1-1, 2-chome, Higashikotari, Nagaokakyo-shi, Kyoto 617-8585 Japan
Tel: +81-(0)75-956-8622 Fax: +81-(0)75-955-0480 URL: http://www.nmf.co.jp/en/

Head Office, Kyoto Plant, Shiga Plant

2 0 1 7

Environmental Policies & Organizational Structure

Message from the President

Environmental Policies

Organizational Structure

Environmental Philosophy
We shall seek to preserve the global environment with an international perspective throughsound corporate operations while contributing to the ongoing development of local communities.

On the Publication of the 2017 Environmental Report

Environmental Policies
Hideaki Ninomiya
President

One of our management policies is to advocate for the preservation of the global environment with an international viewpoint
through sound corporate operations while contributing to the continuous development of local communities. By providing
eco-friendly products to markets around the world, we are contributing to the harmonious preservation of the global
environment.
ESG performance—the application of environmental, social, and governance (ESG) criteria—is becoming an increasingly
important investment issue. Corporate environmental initiatives were until recently considered in the same light as 5S practices
for lean manufacturing or additional plant investment that did not link directly to profit. This is an outmoded idea of investment,
as today a company’s environmental approach is seen not only as a principle but also as a practical matter.
Environmental initiatives are always a part of business planning and activities based on management policy. Carrying out work
efficiently and according to a plan while eliminating wastage and nonuniformity through a focus on improving quality can saveenergy and resources and reduce waste, which will have a positive effect on business performance.
Looking ahead, we plan to incorporate an environmental perspective into the implementation of all business processes, fromthe contracting of orders and procurement to design and development, manufacturing, and administration. In that way we pay
attention to protecting the global environment hand in hand with carrying out business operations.
In October 2017 we will carry out a business merger with UniCarriers Corporation. The synergy should amplify the strength of
our core business. In line with this development, we aim to continue adapting and moving forward with environmental initiatives.
This Environmental Report 2017 is how we can present to customers and all who have supported the Group ineasy-to-understand language the environmental initiatives that were taken by our Kyoto Plant and Shiga Plant in fiscal 2016.

Mitsubishi Nichiyu Forklift Co., Ltd. and its affiliates are committed to proactively implementing
the following environmental policies through our business operations, which encompass thedevelopment, manufacture, sales, and servicing of forklifts and other industrial vehicles,
distribution systems, and logistics products. In keeping with our environmental philosophy, we
aim to reduce the environmental impact of our business on a sustainable basis while
improving the circumstances of society through our business operations.
1. We recognize that preserving the environment and maintaining harmony with the global ecosystem
are among the most important management issues, and we shall continue to systematicallypromote environmental initiatives through our business operations.
2. Under our environmental management system, we shall strive to control environmental pollution andpromote environmental preservation activities by accurately monitoring the environment impact ofour business operations.
3. We shall strictly comply with all environmental laws, regulations, and ordinances as well as all
agreements and other requirements to which we are party; adopt voluntary standards; and takes
steps to preserve the environment.
4. In acknowledging the environmental impact of our business operations, we shall adopt the following
important initiatives.
(1) We shall manufacture eco-friendly products.
(2) We shall reduce, recycle, and properly dispose of all industrial waste resulting from our business operations.
(3) We shall become more efficient and reduce our consumption of raw materials, fuel, and energy, and weshall promote environmental preservation in our manufacturing activities.
(4) We shall improve the transportation efficiency of our product and parts distribution, reduce the use of
packing materials, and decrease our environmental load.

5. We shall implement in-house training sessions and awareness campaigns to inform all our employees
and trading partners of our environmental policies and shall disclose them to the public.
In order to implement the above environmental policies, we shall establish environmental goals and targets within
our technical and economic scope and periodically review our progress. We shall remain committed tocontinuously improving our environmental management system and environmental performance.

Kyoto Plant

Shiga Plant

Location: 1-1, 2-chome, Higashikotari, Nagaokakyo-shi, Kyoto, Japan
Start of operation: 1940
Employees: Approx. 860 (including partner companies)
Site area: 44,509 m 2
Principal products: Forklifts

Location: 8-1, Nishioiso, Azuchi-cho, Omihachiman-shi, Shiga, Japan
Start of operation: 1991
Employees: Approx. 360 (including partner companies)
Site area: 68,794 m 2
Principal products: Automated guided vehicle systems; automatedstorage systems; rack forks; monorail workshop
trucks; bogie wheels; winders; forklift components

Internal
Auditor

Legal Manager

Manager of theEnvironmental
Management
SystemEMS Office(Quality Assurance
Division)

SpecialEnvironmental
Group

Chairman of
the Special
Environmental
Group

Environmental
Preservation Group
Environmental
Products Group
Energy EfficiencyGroup

The various
divisions

Logistics andPacking GroupCO2 Emissions

We decreased our overall volume of burnable waste through periodic patrols
and by seeking the cooperation of our various workplaces. We are looking
to further reduce such waste by reexamining sorting rules and other steps
aimed at improving our recycling rate.
Tonnes
50

Shiga

Kyoto

We upgraded our fuel-oil-fired heating units to electric air conditioners, adopted
LEDs for plant illumination, fixed air leakages, and performed other facility upgrades.
However, CO2 emissions rose at both the Kyoto and Shiga Plants year-on-year due
to the introduction of air conditioning for summertime and additional air conditioning
use due to increased production and temperature variability.
Tonnes-CO2
6000

Shiga

Kyoto

4000
25
2000
0

2012

2013

2014

2015

0

2016

Electricity Consumption

2012

2013

2014

2015

2016

City Water Consumption

We took various measures at our Kyoto and Shiga Plants, such as introducing a “Cool Biz” casualsummer dress code, reducing labor, and upgrading facilities. However, the introduction of electric
air conditioners for summertime and additional air conditioning use due to increased production
and temperature variability led to increased power consumption year-on-year at both plants.

Increased production and the effects of water leakages increased water
consumption over the previous year. Sound sensors were introduced todetect water leakages that could then be fixed.

1,000 kWh
8000

1,000 m3
40

Shiga

Kyoto

6000

30

4000

20

2000

10

0

2

Environmental
Management
Committee

Environmental Initiatives
Burnable Waste(domestic solid waste) Generated

Outline of the Kyoto Plant and Shiga Plant

Director of theEnvironmental
Management
Committee

2012

2013

2014

2015

2016

0

Shiga

Kyoto

2012

2013

2014

2015

2016

3

2 0 1 7

Environmental Initiatives

Compliance with Laws and Ordinances

Summary of Environmental Impact (Fiscal 2016)

INPUTOUTPUT
Kyoto Plant

Electricity

Noise

Odor

We undertake periodic noise measurements at the side boundary.
Plant

Shiga Plant

CO2

6,350,000 kWh 4,500,000 kWh

Kyoto Plant

Shiga Plant

4,522 t4,270 tMeasured Item

Kyoto

Noise

Shiga

Noise

Unit

Regulated Value Observed Value

dB
dB
dB
dB

8:00–18:00
18:00–22:00
8:00–18:00
18:00–22:00

We undertake periodic odor measurements at the side boundary.

62
53
58
41

70
60
70
70

Measurement dates: February 2, 2017 (Kyoto) and December 5, 2016 (Shiga)

City Gas

563,000 m 34,000 m 3

LNG

—

503 t

Bunker A

0 kL

227 kL

City Water

31,000 m 3

ChemicalSubstances

MITSUBISHINICHIYUFORKLIFT
CO., LTD.

59 t

19.6 tGeneralWaste

16.5 t0.48 tIndustrial Waste

575 t

239 t

ChemicalSubstances

11,000 m 3

Kyoto
22.9 t—(transferred under PRTR)

Shiga

Targets and Results
Environmental Targets (Fiscal 2014–2016)
Positioning of environmental initiatives among our business operations• To enhance our plans to implement an environmental management system in each of our divisions• To assign and train individuals to promote our environmental management systems in each division• To ensure compliance with environmental laws
Developing and supplying products that can lead to savings in energy and resources• To improve energy efficiency • To improve the recycling rate
• To modify our management system to achieve Design for Environment (DfE) goals

Implementing green procurement• To establish a system for managing chemical substances contained in our products• To strengthen our response to REACH regulations• To strengthen our support of business partners• To specify and implement green procurement in our selection criteria for suppliers

Shiga

TolueneXyleneRegulated Value Observed Value

10
1
10
1

Less than 0.5
Less than 0.5
Less than 1Less than 0.1

Unit

Regulated Value Observed Value

mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L
mg/L

5–9
600
600
5
2
6–8.5
40
40
90
12
1

7.1
2.3
6.5
Less than 0.5
Less than 0.2
7.2
3
3.8
1.6
2.8
Less than 0.1

We periodically undertake measurement of the concentrations ofparticulates in the atmosphere around warm air heating units. We alsomeasure for hazardous substances as stipulated under Kyoto prefecturalordinances.
Plant

Kyoto
Shiga

Measured Item

Unit

Regulated Value Observed Value

Warm air heating Particulate g/m 3N
unit (city gas) NOx
ppm
Particulate g/m 3N
Warm airm 3N/hheating unit SOx
ppm
NOx

0.10
150
0.20
1.2
180

Less than 0.001
67
0.072
0.054
72

Measurement dates: January 10, 2017 (Kyoto) and February 14, 2017 (Shiga)

Measurement dates: January 30, 2017 (Kyoto) and February 14, 2017 (Shiga)

Results for Fiscal 2016

Evaluation

To upgrade a system for promoting EMS implementation to maintain ISO 14001 certification

Targets for Fiscal 2016

Along with a revision of standards, we conducted internal audits and a management review.

○

To convert special group activities into primary tasks in preparation for restructuring the special environmental group

Targets (plans) set by the special group were implemented as environmental activities by thedivisions, but a gap existed among divisions and there was room for improvement.

×To create a visualization of reducing environmental impact by reducing waste associated with defective products

Parts costs within claim costs (excluding overseas) were lower than in the second half of fiscal 2015.

○

To implement and establish life cycle assessment (LCA) and life cycle inventory (LCI) analysis based on the ISO 14040 standard

Company standards for product assessments were revised and LCI analyses continue to be carried out.

○

To find alternatives to replace specified chemical substances

We decided on target models and implemented replacements.

○

On Aug. 4 and Nov. 8, seminars were held for our business partners on our chemical substances in products surveys.

○

At present, there have been submissions of “declarations of non-use and non-inclusion of banned
substances” from all business partners for whom submission is required.

○

The substance survey response exceeded the target value.

○

Shiga Plant: Achieved zero emissions (recycled rate was 99.7%);
Kyoto Plant: Not achieved zero emissions (recycled rate was 97.3%)

×Periodic patrols were conducted, raising environmental awareness (4 times annually at each plant).

○

We will continue to conduct periodically.

To promote environmental impact reductions at business partners
To strengthen measures regarding chemical substances contained in our products

Supplement to the Evaluation
Shift to the 2015 version of the ISO standards in fiscal 2017.

We will continue supporting investigation of chemical substances in products for our business
partners.

Achieving zero emissions (a minimum recycling rate of 99%)
• To draft and implement a plan to achieve a 99% recycling rate
• To reduce our emissions of general waste• To thoroughly sort all our solid waste• To limit our purchases of materials (including office supplies) in the interests ofresource conservation

To achieve a 99%+ target recycling rate at the Kyoto Plant and maintain a 99% rate at the Shiga Plant

To boost the green purchasing rate for office goods by 5% over fiscal 2015
Criteria: value base after changing Net-based supplier (average, Oct. – Dec. 2015)

Awareness of green purchasing increased, but the purchasing rate fell below targets.

×

There are issues with aggregation methods, etc.

Promoting environmental awareness• To create and implement a quantitative evaluation system that includes suchfactors as participation rate
• To actively participate in community initiatives

To carry out environmental activities outside the company

A system was created to facilitate participation in external environmental activities.

○

We will implement starting in fiscal 2017.

To establish zero waste campaigns twice a year in Kyoto, once a year in Shiga

Kyoto Plant: held on May 26 and Oct. 12
Shiga Plant: held on May 24○

Reducing CO2 emissions and energy consumption by 1% each compared with the preceding year
• To streamline energy consumption according to the terms of the Energy Saving Act• To adopt and implement priority initiative themes for each division• To adopt and set a goal for an appropriate energy intensity• To increase the efficiency of our operations in our normal work routine• To institute environmental investments (by introducing the concept of environmental accounting)• To compile and utilize data on our energy consumption• To stabilize the operation of our lines by adopting TPM

To reduce energy consumption by 1% year-on-year

Compared to results for preceding year: Kyoto Plant: Increased by 8% Shiga Plant: Increased by 2%

×We improved facilities, but the air conditioning load rose due to increased production and temperature variability.

To reduce CO2 emissions by 1% year-on-year

Compared to results for preceding year: Kyoto Plant: Increased by 13% Shiga Plant: Increased by 8%

×

We improved facilities, but the air conditioning load rose due to increased production and temperature variability.

To quantify CO2 reductions for the energy-saving activities of every division, especially for the production section’s labor
reductions (To create a “mechanism” by which numerical values are aggregated and reported periodically)

CO2 reductions were quantified for the production section’s labor reductions.

○

We created a visualization of the contribution to the environment from labor reduction.

To implement energy-saving facilities investment

Planned facilities investment was completed and CO2 emissions were calculated.
Energy consumption was streamlined according to the terms of the Energy Saving Act.

○

LEDs adopted for some lighting fixtures in the Shiga Plant. Air leakages were fixed.
Energy conversion from fuel oil to city gas or electricity

Regarding buffer material and corrugated cardboard used in parts shipments, to maintain last year’s standard with anintensity level relative to our sales volume of parts shipped (less than 0.054%)

0.0523%○

We will proceed with inspections and correction of excessive packing.

Regarding packing materials related to product shipments, to reduce the intensity level relative to the amount shipped by
10% (less than 0.46 kg/unit)

0.414 kg/unit○

To reduce use of other company’s pallets (through measurement of waste pallet costs) and improve the returnable crate rate
(5% year-on-year reduction per production unit) Intensity level: ¥23.75/unit

Excluding the effects of shifting the production of a specific model to the Kyoto Plant that had
not been anticipated at the beginning of the term, for Term 116 there was a 10% reduction to¥22.4/unit.

○

To improve the reuse rate for packing materials used for parts shipments. (Generated at Kyoto/Shiga → used for parts
shipments) (Target for Term 116: 500 kg/month on average)

The reuse of packing materials for parts shipments averaged 515 kg/month.

○

To implement measures that improve the returnable crate rate

We promoted the use of special pallets for limited models. In the future we plan to scale out thisapproach to other models.

○

Improving our energy and resource intensity regarding the transportation of products
and parts• To adopt and set goals for an appropriate energy intensity• To reduce the amount of solid waste generated through shipping and receiving• To reduce the energy consumed due to shipping and receiving

4

Measured ItempH
Biochemical oxygen demand (BOD)
Suspended solids (SS)N-hexane extracts
Zinc
pH
Biochemical oxygen demand (BOD)
Chemical oxygen demand (COD)
Suspended solids (SS)
NitrogenPhosphorus

Kyoto

Unit

ppm
ppm
ppm
ppm

Atmosphere

At the Shiga Plant, we established a wastewater treatment tank facility
and ensured that any water from sewage and processes is purified before
being discharged from the plant. This purified water is discharged into
tributary waterways of neighboring rivers. At the Kyoto Plant, drainage
water is discharged into the drainage system after proper treatment.
Plant

Measured Item

TolueneXyleneMeasurement dates: March 13, 2017 (Kyoto) and November 11, 2016 (Shiga)

Water Quality(emissions under PRTR)

Plant

We will look into reducing the weight of packing material for specified models and use of
returnable pallets.

The listing of current returnable crates will be used for changed models next time.
Use of returnable crates for winder rolls (eliminating about 4 tonnes of wood chips)

5

2 0 1 7

Initiatives of the Special Environmental Group
Environmental Products Group
Fuel Cell Forklift

Diesel Engine Forklift for North America 7.0 t

We have developed a fuel cell forklift, taking into accountenvironmental issues and the coming of a hydrogen-basedsociety. A prototype was presented at the Logis-Tech Tokyo
international trade show for material handling in September 2016.

This model has an engine that passes Stage IV and Tier 4
Final*1 diesel emissions limits for Europe and North America,
respectively. The engine used to meet previous limits*2 was
improved with high-pressure fuel injection and a multi-valve
design, and in place of a DPF*3 aftertreatment device aurea-based SCR*4 system was adopted. This system maintains
performance and low fuel consumption without increasing
emissions of other regulated substances, thereby reducing NOx
emissions by approximately 88%. (See Table 2 for comparison
to previous limits)

1. Fuel Cell Unit
(1) A fuel cell is a power-generating apparatus that produces electrical energy
from the electrochemical reaction of hydrogen and oxygen—the hydrogenfrom a storage tank in contact with the oxygen in the air. The only
byproduct of the power generation is water. Because no greenhouse gases
or environmental pollutants are emitted, it is considered environmentallyclean. A fuel cell unit consists of a fuel cell stack, lithium-ion battery,
control unit, cooling system, hydrogen tank, and additional weights.
Integrated into the unit, it can replace the lead battery used inbattery-powered forklifts. (See Fig. 1) This allows fuel cells to be used inexisting battery-powered forklifts to easily convert them into fuel cell
forklifts. Plus, the lithium-ion battery built into the fuel cell unit can
instantaneously transfer high current in and out to improve the forklift’s
acceleration and help recover power through a regenerative braking
system.
(Joint development with Plug Power and Yamato H2Energy Japan)

Previous
limit

Current
limit

COEuropeStage IIIB

North
AmericaTier 4 Interim

EuropeStage IV

North
AmericaTier 4 Final

HC

PM

NOx

0.19

5.0

0.025

3.3

0.020

0.19

5.0

0.4
88% reduction

Urea water (NH3)
Oxidation catalyst

HC(Hydrocarbon)

Detoxification

0.020

Detoxification
H2O(Water)

NOx
CO

0.025

SCR Oxidation
catalyst catalyst(Nitrogen oxide)(Carbon monoxide)*1 EU Stage IV (EC Directive), Tier 4 Final (U.S. EPA/CARB)*2 EU Stage IIIB (EC Directive), Tier 4 Interim (U.S. EPA/CARB)*3 Diesel Particulate Filter*4 Selective Catalytic Reduction (See Fig. 2)

N2(Nitrogen)
Detoxification

Fig. 2 Efficacy of urea SCR system

Driverless Forklift

2. Features of the Fuel Cell Forklift

Lead battery

Fuel cell unit

Fig. 1 Replacement with a fuel cell unit

“Platter Auto” is our newly developed laser-guided driverless
forklift. The system employs reflective plates on the walls for
self-positioning, which eliminates the need to bury magnetic
guides in the floor, a requirement for magnetic guidancesystems. Also, the driverless forklift does not kick up dust,
thereby improving the work environment. It also incorporates aRoute Optimizer, which is a new multi-truck movement control
system that uses our Group’s proprietary algorithms toautomatically select the optimal truck allocation andconveyance route to improve work efficiency and save energy.

Table 1 Fuel cell unit specifications
I/O

Continuous output

11 kW

Maximum output

58 kW

System voltage

Hydrogen

Product details

48 V

Filling pressure

35 MPaCarrying capacity

1.2 kg（60 L）

Filling time

3 min

Type

Lead battery replacement typeSize

710 mm L × 980 mm W × 578 mm H

WeightOther1089 kg
Hybrid system with built-in lithium-ion battery

Forklift Operation Management
SystemForklift operational data (obtained from sensors and aController Area Network (CAN)) are wirelessly transmitted toand managed on a cloud server to allow operational status tobe visualized and information to be shared, thereby improving
safety, boosting productivity, and reducing accident rates. The
forklift utilization rate is also boosted, leading to energy savings.
Efficiency is also increased across multiple operational fields bylinking the data to production and delivery systems, reducing
environmental impact.

Customer
Mitsubishi
NichiyuWeb
serverInternet

Viewable on the Web
Forklift operation
Risky operation
management
Battery management

Wired LAN
Accesspoint

M2M router

3G line
Wi-Fi
Keypadcontrol
CAN linkage

6

Limits（g/kWh）Standard

By not employing a DPF aftertreatment device, there is no needfor additional fuel injection to recover the accumulated soot,and no need for periodic ash removal. The improved engine
reduces CO2 emissions, curtails industrial waste, and reduces
maintenance costs.

(2) The main specifications of the fuel cell unit are shown in Table 1.

(1) Improved work efficiency① Refueling in about 3 minutes (hydrogen filling), enabling continuous
operation.
② No need for maintenance as required by a lead battery, or for battery
replacement to operate continuously.
③ Output does not decline when reaching the end of a discharge as witha battery-powered forklift (the “drooping characteristic” of a leadbattery).
(2) A more comfortable work environment① Not one ounce of CO2 or exhaust gas is emitted during operation. Also,in a well-to-wheel analysis, in the generation of hydrogen there is muchless reliance on fossil fuels compared to electricity, giving the fuel cell
forklift a superior environmental rating than a battery-powered forklift.
② Since there is no engine-like drive, there is less vibration and noise.
③ Customers who have had to change batteries no longer need to handle
such heavy items. (Improved safety)(3) Better warehousing efficiency① The fuel cell forklift can be refueled in a few minutes; no spare batteriesor spare battery chargers need to be kept, so no storage space orspace for charging batteries is required.
(4) External power supply feature① With the special built-in inverter circuitry, it is possible to supply power
externally (100 VAC), so in times of emergency it can serve as aportable emergency power source.

Table 2 Emission limits

RS-232C
connection
Keypadcontrol
DLU

Authentication
card key(optional)7

2 0 1 7

Initiatives of the Special Environmental Group
Logistics and Packing Group

Energy Efficiency Group

1. Our Modal Shift

Conversion to LED Lighting at Shiga Plant

Kyoto Plant Air Leakages Fixed

Energy Conversion from Fuel Oil

We have affected a modal shift in our use of ferries andtractor-trailers for delivery transportation. Up until mid-2016, a
truck would be loaded with products and driven onto a ferry.
Now, we are using a tractor-trailer and detaching the tractor at
the port, loading only the trailer and container with products
onto the ferry to be transported. With this improved
transportation method we increased the number of truckloads,
dropping the vehicle weight per product from about 7 tonnes toabout 2 tonnes, thereby greatly reducing CO2 emissions.

We upgraded mercury lamps to LED lamps for 195 lighting
fixtures in the Shiga Plant. The shift to LED fixtures with theirhigh luminous efficiency reduced CO2 emissions by
63 tonnes/year.

Air leakage sounds were investigated on days when the plant
was not in operation and 95 air leakage locations were repaired.
The lower compressor output thus required helped to reduce
CO2 emissions by 55 tonnes/year.

The five fuel-oil-fired heating units of Assembling Factory No. 1
were replaced with electric air conditioners. The more efficientelectric heat pump system reduced CO2 emissions by
130 tonnes/year.

2. Returnable Pallets
We began discussing with ourpartner companies the mostefficient way to return the fork
unit delivery pallets that werepreviously discarded becauseof no available return route.
Now close to 500 pallets a
year are reused, eliminating
about 3 tonnes of waste
wood chips.

Environmental Preservation
Pallets made returnable

3. Use of Returnable Crates
At the Shiga Plant, we produce winders and unwinders forhigh-performance film. Multiple long rolls are used in such
equipment, and previously the rolls were packed in discardable
wooden crates for delivery by our partner company. In
negotiation with our partner, we changed the configuration to
make the wooden crates reusable. This effort now saves about
4 tonnes of waste wood chips annually.

Group

1. Environmental Patrols

2. The “Zero Waste” Campaign

At the Kyoto and Shiga Plants we have been engaged in
reducing waste for many years. But there is still room for
improvement in individual workplaces. We therefore set up
quarterly environmental patrols that focus on checking if waste
is sorted properly. The patrol works with each workplace tofind better solutions and year by year the amount of waste is
gradually being reduced.

Twice a year we carry out cleanup activities around both the
Kyoto and Shiga Plants as a way of expressing our gratitude to
the areas’ residents. By participating in such activities tobenefit local residents, environmental awareness is raisedamong our employees. We plan to continue with such efforts
that involve the local community.

3. The 3 Rs—Reduce, Reuse
and Recycle
On our in-house website we set up a new “3 Rs Corner” inwhich new information is posted on a regular basis. Such
postings include classified ads, such as “Giving away a cabinet.
Contact M. Tanaka by Friday,” or “Looking for a desk.” Thecorner becomes a kind of bridge between workplaces, where
unneeded items that would ordinarily be thrown away are given
away to others working at the company who have a use forthem. This helps to reduce waste, and can help the company
to save money both to dispose of an item or to replace it.
Use of returnable crates
8

Environmental patrol

Zero Waste Campaign at the Kyoto Plant

Zero Waste Campaign at the Shiga Plant“I need a rack”“We haveextra racks”

Section A

Section B“Does anyone
want some file
folders?”“I'd like thosefolders”

Section C

Section D
9

1

2

3

4

① Cooperating with Blood Donation Drives

Relationship with
the Community

Environmental
Management Systems

Environmental Impact
Reduction Initiatives① Participating in the Nagaokakyo City’s
Environmental Fair

① Environmental Audits① Participating in the “Light-Down Campaign”
Targeting Reduced CO2 Emissions

According to the Environmental City
Declaration of Nagaokakyo, the city’senvironmental fair is held annuallywith the aim of raising theenvironmental
awarenessofmembers of the public regarding
prevention of global warming. In
fiscal 2016, this event was held at
the Nagaokakyo City Central
Community Hall on November 19.
On that day, a variety of hands-on
workshops and exhibits intended toincrease public knowledge of
specific environmental issues were
set up and agricultural products were also available for purchase. As
Nagaokakyo City is home to the head office of our company, we exhibited adisplay of information on our environmental initiatives.

② Forest Volunteer Program
We participated in the Nishiyama Forest Volunteer program hosted by the
Association for Promoting Forest Improvement of the Nishiyama Forest. Thisannual initiative is intended to raise awareness of the Nishiyama Forest
improvement project. As a volunteer program, it encourages citizens andenterprises to collaborate in promoting forest management to preserve thewater and greenery of Nishiyama.
In fiscal 2016, this initiative was held on October 22, with the participationof our employee volunteers who helped to thin the overgrown forest andprune trees around the Nishiyama campground.

By conducting internal audits twice yearly and undergoing an annual audit
by external auditors from the certification organization, we confirm that our
ISO certifications—which cover the maintenance and improvement of ourenvironmental management system and the adoption of continuous
improvements—are being used effectively as tools for business
improvement.

② Implementing Training Related to Fiscal 2015
Revision of ISO Standards
Internal auditor workshops were held in four groupings from September
through October, aimed at those within the company qualified as internal
auditors for the purpose of accommodating the fiscal 2015 revision of the
ISO standards.

③ Internal Auditor Training
To increase the number of internal auditors, we held a three-day
professional training session on February 8–10 to train QMS/EMS internal
auditors.

We participated in the “Light-Down Campaign” sponsored by Japan’s
Ministry of the Environment. For the “Summer Solstice Light-Down” onJune 21 and the “Cool Earth Day” on July 7, we encouraged employees toleave the office by 19:00. Moreover, incentives were offered at our Kyoto
Plant for global warming countermeasures while our Shiga Plant
encouraged employees to leave the office by 20:00, excluding thoselocations that have adopted a flextime policy.

Although we appropriately store andmanage polychlorinated biphenyl(PCB) waste products in compliancewith related laws and ordinances, theneed exists to conduct detoxifying
treatment within a scheduled time
limit. We had been storing one
high-density PCB waste unit at the
Kyoto Plant, but in fiscal 2016 thetreatment was completed.

③ Green Curtain
As a summer power-saving andenergy-efficiency measure, a plant
known as bitter gourd wascultivated over the factory structureof the Kyoto Plant, creating a “green
curtain” to minimize the daily
temperature rise. In order toprepare soil for cultivation, we mixed
in fallen leaves collected from theplant grounds and composed.

④ Chemical Risk Assessment Internal Explanatory
Meeting Held

③ Participating in the Cleaning and Beautification
Initiatives of Neighboring Waterways
Every year at the beginning of July, Shiga Prefecture organizes a Lake Biwa
beautification activity with members of the local residents’ associations
engaging in a local cleanup campaign. On June 19, 2016, we participatedin a regional cleaning activity conducted by two neighboring residents’associations. Participants gathered at 8:00 a.m. and, having been assigned
to the waterways neighboring the Shiga Plant, all worked together tocollect the mud, sand, and waterweeds that had been deposited.

⑤ Confirmation of Local Industrial Waste Disposal
Responsibility for waste disposal lies with the company generating thewaste; therefore, we are even responsible for waste from operations thathas been contracted out to a waste disposal company. Every year, we
dispatch employees to visit the relevant sites to visually confirm that thewaste we generated is disposed of appropriately by our several waste
disposal companies.

A revision to the Industrial Safety and
Health Act now legally requires a risk
assessment of the specified chemical
substances contained in paints,
solvents, and other items handled in
the workplace. We therefore held
explanatory
meetings
targetingrelated in-house divisions on June 7
and 17. We will strive to implement
measures to reduce risks identified
through the risk assessments.

⑤ Seminars on Investigating Chemical Substancesin Products
As environmental activities gain more
recognition worldwide, it has become
necessary to maintain an environment
in which the chemical substances in
products are well managed andinformation is communicated properly.
As part of supply chain management,
we held seminars on August 4 andNovember 8 for business partners to
study chemical substances containedin products for a better understandingof environmental considerations.

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Contributing to
the Community

Every year, our Kyoto Plant and Shiga Plant participate in blood donation
drives in response to requests from the Blood Center of Japanese Red Cross
Society. In fiscal 2016, we welcomed the participation of a total 205 blood
donors at the Kyoto Plant and a total of 55 at the Shiga Plant. In the future,
we intend to continue participating in this endeavor as part of ourcontribution to society.

② Responding to the Issue of PCB Waste④ Emergency Preparedness
We launched an emergency preparedness initiative as a precautionary
measure to reduce the likelihood of accidents and emergencies. In
preparation for an emergency, we provide periodic emergency response
training in the workplaces whose facilities have the potential to greatly
impact the environment.

2 0 1 7② Opening of Regional Social Welfare Facilities
The Kyoto Plant rents out its
grounds in response to requests
from various groups such as Otokuni
Fire
Extinguishing
Technology
Meeting, the executive committee
for the Nagaokakyo Garasha Festival
and gateball (a type of croquet)competitions. In this way the plant is
helping to revitalize the region.

③ Providing Work Experience for Students from
Neighboring Junior High Schools
From June 6 to 9, we hosted fourjunior high school students fromschools in the Shiga Plant
neighborhood for work experience.
These students were introduced to
the Shiga Plant and were able todeepen their understanding of theoperations conducted on the
production site. We hope thisopportunity helps these students
make important decisions about
their future careers and their choiceof employer.

④ Cooperation with the Hakone Trust
We were a charity sponsor supporting the CAT Ladies Golf Tournament heldon August 19–21, 2016, setting up the venue for an “approach shot forcharity contest.” The charity funds gathered were donated to the Hakone
Town Resource Maintenance Foundation (Hakone Trust) for the protectionof the natural environment and cultural assets of Hakone, a town
designated as a national park.

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