Environmental Management

Basic Concept

The Nisshinbo Group is aiming to increase corporate value as a unified corporate group by promoting diversity among its employees and 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. 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.

Nisshinbo Holdings Inc. reorganized its organizational structure in April 2025 to establish a Managing Officer system for each functional division with the aim of building and overseeing a structure that would lead to urgent change. Under the leadership of the Managing Officer in charge of the Corporate Strategy Department, the Environment Group now leads activities aimed at promoting environmental management throughout the Nisshinbo Group.

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 main environmental management promotion structure of the Group is as follows.

Sustainability Development Promotion Meeting and Environmental Management Promotion Staff Meeting

The Group discusses environmental management promotion policies, targets, and issues across the entire corporation at the Sustainability Development Promotion Meeting or the Environmental Management Promotion Staff Meeting, which are held at least once a year.

Environmental data management

The Environment Group of the Corporate Strategy Department collects actual data and manages the progress of environmental activities and environmental data at each company in the Nisshinbo Group, and the Environment Group officer reviews the status.

Operational management of environmental management systems

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.

Reporting and instructions to The Board of Management and board of directors

The president of the Nisshinbo Group, who is the chief executive officer of the Group, conducts environmental management reviews at the annual Board of Management* and receives progress reports from the Managing Officers in charge of the Corporate Strategy Department with regard to the group's initiatives. Based on these reports, the president issues instructions on the matters necessary for environmental management. Special items are reported to the Board of Directors as appropriate.

* The Board of Management: Executive conference consisting of Directors, Executive officers, etc.

Please refer to "Promotion System for Sustainability Activity" for details regarding the organizational structure for promoting sustainability.

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 Nisshinbo Group's Greenhouse Gas Emissions Reduction Targets

In light of the steady progress in reducing greenhouse gas emissions, the Group revised its medium-term environmental target for greenhouse gas emissions at the meeting of the Board of Directors in October 2024 and raised the target from a 50% reduction compared to 2014 to a 56% reduction.

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).

* 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.

In October 2024, the Group revised its KPIs for the two items of reduction of greenhouse gas emissions and reduction of water consumption per sales because Nisshinbo expects to achieve its 2030 targets during FY 2024.

* Within all products, the Group identifies "products that contribute to a sustainable society."

The Medium-term Environmental Targets

The Three-Year Environmental Targets

The Nisshinbo Group is aware of the urgent need for corporate action to address environmental issues, such as building a decarbonized society, a nature-friendly society, and a recycling-oriented society. Nisshinbo set the eight items listed in the table below as its three-year environmental goals and is working to achieve them. Four items of these three-year environmental goals have been set as milestones for the medium-term goals.

The three-year environmental targets are included in the sustainability promotion plan.

FY2024 Results and Assessment of the 5th Three-Year Environmental Targets

The Nisshinbo Group set the following eight targets as its fifth three-year action plan for the environment with a target achievement date of FY 2024 and has been working to achieve them.

The 5th Three-Year Environmental Targets (FY2022-2024)

Key Action Items The 5th Three-Year
Environmental Targets
Result as of FY2024
Improvement of the sales percentage by the products*1 that contribute to the development of the sustainable society 60% or more of total sales 47% of total sales
Reduction of greenhouse gas*2 emissions Reduce by 35% or more compared to FY2014 Reduced by 55% compared to FY2014
Reinforcement of the maintenance of biodiversity Activities in Japan and overseas at more than 5 new sites 9 new cases*3 currently active
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*4(LCA) 60% or more of total sales 51% of total sales
Reduction of the energy consumption per unit of sales Reduce by 15% or more compared to FY2014 Reduced by 39% compared to FY2014
Reduction of the volume of PRTR substances*5 emissions per unit of sales Reduce by 30% or more compared to FY2014 Reduced by 41% compared to FY2014
Improvement of recycling rate Increase the recycling rate to 90% or more 92%

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.

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.

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.

*1 Products that contribute to a sustainable society: Company standards

*2 Greenhouse gas emissions: Scope 1 + Scope 2

*3 Activities to begin in FY2024: Six activities in Japan and overseas

*4 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.

*5 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). The Company has confirmed that it has achieved its targets for six of the eight initiatives.

Sales of the products that contribute to the development of a sustainable society accounted for 47% of the Group's FY2024 sales, falling short of the target. This was due to the inclusion of the KOKUSAI DENKI Electric Group, which began operations in FY2024, within the scope of the initiative. The breakdown of "products contributing to a sustainable society" is as follows: friction materials compliant with copper and antimony regulations* in the Automobile Brakes business account for 10%, semiconductor products (contributing to energy saving and smaller chip size in electrical appliances) in the Micro Devices business account for 9%, disaster prevention and mitigation-related products in the Wireless and Communications business account for 6%, non-iron shirts in the Textiles business account for 2%, and others account for 20%.

* 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.

Greenhouse gas emissions in FY2024 were 55% lower than in FY2014, which achieved the target. The main reasons for the reduction were a decrease in greenhouse gas emissions following the transfer of the TMD Group, which was a consolidated subsidiary, and the installation of additional PFC (perfluorocarbon) and other gas abatement equipment and reduced production in the Micro Devices business.

Please refer to "Promoting Climate Change Countermeasures" for details regarding of the "greenhouse gas emissions."

In strengthening the biodiversity conservation activities, Nisshinbo launched nine new biodiversity conservation activities in Japan and overseas, including activities to protect and nurture endangered species, activities to eradicate alien species with the aim of protecting rare organisms, and activities to conserve natural habitats, thereby achieving the target.

Please refer to "Activities for Environmental and Biodiversity Conservation" for details regarding of the "biodiversity conservation activities."

Water consumption per sales in FY2024 was reduced by 78% compared to FY2014, which achieved the target. The main reasons for this reduction were the transfer of the TMD Group, which was a consolidated subsidiary, and production cuts in the Micro Devices and Textiles businesses.

Please refer to "Water Resource Conservation" for details regarding of the "water consumption."

The promotion of life cycle assessment (LCA) accounted for 51% of the Group's sales in FY2024, but the target was not achieved. This was due to the inclusion of the KOKUSAI DENKI Electric Group, which began operations in FY2024, within the scope of the initiative.

Please refer to "Promoting Life Cycle Assessment(LCA)" for details regarding of the "Promotion of Life Cycle Assessment (LCA)."

The target for energy used in FY2024 was achieved with a 39% reduction in energy used per sales compared to FY2014. In addition to the successful implementation of energy conservation measures in all businesses, the main reasons for this reduction were the transfer of TMD Group, a consolidated subsidiary with high energy use, and reduced production in the Micro Devices business.

Please refer to "Energy Conservation" for details regarding of the "energy consumption."

In FY2024, emissions of PRTR substances per sales were reduced by 41% compared to FY2014, which achieved the target. The main reason was a decrease in emissions of PRTR substances from the transfer of the TMD Group, which was a consolidated subsidiary.

Please refer to "Chemical Substance Management" for details regarding of the "PRTR substance emissions."

In terms of the target for improvement of the recycling rate, the Group as a whole achieved 92% in FY2024, which met the three-year environmental target. This was mainly due to the transfer of the TMD Group, a consolidated subsidiary, which had a low recycling rate.

Please refer to "Resource Conservation" for details regarding of the "Waste emissions and recycling rate."

The 6th Three-Year Environmental Targets

At the end of FY2024, the fifth three-year environmental targets will be completed, and Nisshinbo set the sixth three-year environmental targets with FY2027 as the target year. These targets serve as milestones for achieving the medium-term environmental targets, which then build on the initiatives of the fifth three-year environmental targets and raise the KPI values.

Assessment of the 6th Three-Year Environmental Targets (to be achieved by FY2027)

Key Action Items The 6th Three-Year
Environmental Targets
Improvement of the sales percentage by the products*1 that contribute to the development of the sustainable society 65% or more of total sales
Reduction of greenhouse gas*2 emissions Reduce by 53% or more compared to FY2014
Reinforcement of the maintenance of biodiversity 5 or more new activities contributing to the achievement of the Kunming-Montreal Global Biodiversity Framework*3 targets
Reduction of water usage per unit of sales Reduce by 77% or more compared to FY2014
Promote Life Cycle Assessment*4(LCA) 70% or more of total sales
Reduction of the energy consumption per unit of sales Reduce by 30% or more compared to FY2014
Reduction of the volume of PRTR substances*5 emissions per unit of sales Reduce by 40% or more compared to FY2014
Improvement of recycling rate Increase the recycling rate to 93% or more

*1 Products that contribute to a sustainable society: Company standards

*2 Greenhouse gas emissions: Scope 1 + Scope 2

*3 Kunming-Montreal Global Biodiversity Framework: An international framework that aims to achieve a world in harmony with nature by 2050 and to halt and reverse biodiversity loss by 2030.

*4 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.

*5 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 Status of Environmental Management System

As of the end of December 2024, 43 group companies certified in accordance with ISO 14001.

Organizations with ISO 14001 Certification (As of December 31, 2024)

In Japan (26 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.
  • KOKUSAI DENKI Electric Inc.
  • HYS Engineering Service Inc.
  • GOYO ELECTRONICS CO., LTD.
  • 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)

Awareness activities with "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.

Environmental news
Management Message
Sustainability Management
Contribution to the Environment and Energy Sector
Creating a Safe and Secure Society
Global Compliance
Sustainability Data