0Contents

Environmental Policy

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

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FY2021 Targets and Achievements
Energy Saving

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Green Procurement

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Environmental Education

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Partial outsourcing of recycling work to welfare facilities ・・・

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

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Illumination

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7

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

7Future Initiatives ・・・・・・・・・・・・・・・・・・・・・・

８

FY2021 Environmental Accounting Report

９CSR Activities

・・・・・・・・・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 employees
working 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: 29,517mil. kWh

CO2 emissions: 14,935 t*1Kerosene: 6 kL
LPG: 934 m3
City gas: 413,000 m3

Design anddevelopment

Waste
Industrial waste: 301 t
Of which, speciallycontrolled industrial waste:
44 t *2

Water resources
Tap water: 505,000 m3
Groundwater: 1,299,000 m3

Raw materials
Raw materials: 515 t

Manufacturingand inspection

Packing andshippingDischarged water
Public sewerage: 355,000 m3
Discharge into rivers, etc.:
1,329,000 m3
ProductsProduction volume: 469 tUsers☆The above data was collected in the period from January to December 2021, combining data from both the Nagaoka
and 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◆ FY2021 Targets and Achievements
In FY2021, 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.
FY2021 Targets and Achievements
Item

Promotion actions

FY2021 targets

FY2021 achievements

Evaluation

Pagemarks

No.

○４◎

４○--

【Nagaoka】
Energy saving

5% reduction of unit energy

1% reduction of energy

1.7% reduction of energy

consumption for production

consumption compared toconsumption compared to FY2020(*1) by FY2024, compared toFY2019 through【Mitsuke】

FY2019improvements

5.5% reduction of energy
consumption compared to FY2020

Resourcesaving

Customer resource saving

Development of high-Development of new extended-life-

performance tools (3 types)

tools (3 types)[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 FY2021, Nagaoka and Mitsuke Factories conductedenergy saving activities with a target of reducing energy
consumption by 1% compared to FY2020. As a result of such
efforts, our Nagaoka Factory reduced energy consumption
equivalent to 1.7% of its FY2020 consumption level while ourMitsuke Factory reduced energy consumption equivalent to5.5% of its FY2020 consumption level with both factories
achieving their targets.
It is essential that we implement energy-saving measures▲Energy Reduction at Nagaoka Factory
across all of our factories. Each department within ourfactories has established targets and is reviewing ways to develop highly efficient facilities, ensure they are usedefficiently, and to make improvements to further streamline operations. Ever since the beginning of our activities, allemployees have been making efforts to conserve energy and these efforts have led to positive results.
In addition, we are continuing to implement measures for all ancillary facilities to our factories. Since FY2014, we havebeen gradually introducing LED lighting systems, and although recently, procuring lighting equipment has becomedifficult, we are working to systematically replace the remaining few existing lighting, such as those for locations used forspecial applications. In regard to air conditioning, we are going back to the basics, reexamining floors that do not need
air conditioning and times when air conditioning is not necessary and are shutting down all related facilities other thanthe main units.
We will continue to engage in efficient production activities from a broad perspective.
4◆ 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 ensure strict compliance with chemical substancerelated regulations increasingly demanded throughout the world,
and also follow our Green Procurement Guidelines whenpurchasing 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.

Generaleducation

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

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,
Love people,
andLove work.

◆ CSR Activities● Partial outsourcing of recycling work to welfare facilities
Since 2007 we have been outsourcing part of the work required to recycle drill cases to local welfare facilities and in
2014, this work was expanded to include the sorting of end mill caps. We currently specialize in the recycling of drill
cases, and outsource the entire operation to one of our partner companies. However, a small portion of this work is alsodone at welfare facilities to ensure an inclusive society for everyone.

▲Work performed at the welfare facility (Niji no Ie)● 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 officiallysponsored by Union Tool.
Since 2002, this event has been held annually in Nagaoka City, Niigata
Prefecture, the location of our main factory, and the 24th event took placein 2021.
We also support the activities of the NHK Symphony Orchestra, Tokyo
Philharmonic Orchestra and New Japan Philharmonic Orchestra as asupporting member.

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

6● Illumination
Over Christmas, the Nagaoka Factory is illuminated with Christmas lights for which our employees work on everythingfrom design to finish.
In 2021, the illumination lighting ceremony scheduled for December 1 was unfortunately postponed due to a rainstorm,
however the ceremony was held outside during a short break in the rain on December 2.
The illumination in 2021 was designed with the hope that the Nagaoka Fireworks, which had been cancelled for two
consecutive years, could be held next year. The ceremony included powerful artwork based on the motif of the Phoenix,
the Nagaoka Fireworks Phoenix, Sanjaku Dama, Chosei Bridge and Niagara, and an illumination based on the Nagaoka
Fireworks Foundation logo. The Nagaoka Jinku was incorporated as background music, and we believe that all visitors
got a feel of the Nagaoka Fireworks Festival. In addition to the usual tree-lined decorations and light tunnel, theinstallations also featured animals of the forest and sea, and a tree transformed into pastel colors, so that all visitors
could enjoy the night sky illuminated in sparkling light despite the cold.
This annual illumination event started in 1995 with the aim of healing employees and marked the 27th anniversary in2021, and we receive warm letters and messages from the public. The decoration uses LEDs (about 42,000) in
consideration of the environment.

▲ Lighting Ceremony in 2021

▲ A panoramic view of the illuminations in 2021

● Voluntary Clean-up Projects
Clean-up projects are organized by employee friendship circles at our Nagaoka and Mitsuke Factories. This program
involves our employees and their families coming together to remove garbage and weeds to make the environment
around our factories more visually appealing to express our gratitude to the local community. These projects are normallyheld twice a year, however were cancelled in FY2021 due to the COVID-19 pandemic. We hope to continue theseprojects from 2022 onward, while reviewing the best way to move forward.

▲ Participants from Nagaoka
Factory▲ Weeding around
Nagaoka Factory7▲ Participants from Mitsuke
Factory◆ Future Initiatives
In regard to energy conservation, one of the objectives and targets for FY2022, 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 on
FY2019.
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 FY2022
Item

Promotion actions

FY2022 targets

Energy saving

5% reduction of unit production CO2 emissions forproduction (*1) by FY2024, compared to FY2019

1% reduction of energy-derived CO2emissions(*2) compared to FY2021
through improvements.

Resource saving

Tools that help for resource saving by customers

Development of high-performance tools(3 types)

Promotion of initiatives with an awareness of plasticfree and decarbonization

10% reduction of new drill cases usedcompared to FY2021

Recycling
Resource Saving*1: CO2 emissions for production= Energy-derived CO2 emissions / Number of cutting tools produced (in thousand pcs.)”*2: Energy-derived CO2 emissions = Amount of CO2 emissions by the use of energy (electricity, gas, kerosene, etc.)purchased by the Company.

8◆ FY2021 Environmental Accounting Report- Scope: Nagaoka Factory and Mitsuke Factory of Union Tool Co.
- Accounting period: FY2021 (January to December 2021)
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

76.3

Gain on sale of valuables through recycling

Cost reduction

19.8

Reduction of drill case purchase cost by reusing cases

Total

96.1

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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*This report is based on the fiscal 2021 data (January to December 2021).
*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 2021.
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