Index
President's Message for Stakeholders ···················································· ３
Our CSR ···························································································· ５Prosess for defining materiality and CSR targets····································· 8Management
・Corporate Governance ····································································· 16・Compliance ···················································································· 20
・Export controls ··············································································· 25
・Security Control /Information Security ··············································· 27
・Intellectual Property ········································································ 29
・Risk Management ··········································································· 31
With Our Customers
・Quality Policy and Implementation Structure ······································ 35
・Initiatives to Improve Quality ··························································· 40
・Communication to Customers··························································· 48
With Our Shareholders and Investors ··················································· 53
With Our Suppliers ············································································· 56
With Our Employees
・Policy for Human Resources ····························································· 62
・Respecting Diversity ········································································ 64
・Human Resource Development ························································· 71
・Human Rights and Labor ································································· 74
・Occupational Safety and Health Basic Policy ······································· 77
・Occupational Safety Activities ··························································· 82
・Health Promotion Activities ······························································ 87
With Local Comunities and International Society ···································· 88
For Environmental Protection
・Eco Vision 2020 ·············································································· 90
・Environmental Burdens from Business Activities ································· 94
・Environmental Management ····························································· 97
・Environmentally-friendly Products ····················································· 107
・Hazardous Chemical Substances ······················································· 109
・Global Warming ·············································································· 112
・Depletion of Resources ···································································· 116
・Environmental Communication ························································· 120
1

Third Party Review ················································································ 123

Detailed Information about CSR
Targets and Results of CSR Promotion Activities・126

Detailed Information about Environment
ISO 14001 Certified Locations ································································· 131
Environmental Accounting ······································································· 133
Editorial Policy
The CSR Report 2016 is edited with the intention of informing all of our various
stakeholders
about the CSR activities of the NGK SPARK PLUG Group.
This online version contains more detailed information than the digest version.
[Period covered]
From April 1, 2016 to March 31, 2017
Some other very recent activities and cases are also included.
[Organizations Covered]・ Social aspects: NGK SPARK PLUG CO., LTD.
However, this Report may also cover the activities of subsidiaries and affiliates
inside andoutside Japan. In such cases, specific company names are indicated.
・ Environmental aspects: NGK SPARK PLUG Group・ NGK SPARK PLUG CO., LTD.
・ 11 consolidated subsidiaries and one affiliate in Japan[Publishing Director]
Shinichi Odo
Representative Director and Chairman of the Board
Chief Executive Officer
President Officer[Editor in Chief]
Masaya Futamura
General Manager
Risk Management Department, Corporate Strategy Group[Published]
September 2017 (Publication of the next report is planned for October 2018)2

CSR＞President's Message for Stakeholders

President's Message for Stakeholders
In the year 2016, we, NGK SPARK PLUG CO., LTD. celebrated the 80th anniversary of its
founding. Since its establishment in 1936, we have been executing business operations alongwith economic development and sharp progress of motorization in Japan, keeping our
resolution of “contribution to Japanese culture” stated in the prospectus in mind.
What will become of global environment around us in the future?

Facing unpredictable

incidents and changes such as ever-changing politics and economy as well as sense of
insecurity about terrorism, large-scale disasters, and changes in natural environments, we may
be in danger of encountering social problems which will be more complicated and more severe.
Under these circumstances, as expectations for us as the globally developing company increase
more than ever, we recognize that our roles and responsibilities that should be fulfilled will also
become more significant.

With this view, we signed the UN Global Compact on November,

2016, manifesting our intention to promote various activities as “a member with good
conscience of society”.

We will try and do our best to make continuous growth to fulfill

responsibilities of the global company, and contribute to creation of a sustainable society in theworld.
An objective of our 7th medium-term management plan formulated in 2017 as the second year
is to provide all the stakeholders with “Real Value”. We will build the corporate governanceframework for improving corporate value along with positive communicating with stakeholders
and development of the business operations leading to social evolution.

Aiming at

prioritization of human “asset”, we will further lay the groundwork for fair corporate climate,
and the framework that encourages various personnel to be self-supportive, motivated, andgrown so that they feel a sense of accomplishment from working.

We will enhance thepresence of NGK SPARK PLUG CO., LTD. group that is trustworthy sufficient to be known as “thecompany indispensable to the society” by making efforts in an honest way so that we cancelebrate the 90th, furthermore, the 100th anniversary of foundation.
September, 2017
Shinichi Odo
Representative Director
Chairman of the Board
3

CSR＞Our CSR

Our CSRCSR Concept
We view CSR not just as a responsibility but as an opportunity to be accountable through reviewof the NGK SPARK PLUG's GROUP's economic, environmental and social activities from a global
perspective, to enhance corporate value, and to contribute to the sustainable development ofsociety in accordance with our Corporate Philosophy.

Our CSR activities are wide-ranging, and include the following:
Examples・Offering excellent products to customers
Disclosing corporate information to shareholders and the broader investor community in areadily understandable way as well as timely and appropriately manner
Collaborating with suppliers for mutual development
Establishing a safe and employee-friendly working environmentParticipating in and supporting activities in the local community
To provide our Group's action guidelines for fulfilling CSR, in April 2011 our CSR Policy wasestablished, which comprises 10 policies, such as the Compliance Policy and others. In line with
the CSR Policy, we intend to review and promote CSR based on a multifaceted approach.

Corporate Philosophy >Corporate Code of Conduct >4

CSR Policy＞

CSR＞Our CSR

CSR Promotion System
The CSR Committee determines the priority themes for each fiscal year, to implement CSR
Policy. The Committee also oversees and evaluates CSR-related activities implemented by therespective committees, working groups and divisions, and makes appropriate proposals
regarding them, so as to achieve full optimization of CSR activities, thereby strengthening ourbusiness foundations.
The CSR Committee sets up respective working group as deemed appropriate, each of whichholds discussions on specific themes to develop countermeasures. We have established acompany-wide CSR promotion system by securing close coordination between the CSR
Committee, the CSR Promotion Sub-Committee and expert committees.

CSR Awareness-raising Activities
We have been running elementary CSR training courses since 2014 as one of ourawareness-raising activities so that every employee feels more familiar with CSR.
The training is expected to lead them to change in attitudes toward work, enhancement ofmotivation, and higher pride in the company through awareness of their connections withsociety as well as their contributions to society. Since 2017, we have started training courses
for employees working for our group companies in Japan.
In addition, we regularly publish the CSR Newsletter and hold lectures by experts, aiming at
continuous CSR awareness-raising activities.

Training（SparkTec WKS CO., LTD.）

5

CSR＞Our CSR

Participation in "United Nations global compact"
NGK SPARK PLUG CO., LTD. Participated in “United Nations global
compact” in November 2016.
“ United Nations global compact” is a voluntary corporate
citizenship in order to address various problems such as global
warming, environmental problems, gap-widening society that areprogressing on a global scale. They are also initiatives that were
proposed by Kofi Annan, the Secretary-General of the United
Nations in 1999, and established formally by the U.N. in July 2000.
NGK SPARK PLUG CO., LTD. will uphold ten principles consisted offour issues such as “Human rights, Labour, Environment,
Anti-corruption” being advocated by the U.N. global compact
as good members of society, and will make every effort topromote activities in order to contribute to building a sustainable
society.

The Ten Principles of the UN Global Compact【Human Rights】
Principle 1: Businesses should support and respect the protection of internationallyproclaimed human rights.
Principle 2: make sure that they are not complicit in human rights abuses.
【Labour】
Principle 3: Businesses should uphold the freedom of association and the effective recognitionof the right to collective bargaining.
Principle 4: the elimination of all forms of forced and compulsory labour.
Principle 5: the effective abolition of child labour.
Principle 6: the elimination of discrimination in respect of employment and occupation.
【Environment】
Principle 7: Businesses should support a precautionary approach to environmental
challenges.
Principle 8: undertake initiatives to promote greater environmental responsibility.
Principle 9: encourage the development and diffusion of environmentally friendly
technologies.
【Anti-Corruption】

6

CSR＞Our CSR
Principle 10: Businesses should work against corruption in all its forms, including extortionand bribery.

Progress in our CSR
Nov. 1996

Adopted "Corporate Philosophy"

Feb. 1998

Adopted "Corporate Code of Conduct"

Apr. 1998

Established Ethical Committee

Feb. 2003

Adopted "Corporate Ethics Helpline System Operation Guidelines"

Nov. 2004

Revised "Corporate Code of Conduct", published "Code of Conduct Guidebook"

Apr. 2005

Published "Guidelines on the Handling of Personal Information"
Established

ExportControlCommittee,

adoptedAug. 2005

Regulations"Feb. 2007

Adopted "Confidentiality Management Regulations"Nov. 2007

Published "Confidentiality Management Guidelines"

Sep. 2008

Established Internal Audit Department

Apr. 2009

Prepared "Corporate Protection Manual"

Apr. 2010

Inaugurated CSR Promotion Department

Oct. 2010

Established CSR Committee

Apr. 2011

Adopted CSR Policy

Nov. 2011

Established Compliance CommitteeJan. 2012

Published "Compliance Guidebook"

Mar. 2012

Adopted "Compliance Regulations""ExportManagement

Adopted "Emergency Response Plan Regulations" and "Business Continuity
Oct. 2012

Plan (BCP) Regulations"

May 2013

Published "CSR Procurement Guidelines"

Jul. 2014

Launched "CSR Awareness-raising Activities"

Nov. 2016

Participated in "United Nations global compact"

7

CSR＞Process for defining materiality and CSR targets

Process for defining materiality and CSR targets
Defining the materiality of our priority CSR themes
In 2016, we defined the materiality of our priority CSR themes. We also established 10 fields ofactivities and 41 medium-term targets based on the 7th Medium-term Management Plan.
Going forward, we will repeatedly conduct dialog with major stakeholders, including customers,
suppliers, shareholders and investors, employees and the local communities, while pursuing
stakeholder engagement and continuing to review materiality and targets in line with the times.

Definition process for the materiality of priority themes
Evaluation of Materiality : Policy / Target Setting
2010 – 2012
● Establish new CSR Policy● Set “complete prevalence of CSR” as our medium-term theme for the fifth Medium-termManagement Plan (fiscal 2010 – 2012)2013 – 2014
● Set Complete prevalence of CSR application, and globalize CSR activities as themedium-term theme in the sixth Medium-term Management Plan (fiscal 2013 - 2015), andestablished 10 fields of activities and 30 CSR medium-term targets.
2015
 Establish 10 fields of activities and 42 targets to aim "Progressive Company" as the 7th
Medium-term Management Plan (fiscal 2016 – 2020)

Evaluation of Materiality : Risk (Loss and Opportunity) Analysis
2010 - 2012
 Implemented CSR fact finding survey (management and performance of principle
departments). As a result, "compliance", "business continuity plan (BCP)", and "information
disclosure" identified as three priority medium-term initiatives.

9CSR＞Process for defining materiality and CSR targets
2013 - 2014
 Implemented risk survey after identifying risk management as the medium-term priority
initiative. As a result, compiled 370 specific examples with 21 classifications and 101
definitions and identified 21 material risks on two axes of degree of materiality andimplementation status.

Evaluation of Materiality : Dialogue with Important Stakeholders
2010 - 2016
 Held environmental meetings (local communities, NGK SPARK PLUG)
 Gap analysis of our CSR and SRI evaluation
 Participatedinlocal disaster prevention meetings(government,

citizens,

NPOs,

corporations) Participated in information exchange meetings with neighboring companies held at
Chamber of Commerce and Industry

Activity Review
2010 - 2012
 CSR Policy determined by the Board of Directors. Three priority initiatives reviewed by CSR
Committee
2013 - 2015 30 CSR medium-term targets and responses to 21 material risks reviewed by CSR
Committee

Standards and Guidelines for Reference and Analysis Tools
 Japan Auto Parts Industries Association (JAPIA) guidelines & checklist
 Japan Electronics and Information Technology Industries Association (JEITA) guidelines &checklist
 Japan Business Federation "Charter of Corporate Behavior Action Plan" GRI G4 Guidelines
 ISO 26000
 ISO 31000 risk analysis sheets, risk maps, risk management tables

10

CSR＞Process for defining materiality and CSR targets

Mid-term CSR target
Field of Activities

Mid-term Targets

Department(by fiscal 2020)

in Charge

Manag

Company-wide

Implement PDCA cycle to promote CSR on a global

Risk

ement

CSR

basis

ManagemenManagement

Promote CSR awareness-raising activities on a globalt Dept.

basis
Compliance
Company-w

Construct a global promotion system

Compliance

ide

Continue education on helpline content

Committee

Promotion
SystemContinue compliance awareness and knowledge
training
Continue monitoring of compliance awareness andknowledge and corporate culture change

Security

Deploy educational tools to NGK SPARK PLUG and

Confidential

Control

group

ity

companies

in

Japan

and

monitor

implementation status and effectiveness"Continuously improve security control, including
group

companies,

andestablish

systemManagement Committee

forsurveillance of implementation status
Export・Establish a system for surveillance of implementation

ExportControlstatus of appropriate export controls, including group

Control

companies

Committee

Information

・Continuously reduce security risk of group companies

Information

Securitythrough deployment of Group Information Security

Systems

Regulations

Dept.

Respect for・Implement patent review activities for mainstay

Intellectual

andproducts prior to design review meeting, including

Property

ProtectionofIntellectual
Property
Rightsgroup companies
・Establish new methods to deal with increasingly
sophisticatedcounterfeiters,

particularlyinemerging countries
・ Have at least 15% of submitted patents bedifferentiation patents utilizing a patent portfoliothat adds rivals' information
・ Involve trademark aspects in strengthening ourbrand organization
・Enhance intellectual property education, including
11

Dept.

CSR＞Process for defining materiality and CSR targets
group companies
Risk Management
BCP／BCM・Expand business continuity management system to

BCMgroup companies in Japan

Working・Construct a management system that can respond toGroup

not only earthquakes but also other disasters
・Construct a procurement BCP framework and expand

Procuremen

and operate it at group companiest Div.

IT-BCP countermeasures for server infrastructure

Informatio(cloud utilization)n Systems
Dept.

Company-

Build company-wide risk management suited to NGK

Risk

wide

SPARK PLUGManageme

Risk

Manageme

nt Working

nt

Group

With

Safety and・Expand quality assurance to all group companies with

Quality

Our

Qualitya focus on goods for all customers

Committee,

・Expand quality management to all group companies

Corporate

aimed at delivering value to all customers

Quality

Custo
mers

Management Div.

With

Information

・ Disseminate information that leads to increased

PublicOur

Disclosure

shareholder trust

RelationsSharehDept.

olders・Disseminate information in an easy-to-understand

Risk

and

and approachable manner on a global level

Manageme

Investont Dept.

rs

Construct a framework for an IR strategy aimed at

Accounting

institutional investors&

Finance

Dept.
Disseminate information that captures stakeholders'

Risk

expectations and the changes in social trends

Manageme
nt Dept.

With

Employment

Implement fair evaluations that correspond to clear

Human

Our

and Human

expectations

Resources

EmployRightsDept.,

ees

Strategic
Human
Resources
12

CSR＞Process for defining materiality and CSR targets
Dept.
Establish educational programs that target the

Humanleaders of each group company

Resources
Dept.

Employ diverse human resources strategically

Human
Resources
Dept.

Achieve personnel and human resource functions

Strategic

that contribute to the promotion of management

Human

strategy

Resources
Dept.

Further

encourage

thepromotionofactiveparticipation by women

Strategic
Human
Resources
Dept.

Zero workers leaving their jobs in order to provide

Strategic

nursing care

Human
Resources
Dept.

Achieve the mandatory number for employment of

Humanpeople with disabilities

Resources
Dept.

Promote active participation by seniors

Strategic
Human
Resources
Dept.

Occupational

Raise productivity by decreasing the rate of onset of

Human

Safety andmental illness

Resources

Develop systems that make it difficult for accidents

Safety andto occur aimed at developing a global safety culture

HealthHealthDept.

Committee
Environme
nt & Safety
Manageme
nt Dept.

13

CSR＞Process for defining materiality and CSR targets
With

CSR

・Improve the framework for evaluation aimed at

Procuremen

Our

Procurement

global optimum

t Div.

Supplieprocurement and deploy and operate at grouprs

companies
・ Reduce risk in the supply chain by thoroughly

Procuremen

establishing CSR procurementt Div.
Risk
Management Dept.

・ Promote education and enlightenment aimed at

Procuremen

reducing risk utilizing supplier seminars, etc.

t Div.
Risk
Management Dept.

With

Social・Continually enhance the social status of the NGK

PublicLocal

Contribution

SPARK PLUG Group through social contribution

Relationsactivities

Dept.

・Promote environmental activities aimed at achieving

Environmen

global Eco Vision

tal

Comm
unitiesandInternationalSocietyFor

Environment

EnvironCommittee.

mentalEnvironmen

Protectit & SafetyonManagement Dept.

Fiscal Year CSR Target and Results
We carry out CSR promotion activities according to the medium-termtargets and fiscal year targets.
Our CSR Committee checked the progress of targets for fiscal 2016
and formulated new targets for fiscal 2017 as part of achieving our
medium-term targets.
When we set our targets for fiscal 2017, first each expert committee
and division confirmed the expectations and demands of all our
stakeholders. Then they compared them to our corporate philosophy,
14

CSR＞Process for defining materiality and CSR targets
Corporate Code of Conduct and CSR Policy and drafted targets. Finally, the CSR Committee
approved them.
CSR targets and results

15

CSR＞Management >Corporate GovernanceCorporate Governance
Basic Philosophy
We believe that it is our foundational and important managerial task to establish and maintaina fair and efficient management system, while securing soundness and transparency inmanagement, in order to enhance corporate value by fulfilling our corporate social
responsibilities. We will keep on carrying out efficient and sound business operations to pursue
corporate philosophy by enhancing corporate governance for fulfilling our responsibilities tostakeholders.

Corporate Governance System
The following framework has been built for decision-making, supervising, and execution ofmanagement.

Corporate Governance System

16

CSR＞Management >Corporate Governance

Board of Directors and Directors
Board of Directors is composed of 10 directors, 3 of which are outside directors.
Meetings of the Board of Directors are held regularly once a month as well as whenevernecessary for deliberation and determination with respect to issues as prescribed in applicablelaws and regulations or articles of incorporation as well as other managerial key issues, and also
for supervision of business execution status in response to reports from the directors.
Additionally, Management Meetings composed of Directors are held regularly once a month fordiscussion and pre-grasping about business challenges to be addressed, and any possible riskthat involves our company for enhancing the system that can be flexibly adaptable to change inthe managerial environment.
We have introduced Corporate Officer framework on April, 2012 for the purpose of prompt
execution of duties based on various policies determined by Board of Directors, and clarifying
resultant responsibilities.

Board of Directors has nominated 22 corporate officers (6 of themwork as directors) who are expected to share information, and exchange opinions on the status
report concerning execution of duties in a cross-sectional way in Corporate Officers’ Meeting to
be held once a month. Each term of Board of Directors and Corporate Officers’ Meeting is one
year.

Board of Auditors and Auditors
Board of Auditors is composed of 4 auditors, 2 of which are outside auditors.
Two full-time auditors serve to audit execution of duties by the directors through regularopinion exchange with the representative director, and auditing of major offices andsubsidiaries.

Meanwhile, the outside auditors serve to audit execution of duties by the

directors through attendance of Board of Directors.

The auditors will attend various meetingsand committee meetings whenever necessary.

Independency of Outside Director/Outside Auditor
The outside directors perform supervision while taking the position independent from businessexecution by stating opinions from broad point of view in important meetings such as Board of
Directors.

The outside auditors perform audits on the background of technical knowledge

while adopting multilateral viewpoints by stating opinions in important meetings such as Boardof Directors.
The outside directors and outside auditors are designated as independent officers. They may
be nominated in accordance with both the criteria prescribed by stock exchange, and our own
17

CSR＞Management >Corporate Governancecriteria in order to ensure that the candidate has no special relationship with management andmajor shareholders of our company, and no conflict of interest against the general stockholders.

Internal Audit
We have established “Internal Auditing Office” as an independent department.

Through auditsof NGK SPARK PLUG CO., LTD., and its group companies, the Internal Auditing Office reports theaudit results to management, and makes proposals to correct problems and improve business
operations as necessary. Departments that receive a proposal for improvement formulate andimplement improvement plans and the Internal Auditing Office monitor the implementation
status. The Internal Auditing Office assesses the effectiveness of internal control over financial
reporting in accordance with the internal control report system pursuant to the Financial
Instruments and Exchange Act so as to secure the reliability of financial reporting, thereby
working to maintain and improve internal control.
Internal Auditing Office will ensure effective and efficient audit through exchanging views oneach of the audit plans and results with corporate auditors or independent external auditors or
both, from time to time on a regular or necessary.

Remuneration for Director and Auditor
We have established optional nomination/remuneration committee on April 2017 for rationality
and transparency of nomination/determination of remuneration for the director. Since June,
2017, targeting the directors and the corporate officers, we have introduced the share-based
remuneration system of performance-base type as the executive remuneration system withhigh transparency and objectivity based on business performance for the purpose of raisingawareness of contribution to improvement of business results on the medium- to long-termbasis, and enhancement of the corporate value. This system is intended to evaluate theattainment level of business operations in terms of consolidated sales, consolidated operating
profit, and ROIC as indexes for four business years from fiscal 2017 to 2020 within our
medium-term management plan period.

18

CSR＞Management >Corporate Governance

Remuneration and bonus paid to directors and auditors in fiscal 2016
Remuneration (except

Bonus

bonus)
NumberAmountNumberAmount(million(million

yen)

yen)

Director

11

520

6

73

(outside director)

（3）

（36）

－

－

4

76

－

－

（2）

（26）

－

－

15

597

6

73

Auditor(outside auditor)
Total* Including remuneration paid to the director resigned at the conclusion of 116th annual
shareholders meeting (held on June 29, 2016).
* Maximum amounts of remuneration paid to the directors were set by a resolution made at the
117th annual shareholders meeting (held on June 29, 2017) as follows.
Total amount of remuneration (except bonus)

monthly

within 60 million yen

Total amount of bonus

annually

within 180 million yen* Maximum amounts of remuneration paid to the auditors were set by a resolution made at the106th annual shareholders meeting (held on June 29, 2006) as follows.
Total amount of remuneration (except bonus)

monthly

Total amount of bonus

annually within 10 million yen

19within 10 million yen

CSR＞Management＞Compliance

Compliance
Compliance Policy
With recognition that our company is a member of society, we enhance corporate ethics andunderstand the spirit and meaning of laws, company regulations, international rules, and social
norms in order to appropriately meet social demand and become a company trusted by theinternational community.

Action Guidelines●We not only comply with laws and regulations, but also act in good faith with common sense
and responsibility as a member of society.
●We regularly educate and raise the awareness of all our employees to impart a high level of
ethics and correct knowledge, with which they can act voluntarily to prevent a violation.
●Should a violation occur, we will promptly investigate the causes and take remedial actions.
We will strive to take appropriate countermeasures to prevent recurrence and fulfill our
accountability.

Basic Philosophy
We work to increase awareness among employees regarding compliance to act in a sociallysensible manner, helping them to bear in mind that our enterprise is a member of society.

Compliance Promotion System
A Compliance Committee made up of representatives of departments in charge of overseeing
compliance with laws and ordinances and each division, headed by the Representative Director,
holds meetings every three months, carrying out inspections and correcting serious problems.

20

CSR＞Management＞Compliance

Compliance Promotion System

Promoting Compliance Education
To raise employees' awareness of compliance, we continue
education and edification using the Compliance Guidebook,which collects rules concerning the company and society,and the Compliance Newsletter, which gathers examples ofincidentsthat

happennearby.

Inadditiontothelevel-specific training we have used in the past, we also holdtraining on the themes of competition law, export control,
Compliance Guidebook

and business law.

Compliance Survey
We conduct a compliance survey every year. This identifies employees’ level of understanding
about regulations and systems, the culture of the various workplaces, and compliance risks,
and we work for individual improvements by providing feedback on the results to each
workplace.

Corporate Ethics Helpline
We have opened the “Corporate Ethics Helpline” as an in-house reporting system thatencourages employees to consult regarding compliance. We have worked to increase
convenience by establishing channels not only inside the company but also with an external
expert private company, enabling consultation and reporting outside of business hours, on
21

CSR＞Management＞Complianceholidays etc. Anonymous consultations are also accepted.
Regarding consultations and reports received, facts are investigated with discretion so thereporting employee is not identified and does not feel uncomfortable, and if problems are
confirmed, they are dealt with promptly.
We have received 54 cases of consultations/reports in fiscal 2016, including those from
employees for our group companies.

The consultations and reports mainly involved withissues such as labor and in-house rules.

We immediately took remedial actions upon

identification of problems of accepted cases. This system will be continuously made known toevery employee through opportunities, for example, by introduction in trainings, display of
posters, and distribution of portable cards.

Flow after report is received via the Helpline

22

CSR＞Management＞Compliance

Voice of Our Helpline Operator

We want employees to feel at ease using the helpline.
The Corporate Ethics Helpline is directly linked to the officer
in charge of compliance. Under this system, the identity or
details of consultation of the consulter, even when a realname is used, will be shared only with a minimum necessary
people qualified for solving the problem. The privacy of thefaithfully reporting consulter is securely protected so as not
to be treated disadvantageously.

Every employee who feels

Risk Management Dept.
Mori

it difficult to consult in the workplace is encouraged to utilize
this system.

Initiatives to Prevent Corruption
The NGK SPARK PLUG Group works to prevent corruption, stating in our corporate code of
conduct “we shall promote fair, transparent, free competition and sound trade. We shall also
ensure that our relationships and contacts with government agencies and political bodies are ofa sound and proper nature.”
In the Compliance Guidebook we issued in 2012, we set rules concerning the prevention ofcorruption, including the prohibition of involvement in political contributions or bribery, andsubsequently educated employees about these. In 2013, we educated employees about ourConduct Guidelines Concerning the Giving and Receiving of Gifts and Entertainment, and areraising awareness to eliminate any misconduct. Further, in 2016 we signed the United Nations
Global Compact, openly reaffirming our commitment to undertaking the prevention ofcorruption. While addressing the prevention of corruption in accordance with these and otherguidelines, we respond to any incident of violation primarily through our Compliance Committee.
We also accept information provided through the Corporate Ethics Helpline.
Our overseas group companies are also taking action to prevent corruption, and conduct
education for employees along with surveys of local laws.
Through our CSR Procurement Guidelines, we further require that suppliers refrain from acts ofbribery.
In fiscal 2016, there were zero related violations committed by our Group.
Participation in "United Nations Global Compact" >23CSR＞Management＞Compliance

Initiatives Concerning Competition Law (the Antimonopoly Act)
Responding with sincerity to violations of competition law uncovered in fiscal 2014, the NGKSPARK PLUG Group is implementing a Competition Law Compliance Program.
We have established a system to promote compliance with competition law, including theappointment of officers in charge of compliance and the establishment of a competition law andcompliance measures team. In addition, we have formulated an Antimonopoly Act Compliance
Manual and educated employees about it, including holding seminars on the topic. In fiscal
2016, we held seminars for major career path, technical division, and planning division in
addition to those for sales division and support division as well as those led by experts for
executives. We have introduced in-house E-mail inspection system for monitoring preventionof recurring violation of Competition Law
The domestic competition law and compliance measures team visits overseas group companies
to conduct audits on compliance systems and their operational status, and to confirm that rules
are thoroughly promulgated and enforced. In addition, we conduct checks of the readinessstatus of internal reporting systems, as a means for quickly discovering the possibility ofviolations. From fiscal 2015 to fiscal 2016, we conducted on-site audits at almost all overseas
group companies. We will continue to conduct education and audits both in Japan and overseas,
and will enforce the strict observance of competition law.

Policies Regarding Taxes
The NGK SPARK PLUG Group has set a compliance policy by which we recognize that we are amember of society, and, with understanding of the spirit and the purpose of laws andordinances, respond appropriately to the demands of society and aim to become a company
trusted by the international community. We also undertake the payment of taxes on the basis of
this policy and in accordance with the following principles.
1. The Group will fulfill its social responsibilities by observing laws on corporate taxation andother tax laws in every country, as well as international taxation standards including theOECD Transfer Pricing Guidelines and the Action Plan on Base Erosion and Profit Shifting.
2. In order to ensure compliance with the above laws and ordinances, our Group will work
toward improving our knowledge of, and correct understanding of taxation, and to enhancereliability and transparency with an attitude of sincerity toward tax authorities.
3. The Group will properly manage taxation risks by working toward appropriate declarationand payment of taxes in each country, thereby enhancing shareholder value.

24

CSR＞Management＞Export Controls

Export Controls
Basic Philosophy
Aiming at international peace and security, export management (Security export control) has
been implemented to protect cargo and technology from being utilized by Organizations withsome kind of connection to Regional conflicts or Nuclear development for military purpose.
The demand for proper export control has been increasing due to worsening international
security. To suitably execute export controls based on the Foreign Exchange and Foreign Trade
Control Act, we have drawn up our own Export Management Regulations and established our
in-house export control system.

Our logistics departments have been working to achieve

proper cargo control under the background of solid security management system of export
cargoes for terrorism prevention based on various relevant systems. We will continue to carryout business in compliance with all laws and regulations to fulfill our responsibilities as
demanded by the international community and the government.

Holding Regular Briefings on Different Themes
Responding to needs of continuous education to appeal the importance of security export
controls and cargo security management to all through the company, we are planning to holdregular briefings on various themes for related divisions in the company.
Themes and Results in fiscal 2016
ThemesNumberparticipantsof times
1.Foreign exchange
laws

and

16

329

16

329

８

212

security

export controls
2.Customs

law,

Authorized
Exporters’

program(AEO system)
3. Air cargo security
management(KS/RA system)

25

CSR＞Management＞Export Controls

Themes in fiscal 2017 (planned)
1. Foreign exchange laws and security trade controls
2.

Customs law, Authorized Exporter’s program (AEO system)

3. Air cargo security management (Known Shipper / Regulated Agent system)
4. Classification in practice

Voice of Our Export Controls Organizer

Pursuing education program in readily understandable way
Export control is supported by various divisions such astechnical, sales, and logistics. The person in charge of theexport control is expected to work with in-depth knowledge
and understanding on the importance of continuous provisionof regular education programs for appropriate business
operations executed by the relevant divisions. We will holdbriefings on laws and regulations concerning export, and cargo
managementinreadily

understandable

mannerfor

Risk Management Dept.
Risk Management
Kato Dept.
Kato

participants so that no unclear points are left after the briefing.
We aim at the environment for appropriate business operations performed by the relevant
divisions.

26

CSR＞Management＞Security Control / Information Security

Security Control / Information Security
Information Security Policy
We regard all of our own information assets as one of our management resources. Throughthe proper protection and effective use of our information assets, we pursue healthy
maintenance and development of our business.

Action Guidelines
 We establish rules that clearly define the system and responsibilities for the protection
and management of all the information assets including the information we keep for ourcustomers, the know-how and intellectual properties owned by our Group, and personal
information.
 We comply with laws, ordinances, and regulations regarding information security.
 We educate all executives and employees who handle information assets about theimportance of information security, and about specific items to be observed.
 We continuously update the information infrastructure for the maintenance andimprovement of the confidentiality and stability of all the information assets.
 We promote measures to prevent accidents in order to address the risks of information
leakage associated with the continuous advancement and sophistication of information
technology. Should an accident occur, we will strive to minimize the damage and takepreventive measures against recurrence.

Basic Philosophy
We have established the Group Information Security Regulations and Confidentiality
Management Regulations, striving for appropriate management of confidential information,
including the electronic information of the NGK SPARK PLUG Group, customers and suppliers.
Even in the use of electronic information equipment such as wireless LAN and mobile terminals,
we will conduct information security management with due consideration in compliance with
relevant laws and regulations.
Our privacy policy is available on our website

27

CSR＞Management＞Security Control / Information Security

Relocating Internet Systems to a Disaster-resistant Data CenterIn preparation for the eventuality of a disaster, we are gradually relocating the Internet systems
used for exchanging data with suppliers and group companies, and for internal and external
communication with tools, and the mechanism for exchanging data with the suppliers to an
external data center which have outstanding resistance to earthquakes, liquefaction, flooding,and fire as well as guaranteed power sources. In conjunction with this, we have enhanced
business continuity by duplicating communications with the data center.

Carrying Out Periodic Inspections Related to Confidentiality Management
To ensure that the confidentiality management rules we established do not become rules inname only, the Confidentiality Management Committee performs periodic company-wide
inspections of the status of confidentiality management. We have adopted a method of carryingout mutual interdivisional inspections in addition to the self-checks carried out in the past to
strengthen the checking function.
Furthermore, we have not only established rules for confidential information handled in-house,but also rules to prevent leaks of confidential information taken outside the company, including
procedures for the use of mobile PCs and cloud service, and we carry out checks on theoperational status of these rules.
Voice of Our Confidentiality Management Manager

To be thorough in confidentiality management and avoid corporate risk
As a member of the Confidentiality Management Committee
secretariat,
management

I

am

in

chargethroughout

the

of

promotingcompany.

confidentiality

When

confidential

matters are leaked, there is not only a degradation ofcompetitiveness in the market and actual damages due todemands for compensation of damages from business partners,
but there are the incalculable effects of a damaged image due to aloss of public faith in the company. To prevent these effects, we

Risk Management Dept.
Maegawa

will optimize the company-wide standard confidentiality management rules more suitable aswell as expand them to group companies.

28

CSR＞Management > Intellectual Property

Intellectual Property
Basic Philosophy
To protect its existing and newly developed products, NGK SPARK PLUG CO., LTD. takes steps toactively acquire intellectual property rights and make effective use of them. We investigate theintellectual property rights of third parties in all production processes, from early stages ofdevelopment to mass production, to avoid the risk of infringing the intellectual property rightsof third parties or violating contracts, laws or regulations. We also verify the appropriateness of
the intellectual property-related provisions in various contracts. In addition, we are educating
employees on the importance of intellectual property. In the future, we will strengthen the
management of intellectual property across the Group, as the basis for our continued evolution
as a “Monozukuri Company.”

Promoting Measures to Stamp Out Counterfeit Goods
As for NGK SPARK PLUG CO., LTD.’s measures against counterfeit goods, to date various groupcompanies, primarily in China and the Middle East, and law firms have been proceeding withactivities through tie-ups, and we have also been strengthening activities in the ASEAN and
India, where economic growth continues. The counterfeit goods that threaten the safety ofcustomers exhibit the trend toward further trickiness and smaller lot through the Internet
trading. We have been continuously engaging in activities for uncovering and stamping out
the counterfeit goods in close cooperation with the police, the customs, and relevant
administrative agencies.

Seized counterfeit goods
29

CSR＞Management > Intellectual Property

Voice of Our Intellectual Property Organizer

For Safety of Customer and Development of Local Society
The Intellectual Property Department believes that we shouldtake the resolute attitude against manufacturing and sales ofcounterfeit goods modeled after our products not only forprotecting interests of our customers who purchase our productswith trust in our brands but also removing any possible risk offundinganti-socialorganizations.

We

are

striving

fordiversification of our intellectual property rights for effective
exercise onward, aiming at safety and development of the local
society.

30

Intellectual Property Dept.
Yoshizawa

CSR＞Management > Risk Management

Risk Management
Risk Management Policy
We will identify the risks that could have serious impact on our business activities based on
the comprehensive understanding of the risks related to our Group, and take necessary
measures to prevent the occurrence and recurrence so that the risks are reduced to an
acceptable level. Even if such a risk should occur, we will also strive to restore and continuesmooth business operations, thereby maintaining trust from our stakeholders.
Action Guidelines

We conduct our activities with top priority on the protection of human life.



We strive to prevent factors that could affect business continuity.



We minimize impact on related parties.



We strive for rapid restoration of business operations and stable supply of products andservices.



We take measures to prevent the recurrence of risks.

Basic Philosophy
We are promoting construction and operation of the companywide risk management system as
the strategy coping with the complex and diversified business environment and risk. Based on
the following basic ideas, we will continuously make our efforts to effectuate the system
integratedly with groups inside and outside Japan.
1. Sharing of idea/procedure of raising awareness of risk, evaluation, and formulation of
measures;2. Construction and operation of the management system adapted to individual groupcompanies;
3. Skill-up of risk assessment and measures

31

CSR＞Management > Risk Management

Promotion system
Appointing the President of NGK SPARK PLUG CO., LTD to “Chief Administrator” of risk
management, and appointing the Director of Risk Management Department to “Promotion
Manager”, the CSR Committee including all Directors as members is expected to evaluate
operation/results of group-wide activities based on the following items for review on the
management in the next term.
1. Classify the risk into hierarchies including management level, Department/Division level, andworking level for clarifying the respective coverages of risk management.

For the groupmanagement risk level, “Unified priority risk measure for the whole groups” is selected forevaluation on the countermeasure status.
2. Evaluate each status of risk management system construction/operation in the respective
group companies.
3. Instruct correction of descriptions as described in the items 1 and 2.
In the fiscal 2017, promotion of BCM (Business Continuity Management), and Anti-Corruption
are specified as the “Unified priority risk measure for the whole groups”.

Classified risk
Human rights andHarassment

labor practiceDiscrimination
Long hours of work
Labor dispute, Strike,
Demonstration

Safety and HealthOccupational accidents
Traffic accident
Mental health

Environment

Environmental pollution
Violation of laws

Information

Information systemsecurity andfailureConfidential

Cyber attack

information

Leakage of confidential

management

information and personal
information

Fair trade andCorruption

EthicsViolation of laws

32

CSR＞Management > Risk Management

Fair trade andInfringement of

Ethicsintellectual property
rightsExport management
Accounting problems
Procurement

Product

Defective productProduct liability

Accident

Natural disaster
Infectious disease
Fire and explosion

CSR Promotion System ＞

Promotion of BCM (Business Continuity Management)
Formulation of various BCPs (Business Continuity Plan)
In preparation for various risks caused by earthquake disaster,

We have been addressing theissue of BCM (Business Continuity Management) for continuing business operations while
minimizing damage, if any, caused by the risk. Establishment of contingency framework, andhandling procedures necessary for functions required to take timely measures against thedisaster, for example, business departments, IT, and procurement, are specified in BCP(Business Continuity Plan), clarifying the time-limit and the target state.

We conduct thetraining intended to confirm and disseminate effectiveness of the formulated BCP annually.
The CSR committee further confirms the task and degree of effective improvement, which havebeen revealed by the training for taking countermeasures and reviewing.

<BCP on IT>
We are taking preventive measures against the harmful influence on the business continuity inthe case of disaster by reinforcing machine chamber to improve the earthquake resistance,
installing base isolation stand, utilizing cloud service, changing the backup storage method, andintroducing emergency power supply equipment and solar power generation system.

In

preparation for disconnection of communication, we formulate the recovery plan for earlyrecovery.

33

CSR＞Management > Risk Management<BCP on procurement>
We have promoted countermeasures that include multiple purchasing for key products
including materials and parts.
A diverse range of materials and parts is required for manufacturing NGK SPARK PLUG CO.,LTD.’s products. Therefore, we are trying to secure systems that respond to the BCP throughsharing our objectives with each supplier and making efforts across the entire supply chain.

Making preparations for large-scale earthquakes
There has been concern over large-scale earthquakes in Chubu region where many businessbases of our group companies are located. We have relocated the office likely to be sufferedfrom the tsunami, as well as reorganization of plants of the group companies in consideration of
possible damage under adverse influence of the large-scale earthquakes. “Earthquake BCP
Guideline” specifies the initial measure in response to the earthquake and business continuity
actions.

The initial measure covers actions of employees, for example, evacuation andconfirmation of employees’ safety, provision of emergency response headquarters, in-housefire brigade, and stockpile management. The initial measure will be confirmed through the
emergency drill held by the respective plants, business offices of our company, and groupcompanies in Japan on the same day in November every year. The business continuity action
covers setting of target time for recovery of the important business operation, drafting therecovery plan, organization of team for recovery work, and exercise of BCP.

Disaster drill

AED training

Training for collecting
disaster information

34

CSR＞With Our Customers > Quality Policy and Implementation Structure

Quality Policy and Implementation Structure
Corporate Quality Policy
We are committed to "Customer focus", "Involvement of all members", "Continuous
Improvement", to provide "Quality Products" to the society, and create new value.

Action Guidelines
 We strive to take a customer‒oriented approach to provide quality products and services,aiming to ensure greater customer satisfaction in all our business activities.
 We are engaged in quality improvement activities through the companywide cooperation,and encourage our employees to achieve higher goals by making the best use of theirindividual abilities and creativity and uniting their efforts to address problems andchallenging issues.
 We strive to continue improving our processes, systems, products, and services, aiming to
respond to ever changing social/market environments and the diverse expectations andneeds of customers.

Basic Philosophy
NGK SPARK PLUG CO., LTD. regards all the value, expectations, and evaluations provided tocustomers through products and services, and all the people, goods, processes, andarrangements involved in producing them as "quality."
We are always conscious of making the best value for customers, and, aware that we are theones who support quality, we continue to grow, ambitiously applying creativity and imagination
to all operations.
We create value for customers in accordance with our Corporate Quality Rules and Corporate
Quality Policy. We will continue to contribute to society with safe and trusted manufacturing, as
well as the development of human resources who effectively and efficiently implement total
quality management (TQM), which enables us to respond flexibly and promptly to the evolving
internal and external business environment.

35

CSR＞With Our Customers > Quality Policy and Implementation Structure

Quality Management System
NGK SPARK PLUG CO., LTD. strives under the main principles of our quality management
activities(quality

assurance,

daily

management,

policymanagement,

Small

Group

Improvement Activities, and quality management education), which are based on our
Corporate Quality Rules.
We have obtained certification by the international standard ISO 9001 and sector standards
such as ISO/TS16949 in order to meet the demands of customers and the various industries.
The “Quality Committee”, established as the company-wide quality assurance framework, ischaired by the Quality Control Officer and composed of the general managers. The Quality
Committee directs and supervises total quality management (TQM) and quality risk.
In addition, QC Circle activities are positively conducted as Small Group Improvement
Activities and play a role in promoting total quality management (TQM) activities. The “NQC*
Central Committee”, which promotes QC Circle activities, continually works with QC Circle
trainers and the expert advisors who support QC Circle activities to strengthen the developmentof human resources and organizations that continually support quality.
We also contribute to awareness of local quality activities through participation of outstanding
QC Circles in many external QC Circle conferences to present their results.
* N stands for an initial letter of “Nittoku”.

36

CSR＞With Our Customers > Quality Policy and Implementation Structure

Quality Management Promotion System (FY2016)

37

CSR＞With Our Customers > Quality Policy and Implementation Structure*Each committee has an executive office*Each committee includes group companies in JapanNQC Activities promotion system (Organization of NQC Activities)(FY2016)38

CSR＞With Our Customers > Quality Policy and Implementation Structure

Voice of Our Quality Control Manager

For achievement of targets
Sharing the “Nittoku Quality Mind”, which is NGK SPARKPLUG CO., LTD.’s DNA with regard to "enhancing corporate
value" and "creating customer value," we have establishedthe “Corporate Quality Rules” in order to align our approach
toward the achievement of company-wide targets. As thecompany that can provide value for customers and society
at all times, it is essential to upgrade not only productquality, but also the quality of all the operations and human

General Manager, Corporate
Quality Management Div.
Aoki

resources that produce it as well as nurturing our corporate
culture. We will provide the expected quality by practically applying total quality
management(TQM) to our global activities in the NGK SPARK PLUG Group.

39

CSR＞With Our Customers > Initiatives to Improve Quality

Initiatives to Improve Quality
Basic Philosophy
NGK SPARK PLUG CO., LTD. is working to share and practice the concepts of TQM (Quality
Management) in order to become a group company that creates value for all stakeholders andhas a system that can respond flexibly and swiftly to change.
Based on our CSR Policy, we have updated NGK SPARK PLUG CO., LTD.’s Corporate Quality Rules
and identified the following five areas as the mainstays of total quality management (TQM).

1) Quality assurance
In order to provide products and services that meet the needs of our customers and society,NGK SPARK PLUG CO., LTD. will establish all operations and guarantee their safety and reliability
and promote development activities aimed at creating new value.

2) Daily management
NGK SPARK PLUG CO., LTD. will consider methods and indicators to measure the quality of all
our operations and promptly investigate the causes when results that differ from normal are
obtained as well as taking countermeasures to maintain and improve quality.

3) Policy management
NGK SPARK PLUG CO., LTD. will further improve and innovate activities to maintain andenhance quality. We will establish strategies and objectives for creating new value forcustomers and responding to the evolving internal and external business environment andexplicitly identify issues and problems that need to be tackled as we work towards achieving ourstrategies and objectives.

4) Small group improvement activities
NGK SPARK PLUG CO., LTD. will use small group teams to solve the various issues and problems
identified through daily management and policy management, thereby developing humanresources.

5) Quality control education
NGK SPARK PLUG CO., LTD. will create the understanding and awareness of the mainstays of
TQM, which are the prerequisites for maintaining and enhancing quality and activating
40

CSR＞With Our Customers > Initiatives to Improve Quality

improvements and innovation and then establish and implement a grade-specific education
system.

Running “Quality Activity Events” Year RoundWe run quality management events year round, not only inJapan’s Quality Month which is held every November. Our
quality expos are held at all the sites of group companies inJapan and are visited by more than 5,000 employees eachyear. We established the expos as an opportunity to share
our approach to quality as well as the diverse quality-related
initiatives in workplaces. In addition, we promote activities tomaintain and enhance quality while engaging all employees
in a range of events such as raising awareness about quality

A quality expo

through collection of quality slogans and attendance at lectures on quality, evaluation of theresults of activities at QC Circle workshops, and promotion of problem solving through tours ofinspection by local senior management, including overseas business sites.

SDCA Activity
Standardizing our work and operations plays an important role in supporting TQM (quality
management). As a manufacturer, we are promoting the manufacturing worksite SDCA
(Standardize, Do, Check & Act) activity to stably and reliably conduct daily management at our
manufacturing worksites. We are working to improve quality of our manufacturing while being
susceptible to any abnormal state in the worksites and maintaining the worksite without muri,
muda and mura (unreasonableness, waste and inconsistency) as a daily routine through goodcommunication.

41

CSR＞With Our Customers > Initiatives to Improve Quality

Voice of Our Activity Promoter

Creating a Workplace with a Positive Culture through Standardization
Miyanojo manufacturing department is working on standardization
activities for lessening unevenness in the procedure, methods, andtime periods for executing operations. Our activities aim atstandardization of the process, which allows every worker to readily
perform the operations in the natural flow while making efforts tolessen unevenness in the time period for preparatory job or“temporary stop”* so as to attain stability in quality and production.

Spark Plug Div.

We have introduced the work evaluation system using the tablet

Miyanojo

terminal to confirm the operations in the determined manner. The

Manufacturing Dept.

system helps us to identify the specific operation that has been kept

Hiraunclear as well as search for more efficient approach to perform
such operation through discussion. Consequently, we are able to confidently conduct theoperation. We are sure that the communication among members in the process has been
restored to further improve the worksite atmosphere.
*Temporary stop : The brief interrupted or idling state of facilities and production in the
manufacturing worksite resulting from incidental trouble owing to uncertain cause.

Quality Training Raising the Quality of Our Manufacturing
We are working to develop our human “assets” as“making things is making people.” We have establishedfulfilled training programs that include quality control
and QC Circle Activities, and many of our employees
attendthese

programs.

We

are

also

furtherstrengthening more advanced support activities atsites. We expect that training participants will gainsignificant awareness by revising points on techniquesthrough familiar themes in addition to spreading thisawareness to the employees around them.
We also offer quality training and practical support for
42

Quality training

CSR＞With Our Customers > Initiatives to Improve Quality

problem solving for suppliers so that they provide us with consistently high quality parts andmaterials based on continuous quality improvement.

Voice of Our Training Leader

Moving from Knowing to Being Able to Use Quality Knowledge
In our quality training programs, we hear feedback on being able
to acquire knowledge such as “I obtained new knowledge” and “I
found out about points for analysis.” We are providing practical
instruction on the themes raised by individual employees in orderto turn this knowledge into something that can be applied topractice. Going forward, we will continue to enhance the quality of
products and work through the development of human “assets”

Corporate Quality

with the ability to apply quality knowledge to practice.

Management Div.
Kato

QC Circle Activities (Small Group Improvement Activities)
We are implementing QC Circle Activities aimed at advancement of human "asset" training andworkplace capacity by continually solving problems and issues we face in daily work. We call thisactivity "NQC Activities." (N denotes an initial letter of Nittoku).

Presentation and Sharing of Results of NQC Activities
During Quality Control Month every November, NGK SPARK PLUG CO., LTD. and groupcompanies in Japan jointly hold company-wide presentations concerning results of NQC
Activities.

In fiscal 2016, the presentations were held for indirect department and direct

department, separately so that the employees are stimulated by learning specific activities
performed by coworkers in the same occupational category as a reference for their working
ways.

Three circles that received the gold prize for excellence were highly evaluated forachievement of the target based on the “5-Gen principles” by all members, and enhancement of
their knowledge on improvement, and communication skills.

Defining the session as theframework for the “NGK SPARK PLUG Group Presentation”, we started holding invitational43

CSR＞With Our Customers > Initiatives to Improve Quality

presentations on the best improvement practices fromcircles of overseas group company in fiscal 2015.
In addition, at the company-wide improvement practicepresentation

and

award

ceremony

every

June,

commendations are given to small groups systematically
implementing

exceptional

NQC

Activities

in

daily

operations throughout the year to encourage continuous
NQC Activities by honoring their efforts.
In addition, we actively send outstanding improvement
incidence to presentation meetings outside the company.
Presentation of the subject theme outside the company
will stimulate their motivations, sense of achievement toCentral Presentation Circle
awarded the gold prize(indirect department)

upgrade the circle as well as individuals, leading to the next activities. Recently, a certain
number of circles have received higher prizes in the presentation held outside the company
every year.

The contents and results of the presentations are shared by the in-houseinfrastructure.

Promotion of NQC Activities in Each Department
To activate NQC Activities at each worksite, we formed new“expert committees” at each of our plants in fiscal 2013.
These committees are made up of Certified QC Circle Trainersand expert advisors (members selected from each divisionand department). In particular, they aim to give expert
advisors knowledge and practical skills related to NQC
Activities through two years of activities as internal workshop
instructors, promoters and commentators and in external
training courses.

After their terms, they return to theirrespective worksites available on a daily basis. The NQC

Advice from an expert
advisorCentral Office aims at revitalization of activities by increasing the general expert advisors in therespective worksites.
Our aim is to invigorate and raise the quality of NQC Activities through continual improvements
to this system for promoting them, and we will continue to develop human "asset" who can
produce the best results in each scene of the company’s business activities.

44

CSR＞With Our Customers > Initiatives to Improve Quality

Voice of the Secretariat for NQC Activities at Group Companies in JapanNQC Activities Leading to Human Resource Development
We have been promoting NQC activities focusing on humanresource development based on the slogan to “Learn and upgrade
through NQC activities for better self and more lively worksite”.
In fiscal 2016, the following initiatives were promoted in addition
to support to the circles, for example, confirmation of meeting
progress by recording meetings, advice on QC methodology and
QC incidents.
・ Promoting participation of new counselors and promotion
committee members in external workshops
・Holding exchange meetings only for female employees for the

Ceramic Sensor
Secretariat for NQC
Activities

purpose of revitalizing the activities
The knowledges cultivated through the initiatives are expected to be utilized not only for NQC
activities but for routine works, leading to development of human “assets” indispensable forthe company.

Measurement Management
Appropriate measurement management in order to obtain reliable measurements is vital in
manufacturing.
In order to protect the NGK SPARK PLUG brand, we support our group companies in the way
adapted to individual tasks by making importance of measurement known to the entire group.

DevelopmentofMeasurement

Management

SystemforGroup

Companies in Japan
We have established the unified criterion for the measurement management system so thatsuch system is implemented at higher operation level. We believe that the unified criterion willlead us to enhancement of quality assurance system.
We are performing audits of measurement management systems and confirmation of
manufacturing worksite measurement at each company and have been working to unify45

CSR＞With Our Customers > Initiatives to Improve Quality

standards and enhance the quality of frameworks and management.
We will offer the support to voluntary level-up through key person development for the jobsite
confirmation and human resource development conducted in each company.
Voice of a Measurement Management Manager at a NGK SPARK PLUG's Group Company

In-house Calibration of Measurement Device
We have been currently taking the initiatives to implement
in-house calibration of measurement devices upon start-up of
new plant. In collaboration with NGK SPARK PLUG CO., LTD.,
we have been engaging in development of the operator forcalibration,framework

improvement,

chamber for calibration.

andbuildingof

We will continue working to

improve knowledges and skills of our employees while
enhancing our relationship with NGK SPARK PLUG CO., LTD.

SparkTec WKS CO., LTD.
Quality Assurance Dept.
TanakaSupporttoOverseas

Group

Companies

from

ViewpointsofMeasurement
We visit the plant of overseas group companies on the regular basis for improving thecalibration skill of the local employees, and auditing the gauge supplier as part of oureducational support project.
Aiming at quality improvement of the framework and skills, we have started implementation of
measurement confirmation at manufacturing worksite as well as “audits of measurement
management systems” and “certification of calibration skills”. The in-depth confirmation isintended to further raise the measurement management level directly linked to manufacturing.
We will work on localization so that each company is able to perform skill certification, training,and process confirmation on their own.
As part of rationalization, we are promoting local procurement of gauge.

Proper incoming

inspection at the respective overseas plants is essential for successful local procurement. The
measurement technology is needed for such proper inspection. We will contribute to accuracy
improvement and consistency of incoming inspections by rolling out training in measurement
method and skills.
46

CSR＞With Our Customers > Initiatives to Improve Quality

Voice of a Quality Control Manager, Overseas Group Company

Aiming at Upgrading of Measurement Management and Measurement
Skill
We are continuously working for upgrading the measurement management and measurement
skills in collaboration with NGK SPARK PLUG Co., LTD.

The measurement management

system audits conducted in fiscal 2016 revealed the “weakness” in the system.
Implementation of in-house training to overcome the “weakness” led us to enhancement andimprovement of the measurement management and measurement skills.

In the future, wewill continuously work to attain further
growth.

NGK

SPARK

PLUGS

(INDIA) PVT. LTD.
Tanahashi

47

CSR＞With Our Customers > Communication to Customers

Communication to Customers
Basic Philosophy
For the reliable supply of our products and services to our customers all over the world whilesatisfying their demands and requests, we have been making efforts to perform high-levelcommunication with customers in various ways.

We are offering correct and appropriate

information on the website or in exhibition always from the customer-oriented point of view.

Providing Services Demanded by Customers from a Customer-oriented Perspective
We also provide high quality services based on the appropriate technology and knowledge aswell as long experience in the automobile aftermarket and promote diverse activities
responding to requests of customers from a customer-oriented perspective around the globe.
We put efforts into technical knowledge training for marketing staff in Japan and overseas aswell as the training of overseas technical marketing staff to enhance the communication withusers by holding training sessions for mechanics working on the automobile maintenance site,or students as would-be mechanics, or running an event for arousing interests of end users inthe spark plug inspection.
In addition, we promote market research activities as well as feedback by collecting andproviding technical information and new car and model information, and work on initiatives tofurther increase customer satisfaction by responding to customer inquiries, and to our
website, and providing diversified services including technical support to cope withcomplaints.

OJT activities inTraining sessions formaintenance shop (China)

mechanics (Japan)48

CSR＞With Our Customers > Communication to Customers

Spark plug inspection
campaign (Vietnam)

Voice of a Member of our Service Staff

Leading to the future activities
Engaging

intheAftermarket

Technical

Service

Department, we have many chances to meet customers
from agents, suppliers, and maintenance shops insideand outside Japan, and hear opinions and requests
directly from them through the technical lectures andvisit to customers as a part of our business activities.
Active collection and analysis of such information
regarded as being important for the market will lead us
to our mission in the future. We have been conducting
activities for developing awareness of “Preventive
maintenance/preventive

replacement”

throughour

technical lectures and other opportunities as theAftermarket Technical Service
Department
Automotive Components Sales &Marketing DivisionKinjo

outcome of our communication with many customers.
Collecting “real opinions” of our customers will be continuously conducted as our most important
task.

49

CSR＞With Our Customers > Communication to Customers

Responding to Inquiries and Complaints
Inquiries and complaints on our products received from customers are first accepted at oursales division. Then the quality assurance division works together with the technical division toquickly respond and take necessary actions to the inquiries and complaints.

Response to Inquiries or Complaints

Sending Information on Website“PLUG STUDIO” is a website that disseminates detailed information about our products
including NGK spark plugs. Customers can also search for the part number that matches theirvehicle and model. The website also features information on motor sports, primarily teams
supported by NGK SPARK PLUG CO., LTD. as well as upcoming exhibitions and events.
We have set up an official Facebook account for NGK SPARK PLUG CO., LTD. to further inform
more customers of the NGK spark plug brand.

PLUG STUDIO ＞

Facebook NGK SPARK PLUGS＜Official＞ ＞

50

CSR＞With Our Customers > Communication to Customers

Communication through Exhibitions and Events
We make sure to have PR booths at exhibits and motor sports events.
These provide valuable opportunities that allow us to meet with customers and explain our
products and technologies directly, and we also use these opportunities to identify constantly
evolving needs.

PR booth exhibits at race circuits
In fiscal 2016, we exhibited a total of six times in PR booths at
race circuit venues while motorcycle and automotive racing
events were being held. In addition to introducing our
products to motor sport fans, we held stage events manycustomers participated in.

On April in that year, we

supported SUZUKA 2&4 race, the greatest form of motorcycle
and automotive racing events held in Japan as the title
sponsor.

We succeeded in making close link between the2016 NGK SPARK PLUGSNGK spark plug brand and the motor sports known to a wideSUZUKA 2＆4 RACE

range of customers

Participation in Automotive Engineering Exposition 2016
We participated in “Automotive Engineering Exposition 2016”
in Yokohama and Nagoya, as the exhibition specializing in
automotive technologies. We introduced our key products
including spark plug, glow plug, and various types of sensors
all contributing to improved fuel efficiency and emission
reduction.
visitorsby

We also introduced our latest technologies todemonstrating

the“compact

multi-gasmeasurement device (NCEM®)” capable of measuringexhaust gas of the traveling vehicle, and the “hydrogenleakage detection sensor” as the requisite component for thefuel-cell vehicle.

51

AUTOMOTIVE ENGINEERINGEXPOSITION 2016
YOKOHAMA

CSR＞With Our Customers > Communication to Customers

CEATEC JAPAN 2016
We participated in “CEATEC JAPAN 2016” as the international
exhibition

specializing

inImage,

Information,

Communication, which is the largest scale in Asia.

We

exhibited the product group of various ceramic packages,“hydrogenleakagehydrogenpermeable

detection

sensor”

membrane”

and“palladium

contributing

to

the

hydrogen energy based society, the all-solid battery essential
for the next-generation vehicles and energy field, and

CEATEC JAPAN 2016environmental-friendly lead-free piezoelectric material.

Responding Product Defects
We make it a rule that any product defect we have detected and found to possibly cause harm
to customers be immediately announced to the public through our websites, newspapers, trade
journals

and

other

media

as

appropriate

and

that

countermeasures against such defects to protect all users.

52

wesimultaneously

implement

CSR＞With Our Shareholders and Investors

With Our Shareholders and Investors
Information Disclosure Policy
Aiming to become an enterprise capable of receiving great support and popularity frompeople around the world, we strive to conduct transparent business operations and fair
information disclosure.

Action Guidelines
 We disclose any corporate information required to be disclosed by the Financial
Instruments and Exchange Act and other laws and regulations, in an accurate and timely
manner.
 We actively disclose our corporate information, which is not subject to laws andregulations however deemed to be important for stakeholders, through our daily actions,such as issuance of press releases and updates of our website.
 We focus on enhancing communication with our shareholders, investors, and otherstakeholders to further promote mutual understanding with them.

Basic Philosophy
At NGK SPARK PLUG CO., LTD. we are well aware that promoting transparent and fair
information disclosure is indispensable to having all our stakeholders better understand andevaluate our business operations. To achieve this goal, in addition to meeting the legal
standards of information disclosure, we also strive to strengthen information disclosure throughvarious media and promptly release information on our website, with the aim of ensuring
stakeholders' greater trust in our business operations.

Investor Relations >53

CSR＞With Our Shareholders and Investors

Facilitation of exercise of rights in shareholders’ meeting
We send out the notice of convocation for our Ordinary
General Shareholders’ Meeting even earlier than the legal
deadline so that shareholders can give adequate
consideration to the reports and resolutions. Additionally,
we try to carry out earlier disclosure by releasing theinformation on the company website before sending outof the notice.

We also translate part of the notice ofconvocation into English for overseas shareholders andpost it on the company website in parallel with theJapanese version.
Furthermore, we are striving to create a suitable

The 116th general meeting ofshareholders(June 29, 2016)environment for the exercise of shareholders’ rights, including making it possible to exercise
rights from a PC or a mobile phone in addition to the exercise of rights in writing.

Expanding disclosed contents of IR materials
We have reviewed the contents disclosed in IR materials
for expanding the scope of the disclosure for deep
understanding of stakeholders with respect to NGKSPARK PLUG CO., LTD. by adding the items frequently
inquired by investors.
Going forward, we will continue to develop the systemthat prioritizes “positive communication” and “fairinformation disclosure” to meet diversified needs ofshareholders and investors inside and outside Japan.

IR material

Engaging in Activities to Make Shareholders and Investors
Familiar with NGK SPARK PLUG CO., LTD.
We hold company briefing sessions for shareholders and investors. In fiscal 2016, in order tomake our company highly recognized nationwide, we visited areas all over Japan to try to hear“real opinions”. We will continue to value dialogue with all investors and our shareholders.

54CSR＞With Our Shareholders and Investors

Voice of Our Investor Relations Representative

Aiming to Raise Corporate Value
Our goal in the Public Relations Department is to get all
stakeholders to understand the company “accurately,” “deeply,”and “constantly,” to raise corporate value.
Going forward, we will continue to make every effort todisseminate the appropriate information and raise the quality ofcommunication.

Public Relations Dept.
MatsunoReturning Profits to Shareholders
Returning profits to our shareholders is one of the most important policies for our management,
and have consistent and stable payment of dividends as a basic policy. We also consider the
return of profits in line with earnings as important, and we plan to continue the payment ofinterim and year-end dividends with a target consolidated payout ratio of at least 30%, giving
comprehensive consideration to a stable dividend level, which is our basic policy, and internal
reserves to allocate capital expenditure and investment for the R&D required for our future
growth, and business expansion and streamlining.
Furthermore, we also recognize that repurchase of own shares is effective for increasing capitalefficiency, and we hope to carry out such acquisitions as necessary.
The dividend per share during fiscal 2016 was 42 yen.

55

CSR＞With Our SuppliersWith Our Suppliers
Procurement Policy
We aim to realize globally optimal procurement based on our quality products principle. To thisend, we focus on strengthening cooperation with suppliers and promoting our CSR efforts
throughout our supply chain system, while at the same time striving to carry out properpurchasing transactions when procuring materials and parts, based on the following guidelines.

Action Guidelines
 We conduct rational transactions based on fair, transparent, and open competition.
 We select suppliers based on comprehensive assessment of product quality, technology,
prices, deliveries, and efforts to continuously make improvements.
 We will enhance mutual trust with our suppliers, which are good partners for us, and strive
to realize mutual development.
 Aiming to become a good corporate citizen, we engage in business operations that comply
with applicable national and international laws and regulations.
 Aiming to procure more eco-friendly products, we strive to promote our green suppliersystem.

Basic Philosophy
It is indispensable to establish healthy partnerships with our suppliers to procure better quality
raw materials and parts in a more timely and stable manner. We will carry out activities formutual growth while competing with one another with a rather tense atmosphere through our
supply chain system for enhancement of the mutual trust.

Promoting CSR-Oriented Procurement
We promote the following activities for suppliers and our employees respectively, for the
purpose of ensuring fair transactions with suppliers and the establishment of mutually beneficial
sound partnership with suppliers.

56

CSR＞With Our Suppliers

For suppliers We explain our “CSR procurement guidelines” on our websites.
 We implement our CSR program with suppliers self-checklist and provide feedback on theoverall results.
 We explain our “Green Procurement Guidelines” on our websites.
 We visit the premises of suppliers for practical onsite activities, such as 5S* kaizen(improvement) and Total Productive Maintenance (TPM), and hold various seminars.
 We actively communicate with our suppliers to explain our corporate policy throughcorporate policy conferences, etc.
* 5S denotes five primary phases of workplace organization technique each starting from “S”,
including “Seiri (Sort)”, “Seiton (Set in order)”, “Seisou (Shine)”, “Seiketsu (Standardize)”,“Shitsuke (Sustain)”. The workplace where 5S is thoroughly practiced may be regarded as
being of high operation management level.

For our employees We hold seminars for our procurement personnel to ensure their compliance with the
Subcontract Act.

CSR Procurement Guidelines
In order for the NGK SPARK PLUG Group to put CSR into practice, it is necessary that ourbusiness partners understand and cooperate with us on a daily basis. Toward that end, in the
procurement policy that we established in April 2012, we indicated that we would promote our
CSR efforts throughout the supply chain. In May 2013, we established the NGK SPARK PLUG
Group CSR Procurement Guidelines and subsequently extended it to our business partners.
The “CSR Procurement Guidelines” describe the content of our initiatives in seven areas: humanrights and labor; occupational health and safety; environment; fair trading; product quality andsafety; information security; and contribution to society. We ask our business partners tounderstand the purpose of these guidelines and to put them into practice as well as to allow
suppliers to develop the guideline.
In the field of the environment, we have established content for overall initiatives such asenvironmental conservation activities and the effective use of energy resources. With respect tothe details of chemical substance management, we have separately established, and request
cooperation with, our Green Procurement Guidelines.

57

CSR＞With Our Suppliers

English version: Text of CSR Procurement Guidelines
Japanese version: 【Appendix】CSR Self-Check List
Japanese version: Text of CSR Procurement Guidelines

Voice of Our CSR Procurement Manager

To Continuously Develop along with Our Suppliers
Calling for changing "from a cost center to a profit center," our
Procurement Group aims not just to engage in conventional
cost management, but to build an organization that can closely
connect NGK SPARK PLUG CO., LTD. with suppliers throughpurchasing and make proposals and value propositions. CSR is
one important element of value that a company can offer.
Therefore, we produced “CSR Procurement Guidelines”, andmade overall assessment of suppliers' trend through aGroup Manager
Procurement Group
Maeda

suppliers’ self-checklist, and provided feedback on the results.
We aim to pave the way to continuous social progress through promoting CSR and mutual
development together with our suppliers.

58

CSR＞With Our Suppliers

Green Procurement Guidelines
These guidelines explain the basic concepts of our green procurement based on ourenvironmental policies. We reviewed the list of related chemical substances in January 2018
and released version 10.03 of the guidelines. We ask our suppliers to study the guidelines andcooperate with our green procurement.

Japanese version: Green Procurement Guidelines
Survey sheet
Japanese version: appendix table-1 Survey regarding the presence or absence of "substancesof environmental concern"
Japanese version: appendix table-2 Non-use Declarations

Green Suppliers
We certify suppliers that meet our system and material standards prescribed in “Green
Procurement Guidelines” as "green suppliers," and give priority to these in purchasing.
In fiscal 2016, we conducted screenings of suppliers involved in facilities/jigs and tools,
building/incidental facilities, and subcontract processing/inspections, resulting in new green
supplier certification for 62 companies and continued certification for 79 companies.

59

CSR＞With Our Suppliers

Implementing

Activities

to

Pull

out

Potential

Capabilities(Seminars and Practical Onsite Courses) for Suppliers
NGK SPARK PLUG CO., LTD. holds seminars for suppliers on themes that include process
improvement, quality control, industrial safety and health, and the environment, as well aspractical onsite courses in which we visit the production sites of suppliers to work for
improvements. We implement the activities to help with human resource development at our
suppliers, enhancing the capabilities of their companies. In fiscal 2016, we held a total of 25
lectures. We aim to work in partnership with our suppliers in the future to enhance their
manufacturing capabilities.

Promoting Follow-Up Activities for Regular Supplier Assessments
Once a year, we conduct regular assessments of targeted suppliers and inform them of theresults. We visit suppliers where follow-up is particularly required to consult about difficulties,
carry out onsite confirmation, consider together what to improve so as to overcome
weaknesses and implement improvement activities. We will continue to further deepen our
relationships of trust with suppliers not only through day-to-day purchasing transactions, butalso through follow-up and support activities.
Voice of Our Supplier Improvement Promotion Organizer

Improvement through Communication
Our hope is to communicate well with suppliers throughfollow-up activities for their “Continuous Improvement”.
Rather than asking them to implement the improvement
activities one-sidedly, we try to hear their opinions face to face
for leading to the mutually beneficial improvement.
Procurement Div.
Shimizu60

CSR＞With Our Suppliers

Sharing Corporate Policy
We hold a corporate policy conference with our
main suppliers, offering them an opportunity to
deepentheirunderstanding

of

the

present

situation of our company and our goals. At theconference held in May 2016, we introduced ourbusiness results, the company’s policy and thepolicies of each department, which are based on
the basic policy, procurement policy and initiatives,and asked for further cooperation to enhance

Corporate Policy at Supplier Conference

quality, reduce costs, and promote CSR initiatives.

Handling of Conflict Minerals
Our Group promotes procurement activities taking full consideration of social problems, such as
human rights and environment. Conflict minerals have been mined in the Democratic Republicof the Congo and its surrounding countries, and it is feared that they are a source of financing
for armed factions. We see this conflict minerals issue as a serious social problem for procuringresources and raw materials.
We conduct surveys tracing back through the supply chain to find out whether conflict minerals
are used or not, and if there is a risk as a result of the use, we make efforts to avoid using them.

61CSR＞With Our Employees > Policy for Human Resources

Policy for Human Resources

Human Resource Policy
We acknowledge that employees are the most important management resources. In light of
this, we respect the diversity and individuality of our employees and promote the cultivation ofphysically and mentally healthy human beings, striving to promote the further development of
our Group as a whole.

Action Guidelines
 Respecting the rights of our employees, we eliminate discrimination and harassment in
employment, and avoid the use of forced labor or child labor.
 We secure and foster human resources who help pass down our quality products principle
to the following generations. To this end, we provide learning opportunities and otherprograms to support the career development of our employees.
 We strive to smoothly introduce a personnel system that ensures that people withdifferent qualities can fully realize their own capabilities into our Group.

Basic Philosophy
Employees are the most important management resource. We promote the sustainable growthof the NGK SPARK PLUG Group by striving for human resources development that respects thediversity and individuality of our employees and by encouraging individual employees to reach
their own full potential, to grow and to participate actively in a state of physical and mental
health.

62

CSR＞With Our Employees > Policy for Human Resources

Voice of the General Manager of Human Resources Department

Passing on a Richly Diverse Corporate Culture Forged through Global
Activity and Producing Human “Assets” with Resilience to Change
Based on the mission of the Human Resources Department,
which is “creating foundations to produce ‘diverse humanresources’ to support managerial and business strategies,”
we are promoting the strengthening of individuals andorganizations to identify environmental change in global
business activities as opportunity, take on the challenge andact promptly.
In order to strengthen the foundations, we will work to
upgrade skills while keeping each individual physically andmentally healthy and foster a mindset that takes advantage
of diversity. In addition, we will train and support human

General Manager
Human Resources Dept.
Goto“assets” that can contribute to providing the value expected by our customers around theglobe and to creating new value derived from co-creation activities through opportunities thatfacilitate the expression of a can-do spirit in each role.

63

CSR＞With Our Employees > Respecting Diversity

Respecting Diversity
Basic Philosophy
We promote diversity in our organization as we believe that diversity and inclusion are essential
for companies to attain sound growth and ensure happiness for all employees. Here, diversity
means an employee-friendly workplace that accepts different personnel "assets" (one in which
all people regardless of their gender, age, disability or nationality, enjoy their work) and includes
diverse values and ideas that move the company forward.

Strengthening and Maintaining Initiative to Promote Active
Participation of Women
We are promoting the active participation of women as a management strategy from the top
down. The “DIAMOND Project” launched in June 2013 with the following principles: “changing
the corporate culture,” “changing the consciousness,” and “changing the environment.” We hold
events, such as "Forum for Female Employees," "Training for Next Generation Female Leaders,"
and "Career Advancement Support Program," “Career Training for Employees Returning fromChildcare Leave,” and “Women’s Networking” to support female employees in building theircareer and to stimulate their ambition. We also held lecture meetings and training sessions forall senior managerial employees once or twice a year to deepen their understanding of diversity
management.
Furthermore, in all departments, including those of Japanese group companies, generalmanagers devised and implemented action plans that suited their own departments. In fiscal
2016, we presented Encouragement Awards to departments with outstanding initiatives. We
are also expanding systems to create a workplace that is more comfortable for female
employees. Receiving approval for those activities, in fiscal 2016, NGK SPARK PLUG CO., LTD.
was designated as one of Diversity Management Selection 100 (sponsored by Ministry of
Economy, Trade and Industry), and also one of Semi-Nadeshiko brands (jointly planned by
Ministry of Economy, Trade and Industry and Tokyo Stock Exchange).

64

CSR＞With Our Employees > Respecting Diversity

Number of Female Employees
in a Managerial Posts by Fiscal Year

Proportion of female employees to the whole workforce
Corresponding to regular full-time position65

CSR＞With Our Employees > Respecting Diversity

Voice of the Project Leader

We Aim to Create a Company Where All Employees Can Play an Active
Role
Working on promotion of diversity management has
gradually made us realize the change. Aiming at thecompany allowing every employee to play an active role
and actualize the idea, we will positively take theinitiatives in promotion.

Member of DIAMOND Project(in the front row, third from theleft: Project Leader Otsuka)

Utilizing Retired Employees
Employment of the elderly population is an important issue for our society, as the starting age
for recipients of the national pension has been increased and the shift into an aging society is
progressing. In 2001, we introduced a post-retirement reemployment system for providing
work opportunities to retired employees so that their long-accumulated knowledge andexpertise are effectively utilized.
We are working hard to prepare an environment that meets the needs of elderly workers, ourcompany and the worksite and use it in a way that takes into consideration the aptitudes,
motivation and abilities of senior employees.

66CSR＞With Our Employees > Respecting Diversity

Number of Retirees Reemployed under the System

Employment of the Disabled
Although the ratio of disabled employees at NGK SPARK PLUG CO., LTD. as of March 31, 2016
had increased slightly from the previous fiscal year to 1.90%, we were unable to meet thestatutory employment rate of 2.0%. Recognizing that falling short of the statutory employment
rate is an issue, we are visiting Hello Work public employment centers, Labor Bureaus, andcompanies that are pioneers in this area and considering what action to take.

Percentage of Disabled Employees* Data at the end of fiscal year67

CSR＞With Our Employees > Respecting Diversity

Global Human Resource Development for Securing Management
for the Next Generation
In fiscal 2011, we appointed officers of the overseas
group companies to GEM (Global Executive Members).
Every year, we hold global management meeting that
GEMs are present as main attendants for discussing
about the global management issues such as brandstrategy and human resource strategy. Such meeting isheld for fostering of GEMs as well as collection of various
opinions from various nationalities besides those fromJapanese.

GEM participants

Additionally, in view of the globally expanding business operation, we have launched “Global
Next-generation Management Personnel Development Program” for discovering and developing
personnel eligible for the next-generation management among those from all group companies.
We conduct hiring and recruitment of human resources regardless of nationality for providing
opportunities and environments enabling every employee to do a worthwhile task.

In recentyears of great environmental change, the program is intended to offer learning opportunities forthe subject personnel representing the next generation, and is called “HAGI” taken from
“Shokason-juku” as private school located in Hagi-shi, Yamaguchi prefecture, from where many
talented people went out into the world in the end of Edo era. The program has been offeredsince fiscal 2016 under the administration of President serving as the principal.

68

CSR＞With Our Employees > Respecting Diversity

Voice of a Global Human Resources Organizer

Aiming at Promotion of True Globalization
We have been increasingly globalized by taking
opportunity of the largest-ever acquisition of overseas
company

in

2015,

for

example.

Company

management in such times needs the humanresources capable of thinking and acting from a global
perspective. There may cause the risk of shortage of
personnel

adaptable

toglobalization

unlessnon-Japanese employees are recruited from all groupcompanies.

Every year from 2013, our Human

Resources department has been holding “Global

Global Personnel Office

Personnel Meeting” including employees in charge of

Human Resources Dept.

personnel operation as major members, intended topromptly share and solve the problem concerning human resource development with wholegroup members.
We will promote global human resource development for the purpose of enhancing collective
efforts of our group.

Focus on Employing Non-Japanese Nationals
We have been working on personnel recruitment adapted to the global organization in responseto rapid globalization.
Since 2013, we have started putting a particular focus on employing non-Japanese nationals in
our new graduate recruitment, and have consistently employed at least three non-Japanese
students each year.
Moreover, recently we have not only been putting efforts into employing foreign students at
Japanese universities, but also non-Japanese students who have learned Japanese atuniversities overseas and wish to find work in Japan69

CSR＞With Our Employees > Respecting Diversity

Initiatives that Consider Work-Life Balance
We are promoting initiatives that consider
the work-life-balance of our employees.
The number of employees on childcare
leave is approximately 50, and recently,
male employees take leave every year as
well.

Almost all employees returned towork after the leave.
In 2015, we have changed the shortworking hour system by allowing thedivided use of the system up to 3 times
within the term from fiscal 2017 in addition
toextensionofavailability

from

the

conventional term of the first grade ofelementary school to the end of the third
grade.

This makes it possible for the

Number of Employees Using the Leave Schemes

employees who wish to use the system tospend more time with their children.
We have introduced another short working hour system for nursing care since 2017. In thisway, we will work for actualizing the environment that allows diverse human resources to be
active in the respective workplaces.

70

CSR＞With Our Employees > Human Resource Development

Human Resource Development
Basic Philosophy
We aim at the development of those who can communicate the company's traditional attitude
of emphasizing quality-oriented principle to younger employees, and also those who aredependable and have the ability to cope with changes inside and outside the organization andfollow through reforms. To this end, we implement diverse education and training programs
systematically, based on our corporate Human Resources Development Concept, with the aimof ensuring continuous capacity building of employees.

Education / Training Programs
Our education and training activities consist mainly of OJT(on-the-job-training), through which employees are trained toacquire technologies and knowledge in their normal working
situation. We also offer OFF-JT (off-the-job-training), providing
employees with new technologies, knowledge, and skills outside
their respective workplaces.
We have a wide range of OFF-JT programs that include training byorganizational level and role to provide necessary knowledge andskills,product

qualityeducation,

environment

andsafetyeducation, manufacturing education, education in global businessand career development support. During fiscal 2016, 6,754

Education and training

employees participated in OFF-JT programs.
We are promoting ETP (Education & Training Planning) system intended to improve ability of
employees necessary for the individual departments besides provision of the education
programs.

In reference to the abilities needed by the company in the expected role evaluationof the newly introduced personnel management system, those necessary for the individual
departments are specifically defined. Then the system will be implemented by conducting the
education and training systematically for improving the specific ability.

Evaluation andeducation in the respective departments for the ability improvement are coordinatedintegratedly so that the system is operated to achieve the companywide improvement forcompetitiveness.
71

CSR＞With Our Employees > Human Resource Development

Education and Training System Diagram

Implementation of training(Hours)Total hours of training*

FY2014FY2015FY201688,33382,05984,816*The total of hours x the number of students, for training (level-specific training, global training etc.)
conducted by the Human Resources Dept. Training not conducted by the Human Resources Dept. is
not included.

Efforts to Upgrade Monozukuri Skills
NGK SPARK PLUG CO., LTD. is a manufacturing
company, and maintaining and upgrading ourmonozukuri (manufacturing) skills is essential in
order

to

continue

producingqualityitems.

However, there are concerns about a decline inmonozukuri skills in companies in general due tothe mass retirement of the baby boomers and theshift of young people away from monozukuri withthe changing times. Therefore, we established the
Monozukuri Education and Training Center andcontinually provide education and training on thenecessary knowledge and skills at the appropriate
72

Practical training in the use of tools

CSR＞With Our Employees > Human Resource Development

times.
At the Monozukuri Education and Training Center, we prepare practical experience kits and havethe elaborated curriculum corresponding to the level of knowledge and skills of the trainees(levels 0-3) so that they can complete the work on an interactive basis in the small group. The
education and training is centered on “safety, quality, maintenance, and improvement”, basedon which we establish rules to be observed by the trainees.

We place importance on

development of human resources through the education and training so that they are well
adapted to social life. Since establishment of the system in 2014, we are providing education
for new employees (Level 0), education for departmental transferees, seminars for suppliers,
education for general applicants, and education for manufacturing departments. We haveupgraded those programs to support overseas business activities and enhance the curriculums.
We also engage in development of e-learning educational environment.

73

CSR＞With Our Employees > Human Rights and Labor

Human Rights and Labor
Basic Philosophy
The NGK SPARK PLUG Group respects the Universal Declaration of Human Rights and otherinternational norms, and has made respect for human rights a part of our corporate code of
conduct and our human resource policy. In addition, the group rules that we share throughout
the NGK SPARK PLUG Group forbid discrimination on the basis of nationality, race, ethnicity,religion, sex, marital status, pregnancy, ideology, sexual orientation (LGBT), disabilities, andparticipation in labor unions, as well as all forms of harassment, child labor, and forced labor. In
hiring and employment, too, we stipulate the granting of equal opportunity without
discrimination.
Principles concerning human rights and labor are incorporated in the ten principles of the United
Nations Global Compact which we joined in November 2016.The Group supports theseprinciples and will connect them to our further activities.
Participation in "United Nations Global Compact" >The Status of Employees
NGK SPARK PLUG Group, total number of employees(Persons)
FY2012FY2013

FY2014FY2015FY2016

Non-consolidated

5,881

5,809

5,823

5,829

5,719

Consolidated

12,563

12,76013,197

14,524

14,926NGK SPARK PLUG Group, form of employment (as of March 31, 2017)(Persons)
Regular employees

Temporary employees

5,719

346

74

CSR＞With Our Employees > Human Rights and LaborNGK SPARK PLUG Group, status of employees（FY2016）Men
No. of employees

Women

Total

4,822

897

5,719

Average age

38.6

35.9

38.2

No. of years of service

16.4

15.2

16.2

Turnover rate

---

---

1.3%

Average annual salary

---

---

\6,767,466

Education and Awareness-Raising of Human Rights
Our Compliance Guidebook, issued in 2012, establishes matters including respect for humanrights and the prohibition of harassment. The guidebook has been disseminated to employees
to raise awareness of these issues.
Drawing on the United Nations Global Compact, which we signed in 2016, we will increase
opportunities to offer education and information on human rights to raise awareness among
employees.
In our CSR Procurement Guidelines, we also require that business partners engage in respectfor human rights.

Anti-harassment Measures
The company management and the labor union are working together to prevent any
harassment and to protect the human rights of all employees.
Work Rules explicitly prohibit all sorts of behavior that constitute harassment, and we have ananti-harassment committee responsible for the prevention of such behavior by raisingawareness through the company newsletter and provide level-specific training programs.
We have also prepared an environment that facilitates consultation, with consultation desks set
up by labor and management in every factory, and have also enabled consultation through our
Corporate Ethics Helpline.

Labor-management Relations
Labor-management relations should be oriented to the combined employer-employee effort tocontribute to society through the provision of good products and services. At NGK SPARK PLUG
CO., LTD., both labor and management understand their respective responsibilities and strive toimprove the work environment through mutual trust and cooperation.
Labor-management conferences are held three to four times a year on individual workplace and75

CSR＞With Our Employees > Human Rights and Labor

companywide bases, providing communication opportunities. These are chances to discussvarious topics including the company's situation and how to improve the labor environment,
and opportunities for employees to have their opinions heard.

Reduction in Working Hours
We are working to reduce overtime in order to reduce total working hours. When pre-planned
overtime is known about, the company management and the labor union confirm the situationin the workplace and engage in consultation designed to keep working hours within the target.
As a result of addressing the issues discussed in the “committee on labor-management working
style”, we are promulgating no-overtime Wednesday and in-principle prohibition of late-night
overtime in excess of five hours per day.

The case failing to comply with the rules is expected

to be subject of the labor-management consultation as a strategy for suppressing overtime
work.

Greeting Campaign
We have been engaging in our "greeting campaign"continuously since September 2008, encouraging
employees to greet with each other, motivating themfor work in the positive environment.
Once a month, in the morning and after work,
representatives of the labor union and the company’s
officers and management stand on the sidewalks at
the premises to greet arriving or leaving employees inan active manner.

Scene from the Greeting Campaign

Group Company Response to ComplianceGroup companies as a whole have been addressing the issue of information sharing forcompany compliance with the latest applicable laws and regulations. In the quarterly exchange
meeting where general managers of the group companies attend, the briefing is made withrespect to the policy based on current trends in applicable laws and regulations. We have beenworking to develop the group-wide risk management system by sharing the problems raised by
the individual group companies as those that they face, and presenting case examples. The
entire group continues to join hands in compliance issue.

76CSR＞With Our Employees > Occupational Safety and Health Basic Policy

Occupational Safety and Health Basic Policy
Basic Policy on Industrial Safety and Health
We strive for occupational safety and health as the starting point of business activities on thebasis of respect for human life and dignity.

Action Guidelines
 Observe the laws and regulation, and voluntary standards on industrial safety and health.
 Prevent occupational injury and decrease risks by continuously improving on the
management system and performance of industrial safely and health.
 Conduct efforts to increase physical and mental health, and prevent health disabilities of
employees.
 Disseminate this policy to all employees, promote awareness by education andenlightenment, and expand the industrial safety and health activities by involving all
employees.

Basic Philosophy
Occupational safety and health is the most familiar theme for employees in their daily duties. It
is the most important theme for enterprises as well in their efforts to provide a working
environment in which employees are encouraged to do their best in operations. We are wellaware that offering a secure and safe workplace is our important corporate responsibility.
To this end, we established our occupational safety and health management system (OSHMS)
in 2006, aiming to realize "zero injuries" and secure safety at all workplaces. We will continue
strengthening our safety and health management activities at a company-wide level, aiming toestablish a corporate culture of "safety first."

OSHMS
With the aim of eliminating on-the-job injuries and creating a comfortable, safe work
environment, we have established an in-house occupational safety and health management
system (OSHMS) while introducing OHSAS*1 for entire system such as manual and standard,77

CSR＞With Our Employees > Occupational Safety and Health Basic Policy

and JISHA*2 for actual application and activities. We are accredited as complying with JISHA
OSHMS Standards.
Each plant and office set safety goals and safety plans in accordance with our OSHMS guidelines,
aiming to conduct OSHM activities based on a "total involvement" principle. To attain a
step-by-step improvement of our safety status, the progress and results of such OSHM efforts
are verified by our internal safety and health auditors as well as the plant safety and healthcommittee and the central safety and health committee.
*1 OHSAS: OHSAS18001 is a management system standard which allows the organization topresent its attitudes toward Industrial Safety and Health to its employees and society. The
standard has not been standardized by ISO, but widely adopted around the world.
*2 JISHA: JISHA system is a standard examined by Japan Industrial Safety and Health
Association (JISHA), and organizations accredited by JISHA, incorporating items as theincidence typically practiced in Japanese workplace, for example, KY activities, Hiyari-Hatto(near-miss) activities, and 4S activities.

Safety and Health Promotion Organization

78

CSR＞With Our Employees > Occupational Safety and Health Basic Policy

Targets & Results for Fiscal 2016
1. Elimination of Work-related injuries
Fiscal 2016 Target

Fiscal 2016 Result

Evaluation

Fiscal 2017 Target〇

・Elimination of injuries

Elimination of injuries in

Two cases of injuries introuble shooting

trouble shooting occurred,in trouble shooting

decreased from the fiscal

・Grasping the risk level2015 (3 cases), indicatingof workplace,progress towards eradicatingpromotion of risk

the injuries.

management〇

・Safety observation

Full understanding of

Risk accessment was

the risk level of

conducted as scheduled atpromoted by the

workplaceeach workplace for fullsupervisor

understanding of risk levels.

2. Improvement of Work Environment
Fiscal 2016 Target

Fiscal 2016 Result

Evaluation

Fiscal 2017 Target○

・Improvement of work

Improvement of work

Conducted working

environment ofenvironment measurement,

environment of

workplace (Healthbased on which the working

workplace (Healthaspect/ Safety aspect)environment was improved.

aspect / safety

Continued Stop ! fall

aspects)

disaster PJ related activities
for promoting improvement.

79

CSR＞With Our Employees > Occupational Safety and Health Basic Policy

3. Promotion of Healthiness
Fiscal 2016 Target

Fiscal 2016 Result

Self-management

Conducted checking on

promotion of a healthy

employee's stress tolerance.

Evaluation〇

Fiscal 2017 Target
・Self-management
promotion of a healthy

mind and bodymind and body

Workplace inspection forHeld health promotion fair,personnel withand lecture on health.

〇・Strengthening ofworkplacesuspected physicalcoordination between

and/or mental healthpersonnel and those

problems

who should take careof physical and mental
health problems

4. Enhancement of Education and Enlightenment
Fiscal 2016 Target

Fiscal 2016 Result

Evaluation

Fiscal 2017 Target

Promotion of Line

Conveyed the safety

Production Head-based

observation method to thepractice of safety andsafety observation

respective work sites,

health education atallowing line managers to

the workplace

conduct safety observation.

・Familiarization with〇・Promotion andrisk prediction.※1

Practice and Promotion

Held special educationof safety and healthprogram for various safety

Establishment of "Po・

education at theand health education

Ke・Te・Na・Shi"workplacecommittees, and operators

program※2

for handling chemicals.

・Promotion of traffic

Continuously held safety andsafety awarenesshealth, and environment

activities bymeeting at the respective

conducting risk

plants in fiscal 2016 forprediction driving〇

raising awareness on safety
and health.
Familiarization with

Promoted establishment ofimmediate action KY,

activities by sharing

and pointing and calling,

information from the safety

Follow company andand health committee, andfactory rules

workplace patrolling.
80〇

CSR＞With Our Employees > Occupational Safety and Health Basic Policy*1: “On-the-spot risk prediction” refers to the activity performed in our company for confirming
hazardous spot and procedures prior to work that is infrequent or has not been performed for along time.
*2: “Po・Ke・Te・Na・Shi” (Pocket-Phone-Handrail-Shortcut-Pointing”) is a general term indicating
precautions to protect workers from being involved in an accident during walking on theworkplace, for example, “Do not walk with hands in Pockets.”, “Do not use the cell Phone during
walking.”, “Make sure to hold the Handrail while ascending or descending stairs.”, “Avoid obliquecrossing (Shortcut)”, and “Never fail to conduct Pointing and calling at the point specified for
conducting such practice.

81

CSR＞With Our Employees > Occupational Safety Activities

Occupational Safety Activities
Basic Philosophy
We have been conducting various safety activities for prevention of accidents besides
recurrence prevention.

Aiming at establishment of safety culture from the viewpoint of“personnel”, “object”, “mechanism”, we are taking the initiative to give the first priority tosafety.

Toward Elimination of Occupational Accidents
In fiscal 2016, the total number of accidents was 9 (fiscal 2015 : 13 cases), and the totalfrequency rate was 0.74.
One out of the 9 cases was the accident requiring leave from work (fiscal 2015 : 1 case). In
this case, the employee suffered cut-wound accident, whose hand injured with sharp part of thejig.

The total number of accidents and those related to a part of the equipment in operation

which are likely to cause the serious risk results in reduced tendency. We will continue to takethe lead in “safety observation”, “pointing and calling”, and “on-the-spot risk prediction” forpractically doing away with occupational accidents.

In fiscal 2015, the total number ofaccidents involved with temporary workers was 4. We took countermeasures by preparing
education materials in Japanese, English, andPortuguese in collaboration with temporary employment agencies for enhancing safety andhealth education. As the consequence of our efforts, no accident that the temporary worker
involved in occurred in fiscal 2016.

82

CSR＞With Our Employees > Occupational Safety Activities

Safety observation* Frequency rate of NGK SPARK PLUG CO., LTD.
covers the case of temporary workers
Frequency Rate of Accidents

Risk Assessment (RA) Initiatives
The risk assessment (RA) is the core activity of our occupational safety and health management
system (OSHMS). Since 2013, we have reviewed the RA, directing us to take the approach forevaluating diverse potential risks resulting from workplace equipment, chemical substances,and work, which have been derived from detailed research.

At present, we are in thetransitional stage from research/evaluation phase to the RM (risk management) phase. The
RM

gives

priorities

to

the

potentialrisks

researched/evaluatedhardware/software countermeasures (residual risk management).

by

RA

for

taking

The staff from theEnvironment & Safety Management Department performs resolution of uncertainties andfollows up progress for workplaces by conducting individual inspections.

In accordance withthe trend of strengthened regulations, we have reviewed the new approach for evaluatingchemical substances.

83

CSR＞With Our Employees > Occupational Safety Activities

Voice of Our Safety and Health Leader

Utilization of chemical substance management system
Recently, the regulations on management of chemical substances
has been increasingly severe, demanding us to strengthen thechemical substance management system. We have updated thechemical substance management system to cope with demandsof society. The updated system allows more efficient in-houseapplication of SDS (Safety Data Sheet), and makes management
items on the workplace easy understandable.

We haveincorporated the chemical substance RA function to the system.

Environment & Safety
Management Dept.
Suzuki

Improvement of Working Environment
We conduct working environment measurements based on laws and regulations, targeting
workplaces that handle chemical substances and workplaces subject to significant dust
pollution and severe noise.
Plants and operational sites that have been classified in the second or third management
category are especially encouraged to implement effective solutions so that they can bereclassified in the first management category.
We also take measures to prevent cases of heat stroke in the summer by measuring thehumidity and temperature in hot workplaces, encouraging an adequate intake of water and salt,
providing cooling gear and the like. In our offices, we appropriately control the level of lighting,temperature and humidity to ensure that the environment is suited to the work. In winter, weinstall humidifiers to help prevent the spread of colds and influenza. Continuously engaging in
the activities under the “STOP! Falls Project” being run by Japan’s Ministry of Health, Labor andWelfare, labor and management united as a company to promote activities aimed at eliminating
falls, including coping with fall hazard areas and separating pedestrians and vehicles, obtaining
input and countermeasures through the themes at workplace meetings, and raising awareness.

84

CSR＞With Our Employees > Occupational Safety Activities

Enhancement of Education and Enlightenment
We provide safety education to match each organizational level, including safety and healtheducation for new employees, third-year employees, tenth-year employees, leaders,
subsection chiefs and managers.
We also hold a safety, health and environment conference at each plant every year as anawareness-raising activity for all employees. During the conference, we work to raise
employees’ awareness of safety and health through such means as introducing safety andhealth initiatives and providing experiences with risk simulators.
We distribute the “Handbook for Safety and Health Management” to all employees as a tool forbuilding a safety culture at NGK SPARK PLUG CO., LTD. Reading through the handbook andother uses of it in each workplace translate into safe conduct by individual employees. Managers
and supervisors on the workplace also carry out workplace patrols, risk prediction and shareexamples of Hiyari-Hatto (near misses), acting as the leaders of workplace safety and healthmanagement. The status of these workplace activities is confirmed through internal audits andother means.

Safety and Health Education and Training in Safety Training Dojo
In order to provide education with a policy of believingthat cultivating the sensitivity of employees to be awareof risks avoids accidents, we established the Safety
Training Dojo in part of the Monozukuri Training and
Education Center in March 2013.
Utilizing 34 kinds of simulation equipment, employees of
NGK SPARK PLUG CO., LTD. and group companies
virtually

experience

about

accident

risk

and

the

circumstances in which they occur through simulations ofindustrial accidents that are difficult to communicate

Virtual reality simulation

verbally such as pinching or entanglement with accident
scenarios that could happen in the workplace.
In fiscal 2016, about 3000 participants experienced the program.
In fiscal 2017, we built the virtual reality simulation equipment focusing on fall/overturnprevention, and introduced the education intended to prevent the occupational accidents,
placing importance on behavior.

85

CSR＞With Our Employees > Occupational Safety Activities

Standing sentry for observance of rules led by Safety and HealthCommittee
The Safety and Health Committee promotes standing sentry for appealing observance of rules
as an activity aiming at a safe and secure human resources and workplaces.
The standing sentry especially places the importance on “pointing and calling”.

In the premiseof the plant of our company, the “pointing and calling” stickers are put on the points at theplaces such as pedestrian crossings. At the place withthe stickers, those who stand sentry demonstrate“pointing and calling” to encourage the co-workers toapply such action to their actual work.

Initially, some ofthem seemed to be passive about the “pointing and calling”
action.

However, the idea of the action has been

gradually spread and established among the employees
through practice of standing sentry. We will further
promote the “pointing and calling” to be the foundation forStanding sentry for observancethe safe and health activities as it is effective for reducingof ruleserrorsandleadingtopreventionofoccupational

accidents.

86CSR＞With Our Employees > Health Promotion Activities

Health Promotion Activities
Basic Philosophy
We announced "Being your best physical and mental condition to your workplace and bringthem to your home with good smile" as our company slogan. Self-discipline is a key to themaintenance of one's condition, and we promote employee's autonomous health management
efforts. We also include health information in the company newsletter to raise employees'
health consciousness and promote self-management.

Health Checkups
Our industrial physicians, general practitioners and public health nurses follow up with
employees with respect to findings in their health checkups and refer them to medical
institutions when necessary. These coordinated efforts allow employees to maintain andimprove their own health.

Strengthening of Mental Health Care
We are working on in-house and external
Line-Care educational programs for managers,
and implementing to read the Self-care hand bookin our workplace to make our employee prevent
awareness of disease and self-management ofhealth. Also we are strongly working on in-house
lectures and setting up the Support-line for
employees

who

feel

stressandproblems

mentally.
We also carry out stress checks and analyze themental and physical impacts that the workplace

The Self-Care Handbook

environment has on employees for prevention of mental illness among employees due to stressin our efforts to create a safe and secure workplace environment.
Thanks to the evaluation with respect to our activities, we have been certified as “Corporate
Health Achievement Award Winners – White 500” sponsored by Ministry of Economy, Trade andIndustry, and Nippon Kenko Kaigi.
87

CSR＞With Our Employees > Health Promotion Activities

Initiative to prevent infectious diseases
To protect employees from the seasonal influenza every year, we strive to prevent the spread of
infection. Particularly regarding group infection at workplaces, which may affect our daily
operations, we are ready to cooperate with the relevant divisions to implement immediate andintensive measures. During the flu season, we issue weekly reports so that all employees canshare the information and take effective countermeasures. In addition, we are attentive to
information on candidate viruses for novel influenza at all times by collecting relevant
information.
Voice of Our Disaster Control OrganizerContinuous Response for Infection Disease
We are concerned about new flu viruses, such as the swine flu(H1N1) in 2009, and the bird flu (H7N9) in 2013 being
prevalent on a global scale. Therefore, we aim to be prepared
to collect information and take countermeasures for apandemic.
Health Care Promotion
Human Resources Dept.
Sakakibara

Efforts by NGK SPARK PLUG CO., LTD. Health Insurance Society
Working together with the company and the labor union, the health insurance society provides
a wide variety of programs to support the mental and physical good health of member workers
and their families.
Specifically, health management and disease prevention efforts conducted by the healthinsurance society include: metabolic syndrome improvement / prevention programs; subsidies
for flu vaccination; and other health management promotion programs such as walking tours
and bus-hiking tours. The health insurance society also operates three clinics at our domestic
plants, as well as a resort facility for member employees in the Gokasho Bay area located in
Minami-Ise, Mie Prefecture.

88

CSR＞With Local Communities and International Society＞Social Contribution Policy

Social Contribution Policy
Social Contribution Policy
As a good corporate citizen, we at the NGK SPARK PLUG Group aim to contribute to society
through the effective use of management resources.

Action Guidelines
 We focus on the following activities:
 Activities closely related to our business fields and also to local communities
 Activities that respect the cultures of individual countries and local communities, aswell as activities that contribute to society such as traffic safety education programs
 Activities that contribute to the next generation society, focusing on environmental
conservation, science, and education, as well as cultures to be bequeathed to the next
generation, etc.
We strive to create a corporate culture that encourages executives and employees toparticipate together in social contribution activities as social citizens. We also respect andsupport their active involvement in society.

Basic Philosophy
The NGK SPARK PLUG Group respects local culture and customs in our established sites of therespective regions in the world while engaging in smooth communication with local
communities. As members of those communities, we aim to work together in building a
comfortable society, while striving to participate in regional development, environmental
preservation, and other activities that contribute to society.
Social Contribution Policy >Cultural activities >89

Sports activities >CSR＞For Environmental Protection > Eco Vision 2020

Eco Vision 2020

Environmental Policy
As a globally developing core manufacturing corporation, we are aiming to simultaneously
realize environmental preservation and corporate growth, based on the participation of all our
employees, in order to contribute to the construction of a sustainable society.

Action Guidelines
 We strive to utilize our unique technology to develop and offer environmentally-friendly
products.
 Through all of our business activities, we make particular efforts to prevent global
warming, make efficient use of resources, and control chemical substances, in order toconserve the environment.
 We strive to raise the awareness of the environment among our employees to ensure thatthey all make positive efforts to conserve the environment.
 We observe the laws, ordinances, and agreements concerning environmental
conservation.
 We aim to substantiate our information disclosure and communication activities, and also
carry out environmental contribution activities aimed at coexistence with the regional
community.
 In order to achieve these targets, we will strive to make ongoing improvements to ourenvironmental management system.

Basic Philosophy
Environmental issues are a common challenge for all mankind. Every member of the NGKSPARK PLUG's GROUP will work towards reducing environmental burdens from our businessactivities as much as possible and developing and providing products and technologies that
contribute to improving the environment. We will also endeavor to communicate in greater90

CSR＞For Environmental Protection > Eco Vision 2020

depth with our stakeholders including our local communities so that we may all work together
to contribute to creating a sustainable society.

Global Eco Vision 2020
In our activities for environmental conservation, we set medium-term environmental targets.
From fiscal 2016, we have drawn up a vision for our company and launched activities under“Global Eco Vision 2020”.
We set four important environmental tasks, "Natural resources", "Global warming", "Toxic,
hazardous chemicals" and "Key quality (Environmentally-Friendly products)", under Global Eco
Vision 2020. By tackling these tasks through our business activities while defining “Education”,“Compliance”, “Open communication” as foundation, we will work to enhance ourmanufacturing power, increase our brand value, and contribute to sustainable development ofsociety.

91

CSR＞For Environmental Protection > Eco Vision 2020

Environmental Action Plan and Results(Attachment : Results and Consolidation in fiscal 2016)
Major items

Minor items

Targets for fiscal 2020

Results for fiscal 2016

Global Warming

Production

CO2 Basic unit 5%【Target】 CO2 basic unit:

reduction compared to

1% decrease from fiscal

fiscal 2015

2015

(Average yearly【Result】 CO2 basic unit:

reduction of 1%)

3.3% decrease fromfiscal 2015
Conducted energy saving
activities across thedepartment by energy
saving promotion
sub-committee.

Logistics

Promotion of efficient

Optimized productlogistics

transportation between
plants.

Depletion of resource

Waste

Promotion of reduction of

Reduced wastes by

waste material bypromoting activities

reducing defective

along with regular

products

business operations, forexample, yield
improvement.

Promotion of productConducted

design which takes into

environmental impact

considerationassessment at theminimization of waste

product design stage
while considering
product life cycle.

Depletion of resource

Water

Promotion of efficient

Reduced water utilizationwater utilization

by modifying facilities
and reviewing
operations.

92CSR＞For Environmental Protection > Eco Vision 2020

Major items

Minor items

Targets for fiscal 2020

Results for fiscal 2016

Depletion of resource

Raw

Promotion of productConducted

material

design which takes into

environmental impact

considerationassessment at theminimization of the

product design stage

amount of raw material

while considering

usedproduct life cycle.

Creation of an approval

Formulated

system forenvironmentally-friendly

environmentally-friendly

product accreditation

products, and expansion

system (plan), andofconducted partial trial

environmentally-friendlyrun.

Environmentally-friendly---

products

product lines
Hazardous chemical---

substances

Taking decisive action to

Shared restriction

comply with the various

information across thelaws and regulation

department by chemical

including ELV, RoHS andmanagement

REACH

sub-committee, and took
actions against
restriction.

---

Promotion of the use of

Implemented

substitute materials to

substitution for phthalicreplace materials thatacid subject to banningplace a burden on theby the RoHS in 2019.

environment---

Total abolition of HCFC

Promoted planned
update of the device thatdemands filling of HCFC.

93

CSR＞For Environmental Protection > Environmental Burdens from Business Activities

Environmental Burdens from Business Activities
Environmental Burdens from Business Activities
Knowing what impacts our business activities have on the environment is the first step incarrying out environmental preservation activities. Our material balance, which expresses theamounts of our inputs (such as the raw materials and energy used by our Group) and theamounts of our outputs (such as the products shipped and the wastes emitted outside theGroup as the result of our business activities), is as follows.

94

CSR＞For Environmental Protection > Environmental Burdens from Business Activities*1 The covered scope of each amount reported in INPUT and OUTPUT is indicated with ●.
*2 Domestic group companies are listed below.
Scope of ISO 14001 consolidated certification
Outside the scope of ISO 14001 consolidated certification
・NITTOKU ALFA SERVICE CO., LTD.
・NITTOKU UNYU CO., LTD.
・CERAMIC SENSOR CO., LTD.
・NTK CERAMIC CO., LTD.
・CERAMIC SENSOR NAKATSUGAWA CO.,LTD.
・NANSEI CERAMIC CO., LTD.
・KAMIOKA CERAMIC CO., LTD.
・Spark Tec WKS CO., LTD.
(except Okusa plant of Headquarters)
・NICHIWA KIKI CO., LTD.
・Spark Tech TONO CO., LTD.
・NITTOKU DENSHI CO., LTD.
・NTK CERATEC CO., LTD.
・Spark Tec WKS CO., LTD.
Okusa Plant of Headquarters*3 Overseas group companies are listed below.
Manufacturing & Sales Organization
・NGK SPARK PLUG 〔SHANGHAI〕 CO., LTD.
・CHANGSHU NGK SPARK PLUG CO., LTD.
・WOOJIN INDUSTRY CO., LTD.
・NTK TECHNICAL CERAMICS KOREA CO., LTD.
・NGK SPARK PLUGS (THAILAND) CO., LTD.
・SIAM NGK SPARK PLUG CO., LTD.
・NGK SPARK PLUGS (ASIA) CO., LTD.
・NGK SPARK PLUGS MALAYSIA BERHAD・PT NGK BUSI INDONESIA・NGK SPARK PLUGS (INDIA) PVT. LTD.
・NGK SPARK PLUGS (U.S.A.), INC.
・WELLS VEHICLE ELECTRONICS, L.P.
・NGK SPARK PLUGS CANADA LIMITED.
・BUJIAS NGK DE MEXICO S.A. DE C.V.
95

CSR＞For Environmental Protection > Environmental Burdens from Business Activities

・CERAMICA E VELAS DE IGNICAO NGK DO BRASIL LTDA.
・NGK SPARK PLUGS (FRANCE) S.A.S.
・NGK SPARK PLUGS SA (PTY) LTD.
Sales Organization
・TAIWAN NGK SPARK PLUG CO., LTD.
・NGK SPARK PLUGS (VIETNAM) CO., LTD.
・NGK SPARK PLUGS (PHILIPPINES), INC.
・NGK SPARK PLUG (AUSTRALIA) PTY. LTD.
・NTK TECHNOLOGIES, INC.
・BUJIAS NGK DEL ECUADOR CIA LTDA.
・NGK SPARK PLUG EUROPE GmbH・NGK SPARK PLUGS (UK) LTD.
・LIMITED LIABILITY COMPANY NGK SPARK PLUGS (EURASIA)
・NGK SPARK PLUG MIDDLE EAST FZE96

CSR＞For Environmental Protection > Environmental Management

Environmental Management
Basic Philosophy
Our environmental management system, operating on the environmental policy shared by theentire Group, ensures systematic and effective environmental preservation activities. Under thissystem, all Group companies strive to achieve the Eco Vision.

Promotion system
Our group has a matrix-type structure including business departments and respective regions,promoting environmental activities while having individual roles clarified.

Each department is

expected to manage its own targets on items relevant to business activities, for example,“Global warming”, “Natural resources”, “Toxic, hazardous chemicals”, and “Key quality” under
the Global Eco Vision 2020 for the practice along with business activities. Meanwhile, we takethe initiatives to such activities as compliance of regulations, and communication with local
society mainly on the region basis in accordance with action plans. Various sub-committees
are set up as the cross-functional team across the department for promoting activities.
The activities will be confirmed with respect to the progress toward the target, and task inCentral Environmental Committee at which President, directors, department managers,
environment control managers in the respective regions, and chairpersons of the
sub-committees are present for continuous improvement.

Environmental Activity Promotion Organization

97

CSR＞For Environmental Protection > Environmental Management

The Establishment Status of our Environmental Management
SystemWe received ISO 14001 consolidated certification for NGK SPARK PLUG CO., LTD. and 11 groupcompanies in Japan. In fiscal 2016, we received ISO14001:2015 certification on December
through upgrade audit.
Other domestic and overseas group companies have already received the ISO14001
certification, individually, resulting in 18 overseas group companies which have received thecertification in the end of the fiscal 2016.

ISO 14001 Certified Locations

ISO14001 certificate

Environmental Risk Management
Inherent in business activities are various risks including environmental incidents and pollution.
NGK SPARK PLUG's GROUP identifies these risks and endeavors to reduce and/or prevent them

PCB Control
PCB wastes have been stored at our Headquarters Plant, Komaki Plant, and CS Nakatsugawa
under strict control for proper disposal.
In fiscal 2016, we completed proper disposal of PCB wastes stored at SparkTec WKS.

On-site Confirmation of Waste Material Treatment
We regularly visit our waste disposers to confirm that consigned waste materials are being
processed in accordance with our agreement. In fiscal 2016, we visited 65 companies.

Handling of Asbestos
We have been taking appropriate measures to prevent health hazards from asbestos. Allasbestos used in our facilities has been completely removed. Some asbestos is still present inbuildings as insulators, and we will continue to adhere to stringent control measures andperiodical confirmation

98

CSR＞For Environmental Protection > Environmental Management

Preventing Chemical Leaks
In order to prevent soil and water contamination caused by chemical leaks, we have been
implementing countermeasures involving equipment that includes preventing leaks through thedevelopment of double layered storage tanks and the early detection of leaks by installing pipes
above ground. Wastewater treatment facilities of the respective plants discharge thewastewater only confirmed to be harmless through monitor measurement under routine
management.

Drills for Emergency Situations
We hold regular drills for emergency situations to prepare
for unforeseen accidents, etc. Each department identifies
potential environmental accidents to prevent associatedadverse environmental impacts.
Ceramic Sensor held drills for blocking drainage assumingthat wastewater in excess of the maximum limit value
accidentally flows outside the premise.
Emergency Response Drill(Ceramic Sensor)

99

CSR＞For Environmental Protection > Environmental Management

Compliance Status
To ensure compliance with environmental laws and regulations as well as agreements with local
municipalities, etc., we set stringent voluntary standards to prevent violations and complaints.
In fiscal 2016, there were two instances of violations of laws and regulations in Japan, and two
instances of demand for improvement concerning noise. As each of these involved problems inmechanisms for management and monitoring, we immediately carried out countermeasures,
working to prevent recurrence.

Numbers of Violations (cases)
Company

2013

2014

2015

2016

NGK SPARK PLUG CO.,

0

1

3

0

Affiliates (Domestic)

0

2

2

2

Affiliates (Overseas)

0

0

0

0

LTD.

Numbers of Complaints (cases)
Company

2013

2014

2015

2016

NGK SPARK PLUG CO.,

3

2

0

2

Affiliates (Domestic)

0

0

0

0

Affiliates (Overseas)

―

―

―

―

LTD.

Handling Violations and Complaints in Fiscal 2016
Classification

Violation

Company
NTK Ceramic

Situation

Countermeasures

Failed to submit the external

Tried to confirm whether or notindustrial waste carry-in

the external industrial waste

report no later than 30 days

carry-in report has beenprior to the first day ofsubmitted with respect to allscheduled carry-in period.

the contracted waste-disposal
service providers so that therespective submission terms
are listed and managed.

100

CSR＞For Environmental Protection > Environmental Management

Violation

NTK

Failed to set up bulletin boards

Clarified the management

Ceramicasdepartment in charge of Wasteprescribed

in

Waste

Management Law at some ofManagement Law, which is

Industrial disposal sites.

expected to makeconfirmations twice a year.

Complaint

Komaki Plant

Received two complaints from

As solution for those cases 1

neighborhood residents withand 2, soundproof sheet was

respect to operations

set for noise suppression while

performed by the external

reconsidering arrangement ofservice providers during

the work vehicle. As forsummer vacation.

operations for the future, we

1 Noise was generated fromwill examine employment ofvacuum vehicle andthe work vehicle with low-noisehigh-pressure washingtype motor pump in place ofvehicle during cleaning

the engine-powered vehicle.

operation of cooling toweroutside the plant 14 on thenorth side.
2 Noise was generated fromvacuum vehicle andhigh-pressure washingvehicle during cleaning
operation of cooling watertank and tank outside theplant for trial model
production on the south
side.

101

CSR＞For Environmental Protection > Environmental Management

Environmental Accounting
What is important in promoting environmental management is to gain a grasp of the costs andeffectiveness of environmental preservation activities. We have been adopting environmental
accounting since 1999, and in 2003 the accounting scope was expanded to include the entire
Group.
In fiscal 2016, our environmental conservation costs were 13,410 million yen on a
non-consolidated basis, and 14,327 million yen for the Group, an increase of 15.9% over theprevious fiscal year. The economic benefit associated with environmental conservation activities
totaled 118 million yen on a non-consolidated basis.

Environmental Conservation Costs and Economic
Benefits (non-consolidated)
Environmental Accounting＞

102

Environmental Conservation Costs(domestic group 【consolidated certification】)

CSR＞For Environmental Protection > Environmental Management

Eco-efficiency
We calculate eco-efficiency by determining net sales per unit of CO 2 emissions and generated
waste, and endeavor to improve it.
In fiscal 2016, figures of CO 2 emissions and generated waste were worsened compared withthose of the previous fiscal year resulting from the temporary waste increase caused by start upof the new plant in addition to the waste increase owing to the steep production rise.

CO2 Index(Domestic group 【consolidated certification】)

103

CSR＞For Environmental Protection > Environmental Management

Waste Index(Domestic group 【consolidated certification】)

Environmental Education
Environmental education is conducted todeepenemployees’

environmental

understanding

issues,

and

raise

of
their

environmental awareness.
In fiscal 2016, we held four courses on“Environmental

basics”,“Environmental

management system”, “Calculation methods
forsubstances

burden”,

and

with

an

environmental“Environmental

laws

Environmental education

andHandbook

regulations (for facilities).
Wepublished“Environment

Environment

Handbook”

concerning basic knowledge of environment and our approach to take the initiatives, distributed
to all the employees including those of the domestic and overseas group companies.
We are planning to enhance our environmental education program in fiscal 2017 to improve theoverall level of the environmental consciousness of Group employees.

104CSR＞For Environmental Protection > Environmental Management

Status of course participation (FY 2016)
Item

Number of times

Course on environmental basics
Courseonenvironmental

management

systemCourse on calculation methods for substanceswith an environmental burden
Course on environmental laws and regulations(for facilities)

Number of persons taking
course16 times

322 persons

17 times

293 persons

5 times

71 persons

7 times

92 persons

Comment from an environmental education course participant

Taking course on environmental basics
Taking the course on environmental basics, I was able to realize the importance of facing withthe environmental problem. As media has taken up global environmental issues, this course
allows me to understand that effort of every employee may change or solve the environmental
problem, and further become more conscious about acting
in environment-friendly manner.
I think there still exists room for improving environment
besides such efforts to prevent wasteful use of paper
resource on the workplace, and to use public
transportation for traveling or the refill container for
detergent and the like in daily private life.

I will further

raise the environmental awareness higher by exchanging
views on such issue with colleagues or family. I believe
the initiatives for the environmental education may be agreat help to actualize better environment.

105

Automotive Components
Sales & Marketing Div.
Okada

CSR＞For Environmental Protection > Environmental Management

Support for Suppliers
We offer our suppliers environmental education and support for establishing environmental
management systems to acquire a third party certification. Since 2007 there have been
applications for assistance from 43 companies, and 42 of them have obtained ISO 14001 or
Eco-Action 21 certification. We continue to provide assistance to four companies configuring
environmental management systems.

Environmental Management Classes Held in Fiscal 2016
Topic

No. of Companies Attending

No. of People Attending

ISO14001

7

8

Eco-Action 21

3

6

EMS Third-Party Certification Support Conducted
Topic

No. of Companies
Attending (total sum)

ISO14001

6

Eco-Action 21

36

106

CSR＞For Environmental Protection > Environmentally-friendly Products

Environmentally-friendly Products
Basic Philosophy
As a manufacturing company expanding globally, we strive to meet the expectations ofcustomers around the world and, in order to contribute to the global environment, to develop
and provide environmentally friendly products. At the same time, we also work to constrain theenvironmental impacts generated during production, and aim to reduce environmental impacts
over the entire product life cycle.

Product Assessment
To reduce the environmental burden of a product over its entire life cycle, we carry out productassessments during design and when changing specifications.
During a product assessment, the existence of substances of environmental concern, theamount of energy used, etc. are confirmed at each stage of product design, process design andpackage design. If the assessment determines that there is a significant environmental impact,
countermeasures will be taken before development is continued.

Developing Environmentally Friendly Products
Our company provides products that contribute to the environment, including spark plugs andautomotive oxygen sensors that help improve fuel efficiency and purify exhaust gases fromautomobiles, as well as LED packages and cutting tools that are long-lasting and help conserve
energy and resources. We are also undertaking development of new products in theenvironmental area, such as solid oxide fuel cells (SOFCs).
Receiving acceptance on our contribution to the environment by manufacturing the automotive
oxygen sensors, in fiscal 2016, we won gold prize of “Aichi Environment Award” and “CEAA
award (Corporate Environmental Achievement Award)” by the American Ceramic Society.
107

CSR＞For Environmental Protection > Environmentally-friendly Products

From here on out, we will strengthen activities to promote energy and resource conservation
more than ever in the manufacturing process, by working these into the design stage. Throughthis, we will advance development of products that contribute to the environment in terms ofboth product functions and manufacturing processes.

108

CSR＞Environmental Protection > Hazardous Chemical Substances

Hazardous Chemical Substances
Basic Philosophy
In association with the growing public awareness of environmental issues, regulations
regarding hazardous chemical substances have become increasingly severe year by year.
Taking appropriate measure to such concern has become vital to the continuation of business.
We have a three-step management system for handling substances of environmental concern:
1. Answering requests from customers, 2. Handling within the Group, and 3. Procurement fromsuppliers.
Naturally we ensure compliance with laws and fulfill customer requests. More than that, we aim
to reduce the use and emission of substances of environmental concern so as to minimize theireffect on the environment and human health.

Answering Requests from Customers
With the reinforcement of regulations on chemical substances contained in products, requests
from customers in the automobile, electrical and electronics industry regarding improved
compliance are increasing. The REACH Regulation of the EU has triggered an increase in thestatus of chemical substances contained in products; we are taking all the appropriate
measures including submission of Non-Containing Declarations, submission of various data with
IMDS, AIS, etc., and handling investigations and audits regarding our management systems.

Handling within the GroupTo respond appropriately to increasingly strict chemical substance regulations worldwide, we
perform non-containment management for products and usage management within plants.
For hazardous chemical substances, we set hazard rankings according to toxicity and thestrictness of regulations, and establish handling standards for each rank.
From here on out, we will work toward substitution of hazardous chemical substances and thestrengthening of management, to assure compliance with laws and with the demands ofcustomers.

109

CSR＞Environmental Protection > Hazardous Chemical Substances

Management System

Hazard Rank
Rank
Prohibited

Handling standard

Substances covered

Use is prohibited.

Substances prohibited from use or strongly

substances

restricted by regulations.

Restricted

Safer substitutes will be sought,

Hazard level and toxicity are equivalent tosubstances

while making efforts to reduce theprohibited substances, but an immediateuse of current substances.

changeover is impossible due to its special
characteristics.

Monitored

Supplies need to be examined toThose not prohibited or restricted but that

substances

find existence / non-existence of

require monitoring.

applicable substances.

110

CSR＞Environmental Protection > Hazardous Chemical Substances

Management of PRTR substance
Aiming at optimized management, the respective divisions have ensured to identify and totalize
PRTR substances for clarifying handling volume, release volume, and transfer volume.

Emission Volume of PRTR Substances

Emission Volumes of PRTR Substances(non-consolidated)(domestic group【consolidated
certification】)

Procurement from Suppliers
To manage chemical substances contained in products appropriately, it is imperative that we
gain the cooperation of our suppliers. For this reason, we request in our Green Procurement
Guidelines that our suppliers not use hazardous chemical substances banned by NGK SPARKPLUG CO., LTD. We designate suppliers that meet our system and material standards as Green
Suppliers.

In collaboration with our Green Suppliers, we promote appropriate management of

hazardous chemical substances.

Green Procurement Guidelines111

CSR＞For Environmental Protection > Global Warming

Global Warming
Basic Philosophy
Major climate change could cause the risk of hindering the establishment of a sustainable
society. As a part of our activities to aid in mitigating climate change from medium- andlong-term perspectives, we set targets for CO 2 emission basic unit in fiscal 2020 under Global
Eco Vision 2020.

Aiming at achievement of the targets, we have been proceeding withfractionalization of energy management, and reduction in energy consumed by air conditioning
system while focusing on building ventilation amount.

Achieving Target CO 2 emission basic unit in fiscal 2016
The CO 2 emission basic unit in fiscal 2016 was 1.25 tons/million yen, meeting our fiscal 2016
target of 1.28 tons/million yen (decrease by 1% as compared with fiscal 2015). The CO 2
emission basic unit has been improved by 16% for 5 years since fiscal 2012 owing to energy
saving effect resulting from updating of facilities (energy-saving type) and revising ourmanufacturing conditions.

Transition of Emission Volume of Energy-Origin
CO2 (Domestic group【consolidated certification】)
112

CSR＞For Environmental Protection > Global Warming* The denominator of the basic unit has been changed from sales to amount index inaccordance with production sum.

Transition of Emission Volume of Energy-Origin CO2 (group)

Energy Conservation during Transportation
As a Specified Consigner designated under the Act on the Rational Use of Energy, we endeavor
to reduce CO 2 emissions during transportation, proceeding with reduction in shipping distanceby reorganizing/integrating plants, and reconsidering the waste-disposal service vendor.
In fiscal 2016, our energy usage basic unit was 1.05 kL/100 million yen, improved by 1.3% ascompared with the previous fiscal year.

113

CSR＞For Environmental Protection > Global Warming

CO2 Emissions as Consigner (non-consolidated)* The volume derived from contracted cargo transporters is included.
* The denominator of the basic unit has been changed from sales to amount index inaccordance with production sum.

Energy Conservation in Office
We implement daily energy-saving measures in our workplaces, including turning off lights andcomputers during breaks and keeping office air conditioning at moderate levels, 28ºC insummer and 20ºC in winter, to which we adjust by dressing lightly or adding layers of clothing.
We are also creating green curtains, installing arched sunshades and thermally insulating theoutdoor units of air conditioners to reduce power consumption for air conditioning in thesummer.
In fiscal 2016, too, we worked to consolidate PC servers, upgrade air conditioners, and convert
fluorescent lighting to LED lighting.

114

CSR＞For Environmental Protection > Global Warming

Use of Natural Energy
We promote the use of natural energy.
We installed three solar power generation units and one solar water heater at our Headquarters
Factory. The Komaki Plant has a solar power generator unit that can generate a maximum of
107 kW of electricity.

In overseas, the solar power generation units have been introduced into

Woojin Industry Co., Ltd., and NGK Spark Plugs (India) PVT. LTD. In fiscal 2016, we generated
a total of 350 MWh sourced from natural energy in both domestic and overseas companies,
which is equivalent to reduction of 200 tons of CO 2 .

115

CSR＞For Environmental Protection > Depletion of Resources

Depletion of Resources
Basic Philosophy
Our Group contributes to society by lowering defect rates in our manufacturing processes,
reducing waste generated and further treating wastes to enable recycling, as measures tocombat the depletion of resources.
And we contributes to the resolution of water resource issues by recognizing the tap water andwell water used in our business activities as water resources, and by undertaking the reductionof usage, as measures to combat the depletion of resources.

Reduction of Waste Generated
In fiscal 2016, the waste emission basic unit was 0.061 tons/million yen, worsened by 2.8% ascompared with fiscal 2015.

Such worsened figure is thought to be caused by temporary

emission increase as a result of establishment of new plant in addition to the emission increase
as a result of steep production rise.

Trends in Volume of Waste Generated(domestic group 【consolidated certification】)
116

CSR＞For Environmental Protection > Depletion of Resources* The denominator of the basic unit has been changed from sales to amount index inaccordance with production sum.

Trends in Volume of Waste Generated (group)* Since fiscal 2016, data on Wells Vehicle Electronics, L.P. have been added to the overseas
group.

117

CSR＞For Environmental Protection > Depletion of Resources

Reducing the Amounts of Tap and Well Water Used
In fiscal 2016, our water usage basic unit was 6.32 m3/million yen. Water usage basic unit
was improved by 11.6% compared with fiscal 2015, which is resulted from conserving waterby changing manufacturing conditions and upgrading and updating to equipment with a highwater-savings effect.

Trend in Volume of Tap Water/Well Water(Domestic group 【consolidated certification】)* The denominator of the basic unit has been changed from sales to amount index inaccordance with production sum.

118

CSR＞For Environmental Protection > Depletion of Resources

Trend in Volume of Tap Water/Well Water (group)119

CSR＞For Environmental Protection > Environmental Communication

Environmental Communication
Basic Philosophy
It is essential for the NGK SPARK PLUG's GROUP to realize close coordination with local
communities and become highly reliable for continuous business operations. For achievementof the goal, sharing information on the Group's environmental activities is regarded as the best
approach. We have been endeavoring to disclose information and improve communication inan accurate and easy-to-understand way.

Hosting plant tours
We accept plant tours for the purpose of observing our environmental efforts and facilities. A
deeper understanding of our Group's activities and better communication are achieved byseeing our facilities firsthand and engaging in question and answer sessions. In fiscal 2016, we
hosted 56 tours and welcomed 1,198 visitors at our plants.

Environmental Meeting
We host environmental meetings with local residents as a venue for communication. At thesemeetings, we explain our daily environmental activities as well as hear opinions and commentsfrom participants on how we can further improve things. In fiscal 2016, we hosted 8 suchmeetings, with a total of 28 participants

Local Clean-up Activities
We regularly hold clean-up activities near the office to preserve the local environment. We also
continue to participate in beautifying activities hosted by local municipalities, etc. In fiscal 2016,a total of 832 people participated in such activities.

120

CSR＞For Environmental Protection > Environmental Communication

Clean-up activities

Clean-up activities (Head Office)(Nakatsu-gawa Plant, NTK
Ceramic)

Conservation of Biodiversity
NGK SPARK PLUG’s GROUP defines preservation of biodiversity that has become increasingly
important around the world as one of our environmental themes as essential as global warming
control and recycling of resources.
In April 2013, we established the NGK SPARK PLUG Group Biodiversity Action Guidelines whichindicate our policy and action plan regarding biodiversity.
Based on the guidelines, recognizing that activities such as the use of energy and resources
have an effect on biodiversity, we will work in cooperation with business partners and externalorganizations to reduce the impacts of our entire business activities

System for Environmental Commendations
Based on our target to “Improve Environment Consciousness” set under the Global Eco Vision
2020, we have established an environmental commendation system for the NGK SPARK PLUG's
GROUP to commend outstanding environmental initiatives.
The environmental commendation system was launched in 2014 aimed at environmental
activities and initiatives in all divisions and departments of the company groups.

The

outstanding case will be commended by the President during meetings of the Central
Environmental Committee.
In fiscal 2016, the third year of the system, commendations were given to 10 cases with respect
to, for example, reduced CO 2 emission during production by improving productivity and quality,
reduced CO 2 emission during logistics by enhancing efficiency of transportation between plants,
reduced waste disposal by reconsidering operation process, product design that suppresses theuse of rare metal, and development of environment-oriented products.

121

CSR＞For Environmental Protection > Environmental Communication

Comment by award-winning division

Contribution to Environment by Quality Improvement
We won the award on the theme of “Elimination of air cleaning step for removing adheredcontaminant”.
Asaresultofourfundamental

examinations

oncountermeasures against problem of chronic defective
quality, we succeeded in elimination of cleaning air as wellas quality improvement.

Through our efforts, we havelearned that quality improvement leads us to “Power
reduction = CO 2 emission reduction”.

In spite of verysmall amount of air fed to each cylinder,

the total air

amount resulting from conversion into the annual figure
over horizontal business network results in surprising
effects.

We will further take the initiative of “Quality

improvement = Environmental activity” for further effects
onward.

122

Spark Plug Div.
Miyanojo
Manufacturing Dept.
TakezoeCSR＞Third-Party Review

Third-Party Review
We have edited CSR Report 2017 to serve as an easily understood and trustworthy report, on
the basis of information disclosure policies. So that we may hear objective opinions with the aimof creating a better report, we requested a third-party review from Mr. Tomohiro Tokura of SGS
Japan Inc.

Third-Party Review of CSR Report 2017
We have heard of your declaration once again towards
accomplishing the CSR, and your signing of the UN Global
Compact (UNGC) in relation to the four areas and ten
principles:humanrights,labor,

environment,andanti-corruption. We have heard of your continuing CSR acts
and commitment to the public regarding improved governance,
response to individual and market demands, contribution tocommunities, and more. This can be viewed as a result of
increased social concerns and company responsibilities. Workon increasing intra-company awareness of our signature of the
UNGC will be carried out from now, while internal CSR training
is ongoing and will be extended out to group companies in2017. As well as basic training, we understand that you arealso considering ongoing, follow-up training. We believe thisMr. Tomohiro Tokura
Verification
SpecialistSustainability
Service DivisionSGS
Japan Inc.

will further increase company awareness of our social
responsibilities and we look forward to hearing more on this.
As mentioned in a previous commentary, actions such as the “greeting campaign” along with
our “po-ke-te-na-shi” system, and following the rules laid out by the health and safetycommittee, also serve as ways to continually disseminate information throughout the company.
Furthermore, through continuous support for the “5s kaizen”, and various types of seminar,
mutually beneficial relations can be set up with client companies. For a company that possess
an open culture with good communications, this will not be simply a passing fad but will become
part of the corporate culture. Also, a good communication leads to improvements in governanceand compliance. Continuing with these actions demonstrates a positive attitude towards
123

CSR＞Third-Party Review
communication, and is a defining characteristic of NITTOKU. We look forward to further
developments. Human Resources policy offers opportunities for employees to improve andgrow, and has already had good results. In particular, the DNA (Dynamic New Approach)project gives employees the choice to suggest their own ideas, which may influence thedirection of planned projects. For certain this approach encourages employee growth and isanother defining characteristic of Nittoku. We very much look forward to hearing more on this.
The level of employment of the physically challenged is below the legally designated standard of
2 per cen. NGK Spark Plug Co, Ltd supports diversity, and through proactive efforts to increaseawareness of this issue throughout the company, the figure was increased to 1.9 per cent in thefiscal year 2016. In the fiscal year 2017, a new group was set up to work on resolving this issue.
To disclose this information in a written report increases trust in a company. The environmental
report contains information pertaining to breaches and complaints, as well as how they aredealt with. We hope to continue receiving reports regarding ongoing issues.
With the recent prominence of SDG on the news, requests for information on the company’ssocial responsibilities, along with requests for disclosure, have been rapidly increasing.
Questionnaires for organizations such as CDP (Carbon Disclosure Project) and DJSI (Dow Jones
Sustainability Index) not only request disclosure of data regarding environment and sociability
verified by a third-party, but cover many fields, such as water sources and forest sources. Not
only the investors, but society itself have concerns about the way a company operates. While
Nittoku has signed the UNGC, we hope to see a yet higher level of transparency along withincreased accountability.
＊This comment renders no judgment on whether the data presented in the report is accurately
measured and calculated and is free from omissions, in accordance with standards for the
preparation of environmental and other reports generally deemed to be fair and reasonable.

2017 Regarding CSR’s Initiatives / In Response to Third-Party
Suggestions
Thank you for your valuable advice concerning our initiatives. Since you have consistently beenadvising us on our initiatives for five years, we appreciate your suggestions as highly
motivational.

124

CSR＞Third-Party Review
To our stakeholders, who have high expectations of us, we have compiled the CSR report in linewith our desire to “show our company as it is” even more than we did the year before. In
addition, we have phrased it in simple vocabulary, and we treat all information as if it were new
to the stakeholders, even though it may be obvious to ourselves.
The demands made on companies by our society are increasing year by year. In addition to
responding with better results, we will work towards social approval through our business bycontributing towards environmental and human rights issues.
We were selected by ESG-oriented investors as having reached their benchmark, and werehighly acclaimed for our organization’s level of sustainability by the global investment research
institution specializing in SRI. We will continue to make every effort to be a company whichmeets its customers’ expectations.
Masaya Futamura
General Manager, Risk Management Department, Corporate Strategy GroupNGK SPARK PLUG CO., LTD.

125

Targets and Results of CSR Promotion Activities
Mid-term Targets(by fiscal 2020)
Implement PDCA cycle topromote CSR on a global basis

Field of Activities

Company-wide CSRManagement

Promote CSR awareness-raising
activities on a global basis

Construct a global promotion
systemContinue education on helpline
content

Company-wide
Promotion
SystemContinue compliance awarenessand knowledge training

Management

Compliance

Fiscal 2016 Results• Ongoing implementation of CSR
education (target number ofcourse-takers: 2,000 people)• Promotion of workplace
education through a digest
version of the CSR Report

・Held CSR elementary training for1614 participants (almost all thetarget employees).
・Distributed digest material to
every employee in domestic
group companies for promoting
education in the workplace.

• Preparation of rules (promotion
system) for group companies• Initiatives regarding high-risk
projects, including the preventionof bribery of foreign public
officials

・Established compliance rules
common to group companies,
while improving those rules forsome of the group companies.
・Purchased information onbribery cases in the respective
countries, and held training
courses in the overseas groupcompanies.

Continue education throughseminars and the Compliance
Newsletter, and awarenessraisingthrough posters

Continuously conductedawareness-raising activities by
education through posters andcompliance newsletters. Made aplan to issue posters in fiscal
2017.

• Expand the number of people to ・Encouraged employees toparticipate in the seminars
further raise awareness of• Continue to issue thecompliance in the regular training
Compliance Newsletter
program.
・Issued 14 compliancenewsletters.

Continue monitoring ofcompliance awareness andknowledge and corporate culturechangeConduct compliancequestionnaires

Deploy educational tools to NGKSPARK PLUG and groupcompanies in Japan and monitor
implementation status andeffectiveness

Expand and operate e-learning
Created e-learning contents, andcontent related to confidentiality conducted on trial.
management at NGK SPARK PLUG

Continuously improve security
Security Control control, including groupcompanies, andestablish system for surveillanceof implementation status

Establish a system forsurveillance of implementation
status of appropriate export
controls, including groupcompanies
Export Control

Fiscal 2016 Targets• Implementation of the PDCA
・Inspected activities in ﬁscal
cycle to promote CSR at domestic 2016, and set fiscal 2017 targets.
and overseas group companies
・Reviewed CSR policy for• Review of CSR policy
effectuation on April, 2017.

Evaluation◎

Fiscal 2017 Targets
・Implementation of the PDCA topromote CSR at domestic andoverseas group companies
・Review of CSR policy

Department
in Charge
RiskManagement
Dept.

・ Preparation of new training
Risk
programs as the next step of CSR Management
elementary training course
Dept.
○・ Establishment of rules for all the Compliancegroup companies
Committee
・ Preparation of trainings andguidelines regarding risk ofbribery of foreign public officials○○○

・ Conducted survey to feedback
analytical results.

・ Awareness raising throughCorporate ethics help line cards
and posters
・ Making internal report system
available to suppliers

Compliance
Committee

・ Expansion of the target range of Complianceparticipants for Compliance
Committee
seminar・ Continuous issue of theCompliance Newsletter・ Revision of Compliance guidebook・Conducting compliance survey

Compliance
Committee○◎• Group companies in Japan:
・Domestic group companies:
Continuous implementation of
Conduct regular inspection for
periodic inspections, and tracking confirming circumstances ofof individual companies inindividual companies.
accordance with situation
・Overseas group companies:• Overseas group companies:
Researched circumstances of
Checking of status and problem
individual companies.
areas in each company, in light ofgroup rules• Support for export control at
subsidiaries in Japan (education,etc.)• Checking of status of exports
from overseas subsidiaries andassessment of risks

Continuously reduce security risk Formulate a plan to improve theof group companies throughsecurity level of group companies
deployment of Group Information
Security Regulations
Information
Security

126

・Conducted education andinspection for domestic groupcompanies engaging in directexport.
・Conﬁrmed status of export fromoverseas group companies for
identifying the risk.

・Domestic group companies:
Formulated the company-wide
basic plan. Completed
countermeasure in 4 of thosecompanies.
・Overseas group companies:
Finished hearing from 23
companies. However,formulation of the plan wasbehind schedule.

○

◎

○

・Careful examination on eConfidentiali
learning contents, and monitor on ty
operational situation andManagement
effectivenessCommittee

・Domestic group companies:
Continuous tracking of groupcompanies engaging in directexport・Overseas group companies:
Execute awareness-raising
activities in accordance with therisk of each company

Confidentiali
tyManagement
Committee

・Domestic group companies:
Continuous tracking of groupcompanies engaging in directexport・Overseas group companies:
Execute awareness-raising
activities in accordance with therisk of each company

ExportControlCommittee

・Domestic group companies:
Completion of countermeasure・Overseas group companies:
Countermeasure completed by
60% of group companies

Information
Systems
Dept.

Mid-term Targets(by fiscal 2020)
Implement patent review
activities for mainstay products
prior to design review meeting,including group companies

Field of Activities

Establish new methods to deal
with increasingly sophisticatedcounterfeiters, particularly inemerging countries

ComplianceHave at least 15% of submitted
patents be differentiation patents
Respect for and utilizing a patent portfolio that
Protection of adds rivals' information
Intellectual
Property Rights

Involve trademark aspects instrengthening our brandorganization

Enhance intellectual property
education, including groupcompanies

Fiscal 2016 Targets

Fiscal 2016 Results• Continuous implementation ofpatent reviews• Identification of noteworthy
patents, and drafting andmanagement of counterproposals

・Implemented patent reviews
continuously.
・Identiﬁed noteworthy patents,and launched drafting ofcounterproposals.

Implement counterfeit productcountermeasures in emerging
countries not yet addressed

Started taking countermeasuresagainst counterfeit product onelectronic commerce to erase
approximately 8334 cases ofillegal articles.

Establish and executemechanisms aimed at creating apatent portfolio
using information on othercompanies

Examined on formation of
mechanism utilizing existing
database. However, we found it
difficult, resulting in substantiallyno developments

Involve and assist relatedcompanies that have been newly
added to our Group withtrademark aspects in building thebrand organization

Building of the brand organization
for the company newly joinedwith our Group was notdetermined, failing to assist themwith trademark aspects.

Training being conducted at NTK
CERATEC CO., LTD.

Held elementary, intermediate,
advanced, and search training
courses.

Evaluation

◎

◎

×

×

◎

Management

Expand business continuity
management system to groupcompanies in Japan

Improvement of the crisis
response process

Held BCP training, and updated
task management sheet andaction check list.

Risk
Management

Company-wide
RiskManagement

Construct a procurement BCP
framework and expand andoperate it at group companies

・Being aware of current status of Intellectual
counterfeit products distribution
Propertyon the electronic commerce, and Dept.
formulation of control method
・Implementation of counterfeit
product countermeasures inemerging countries not yet
addressed

・Preparation of balance sheet of
key product・Identiﬁcation of patents relating
to the respective technical fields,
and collection of database
information with excellent
visualization capability

Intellectual
Property
Dept.

・ Establishment of corporate
brand in collaboration with
relevant internal
divisions/organizations, andsupport for improving the valueIntellectual
Property
Dept.

Holding Intellectual Property
training for employees including
those working for groupcompanies

Intellectual
Property
Dept.

・Conducting training incollaboration among BCP
departments

BCM
WorkingGroup◎

Construct a management systemthat can respond to not only
earthquakes but also otherdisasters

BCP/BCM

Department
Fiscal 2017 Targets
in Charge
・Continuous implementation ofIntellectual
patent reviews
Property
・Identiﬁcation of noteworthy
Dept.
patents, and progress
management of counterproposals• Creation and operation of NGKSPARK PLUG mechanisms for
procurement BCP• Expansion to planned groupcompanies

・Standardized procurement BCP
system through re-examination,and expanded the system intosome of Divisions.
・Carried out as scheduled.

IT-BCP countermeasures forserver infrastructure (cloudutilization)

Construct a cloud environment
inside the company

Built in-house cloud environment,
proceeding file server
aggregation.

Build company-wide risk
management suited to NGKSPARK PLUG

• Establishment of risk
management rules• Establishment of risk
management rules in groupcompanies• Assessment in Corporate
division concerning global risk
management system andmechanism, and review of
relevant manuals

127

・Established risk management
rules.
・Established risk management
rules in domestic groupcompanies
・Conducted assessment in
Corporate division. Found nosections to be re-examined in therelated manual.

・Expanding covered items for
Procurement
procurement BCP in our company Div.
・Deployment to planned groupcompany○◎○

Enhancement of in-house cloudenvironment for conducting fileserver transition

Information
Systems
Dept.

・Establishment of risk
Risk
management rules for overseas
Management
group companies
Working・Promotion of activities for coping Group
with risks with priority unified in
the group
Risk to be coped with priority
unified in the group in fiscal 2017
①Promotion of BCM（BusinessContinuity Plan）②Corruption prevention

Field of Activities

With Our
Customers

With Our
Customers

Mid-term Targets(by fiscal 2020)
Expand quality assurance to allgroup companies with a focus on
goods for all customers

Safety and Quality

Safety and Quality

Fiscal 2016 Targets

Expand quality management to all • Establishment andgroup companies aimed atentrenchment of integrated
delivering value to all customers standards for production
management innovation• Improvement of skill levels
through the use of quality
technologies in creating products• Expanded deployment of
workplace and ongoing smallgroup activities, andestablishment of a humanresource development platform

Disseminate information that
leads to increased shareholder
trust

Information Disclosure

・Issued CSR reports and updated
website.
・Added “actions coping with
Competition Law”, “corruption
prevention”, “taxation policy” in
CSR page on the company
website.

Construct a framework for an IR
strategy aimed at institutional
investors

Enhance the provision of
Added new index to settlement
analytical data related to account from the end of March 2016 assettlement and disclosure
well as information in thestatement in English.

Disseminate information that
captures stakeholders'
expectations and the changes insocial trends

Disseminate information that
captures stakeholders'
expectations and the changes insocial trends

Implement fair evaluations that
correspond to clear expectations

Promotion of personnel system
・Implemented a part of target
reformmanagement system through• Entrenchment of system inreviewingcompanies where it has been・Expansion to one of domestic
introducedgroup companies was completed• Preparation for expansion ofas scheduled.
system into group companies in・Identiﬁed circumstances ofJapandomestic group companies to• Assessment of conditions insummarize items to becompanies where the new system addressed.
has not been introduced

Establish educational programs
that target the leaders of eachgroup company
With Our
Employees

・Formulated production
management rules, and held
briefings in the group companies.
・Upgraded engineers utilizing
quality technology for
manufacturing products.
・Continuously supported a newly
established circle.

Enhance and expand
・Renewed company website into
communication with stakeholders multilingual (Simplified Chinese,
Traditional Chinese, Spanish,
German, Portuguese) .
・Added information about
Company story, Open innovation,
Transparency guideline for
Medical institution.

Disseminate information in an
Enhance the CSR report andwebsiteeasy-to-understand andapproachable manner on a global
levelWith Our
Shareholders andInvestors

Fiscal 2016 Results• Readying and establishment of Built framework of company-wide
companywide QMS
QMS applicable to indirect• Practice of root cause
division.
identification for customer
・Developed sheet classiﬁed bycomplaints, and enhancement of cause.
recurrence prevention
・Issued procedure manual• Improvement of the level ofcertified by proof-readers formeasurement management in the skilled technician.
NGK SPARK PLUG Group・Standardized and expanded• Improvement of equipment
procedure for measuring facility
assurance precision from adeterioration with vibrometer.
measurement point of view
・Started local procurement of• Establishment of a global
gauges in two of overseas groupprocurement system for gauges
companies.

Begin formulating surveys andpolicies for professional
development systems andtraining programs

Employment and Human Rights

Employ diverse human resources Plan mechanisms for hiring
strategicallydiverse human resources

・Disclosed opinion of the third
person about CSR reports on thewebsite.
・Held meeting with institutional
investors with the theme of ESG.

Inspected on the professional
development systems andtraining programs in the domestic
group companies, and launched
formulation of the future policy.

Formulated keyword of “humanresources with diversity”.
Implemented planned recruitingfrom the long-term viewpoints.

Achieve personnel and human
Survey personnel systems in
Conducted survey to all overseas
resource functions that contribute major overseas group companies group companies.
to the promotion of management
strategy

128

Evaluation

Fiscal 2017 Targets
・Formulation of company-wide
QMS structure
・Improving upstream process
analysis capability from customer
complaints
・Enhancing measurement control
systems of overseas groupcompanies

Department
in Charge
Quality
Committee,
Corporate
Quality
Management
Div.

◎・Establishment of education
system of quality-related rules
and regulations
・Eﬃcient use of personnel withprofessional skills of quality
control

Quality
Committee,
Corporate
Quality
Management
Div.

◎

Enhancement and expansion of
Publiccommunication with stakeholders Relations
Dept.
◎

Enhancement of CSR website

Risk
Management
Dept.

Optimizing quick report andcomprehensiveness of various
disclosed documents

Accounting& Finance
Dept.

Disseminating information that
captures stakeholders'
expectations and the change insocial trends

RiskManagement
Dept.

Promotion of personnel system
reform• Entrenchment of system incompanies where it has been
introduced• Preparation for expansion ofsystem into group companies inJapan• Determination of the directionof companies where the new
system has not been introduced

Human
Resources
Dept.,
Strategic
Human
Resources
Dept.

Formulating the policy of
introducing education programsin domestic group companies,
and forming consensus

Human
Resources
Dept.

Constructing the mechanism forhiring diverse human resources

Human
Resources
Dept.

Implementation of program fordeveloping global managementhuman resources

Strategic
Human
Resources
Dept.

◎

◎

◎

◎

◎

◎

○

Field of Activities

With Our
Employees

Employment and Human Rights

Mid-term Targets
Fiscal 2016 Targets(by fiscal 2020)
Further encourage the promotion • Identify and work to resolveof active participation by women issues in all departments• Continue to hold lecture
meetings for senior managerial
positions and networking events
for women

Zero workers leaving their jobs in Review of nursing care program
order to provide nursing care

Fiscal 2016 Results
・Selected one of divisions fromhearing results of all divisions as
the model case, and supported
the division with solution of thetask.
・Continuously held the lectures
for those on major carrier path,and gathering for female
employees.

Evaluation◎

Introduced short working hoursystem.
◎With Our
Employees

Achieve the mandatory number
for employment of people withdisabilities

Consider establishment of a
special subsidiary company

Established special subsidiarycompany “Nittoku Smile Co.,
Ltd.”.

Department
Fiscal 2017 Targets
in Charge
・Clarifying problems from
Strategic
progress report on the action plan Humanin the respective departments,
Resources
and results of hearings from
Dept.
female members
・Holding the diversity
management training course forevery chief official in addition tolectures for those on major
carrier path, and gathering forfemale employees held on regularbasis
Holding the training program for Strategic
the purpose of avoiding leaving of Human
employees due to nursing care
Resources
Dept.

Putting the special subsidiarycompany on the path of growth

Human
Resources
Dept.

Improving motivations of
employees in late fifties or older

Strategic
Human
Resources
Dept.

Taking countermeasure forreforming the division marked as
higher stress level as a result ofstress checking

Human
Resources
Dept.

• Elimination of work-related
accidents• Improvement of work
environments• Promotion of healthimprovement• Enhancement of education,
training, and awareness

Safety and
HealthCommittee◎

Employment and Human Rights

Promote active participation byseniors

Adoption of a target management Introduced target management
system for persons underprogram for persons undercontinued employment
continued employment.
◎

Raise productivity by decreasing Operate a stress checking
the rate of onset of mental illness program

Develop systems that make it
difficult for accidents to occur
aimed at developing a global
safety cultureWith Our
Employees

With Our
Suppliers• Elimination of work-related
accidents• Improvement of work
environments• Promotion of healthimprovement• Enhancement of education,
training, and awareness・Reduced cases called “disaster
caused by actions taken against
failure during operation” throughactivities such as risk assessment
and KY on site.
・Conducted working environment
measurement, and took
countermeasure in accordancewith measurement results.
・Held health promotion fair, andlectures on health and sanitation
・Promoted safety observation
facilitated by Safety and HealthCommittee.

• Promotion of support forvoluntary safety and healthmanagement activities bydepartments and business sites• Sharing of information on
activities in domestic andoverseas plants

・ Incorporated safety observation
conducted by management to thecompany-wide policy for futuresafety and health activities on theinitiative of department.
・ Conducted top safety patrol bychairperson of Central Safety and
Health Committee.

• Improvement of evaluation at
NGK SPARK PLUG
• Expansion to planned Group
companies

・Conducted periodic review andselection review continuously tosolve the identified problem for
improvement.
・Expanded to a part of the groupcompanies.

Occupational Safety and Health

Improve the framework forevaluation aimed at global
optimum
procurement and deploy andoperate at group companies

CSR Procurement

Reduce risk in the supply chain by • Communication at corporate
thoroughly establishing CSR
policy conferences
procurement• Analysis of risk; ideas andproposals aimed at its reduction• Trial launch of proposed
ideas aimed at suppliers

Promote education andenlightenment aimed at reducing
risk utilizing supplier seminars,
etc.

Conducted stress check, andinterviewed with all those
expected to need care.

・Communicated at corporate
policy conferences.
・Conducted risk analysis andformulated the plan for reducing
the risk.

◎◎◎・ Global development of safety
Environmentand health activities& Safety
・ Preparation of tool used forManagement
safety and health activities
Dept.
overseas
・ Review on safety and healthmanagement system in workplace
・ Establishment of system
offering the training for
employees expected to betransferred overseas

・Improvement of evaluation at
NGK SPARK PLUG
・Expansion to planned Group
companies

Procurement
Div.

・Communication at corporate
policy conference・Summarizing idea of risk
reduction, and start activities
・Conduct risk assessment in theplanned group companies

Procurement
Div., Risk
Management
Dept.

・Facilitation of education andawareness-raising bycontinuously holding seminars for
suppliers

Procurement
Div., Risk
Management
Dept.

Planning and implementing
sustainable social contribution
activities unique to NGK SPARKPLUG

PublicRelations
Dept.

○

○

Improvement of supplier seminar Improved contents of seminars
content and expansion offor supplies, leading to 473
suppliers as participants for thetargeted suppliers
seminars.
◎With Local
Communities andInternational
SocietySocial Contribution

Continually enhance the social
Consider sustained social
status of the NGK SPARK PLUG
contribution activities that onlyGroup through social contribution NGK SPARK PLUG can perform
activities

Evaluated on our “sustainablesocial contribution activities
unique to NGK SPARK PLUG can
perform”◎

129Field of Activities

For
Environmental
Protection

Environment

Mid-term Targets(by fiscal 2020)
Promote environmental activities
aimed at achieving global Eco
VisionFiscal 2016 Targets

Fiscal 2016 Results

Global warming• CO2 in production: Reduce
emissions per unit of production
by 1% from fiscal 2015
• CO2 in physical distribution:
Promote efficient distribution

Global warming• CO2 in production: Reduced
emissions per unit of production
by 3.3% from fiscal 2015
• CO2 in physical distribution:
Engaged in efficient distribution
between factories.

Depletion of resources• Waste: Improve per unit
emissions from fiscal 2015
• Water: Improve per unit usage
from fiscal 2015

Depletion of resources• Waste: Improved per unit
emissions by 12.2% from fiscal
2015• Water: Improved per unit usage
by 8.7% from fiscal 2015

Hazardous chemical substances•Substituted alternative for• Promote substitution ofphthalic acid expected to beprohibited material for use fromsubstances of environmental
concern ahead of regulations, and 2019 prescribed by RoHS
formulate a substitution plan for Directive.
• Promoted planned updating of
HCFC targeted equipment
the equipment to be charged with
HCFC .
Environmentally-friendly products Formulated the plan ofcertification system for• Strengthen development anddesign activities that contribute to environmentally-friendly
saving energy
products, and partially
implemented on trial.

Promotion of the integration ofbusiness activities andenvironmental activities

130

・Clariﬁed the latest circumstancesof both domestic and overseas
companies for support inaccordance with activity levels.
・Reviewed the method for
utilizing environmental
performance data.

Evaluation

◎

◎

◎

◎

Fiscal 2017 Targets
Global warming• CO2 in production: Reduce
emissions per unit of production
by 1% from fiscal 2015
• CO2 in physical distribution:
Promote efficient distribution

Department
in Charge
EnvironmentalCommittee

Depletion of resources• Promotion of waste reduction
by decreasing defective products• Promotion of product design
considering suppression ofgenerated waste quantity• Promotion of efficient use ofwater

EnvironmentalCommittee

Hazardous chemical substances• Promoting substitution ofsubstances of environmental
concern ahead of regulations•Formulating a substitution planfor HCPC targeted equipment

EnvironmentalCommittee

Environmentally-friendly products Environment•Strengthening development and al
design activities that contribute to Committee
saving energy

Promoting integration of business Environment
activities and environmental& Safety
activities
Management
Dept.
◎

ISO 14001 Certified Locations
Certification covering multiple units (Scope of applicability)
Country

Name of factories and companies

Certified initially in:

Headquarters and Nagoya Plant’99. 8

Komaki Plant, Miyanojo Plant, Ise Plant’00. 12

Takenami Plant’07. 1

Inuyama Logistics Center’99. 8NGK SPARK PLUG CO., LTD.

Japan

Nittoku Alfa Service Co., Ltd.

’99. 8

Nittoku Unyu Co., Ltd.

’00. 12

Ceramic Sensor Co., Ltd.

’00. 12
Komaki Plant’00. 12

Iijima Plant, Kani Plant’02. 12NTK Ceramic Co., Ltd.
CERAMIC SENSOR NAKATSUGAWA CO., LTD.

’16. 12

Nansei Ceramic Co., Ltd.

’02. 12

Kamioka Ceramic Co., Ltd.

’04. 1
Head Office Plant, Oguchi Plant’04. 1

Satsuma Plant’09. 12SparkTec WKS CO., LTD.
Nichiwa Kiki Co., Ltd.

’04. 1
Tono Plant’04. 1

Nino Headquarters Plant’15. 12SparkTec Tono Co., Ltd.

Certification obtained individually
CountryJapan

Name of factories and companies
NTK CERATEC CO., LTD.
NGK Spark Plugs (U.S.A.), Inc.

U.S.A.

Certified initially in:’04. 10W V Plant’00. 7

Wells Vehicle Electronics,L.P’03. 3MexicoBujias NGK de Mexico S.A. de C.V.

’12. 11

BrazilCeramica e Velas de Ignicao NGK do Brazil Ltda.

’01. 12

FranceNGK Spark Plugs (France) S.A.S’00. 5U.K.

NGK Spark Plugs (U.K.) Ltd.

’01. 12

Germany

NGK Spark Plug Europe GmbH’04. 11Siam NGK Spark Plug Co., Ltd.

’02. 11NGK Spark Plugs (Thailand) Co., Ltd.

’12. 10NGK SPARK PLUGS (ASIA) CO.,LTD.

’16. 10Woo Jin Industry Co., Ltd.

’05. 4

NTK Technical Ceramics Korea Co., Ltd.

’06. 4NGK Spark Plugs Malaysia Berhad’06. 3NGK Spark Plug (Shanghai) Co., Ltd.

’07. 4

Changshu NGK Spark Plug Co., Ltd.

’14. 3

Indonesia

P.T. NGK Busi Indonesia’07. 10India

NGK Spark Plugs (India) Pvt. Ltd.

’10. 12South Africa

NGK Spark Plugs SA (Pty) Ltd.

’08. 4ThailandSouth Korea
Malaysia
China

131

Environmental Accounting

Environmental Accounting
Environmental Conservation Cost
(Unit: million yen)
Items
Classification

Non-consolidated
Investment

Major efforts

Pollution

Air/water pollution

prevention

prevention and noise

cost

reduction

Costs

Globalwithinenvironmental Global warming prevention,

theconservation

business

cost

area

Resource
circulation costenergy conservation

cost

Investment

Expense

2015

2016

2015

2016

2015

2016

2015

2016

16

23

442

335

129

48

863

788

15

16

374

372

38

88

472

443

8

26

285

415

52

55

464

606

38

65

1,101

1,122

219

190

1,799

1,836

0

0

0

0

2

0

15

9

3

12

476

879

14

18

538

938

732

1,562

8,721

9,445

732

1,562

8,721

9,445

0

0

305

310

2

1

311

316

0

0

10

10

0

0

10

10

0

0

0

4

0

0

0

4

1,640 10,613 11,770969

Effective resource utilization,industrial waste
treatment/disposal
Sub-total

Upstream & downstream

NGK SPARK PLUG Group

ExpenseEmployee environmental
education, EMS construction
and operation
Employee environmental

Management activity cost education, EMS construction
and operation
R&D of products promoting

R&D cost

environment preservation
NatureSocial activity costprotection,aﬀorestation, environmental
ads

Environment damage

Repair of soil contamination,correction cost

disrupted nature

Other costs

－
Total

773

1,772 11,394 12,559＊Any inconsistency between an aggregate of all itemized ﬁgures and a “Total” ﬁgure is due to rounding of fractions.

Economic Benefits Associated with Environmental Conservation Activities (non-consolidated)(Unit: million yen)
Area of recognized effectRevenue

2015

Revenue generated from the recycling of waste generated in operations or usedproducts
Energy cost saving achieved from energy conservation efforts

Cost saving

Reduction of water expenses through water saving

93

2016
99

35

17

0.45

0.41

Waste disposal cost saving achieved by resource conservation and recycling efforts

0.33

1.6

Total

129

118

132

Environmental Accounting

Quantity of Environmental Conservation Benefits
Classification

Non-consolidated

NGK SPARK PLUG Group

Difference

Effect measured
in the business

Types of effect

2015

2016

area

from theprevious

Difference
2015

2016

fiscal year
Purchased electricity
Energy(GWh)17,25817,388from theprevious
fiscal year130

32,43333,9101,476

3Effect measured consumption Gas (million m )

770

699

-71

1,150

1,175

25

LPG (million m3)

3,392

3,688

296

6,943

7,181

238

with respect toresource input

Water

Tap water (m3)

365,970314,010-51,961

681,744

706,115

24,371

into operations

consumption Well water (m3)

300,665

293,768-6,897

622,529

535,419-87,110

586

599

13

864

856

-8

129,184

129,19712

236,452

246,299

9,847

6,600

6,672

73

10,782

11,944

1,162

27

24

-3

40

49

9

0.8

2.5

2

141

141

1

Quantity of PRTR law-regulated
substances handled (tons)
CO2 emission from energy
Effect measured consumption (tons)
Effectively utilizedwith respect toenvironmentalload and wastefrom businessactivities

Waste

mass (tons)
Buried, incineration(tons)

PRTR law-regulated substances
released into air and water (tons)* Transport energy data and sales oﬃce data is not included.

133