Environmental Report 20230

Contents

Environmental Policy

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Environmental Impact of Business Activities
FY2022 Targets and Activity Results

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Energy Conservation Initiatives

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Green Procurement Initiatives

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Environmental education initiatives
Community Contributions
Clean Campaign

Piano Recital by Ikuyo Nakamichi
Illuminations

Outsourcing of recycling work to welfare facilities
Future Initiatives
Contacts

1◆ 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
self-established 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◆ Environmental Impact of Business Activities
We, Union Tool, strives to conduct activities for the effective mitigation of environmental impact by identifying andmonitoring the impacts of its business activities, from inputs to outputs.
Energy consumption is one input that is the focus of attention. We have placed a particular emphasis on electricity,which accounts for over 90% of our CO2 emissions, and we are working to reduce CO2 emissions through proactiveenergy-saving activities.

Input (used)

UNION TOOL

Output (discharged)

EnergyProcurement

Atmospheric release

Electricity: 30,058,000 kWh

CO2 emissions: 15,822 t *1

Kerosene: 6 kL
LPG: 894 m3
City gas: 429,500 m3

Design &Development

Industrial waste
Industrial waste: 230.3 t *2
Of which, specially controlledindustrial waste: 30.6 t

Water resources
Tap water: 51,300 m3

Production &Inspection

Water discharge
Public sewers: 37,300 m3

Groundwater: 1,667,800 m3

Rivers, etc.: 1,698,000 m3
Raw materials

Packaging &Shipment

Raw materials: 592 t

ProductsProduction volume: 449.4 t

Users☆ The figures above are for the period from January to December 2022 and are the totals for Nagaoka Factory andMitsuke Factory.
*1 CO2 emissions: Converted according to the order for Enforcement Regulation of the Act on Rationalizing Energy
Use*2 Industrial waste volume: Converted according to the Report on Industrial Waste Management Slip and Diffusion ofElectrical Manifest (Ministry of Environment Industrial Waste Notice No. 061227006)

3◆ FY2022 Targets and Activity Results
In FY2022, we once again set targets and conducted activities based on the key themes of our environmental policy,
namely energy saving, recycling, and resources saving.
Regarding energy saving, with CO2 emissions from energy sources as an indicator, we engaged in initiatives with atarget of 1% reduction from the previous year’s emissions. Both Nagaoka Factory and Mitsuke Factory were able toachieve this target.
Regarding recycling, we are promoting the reduction of the number of new product cases used. We will examine
methods of approaching this goal that considers efficiency and profitability in response to changing circumstances.
Regarding resources saving, through the development of manufacturing equipment, we are developing and improving
new resource efficiency and long-life tools, and we will continue to pursue this direction so that our products will berecognized by more customers.
FY2022 Targets and Activity Results
ItemDetails

FY2022 Targets

FY2022 Achievements

GradePage[Nagaoka]
2.3% reduction in CO2emissions compared to FY2021◎4[Mitsuke]
1.3% reduction in CO2emissions compared to FY2021○45% reduction of unit
production CO2 emissions(*1) by FY2024, comparedto FY20191% reduction of energyrelated CO2 emissions (*2)
compared to FY2021
through improvement

Resources
SavingPromote development ofenvironmentally friendly
products

Develop high-performancetools: 3 cases

Develop high-performance tools:
3 cases△-Resources
SavingRecycling

Promote initiatives
conscious of departure fromplastic and decarbonization

Reduce use of new cases
for PCB tools by 10% fromFY2021 levels

Establishment of management
methods△-Energy
Saving[Grade] ◎: Achieved target by significant margin; ○: Achieved target; △: Almost achieved target; ×: Target not achieved*1: unit production CO2 emissions = CO2 emissions from energy sources per 1,000 PCB drills produced*2: energy-related CO2 emissions = Volume of CO2 emissions from use of energy (electricity, gas, kerosene, etc.)
purchased by the company◆ Energy Conservation Initiatives
In FY2022, adopting CO2 emissions from energy
sources as a new indicator, both factories engaged inenergy saving activities with a target of reducing CO2emissions from energy sources by 1% compared withFY2021. Nagaoka Factory reduced its CO2 emissions
by the equivalent of 2.3% of FY2021 emissions throughreductions in power consumption and efficiency
improvements. Mitsuke Factory achieved a 1.3%
reduction, which means that both factories achieved thetarget for FY2022.
It is essential that we implement energy-saving
measures across all of our factories. Each department within our factories has established targets and is considering
ways to develop highly efficient facilities, ensure efficient use of facilities, and improve further streamline operations.
Ever since we began these activities, all employees have been making efforts to conserve energy, and it has led topositive results.
In addition, we are continuing to implement measures for ancillary facilities to our factories. We began introducing LED
lighting in FY2014, and although we have had difficulty procuring lighting equipment recently, we are working tosystematically replace the few existing lighting fixtures for those area used for special applications.
We will continue to engage in efficient production activities from a broad perspective.
4◆ Green Procurement Initiatives
Providing customers with products that are friendly to the global
environment and that have a lower environmental impact, wemust actively use environmentally friendly materials and parts.
To ensure the reliability of our products, we not only comply withthe laws and regulations related to chemicals, which areincreasingly demanded throughout the world, but we also follow
our own Green Procurement Guidelines when purchasingmaterials 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 to investigate and clarify the content of environmentallyhazardous substances in all materials, parts, and packaging materials, etc. used in the manufacture of our cutting tools
and linear motion bearings.
We will continue to strive for manufacturing that have less impact on the environment throughout the life cycle, fromproduction to use and disposal.
We would appreciate your kind understanding and cooperation.

◆ Environmental education initiatives
Our Environmental Management Department takes the lead in providing ongoing environmental education to allemployees working in our factories, with the objective of raising environmental awareness and providing the relevant
knowledge.
We have four levels of educational systems. The first level of education is our “new employee education” provided to
new employment, 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, which is in turn followed by “specialized education”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 ourcorporate culture of “Love nature, Love people, Love work.”

New employee
education

New employees are taught about Union Tool’s approach to
the environment, environmental activities, and howemployees relate to the environment.

Generaleducation

Representatives of all departments are taught about monthly
themes decided by Environmental Management Dept.
Themes include topics such as health and safety.

Basiceducation

Employees engaged in relevant tasks are taught primarily
about environmental issues related to business activities andbasic knowledge regarding laws and regulations, etc.

Specialized
education

Workers engaged in tasks that has a marked impact on theenvironment are taught legal and technical knowledge
related to such tasks.

5Love natureLove people
Love work◆ Community Contributions● Clean Campaign
The Clean Campaign is an activity hosted by the employee social clubs of our Nagaoka Factory and Mitsuke Factory,
in which employees and their families express their appreciation to the local community by picking up trash and cutting
grass for the purpose of beautifying the area around the factories. This activity has been conducted twice a year, but it
was canceled again in FY2022 due to prevention of COVID-19. In 2023, COVID-19 has been lowered from Category 2to Category 5, and we intend to continue our activities while taking proper infection control measures.

▲ Scene from a past Clean Campaign event● Piano Recital by Ikuyo Nakamichi
As part of our support for the promotion of cultural and artistic activities (Mecenat Project), we are the official sponsor
for piano recitals by pianist, Ikuyo Nakamichi, which is held every year under the banner of Union Tool Classic Program.
To mark the lead-up to 2027, in which the 40th anniversary of Ms. Nakamichi’s performing career coincides with the200th anniversary of Beethoven’s death, Ms. Nakamichi herself has planned a magnificent series of concerts called“The Road to 2027.” The 25th Union Tool Classic Program held in 2022, she performed a further evolution of thesound of Beethoven as her spring program in Tokyo, where our head office is located. In Nagaoka (Niigata Prefecture),
the home of our main Nagaoka Factory, she performed the rich, passionate music of Debussy and Rachmaninoff as
her autumn program.
We hope you will enjoy the philosophical, yet thrilling journey
performed by Ms. Nakamichi on “The Road to 2027.”
Ikuyo Nakamichi official website:
https://ikuyo-nakamichi.com/Nagaoka Lyric Hall website:
https://www.nagaoka-caf.or.jp/
Suntory Hall website:
https://www.suntory.co.jp/suntoryhall/

We also support the musical endeavors of the New Japan Philharmonic,
NHK Symphony Orchestra, Tokyo, and Tokyo Philharmonic Orchestra as
supporting members.
New Japan Philharmonic official website:
https://www.njp.or.jp/
NHK Symphony Orchestra, Tokyo official website:
https://www.nhkso.or.jp/
Tokyo Philharmonic Orchestra official website:
https://www.tpo.or.jp/
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● Illuminations
Illuminations at Nagaoka Factory have become an annual feature of winter in Nagaoka.
On December 1, 2022, we held a lighting ceremony in a heartwarming atmosphere with the children from Union Forest
Nanyo NURSERY SCHOOL.
In 2022, the illuminations featured a large, heart-shaped monument, and we added more of the delightful forest andsea creatures around the popular tunnel of lights from 2021. There were many illuminations symbolizing Nagaoka,including a valiant phoenix, and representations of Nagaoka Fireworks’ phoenix and sanjakutama (3-foot-diametershell) fireworks, the Chosei Bridge, and Niagara Falls, and visitors were sure to have been reminded of Nagaoka’s
famous fireworks festival. Visitors would also have enjoyed the usual decorations on the rows of trees, the Christmas
tree with changing pastel colors, and other beautiful lights sparkling in the cold night air.
Designed and installed every year by employees working at Nagaoka Factory around Christmas time, theseilluminations are becoming livelier and brighter every year.
This is started in 1995 with the objective of providing solace to our employees in the hope that their hearts would bewarmed by the sight of the illuminations in the dark and cold season of winter in Nagaoka. This illumination will be the28th in 2022, and we have received warm letters and messages not only from employees but also from people whocame to see the illumination. The lights used for the decorations are environmentally friendly LEDs (approximately42,000pcs).

▲ 2022 illuminations● 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 in2014, this work was expanded to include the sorting of end mill caps. We position the work of recycling drill cases as
specialized work and outsource the entire operation to one of our partner companies. However, this work is also done
at welfare facilities to ensure an inclusive society for everyone.

▲ Work being performed at the welfare facility, Niji no ie

7◆ Future Initiatives
Among our FY2023 goals and targets, in terms of energy saving, we will continue to work toward our medium- tolong-term target of a 5% reduction in unit production CO2 emissions over five years based on FY2019 levels.
Regarding resources saving issues, we will further promote the longer life, higher efficiency, and recyclability of ourtools and pursue the quality demanded by our customers, while at the same time actively promoting the developmentof environmentally friendly products.
FY2023 initiatives
ItemDetails

Energy Saving

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

Resources Saving

Resources Saving
Recycling

FY2023 Targets

1% reduction of energy-related CO2 emissions (*2)
compared to FY2022 through improvement

Promote development of environmentallyfriendly products

Develop high-performance tools: 3 cases

Promote initiatives conscious of departure fromplastic and decarbonization

Increase the percentage of use of recycled cases
or cases with low environmental impact for PCB
tools and reduce unit production CO2 emissions by
10% from FY2022 levels*1: unit production CO2 emissions = CO2 emissions from energy sources per 1,000 PCB drills produced*2: energy-related CO2 emissions = Volume of CO2 emissions from use of energy (electricity, gas, kerosene, etc.)
purchased by the company8[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 2022 data (January to December 2022).
*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 2022.
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