CSR REPORT2017
NOK CORP ORATIONENGLANDKOREAGERMANY

JAPAN
CHINA

NOK Group's
Global Operations

TAIWANINDIA
THAILAND

EuropeVIETNAMMALAYSIASINGAPORE
INDONESIAUNITED STATES OF
AMERICA

Asia

North
America
Table of Contents
NOK Charter of Corporate Behavior

2

Message from the President

3

Concept of CSR and Our Organization

5

O

Strategy & Management
Management Foundation

F

6

NOK Group Business Overview

8

NOK Group's Products Support Daily Lives9

NOK Group's Technology

10

O

FUKUSHIMANOK Group

KANAGAWA Head OfficeTOKYO
SHIZUOKA

Environment
Environmental Management

11

E

Input & Output of Our Business Activities
Results and Targets

14

E

Global Warming Countermeasures

15

E

Control and Reduction of Environmental Hazardous Substances
Commitment to Recycling-Oriented Society
Reports from NOK Group Sites

17

E

Bases of NOK CORPORATION

18

E

Environmentally Conscious in All Business Activities
Procurement Policy

KUMAMOTO

13

E

IBARAKITOTTORI

Bases of NIPPON MEKTRON, LTD.

19

E

Bases of SYNZTEC CO., LTD.

21

E

Bases of NOK KLUEBER CO., LTD.

23

E

Bases of UNIMATEC CO., LTD.

Society
Custmer First

24

C

Social / Local Area Activities

Communication with Shareholders, Investors and External Organizations
Relations with Employees

H

26

I

L

Third-Party Opinion

C

30
31
34

Editorial Policy

The symbols next to chapter titles indicate the chapter's relevance to the seven core
subjects of social responsibility as defined by ISO26000.
O

Organizational GovernanceH

Human Rights

L

Labor Practices

E

The Environment

F

Fair Operating Practices

C

Consumer Issues

I

Community Involvement and Development

This report has been edited in reference to ISO 26000:2010Guidance on Social Responsibility.
●Period Covered
Most of the activities described in this report were carried out in FY2016(April 1, 2016, to March 31, 2017), but some took place in FY2017.
●Organizations Covered
All divisions of NOK Corporation and other NOK group companies inJapan and abroad.
●Date of Issue for Japanese Version: July 2017
●Date of Issue for English Version: August 2017

1

NOK Charter of Corporate Behavior

Management Policies

1. The Management has to run the Company based on feelingsof love and trust in its employees.

1. We are committed to be a strong and unique parts supplier while
focusing its managerial resources on core business areas.

2. The Management has to run the Company while uniting toensure full ventilation without forming any cliques.

2. We are committed to be a profitable and robust company while
fulfilling company-wide cost reduction programs ranging fromfront-line sales to manufacturing floor.

3. The Management has to run the Company while making
absolutely incredible efforts against all odds and risks.

3. We are committed to continuously improving our quality
while producing and selling our products that are proven to betechnologically unique and socially on a global scale.

Principles of Corporate Behavior
1. Provision of Socially Useful Products

2. Fair and Appropriate Trade

We will develop and provide socially useful and safe products, thereby gaining satisfaction and deeper
trust both from end users and customers.

We will engage in fair, transparent, and free competition and ensure that transactions are appropriate
when selling products and purchasing materials.
Also, maintain a sound and proper relationship with political bodies and government agencies.

We will disclose accurate information about the Company timely and appropriately.
3. Proper Disclosure and Management
Also, protect and properly manage personal and customer data and other types of information as well asof Information
intellectual property rights.
4. Severance of all relations with
Antisocial Forces and Groups

5. Commitment to Environmental
Conservation

We will resolutely confront any antisocial forces and groups that threaten the order and safety of civilsociety, and sever all relations with such groups.
We will proactively initiate environmental conservation activities while taking into account the factthat commitment to solving environmental issues is a prerequisite for a company to engage in businessactivities as a going concern.

6. Promotion of Social Contribution
As a good corporate citizen, we will actively contribute to community activities and other similar activities.
Activities

As a global corporation, we will comply with laws and regulations of the countries and regions where ourbusiness operations are based, and respect human rights and other international norms of behavior (e.g.
7. Cooperation with the International
prohibition of child labor and forced labor). Also, conduct business by taking into consideration the local
Community
culture and customs as well as the interests of stakeholders, and contribute toward the development of thelocal economy and society.
8. Respect for Human Rights andProvision of a Safe and Comfortable
Working Environment

9. Responsibilities of Directors

10. Response to Problems

We will promote mutual respect diversity, character and personality among employees, draw a line
between public and private matters, maintain order in the workplace, and provide a clean, safe andcomfortable working environment.

The Directors recognize that it is their role to realize the spirit of this Charter of Corporate Behavior,
and will take the lead in an exemplary manner to implement the Charter within entire the NOK Group,
while encouraging our business counterparts to follow the same example. In addition, the Directors
will constantly listen to opinions from both within and outside the company to effectively improve thecorporate system and ensure compliance with business ethics.

In the event of noncompliance with this Charter, the Directors will commit themselves to solving the
problem, while identifying the cause, thus taking measures to prevent the recurrence of similar problems.
Moreover, they will publicly disclose relevant information promptly and appropriately, fulfill theiraccountability requirements, indicate those who are in authority and those who are responsible, andseverely punish those involved, including them.

2

3 Society

4. The Management has to run the Company while pursuing
dreams with management plan.

2 Environment

Management Principles

1 Strategy & Management

We, NOK Corporation, are committed not only to contribute toward the economic development of society by creating added value
through fair competition but also to being an entity that contributes to society at large, according to the Management Principles
under the NOK spirit, by developing the Management Policies in such a way that all its stakeholders are proud of us and chase their
dream with us. We will behave according to the Principles of Corporate Behavior of Ten Principles both domestic and overseas so as
to respect human rights, comply with related laws, regulations, and international rules as well as the spirit behind those, discharge
our social responsibility with a strong sense of ethical values.

Message from the President

Reinforcing business structure forsustainable growth and becoming a highly
profitable corporate group in which all
stakeholders can take pride

Chairman of the Board and President of
NOK CORPORATIONOur New Three-year Plan for Reinforcing
Business Structure for Sustainable Growthfrom the 2011 Great East Japan Earthquake and the 2016 Kumamoto

As of recently, global politics and the global economy are becoming

respects human dignity. Respect for human dignity is one of the

Earthquake.

Another priority for us is implementing management spirit that

increasingly uncertain. The acquisition of knowledge andManagement Principles of the NOK group. We aim to build adevelopment of new technologies, as well as economic globalization,

workplace where all employees can feel that they are growing

have benefited people but worsened some social problems, suchthrough their work, and that what they are doing is worthwhile andas poverty, inequality of educational opportunities, religious

helping to enhance their organization or company’s performance

conflicts and tensions related to immigration issues. Recognizing

directly or indirectly. Our policies for organizational operation,and preparing against such risks and uncertainties, the NOK

personnel systems and employee education will be reviewed andgroup strives to produce low-cost original products—backed by

improved from these perspectives.

technology—which are useful to society, and sell them at reasonable
prices all over the world.

Continuing Environmental Managementplan) in FY2017. Its underlying policy is Reinforcing Business

Structure for Sustainable Growth . In pursuit of becoming a highly

The NOK group is committed to environmental conservation

NOK places top priority on steadily continuing business. As theactivities because we consume energy as a developer, manufacturer
devices. Safety, environment and quality are key factors that we

The NOK group launched a new Three-year Plan (mid-term businessand seller of components used in automobiles, machinery, electronic

profitable corporate group in which all stakeholders can take pride,must focus on in order to remain a preferred parts supplier toautomotive industry moves toward electrification and advanced

customers. This has become particularly true in the past several

driver assistance systems (ADAS), and as new technology trends

years and is now a precondition for sustainable business activities.

emerge, including advances in artificial intelligence (AI), we seek to

Taking action on environmental issues is one of our top priorities,

optimize our customer base by expanding sales of existing products

and we implement environmental management with this resolveand by boosting development and sales of new products.

in mind because we are under scrutiny by the government andUnder the new plan, we will also emphasize better, more reliableconsumers regarding environmental issues and must respondquality by making comprehensive efforts to prevent the occurrence

to external requirements, including those from the customers.

and outflow of defective products. We will rebuild our business
continuity management (BCM) system based on the lessons learned

We intend to make sustained contributions to building3

environmentally hazardous substances, reducing waste anddeveloping environmentally friendly products at the global level.

We believe that communicating with local communities as a good

The Paris Agreement was adopted by COP21, which is officially

corporate citizen is essential for the continuation of business

known as the 21st Conference of the Parties to the United Nations

activities. Among various social contributions we have made to date

Framework Convention on Climate Change, and entered into force

are implementing community support programs in districts where

our sites are located and sponsoring events relating to the education

greenhouse gas emissions by 26% from the 2013 levels by 2030. Inof younger generations. We also seek to build an organization that

response to this move, the Japan Auto Parts Industries Associationencourages open communication and a workplace where employees(JAPIA), of which NOK is a member, established a voluntary

can work with a sense of fulfillment. This is a part of our efforts toenvironmental action plan to pursue its targets to be achieved by

implement the management spirit that respects human dignity. The

FY2020 and FY2030. The NOK group has developed a medium- to

NOK group aims to be an enterprise that not only brings economic

long-term environmental plan in view of these goals.

2 Environment

later in 2016. In this climate accord, Japan pledged to reduce its

1 Strategy & Management

A Corporate Group in Which All Stakeholders
Can Take Pridea recycling-oriented society by cutting back on the use of

benefits to stakeholders, but also makes them proud.

Take on Challenges for the Next-Generation Environment. Its three

CSR Reportpillars are prevention of environmental problems, which is forpractical and effective BCM actions; reduction of our environmental

NOK published its first Environmental Report in 2004 and has

impact for future generations, which seeks to help Japan fulfill

continued since then, with the title being changed to Environmental

its pledge under the Paris Agreement; and enhancement of the& Social Report in 2006. It was renamed again as the CSR Reportwill also address the recently discussed topics of environmental

an important tool to improve the way we communicate withenvironmental hazardous substance management system to meetfrom this year onward to better describe our business and social

external requirements, which relates to environmental quality. We

activities in addition to environmental efforts. This report is

impact on water and biodiversity conservation in the course of thesestakeholders and the public. We would look forward to receiving

activities.

frank opinions and comments on the report.

In FY2017, we have started deliberations to draw up a mediumto long-term environmental vision for NOK to strengthen ourenvironmental management. We are striving to share more of the
NOK group’s environmental activities with stakeholders.

Group
Three-year Plan (FY2017 to FY2019)
Slogan“Reinforcing Business Structure for Sustainable Growth”
Chairman’s Initiatives(1) Building well-balanced customer mix-Targeting sales expansion and new business creation(2) Achieving sustainable unrivalled quality(3) Establishing practical and effective BCM(4) Implementing management spirit that respects human dignity-Fostering vibrant people and workplace

4

3 Society

Our Environmental Policy for the three years starting FY2017 is toConcept of CSR and Our Organization
Concept of CSR
As stated in the Charter of Corporate Behavior, the NOK groupresponsibility (CSR) is an integral part of continuous businessnot only endeavors to contribute to the economic development ofactivities.

society, but wants to be a company with which all its stakeholders

We also value communication with stakeholders as an effective

are proud of us and chase their dream with us. All of our business

way to broadly examine the business climate and situation, as

activities are built on the NOK Charter of Corporate Behavior

well as to identify business risks and opportunities. The NOK(Management Principles, Management Policies and Principles ofgroup aims to be a company that not only brings benefits to

Corporate Behavior). We believe that fulfilling the environmental,

stakeholders, but also makes them proud.

social and corporate governance aspects of corporate social

Local
Community
and Society

Customers

Stakeholders

Suppliers

Shareholders
andInvestors

Financial
Institutions
To be a responsible developer,
producer and seller of products aswell as energy consumer, we strive
to reduce environmentally hazardous
substances and waste and develop
environmentally friendly products.

Quality Control
Occupational Healthand Safety
Employment Measures

Waste Reduction
Energy Conservation
Chemical Substances Control

Environmental
Consciousness
Green Procurement
Ecodesign
Resource Conservation

Employees

Contribution
to Society

NOK Group's
Business Activities

Compliance
Information Disclosure

Corporate
Governance

We provide products that meetcustomer needs, endeavor to createa workplace where every employee
can work safely with a sense offulfillment, and contribute to the local
community and global society as agood corporate citizen.

Cooperation with
Local Community
Social Contribution
Working Conditions

Corporate GovernanceRisk Management

We have an internal
system that ensures fair
and appropriate business
transactions as wellas business activities
that respect laws andinternational rules,
and seek to disclose
information in a timely,
appropriate manner.

Principles of Corporate Behavior

NOK Charterof Corporate
Behavior

Management Policies
Management Principles

Board of Directors

Our CSR Organization

Reports and Proposals

The CSR Committee was organized in October 2016 to increase theawareness of CSR throughout the company and to promote CSR

Approval

CSR Committee

activities more effectively.
Chair: Manager of Corporate Administration Office

Reports

Members: Representatives of the Environmental Control Dept.,

Related Internal Organizations
Central Environmental Protection Committee
Internal Control Audit Committee
Risk Management Committee
BCM Committee
Information Security Committee
Divisions
Safety and Health Committee
Labor-Management Council

Corporate Planning Dept., Corporate Communication Dept.,
Procurement Control Dept., Business Management Dept., Personnel
Dept., Safety & Health Dept., Legal Affairs Dept., General Affairs
Dept., IT Planning Dept., Engineering Administration Dept. and Sales
Administration Dept.
The CSR Committee collects reports from related internal committees
and divisions and oversees company-wide CSR activities while
disseminating external information, such as issuing CSR reports.

5

Management Foundation
Corporate Governance System
NOK's head office divisions have established rules for the internalContinuously strengthening the corporate governance system isdirections to NOK's operating divisions and subsidiaries, while theto this goal.

Internal Control Audit Committee periodically audits the internal

NOK has adopted the format of a company with a board ofcontrol system to determine the progress of improvement andcorporate auditors. In our organization, directors who are well-

implementation. In FY2016, there were no legal violations orversed in operations work together in harmony, while good

lawsuits against NOK that affected our performance critically.

governance is maintained through mutual monitoring by internaland external directors, as well as through management audits
conducted by statutory auditors, including external auditors.

1 Strategy & Management

control system. In accordance with the rules, these divisions give

one of our business management priorities, and we are committed

2 Environment

Corporate Governance System

Shareholders’Meeting
Appoint/Remove

Audit/Report

Appoint/Remove

10 Directors (including two external directors)

5 Auditors (including three external auditors)

Refer important
issuesReport executed
operations

Consult

Appoint/
Supervise

Appoint/Remove

ReportBoard of Statutory Auditors

Independent Auditor

Exchange information
ReportInternal Control Audit Committee

Reply

Chairman and President/Representative Director
ReportReportReportCheck progress of business plans,Management Meetings and Management Reviews management policies and operating
plans

Central Labor Management Council, etc.

DirectDirectExplain or discuss business plans,
important organizational changes,
management policies, etc.
ReportHead Office Divisions
DirectRisk management, compliance, quality/environmental management, etc.

Operating Divisions/Group Companies

Audit
Audit

The numbers of directors and auditors are as of June 28, 2017.

Compliance System

Crisis Management

Pursuant to the NOK Principle of Corporate Behavior, the

Our Corporate Risk Management Office takes the initiative in

Behavioral Guidelines Concerning Employee Compliance set forthbuilding our crisis management system, setting the following basic

the rules that employees must observe in their business activities.

policies:

We also continuously promote awareness. Efforts include(1) Give first priority to ensuring safety, protecting people anddistributing a compliance guide to every employee, publishingsaving people's lives.

a series of articles entitled An Introduction to Compliance in(2) In the event of a disaster in the local region, make proactive

company newsletters, conducting compliance training during newcontributions to the reconstruction of the region as a member

employee orientation and providing workshops for new managers.

of the community.
(3) In an emergency, minimize the impact on our customers andRisk Management

other stakeholders by continuing business to the extent
possible in order to fulfill our responsibilities.

To effectively address diversifying risks, the NOK group promotes

To ensure quick information gathering in the event of a majoran organization-wide risk management system with the Risk

disaster, we maintain a safet y confirmation system and an

Management Committee as its center.

emergency calling tree, and have emergency communication
devices in place. We also store supplies necessary to resume
business smoothly.
Our experiences with the 2011 Great East Japan Earthquake andthe 2016 Kumamoto Earthquake have prompted us to build amore effective business continuity management (BCM) structure.
In October 2016, the Central BCM Committee was formed bybringing together representatives of ten offices and four groupcompanies. The NOK group is prepared to maintain a solid BCM
structure in an emergency, while prioritizing people's lives.

6

3 Society

Board of Directors

Information Security Measures

Business Plan

To protect information received from customers, preserve

We intend to be a competitive, world-leading enterprise groupcompany assets such as proprietary technologies, and ensure

under the management principle of respect for human dignity.

1 Strategy & Management

appropriate use of information assets, we have established theIn the Three-year Plan that started in FY2017, the NOK group

2 Environment

divisions and group companies and allow the Information Security

NOK Group Information Security Policy. Also, the Information

seeks to achieve sustainable growth and development bySecurity Committee has been formed to closely coordinate our

optimizing its customer base through sales expansion and new

information security efforts with our business activities and tobusiness creation, further improving and stabilizing quality,

involve top management in this initiative.

establishing a BCM system, and developing human resources to

In FY2016, we revised our overall information security regulations.

drive these activities.

The aim was to rebuild the information security measures of ourReporting and Whistle Blowing System

Committee to audit them from objective, expert perspectives.

The NOK group provides a reporting and whistle blowing system

We will review these activities repeatedly to maintain and improvefor the early detection and correction of compliance regulation

our information security measures.

violations.

3 SocietyProtection of Intellectual Property

An employee who has noticed a violation can contact the

Our Behavioral Guidelines Concerning Employee Complianceor the employee finds it difficult to report the case, he or she canraise awareness among employees by providing precautions

contact the whistle blowing hotline. The whistle blowing hotline

regarding adherence to laws related to intellectual property

connects the employee to the Internal Control Audit Committee

rights. This is one of our efforts to promote patent applicationor an external lawyer. The whistle-blower is protected fromand rights acquisition for our inventions and prevent infringement

disadvantages under the compliance regulations.

reporting hotline. If the violation continues even after the reportingof third party patents and other rights. To protect NOK's brands,
we combat counterfeiting, even outside Japan, through our AntiCounterfeit Committee. In FY2016, we uncovered five counterfeit
factories and six fake stores.

NOK Group Reporting/Whistle Blowing System

1 Reporting Hotline

2 Whistle Blowing Hotline

Violation

Violation❸Investigation/
Correction

Employee

Employee❹Response❷Investigation/
Correction❸Response❶Reporting❶Reporting

Violation by an employee in the same section
Head of the section

Report to❹Response

ChooseInternal Hotline〈NOK〉

Violation by an employee in another section
Legal division

Secretariat of the Internal Control
Audit Committee(Legal Affairs Dept.)

When the division in charge is uncertain
Administration control division7❶Reporting

External Hotline〈Lawyer〉❷Cooperation

NOK Group Business Overview
Net Sales and Operating Income (FY2012 to FY2016)

Sales by Segment (FY2016)■ Net sales (Billions of yen) ■ Operating income (Billions of yen)
Billions of yen

693.7

200

591.4

713.1

60

67.1
48.3

2012

39.8

32.6

26.5

2013

80

2014

2015

2016 (FY)Net Sales:
713.1 billion yen

40
20

51.4%
366.8

0

■ Seal Business

43.5%
310.6

■ Electronic Device
Product Business■ Roll Business■ Other Business

Seal Business

2 Environment

0

540.9

746.1

1.8%
13.2

1 Strategy & Management

100

600
400

3.2%
22.6

Billions of yen

800

Net sales: 310.6 billion yen (up 4.9% year on year)
Operating income: 37.1 billion yen (up 14.1% year on year)

3 Society

Major products: Oil seals, O-rings, dust covers, industrial rubber
and resin products, rubber sound and vibration isolators
Major operating companies: NOK CORPORATION, UNIMATEC CO., LTD.
Founded in 1941, NOK is Japan's first oil seal manufacturer.
This functional part seals oil and is used in automobiles and manyother machines in a wide range of industries. Our synthetic rubber
processing technology is also used to produce items such as
O-rings and packings.

Electronic Device Product Business*
Net sales: 366.8 billion yen (down 10.5% year on year)*The Electronic Device Product Business was renamed the Electronic Components Business in FY2017.

Operating income: 0.6 billion yen (down 95.4% year on year)
Major products: Flexible printed circuits (single-sided, doublesided, multilayer and component assembly FPCs)
Major operating company: NIPPON MEKTRON, LTD.
The flexible printed circuit (FPC) is a film-based soft circuit board.
FPCs are built in electronic devices that need compact, lightweight,
super-flexible electronic circuit boards. They are commonly found insmartphones, mobile phones, hard disk drives and digital cameras.
As automobiles are employing an increasing number of electricand electronic components, automotive FPCs are finding wider
applications including switches, sensors and lights.

Roll Business

Other BusinessNet sales: 13.2 billion yen (up 4.2% year on year)

Net sales: 22.6 billion yen (down 18.1% year
on year)Operating income: 1.1 billion yen (up 46.1%
year on year)

Operating income: 0.8 billion yen (down 32.4%
year on year)

Major products: Special lubricants (grease, oil and coatingproducts for automobiles, industrial machinery, electric
appliances, food machines, etc.)

Major products: Development and charge rollers, cleaning blades,
fixing belts, pressure rollers, products for financial terminals,
products for textile machinery,

Major operating company: NOK KLUEBER CO., LTD.

Major operating company: SYNZTEC CO., LTD.

We manufacture and sell a range of lubricants that perform

Production of highly functional rollers for office equipment suchexcellently in severe operating conditions, such as super-high or super-

as copiers and printers.

low temperatures, at high speed or under heavy loads. Comprehensive
services are available to help customers improve the productivity of
their facilities and machinery and to reduce maintenance costs.

8

NOK Group's Products Support Daily Lives

1 Strategy & Management

Automobile and Traffic Safety ProductsElectronic Devices

The NOK group's products for automobiles and motorcycles include seal products (such as

NOK's FPCs, precision rubber and resin

oil seals, O-rings and gaskets), flexible printed circuits (FPCs), rubber vibration isolators,

components are built into various electronic

dust covers and lubricants. We also offer lane control/guidance products and shock

devices, such as smartphones, mobile phones,

absorbers.

computer hard disk drives, and digital cameras.

2 Environment

General Industrial Machinery

3 Society

NOK's oil seals, O-rings, gaskets, packings, and belts areused in construction machinery (such as power shovels,
bulldozers and cranes), agricultural machinery (such as
tractors and grain combines) and plant machinery forvarious industries (such as steel, paper and food).

Power Generation Plants
Our oil seals, O-rings and lubricants are built
into equipment and auxiliaries for thermal power
plants and renewable energy power plants (suchas wind, hydroelectric, photovoltaic and solar
thermal plants).

Aircraft andRockets
Our seal products are installed
in engines and turbo pumps foraircraft and rockets.

Residential
Equipment
NOK's O-rings are found in watersupply systems, water purifiers andshower toilet seats, while CELLSEAL
and membrane humidifiers are usedin residential fuel cells.

Marine Vessels
We offer seals for stern tubes andbearings in marine vessels.

Office Equipment andATMs
The NOK group's products are installed incopiers, printers and other office equipment,
including development rollers, charge rollers,
fixing belts and cleaning blades. Our billbeater rubber is used in ATMs and otherfinancial terminals.

9

NOK Group's Technology
The NOK group has been developing pioneering products,

printed circuits (FPCs) mounted in mobile phones. We leverage

including oil seals and O -rings, which are both functional

our technical strengths built since the company's foundation tocomponents essential to many industries, as well as flexible

deliver products that can contribute to a sustainable society.

energy. With ongoing public-private joint efforts to create asources and thus has a large potential as a means to store andhydrogen energy society in view, the NOK group is developing

transport unstable natural energy. Hydrogen is also expected

technologies that can broadly support relevant fields, including

to serve as a clean energy source because it generates nofuel-cell vehicles (FCVs), residential fuel cells and devices used forgreenhouse gases or hazardous substances when producing

production, transport and supply of hydrogen.

CELLSEAL*

Membrane Humidifier
The fuel cell uses a built-in ion
exchange membrane to generate
electric energy. The membrane
humidifier moisturizes the ion
exchange membrane to increase
generation efficiency.

*CELLSEAL is a registered trademark of NOKCORPORATION.

Grease for fuel cells*

O-rings for high-pressure hydrogen

Grease used in fuel cells must be water-insoluble and resistant toacid and alkalis. We offer high-performance grease that is provento work in a wide temperature range (from −40°C to above 200°C)
while exerting little adverse effect on rubber and resin materials.

FCVs and hydrogen stations use a variety ofseal products in high-pressure tanks, valves,pipe joints and so on. We offer O-rings
that can confine hydrogen gas, which iscombustible, at high pressure with excellent
sealability and damage resistance.

*Provided by NOK KLUEBER Co., Ltd.

Low-Friction Technology That Contributes to Fuel Efficiency
We offer various types of seal parts for use in automotive engines and automatic transmissions. As automobiles advance in fuel economy,
demand is growing for low-friction technologies for engine seals and rotational seal rings.

Le-μ's*TS-Ring（dynamic pressure seal）

Le-μ's is NOK's brand for low-friction sealing technology. We havesucceeded in reducing friction without compromising sealability by
developing four technologies: (1) configuration design, (2) low-friction
coating, (3) low-friction material and (4) low-friction grease.

The sliding surface of the seal ring is textured so that oil spreads over
it to effectively serve as the sealing medium. This allows an oil film toform on the sliding surface, which creates dynamic pressure and thus
significantly reduces the coefficient of friction. The TS-Ring achieves up
to an 80% reduction in torque compared with our conventional products.

*Le-μ's is a registered trademark of NOK CORPORATION.

10

3 Society

A fuel cell stack consists of unit
structures called cells. CELLSEAL is
used to seal hydrogen, oxygen andcoolant into the stack. We offer rubber
gaskets as single parts as well as
gaskets integral to the separator orother components. Our products are
made of rubber that is highly resistant toacid, water, heat and low temperatures.

2 Environment

Hydrogen can be produced from various renewable energy

1 Strategy & Management

Fuel Cell Components to Support a Hydrogen Society

Environmental Management
Basic Policies on Environmental Conservation
1 Strategy & Management

On the basis that the company is a member of the society, we give all our employees full recognition to the fact that our businessactivities, products, and services have diverse relations to the environmental impact in the global scale. We set and implement
the Basic Environmental Policy from a longitudinal perspective in order to contribute to the realization of sustainable
development of a society toward future generations.

1

2 Environment

2
3

3 Society4567Based on our unique technology, we promote the improvement of technology and development of products withenvironmental considerations to reduce the negative environmental impacts.

We promote energy saving to prevent the global warming, and promote reuse and reproduction of resources andreduction of wastes corresponding to the recycling society.
Setting the goals by NOK central environmental protection committee, we will continue environmental improvement
cooperating with business partners including suppliers, strengthen the control of chemical substances, prevent global
environmental pollution and strengthen the effort to initiative of water environmental impact.

We comply with related laws and regulations, local government ordinances, and regional agreement, etc., and promote
activities for environmental conservation.
We comply with self-imposed restrictions by the industry and customers, and positively engage in the requirementsfrom our stakeholders toward environmental issues.

We disclose information on environmental conservation and social contribution activities, and positively communicate
with local and broader society.

As a good corporate citizen, we strive to continually improve the environmental management system, as well as
promoting all employees to recognize the importance of biodiversity and conservation of global environment andcultivate the awareness toward the global environment.

●Second revision on 20 September, 2016

Chairman of the Board and President of NOK CORPORATION
Chairman of Central Environmental Protection Committee

Environmental Management System
To promote our environmental management activities smoothly

initiative in our activities to reduce energy consumption, manage

and steadily, company-wide efforts are made under the following

waste and reduce VOC emissions. The Small Committee forsystem. The Central Environmental Protection Committee, chaired

Promotion of Environmental Management, launched in 2017, hasby the President, sets the overall direction of our environmental

started discussions in an effort to formulate a medium- to long-

management and implements it. Small committees take theterm environmental vision.

President（Supervisor of Environmental Management）

Central Environmental Protection Committee
Internal Audit Officer

Chairman (President)
General Manager of Quality
Control OfficeInternal Audit Team

(Director of Environmental Management)

General Control Secretariat ofEnvironment(Environmental Control Dept.)

Head of Plants(Director of Environmental Management at Plants)

Vice-Chairman

Environmental Protection
Sectional Meeting

Head of Each Office

Small Committee for
Reduction of Energy Consumption

Head of Each Division

Small Committee for
Waste Management

Internal Audit Officer

Small Committee for
Reduction of VOC

General Control
Secretariat of Environment

Small Committee for Promotionof Environmental Management(General Manager of Quality Control Office)Committee forEnvironmental Protection
at Plants

All Sections

11

Strategically reducing our environmental impact under the environment policy ofTake on Challenges for the Next-Generation Environment
2016. The Japanese government has set a long-

have implemented various measures to fulfill theterm target for reducing greenhouse gas emissions.

four fundamental goals of our environment policy,

In response to this move, the Japan Auto Parts

Construct a Mechanism Corresponding to theIndustries Association (JAPIA), of which NOK is a

Globalization of Environmental Issues. These goals

member, announced its own targets to be achieved bywere aimed at complying with environmental laws and

FY2020 and FY2030, along with associated measures.
Recognizing the achievement of these targets as apriority in our business operations, NOK will strive toproblems, and meeting the revised ISO14001.

reduce its environmental impact through proactive andPursuing these measures, we expanded the mutual

strategic approaches.

monitoring system for compliance and environmental

A new Three-year Plan has started in FY2017. Under

performance to satellite companies in Japan andthe fundamental policy, Take on Challenges for the

Next-Generation Environment, we have establishedfinished the three-year period with no environmental

priority action items around three pillars: prevention

nonconformities detected globally. We also keptof environmental problems (for BCM); reduction of

our global environmental performance at desirable

our environmental impact for the next generationlevels for CO2 emissions, as well as for the recycling(for the Paris Agreement, etc.); and enhancement

rate of industrial waste and VOC emissions to theof the environmental hazardous substanceenvironment. To meet the revised ISO14001, wemanagement system to meet external requirements

amended the NOK environmental management manual(for environmental quality). To carry out these priority

accordingly and offered internal training to ensure that

action items, we will share information through closer

every employee understands the new requirements.

coordination across our group and global network and

The Paris Agreement, a new international framework to

pursue the fulfillment of our common objectives andcombat climate change, came into force in November

targets.

3 Societyeven group companies abroad. We have successfully

2 Environment

regulations, improving our environmental protection
performance, preventing environmental quality

1 Strategy & Management

In the past three years (FY2014 to FY2016), we

Operating Officer, General Manager of
Quality Control Office(Director of Environmental Management)

Tomio Nakayama

Environmental Management System
NOK Environmental Policy
FY2017 to FY2019

NOK has built an environmental management system compliant

Take on Challenges for the Next-Generation Environment

ISO14001 certified collectively and are operating under a single

FY2017 Priority Action Items

To ensure compliance with environmental laws and regulations,

Pillar 1

NOK's divisions and group companies have identified laws andwith ISO14001 and is implementing it. Our divisions have become
environmental management system.

Prevention of environmental problems (for BCM)

regulations that they must observe, along with key control items,a.Monitor and eradicate environmental problems by thoroughcomplianceb.Monitor and eradicate environmental problems arising fromdefective environmental facilities

and periodically check and improve the compliance status. We
will continue our efforts for the early detection and prevention ofenvironmental nonconformities.
● Registration Agency: Japan Automobile Research Institute,

Pillar 2

Registration Body

Reduction of our environmental impact for the next
generation (for the Paris Agreement, etc.)● Certificate Number: JAER 0335

a.Reduce our environmental impact and promote it throughactivities of the Small Committeeb.Respond to environmental requirements that consider the next
generationc. Improve our environmental protection performance

Pillar 3

Enhancement of the environmental hazardous substancemanagement system to meet external requirements (forenvironmental quality)
a.Increase the accuracy of investigations for environmental
hazardous substances contained in products and promptly respondto requests for investigationb.Upgrade the environmental quality voluntary audits

12Input & Output of Our Business Activities
NOK Corporation and Satellite companies*¹ in Japan during FY2016
1 Strategy & Management

INPUT
Raw Materials

2 Environment

Rubber………………………… 10,468 t
Additives & Adhesives… …… 8,360 t
Plastics……………………………… 717 t
Metals… …………………………40,015 t

PRTR*² Substances
Volatile Organic Solvents…… 1,360ｔ

OUTPUT

Design● Environmental Assessment of Products● Environmental Impact Assessment

Procurement

3 Society

Electricity…………… 262,253 MWh
Gasoline… ……………………… 779 kL
Kerosene………………………… 103 kL
Heavy Oil A……………………… 142 kL
Light Oil… ……………………… 152 kL
LPG…………………………… 820,045 kg
Utility Gas… …………… 382,977 N㎥● Environmental Impact Assessment● Environmental Audit of Facilities

City Water… ……………… 268,719 ㎥
Ground Water… ………… 112,224 ㎥
Industrial Water… ……… 454,156 ㎥

Returned Water… ………… 252,962 ㎥
Sewage System………………… 8,366 ㎥
PRTR Substances………………… 26 kg

and Machines

Waste

Production● LCA (Life Cycle Assessment)● Pollution Control

Water

CO₂ (Production)………156,146 t-CO₂*³
PRTR Substances(Production)…… 245.9 t
CO₂ (Raw Materials) …… 113,168 t-CO₂*⁴

Emission to Water● Green Procurement

Energy (Production)

Emission to the AtmosphereIndustrial Waste… …………… 11,333 t(Waste Plastics)
（6,683 t）
Recycled Waste… …………… 11,317 t
Landfill Waste… …………………… 16 t
CO₂ … ………………………2,931 t-CO₂*⁵(Outsourced Waste Disposal)● Chemical Substances Control● Energy Saving● Waste Reduction● Environmental Impact Assessment

Units Sold

7,946 Million Pieces

Energy (Logistics)
Diesel… ……………………… 3,645 kL
Rail………………………… 641,000 tkm
Ship… ………………… 1,199,000 tkm
Truck…………………… 3,675,000 tkm
The amount of diesel refers to the total amountpumped into trucks exclusively used for bothtransportation between production sites andlogistics centers and between logistics centers andcustomer sites.
tkm (ton-kilometer) = (Number of boxes transported)× (Mass) × (Kilometers driven)

Logistics● Efficient Transportation● Promotion of Modal Shift

Customers★Scope of coverage
The above input and output refer to the amounts from business activities
at NOK's seven divisions (Fukushima/Nihonmatsu, Kitaibaraki, Shonan R&D
Center, Shizuoka, Tokai R&D Center for Membrane Technology, Tottori, andKumamoto) and 17 satellite companies in Japan (Tenei Seal Industry, MIHARUIndustry, SENPOKU Industry, MIYAZAKI Industry, Tohoku Seal Industry,
Nihonmatsu Seal Industry, Isohara Polyurethane Industry, ISSHIN Industries,
MYK, Kikugawa Seal Industry, TVC, SAGA SEAL Industry, Kumamoto Seal
Industry, KUSU Kogyo, Nichinan Seal Kogyo, Kawazu Kogyo and TOSU Seal
Industry). Exceptions are PRTR substances, water used and emission to water,
for which the amounts refer only to NOK's seven divisions.

Emission to the Atmosphere (Logistics)

CO₂

10,074 t-CO₂*³

CO₂ emissions from exclusive trucks are calculatedby the fuel method. CO₂ emissions from cooperativetransport by truck, ship and rail are calculated by
the ton-kilometer method. The amount shown above
is a sum of both results.

hazardous chemicals released to the environment and transferred off-site fortreatment in the form of waste. It brings together information about which
chemicals are being released, how much and from which sources. (Source:
Website of the Ministry of the Environment)＊3 CO₂CO₂ emissions are calculated in accordance with the greenhouse gas
emissions accounting and reporting manual under the Act on Promotion of
Global Warming Countermeasures.
＊4 CO₂ (Raw Materials)
CO₂ emissions are calculated from the mass data of purchased raw materials
while referring to the JAPIA LCI Guideline.

＊1 Satellite company
A production subsidiary that manufactures products according to NOK's specifications.

＊5 CO₂ (Outsourced Waste Disposal)
CO₂ emissions are calculated based on the emission factor database fororganizations calculating GHG emissions through supply chains.

＊2 PRTR
Pollutant Release and Transfer Register, a publicly accessible database of13

Results and Targets
FY2016 Results and FY2017 Targets for Environmental Protection
FY2016

Environmental Policy

Comply with environment-related laws and regulations(Monitor and eradicate environmental problems by thoroughcompliance)

ResultRating*⁷

Target100%
complianceGood

Identify andfollow up

Identify andfollow up

Good

Sufficient quantity andquality of human assets

1 Absolute CO₂ emissions (t-CO₂)*⁶ from NOK's divisions

46,50047,300Poor

51,6002 Intensity (t-CO₂/million yen) at production divisions

1.71

1.62

Good

1.71

3 Intensity per square meter (t-CO₂/m²) at development divisions

0.16

0.16

Good

0.17

4 VOC emissions to the environment (t) from NOK's divisions

1,043

967

Good

976

5 CFC facilities (number of machines)

184

178

Good

－

6 Absolute CO₂ emissions (t-CO₂)*⁶ from NOK group companies
881,000
in Japan and abroad

882,700

Poor

883,600

7 Intensity (t-CO₂/million yen) at NOK group companies in Japanand abroad

1.17

Poor

1.07

4,364

Eliminate operational problems
activities)

1.03

Promptly respond to requests for investigation of environmental

Create and expand use
hazardous substances contained in productsof efficient environmental
hazardous substancessurvey system
Plan for information sharing systems

Good

3,877

Zero
environmental
qualitynonconformities

Zero
environmental
qualitynonconformities

Good

Creation of a database to
manage products containing
environmental hazardous
substancesZeroenvironmental
qualitynonconformities

Zero
environmental
qualitynonconformities

Good

Upgrading of environmental
quality voluntary audits＊6 The CO₂ emission factor of electricity usage in FY2016 and FY2017 used for Japanese sites is 0.571 t-CO₂/MWh (actual CO₂ emissions factor of electricity usage at thegenerating end after reflecting Kyoto mechanism credits during FY2012). For overseas sites, 0.642 t-CO₂/MWh (calculated from the weighted average of the group's global
power usage for FY2012) is used.
＊7

RatingPlans for improvement

Sustainment plans

Plans for worsening

Good

Progress/(Last year's result − Target)≥90%

Target achieved

110%>(Last year's result − This year's result)/(Last year's result − Target)

Fair

90%>Progress/(Last year's result − Target)≥70%

Not achieved, delayed
less than three months

130%>(Last year's result − This year's result)/(Last year's result − Target)≥110%

Poor

70%>Progress/(Last year's result − Target)

Not achieved, delayed
three months or more

(Last year's result − This year's result)/(Last year's result − Target)≥130%

NOK Group Companies Promoting Environmental Management● NOK CORPORATIONGroup Companies in JapanNOK Elastomers Processing Co., Ltd.
NOK METAL Co., Ltd.
and other 22 companies
Group Companies Abroad
Thai NOK Co., Ltd.
Wuxi NOK-Freudenberg Oil Seal Co., Ltd.
Vietnam NOK Co., Ltd.
and other 6 companies● EAGLE INDUSTRY CO., LTD.
Group Companies in Japan
Shimane Eagle Co., Ltd.
EagleBurgmann Japan Co., Ltd.
Eagle Highcast Co., Ltd.
and other 5 companies
Group Companies Abroad
Eagle Industry Taiwan Corporation
NEK Co., Ltd. (South Korea)
and other 6 companies● NIPPON MEKTRON, LTD.
Group Companies in Japan
Mektec Jisso Co., Ltd.
Group Companies Abroad
Mektec Manufacturing Corporation (Zhuhai) Ltd.
Mektec Manufacturing Corporation (Thailand) Ltd.
and other 4 companies● SYNZTEC CO., LTD.
Group Companies in Japan
Tokiwa Kogyo Co., Ltd.
Kuki Roll Industry Co., Ltd.
Group Companies Abroad
SYNZTEC PRECISION PARTS (Shenzhen) CO., LTD.
SYNZTEC VIETNAM CO., LTD.
and other 3 companies● NOK KLUEBER CO., LTD.

● UNIMATEC CO., LTD.
Group Companies Abroad
Unimatec Singapore Pte. Ltd.

14

As of March, 2017

3 Society

8 VOC emissions to the environment (t) from NOK group companies
4,753
in Japan and abroad

2 Environment

100%
compliance

Promotion of complianceself-audit in Japan andabroadMaintain and improve EMS (Review the environmental aspects of changes and irregular

Reduce environmental
hazardous substances

FY2017
Target1 Strategy & Management

Prevent environmental
problems

Action ItemGlobal Warming Countermeasures

Activities of Small Committee for Reduction of Energy Consumption
1 Strategy & Management
2 Environment

NOK engages in continuous and strategic energy

developing and installing energy saving equipment

conservation activities with the goal of reducingthat also improves productivity.

energy consumption by at least 1% of the previous

Since FY2015, we have expanded the scopeyear’s usage. This goal was set in line with JAPIA’sof energy saving activities from seven divisions

target as defined in its Voluntary Action Plan: “a
20% reduction of CO₂ emission intensity from thein Japan to 24 divisions that include satellite

FY2007 level in FY2030.”

We seek to extend our energy conservation efforts

Our major energy saving activities include

beyond equipment to address appropriate air

reducing energy consumption by eliminating

conditioning design and air flow analysis, andwasteful lighting, heating and operations, replacing

continue to search for ways to save energy while

equipment with more energy efficient models, andimproving the work environment.

companies.

3 SocietyAs our production is increasing overseas and at satellite companies（t-CO2）in Japan, saving energy in transportation is becoming an important

200,000

151,423 148,131

150,000

issue. The Committee is striving to reduce the amount of diesel

156,117

oil used by trucks. In FY2016, we reduced the use of diesel oilby the equivalent of 29,200 liters per year by improving transport

114,832

efficiency, reviewing transport routes, introducing new vehicles andenforcing eco-driving.

80,48150,0000Mitsuhiro Ishida

Environmental Action in Transportation

CO₂ Emissions

100,000

Deputy General Manager of
Production Engineering Technology Office
Chair of the Small Committee for Reduction of Energy Consumption

Trend of CO₂ Absolute and Intensity Emissions from Transportation
2012

2013

■ NOK’s seven divisions

2014

2015

CO2 emissions（t-CO2）
Intensity（t-CO2/million pcs.）
Unit sales（million pcs.）
12,0001.7
10,500 10,400 10,077
9,814 10,074
1.6
10,000
8,053
7,946
7,739
7,485
1.5
7,322
8,000

2016 （FY）■17 satellite companies in Japan

Note: See ★ on page 13 for details on NOK’s seven divisions and 17 satellitecompanies in Japan.

Although CO₂ emissions from NOK's divisions and satellite

6,000

companies in Japan in FY2016 were above the level of theprevious year and the annual target, as shown on the previous

1.43

4,000

page, this is attributable to the increased production of seal

1.29

1.30

1.31

0

Meanwhile, among NOK global group companies, both absoluteemissions and the emission intensity of CO₂ exceeded their2012■ CO₂ emissions

targets. This was due to the reduced production of electronic
components with better emission intensity.
The NOK group has set medium- to long-term reduction targets,and the Small Committee for Reduction of Energy Consumption
leads our energy saving activities to achieve the targets by focusing
on the development of energy efficient production equipment andstreamlining production processes.

15

1.3
1.2

2,000

products. Our emission intensity remained below the target.

1.4
1.27

2013

2014

■ Unit sales

2015

1.1
2016（FY）■ CO₂ intensity emissions

Development of Energy-Saving Equipment
The development of energy saving equipment helps reduce

which is not energy efficient because a hydraulic motor constantly
rotates at a fixed speed. In our energy saving project, we designed
the equipment in-house, combining the servomotor, ball screws,

In one of our development projects, we have successfully

reduction gear and timing belt to electrify operation. This has

electrified the drive mechanism of a ten-ton powder compacting

enabled us to run the servomotor at the desired torque and rpm

press. We replaced the conventional hydraulic motor with anand to operate the equipment with the lowest amount of required

electric servomotor, which reduces power consumption andenergy. We achieved a 60% reduction in power consumption.

eliminates oil leakage.

2 Environment

This powder compacting press has a built-in molding die thatconsists of four components, three of which move when molding.
The machine is conventionally driven by a hydraulic cylinder,

Comparison of Power Consumption

3 Society︵ kWh︶Power consumption
1.4
1.2
1.0
0.8
0.6

Conventional hydraulic equipment

0.4
0.2

New electric equipment

0.0
0

2

4

6

8

10

12

14 16
18
Time
（min）

20

22

24

■Hydraulic 4 tons

26

28

30

■ Electric 4 tons
Energy efficient compacting press

Site
Solar Power

Skylight Tube

1 Strategy & Management

emission intensity while improving productivity and yield.

OutputAnnual Output

Fukushima Plant 1

50kw

45MWh/year

Kitaibaraki Plant

20kw

22MWh/year

Kumamoto Plant Office Building

Equivalent to 0.2kw

Equivalent to
1MWh/year

Vulcanization area of oil seal plant,
Vietnam NOK

200Lux → 320Lux

Equivalent to
14MWh/year

Solar
Power

Skylight
Tube

Fukushima Plant

Kitaibaraki Plant
Kumamoto Plant

16

Control and Reduction of Environmental Hazardous Substances

Activities of Small Committee for Reduction of VOC
1 Strategy & Management
2 Environment

NOK continues to promote reduction of VOC

with alternative technologies is being initiated.

emissions released in the atmosphere. In FY2016,

The full conversion to substitutes at this site will

we almost reached the targets, achieving 7% lessmark the completion of the NOK group’s global

reduction than planned at NOK’s divisions and 8%

elimination of dichloromethane.

less reduction globally.

Now that we have finished technical deliberations

To reduce dichloromethane, which has a highon the total elimination of dichloromethane, aenvironmental impact, we completely eliminated its

new initiative has begun by identifying the next

use at an overseas site in FY2016. As of the end oftarget substance to reduce VOC emissions. We

FY2016, dichloromethane was totally eliminated athave decided to reduce the atmospheric release

11 sites in Japan (including subsidiaries, completedof organic solvents used in rubber cement andin FY2015) and was replaced at five out of six sites

adhesives. The plan is to study basic technologies

outside Japan. At one remaining overseas site, we

in FY2017 and verify them in mass production

expect to achieve complete elimination by the end

equipment in FY2018 and beyond.

of the first half of FY2017, and partial replacement

Masashi Kudo

3 Society

Activities to Control Environmental
Hazardous Substances

Amount of VOC Emissions
VOC
（t）
1,800
1,400
1,200
1,000
800
600

333

343
88

80
1,093

357
79
あたり

1,183

1,171

302

20
2013

kinds of laws and regulations, such as the European Union's ELV

2014keeps up with these changes in regulatory requirements and

60

0

2015

Directive, RoHS Directive and REACH Regulation. The NOK group

80

967

895

200
2012

year after year, with different countries establishing different

100
299

400
0

Regulations concerning chemical substances are becoming stricter

Chlorinated organic solvent（t）
120

1,600

Manager of Material Engineering Dept.,
Corporate Technology Office
Chair of the Small Committee for Reduction of VOC

trends to manage chemical substances properly.

40

We have also obtained ISO14001 certification through external

20

audits and have built our own environmental management system.

0

The control criteria for environmental hazardous substances are2016（FY）

incorporated into this system to prevent prohibited substances■ VOC from NOK ■ VOC from satellite companies in Japan■ Chlorinated organic solvent（included in VOC）

from adhering to, being mixed into or leaking into products or

Scope of coverage: NOK's seven divisions and 17 satellite companies in Japan
Note: See ★ on page 13 for the details of NOK's seven divisions and 17 satellitecompanies in Japan.

materials and manufacturing at production lines to delivery to the

packaging materials in any process from the acceptance of raw
customer.
We ensure that the same level of chemical substance control

Compliance with PRTR Law(environmental quality control) as our Japanese sites is
implemented for products delivered to customers from any of our

In FY2016, we reported seven regulated substances under the

production sites. Relevant plants in Japan and abroad are subject

PRTR law, which mandates that companies submit information on

to self-auditing their management of raw material procurement,

environmental release and transfer of specified toxic chemicals.

production processes and other activities. This allows us to prevent
nonconformity of environmental quality (e.g., unintended entry of●Results for FY2016
Emissions（kg）

prohibited substances) and other problems from occurring. The

Transfer（kg）

CabinetOrder
No.

Atmosphere

PublicWater

Landfill

Soil

Drainage

Off-site

Zinc Compounds(Water-Soluble)

1

0

26

0

0

0

1,519

Ferric Chloride

71

0

0

0

0

0

296

in delivered products, we have deployed a system to respond to

Xylene

80

235

0

0

0

0

28

such requests quickly and accurately as part of our efforts to build

N,N-Dimethylformamide

232

120

0

0

0

0

12,000Toluene300

245,506

0

0

0

0

40,837

Methylnaphthalene

438

6

0

0

0

0

0

Methylenebis(4,1-Phenylene)
Diisocyanate

448

2

0

0

0

0

1,200

245,869

26

0

0

0

55,880Substance Name

Total

results of self-audits and follow-up activities are shared throughan internal database, which has been made accessible to anincreasing number of parties. To prepare for customers’requests
for investigation of environmental hazardous substances containedan efficient, effective investigation framework.

Scope of coverage: NOK's seven divisions
See ★ on page 13 for the details of NOK's seven divisions.

17Commitment to Recycling-Oriented Society

Activities of Small Committee for Waste Managementfrom divisions in Japan. By evaluating the year’s

companies in Japan reached near the ceiling andperformance, we have found that we reachedstands at 99.8% or above since FY2013. We now

around 91% of the target. In the next Three-year

focus on maintaining this level. Under the Three-Plan starting FY2017, we will spread this initiative

year Plan that started in FY2014, the committee

to satellite companies with the goal of reducing

has been renamed the Small Committee for Waste

disposal. The method of evaluating results will also

Management and has launched a new initiative tobe improved through pilot evaluations based on

reduce waste associated with production. However,intensity indicators linked to production.

since we have conducted various reduction

The Committee will continue to promote efforts toactivities in each division, there is limited room

enhance our compliance, aiming for more advanced

for further improvement. In addition to reducing

waste management.

2 Environment

waste into valuables, reflecting ideas collected

the recycling rate at NOK’s divisions and satellite

1 Strategy & Management

Through the NOK group’s zero emission activities,

Manager of Environmental Control Dept.,
Corporate Quality Control Office
Chair of the Small Committee for Waste Management

materials used for production and waste being
discharged, our plan for FY2016 sought to turn

Jun Takashio

3 Society

Trend of Industrial Wastes and Landfill Wastes●17 satellite companies in Japan●NOK's seven divisions
Amount（t）
12,00099.8%
10.000

99.9%

99.9%

8,000
6,000

Amount（t）
16,00099.6%
14,000Recycling rate（%）
Amount
99.9%
99.9%
（t）
50

12,000

40
8,795

4,000

14

2,000
0

2012

■ Industrial waste

8,895

8,738

7,945

8,842

10,000
8,000

30

2013

9

6
2014

■ Landfill waste

2015

8

11,958

4,000

10

0

■ Recycling rate

11,642

99.9% Amount
（t）
50

99.9%

12,575

12,9772012■ Industrial waste

2013

2014

■ Landfill waste

13

2015

20
10

■ Recycling rate

●Total for NOK's seven divisions and 17 satellite companies in Japan■ Landfill waste

20,000

55

31

17

22

9,004

8,729

8,838

■ Reduction and recycling of sludge, waste oil, etc.

9,013

10,000

2,860

2,921

2,977

2,918

2,957

7,957

8,897

8,657

8,742

9,375

2012

2013

2014

2015

2016 （FY）

0■ Recycling of metal waste

9,468

15,0005,000■ Recycling of plastic waste, such as rubber waste

19

Note: See ★ on page 13 for the details of NOK's seven divisions and 17
satellite companies in Japan.

NOK Environment Mark
represents Nature , K indicates Keep , andTo raise employee awareness of environmental conservation, we
asked them to submit proposals for the company's environment

the O in the center is designed in themark. The mark chosen as the best design has been used as theshape of a globe. This design effectively
conveys the message Protecting Nature

symbol of NOK's environmental conservation activities.

on Earth.

The mark combines three letters that read NOK , where N

18

10

0
2016 （FY）

Breakdown of Industrial Waste
Amount（t）
25,000

40
30

11

2,000

0
2016 （FY）

99.9%

22

6,000

20
9

11,09041

Recycling rate（%）
99.8%

Environmentally Conscious in All Business Activities
Environmental Impact Assessment for Design

Application of the Standard of Environmental Impact Assessment for Design in FY2016

We assess the environmental impact of designs of new products,

1 Strategy & Management

Division

new materials and new production machines in accordance with
NOK's Standard of Environmental Impact Assessment for Design.
During the design phase, we plan for the disuse of environmental

Applicable Cases

Performance Improved

Fukushima

704

74

Kitaibaraki

1,442

155

hazardous substances, low energy consumption, high product

Shonan R&D Center

136

114

yields, downsizing, long service life, low friction and low wear

Shizuoka

741

16

Tokai R&D Center

120

performance, as well as reuse, low waste and recycling of end-oflife products.

2 Environment

Tottori

25

1

Kumamoto

29

23

3,089

383

Total

Standard of Environmental Impact Assessment for Design

3 Society

Production

Disposal

Use

Spread ofEnvironmental
Hazardous Substances

Material Consumption

Disposal of Waste● Improve the yield rate of products●Make products reusable●Avoid use of environmental● Improve service life of products

hazardous substances●Design production processes
with low environmental
impact● Save materials by downsizing●Adopt low emission or

recyclable designs thatare easy to disassemble

Energy Consumption● Minimize exhaust heat from molding

machines●Adopt machine designs that use energy

efficient components●Adopt low friction design to save energy

during use

Environmental Protection Cost

Trend of Environmental Investments and Costs●NOK's seven divisions

NOK calculates its environmental investments and expenses in
its business activities annually to fulfill its environmental social（Millions of yen）

2,000

responsibility and promote environment conservation activities

1,525

efficiently and effectively.

1,500

Our environmental investments in FY2016 include conserving
energy by installing high efficiency air conditioning systems

700
840
792

1,000

and replacing conventional lights with LED lights, improving

636

wastewater treatment facilities and the waste storage area, andreducing CFC facilities by renewing the thermostatic bath.

500
0

155
2012

438

133

2013

2014

■ Environmental investments

788
73
2015

2016 （FY）■ Environmental costs

Note: See ★ on page 13 for the details of NOK's sevendivisions and 17 satellite companies in Japan.

19

Biodiversity
for NOK Biodiversity Conservation.

ecosystem services. Based on the results, we have confirmed

This standard defines the biodiversity-related actions wethe direction that NOK should take to conserve biodiversity andshould take in our business activities and promotes biodiversity

established a common internal regulation in FY2011, the Standard

conservation.

Head View of Relationship between NOK Business Activities and Biodiversity

Store

Protect
speciesProtect
biosystem

Rubber

Leather product

Metal

Detergent/degrease

Resin

GreaseChemicalTextileProduct

Store

Protect
biosystem

Transport

Waste

Waste
disposal

Reuse

Protect
biosystem

RecycleLandfill

Business
Activities

Carrier

Manufacturer

Product/service
Discharge

Effluent treatment

Pipeline
Tanker

ＧＨＧ /ＣＯ２

Deodorize/dust removal

ChemicalTransport

Water

Transport
Mining

Bio Resource

Oil & Gas

Agriculture
Prevent fromdepletion

Sustainable useof bio resource

Transmission

Fuel

SupplyPump upgroundwater

Supplier

Use ofgroundwater

Coal

Forestry

Uranium

Oil

Fishery

Electricity

Gas

LivestockPrimary Energy

Electricity

Water

Air/water/soil
SOC
GHG emission

Protect
biosystem

Protect
biosystemNOK Business and Biodiversity
Activities

Related Ecosystem Services and Impact

1 Efforts to reduce CO₂ emissions and emission intensity

Impact on climate change

2 Promotion of water use reduction and water reuse

Impact on fresh water use and water purification ability

3 Reduction of nonconforming products, improvement of yields, reduction ofindustrial waste and improvement of the recycling rate

Use of wood, paper, textile, fuel, oils and fats, raw materials, genetic
resources, biochemical substances, natural medicines, etc., and collectionof biological resources

4 Prevention of entry of specified chemical substances into exhaust, andrestriction of volatile chemical substances, dust, etc.

Atmospheric quality and climate

5 Prevention of entry of hazardous substances, oil, etc., into drainage

Impact due to discharge of contaminants into waters

6 Management of nighttime outdoor lighting to limit leaked light and lighting hours Impact of nighttime lighting and noise
7 Compliance with applicable laws and regulations, including the Noise
Protection from natural disasters associated with water retention and soil
Regulation Act, Vibration Regulation Act, Soil Contamination Countermeasures erosion, recreation and spiritual wellness, and changes in habitats due toAct, Air Pollution Control Act, and Water Pollution Control Act
land use
8 Proper disposal of industrial waste

Protection from natural disasters associated with water retention and soil erosion,
recreation and spiritual wellness, and changes in habitats due to land use

9 Implementation of internal environmental education, participation in social
environmental activities, etc.

General20

3 Society

Wooden/paper productTransport

CustomerLand use/
Construction

Protect
biosystem
Raw material

CarrierLand
providerControlstorage

Carrier

Sub material

Constructor

2 Environment

Transfer ofnonnative
species

Air/water/soil
SOC
GHG emission

1 Strategy & Management

We assessed our impact and dependence on biodiversity andReports from NOK Group Sites
NOK Divisions
Fukushima and Nihonmatsu Plants

Tokai R&D Center for Membrane Technology

lights (mercury lamps) due to be renewed were replaced with LED lamps tobeen producing hollow fiber membrane products for water purification andjointly implement energy conservation activities. In FY2016, old exterior

2 Environment

As the leader of NOK's contribution to environmental conservation through1 Strategy & Management

The Fukushima and Nihonmatsu Plants are close to each other and therefore

seal technology, the Tokai R&D Center for Membrane Technology has

The Kitaibaraki Plant replaced its air conditioning system and compressors

In FY2016, the second plant of MYK Corporation was consolidated into the

local community's cleanup activities.

the completion of a major facility relocation for the Shizuoka site. The next

contribute to reducing CO₂ emissions.

developing/commercializing fuel cell gaskets for years. We remain highly

motivated to protect the environment by offering products that are conducive

The Nihonmatsu Plant, which expects to ramp up production, developed

to efficient water use and the commercialization of fuel cell vehicles.

plans to extend the plant building while ensuring compliance with the BuildingStandards Act and other applicable laws.

Kitaibaraki Plant

Shizuoka Plant

with energy efficient models in FY2016. Employees eagerly participated in theheadquarters factory on the premises of the Shizuoka Plant. This marked

The plan for FY2017 is engagement of all employees, including those ofstep will be enhancing our energy and resource conservation throughout the

management system, quality management system and total cost reduction—companies operating at the site.

site, including MYK and Kikugawa Seal Industry Co., Ltd, which are satellite

related satellite companies, in activities in three areas—the environmental
to improve yields, reduce waste and cut back on power consumption.

3 Society

Shonan R&D Center

Tottori Plant

We are developing basic technologies and materials that help us invent

The Tottori Plant has completely eliminated the use of dichloromethane.

that contribute to energy and resource conservation, such as a technology toand adhesives. We have established a Tottori Region Small Committee forenvironmentally friendly products and enhancing production technologies

Our next step is already underway to reduce VOC emissions from coatings

increase the efficiency of production equipment. The Center also emphasizes

Reduction of VOC, through which we cooperate with satellite companies intechnical support for NOK plants. One of our recent energy saving actions

the Tottori region to improve yields and step up efforts to restrict diffusion ofis the replacement of walkway lighting with LED lamps and conversion toorganic solvents.

energy efficient compressors.

Group Companies
NIPPON MEKTRON, LTD. (MEK)NOK Vibration Control China Co., Ltd. (NVCC)

The MEKTEC group has been committed to minimizing its environmental

As part of its VOC reduction program, NVCC completely eliminatedto ensure regulatory compliance. In FY2016, a new wastewater treatment

cleaning with water soluble cleaners into the assembly process. We also

impact by saving energy and reducing waste, and also to conducting audits

dichloromethane used in the cleaning process in March 2017 by introducing

facility opened at the Ushiku Plant, allowing us to recover resources fromstopped applying rustproofing oils on machined parts by replacing themwastewater that would otherwise be discharged.

with the rust-inhibiting properties of the cutting fluid used in the machining

process. The disuse of dichloromethane and rustproofing oils has also

Three sites underwent regulatory compliance audits and passed.

reduced offensive odors inside the plant, improving occupational health.

EAGLE INDUSTRY CO., LTD. (EKK)

Thai NOK Co., Ltd. (TNC)

The EKK group strives to save energy and resources at its sites in Japan and

In FY2016, TNC continuously improved its environmental management

Matters requiring group-wide efforts were identified in FY2016 in relation tolighting and carrying out other activities. The Bangpakong plant values thethe group decided to launch projects to manage water resources and onsite

disposed in landfills.

conservation activities.

communities to create a sustainable society.

abroad.

system and contributed to energy conservation by converting to LED plant

ISO14001:2015 requirements and recent global environmental issues, and

3Rs (Reduce, Reuse and Recycle) to lower the amount of hazardous waste

greenery in FY2017. The EKK group will continue to carry out environmental

TNC aims to raise environmental awareness among employees andSYNZTEC CO., LTD.
（SZT）

Vietnam NOK Co., Ltd. (VNN)

The SZT group engages in production at its group companies in Japan and abroad.

Located in a monsoon climate zone, southern Vietnam experiencesin technology and quality control by initiating activities to reduce nonconforming

temperature at VNN's O-ring plant has gone up year after year because heat

Independent efforts by SZT are focused mainly on support for internal sections

high temperatures and strong sunlight throughout the year. The indoor

products and save more energy. At the Yokosuka Plant, SZT has been planningfrom sunlight and the increased number of heat-emitting machines installedsince FY2016 to install additional activated carbon tanks to reduce the amountto ramp up production. In FY2016, thermal barrier coating was applied onof discharge water that is treated as waste. Once installed, these facilities are

the roof of the O-ring plant, which resulted in drop in the temperature of the

expected to help SZT achieve a marked reduction in the amount of waste.

plant environment.

UNIMATEC CO., LTD. (UMT)

P.T. NOK Indonesia (NIN)

With the goal of mitigating global warming and building a recycling-oriented

NIN was early to start preparations for transition to ISO14001:2015, andactivities. These include eliminating the use of CFC-containing equipment,

NIN focuses not only on ensuring compliance with laws and regulations, butsociety, UMT focuses on continuous improvement of their environmental

obtained certification in August 2016. To improve safety and the environment,

preventing the leakage and release of alternative CFCs, replacing mercury

also on making its plant buildings and equipment asbestos-free. Throughlamps with LED lights and recycling waste liquid.

energy saving activities, such as switching to LED lights, NIN has reduced its
annual CO₂ emissions by 2,078 tons.

UMT plans to phase out air conditioning and refrigeration systems that use
CFCs by the end of FY2019. UMT is also working to conserve water resources
and reduce water usage through efforts such as recycling cooling water.

21

Kumamoto Plant

1 Strategy & Management

Reconstruction after the Kumamoto Earthquake
On April 14 and 16, 2016, Kumamoto was hit by a series ofmajor earthquakes, with the strongest registering an intensity ofseven on the Japanese scale. NOK's Kumamoto Plant and somegroup companies in the prefecture suffered damage. Althoughthese sites were forced to suspend operations temporarily due

2 Environment

to the interruption of electricity and other utilities, as well as roadclosures in the region, we restored production lines by the end of
the month with the help of suppliers, contractors and other groupcompanies.

Environmental Conservation
The Kumamoto Plant periodically performs environmental
premises to protect the Aso region's water resources, which havebeen conserved by local residents. Such activities to contribute to
local environmental protection are conducted continuously. The

Relief supplies delivered fromall around the country after the
Kumamoto Earthquake. Someof these goods were donatedto nearby shelters.

plant also endeavors to increase product yields and is researching
the introduction of solar power generation and solar lights basedon lessons learned from the 2016 earthquake.

Wuxi NOK-Freudenberg Oil Seal Co., Ltd. (WNF)
Emergency Preparedness

WNF continues to improve its environmental activities
under the ISO14001 system.

To be prepared to deal with emergencies

Reduction of Power Consumption

related to environmental preservation, NOK has
established emergency response standards.

To reduce power consumption, direct exhaust covers were

We seek to confine impact on the environment

installed in the vulcanization process, which helped lower

to a small area by smoothly responding to

the shop floor temperature by 3 to 4°C. As a result, power

emergencies in accordance with the establishedconsumption for air conditioning was reduced by 350,000

standards. In addition, every division has

kWh per year. WNF also modified the control device fordocumented procedures for emergency response

the two ventilation machines installed in the mold cleaning

drills for the facilities it owns. Drills are conductedroom so that ventilation can automatically start and stop,

periodically to prepare for potential fuel oil

and successfully cut back on power consumption by 32,000

leakage from gas stations or sludge drainage

kWh per year.

from wastewater

To raise environmental awareness among employees,

treatment facilities,

WNF provides new employees with basic environmental

making the staff

training every year. Persons in charge of environmental

ready to prevent

management gather from all departments every month for

detrimental releasemutual exchanges.

into public waters.

22

3 Societymeasurements of drainage from the plant and groundwater on theProcurement Policy
The NOK group's procurement from suppliers complies with its Procurement Policy
1 Strategy & Management

We believe that if we are to fulfill our corporate social

Procurement Policy

responsibility, it is essential that our awareness is sharedacross the procurement supply chain. We are asking our

1 We comply with laws, regulations and social norms.
2 Based on the idea of free competition, we select suppliers ina stringent manner by providing fair and equal opportunities.
3 We share mutual interests and benefits with suppliers basedon the idea of mutual prosperity.

suppliers to understand the Procurement Policy shownon the left and respect the NOK Charter of Corporate
Behavior and CSR Procurement Guidelines in business
transactions with us.

2 Environment

4 We engage in open communication and build a relationship oftrust with suppliers.
5 We conduct improvement activities proactively in collaboration
with suppliers.

3 Society

CSR Procurement Guidelines
To fulfill our corporate social responsibility, we carry out procurement activities in accordance with the following policies:
1. Compliance with laws andregulations
2. Respect for human rights

3. Safety

4. Green procurement

5. Confidentiality

6. Elimination of anti-social
forces
7. Activities regarding
conflict minerals
8. Contribution to local
communities
9. Sharing awareness with
suppliers

We comply with laws and regulations, including the competition laws, trade laws,
environmental laws and social norms of relevant countries.

We do not deal with business entities that would use forced or child labor, that would
engage in unlawful employment of foreign nationals or any other illegal employment andthat would not satisfy industrial safety and health requirements.

We prioritize the safety of customers and consumers and purchase products that satisfy
safety requirements.

We carry out procurement activities based on the NOK Group Green Procurement
Guideline with consideration for preserving the global environment .
We deal with suppliers that can appropriately manage and control the confidentiality of
information on customers, individuals and technologies, etc. obtained through business
transactions.
We do not deal with any organized crime groups, any of their members and related
individuals nor any other antisocial forces as well as any business entities associated withthem.

We strive to avoid purchasing minerals and products that use minerals from countries
where inhumane armed forces are active and mining minerals for their financial
resources.
We contribute to the development of local communities by promoting business
transactions with local suppliers.
We strive to ensure that the NOK Charter of Corporate Behavior and the CSR Procurement
Guidelines are respected throughout the supply chain.

Our production activities are centered on industrial components

to procurement activities, we have established the NOK Groupmade from high molecular materials, such as synthetic rubber andGreen Procurement Guideline. Controlling environmental

resin. We are committed to environmental conservation activities

hazardous substances and building a system to guarantee thesuch as managing environmental hazardous substances used in

non-inclusion of these substances throughout the supply chain are

production processes, saving energy and resources, and reducing

our priorities.

waste. To extend these controls beyond production processes

23Customer FirstThe NOK group continues its efforts to provide high quality
products and services for customers.

1 Strategy & Management

Quality Management System
To continually produce products that meet customer requirements,
we have been implementing and improving our quality management
system, which complies with international standards such as

President

ISO9001.

Corporate Quality Control Office

the quality assurance activities at the NOK group.

Quality Control Officer

We have expanded the scope of onsite audits by quality control

Divisions
Quality Control Manager

officers since FY2013. We strive to achieve a uniform quality levelglobally for NOK products through close exchange of information

Group Companies in Japan
Group Companies Abroad

2 Environment

Our internal control rules for subsidiaries are revised to enhanceon the quality management system both in Japan and abroad.

3 Society

Global Use of the Quality DojoNOK Group QC Circle Meeting

The Quality Dojo is NOK's school, and it aims to develop human

The NOK group encourages employees to form QC circles:

resources who can communicate, practice and promote theautonomous small groups that engage in quality improvement

culture of“Quality First”in day-to-day work. Quality Leaders*1

activities.

guide their subordinates and colleagues while engaging in theirU n d e r t h e t h e m e o f Vo l u n t a rily p u rsu i n g d ow n - to - e a r t h

own quality improvement activities as part of their work. We also

improvements by going back to the starting point of QC circles ,develop Quality Dojo Masters, who serve as trainers by opening

presentation meetings are held at NOK divisions in Japan andtheir own Quality Dojo to teach others.

global group companies every year. In FY2016, 1,213 QC circles

As it reaches its eighth anniversary, our Quality Dojo program has

took part globally. Eight circles, each selected at a regional

trained more than 780 Quality Leaders in Japan. Quality Leaderspresentation meeting, gathered and reported their activities at thehave communicated what they have learned at the Quality DojoNOK Group QC Circle Meeting, where the best QC circle in theto others in their workplace to build a Quality First Line*2. The

NOK group was decided.

program was converted into Asunaro activities*3 in FY2015, andWith more QC circles being formed throughout the NOK group,

continues in a different framework. Under the slogan of There is no

we can see wide-ranging QC circle activities at many of our sites,

end to improvement activities , we relentlessly pursue improvement

group companies and affiliated companies in Japan and abroad.

in an attempt to build Quality First Lines.
To further enhance improvement activities, NOK organizes
gatherings called N-Act, where Quality Leaders present the resultsof their initiatives.
We have also opened Quality Dojos at our sites in China andSoutheast Asia. In China, eight Quality Dojo Masters were certified
during FY2015 and FY2016, which has allowed our Chinese site toindependently operate its own Quality Dojo. The certified Quality
Dojo Masters in China have trained 85 Quality Leaders to date.

*1 Quality Leader: The title granted to a person who has graduated from the
Quality Dojo.
*2 Quality First Line: A production line that does not produce or releasenonconforming products.
*3 Asunaro activities: Asunaro is a Japanese word that literally means“itwill happen tomorrow,”and here it conveys the message,“We will build a
Quality First Line tomorrow.”This initiative encourages employees to continue
improvement activities with the goal of developing their production lines to alevel equivalent to that of Quality First Lines that were built previously.

24Nonconformity Reduction Activities

Promotion of Products at Exhibitions

NOK strives to reduce nonconforming products to improve

NOK exhibits at many trade shows in Japan and elsewhere every
year. Through exhibitions, we seek to make our technologies andquality and cut back on waste. We have also been committed to

1 Strategy & Management

products known to a broader range of prospective and existingdeveloping human resources through these activities.

customers, and to improve our understanding of market needs.

In FY2011, the Zero Nonconformity Project was launched. The

We also organize in-office exhibitions in which our products areproject was extended to satellite companies in FY2013 in an

displayed in a spare space at customers' sites. This provides us

effort to make project activities“self-propelling,”or autonomous,an opportunity to better understand the customer needs andat each site. As a result, more than 200 initiatives were carriedencourage communication with them.

out throughout the NOK group during the three-year period from
FY2011 to FY2013, leading to the decline in the nonconformity rate

2 Environment

by 30%. Through these activities, production teams have enhanced

Participation in Automotive Engineering
Exposition 2016 Yokohama

their problem-solving capabilities as they repeated checks basedon observation and the principles of gemba (actual place) and

gembutsu (actual thing). This has also helped develop leaders

The NOK group joined many exhibitions in FY2016 as in

who can take the initiative in the activities. Our sites in China andprevious years.

Thailand adopted this project in later FY2012 and became the first

Automotive Engineering Exposition 2016 Yokohama took place

overseas group companies to join the annual reporting sessionin May 2016, and we showcased the Le-μ's* series of products

held at the end of FY2014. Nonconformity reduction activities are

3 Societyto impress visitors with our new brand. Also on display weresteadily taking root even at overseas sites.

low-friction technologies and products, such as water pump

Over 240 projects were implemented during the FY2014 tomechanical seals with textured seal faces and low-torque

FY2016 period. Our goal in FY2017 is to spread the activities

rotational seal rings.

further and make them more autonomous and fully established at* Le-μ's: NOK's low-friction technology brand. See page 10.

our group companies around the world.

In-house Quality Award System
Our quality award system was introduced in FY2008 to boost
quality improvement activities. All employees of the NOK groupin Japan are eligible. Following a nomination and selection
process that takes place every six months, organizations thathave accomplished excellent results through effective quality
improvement activities are honored. Articles on the outstanding
improvements they have achieved appear in company newsletters.
Nomination guidelines were revised in FY2012 so that theaward system can promote quality improvement activities more
effectively. The revised system encourages nominations of projects
that are feasible and implementation by teams to increase quality
awareness among employees.
Nine teams were nominated in the first half of FY2016, andProduction Sect.1 of Production Dept., Kitaibaraki Plant, won theaward. In the second half of the year, seven teams were nominatedEstablishment of Customer Support Centerand two of them—Production 4 Sec. of Production 2 Dept., TVC

The Customer Support Center responds to various inquiries

Co., Ltd., and MEKTEC Manufacturing Corporation (Suzhou) Ltd.—

about NOK's technologies and products. Questions and requests

received the highest awards. The quality award system helps us toreceived by the Customer Support Center are reported tocreate a workplace culture that encourages quality enhancements

relevant departments and receive a follow up. This input provides

and improvements.

information used in resolving challenges that customers face andin proposing new projects.

Quick Response Based on the 3G*
When a product nonconformity is detected, the sales department
and the divisions in charge of related products cooperate torespond quickly while being aware of the importance of initialaction. They make a concerted effort to resolve the problem asquickly as possible by following the 3G principle.
*3G: Gemba (actual place), gembutsu (actual thing) and genjitsu (actuality).
Respectively, these three Japanese words express important actions to take:going to the gemba and seeing where the problem happened, seeing the
gembutsu first-hand and checking things, and seeing genjitsu first-hand andlearning the facts.

25Social / Local Area Activities
Sponsor for 14th Student Formula Japan

Sponsor for NHK Gakusei Robocon 2016,
Japan's preliminary for the ABU Asia-Pacific
Robot Contest

From September 6–10, 2016, Student Formula Japan took placeat Ogasayama Sports Park ECOPA, Shizuoka Prefecture. Student
Engineers of Japan, and NOK has been a sponsor since 2008.

Ota Ward Gymnasium in Tokyo. NOK has been sponsoring NHK

The NOK group's products are supplied to some participating

Robocon since 2015. Energy was the theme for the 2016 contest.

universities, and there are NOK logo stickers on their vehicles.

Participating teams competed to install a propeller as quickly as

NOK is proud to support young engineers who are enthusiastic

possible on a pole at the finish point by using two robots—an eco-about building cars.

robot with no actuator and a hybrid robot that moved the ecorobot by wind power and magnetic force.

1 Strategy & Management

Formula is a competition organized by the Society of Automotive

NHK Gakusei Robocon 2016 took place on July 10, 2016, at

2 Environment
3 SocietySupport for Confectionery Palette, a non-profit
organization

Public relations booths were set up by sponsor companies at theentrance of the venue. Our booth displayed NOK group products

We invited Confectionery Palette to sell their baked goods andwith potential for robotics applications, such as pressure sensitive

other items at our Head Office.

rubber, thermal conductive rubber and high density multilayer

Confectionery Palette is a certified non-profit organization aimed

FPCs.

at helping to create a society where people with disabilities canlive how they want to and provides jobs and life-related assistancefor the mentally challenged.
NOK has been supporting the activities of Confectionery Paletteand organizes their sales events regularly, offering a space in our
Head Office building.

First sponsorship for Kids Engineer 2016
NOK was an official sponsor of Kids Engineer 2016, which was

Internships

held from August 5–6, 2016, at PACIFICO Yokohama. It marked
the first time NOK was involved in the event. Organized by the

The NOK group offers internship opportunities for students

Society of Automotive Engineers of Japan, Kids Engineer provides

interested in the automobile parts industry. Interns join our R&D

a hands-on learning opportunity for schoolchildren and is aimed at

department to work on specific projects for a few weeks.

encouraging their interest in science, technology and monozukuri

Examples of projects for interns include structural analysis, product(manufacturing skills) through automobiles.

assessment, and material analysis, as well as equipment design,
image processing and metalworking. Some 50 students apply forinternship every year.

26

Activities of NVCC in the NOK Group
Founded in 2002 in Wuxi, Jiangsu Province, China, NOK

1 Strategy & Management

Vibration Control China Co., Ltd. (NVCC) is a manufacturerof rubber vibration isolators. Following the ideas expressedin NOK's corporate mission of becoming a highly profitablecorporate group in which all stakeholders can take pride andits business principle of management spirit that respects humandignity , NVCC declares that“corporate value lies not only inthe pursuit of interests, but also in employees’ happiness,

2 Environment

the delight of customers and our contributions to society,”and emphasizes efforts for employee benefits and welfare,environmental protection and social contributions.
■ Supporting the Wuxi Child Welfare Center
One of NVCC's social contribution programs is called Sunflower
Volunteer, which involves volunteer activities by its employees.

3 SocietyIn spring this year, about 20 employees visited the Wuxi Child
Welfare Center and took children with learning disabilities living
there to a park near NVCC. The 30 children enjoyed recreations
such as drawing pictures and singing together. The children
were greatly pleased because they rarely have chance to go out.
“Other companies operating in Wuxi often offer recreation andeducational programs within our facility, but this is the first off-site
activity we joined,”said a member of the facility's staff.“The event
provided a good experience for children. We really hope that thisprogram will continue.”Positive feedback was also received from
NVCC employees who participated in the event. One said,“I was
glad to see children enjoying themselves. I will definitely join again
next time.”Another said,“It was a great, refreshing experience
for us, too.”NVCC employees periodically visit the facility tospend time with children and organize large events, like the one
described above, once every three months.

Message from Yoshiaki Takahashi,
Director/General Manager of NVCC
Compliance with laws and regulations, and other“defensive”
CSR activities are the norm for us. NVCC strategically pursues“aggressive”CSR activities by incorporating CSR action plans
into our business plan and forming project teams and task
forces. NVCC's social responsibilities consist of responsibility toemployees, responsibility to the environment, responsibility to themarket and responsibility to public interest. We define these four
responsibilities, plan and implement actions, assess the results to
identify problems and address them to improve future activities.
By steadily applying the Plan Do Check Act (PDCA) cycle, we areenhancing our CSR activities. We will continue a concerted effort
to ensure that NVCC remains a company that can bring bothbenefits and pride to all of its stakeholders.

27

■ Community involvement and support
NVCC also gets involved with people in the community.

1 Strategy & Management

For example, we organize a bazaar in the local area, whereapproximately 10,000 people live. The community is home for
2,500 Wuxi citizens, who are native residents, and about 7,500
migrant workers from outside the city. Many NVCC employees
also live there. NVCC provides life-related services, such asdelivering meals and providing haircuts, to people in need who livein the community. Future plans include safety education for the
residents and educational assistance for the children of migrant

2 Environment

workers. Those residents who have received support appreciate
the help of NVCC employees, with comments such as,“They treat
us so warmly that they are like family members to us.”An NVCC
employee responded:“We want to continue our communitybased contribution activities and explore the residents' needs.”

3 Society■ Local cleanup activities
As part of our environmental protection activities, some employees
volunteer to plant trees along the roads in Wuxi and clean up therivers and streets in the neighborhood.

Feedback from Employees Having Participatedin Sunflower Volunteer● “I joined a volunteer program at a nursing care facility for theelderly and helped serve meals and offer recreation. I felt joy inhelping people, and since then I have become conscious of doing
one good deed every day.”● “We were not enthusiastic at first, but are now we like to get
involved. I am grateful to the company for giving me the opportunity
to participate in social contribution activities.”● “I took part in the program to support the Child Welfare Center.
Since then, I have realized that I want to value my relationship withmy family, friends, colleagues and others around me.
● “I am proud of being an employee of NVCC, which engages in
activities to extend a helping hand to those in need.”28

Activities of NOK Group Companies

1 Strategy & Management■ Assistance for education at elementary and junior high schools■ Mangrove tree planting

To help nurture children as the foundation of the next generation,

On September 10, 2016, employees of Thai NOK Co., Ltd.,

Wuxi NOK-Freudenberg Oil Seal Co., Ltd. (WNF), located in Wuxi,

planted mangrove trees at Sattahip Naval Base in Sattahip District,

Jiangsu Province, China, sends staff to local elementary and junior

Chonburi Province, Thailand. The aim is to reduce CO₂ emissions

high schools to give special lessons to students. From April 25–27,

and prevent coastal erosion. Although the event took place on a

2016, WNF's instructors visited Sichuan Vocational Middle School

holiday, 120 employees participated and planted 1,000 mangrove

to offer education in safety and quality, as well as career education

trees. In 10 years, these trees will have the effect of reducing

by teaching business manners and explaining WNF's jobs andabout 10 tons of CO₂.

products. From July 3–5 of the same year, WNF sent instructors

2 Environment

to Sichuan Haijincun Elementary School to help teach English,
Chinese, art, physical education and more.

3 Society■ Boys and girls soccer competition
On October 22 and 29, 2016, the 2nd MEKTRON Cup Boys andGirls Soccer Competition took place at the MEKTRON Ground, thesoccer field at the Ushiku Plant, NIPPON MEKTRON, Ltd. There■ Support for an orphanage

were 24 teams consisting of schoolchildren from the cities ofP.T. NOK Asia Batam (NAB), located in Batam Island, Indonesia,

Ushiku and Ryugasaki, Ibaraki Prefecture. The MEKTRON Groundmakes donations to a local Muslim orphanage. People from NAB

has been provided as a practice field for local soccer teams, partly

visited the facility on June 16, 2016, which was during Ramadan,because children of some MEKTRON employees play on the teams.

and spent time with the children. NAB also conducts volunteer

In addition to making the soccer ground available, MEKTRON began

activities at senior's homes.

organizing an annual boys and girls soccer competition in 2015
to contribute to the local society, enhance employee welfare andprovide employees with an opportunity to communicate with one
another.

29

Communication with Shareholders, Investors and External Organizations
Financial Results Briefings

NOK exhibited at Tokyo Stock Exchange IR Festa 2017, which took

The NOK group holds two financial results briefings every year,

place from February 24–25, 2017, at Tokyo International Forum.

one in May for annual results and another in November forThis event aims to offer an opportunity for individual investors

interim results. Securities analysts, institutional investors, research

to communicate with listed companies. NOK held a 10-minuteinstitutions, journalists and financial institutions are invited to thesecompany briefing session about twice an hour at our booth.

sessions, where we explain financial results and forecasts, and also

We explained our business activities, performance and growth

respond to questions.

strategy. Some of our products were displayed on the walls of the

Presentation materials used for financial results briefings arebooth, along with information on application examples.

available at NOK's website.

We distributed questionnaires to visitors after every briefing

IR Calendar

The event allowed us to obtain valuable feedback from individual
investors.

1Q

2Q

3Q

4Q

Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.

2 Environment

session and received responses from more than 500 of them.

1 Strategy & Management

Exhibition at Tokyo Stock Exchange IR Festa 2017

Announcement offinancial results

Announcement of
1Q results

Announcement of
2Q results

Announcement of
3Q results

Relations with External Organizations
The NOK group is a member of economic organizations andindustry associations and participates in their activities. We
cooperate with these external organizations by acting as a generalaffairs committee member of the Japan Auto Parts Industries
Association (JAPIA) and the chair of the Japan Electronics
Packaging and Circuits Association (JPCA).
At JAPIA, we seek to contribute to the development of theautomobile and automobile parts industries. NOK is a member ofsubcommittees on the environment and on conflict minerals, andexchanges views with other JAPIA members.

30

3 Society

Annual shareholders’meetingRelations with Employees
Respect for Basic Human Rights

Supporting People with Disabilities

One of NOK's Principles of Corporate Behavior is Respect for

NOK is eager to employ people with disabilities. As of April 2017,

1 Strategy & Management

Human Rights and Provision of a Safe and Comfortable Working

there are 67 employees with disabilities working at NOK.

Compliance, work rules and other internal regulations explicitly

Re-employment System

Environment . Our Behavioral Guidelines Concerning Employee
prohibit discrimination and harassment. To address harassment, an

A system to rehire employees who have reached retirement

employee hotline is available at each division.

age was introduced in 2006. We seek to improve the system

2 Environment

Supporting Diverse Work Styles

so that healthy retired people who still wish to work can make

NOK provides childcare leave and other systems that help

through their career at NOK. For example, retired employees

full use of their rich work experience and advanced skills gained
can pass their work-related knowledge and techniques on toemployees work in ways that suits their lifestyles.

younger generations while improving their livelihood through re-

Recognizing that having systems in place is not enough, we seek

employment under the system.

to appropriately implement these systems so that employees
can make use of them more easily. The number of employees

Employee Welfare

who took leave under the special leave systems during FY2016 isshown below.

NOK provides working conditions that are suitable for different

3 Societystages of working life, covering a long period from entry into
the company to post-retirement years. Major employee welfare

Employees Who Took Special Leave in FY2016
SystemNumber of EmployeesChildcare leave

47

Nursing care leave0

benefit plans are as follows:(1) Housing benefits, such as company dormitories for singles,
company housing for families, housing allowances, and thepromotion of home ownership through a housing loan system(2) Asset accumulation support, such as an employee stock
ownership plan, ESOP trust, employee savings plan and employee

Work-Life Balanceloan program

Our efforts to reduce the total hours worked by employees(3) Retirement income support, such as a company pension plan,

focus mainly on cutting back overtime work through enhanced

defined-benefit retirement allowance and pension plan, subsidies

productivity and increasing the rate of annual paid holidays taken.

to support retired employees until they become eligible for public

To promote leisure activities, NOK's corporate pension fundpensions, and re-employment systemprovides subsidies for employees who spend their vacations at
designated resort facilities.

Personnel Exchange with Overseas Group Companies

Mental and Physical Health

To ensure that the management spirit that respects human dignity■ Employee Health Consultation

personnel departments of major overseas group companies

is in place at overseas group companies, meetings are held withperiodically to discuss personnel systems and exchange

NOK provides a telephone health consultation service that isavailable around the clock free of charge to help employees

information.

maintain and enhance their mental and physical health. We also

Technical trainees from overseas group companies are also

cooperate with industrial physicians and nurses to promote

accepted at our Japan sites.

employees’mental health at work.

31

Human Resources Development Program
NOK's human resources development program consists of level-■ Special-purpose training

specific education and development/specialized education. Level-

Training programs meeting various needs are available, suchas those aimed at providing support for female employees andyears of service and for those in specified positions. Development/

for employees rehired after retirement age, as well as those for

specialized education is designed to train employees in skills that

improving workplace productivity.

are considered necessary for their duties by their supervisors.
Training records are kept and updated in the corporate training■ Development of global human resourcesmanagement system. In FY2016, 850 employees received training

This program seeks to develop employees who can actively apply

through the program.

English at work rather than people who can simply speak English
duties individually, and receive on-the-job and off-the-job training

Operating Officer

Training for Operating Officers

Dept. Manager

Training for Dept. Managers
Follow-up training for managers

Sect. Manager

Training for new managers

Group Chief/
Deputy Sect.
Manager
4th year
employee
3rd year
employee
New employee

Training for office leaders

Businessskillseducation

4th year follow-up education

Globalhuman
resourcesdevelopment

Pre-transfer
education

Specialpurpose
training

Interview
New employee education
Young Employee
Education Program

Management Program

Executive Program

Level-specific Education

Specialized
Education Program

Human Resources
Development Program

Development/Specialized Education

Sports Festival
To enhance employee friendship andsolidarity, the NOK Group Sports Festival
was held in September 2016. It was ahuge event held under the slogan ofBringing Together the Group throughSports, bringing together more than 3,000
employees from NOK divisions and groupcompanies in Japan.

32

3 Society

Career/Position

for a year.

2 Environmentwell. Employees who pass preliminary interviews are assigned

1 Strategy & Management

specific education is mandatory for employees after specifiedOccaupational Health and Safety Management System

Activities during FY2016

We promote safety and health activities by forming a divisionlevel organization for safety and health management supervised■ Activities for safety and health

1 Strategy & Managementby the head of the division, who serves as the Supervisor of Safety

Our safety and health policy for FY2016

and Health Control. Company-wide activities are also conducted

was Prevention of Workplace Accidents bythrough coordination between the secretariat in each division andEliminating Unsafe Behavior. We thoroughly

the Safety & Health Dept. at the Head Office.

looked for unsafe practices at our sites, gave

To prevent the recurrence of workplace accidents, we have

remedial instructions and provided training

compiled annual statistics on these accidents every year since

to ensure safe work.

FY1973 and distributed the information to all managers in every

To better address employees’ mental

2 Environment

division, boosting safety awareness and information sharing among

health, we have added a new program toemployees.

our existing effort, which consists of selfcare, care by managers and care by internal

Yoshihiro Takagi
Deputy Manager of the
Safety & Health Dept.

experts. A toll-free telephone consultation service provided by an
external specialized organization is now available 24 hours a day, every
day of the year. We are enhancing our capacity to respond quickly to

Head of Division

mental health problems and to help employees smoothly return to work

3 Society

Supervisor of Safety and
Health Control

after a long absence.

Safety & Health
Dept.

■ Activities to improve the workplace environment
Division's Secretariat(Environment & Safety,
Administration Control,etc.)

Industrial
PhysicianWe started activities to improve the workplace environment in FY1993
and implemented measures in two phases. The first phase focused on
the working environment (noise, heat and cold), and the second on work
management (working posture and handling heavy objects).
The third phase of the plan for workplace improvement was launched

Safety Manager

Division's Safety
and HealthCommittee

in 2005 to address management of support systems, which refer toproviding facilities for employee relaxation and facilities essential toDept. Manager

Sect. Manager

Group
Chief

workplace comfort. We have set up rest areas for employees.

Health Manager

Promotion
Committee
of Safety and
HealthForemanTraffic Safety Education
As an enterprise reluted to the automobile industry, the NOKgroup sets a traffic safety management policy every year
and carries out programs accordingly to educate employees

Operator

to follow the traffic rules and eliminate traffic accidents andWork Chief

violations.

Lost Time Injury Frequency Rate*1
1.2
1.0

1.00

0.94

1.06

1.06

Lost Time Injury Severity Rate*2
1.15

0.10

0

0.09
0.07
0.06

0.06

0.6

0.2

0.10

0.08

0.8

0.4

0.10

0.46
0.22

0.45

0.23

0.04
0.22

0.014

0.02
0.0004

2012

2013

2014

■ National average among manufacturers

2015

0

2016 (FY)■ NOK group

2012

2013

0.007
2014

■ National average among manufacturers

0.003

0.000320152016 (FY)■ NOK group*1 Lost time injury frequency rate: The number of deaths and injuries from workplace accidents per million hours worked. It represents the frequency of accidents.
*2 Lost time injury severity rate: The number of lost work days per thousand hours worked. It represents the gravity of accidents.
Scope of coverage: The figures for the NOK group refer to four companies: NOK, NIPPON MEKTRON, NOK KLUEBER and UNIMATEC.

33

Third-Party Opinion on CSR Report 2017
Mr. Masatoshi Ikari

Manager, Senior Consultant
CSR & Environmental Sec., Risk Management Dept. 3rd
InterRisk Research Institute & Consulting, Inc.
MS&AD Insurance GroupPart-time Teacher, Seikei University

NOK published its first Environmental Report in 2004 andhas issued it since then, although the title was changed toEnvironmental & Social Report in 2006. The contents wererevised prior to the 2017 issue, and it became a CSR Report .
I have thoroughly reviewed the report and herein provide my
opinions as a third party.

Commendable Points●First, NOK’s report has evolved. It started as an environmental report,(poverty, immigrants), latest trends in Japan and abroad (ADAS, AI) andexpanded into an environmental and social report, and is now a CSR

environmental issues (climate change). This declaration can be interpreted

report that encompasses governance and other wide spectrums of non-as the company’s intention of resolving social and environmental

financial information. As in many developed countries, investors in Japanproblems through its core business. This is an expression of the NOKgroup’s stance on CSR, which was evident even before the CSR Report

are increasingly inclined to assess the corporate value in ESG* aspects,

2017 was published.

and I hope that future reports will integrate business activities with●In the Environment part of the report, I’d like to highlight the inclusion of

corporate social responsibility even further.

●In view of the core subjects specified by the international CSR standard

satellite companies (production subsidiaries) in the scope of environmental

ISO26000, this report consists of three parts: Strategy & Management,

management, and the implementation of the PDCA cycle to reduce theEnvironment and Society. Many photographs and charts are contained to

impact on the environment. I recommend that future issues of the reportmake the report easier to read and understand.

describe activities in the procurement supply chain in accordance withthe first item in the Principles of Corporate Behavior, Provide Socially

suppliers.

●The message from the president declares renewed commitment toitem 9 of the CSR Procurement Guidelines, Sharing awareness with

Beneficial Products , while mentioning social problems faced by the world*ESG: Environmental, Social and Governance

Opportunities for Improvement●Naming examples of the development of products with environmental

employees of NVCC in China. However, I recommend that future issues

considerations as set forth in the Basic Policies on Environmental

focus more on customers as important stakeholders. For example, it

Conservation, the report mentions fuel cell components to support ashould describe their opinions on the environmental and quality aspects ofhydrogen society and technologies that contribute to fuel efficiency.

NOK products, or show how customers interact with NOK representatives.

These can be regarded an embodiment of the first Principle of Corporate●Another concept emphasized in the report is implementing the

to fulfill “aggressive” CSR that contributes to enhancing corporate value

page titled “Relations with Employees” lists various efforts in thisBehavior, Provide Socially Beneficial Products , and as an action taken

management spirit that respects human dignity . Specifically, thewhile helping to resolve environmental problems. However, the report

regard. However, I recommend that the ways in which the company is(except for the message from the president) fails to convey this important

implementing the management spirit that respects human dignity in its

information to readers effectively. I expect there should be easier

operations should be conveyed to readers more objectively. For example,

explanations and effective communication of the concept of aggressive

this may be done by providing figures (data) on the average years ofCSR.

service (or turnover rate), the rate of annual paid holidays taken, or the●The report repeatedly shows how NOK values communication withhealth checkup rate for employees.

stakeholders, even including the voices of stakeholders, such as

Response to Third-Party Opinion
Noriyuki Takahashi

Senior Operating Officer andManager of Corporate Administration Office
Chair of the CSR Committee

We highly appreciate the valuable opinions we have received.

group seeks to respect human dignity under its Management Principles and

The NOK group's annual environmental report, which was titled theto make all of our stakeholders proud to associate with us.

Environmental & Social Report until 2016, has been renamed the CSR

We are planning to apply the recommendations in the Opportunities for

Report this year to make it more worthwhile to read.

Improvement section to our future reports.

After reviewing the opinions provided by Mr. Ikari, I read the report again.

We will continue CSR activities in a manner that will make our stakeholders

It renewed my awareness that CSR has always been incorporated into ourproud.

business operations and particularly meaningful to us because the NOK

34

Company ProﬁleCompany Name： NOK CORPORATIONHead Oﬃce :1-12-15 Shiba Daimon, Minato-ku, Tokyo 105-8585, Japan

Established :December 2, 1939

Capital :23,225 million yen

Business Details : Manufacture, purchase, import and sale of seals, industrial functional parts, hydraulicand pneumatic equipment, plant machinery, synthetic chemical products, electronic
products and various other products; and the provision of associated services such as
installation of machinery and devices

Contact●About the CSR report in general：
Corporate Communication Dept., Corporate Planning Oﬃce, NOK CORPORATION
1-12-15 Shiba Daimon, Minato-ku, Tokyo 105-8585, Japan
TEL: +81-3-3434-1736 FAX: +81-3-3436-5874●About the Environment part of the report：
Environmental Control Dept., Corporate Quality Control Oﬃce, NOK CORPORATION
4-3-1 Tsujido-Shinmachi, Fujisawa City, Kanagawa 251-0042, Japan
TEL: +81-466-35-4612 FAX: +81-466-35-4299©NOK CORPORATION. No part of this report, including any text, photograph and illustration contained herein,
may be reprinted or reproduced without prior permission of NOK CORPORATION.