nisshinbo Group
The Nisshinbo Group is developing activities with an emphasis on providing sustainable products and solutions through technological capabilities and innovation created by its diverse human resources. The Group will continue to offer new products and systems that help protect the environment, save energy and create alternative sources of energy, while also providing solutions that address some of the greatest issues faced by humanity today, such as environmental destruction and natural disasters caused by climate change, to address environmental and social issues.
Environmental Targets
The Nisshinbo Group’s Greenhouse Gas Emissions Reduction Targets
The Long-Term Environmental Target (Greenhouse Gas Emissions Reduction)
The Nisshinbo Group aims to capture climate change-related business opportunities and reduce risks. In order to reduce climate change-related risks, the Group declared in June 2022 to be carbon neutral by 2050 and established a new long-term environmental target with 2050 as the year of achievement. With the achievement of carbon neutrality as its top priority, the Group is actively promoting climate change countermeasures, such as energy conservation activities, switching to electricity derived from renewable energy, and reducing emissions of PFCs* (perfluorocarbons). At the same time, in June 2022, the Group revised its three-year and medium-term environmental targets for reducing greenhouse gas emissions.
* PFCs: Fluorinated greenhouse gases used in dry etching and other processes in semiconductor
The Medium-term Environmental Targets
The Nisshinbo Group positioned the environmental target, which is to be achieved by FY2030, as the medium-term environmental target and will work together as a company to achieve the targets for the four items shown in the table below by expanding sales of "products that contribute to a sustainable society*" including those that contribute to reducing greenhouse gas emissions throughout the supply chain as the top target.
* Within all products, the Group identifies "products that contribute to a sustainable society."
The Three-Year Environmental Targets
The Nisshinbo Group is developing activities to achieve the target for the following eight items, including the above four items, with the environmental target as the fifth three-year environmental target, which will be achieved in FY2024. The four items that are also included in the mid-term environmental goals are positioned as milestones in the mid-term targets. The Fifth Three-Year Environmental Targets are included in the Fifth Sustainability Promotion Plan.
FY2023 Results and Assessment of the 5th Three-Year Environmental Targets
The 5th Three-Year Environmental Targets (FY2022-2024)
| Key Action Items | The 5th Three-Year Environmental Targets |
Result as of FY2023 |
|---|---|---|
| Improvement of the sales percentage by the products that contribute to the development of the sustainable society | 60% or more of total sales | 53% of total sales |
| Reduction of greenhouse gas*1 emissions | Reduce by 35% or more compared to FY2014 | Reduced by 46% compared to FY2014 |
| Reinforcement of the maintenance of biodiversity | Activities in Japan and overseas at more than 5 new sites |
Active at 3 sites*2 (cumulative since FY2022) |
| Reduction of water usage per unit of sales | Reduce by 65% or more compared to FY2014 | Reduced by 78% compared to FY2014 |
| Promote Life Cycle Assessment*3（LCA） | 60% or more of total sales | 60% of total sales |
| Reduction of the energy consumption per unit of sales | Reduce by 15% or more compared to FY2014 | Reduced by 24% compared to FY2014 |
| Reduction of the volume of PRTR substances*4 emissions per unit of sales | Reduce by 30% or more compared to FY2014 | Reduced by 38% compared to FY2014 |
| Improvement of recycling rate | Increase the recycling rate to 90% or more | 88% |
Because of the transfer of all shares of TMD FRICTION GROUP S.A. (TMD), a subsidiary in the Automobile Brakes business, on November 30, 2023, and for other factors, TMD and 21 other companies were excluded from the scope of consolidation. Therefore, TMD and 21 other companies are included in the data until November 2023.
On December 27, 2023, HVJ Holdings, Inc. and its subsidiary Hitachi Kokusai Electric Inc. and 7 other companies were included in the scope of consolidation, but are not included in the data for FY2023.
*1 The Greenhouse Gas Emissions
・Scope1:
Energy related Greenhouse Gas Emissions = Σ[Fuel Consumption × CO2 Emission Factor*1-1]
Non-Energy related Greenhouse Gas Emissions = Non-Energy related CO2 Emissions + Σ [Greenhouse Gas Emissions other than CO2 × Global Warming Potential*1-2]
*1-1 Emission factors based on the Act on Promotion of Global Warming Countermeasures are used. Coal, however, uses a factor calculated based on actual calorific values, which is 1.870 t-CO2/t in FY2023.
*1-2 Global warming potential based on the Act on Promotion of Global Warming Countermeasures.
・Scope2:
Energy related Greenhouse Gas emissions = Σ [purchased electricity and purchased steam volume x CO2 emission factor*1-3]
*1-3 Purchased electricity uses, in Japan, adjusted emission factors for each electric company based on the Act on Promotion of Global Warming Countermeasures, and the in foreign countries, the emission factors for each electric company, and if unavailable, country-specific emission factors published in the relevant year of IEA Emissions Factors. Data for FY2021 and earlier use country-specific emission factors for each year from "IEA Emissions Factors 2021". For purchased steam, the emission factor calculated by the purchasing company (0.0583 t-CO2/GJ in FY2023) is used .
*1-4 For purchased electricity, alternative emission factors by electric power supplier were used until FY2020 based on the Act on Promotion of Global Warming Countermeasures. For data for past fiscal years after FY2014, greenhouse gas emissions were retroactively adjusted using the emission factors in *1-3 above.
*2 FY2023 Activities started: Ueda Japan Radio Co., Ltd. (Japan).
*3 Life cycle assessment (LCA): Understanding of environmental load, through the life cycle of a product, from raw materials, to production, use, and finally to disposal.
*4 PRTR substances: Substances subject to the Pollutant Release and Transfer Register (PRTR) system pursuant to the "Act on the Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment and Promotion of Improvements to the Management Thereof" and reports of their amounts of release and transfer must be filed.
The Nisshinbo Group conducted an assessment of its activities in FY2023 with regard to its Three-Year Environmental Targets (to be achieved by FY2024). All eight of the Group's measures are making steady progress, and five of them are on track to achieve their targets for FY2024.
Sales of "the products that contribute to the development of sustainable society" are growing steadily, accounting for 53% of the Group's FY2023 sales. The breakdown is as follows: friction materials compliant with copper and antimony regulations*1 in the Automobile Brakes business account for 19%, semiconductor products (contributing to energy saving and smaller chip size in electrical appliances) in the Micro Devices business account for 9%, non-iron shirts in the Textiles business account for 3%, disaster prevention and mitigation-related products in the Wireless and Communications business account for 2%, and others account for 19%.
Greenhouse gas emissions in FY2023 were 46% lower than in FY2014, the target level for FY2024 has been reached. The percentage of electricity used by the Group derived from renewable energy sources increased to 21% (compared to 8% in the previous fiscal year) as a result of the expansion of solar power generation facilities in Japan and overseas and the switch to renewable energy-derived electricity for purchased electricity. In addition, the installation of additional perfluorocarbon (PFC) and other gas abatement equipment in the Micro Devices business and the switch to insulation foaming agents in the chemicals business resulted in a decrease in emissions.
In the enhancement of biodiversity conservation activities, in FY2023, Nisshinbo Group registered the maintenance of forests and satoyama in consideration of biodiversity by the Nigiyaka na Mori Project of the Kamiko Forest Certification Council in which Ueda Japan Radio Co., Ltd. and other segments are also considering the details of new activities to be determined.
In FY2023, water consumption per sales was reduced by 78% compared to FY2014, the target level for FY2024 has been reached. Measures to reduce water consumption in the textile business, which uses a large amount of water, are making a significant contribution. Other segments are also making steady progress in water conservation activities.
In terms of the Life Cycle Assessment (LCA) promotion target, this represents 60% of the Group's FY2023 sales, and the scope of activities will be expanded to achieve the FY2024 target. In FY2023, LCA implementation was newly completed for ring yarn (general staple spun yarn) in the Textiles business and fuel cell separators in the Chemicals business, and the implementation rate is improving.
Energy used in FY2023 per sales was reduced by 24% from FY2014, achieving the FY2024 target ahead of schedule. In the textile business, the fact that PT. Nikawa Textile Industry stopped using coal boilers to generate electricity as of November 2021 made a significant contribution. In FY2023, the Group's energy use and energy use per sales decreased further because of production cuts in the Textiles and other businesses.
In FY2023, emissions of PRTR substances per sales were reduced by 38% compared to FY2014, the target level for FY2024 has been reached. Nanbu Plastics Co., Ltd. Susono Plant in the Precision Instruments business reduced the amount of paint through various improvement activities, such as standardization of paint conditions and digital setting of paint application flow rates, but emissions of PRTR substances into the environment increased due to changes and additions to the substances covered by the PRTR system as a result of the revision of the Chemical Substances Control Law*2.
In terms of the target for improving the recycling rate, the Group as a whole achieved 88% in FY2023. The treatment of friction material polishing powder in the automobile Automobile Brakes business is an issue, and Nisshinbo Group will promote the study of reuse methods and recycling destinations to achieve its goal.
*1 Copper and antimony regulations: Laws of and regulations Japan and overseas that restrict the use of copper and antimony, which are considered highly toxic when released into the environment.
*2 Chemical Substances Control Law: Law Concerning Reporting, etc. of Releases to the Environment of Specific Chemical Substances and Promoting Improvements in Their Management
The Status of Environmental Management System
As of the end of December 2023, 40 sites were certified in accordance with ISO 14001.
Organizations with ISO 14001 Certification (As of December 31, 2023)
In Japan (23 group companies )
- Nisshinbo Holdings Inc.
- NISSHINTOA IWAO INC.
- Japan Radio Co., Ltd.
- JRC Tokki Co., Ltd.
- Japan Radio Glass Co., Ltd.
- Nagano Japan Radio Co., Ltd.
- JRC Logistics Service Co., Ltd.
- Nagano Japan Radio Manufacturing Co., Ltd.
- NJ Components Co., Ltd.
- Ueda Japan Radio Co., Ltd.
- JRC Mobility Inc.
- Nisshinbo Micro Devices Inc.
- Nisshinbo Micro Devices AT Co., Ltd.
- Nisshinbo Micro Devices Fukuoka Co., Ltd
- Nisshinbo Brake Inc.
- Nisshinbo Mechatronics Inc.
- Nisshinbo Precision Instrument & Machinery Hiroshima Corp.
- Nanbu Plastics Co., Ltd.
- Kyushu Nanbu Plastics Co., Ltd.
- Excel Tokai Co., Ltd.
- Nisshinbo Chemical Inc.
- Nisshin Environmental Planning Inc.
- Nisshinbo Textile Inc.
In Overseas (17 group companies)
- Shenzhen NJRC Technology Co., Ltd. (China)
- Nisshinbo Micro Devices (Thailand) Co., Ltd. (Thailand)
- Nisshinbo Automotive Manufacturing Inc.
(The United States) - Nisshinbo Somboon Automotive Co., Ltd.
(Thailand) - Saeron Automotive Corporation (Republic of Korea)
- Nisshinbo Saeron (Changshu) Automotive Co., Ltd. (China)
- Saeron Automotive (Yantai) Co., Ltd. (China)
- Nisshinbo Mechatronics (Shanghai) Co., Ltd. (China)
- Nisshinbo Mechatronics (Thailand) Ltd. (Thailand)
- Nisshinbo-Continental Precision Machining (Yangzhou) Co., Ltd. (China)
- Nisshinbo Mechatronics India Private Limited (India)
- Toms Manufacturing Corporation (Philippines)
- PT. Standard Indonesia Industry (Indonesia)
- PT. Nikawa Textile Industry (Indonesia)
- PT. Nisshinbo Indonesia (Indonesia)
- Nisshinbo Do Brasil Industria Textil LTDA. (Brazil)
- PT. Naigai Shirts Indonesia (Indonesia)
Activities to raise awareness of the SDGs through environmental news
The Nisshinbo Group publishes environmental news four times a year to disseminate environment-related information to the Group companies in Japan. By explaining the relationship between environmental activities conducted by the Group and the SDGs, the Nisshinbo Group is promoting activities to raise awareness of the SDGs.
