Environmental Report 20200

Table of Contents
Environmental Policy......................................................... 2

Environmental Load from Business Activities
Fiscal 2019 Targets and Achievements............... 3............................. 4

Energy Saving Efforts......................................................... 5

Recycling Efforts......................................................... 5

Green Procurement Efforts........................................... 6

Environmental Education Efforts…………………............... 6

CSR Activities for Community........................................... 7

Voluntary Cleanup Program........................................... 7

Ikuyo Nakamichi Piano Recital........................................... 7

Illumination....................................................................... 8

Waku-waku Taiken Juku........................................... 9

Academic Support Activities........................................... 9

Future Efforts........................................................ 10

Environmental Accounting Results
Contacts.......................................... 11………………………………….................. 121◆ Environmental Policy

UNION TOOL CO.
Environmental Policy
Basic Philosophy
Contributing to clean global environment through corporate activities based on love for nature andhuman beings

Basic Policy
UNION TOOL’s Nagaoka Factory and Mitsuke Factory (hereafter called “our factories”) shallcontinue to conduct environmental conservation activities based on the following policies under theenvironmental management systems conforming to the IS0 14001 standard in order to maintain aharmonious balance among their corporate activities, regional societies and global environments.
1. Accurately grasp the impact from production activities, products and services of our factories on theenvironment and implement environmental conservation activities by setting objectives and targets
to the extent technically and economically possible.
2. Continuously improve the environmental management system and environmental performance by
periodically reviewing the environmental objectives and targets.
3. Comply with environment-related laws and regulations, ordinances, and other requirements fromstakeholders to which our factories have given their consent, and further establish voluntarystandards to the extent possible to prevent environmental pollution.
4. The following are important challenges to reduce the environmental impacts related to the
production 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. The environmental policy shall be implemented and maintained by the environmental management
system, and the corporate management shall make it known to all persons working at our factories.
6. The environmental policy shall be disclosed to the public.
February 25, 2014
Hiroshi Odaira, President & COO

2◆ Environmental Load from Business Activities
In order to effectively reduce environmental loads, our factories are carefully identifying and monitoring the environmental loads frombusiness activities ranging from input to output.
Especially for energy consumption, which is an important factor of input, we are working to reduce CO2 emissions through aggressive
energy saving activities, with particular emphasis placed on electricity, which accounts for 90% or more of our total CO2 emissions.

Input (used)

UNION TOOL

Output (discharged)

EnergyProcurement

Atmospheric release

Electric power: 27.66 million kWh

CO2: 15,056 tons

Kerosene: 5 kL
LPG: 1,145 m3
City gas: 287,000 m

3

Water resource
Tap water: 51,800 m3

Design anddevelopment

Manufacturing
and inspection

Specially controlled industrial
waste: 40.4 m3Industrial waste: 351.3 m3

Discharged water
Public sewerage: 46,600 m3
Discharge into rivers, etc.:
1,422,000 m3

Groundwater: 1,387,000 m3

Raw materials

WastesPacking andshipping

Raw materials: 395 tons

Products
Production volume: 335 tons

Users

 The above data were collected in a period from January to December 2019, with the data from both Nagaoka Factory and Mitsuke
Factory combined.
*1 CO2 emissions: The calculation is based on the Order for Enforcement of the Act on Rationalizing Energy Use*2 Industrial waste: The calculation is based on the Report on Industrial Waste Management Slip and Diffusion of Electrical
Manifest(Ministry of Environment Industrial Waste Notice No. 061227006)

3◆ Fiscal 2019 Targets and Achievements
For fiscal 2019, we also set targets based on the major themes of our environmental policy, which are energy saving, recycling, andresource saving, and conducted activities to achieve them.
As for energy saving, we set a goal of reducing energy consumption by 1% from the previous fiscal year, and both Nagaoka Factoryand Mitsuke Factory achieved it.
For recycling, we have been promoting the reuse of product cases. This activity is conducted with improvement in efficiency andprofitability always taken into account in response to changes in the surrounding environment.
For resource saving, we are striving to develop and improve new resource-saving tools and long-life tools through the development of
manufacturing equipment in order to get more customers to use our products.

Fiscal 2019 targets and achievements
Item

Promotion actions

Energy saving

5% reduction of the unit energy
consumption for production (*1) by
FY2019, compared to FY2014 level

FY2019 targets

Reduction by 1% compared to
FY2018 level of the energy
consumption throughimprovement

FY2019 achievements

Evaluations

Pages[Nagaoka]
4.5% reduction of energy
consumption from FY2018
level



5

[Mitsuke]
1.3% reduction of energy
consumption from FY2018
level



5

Investigation and managementof collected drill cases

90% achievement of collection
target

5

Promotion of reuse of end mill cases

Investigation and managementof collected end mill cases

136% achievement of collection
target-

Development of new
long-service-life tools (3 types)

Development of new
long-service-life tools (3 types)

-

Development of new tool
coating materials (2 types)

Development of new tool
coating materials (2 types)

-

Recycling

Promotion of reuse of drill cases

Resource saving

Extension of tool life

[Evaluation marks] : Exceeded the target, : Achieved the target, : Almost achieved the target, : Not achieved the target*1: “Unit energy consumption for production (kL per thousand pcs.)” = “Crude oil equivalent energy usage (kL)” / “Number of cutting tools produced (inthousand pcs.)”

4◆ Energy Saving Efforts
In fiscal 2019, each factory set a target of a “1% reduction of energy consumption
from FY2018 level” and conducted energy saving activities to achieve it. As a resultof such efforts, Nagaoka Factory reduced the energy consumption by 4.5%, andMitsuke Factory also achieved a 1.38% reduction of energy consumption from the
FY2018 levels, resulting in the achievements of targets in both factories.

In fiscal 2019, we are making efforts for further energy saving by continuing the
productivity improvement, which is a never-ending challenge as a manufacturer,
while developing highly efficient production equipment by utilizing ourengineering capability.
And we will strive to maintain efficient production activities from a broad perspective.

 LED lighting introduced in cafeteria
Changes in lighting power
consumption
Power consumption[in thousand kWh]

Since 2014, LED lighting systems have been introduced in our factories step bystep, and Nagaoka Factory is making efforts toward the completion in 2020 in aplanned manner, with the priority of floors taken into account. In 2019,
approximately 80% of our lighting systems have been replaced with LED in not
only manufacturing floors, but also offices, cafeterias, etc.
The energy consumption has been remarkably reduced since 2017, down about
20% from the peak.

Year◆ Recycling Efforts
We collect and recycle drill cases.
Originally, it was a part of our in-house recycling operations. However, as its importanceincreased in our environmental activities year by year, it needed to be considered as aprofessional activity. For that reason, we have outsourced the drill case collection andrecycling operations to a contractor since 2016.
Once the outsourcing started, the operations became different from those of the in-house
operations. In order for us to grasp the handling capacity of the recycling contractor, setproper goals according to the capacity, and monitor the progress of recycling, we
conducted “investigation and management of collected drill cases” in fiscal 2019.
 Drill cases
Although it was found that the annual achievement rate was 90% of the target value forthe year, we were able to grasp the current status of recycling operation, which can be used for future improvement.
As part of this activity, we hold a monthly meeting of the relevant departments to monitor the status and share information. This is toclarify issues that cannot be expressed by simple numbers and to improve them one by one through discussions.
We believe that the recycling leads to not only an effective use of resources, but also delivery of higher quality and lower priceproducts more quickly to our customers. Considering as one of important operations, we will continue to promote recycling by setting
targets.
Therefore, it would be highly appreciated if our customers and partners understand such efforts and cooperate in using the drill cases ascleanly as possible so that they can be reused over a longer life cycle.
TopicsWhen PCB drills are used, a part called “drill ring” is sometimes used with them. The
used drill rings are provided to a welfare institution, where they are reborn as a beautiful
ring art.

5

 Ring art◆ Green Procurement Efforts
In order to provide customers with products that are friendly to the global
environment with less environmental load, we have to actively use eco-friendly
materials and parts. To ensure the reliability of our products to customers, we not
only comply with the RoHS Directive in Europe and other chemical
substance-related regulations increasingly demanded throughout the world, butalso follow our Green Procurement Guidelines when purchasing materials andparts.
Information on hazardous substances in products is shared among ourEngineering Design Department, Material Purchase Department, and therelevant suppliers, which cooperate with each other to investigate and clarify thecontents of environmentally hazardous substances in all materials, parts,
packaging materials, etc. used for our cutting tools and linear motion bearings.
We will continue to strive to minimize the environmental burden throughout the product life cycle, ranging from material processing to
product use and the end of life.
Therefore, kind understanding and cooperation of our customers and partners would be much appreciated.

◆ Environmental Education Efforts
In our factories, environmental education is provided to employees mainly by the Eco-management Department to raise theirenvironmental awareness and provide the relevant knowledge.
We have four types of educational systems, which are used depending on the purpose. Starting with the “New employee education”
provided to new recruits right after their entering our company, we systematically raise the level of education through “General
education” conducted on various themes every month, “Basic education” concerning the basic environmental issues and regulations
related to business activities, and “Specialized education” covering more specialized environmental education.
In the process of “General education”, we conduct a survey of the participants and use the results as a reference for the selection ofthemes and the upgrading of instructors.
These environmental education programs lead to the development of human resources who maintain our corporate culture of “Lovenature, Love people, and Love work”.

Specialized
専門教育

Education on the laws, regulations, and technical knowledge for the
著しい環境影響の原因となる作業の作業者を対象とし、workers who are involved in the work causing significant

education

当該作業に関わる法令及び技術的な知識に関する教育。
environmental impact.

Love nature,

Basic
基礎教育

Education on the basic environmental issues, as well as laws and
主に事業活動に関係する環境問題、法令等の知識の基礎

Love people,

education

regulations concerning business activities, mainly for relevantについて、関係する作業に携わる社員に対して行う教育。
employees engaged in the relevant work.

General
一般教育

Education conducted by the Eco-management Department for
環境統括部署が毎月テーマを決めて、全ての部署の代表者

education

New employee
新入社員教育education

representatives of all divisions on a monthly basis. The safety- andに対して行う教育。テーマには安全衛生等の内容も含む。
health-related education is also included.

Education for new employees on the environmental philosophy
新入社員に対し、ユニオンツールの環境に対する考え方や

and activities of UNION TOOL, and how they should participate in

行っている活動、社員としての環境への関わり方の教育。
the environmental activities as employees.

6andLove work.

◆ CSR Activities for Community⚫ Voluntary Cleanup Program
At Nagaoka Factory and Mitsuke Factory, a voluntary cleanup program is conducted by employee friendship circles. Our employees
and their families pick up litter and cut grass to clean up the area around the factories to express the daily appreciation to thecommunity. In fiscal 2019 as well, a large number of people participated in the activity, maintaining the clean environment around thefactories. This activity also leads to an increase in individual awareness of environmental beautification.

 Participants at Nagaoka
Factory Cleanup activity around
Nagaoka Factory Participants at Mitsuke Factory⚫ Ikuyo Nakamichi Piano Recital
As part of our corporate philanthropy to support arts, we regularly hold a piano concert by inviting Ms. Ikuyo Nakamichi, a famous
pianist whom we officially sponsor.
Since 2002, this event has been held annually in Nagaoka City, Niigata Prefecture, where our main factory is located, and the 22nd
event took place in 2019. In 2019, a duo recital was held by Japan’s leading musicians: Ikuyo Nakamichi (pianist) and Tsuyoshi
Tsutsumi (cellist), showing off their rich tones. In March of the same year, we held a special piano concert by also inviting the NHK
Symphony Orchestra, which gave a solemn harmony to the fascinating piano sound.
We support the activities of NHK Symphony Orchestra,
Tokyo Philharmonic Orchestra and New Japan
Philharmonic Orchestra as a supporting member.

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

7◆ CSR Activities for Community⚫ Illumination
In time for Christmas, Nagaoka Factory is decorated with illuminations every year, for which employees do everything from design,
decoration, and lighting.
The illumination lighting ceremony, which was held for the 25th time in 2019, took place on December 2. Although the lighting
ceremony was held in our showroom due to poor weather conditions on the day of the event, it became a lively ceremony with theparticipation of many employees and children from Union Forest Nanyo NURSERY SCHOOL. Also, the children were delighted by
Santa Claus’ appearance. The first Christmas in the Reiwa era was a pleasant memory to them.
The illumination area was expanded in 2019 to feature the rows of trees with lights leading up to the lighting ceremony spot, in
addition to the familiar backdrop with large tree, tunnels, fireworks and mascot character “heart-rate sensor”. The large tree was reborn
as an even more attractive one, with the number of lighting colors increased to seven. Also, a “Reiwa object” (art work), which was
specially set up only for 2019 to commemorate the first year of Reiwa era, attracted many people as a good photo spot.
As in previous years, our showroom was opened to the public during the illumination period, with tea and sweets served, so thatpeople could enjoy the illumination from the warm room.
The illumination event, which began in 1995 with the aim of healing employees, marks the 25th anniversary in 2019, and we also
receive warm letters and messages from the general public. With the environmental friendliness taken into account, LEDs (about
40,000 pieces) are used for decoration.

 Full view of illumination

 Participants in the illumination lighting
ceremony Gifts from Santa Messages from customers

8◆ CSR Activities for Community⚫ Waku-waku Taiken Juku
Mitsuke Factory held the waku-waku taiken juku (exciting experience school) for elementary school children during summer vacationin cooperation with Mitsuke City. Mitsuke City encourages activities aiming to promote sound development of children and foster
mutual cooperation and consideration for others through interactions that go beyond the framework of schools, grades and classes. And
Mitsuke Factory understands the importance and supports such activities.
The children who visited our end mill manufacturing process were surprised at the size of the factory floor. Also, they enjoyed theexperience of filing our original coating film with a metal file (while struggling with the hardness of the coating film) to make their
original key chains.
Every year, our employees are also inspired by children’s curiosity at the waku-waku taiken juku. UNION TOOL is pleased to continue
to show its technology to children.

 Experience of comparing coating
hardness Participants in waku-waku taiken juku⚫

Academic Support Activities

Public interest incorporated foundation

UNION TOOL Scholarship Foundation
In 2002, our Scholarship Foundation was established in Niigata Prefecture, where our main factory (Nagaoka Factory) is located. The
purpose is to provide scholarships to financially-challenged, high-achieving students of science and engineering universities and otherinstitutions in Niigata Prefecture for supporting the development of talented local human resources who can contribute to the society,and we cooperate the operations as a company.
We also cooperate with Science and Technology Research Grant System in sponsoring research funds for advanced technology mainly
for research institutes and laboratories of local science and engineering graduate schools to contribute to industrial development in theprefecture.
*This activity is conducted through the UNION TOOL Scholarship Foundation.
UNION TOOL Scholarship Foundation website: http://www.uniontool.co.jp/scholarship/index.html

9◆ Future Efforts
As for targets on energy saving, a mid- to long-term program was finished in fiscal 2019, and we will continue to reduce energy
consumption toward the goal of reducing unit energy consumption for production by 5% over 5 years based on the FY2019 results.
For recycling, we will continue investigation and management of drill case collection, while taking appropriate measures to solve any
issues that become clear.
For resource saving, we will continue to improve the service life and efficiency of our tools to meet the customers’ quality
requirements, while at the same time actively developing environmentally friendly products.
Initiatives for fiscal 2020
Item

Promotion actions

FY2020 targets

Energy saving

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

1% reduction of annual energy consumption from
FY2019 level

Promotion of reuse of drill cases

Investigation and management of collected drill
cases

Recycling

Resource saving

Development of new long-service-life tools (3types)

Extension of tool life

Development of new tool coating techniques (2types)*1: “Unit energy consumption for production (kL per thousand pcs.)” = “Crude oil equivalent energy usage (kL)” / “Number of cutting
tools produced (in thousand pcs.)”

10◆ Environmental Accounting Results
FY2019 Environmental Accounting Results- Scope: Nagaoka Factory and Mitsuke Factory of UNION TOOL CO.
- Accounting period: Fiscal 2019 (January to December 2019) Environmental Protection Costs (Unit: Million yen)
 Individual costs in total investment

 Individual costs in total expense

Costs within business area

Total investment
9.1 million yen

Total expense
98.1 million yen

Pollution prevention cost
Global environment
conservation cost
Resource recycling cost
Upstream/downstream costs
Control activity cost

Costs within business area
Pollution prevention cost
Global environment
conservation cost
Resource recycling cost

Research & development cost
CSR cost
Environmental damage
recovery cost

*Since it is difficult to determine the period when the investment became effective, the investment amount is fully depreciated in theinvestment year. (The purchase cost of components used for introduction of in-house equipment is not included in the above
investment.) Economic Effects of Environmental Protection Measures (Unit: Million yen)
Item

AmountMajor initiatives and their effects

Revenue

100.1

Gain on sale of valuables through recycling

Cost saving

22.6

Reduction of drill case purchase cost through reuse of the cases

Total

122.7

11

UNION TOOL CO.
[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: May 2020
Next Issue: May 2021

*This report is based on the fiscal 2019 data (January to December 2019).
*For some data, the values of both Nagaoka Factory and Mitsuke Factory are combined together.
In order to provide the latest information, this report may contain some information obtained after December 2019.

12