Resource Conservation | Contribution to the Environment and Energy Sector | Sustainability

Basic Concept

The Nisshinbo Group's Business Conduct Guidelines include Awareness and Concern towards its environmental impact. The Group is committed to promoting recycling and other activities with a view to improving the quality of resource recycling, and faithfully realizing a safe and secure society for all people.

【Main measures】

① Proper disposal of industrial waste through ISO 14001 activities while ensuring proper waste disposal governance
② Reduce waste emissions by promoting the 3Rs (Reduce^*1, Reuse^*2,Recycle^*3)
③ Promoting reuse and reduction of packaging materials used
④ Selection and consignment of outstanding waste recycling companies and activities to promote the recycling and reuse of waste at overseas sites where the conditions for waste treatment differ

*1 Reduce: Reduce waste by using items carefully

*2 Reuse: Use repeatedly what is available.

*3 Recycle: Reuse garbage as a resource.

Please refer to "Promotion System" in "Environmental Management" for the promotion system.

Specific Initiatives of The Nisshinbo Group

6th Sustainability Promotion Plan (to be achieved by FY2027)

Improvement of recycling rate: Increase the recycling rate to 93% or more.

The Nisshinbo Group established the 6th Three-Year Environmental Goals (6th Sustainability Promotion Plan) with the fiscal year ending FY2027 as the target year, setting the promotion of environmental management as a priority activity and establishing the above KPIs to promote improvement of recycling rate.

The recycling rate for FY2025 reached 93%, a 1% increase from the previous year, and has already met the target set for FY2027. The goal was achieved by promoting initiatives to crush the waste plastic generated during the manufacturing process and to reuse the waste as raw material, which helped reduce waste generation and advance reuse efforts.

The Nisshinbo Group will continue to work to reduce the amount of waste generated while striving to maintain and improve its recycling rate.

Please refer to "Environmental Management" for details regarding of the "3-Year Environmental Targets."

Please refer to "Sustainability Promotion Plan and KPIs" for details regarding of the "Sustainability Promotion Plan."

Volume of Waste Generated

The Nisshinbo Group generated (including recycled waste) 31.2 thousand tons of waste in FY2025, a slight increase from the previous fiscal year. The amount of waste generated per unit of sales was 0.062 t/million yen, a decrease of 1% from the previous fiscal year.

Trends in the Volume of Waste Generated and Volume of Waste Generated per Unit of Sales

※1 Nisshinbo Holdings Inc. (the "Company") excluded TMD Group, which was a consolidated subsidiary, from the scope of consolidation, due to its transfer, which took place on November 30, 2023. As a result, data for TMD Group is included in the aggregation up to November 2023.

※2 On December 27, 2023, the Company included KOKUSAI DENKI Electric Group within its scope of consolidation, and data for the group is included from FY2024.

※3 On November 28, 2024, the Company included ARGONICS GmbH and ARGONAV GmbH within the scope of consolidation as subsidiaries in the Wireless and Communications business. However, data for these companies is not included in the FY2024 data.

Trends in the Recycling Volume and Recycling Rates

*1 Nisshinbo Holdings Inc. (the "Company") excluded TMD Group, which was a consolidated subsidiary, from the scope of consolidation, due to its transfer, which took place on November 30, 2023. As a result, data for TMD Group is included in the aggregation up to November 2023.

*2 On December 27, 2023, the Company included KOKUSAI DENKI Electric Group within its scope of consolidation, and data for the group is included from FY2024.

*3 On November 28, 2024, the Company included ARGONICS GmbH and ARGONAV GmbH within the scope of consolidation as subsidiaries in the Wireless and Communications business. However, data for these companies is not included in the FY2024 data.

Trends in Volume of Waste Generated by Business and Recycling Rate by Business

The Nisshinbo Group has set the target of achieving a 95 % recycling rate by FY2030. To this end, The Group is engaging in initiatives to reduce the amount of waste generated by each business.

Waste generated by business segment (including recycled waste) accounts for 34% of the total for the Precision Instruments business of which 96% is recycled.

In terms of recycling rates by business, the treatment of the abrasive powder from brake friction material at overseas sites in the Automobile Brakes business is an issue, and reuse methods and recycling destinations are being investigated.

Trends in Volume of Waste Generated by Business and Recycling Rate by Business

*2 On December 27, 2023, the Company included KOKUSAI DENKI Electric Group within its scope of consolidation, and data for the group is included from FY2024.

Examples of Nisshinbo Group

Zero Emissions

Throughout the Nisshinbo Group, the Group is working toward zero emissions (a recycling ratio of 99% or more). Of its locations that generated 10 tons of waste or more in FY2025, 32 locations achieved zero emissions.

Sites that have Achieved Zero Emissions

Japan Radio Co., Ltd. Nagano Plant
Japan Radio Co., Ltd. Kanto Logistics Center
Japan Radio Co., Ltd. Ueda Logistics Center
Japan Radio Co., Ltd. Sanada Warehouse
Japan Radio Co., Ltd. Tatsumi Office
Japan Radio Co., Ltd. Kansai Regional Branch
Japan Radio Co., Ltd. Hyogo Office
Japan Radio Glass Co., Ltd.
Nagano Japan Radio Co., Ltd. Head Office & Factory
Nagano Japan Radio Manufacturing Co., Ltd.^* Head Office & Factory
Nagano Japan Radio Manufacturing Co., Ltd.^* Ueda Office
Ueda Japan Radio Co., Ltd. Head Office & Main Factory
JRC Tokki Co., Ltd. Main Plant
Nisshinbo Micro Device Inc. Kawagoe Plant
Nisshinbo Micro Device Inc. Yashiro Plant
Nisshinbo Micro Devices Fukuoka Co., Ltd.
Nisshinbo Brake Inc. Tatebayashi Plant
Nisshinbo Mechatronics Inc. Miai Machinery Plant
Nisshinbo Mechatronics India Pvt. Ltd.
NISSHINBO COMPREHENSIVE PRECISION MACHINING (GURGAON) PRIVATE LIMITED
Nambu Kasei Co., Ltd. Head Office
Nanbu Plastics Co., Ltd. Susono Plant
Nanbu Plastics Co., Ltd. Oigawa Works
Kyushu Nanbu Plastics Co., Ltd.
Nisshinbo Chemical Inc. Chiba Plant
Nisshinbo Chemical Inc. Tokushima Plant
Nisshinbo Chemical Inc. Toke Development Center
Nisshinbo Textile Inc. Tokushima Plant
Nisshinbo Textile Inc. Yoshinogawa Plant
Nisshinbo Do Brasil Industria Textil LTDA.
PT. Naigai Shirts Indonesia
Nisshinbo Holdings Inc. Toke Development Center

* Because of the reorganization of the group companies, Nagano Japan Radio Manufacturing Co., Ltd., was absorbed by Nagano Japan Radio Co., Ltd., effective January 1, 2026.

Specific Activities of the Group Companies

Efforts to Reduce Waste in the Employee Cafeteria

Large-scale, complex initiatives are not always required to reduce plastic waste; sometimes, simply making small changes to daily habits can yield significant results. The employee cafeteria at the Rotterdam headquarters of Alphatron Marine in the Netherlands is implementing several practical measures to reduce plastic waste.

Starting in September 2025, the cheese and sausage served in the employee cafeteria are no longer delivered pre-sliced and individually wrapped in plastic. Instead, cafeteria staff serve the items on reusable platters. This change reduced plastic packaging waste from these products by at least 70%.

The cafeteria also revised the way it serves beverages. Instead of purchasing milk and fruit juice in individual cartons or bottles, the cafeteria now buys them in bulk containers, and employees use reusable cups. This change reduced plastic waste from beverage packaging by at least 50%, while maintaining the same selection and convenience as before.

These improvements demonstrate that thoughtful choices made in day-to-day operations can have a significant impact on the environment. By rethinking how it provides food and beverages, Alphatron Marine is taking concrete steps toward creating a more sustainable workplace, proving that small, cumulative changes can indeed lead to significant results.

Digitization of Submission Drawings

GOYO ELECTRONICS CO., LTD., manufactures industrial production equipment. The company has always provided customers with delivery drawings in paper format for these products. To promote a paperless environment, GOYO ELECTRONICS is working with customers to digitize these drawings.

In FY2023, GOYO ELECTRONICS handled 217 cases (equivalent to 0.14 tons of paper), in FY2024, 244 cases (0.15 tons), and in FY2025, 268 cases (0.17 tons). For the delivery of drawings, the company previously sent electronic data on CDs; however, following discussions with customers, GOYO ELECTRONICS is now utilizing cloud services to further conserve resources, including reducing shipping costs.

GOYO ELECTRONICS will continue to move toward a paperless environment while seeking their customers' understanding.

Resource Conservation Measures Through Paperless Initiatives

The Yashiro Plant of Nisshinbo Micro Devices Inc. is digitizing documents that were previously produced on paper as part of its resource-conservation efforts.

In January 2025, the Facilities Department reduced annual paper consumption by 0.003 tons (636 sheets) by digitizing monthly work schedules, energy graphs, and electricity reports. In April 2025, the General Affairs Department switched to digital formats for Safety Data Sheets (SDS) at locations where digitization was feasible, which resulted in an annual reduction of 0.008 tons (2,032 sheets) of paper usage.

Until now, Nisshinbo Micro Devices was accustomed to searching through paper documents, so there was some resistance and confusion about switching to a digital system. However, the company received feedback that search operations have become faster with repeated practice.

Nisshinbo Micro Devices will continue to promote this as part of its ongoing improvement efforts since further progress toward a paperless environment will help reduce paper waste.

Paper copies (available at each location)

Recycling of Waste Plastic

The Miai Machinery Plant of Nisshinbo Mechatronics Inc. is working to recycle waste plastic with the aim of promoting resource circulation and reducing environmental impact.

The plant uses glass-fiber-reinforced resins and a variety of other reinforced resins in its injection molding processes. Defective products and excess resin generated during the process are sorted by material type, ground up, and reused as recycled raw materials on the production line. This approach achieves both a reduction in the use of new materials and a reduction in waste. For the grinding process, the plant uses low-speed grinders (low noise, low vibration) on the production line to ensure a safe working environment, while outside the production line, the plant introduced high-speed, high-capacity grinders to establish an efficient processing system. In addition, as a result of expanding its facilities by introducing in-process and out-of-process shredders in FY2024 and FY2025, the amount of recycled materials used increased from 102 tons in FY2024 to 121 tons in FY2025 (an increase of approximately 19% year-over-year). Furthermore, as part of its efforts to reduce waste generation, The plant is promoting the expanded use of hot runner molds and initiatives to reduce in-process defects, thereby working to reduce waste from both the perspectives of prevention and reuse.

The plant will continue to balance the expanded use of recycled materials with the minimization of waste generation, thereby contributing to the realization of sustainable manufacturing.

Reuse of Plastic Resins

Nisshinbo Mechatronics (Thailand) Ltd. promotes the reuse of plastic resins as a key annual initiative.

The company grinds the waste plastic generated during the production process (including runners and in-process defective products) and reuses it as a resource. In addition, the company is continuously working to reduce in-process defects and is striving to minimize the generation of waste plastic. To promote reuse, Nisshinbo Mechatronics (Thailand) is working to increase the proportion of recycled plastic in its existing products while expanding the range of items eligible for reuse. Furthermore, while white plastic waste was previously sold because of the risk of foreign material contamination, the company has now achieved reuse by using the reconditioning (re-coloring) services provided by external vendors. To ensure that these initiatives proceed steadily, Nisshinbo Mechatronics (Thailand) monitors reuse volumes and inventory on a monthly basis.

As a result of these efforts, the amount of materials reused in FY2025 reached 697 tons, exceeding the target of 627 tons. (FY2024 result: 598 tons)

Processes Involving the Use of Recycled Materials

Waste Recycling Initiatives

NISSHINBO COMPREHENSIVE PRECISION MACHINING (GURGAON) PRIVATE LIMITED in India performs the machining of aluminum alloy automotive parts (valve blocks for electronic brake systems [EBS]).

During the manufacturing process, approximately 30% of raw materials are discharged as metal shavings, and some products are rejected during production. Since these materials can be recycled by melting and impurity removal, the company makes sure that they are properly processed by licensed recycling contractors. In 2025, the total volume recycled was approximately 417 tons. Additionally, the company entrusted the disposal of waste oil to licensed contractors, processing approximately 28 kiloliters that same year.

Nisshinbo Comprehensive Precision Machining (Gurgaon) will continue to promote resource recycling.

Reuse of Cleaning Solvents and Continued Certification as a 3R-Compliant Facility

The Tokushima Plant of Nisshinbo Chemical Inc. is engaged in environmental conservation activities that align with the 3R (Reduce, Reuse, Recycle) initiatives promoted by Tokushima Prefecture.

During the manufacturing process, the equipment must be cleaned with cleaning solutions (solvents) after each synthesis, which generates a large volume of waste cleaning solution. Previously, this waste solution was collected and sent to a recycling company for distillation and regeneration. By collecting the less contaminated waste cleaning solution and reusing it, the plant was able to reduce cleaning solution consumption by more than 40%.

As a result of these efforts, Nisshinbo Chemical was certified as a Tokushima Prefecture Certified 3R Model Business by Tokushima Prefecture in March 2017. This certification program recognizes businesses within Tokushima Prefecture that are actively promoting the 3Rs-reduction of waste generation and the reuse and recycling of recyclable resources-and have achieved significant results. Currently, 27 businesses in the prefecture were awarded this certification. Nisshinbo Chemical undergoes a renewal review every three years and is certified through March 2029.

Resource Recycling Initiatives

The Tokushima Plant of Nisshinbo Textile Inc. is a multi-company facility where Nisshinbo Holdings Inc. and Nisshinbo Chemical Inc. are located on the same site. Since obtaining ISO 14001 certification in 1999, the site has held monthly Environmental Management Committee meetings to continuously monitor the progress of its environmental initiatives. In particular, regarding zero waste emissions, the site has achieved a recycling rate of over 99%.

The plant was certified as a Tokushima Prefecture 3R (Reduce, Reuse, Recycle) Model Facility in 2019 and as a Tokushima City CO₂ Reduction Challenge Facility in 2025, thereby strengthening its efforts related to the 3R principles for waste management.

As part of its efforts to reduce waste generation and promote recycling, the plant converted waste into resources in 2021 by monetizing substandard urethane products, which resulted in an annual reduction of 206 tons, a 73% decrease. In 2025, the plant obtained GRS certification for its MOBILON^® yarn and MOBILON^® tape, which incorporate substandard urethane products as a portion of their raw materials.

The plant will continue to strive for further advancements in resource recycling and maintain a balance between reducing its environmental impact and ensuring efficient business operations.

Recycling of Non-Conforming Process Sheets

The Tokushima Plant of Nisshinbo Textile Inc. manufactures polyurethane products that combine the elasticity (flexibility) of rubber with the moldability of plastic. The plant is committed to the proper management of byproducts to ensure consistent quality and to maintain effective process control.

One of the company’s main products is MOBILON^® film, which involves uniformly coating a process paper with thin, film-like spun polyurethane; this process generates non-conforming process paper. Previously, this material was converted into solid fuel and disposed of as waste; however, the company began exploring recycling options with a view to reducing waste and making effective use of resources.

As a result, The plant confirmed that the paper can be recycled as waste paper by utilizing Daio Paper Corporation’s technology for recycling hard-to-process waste paper. This not only reduces waste but also helps alleviate the processing burden and promotes resource circulation, thereby contributing to a reduction in environmental impact.

The plant will continue to pursue continuous improvement and further contribute to the development of a resource-circulating society.

Obtaining GRS Certification

The Tokushima Plant of Nisshinbo Textile Inc. obtained GRS (Global Recycled Standard) certification for the manufacturing and sales processes of its MOBILON^® polyurethane product. The two products that have received GRS certification are listed in the table below.

Product Categories	Product Details	Purpose
Elastomer	MOBILON^® tape (Transparent)	Apparel materials, various industrial materials
Spandex	Hot-melt thread (KL Type)	Stockings and undergarments

GRS certification is an international certification for products containing at least 20% recycled content. To obtain this certification, companies must meet all requirements related to the chain of custody (CoC) during the production process, as well as meet its supply chain requirements, corporate social responsibility, environmental compliance obligations, and chemical substance regulations. Generally, polyurethane products use a large number of chemicals in their raw materials and manufacturing processes. Consequently, meeting the regulatory requirements of GRS is considered a very high hurdle, but Nisshinbo Textile successfully met these strict standards.

In addition, MOBILON^® yarn (ether-based and ester-based types) and MOBILON^® tape have obtained OK biobased (Class 1) certification. OK biobased certification is a four-tier rating system based on the percentage of bio-based carbon contained in a product. Class 1 applies to products containing at least 20% bio-based carbon.

Going forward, as part of its sustainable initiatives to protect the global environment, Nisshinbo Textile will continue to promote the pre-consumer recycling of non-conforming products generated during the manufacturing process (the reuse of unused items) and the use of biomass raw materials.

MOBILON hot-melt thread — MOBILON^® hot-melt thread

Reuse Through the Switch from Paper Bobbins to Plastic Bobbins

The strength of Nisshinbo Do Brasil Industria Textil LTDA. in Brazil lies in its role as part of a locally sourced supply chain for local consumption that handles everything from raw materials to finished products entirely within Brazil.

All of the yarn produced by the company is used within Brazil. Typically, the yarn is delivered to customers wound on paper bobbins, which were then discarded or recycled by users. By switching to plastic bobbins, Nisshinbo Do Brasil Industria Textil ensured that they were durable enough to be reused, and by asking customers to return them, the company implemented a reuse system. Reusing these tubes reduces the energy consumption required to manufacture new paper tubes, which in turn helps curb greenhouse gas emissions. Nisshinbo Do Brasil Industria Textil uses approximately 450,000 paper tubes per month and has successfully converted about 50,000 of these to plastic tubes for reuse. This initiative resulted in a reduction of 620,000 paper tubes in 2025.

Nisshinbo Do Brasil Industria Textil will continue to expand its reuse initiatives while gaining customer understanding.