0Contents

Environmental Policy

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Business-Related Environmental Load・・・・・・・・・

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FY2020 Targets and Achievements
Energy Saving

Green Procurement

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Environmental Education
CSR Activities

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Voluntary Clean-up Project・・・・・・・・・・・・・

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Ikuyo Nakamichi Piano Recital ・・・・・・・・・・・・・・

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Illumination ・・・・・・・・・・・・・・・・・・・・・・・

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Future Initiatives ・・・・・・・・・・・・・・・・・・・・・・

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FY2020 Environmental Accounting Report

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Contacts ・・・・・・・・・・・・・・・・・・・・・・・・・ １０1◆ Environmental Policy

UNION TOOL CO.
Environmental Policy
BasicPhilosophy
To contribute to a clean global environment through our corporate activities based on love fornature and human life.

Basic Policy
The Nagaoka and Mitsuke Factories (hereafter, “our factories”) shall conduct environmental
conservation activities based on an environmental management system compliant with ISO 14001
standards and maintain harmony among our corporate activities, local communities, and theglobal environment under the following policies.

1. Continuously implement environmental conservation activities based on an accurate
understanding of the impact of the production activities, products and services of our factories
on the environment, and by setting technically and economically objectives and targets to theextent as possible.
2. Continuously improve environmental management systems and environmental performancebased on the periodic review of environmental objectives and goals.
3. Make efforts to prevent environmental pollution, not only in compliance with environmental
laws and regulations, ordinances, and other requirements from interested parties, but also selfestablished standards set to the extent possible.
4. Tackle the following important items to minimize the environmental impact of activities,
products and services of our factories.
1) Promotion of energy saving
2) Promotion of green procurement
3) Promotion of recycling
4) Promotion of resource saving
5. Implement and maintain our environment policy based on environmental management
systems and ensure that this policy is shared by corporate management with all employeesworking at our factories.
6. Our environmental policy is open to the public.

February 25, 2014
Hiroshi Odaira, President & COO

2◆ Business-Related Environmental LoadWe are striving to effectively reduce the environmental impact of our business activities by understanding and monitoring
the environmental impact across all business inputs and outputs.
Particularly in the area of energy consumption, an important factor of input, we are focusing on electric power which
accounts for more than 90% of CO2 emissions and are working to reduce CO2 emissions by actively engaging in energysaving activities.

Input (used)

UNION TOOL

Output (discharged)

EnergyProcurement

Atmospheric release

Electric power: 28.409 mil. kWh

CO2 emissions: 15,470 t*1

Kerosene: 4,000 ℓ
LPG: 1,209 m3
City gas: 341,000 m3

Water resources
Tap water: 496,000 m3
Groundwater: 1,147,000 m3

Raw materials
Raw materials: 468 t

Design anddevelopment

Manufacturing
and inspection

Packing andshipping

Waste
Industrial waste: 274 t
Of which, speciallycontrolled industrial waste:
36 t *2
Discharged water
Public sewerage: 371,000 m3
Discharge into rivers, etc.:
1,174,000 m3
Products
Production volume: 422 t

Users☆The above data was collected in the period from January to December 2020, combining data from both the Nagaokaand Mitsuke Factories.
*1 CO2 emissions: Calculation based on the Order for Enforcement of the Act on Rationalizing Energy Use*2 Industrial waste: Calculation based on the Report on Industrial Waste Management Slip and Diffusion ofElectrical Manifest (Ministry of Environment Industrial Waste Notice No. 061227006)

3◆ FY2020 Targets and Achievements
In FY2020, we established targets and conducted activities based on energy conservation, recycling, and resource
conservation, all of which are major items of our environmental policy.
In the area of energy saving, we established targets to reduce energy consumption by 1% compared to the previous
fiscal year and this was achieved by both our factories.
In order to recycling, we have been promoting the reuse of product cases. This activity is conducted to achieve improved
efficiency and profitability, taking into consideration changes in the surrounding environment.
As for resource saving, we are continuously striving to develop and improve new resource-saving-tools and extendedlife-tools through the development of manufacturing equipment that will appeal more to our customers.
FY2020 Targets and Achievements
Item

Promotion actions

FY2020 targets

FY2020 achievements

評
価頁

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【Mitsuke】
2.0% reduction of energy
consumption compared to FY2019◎

４

1% reduction of energy
consumption compared toFY2019 throughimprovements

Promotion of reuse of drill
cases

Investigation andmanagement of collected drill
cases

Completion of construction ofcontinuous collection and recycling
system, maintenance, and monitoring〇-Development of newextended-life-tools (3 types)

Development of new extended-lifetools (3 types)○-

Development of new tool
coating materials (2 types)

Development of new tool coatingmaterials (2 types)○-Resourcesaving

5% reduction of unit energy
consumption for production(*1) by FY2024, comparedto FY2019

Recycling◎Energy saving【Nagaoka】
3.2% reduction of energy
consumption compared to FY2019

Extension of tool life

[Evaluation marks] : Exceeded the target, : Achieved the target, : Almost achieved the target, : Target not achieved*1: “Unit energy consumption for production (kL per thousand pcs.)” = “Crude oil equivalent energy usage (kL)” / “Number of cutting
tools produced (thousand pcs.)”◆ Energy Saving
In FY2020, Nagaoka and Mitsuke Factories conducted energy saving activities witha target of reducing energy consumption by 1% compared to FY2019. As a resultof such efforts, both factories achieved their targets; they reduced energy
consumption by 3.28% and 2.06% respectively.
Since FY2014, we have been gradually introducing LED lighting systems into ourfactories, and in FY2020, all lights within Nagaoka Factory were replaced with LED
lighting except for locations used for special applications. Mitsuke Factory is also
▲ Mercury lamps changed to LED lighting
planning to replace all lights by FY2022.
As a measure to reduce power consumed by pneumatic equipment, we have also
introduced a mechanism to control the number of compressors used according to
the usage of air.
Improving productivity is always a challenge for manufacturers and we are also
focusing on the development of highly efficient equipment in our technicaldepartments, leading to energy conservation. We will continue to engage in efficient
production activities from a broad perspective.
4▲ Compressors are controlled bycommunicating with each other◆ Green Procurement
In order to provide customers with products that are friendly to theglobal environment with less environmental load, we must actively
use eco-friendly materials and parts. To ensure the reliability of ourproducts, we not only comply with the RoHS Directive in Europeand other chemical substance-related regulations increasingly
demanded throughout the world, but also follow our Green
Procurement Guidelines when purchasing materials and parts.
Information on the hazardous substances in products is shared
among our Engineering Department, Material Purchase
Department, and the relevant suppliers, who all work together toinvestigate and clarify the content of environmentally hazardous substances contained in all materials, parts, andpackaging materials, etc. used in the manufacture of our cutting tools and linear motion bearings.
We will continue to strive to minimize environmental burden throughout the product life cycle, ranging from material
processing to product use and the end of life.
We will appreciate your kind understanding and cooperation in our green procurement activities.

◆ Environmental Education
Our Environmental Management Department provides ongoing environmental education to all employees working in
our factories in order to raise environmental awareness and provide the relevant knowledge.
We employ four purpose-specific levels of education. The first level of education is our “new employee education”
provided to new recruits upon employment, then followed by “general education” conducted on various themes every
month to systematically raise the level of education of our employees. The third level of education is “basic education”,
which covers basic environmental issues and regulations related to business activities, after that followed by “specializededucation” which covers more specialized environmental education.
To improve the quality of our education, participants undergoing “general education” are asked to complete a survey
and the results are used as a reference for the selection of future themes and to improve the skill of our instructors.
These environmental education programs lead to the development of human resources who can maintain our corporate
culture of “Love nature, Love people, and Love work”.

Specialized
education

Education for employees involved in work that has significant
environmental impact, on laws, regulations, and technicalknowledge.

Basic
education

Education for employees engaged in the relevant work on
environmental issues, laws, and regulations concerning businessactivities.

Love people,

Generaleducation

Monthly education for representatives of all divisions on selected
themes (including health and safety) conducted by theEnvironmental Management Department.

Love work.

New employee
education

Education for new employees on the environmental philosophy andactivities of Union Tool, and how they can participate inenvironmental activities as employees.

5Love nature,and◆ CSR Activities● Voluntary Clean-up Projects
A voluntary clean-up projects is conducted twice a year at our Nagaoka and Mitsuke Factories by employee friendshipcircles. This program involves our employees and their families participating in a range of activities, including picking up
garbage and weeding to make the environment around our factories more visually appealing to express our appreciation
to the local community. Unfortunately, these activities were cancelled in FY2020 due to COVID-19. However, we areconsidering ways to continue this program after FY2021 as it helps to increase individual awareness of environmental
beautification.

▲ Participants from Nagaoka
Factory▲ Weeding around
Nagaoka Factory● Ikuyo Nakamichi Piano Recital
As a part of our efforts to support cultural and artistic activities under theMECENAT Program, each year we host the Union Tool Classic Program, a piano
recital of Ms. Ikuyo Nakamichi, a famous pianist officially sponsored by UnionTool.
Since 2002, this event has been held annually in Nagaoka City, Niigata
Prefecture, the location of our main factory, and the 23rd event took place in 2020with Ms. Ikuyo Nakamichi performing a program of Debussy and showcased herrich tones.
We also support the activities of the NHK Symphony Orchestra, Tokyo
Philharmonic Orchestra and New Japan Philharmonic Orchestra as a supportingmember.

Ikuyo Nakamichi official website :http://www.ikuyo-nakamichi.com/
Nagaoka Lyric Hall website :http://www.nagaoka-caf.or.jp/

6▲ Participants from Mitsuke
Factory● Illumination
Over Christmas, the Nagaoka Factory is illuminated with Christmas lights for which our employees work on everythingfrom design to finish.
The illumination lighting ceremony, held for the 26th time in 2020, took place on December 1. We were blessed withthe fine weather, and were able to hold a wonderful lighting ceremony outdoors in a gentle atmosphere.
In 2020, the design was based on blue to express gratitude to healthcare workers fighting on the frontline against
COVID-19, and included a large Christmas tree, tunnel, and the mascot of our heart rate sensor which are featured in
the display every year.
In addition, to create a similar Nagaoka Festival Grand Fireworks, which was unfortunately canceled due to COVID19, we added more firework-shaped illuminations than usual, and Nagaoka Jinku was played as BGM.
We believe that all the visitors enjoyed the fusion of music and light.
This Christmas illumination event started in 1995 with the aim bringing a sense of comfort to our employees andmarked the 26th anniversary in 2020, and we received many warm letters and messages from the public. The
decoration was created using approximately 40,000 LEDs in consideration of the environment.

▲ A panoramic view of the illuminations in 20207◆ Future Initiatives
In regard to energy conservation, one of the objectives and targets for FY2021, we will continue to work on reducing
unit production energy consumption by 5% over the next five years as a medium-term to long-term goal based onFY2019.
In terms of resource saving, we will further promote the development of products with extended-life-tools and highefficiency-tools, pursue quality requirements from customers, while at the same time actively promote the developmentof environmentally friendly products.
Initiatives for FY2020
ItemPromotion actions

FY2021 targets

Energy saving

5% reduction of unit production energy consumption
for production (*1) by FY2024, compared to FY2019

1% reduction of annual energy
consumption compared to FY2020

Resource saving

Tools that help for resource saving by customers

Development of high-performance tools(3 types)*1: Unit energy consumption for production (kL per thousand pcs.)= Crude oil equivalent energy usage (kL) / Number of cutting tools produced (in thousand pcs.)”

8◆ FY2020 Environmental Accounting Report- Scope: Nagaoka Factory and Mitsuke Factory of Union Tool Co.
- Accounting period: FY2020 (January to December 2020)
Environmental Protection Costs (Unit: mil. JPY) Individual costs in total investments

 Individual costs in total expenses*Due to the difficulty in determining the period in which investments become effective, the investment amount is fully
depreciated over the investment year. (The purchase cost of components used for the introduction of in-houseequipment is not included in the above investment.)

Economic Effects of Environmental Protection Measures (Unit: mil. JPY)
Item

AmountMajor initiatives and their effects

Revenue

75.6

Gain on sale of valuables through recycling

Cost reduction

10.2

Reduction of drill case purchase cost by reusing cases

Total

85.8

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[Headquarters]
6-17-1 Minami-ohi, Shinagawa-ku, Tokyo 140-0013, JAPANTEL: 03 (5493) 1001
FAX: 03 (5493) 1002
For any questions about the Environmental Report, contact the following:[Nagaoka Factory]
2706-6 Togawa, Settaya-machi, Nagaoka-shi, Niigata Prefecture 940-1104, JAPANTEL: 0258 (22) 2620
FAX: 0258 (22) 0045
General Affairs Dept., Nagaoka: Attn. Yoneyama
E-mail: yoneyamao@uniontool.co.jp
Issue Date: June 2021
Next Issue: June 2022

*This report is based on the fiscal 2020 data (January to December 2020).
*For some data, the values of both Nagaoka Factory and Mitsuke Factory are combined.
In order to provide the latest information, this report may contain some information obtained after December 2020.
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