E: Environment【Environmental Efforts】<Piolax Global Environmental Policy>
The Piolax Group has updated the Global Environmental Policy. The new Environmental Policy refers to
our commitment to the SDGs, energy conservation in all of our business areas including medical device,compliance with environmental laws and regulations, and environmental protection, aiming to minimize
the impact of our corporate activities on the global environment.
Basic Policy
Through our business activities of developing, manufacturing, and selling our products based on ourcore technology of “elasticity,” the Piolax Group will pursue the realization of a “sustainable society” inwhich the environment, society, and economy are well balanced.
SloganWe aim for more balance and harmony with the environment.
Action Guideline
The Piolax Group will work on environmental protection and environmental pollution prevention in all
business areas while continuously improving our management systems and environmental
performance.
<Major Actions>①

Promote environmental improvement activities in line with the President’s policy.

②

Contribute to the Sustainable Development Goals (SDGs).

③

Make efficient use of energy and effective use of sustainable resources.

④

Practice 3R activities (Reduce, Reuse, and Recycle) for the recycling-oriented society.

⑤Comply with environmental laws and regulations and customer requirements.

⑥

Engage in environmental social contribution activities.

<International Certification for Global Environmental Management>
Piolax obtained the international certification ISO 14001 in April 2002, and now, our eight overseas have
ISO 14001:2015 certification.
Link (in this report): Organizations registered for international certification

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<Environmental Promotion System>
Individual Piolax offices and domestic subsidiaries have a meeting structure led by a person responsible
for environment and secretariat and operate an environmental management system in line with the ISO
14001:2015.
Environmental system in Japan
Head Office
Yokohama Technical Center
Promotion Headquarters
President
Chief Environmental
Management Officer
ISO Dept.

Higashi Totsuka Office

Piolax Kyushu
Piolax HFS
PNSMoka Plant

PMT

Fuji Plant
Shonan Logistic Center

Piolax Medical Devices

Nishi-Nihon Logistics Center
Nagoya Branch
Nishi-Nihon Branch<Compliance with Environmental Laws and Regulations>
The Piolax Group did not cause violations of laws or regulations, payments of fines or penalties, orleakages that may greatly affect the environment in the past three years. No environmental complaints
have been legally filed against us.
PCB (highly concentrated 4.16 kg) used in ballasts at the former Yokohama Technical Center, which was
dismantled in 2020, was disposed of as specially controlled industrial waste in FY2021 based on the Act
on Special Measures concerning Promotion of Proper Treatment of PCB Wastes.

<Major Environmental Issues>“Energy, emissions to the atmosphere,
and waste," mentioned in the materiality
analysis, are major environmental issuesof the Piolax Group. We will work on 3Rs(Reduce, Reuse, and Recycle) in ourbusiness activities and make efforts to
reduce greenhouse gas and waste in our
supply chain, mitigate and adapt toclimate change, and use water and otherresources efficiently. In March 2021, we disclosed a roadmap toward achieving carbon neutrality by
2050 in the domestic business domain.
Link (in this report): For greenhouse gas data, see environmental performance data.

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<Risks and Opportunities by Multiple Scenarios based on TCFD Recommendation
on Climate Change>
Piolax performs scenario analysis based on the recommendations of Task Force on Climate-related
Financial Disclosure (TCFD*1) and builds business strategies with multiple scenarios for climate change
projections. There are uncertainties in every scenario due to changes in various factors, but we believethat sustainable corporate management can be realized by identifying risks and opportunities in the
scenarios. Therefore, we clearly define strategy for the electrification of vehicles, develop infrastructure
to reinforce our resilience for fewer risks and more opportunities, and expand a lineup of products. The
following tables show our initiatives in the domestic business areas to address risks and opportunities.
For details, please refer to our website*2.
* 1 TCFD：Task Force on Climate-related Financial Disclosures* 2 https://www.piolax.co.jp/jp/csr/environment/environmental_tcfd/

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<Degree of impact>
Large: A failure to respond has a great impact on the survival and growth of the company and its businesses.
Medium: A failure to respond poses a limited impact and does not affect the survival and growth of the company andits businesses.

<Promotion of Energy Saving>
Piolax and its subsidiaries in Japan and overseas are working on energy saving in their plants andlogistics centers, introducing LED lighting and high-efficiency motors and inverter controls.

High-efficiency motor, inverter control compressor, cooling chiller

LED lighting in the premises<Conservation of Water Resources and Improvement of Drainage>
The Piolax Group recognizes that its corporate activities
affect upstream and downstream water resources. Water
withdrawal at all production bases in Japan and overseas ismonitored, and wastewater is treated and discharged incompliance with environmental assessment laws andregulations of each country.
At

Moka

Plant,

inresponsetotheestablishedenvironmental standard for nitrate nitrogen contained inwastewater

from

heat

treatment,

theconventional

acid-alkali wastewater treatment was replaced by biological

Moka Plant: biological denitrification
wastewater treatment

denitrification treatment, in which nitrogen compounds are
removed by the action of microorganisms.
This new facility contributes to environmental protection and biodiversity in the plant’s watershed(Kinugawa River system) and saves approximately 170 tons/day of water compared to the previous one,
thereby reducing the impact on water resources.
To minimize water withdrawal, our production bases are promoting initiatives such as saving circulatingwater. To verify water risk, the AQUEDUCT Water Risk Atlas is used. PIOLAX INDIA PRIVATE LTD.
(India), located in an area with a high Physical Risks Quantity, measures water consumption based on

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withdrawn water and discharged wastewater. PIOLAX MEXICANA S.A. de C.V. (Mexico) works tointroduce a water recycling system.
Link (in this report): For water intake data, see the environment performance data.

<Biodiversity>
The Piolax Group thinks that minimizing environmental impacts of its products and corporate activities is
the greatest contribution to biodiversity conservation and has set “contribution to the Sustainable
Development Goals (SDGs)” as one of the key themes of the Piolax Global Environmental Policy. To
address GHG emissions and pollutants, which are major causes of biodiversity loss, and to support a
recycling-based society, we are committed to economic use of energy, sustainable and effective use ofresources, and 3Rs, believing that waste and use of land and water also impact biodiversity.
For environmental impacts of our production bases in Japan and overseas on plants and animals interms of biodiversity, we started a survey in FY2021 using the Integrated Biodiversity Assessment Tool(IBAT). It is important to know environmental impacts in areas around our production bases referring to
the Red List species designated by the International Union for Conservation of Nature (IUCN).
Further, uniforms purchased by Piolax in FY2021 contribute to the Katingan Peatland Restoration andConservation Project*1 in Indonesia through Voluntary Carbon Unit (VCU) credits.
*1: Activities to conserve the Katingan Peatland in central Kalimantan and to protect rare animals inhabiting there<Disaster Risk Preparedness>
Moka Plant, Fuji Plant, Shonan Logistics Center, and Piolax Medical Devices have installed generators
as a measure to maintain basic functions of the facilities in case of a prolonged power failure caused bynatural disasters and climate change. They would mitigate the risk of a power failure supplying power toheat treatment lines and water supply/drainage system (Moka Plant), plant office and some production
shops (Fuji Plant), ordering system (Shonan Logistics Center), and sterilization rooms (Piolax Medical
Devices).
In response to the increasing flood risk in recent years, we try to identify potential flood risk at ourbusiness bases and surrounding areas referring to hazard maps. As a measure against flood disaster,Moka and Fuji Plants have installed regulating reservoirs.

Regulating reservoir

Generators

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<Efforts in Logistics Division>
As an effort to reduce greenhouse gas emissions generated during transporting our products, modal
shift transportation by ferry is introduced from our plants in the Honshu region to our customers in the
Chugoku and Kyushu regions.
We make devise to increase the number of products put in one packing box and one container and usehigh cube containers for export to reduce the total number of containers (transportation frequency).

[Monthly shipping volume]
Kanto → Kyushu: About 22,000 boxes (556 m3)
Kyushu → Kanto: About 5,600 boxes (190 m3)* Excluding empty boxes【Eco-friendly Products】<Efforts in Design and Development Divisions>
Survey of substances of concern
Yokohama Technical Center keeps abreast of revisions to laws, regulations, and customer requirements
related to substances of concern in relevant countries and create a database of such information, andmembers in development and production engineering divisions use it to provide safe products to ourcustomers.

Introduction of eco-friendly products
Yokohama Technical Center plays a central role in developing eco-friendly products. Our standards for
eco-friendly products include "lightweight, small number of components, integration of products, andselection of materials adaptable to a recycling-oriented society.”
Fuel system part: FLVV for high-pressure sealed fuel tank system in P-HEVThis product meets ultra-high flow rate requirements in releasing tank internalpressure of the high-pressure sealed fuel tank system in P-HEV. It has thefunctions of FLVV, ROV, and check valve, reducing the number of components
compared to the conventional system.

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Powertrain system part: Baffle plate for oil inflow prevention
This product reduces agitation resistance of gears which rotate immersed in the automatic transmission
fluid (ATF) and contributes to improve fuel efficiency of automobiles. To attach this product to thetransmission case, wire is used based on our analysis technology. To stabilize its behavior, spring
reaction force is applied without using bolts.

Baffle plateGear

ATF oilOpen & close mechanism part: Passenger compartment door latch
Utilizing our market experience, accumulated design know-how, and CAE, we have succeeded in
reducing the rod weight in the passenger compartment door latch. This product has already been
adopted in mass-produced vehicles and several models under development. It contributes to reducing
greenhouse gas emissions through the improvement of car fuel efficiency and the reduction of materials
used.

Rod
Rod

Lightweight rod: -17%

Fastener: Pipe fixing clips and waterproof plugs
Design and materials of pipe fixing clips and waterproof plugs are reviewed, achieving lower weight.
Pipe fixing clips literally hold multiple pipes under the vehicle floor or in the engine compartment.
Waterproof plugs prevent water from entering the cabin through holes in floor panels which were used as
paint drains in the painting process.
Lightweight waterproof plug: -30%

Lightweight piping clip: -67%

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【Environmental Performance Data】<Greenhouse Gases from Corporate Activities>
The Piolax Group collects data on greenhouse gases generated by corporate activities in its supply
chain in the following categories: direct emissions (Scope 1), indirect emissions from energy sources(electricity) (Scope 2), and other indirect emissions (Scope 3).
For direct emissions (Scope 1) and direct emission energy use, fuel consumption data from the use of
onsite and company vehicles are added since FY2021.
Scope 1 and Scope 2
Classification
Total emissions in the supply chain
Direct emissions (Gas, kerosene)
Indirect emissions (Electricity)

Scopes 1+2
Scope 1
Scope 2

2017
49,903
1,864
48,0392018
49,402
2,073
47,3292019
47,772
2,756
45,016(Unit: t-CO2)
2020
2021
42,94843,6842,559
3,008
40,38940,676

・Scope 1: Emission factors are calculated based on the Greenhouse Gas Emissions Calculation andReporting Manual (Ver. 4.8) and the Law Concerning the Rational Use of Energy.
・Scope 2: Emission factors are calculated based on location reference values.
Japan: National average factor = A value of general transmission and distribution companies otherthan Okinawa
Overseas: IGES, carbon footprint, climate transparency, UK government GHG conversion factors

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Scope 3
Category

Contents

FY2021

1

Purchased products and services

49,2462

Capital goods
Activities related to fuel and energy
not included in Scopes 1 and 2
Transportation and delivery(Upstream)

10,106(Unit: t-CO2)
Remarks
Materials procured: Piolax Group
Others: Excluding overseas bases
Equipment and mold investment: Piolax Group

5,780

Electricity, gas and kerosene: Piolax Group

1,277(Ton-kilometer method): Excluding overseas bases

3
45

Waste from business activities

266

6
7
8

Business trips
Employee commuting
Lease assets (Upstream)
Transportation and delivery(Downstream)
Processing of products soldUse of products sold
Disposal of products soldLease assets (Downstream)
Franchise
Investment

135
464
817

Industrial and general waste: Excluding overseas
bases
Excluding overseas bases
Excluding overseas bases
Contract warehouses for production plants in Japan

2,733(Ton-kilometer method): Excluding overseas bases

NA
NA
NA
53
NA
NA
70,877

Related but not calculated
Related but not calculated
Related but not calculated
1st floor of the Head Office
NA
NA

9
10
11
12
13
14
15
Total

・Scope 3: The basic guidelines on accounting for greenhouse gas emissions throughout the supply chain(Ver. 2.4) are referred to.
For emission factors in Japan, the emissions basic unit database (ver. 3.2) provided by the
Ministry of the Environment for calculating an organization’s greenhouse gas emissions
throughout its supply chain is referred to.
LCI database IDEAv2 (for calculating greenhouse gas emissions from the supply chain).
(Among purchased products in Category 1, data on domestic subsidiaries’ products included in
Scopes 1 and 2 was reviewed and deleted.)

Carbon neutrality targets and results of Piolax and its domestic subsidiaries
Medium-term target: Using FY 2019 as a benchmark, we aim to reduce Scope 1 and 2 emissions fromdomestic business areas by 46% by FY 2030. FY 2021 result was -10% compared to FY 2019.

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Medium-term environmental target and results
As the 7th environmental medium-term target, Piolax and its domestic subsidiaries have drawn up athree-year plan through FY2022 with FY 2019 as a benchmark, and work on environmental activities inaccordance with the carbon neutral roadmap.
Mid-term goal and results (Benchmark: FY2019)
FY2020 result
Indirect emissions (Scope 2)
Usage of indirect energy
Usage of indirect energy
per unit of production*
Waste

FY2021 result

-13%
-10%
+6%

-10%
-4%
+11%

FY2022
mid-term goal
-10%
-3%
-3%

-14%

-14%

-6%

*Usage per 1 million units used at production plants excluding Piolax Medical Devices and PMT.

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Approaches to renewable energy
PIOLAX LTD. in the U.K. has started to use renewable energy self-supplied by solar panels since 2017,
followed by PIOLAX (THAILAND) LTD. since 2020. Reduced geenhouse gas emissions in FY2021 were533 (t-CO2) compared to the market standard. PIOLAX LTD. (U.K.) plans to increase solar panel
generation in FY2022.
U.K.

ThailandApproaches to carbon offset
Piolax and its domestic subsidiaries purchase carbon-offset uniforms (work clothes). Carbon credits forthe purchase in FY2021 contribute to the Katang Peatland Restoration and Conservation Project inIndonesia through VCU (Voluntary Carbon Unit) credits.

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Water withdrawal data
The Piolax Group tracks water withdrawal data for water management. Water withdrawal in FY2021 wasreduced by 1% from the previous year. Third-party sources and renewable groundwater were used
about 50% each.
Water risks at all Piolax bases are verified using the Aqueduct Water Risk Atlas. Water withdrawal fromextremely high water stress areas in terms of physical risk quantity was 1,739 m3 for Piolax India Private
Limited (India) and 3,099 m3 for Piolax Mexicana S.A. de C.V. (Mexico), accounting for 1.6% of the
Piolax Group's total water withdrawal.

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