Message from the President,
Although the earth s natural environment has in its own cycles built-in functions to absorb
and mitigate environmental load generated from socio-economic systems, their capacities arelimited. Today, the earth environment problems have grown serious, leaving both spatially andtemporally extensive impacts such as the global warming and the loss of biodiversity.
Under these circumstances, what is required of us is to achieve the improvement of eco-efficiency
surpassing economic growth. It is also essential that producers, consumers and the administration
should make their endeavors for environment preservation in their respective positions.
Our company is making progress incessantly, eyeing the technological fronts in the motorizationrelated area such as spark plugs, sensors and the information & telecommunications area, using
ceramic technology as our core competence.
Since our products are used mostly as parts of another product, demonstrating advantages in termsof impacts on the environment is more difficult for them than for final products. We, however, havedeveloped and released onto the world market a number of truly environmentally conscious
products in our business areas.
Our spark plugs can extract the full potential out of engines in the entire revolution range from alow speed to a high speed. Our oxygen sensors contribute to global warming prevention throughenergy conservation and exhaust quality improvement, since they help control the oxygen content inexhaust gases. In the information & telecommunications area, we are developing a sophisticatednew IC package technology to improve the processing speed and performance of MPU (microprocessor unit) as well as help miniaturize and reduce the weight of MPU.
Meanwhile, we must implement consistent measures to control environmental impacts from ourbusiness activities. As an actual improvement made in FY2002, we established technology to switchfrom chlorinated organic solvents to alternative media and completed a total switchover in
November 2002.
In the area of the reuse of waste as resources, the Miyanojo Factory achieved zero emission in
September 2002 as a result of the promotion of sorted collection and recycling. Other factories
continue their effort to attain zero emission for the achievement of zero emission within FY2003.
With respect to chemical substances control, we have established a system to control them including
those subject to the PRTR law according to their hazard ranks. Now we are planning to introduce
an online system for MSDS (Material Safety Data Sheet) management in FY2003. Although weachieved 15% reduction of CO2 in terms of emission per unit production relatively to 1990, the total
CO2 emission had increased due to increased production. We will continue our efforts for
improvement steadily including the renovation of production facilities.
As a part of an effort to implement environmental management in our operations including thoseundertaken by affiliates, the five domestic affiliates (included in our consolidated base accounting)obtained registrations in FY2002 and we aim to obtain a single ISO14001 registration for the entire
group companies by the end of FY2003. We also intend to enhance environmental management inour overseas operations through adoption of consistent management policies and promotion ofcentralized control.
In tackling environmental problems, we need to continue our endeavors in a steady, consistent,manner based on a sense of participation cultivated in each employee s mind. In the meantime, weshould maintain good communication with the public on environmental affairs as part of our social
responsibility.
We release our Eco Report 2003 covering FY2002 here. (We are planning to report our group,companies efforts separately in site reports in the future.) We believe this booklet will help you
grasp the achievements we made in our activities to pursue sustainable growth with principal
emphasis on environment preservation. We hope to obtain your understanding and support as wellas hear your frank opinions.

President Seiji Haga◇Message from the President

Activity topics◇Table of Contents
Editorial Policy◇Corporate profile■Corporate data
■Products supporting the world■Corporate philosophy■The history of our environment preservation activities◇Our business activities and environmental impacts■Relations between our operations and the environment■Impacts on the environment from our operations■Recycling of wastes◇Environmental principle■Environment declaration■Environment policy■Environment action schedule◇Environmental management system■Editorial Policy
In editing this report, we place emphasis on a lucid presentation illustrating the activities
promoted at NGK SPARK PLUG to lower environmental load. We used theEnvironment Report Guideline,
Sustainability Reporting Guideline andEnvironment Reporting Guideline released from the Ministry of Environment, GRI
and the Ministry of Economy, Trade and Industry respectively as reference.
○Intended readers : All stakeholders including customers, investors, shareholders, residentsof neighboring communities, business associates and employees.
○Period covered : Data cited are actual figures recorded for the period from April 1,
2002 to March 31, 2003.
○Scope of coverage : NGK SPARK PLUG Co., Ltd.: Head Office/Factory, Komaki Factory,
Miyanojo Factory, Ise Factory
Domestic affiliates (7 companies): Iijima Ceramic Co., Ltd.
Nakatusgawa Ceramic Co., Ltd.
Kani Ceramic Co., Ltd.
Nansei Ceramic Co., Ltd.
Nittoku Alfa Service Co., Ltd.
Nittoku Unyu Co., Ltd.
Ceramic Sensor Co., Ltd.
※Where a different definition applies such as for environmental
accounting, the scope of coverage is specified in each article.
○Issuance: August 2003
●This is the fourth report published annually since the first one in 2000.
●The Japanese edition of Eco Report is also available.
●Eco Report 2003 and previous issues are also available at our
web site: http://www.ngkntk.co.jp/environment/○Next publication schedule : August 2004
○Publishing director : Genjiro Hashimoto (Chief Environment Administrator)○Editor in chief: Shunichi Takagi (General Manager, Environment & Safety
Management Dept.): We have covered detailed data of our environmental load reduction
activities promoted at the four factories of NGK SPARK PLUG (Head
Office/Factory, Komaki, Miyanojo, Ise), Iijima Ceramic, Nakatsugawa
Ceramic, Kani Ceramic and Nansei Ceramic as site reports. Nittoku
Alfa Service, Ceramic Sensor and Nittoku Unyu are included in thereport for the four factories of NGK SPARK PLUG. Contacts forrequesting site reports are shown in the Data Section (P28).
○Communication : ●Stakeholders: Messages on this report were received from four
stakeholders. (P29)○Site reports●Questionnaire: The following subjects in which many readers
expressed their interest in the questionnaire survey in Eco Report
2002 were reflected to this report.
○Introduction of environmentally conscious product development.
○The state of green procurement promotion.
○Communication with local communities.
●Mail address: To hear opinions or questions on our environmental
effort from more people, we have designated the following mailaddress as the dedicated e-mail address for environmental affairs.
eco@mg.ngkntk.co.jp■Organization■Increase of operation sites with registered EMS under ISO14001■Environmental management system audit■State of compliance with statutory regulation■Risk management■Environmental accounting■Eco-efficiency■Green procurement◇Measures to prevent air, soil and water pollution■Construction of a system to control hazardous substances■Cases of successfully achieved improvement◇Promotion of energy conservation■CO2 reduction plan
■CO2 emission reduction■Trends observed in our energy consumption■Cases of successfully achieved energy conservation■Logistics◇Reduction and effective utilization of wastes■Zero emission activities■Activities to reduce total waste generation■Cases of successfully reduced wastes◇Environmentally conscious product development■Environmentally friendly technology■Eco-products■LCA◇Communication■Communication with local communities■Acceptance of visitors for a plant tour
■Commendation and accreditation◇Environmental training and education■Internal network■Measures to encourage the acquisition of generally accepted qualifications■Employee magazine Nittoku■Environment convention■Nittoku environment news letter■Environment card

◇Occupational safety and hygiene■Basic policies■Safety and hygiene management organization■Risk assessment■Trend of an index showing the frequency and seriousness of accidents resulting in absence from work
■Mental health■Earthquake disaster prevention committee◇Employment and personnel management system■Development of workplaces friendly to women■Re-employment system of ex-employees who retired because of the retirement age■Support to volunteer activities■Happy life seminar◇Data section◇Messages from stakeholders◇Closing remarks

Corporate profile
Corporate profile

Corporate data
Corporate name : NGK SPARK PLUG CO., LTD.
Head Office: 14-18, Takatsuji-cho, Mizuho-ku, Nagoya
Foundation: October 26, 1936
Capital: 47,869,270,000 yen
1Business: ○Manufacturing
and sales of spark plugs and related
products for internal combustion engines
2○Manufacturing
and sales of new ceramics and theirapplications.
Group companies : 34 subsidiaries（13 in Japan, 21 overseas）, 7 affiliates■Corporate performance （FY2002）
Non-consolidated

Consolidated

Sales

192,002228,928

Recurring profits

12,26415,018Net profits

5,884

7,347

Net profits per share

25.86

32.36

Number of employees

5,053

9,306

※The unit of sales, recurring profits and net profits for the year is million yen, and the unit of net profits per share is yen.
※The number of employees is as of March 31, 2003.

■Graphical representation of corporate performance indicesNon-consolidated■Sales（million yen）
205,000■Recurring profits■Net profits for the year and net profits per share（million yen）
25,000（million yen）
12,000200,000

20,220

195,000

192,002

190,000

20,00035

10,664

5,142 5,132
5,053

25.86
6,000

21.13

25

8,921

20

21.48

4,000

4,000

165,000

6,408

160,000

4,944

5,000

30
12,26410,0005,402

4015,000169,776
168,072（people）
6,000

45

8,000

180,000

170,000

net profits
per share

10,000186,701

185,000

175,000

46.16

198,644■Employees
（yen）
50

15

17.21

5,000

10
2,000

155,000

5

150,000

0
1998

1999

2000

2001

2002 （FY）

0
1998

1999

2000

2001

2002 （FY）

4,701 3,830 10,537 5,002 5,884
1998

1999

2000

2001

0
2002 （FY）

3,000
1998

1999

2000

2001

2002 （FY）

Consolidated■Sales■Recurring profits（million yen）
230,000

228,928（million yen）
25,000■Net profits for the year and net profits per share（million yen）
14,00024,723

224,268
221,419

225,000

55
9,491 9,417
9,306

50

20,00045

215,000

10,00040

15,018210,000

15,000

32.36

8,000

205,000
200,000

10,761

6,000

10,000

24.69

29.56

8,832

25

188,743

20

20.80

4,000

185,000

9,000

35
30

11,274 11,314

195,594

195,000
190,000

net profits
per share

12,000220,000■Employees（yen） （people）
60
10,000

57.19

5,000

10

2,000

180,000

8,000

15

5

175,000

0
1998

1999

2000

2001

2002 （FY）

0
1998

1999

2000

2001

2002 （FY）

5,493 6,578 13,056 4,843 7,347
1998

1999

2000

2001

0
2002 （FY）

7,000
1999

2000

2001

2002 （FY）

Corporate profile

Products supporting
the world

Corporate philosophy
Aiming to become a proposal-making corporation,●Spark plugs & Glow plugs

we continue to present new values to the world.

They are essential parts for automobile

With global views and ideas, we pursue new values linking technology and people.

engines. NGK spark plugs have developed〈Slogan〉

with the history of the company. Ourcurrent development emphasis is placedon an environmentally conscious design
ensuring

consistent

efficiency,

With established trust and confidence inside andoutside the company, we aim to contribute to the peoples of the world
by creating and putting at their disposal new values for the future.

betterexhaust quality and energy saving.

●Sensors

Corporate philosophy

We have developed and marketed various
types of sensors that are indispensable incontrolling emissions and improving thefuel efficiency of vehicles, conserving
energy and global warming prevention. We
have also developed sensors which aid inpreserving our comfortable living space.

●Semiconductor components
Our ceramic and organic packages fulfill
diversifying requirements of semiconductor
components that sustain the evolution ofManagement policy

Commitment

Action guideline

We offer a working environment in which
each one of us is encouraged to makefull use of his or her personality andcapability. With all our power, we arededicated to pursue management basedon trust and confidence.

With full use of the most suitable
technology and our accumulated
experience, we continue striving to offer
new values to the peoples of the world.

Ever onward!
Always mindful of what is the best
course, we swiftly put it into action.
Adopted in November 1996

the IT industry, while allowing them toattain higher integration, larger throughputs

The history of our environment
preservation activities

and smaller size for better environmental
compliance.
Feb.1973

Safety and Environment Section (present Environment & Safety●Electronic components

Management Dept.) was established.

MobileSafety and Sanitation Committee and Antipollution Committee werephoneshave

become an,indispensable item in people s life today.
Working inside them are our dielectricfilters and antennas, essential for sending

established.
Mar.1974

Komaki City.
Apr. 1980

or receiving radio waves. It is our never-

Antipollution agreement was concluded between Miyanojo Factory and
Miyanojo Town.
Energy Conservation Expert Committee was established.

ending challenge to achieve clearer voicecommunication and lighter weight.

Antipollution agreement was concluded between Komaki Factory andNov.1980

Miyanojo Factory introduced a closed wastewater treatment system to its
plating plant.

●Cutting tools

Nov.1993

Antipollution agreement was concluded between Ise Factory and Ise City.

Apr. 1994

Ise Factory introduced a closed wastewater treatment system to its plating
plant.

Our advanced cutting tools developed with

Apr. 1999

Environment declaration was announced.

unique technology are enjoying a goodJun. 1999

Reorganization of Antipollution Committee into Environment Committee.

reputation: the ceramic series is suitable

Environmental

for high-speed cutting of cast iron andConservation Expert Committee was organized.

heat-resistant alloys, while the cermet
series is used for semi-finishing andfinishing of various steel works.

management

systemwasreviewed

andEnergyAug.1999

Head Office/Factory obtained an ISO14001 registration.

Oct. 1999

Waste Sub-committee, Green Procurement Sub-committee, Chemical
Materials Sub-committee were established.

Sep.2000
Dec.2000

The first edition of Eco Report was issued.

,
A single ISO14001 registration covering the company s entire operationsites (Head Office/Factory, Komaki, Miyanojo and Ise) was obtained.

●Ceramic application products
We also offer a variety of products thattake advantage of the features of new
ceramics. They cover a wide range ofJun. 2001

The first environment convention was held.

Jul. 2001

Cogeneration plant was installed in Miyanojo Factory and utilization ofplating plant waste heat was commenced.

Sep.2002

Miyanojo Factory achieved zero emission.

Dec.2002

A single ISO14001 registration covering the Nittoku group (including the

product areas including from industrial

following affiliates: Iijima Ceramic, Nakatsugawa Ceramic, Kani Ceramic,

machinery parts to ozonizers as an ecoproduct, ceramic heaters as a consumer
product and artificial bones.

Oguchi Seiki, Nansei Ceramics) was obtained.
May 2003

Voluntary soil survey and soil improvement was performed on thecompany premises and reported to Nagoya City.
Head Office/Factory and Komaki Factory achieved zero emission.

Our business activities andenvironmental impacts

Our business activities and environmental impacts

Relations between ouroperations and the environment
While the commercialization of fuel cells, a much expected energy
source causing very low environment load, is desired, we are also
promoting the development of sensors used in combination with fuel,cells, but engines burning fossil fuel are still leading the world s
motorization scenes at present. NGK spark plugs that provide ignition
sparks for all sorts of engines used on land, at sea or in the air andvarious sensors monitoring engine performance keep on working all thetime in their respective places to maximize efficiency and minimize
environmental load.
Innovations to the size and performance of our semi-conductor andother high-tech ceramic components, has provided a means to improvethe environmental compliance of the telecommunications equipment inwhich they are installed.

Impacts on the Environment
from our operations.
Our products are composed mainly of ceramic and metal parts.
Ceramics consume much energy during the sintering stage of theirproduction. In the old days, everyone looked admiringly at black smoke
rising from the chimneys as a fine symbol of the ceramics industry.
Many things have changed since then, the least of which being thechange from Type A Oil to natural gas as a cleaner burning fuel that
greatly reduces pollution. Our manufacturing plants are focused onminimizing material waste and ensuring production processes such as
plating of metals are conducted in a way to minimise environmental load.
Our product development teams are also focused on minimizing
environmental load by striving to reduce the size of products and usingmaterials with minimal byproducts, and all the while, ensuringperformance is maintained.

Commitment to Recycling
We have achieved zero emissions at three out of four operation sites inJapan. This was achieved by reusing ceramic refuse, improving the lifeof chemicals used in plating processes and recycling plating sludge.
We strongly promote the use of recycled materials. In our sites we use
construction materials (steel frames, cement, bitumen) made of recycled
sintered ceramic waste and other composite material waste generated in
the factories. The use of recycled materials extends further with our useof recycled copy paper, toilet paper and cloths throughout the company.

,
NGK SPARK PLUG s material balance in FY2002○Copy paper■Copy paper consumption : 50ton(62ton)○Staple raw
materials■Ceramic materials : 12,605ton■Metal materials : 19,368ton○Other materials/
auxiliarymaterials■Plastics : 632ton■Solvents : 8,042ton■Oils : 693ton■Others : 1,294ton

○CO2 emission
from energy
consumption■Diesel oil : 291KL■Kerosene : 4KL■Production : 121,384ton(152,619ton)■Transportation : 765ton○Release of
PRTR-regulated
substances■Air : 16.1ton(144.3ton)■Water : 0.5ton(0.9ton)■Products : 27,064ton■Wrapping/packaging : 2,295ton○Product
shipment■Wastewater : 1,660,401ton(1,949,711ton)■Tap water : 747,364ton(909,559ton)■Well water : 913,037ton(1,040,152ton)○Wastewater○Water※○Wastes■Recycled wastes : 16,073ton(18,304ton)■Landfill/burning disposal : 594ton(1,191ton)■Plant recycled water : 752,222ton(818,940ton)■The figures in parentheses represent data for the Nittoku group, which include affiliates (Iijima Ceramic, Nakatsugawa Ceramic, Kani Ceramic, Nansei Ceramic andCeramic Sensor) besides the four NGK SPARK PLUG factories (Head Office/Factory, Komaki Factory, Miyanojo Factory and Ise Factory).
※Since some operation sites have no installations to measure discharged volume, the combined volume of tap water and well water was taken as wastewater volume.

Our business activities and environmental impacts○Energy■Purchased electricity : 190,310,000KWH(272,620,000KWH)■Gas : 15,522,472m3(16,228,929m3)■LPG : 1,334,668m3(2,039,497m3)■A oil : 3,151KL(3,201KL)

Environmental principle
Environmental principle

Environment declaration(made in April 1999)

We aim to create new values through all our corporate activities such as
development, manufacture and sales of environmentally friendly NGK
spark plugs and NTK new ceramics products and the provision ofservices relating to them as a company protecting the global
environment and living in symbiosis with society.
In order to achieve this goal, we have compiled an environment action
schedule based on our environment policy and will promotemanagement permitting sustainable development and corporate
activities always considerate of environment preservation.

Environment action schedule(drawn up in April 2002)

Item

FY2002 objectives●To continue an effort to obtain registrations

EMS construction

to have major domestic affiliates registeredby FY2003.

●To promote thorough control of the releaseand transfer and reduce the use of hazardous
substances (those subject to PRTR law inparticular).

Environment policy(revised in April 2000)

1. We commit ourselves to environment preservation and will grasp theeffect of corporate activity on the environment accurately, setenvironmental objectives and targets, and review them regularly forcontinual improvement of our Environmental Management System(EMS) and performance.
2. We will comply with all the requirements concerning environment
preservation of laws, regulations and agreements and every otherrequirement we have accepted.
3. Priorities in environmental measuresa. We will endeavor to prevent air, soil and water pollution.
b. We will promote energy conservation.
c. We will promote the reduction and effective utilization of wastes in abid to make good use of resources.
d. We will endeavor to design and develop environmentally conscious
products.
e. We will always respect the environment for local communities.
4. We will implement environmental education and PR activities so that
employees are conscious of the importance of and their role inpreserving the environment. We will also request our suppliers andcontractors to understand our intent and cooperate with us.

■〈Four Nittoku factories〉 include the Head Office/Factory (including Nittoku Alfa
Service), Komaki Factory (including Ceramic Sensor and Nittoku Unyu), Miyanojo
Factory and Ise Factory.
〈Affiliates〉mean our four affiliate companies, Iijima Ceramic, Nakatsugawa
Ceramic, Kani Ceramic and Nansei Ceramic.
〈Group companies〉refer collectively to the four Nittoku factories and the affiliates.
■ 2003 Action Schedule includes a medium-term plan covering until FY2005.
■ For action schedules of affiliates, please see site reports.
※1〈Komaki Factory direct sector〉fell short of the target because it failed to achieveenergy saving proportional to the declined sales.
〈Miyanojo Factory〉fell short of the target because heavy-oil fired cogeneration
system introduced in June 2001 increased its CO2 emission.
〈Ise Factory indirect sector〉 recorded an increase of CO2 emission by 26%
because an incineration plant started operation in March 2003.
※2 Since the rate of wastes utilized effectively was improved, we advanced thetarget year to achieve zero emission by FY2003.
※3 We did not record any violation of a law or regulation concerning the environment.

Air, soil and water pollution
prevention●To disuse chlorinated organic solvents totallyat all factories in Japan by FY2002.

●The direct production sector will decrease

Energy conservation
promotion

total CO2 emission per unit production by
1% per annum.
●Other sectors will decrease total CO2

emission by 1% per annum.

Reduction and effective
utilization of waste●To achieve zero emission at all factories inJapan by FY2004.

●To further enhance the lines ofDevelopment ofenvironmentally conscious
products

environmentally conscious products.
●To construct and operate an environmental

assessment system for product design anddevelopment.

●To promote cleanup activities in theneighborhoods of factories.
Respect for the environment
for local communities●To promote the beautification of factories,

premises.
,●To actively participate in local communities
environment preservation activities.

Environmental principle

FY2002 achievements

Rating●Five domestic affiliates out ofnine obtained registrations in
December 2002.

●Each division identified a few

hazardous substances causing
the most serious environmentalload, implemented and confirmed
the effect of control measures.

●Chlorinated organic solventswere totally disused since
March 2002.

Direct Indirect
Head Office/
Factory○○

Komaki×○

Miyanojo

×

Ise

○

×

○ Achieved × Failed※1

FY2003 action schedule〈Group companies〉●To continue an effort to obtainregistrations to have major domestic
affiliates registered by FY2003.

〈Group companies〉●To promote thorough control of the use,release and transfer of hazardous
substances.
〈Group companies〉●To disuse ozone depleting
substances totally by FY2004.
〈Affiliates〉●To disuse chlorinated organic
solvents totally by FY2004.

〈Group companies〉●The direct production sector will
decrease total CO2 emission per unit
production by 1% per annum.
●Other sectors will decrease total CO2●Miyanojo Factory achieved

zero emission in September
2002.

emission by 1% per annum.

〈Four Nittoku factories〉●To achieve zero emission at every
factory by the end of FY2003 andpromote waste reduction. ※2〈Affiliates〉●To achieve zero emission by FY2005.

〈Group companies〉●To construct and operate EMS basedon ISO14001 at every operation siteof the Nittoku group.
●To construct EMS at major affiliates including
those operating overseas by FY2005.
〈Group companies〉●To promote thorough control and reduce
the use of hazardous substances.
〈Four Nittoku factories〉●To reduce the combined total release of
PRTR law-regulated substances by
50%, in the period FY2002 to FY2005.
〈Affiliates〉●To reduce the release of PRTR
law-regulated substances by 20%(per unit production), in the period
FY2001 to FY2005.
〈Group companies〉●To continue an effort to reduce CO2
emission and prevent global warming.
●The direct production sector will
reduce CO2 emission by 4% (per unit
production) from FY2001 by FY2005.
●Other sectors will reduce total CO2
emission by 4%, in the period FY2001
to FY2005.

〈Group companies〉●To continue an effort to reduce wastes
and promote effective utilization of
resources.

Relevant laws andregulations ※3●Environmental laws

and regulations in general●Offensive odor control law●Ozone layer protection law●Water pollution control law●Air pollution control law●Sewage management law●Law concerning special

measures against dioxins●Chemical substance control law●Poisonous and deleterious

substances control law●Law concerning special

measures against PCB●Soil pollution countermeasure law●Automobile NOx, PM

regulation law●Industrial water law●Industrial safety and health law●Energy conservation law●Law for promotion of

global warming
countermeasures●Kyoto protocol●Montreal protocol●Waste disposal law●Law for promotion ofeffective resource
utilization〈Group companies〉●To further enhance the lines of environmentally●Hexavalent chromium wastotally removed fromuse in spark plugs.
●Lead was totally removed anddiscontinued from use in theglaze of spark plugs.

●Cleanup activities were

undertaken two or more times
a year.
Actively participated in events
organized by local
municipalities as well.

conscious products.
●To construct and operate an environmental

assessment system for product design anddevelopment.
●To promote procurement of environmentallyfriendly materials.
●To achieve the following eco-productprocurement rates:
Four Nittoku factories: 85% or more
Affiliates: 70% or more

〈Group companies〉●To promote cleanup and beautification
activities in the neighborhoods of factories.
,●To actively participate in local communities
environment preservation activities.
●To improve transparency through information
disclosure and risk communication.

〈Group companies〉●To develop technology with life-cycle
assessment (LCA), which evaluatesenvironmental load and contributes
to environment preservation, taken
into consideration in the productdesign and development phase andpromote green procurement.

●Container and〈Group companies〉●As a member of the local community,
to continue an effort to form a
symbiosis with society throughenvironmental preservation activities.

●Fire services law

packaging recycling law●Green purchase law●Chemical substanceexamination andregulation law●ELV directive●RoHS directive●High-pressure gas

safety law●Noise regulation law●Vibration regulation law

Relating
pages

Environmental management system

Organization■Environmental management organization
President

Chief environment
administrator(Central environment
committee chairman)

Central energy conservation
expert committee
Central environment
committee

Environment
administrator

Waste sub-committee
Chemical materials
sub-committee
Green procurement
sub-committee

Operation sites

Environmental ISO
secretariat

Internal auditors

Environmental management system

Since 1973 we formed organized committees to be responsible forenvironmental issues and environmental preservation. To effectively
communicate and promote the environmental policies throughout thewhole company, we have enhanced the responsibilities of thesecommittees. Our present organization has a number of expert
committees and sub-committees, controlled by the Environment
Committee, each covering various specialty areas.
Under thisorganization structure, every committee has its own plans andobjectives, drawn from the Environment Policy, which they strive toachieve.

Environment committee

Energy conservation
expert committee
Waste sub-committee※Operation sites mean the Head Office/Factory, Komaki Factory,
Miyanojo Factory, Ise Factory and affiliates.

Increased the number ofsites registered to ISO14001
We are taking active steps to implement Environmental Management
Systems (EMS) to all our sites. Our EMS is based on the International
Standard, ISO14001. We believe that registration to this standard will
strengthen our management's ability to preserve the environment andimprove transparency of our activities to the public.

In December 2002, our four factories in Japan were registered together,under a single certificate. Our overseas affiliates are currently acquiring
separate registrations but in the future, we intend to combine all our sites
under the one group registration. Having the same registration for allcompanies, means that everyone follows the same environmental
policies, manuals and system. This allows for sharing of objectives,better information flow and control, and improved transparency among
the companies.

■ISO14001 registration status
Office/Factory

Date of registration

Head Office site

Head Office/Factory

August 1999

Komaki site

Komaki Factory

December 2000

Miyanojo site

Miyanojo Factory

December 2000

Ise site

Domestic
affiliates

Ise Factory

December 2000

Nittoku Alfa Service Co., Ltd.

August 1999

Ceramic Sensor Co., Ltd.

December 2000

Nittoku Unyu Co., Ltd.

December 2000

Iijima Ceramic Co., Ltd.
Nakatsugawa Ceramic Co., Ltd.
Kani Ceramic Co., Ltd.
Kamioka Ceramic Co., Ltd.
Nittoku Seisakusho Co., Ltd.

Overseas affiliates(only those thathave alreadyobtainedregistrations)Oguchi Seiki Co., Ltd.
Nansei Ceramic Co., Ltd.

December 2002

Nichiwa Machinery Co., Ltd.
Tono Ceramic Co., Ltd.

Registration
expected in FY2003

Certifying organization
TUVRheinland Japan

国際的な第3者認証機関TUVライン
ランドの「TUVdotCOM」に当社の認証情報が登録されました
ID:0091048237
http:www.tuv.com

NGK Spark Plug (USA), Inc., WV factory

July 2000

NGK Spark Plug (USA), Inc., IRV factory

August 2001

Ceramica e Velas de Ignicao NGK do Brazil Ltda.

December 2001

ABS QUALITY EVALUTION INC.

NGK Spark Plug Industries Europe S.A.

May 2000AFAQNGK Spark Plugs (UK) Ltd.

December 2001

BSI（British Standard Institute）

Siam NGK Spark Plug Co., Ltd.

November 2002

TUV

※Oguchi Seiki and Nittoku Seisakusho were agglomerated as Nittoku Seisakusho in April 2003.

TUV RHEINLAND OF NORTH AMERICA

Environmental management
system audit
We improve our EMS continually by letting PDCA cycles run along the
ISO environmental management system standard.
An internal audit conducted once a year is performed by teams of two
internal auditors registered with the company according to the internal
audit check list. If any nonconformities or problems are pointed out in theinternal audit, corrective actions will be taken promptly. The internal
auditors receive skill-maintenance training every year to maintain andenhance their auditing ability.

External Auditors audited the company's EMS in FY2002 and offered
twelve points for improvement across the four operation sites. At thecompletion of the audit, the auditors expressed their satisfaction that the
EMS was being properly operated and expressed confidence in our
process of continual improvement.

■Number of ISO14001 auditors
6

Assistant EMS examiners

254

Internal environmental auditors

Audit by internal auditors

Skill-maintenance training of internal auditors

State of compliance withstatutory regulation
To ensure compliance for our corporate activities, we give our best to
take necessary steps promptly to comply with any amendments to laws,
and to say nothing of the established statutory regulation, according to
the environmental measures stipulated in our corporate behavioral norm.
Our factories do their best to comply with the relevant statutory regulationand other requirements agreed to with the authorities according to ourenvironment policy. In addition, they have concluded antipollutionagreements with autonomous bodies and voluntarily accepted standards
harsher than those required under the law in an effort to prevent

pollution.
In FY2002, we had no reported violation of regulatory values nor any
actions or complaints were instituted or received from local residents withrespect to pollution or matters relating to it.

■FY2002 records for four Nittoku factories
Number of reported violations of statutory regulation, penalties and actions

0

Claims made by stakeholders

0

Risk management
We conduct environmental risk management according to ourenvironment policy to prevent air, soil and water pollution.
We also give our employees disaster control education and training toHistory of rectificationof soil contamination
June 2001〜
January 2002

February 2002

Reported the results to Nagoya City and submitted a soil
improvement plan.

June 2002〜
August 2002

Soil improvement work

November 2002

Pavement work completed and put to use as a parking lot.

May 2003

Submitted a completion report to Nagoya City and obtained
its approval.

prepare ourselves well in the event of an accident.

■Improvement of soil contamination at
the north parking lot of the Head Office
The Ministry of the Environment enhanced regulation of soil pollution by
enforcing the Soil Pollution Countermeasure Law based on theEnvironmental Quality Standards for Soil Pollution in February 2003. We
started a soil contamination survey of our plant sites in June 2001 to
identify the state of soil pollution. As a result of the survey, we found thatsoil was contaminated by lead and hexavalent chromium, which weredetected in the highest points at concentrations of about 12 times and1.2 times higher than their respective tolerable concentration levels insoil set by the standards, in the parking lot developed on the site of theformer north plant building. We voluntarily reported the results to Nagoya
City in February 2002 and promoted soil improvement work under theguidance of Nagoya City.

Actions
As a result of the soil survey at our Head Office/Factory,
contamination by lead and hexavalent chromium was
detected in the former plant site (present parking lot)

Environmental management system

Audit by external auditors

Environmental accounting■Effect of environment preservation measures shown in yen

In 1999 we introduced environmental accounting as a tool to facilitate
managerial decision making and promote information disclosure byquantitatively measuring investment costs and expenses incurred inconnection with environmental measures and their effect. For FY2002, we
prepared consolidated-base accounting data also covering our affiliatesthat attained ISO14001 registrations under our single registration certificate.
The total environment preservation cost incurred by NGK SPARK PLUG in
FY2002 was ¥7,789 million on a non-consolidated basis and ¥8,275 million
on a consolidated basis. The breakdown shows that over 60% of the
spending went towards R&D with costs within the business area as thesecond largest cost item.
The cost saving effect of environment preservation measures taken in
FY2002 was measured at ¥517 million.

The period covered is from April 1, 2002 to March 31, 2003.
Unit: million yen

Revenue

Areas of recognized effectAmountRevenues generated from the recycling of wastes
generated in operations or used products.

48

164

Energy cost saving achieved with energy conservation
efforts.
Cost
savingWaste disposal cost saving achieved with resourcesaving and recycling efforts.

117

Other cost saving achieved by environmental measurerelated rationalization.

188
517

Total

■Environment preservation cost

Unit: million yen

NGK SPARK PLUG (non-consolidated)

NGK SPARK PLUG
※2 (consolidated)

Investment

Investment

Items

Classification
Environmental management system

Costs

ExpenseExpense

Major efforts
FY2001

FY2002

FY2001

FY2002

Pollution prevention
cost

Air/water pollution prevention and noise reduction

474

142

1,063

1,109

151

FY2002

1,354

Global environment
preservation cost

Global warming prevention, energy conservation

8

6

132

128

7

152

Resource circulation
cost

Effective resource utilization, industrial waste
treatment/disposal

30

27

537

495

33

659

512

175

1,732

1,732

191

2,165

Recycling of products, etc., green purchase differences

0

0

5

5

0

5

Management activity cost

Employee environmental education, EMS
construction and operation

7

9

392

253

9

284

R&D cost

R&D of products promoting environment preservation

815

601

5,745

4,726

601

4,726

Social activity cost

Nature protection, afforestation, environmental ads

0

0

109

114

0

119

Environment damage correction cost

Repair of soil contamination, disrupted nature

within thebusiness area

Sub-total

Upstream & downstream cost

Total

0

0

17

1,334

785

8,000

※1

174

0

174

7,004

801

7,474

■Environment preservation cost has been classified into subsets according to the guidelines published by the Ministry of the Environment, while proportional allocation based on
rules set by the Nittoku group was applied in calculating each amount on the basis of actual investment costs, and expenses recognized as of a direct nature.
※1 Expenses associated with a voluntary soil survey and soil improvement work undertaken on the company s premises following the legislation of the soil pollution countermeasurelaw.
※2 Five affiliates, Iijima Ceramic, Nakatsugawa Ceramic, Kani Ceramic, Nansei Ceramic and Ceramic Sensor, are included in our consolidated-base accounting.

■Environment preservation effect measurements
Classification
Effect measured
in the business area

Types of effectEnvironment preservation effect (non-consolidated)
FY2001 results

FY2002 results

Year-on-year

Rating(consolidated)
FY2002 results

Energy consumption
Purchased electricity (10,000 KWH)

Effect measured
with respect toresources input
into operations

19,153

19,031−0.6 ％

27,262

Gas (m3)

15,485,436

15,522,472＋0.2 ％

16,228,929

LPG (m3)

1,124,996

1,334,668＋18.6％

2,039,497

A oil (KL)

2,455

3,151

＋28.4％

3,201

Tap water (ton)658,617747,364＋13.5％

909,559

Well water (ton)1,066,831

913,037−14.4％

1,040,152

552

510

−7.6％

738

60

50

−16.7％

62

118,197

121,384＋2.7％

152,619

Water consumption

PRTR law-regulated substance consumption (ton)Copy paper consumption (ton)CO2 emission from energy consumption (ton)Emission per unit production(ton-CO2/output added value) (ton/million yen)

Effect measured
with respect toenvironmentalload and wastes
from businessactivities

1.22

1.20

−1.1％

1.51

621,161

683,242＋10.0％

749,960

Recycled mass (ton)

13,406

16,073＋19.9％

18,304

Landfill, burning disposal (ton)

1,357

594

−56.2％

1,191

23

17

−26.1％

145

Recycled plant wastewater (ton)
Waste (ton)

PRTR law-regulated substance released to air and water (ton)Eco-efficiency
To realize a sustainable society, we need to heighten our resource andenergy utilization efficiency and lower environmental load per unit
economic activity as much as possible.

In our company, eco-efficiency is calculated withthe following formula, in which CO2 emission andwaste discharge from the production processes
are used as environmental load.

Output added value

Eco-efficiency

We intend to promote our environmental preservation activities withemphasis on eco-efficiency by using eco-performance indices.

■CO2 index from production■Waste index from production

84■Landfill/burning disposal
index from production
180

7

160

6

140

83

5

120

4

100

3

80

82

Environmental load

60

2

81

40

We intend to continue our effort to improve ecoefficiency.

1
80

2001

0

2002 （FY）

20
2001

2002 （FY）

0

2001

2002 （FY）※Output added value is calculated by subtracting the material
costs and the costs of outsourced processing from the sales.

Green procurement

In response to the growing need for control and reduction of the use of

In purchasing and using various supplies necessary for our routine
operations, we will shift our priority to environmentally conscious,
products. In this way, we will improve our employees consciousness ofenvironment preservation at our workplaces, while promoting various,
efforts leading to 3R s (reduce, reuse and recycle), energy and resource
conservation.

hazardous substances, we are controlling all hazardous substances
contained in the products and parts we procure by setting hazard ranks.

■Classification for hazard ranking①Inhibited
substances

Chemical substances designated by our company among those thatare subject to statutory regulation to ban manufacture, etc. underrelevant laws including Chemical substance examination andregulation law, Industrial safety and health law, Water pollution control
law, Air pollution control law, Ozone layer protection law, and Law
concerning special measures against dioxins because of their known
harm to the environment or human health.

②Limited
substances

Chemical substances designated by our company among those thatare subject to statutory regulation under relevant laws including Waste
disposal and public cleansing law and Law for promotion of global
warming countermeasures because of their known harm to theenvironment or human health.

③Voluntary control
substances

Chemical substances designated by our company among those thatare named in relevant laws including Chemical substance control law,
Poisonous and deleterious substances control law, Fire services law,and High-pressure gas safety law because of their suspected harm to
the environment or human health.

■Basic stanceIn procuring or purchasing raw materials, parts, goods and services,
we will ① give a careful thought to purchase only those things thatare really necessary, ② give priority to those that cause lessenvironmental load, and ③ purchase from suppliers who positively
commit themselves to environment preservation.

■Request to suppliers■Shift to eco-products promoted for
office supplies

In FY2002, we conducted an environmental
management status survey to hear from about
380 suppliers, an increase by 110 companies
over the previous year, their corporate attitudes
toward environmental affairs for correct
recognition and request for their cooperation to
our cause.
We are also promoting environment preservation
activities in cooperation with suppliers by
establishing in October 2001 green purchaseguidelines, which explain our basic idea on
green procurement to our suppliers, to bring ourenvironment policy into effect.

■State of ISO14001 registration of our major suppliers(results of FY2002 survey)

We are promoting a shift to environmentallyconscious eco-products that cause lessenvironmental load actively for office supplies
and daily necessities consumed in ourcompany. The ratio of eco-products to thetotal purchases reached 81%, an increase by
3% over the previous year, in FY2002. During
the year, we published internal guidelines in
October 2002 as part of our effort to improve,
our employees consciousness.
We intend to continue our effort along thepresent line to switch to products that are designed to allow replacement
or refill of consumable elements and increase the purchase of ecoproducts.

■Percentage of eco-products in the office supplies（％）

No planAll operation sites
registered

22%

14%

78

80

Registered in part
15%

Under study

Under preparation

36%

13%

81

85

68
60

40

40

20

0

1999

2000

2001

2002

2003（goal）（FY）

Environmental management system■Control and reduction of hazardous
substances

Measures to prevent air, soil andwater pollution

Construction of a system tocontrol hazardous substances
We have established a system to control hazardous substances
according to their hazard ranks (determined on the basis of statutory
regulation in Japan and overseas, developments anticipated in the
future, and customer-imposed regulation of the content in products) and
restrict their use from the development phase.

Having constructed an MSDS (Material Safety Data Sheet) management
system to ensure proper control of risks associated with chemical
substances, we provide information on approximately 3,000 products to,draw users attention to care required in handling and any applicablelaws.

■Control of PRTR law-regulated substances■PRTR law-regulated substance input and output

Measures to prevent air, soil and water pollution

We aim to reduce the release of PRTR law-regulated substances by
50% in the period FY2001 to FY2005. NGK SPARK PLUG as a wholehandled 29 substances totaling 510 tons (down 7.6% from the previousyear) and released 16 tons (down 27.3% from the previous year) in
FY2002. They included 15 substances subject to a reporting obligation
under relevant laws.
In FY2002, we established technology permitting the use of alternative
media to replace chlorinated organic solvents and completed a total
switchover.

Air

1

Chemical substances

Quantity
handledWater-soluble zinc compounds,
Condensation polymer of 4.4 -isopropylidendiphenyl
and 1-chloro-2.3-epoxypropane (alias, bisphenol
A epoxy resin) (only that in the liquid form)

39,393

Products
Quantity handled40

Ethyl benzene

2,520

43

Ethyleneglycol

1,440

63

Xylene

30

Water
9

1,206

29,092（44,392）

303

31,574
154,041

Decomposition reaction
RecycleFor four Nittoku factories

Soil

62,480Landfill disposal

For: four Nittoku factories
Removal/disposal
quantity
Decomposition
reaction

Quantity released and rating

Landfill

FY2001

Recycle
8

6,794

0

66

0

2,216

0

1,001
(Unit : kg)

Disposal as wastes

0502

237,240

Disposal by sale510,164

Release quantityAir

16,120
Water■Aggregate figures concerning PRTR law-regulated substances:
Ordinance
No.

(kg)

FY2002RatingQuantity handled
FY20018

9＋33,077

326

303

−

3,119

1,784

1,732

±

32,103

1,440
1,732（9,252）64

Silver and its water-soluble compounds

2,528

68

Chromium and trivalent chromium compounds

6,846（18,948）

69

Hexavalent chromium compounds

100

Cobalt and its compounds

108

Inorganic cyanogen compounds(except complex salt and cyanate)

144

Dichloropentafluoropropane

200

Tetrachloroethylene

207

Water-soluble copper salts (except complex salt)

211

Trichloroethylene

227

Toluene123,397（242,648）

230

Lead and its compounds

46,972（55,443）

231

Nickel149,767（152,255）

232

Nickel compounds

9,717（11,233）

253

Hydrazine（7,790）

（519）

270

Di-n-butylphthalates（36,011）（1,508）272

Bis (2-ethylhexyl) phthalates（1,931）

283

Hydrogenfluoride and its water-soluble salts（3,151）299

Benzene304

Boron and its compounds

309

Poly (oxyethylene) nonylphenolether

6,510

310

Formaldehyde

6,911

238

311

Manganese and its compounds

8,530

2

314

Methacrylic acid

1,342

133

346

Molybdenum and its compounds

20,266（20,266）

7,180（8,548）2300（3,629）299

33,0774,227（4,245）

4,147
2,113

2,568

7

7,178
（12,096）
10,410（1）

4,105（5,152）

2,370

59
38
（2,418）

10,4103,600

10,410729
36,974
1,085

38
1,085
120,696（120,696）

2,032（120,644）

3（4,590）

16,549（17,987）

6
（6）

7
（7）

2,790
（4,306）

9,357

＋

3,600

−

4,258
24,37528

38＋

10,867

1,085−

14,720

4,434

2,032

−

121,6643＋

90,922

6

−

8,974

162,033（384）（1,773）（4,325）（7,690）（1,612）（18）（3,119）
5,714

127
（127）

447
（447）

16,120502（144,279） （905）31（5,114）（7,730）

（105）

518
（569）

282
（305）

66

6,443

44

6,527
25

934

1,287
（14,625）
510,164（738,061）

447（1,086）

3
（3）

5,727
8,766
（10,396）991＋

154,041（161,291）

4

13

＋

7,166

894

619

−

8,448

6

238

＋

3,420

2

＋

5,578

133

−

1,557

7,592

8,087
275

55
（1,810）

52
（827）

1,001
（18,444）

62,480（88,172 ）

157

1,627
22,868

16,622−552,218■The figures shown in parentheses represent data of the Nittoku group, which includes our four factories (Head Office/Factory, Komaki, Miyanojo and Ise) and affiliates (Iijima Ceramic, Nakatsugawa Ceramic, Kani
Ceramic, Nansei Ceramic and Ceramic Sensor).
1) The shaded boxes show the substances we reported to the prefectural government, etc. pursuant to the PRTR law as substances required of a report in FY2002 (those that are handled in excess of 5 tons a year at
a location). When a quantity handled at a location (factory) was less than 1 ton, the quantities of such a substance were added to neither of the Release quantity and Removal/disposal quantity.
2) How to interpret ratings: − means a decrease from the previous year. ± means on the same level with the previous year (within ±5%). ＋ means an increase over the previous year.

■Major efforts to reduce the use of hazardous substances
Hazardous substances

Major actions taken

Chlorinatedorganic solvents

We totally disused chlorinated organic solvents(trichloroethylene, tetrachloroethylene, dichloromethane, etc.),
which were used as dispersant for making up raw material
slurries or cleaning agents, in March 2003 by developing
technology permitting the use of alternative solvents.

■Efforts to reduce the use of chlorinated organic solvents（kg／month）
12,0001,027

Head Office/Factory
Komaki Factory

10,000Miyanojo Factory
Ise Factory

8,000

6,319

6,000

PCB

High-voltage equipment and ballasts for fluorescent lamps
containing PCB are kept in good custody at the Head
Office/Factory and Komaki Factory.

Ozone-depleting
substances/
greenhouse gas

Tests are now underway to switch to alternative products:
dichloropentafluoropropane (HCFC-225)

1,026

4,000

1,753

2,000
2,519
0

Totally disusedin March 2003.

2,240

1999

1,008

574

1,756

171
731
451

90

0

2000

2001

2002

2003

（FY）

※No dioxins are generated from our operations.

Cases of successfully
achieved improvement■Actions to eliminate
hazardous substancesfrom a spark plug

◆Weight reduction (miniaturization)〔Continual improvement〕◆Lead-free glaze

Terminal, male (normal joint type)Lead-free glaze◆Environmental improvement made in the chromate
treatment process〔Switchover completed in FY2002〕
Key issuein thedevelopment

Body metal

How to maintain a glossy finish
and the smoothness of a surface.

GasketGalvanized colored chromate(containing hexavalent chromium)■Noise reduction of a mill blending/crushing operation
Glow Plug Dept.
Our crusher mill in the glow plug raw material process generated,
noises of over 90dB. To protect operators health and reduce
offensive noises crossing beyond factory borders, we studied thefeasibility of covering the equipment with various acoustic sheets,and found that a combination of an acoustic sheet with a metal liner
and an air-pack sheet, a cushion material with small cells containing
air trapped inside, could produce significant noise reduction. The
layer of air trapped inside an air-pack sheet produced an acoustic
effect greater than expected, allowing us tolower the noise level down to 81.2dB with asimple, inexpensive means. Then, the noiselevel was further lowered to 78.4dB, or a class
1 noise control level, with the implementationof a measure to control motor noise.
Mr. Kesamitsu Kanamaru,
Glow Plug Dept.

,
Can t hear voiceson the telephone.

How to provide a good anticorrosion
property without impairing the appearance◆History and results of improvements
Measures Schematic showing improvement

Acoustic material

Effect in dB

Originalstate

No measures taken

Measure1

An acoustic sheet with a metal
liner was wound around themill.

Measure2

The mill was wrapped three times
with an acoustic sheet, apolyurethane sheet on top of it,
and then an acoustic sheet again.

Measure3

The mill was wrapped with airpack sheets with independent
air cells twice and then an
acoustic sheet on top of them.

Measure4

The same acoustic measure
was applied to the sides of themill.

Measure5

The same acoustic measure
was applied to the front safety
gate.

◆Mechanism of the acoustic effect〈200L Mill〉

Noise,
Can t even have a chat.

Galvanized trivalent chromate(free of hexavalent chromium)〔Switchover completed in FY2002〕
Key issuein thedevelopment

Noisy

Key issue Approximately 6% weight reductionin thedevelopment was achieved in five years.

〈Air pack〉〈Acoustic sheet with a metal liner〉

NoiseSound-level meter
1○The
air pack diffracts and attenuates sound waves.
2○The
acoustic sheet with a metal liner further reduces noise.

Measures to prevent air, soil and water pollution

Glaze(containing lead oxide)

Resource saving,
improved fuel economy

Light weight achieved by thedevelopment of a compact spark plugPromotion of energy conservation

Trends observed in ourenergy consumption

CO2 reduction plan

■Electricity（10,000KWH）
25,000Consumption

Our stated goal is, The direct production sector should reduce CO2
emission per unit production by 4% from FY2001, and other sectors
should reduce total CO2 emission by 4% from FY2001 by FY2005.
Our FY2002 objectives are as follows:
・The direct production sector should decrease total CO2 emission perunit production by 1% per annum.
・Other sectors should decrease total CO2 emission by 1% per annum.

Ise Factory
20,000Miyanojo Factory
15,000

Komaki Factory
Head Office/Factory

10,000■CO2 emission reduction goal
1.6

Energy consumption per unit production
11.00

1.22

10

1.20

Reduced by 4%

1.15

1.0

︵

Promotion of energy conservation

2001

0.4
2005（goal） （FY）

2002

5,000

0

1990

1995

1998

1999

2000

2001

2002 （FY）■Gas (converted equivalent CO2)
（ton-CO2）
60,000Consumption

8︶

Energy consumption per unit production

Converted equivalent CO2

11.82(ton-CO2/million yen)

Converted equivalent CO2 ton-CO2

12.14
12

Ise Factory
50,000Miyanojo Factory
40,000
Komaki Factory

CO2 emission reduction

Head Office/Factory

20,00010,000
0

1990

1995

1998

1999

2000

2001

（KL）
7,000
Ise Factory

6,000

Miyanojo Factory

5,000

Komaki Factory

4,000■Energy consumption records (converted equivalent CO2)

Head Office/Factory

3,000
2.0

100,000

1.6

75,0001.2

50,0000.8

25,000

0.4

︵

︶

0

1990

1995

1998

1999

2000

2001

Energy consumption per unit production(ton-CO2/million yen)

Converted equivalent CO2 ton-CO2

125,000

2002 （FY）■Type A oil
Consumption

We reduced our CO2 emission by 15% from FY1990 to FY2002 in termsof energy consumption per unit production, thanks to improved
productivity, etc. In FY2002 alone, we achieved 1.1% reduction against
1% targeted in our plan.
To examine the breakdown by sector, however, the direct production
sector registered CO2 emission per unit production 1.4% worse than its
previous year figure, while the indirect sector improved CO2 emission perunit production by 10% (or by 6.6% in the total emission) and offset theincrease recorded by the direct production sector.
In the indirect sector, the energy conservation efforts made in theeveryday life of our exployees are beginning to bear fruits.

30,0002,000
IseFactory
Miyanojo
Factory
Komaki
Factory
Head Office/
Factory0.0
2002 （FY）

1,000
0

1990

1995

1998

1999

2000

2001

2002 （FY）,※The Miyanojo Factory introduced a cogeneration plant in FY2001, which pushed up the company s
overall heavy oil consumption.

■Composition of energy consumption (converted equivalent CO2)
8,538

（Unit：ton-CO2）（7%）

50,042（41%）

Electricity(purchased)

62,802（52%）

Gas

Energy consumption
per unit production

Energy consumption (converted equivalent CO2)
Output added value（FY2002）A oil

Cases of successfully achievedenergy conservation (Office sector)
Plug Planning & Administration Dept. and
Production Engineering Dept. of Head Office■Major actions and their effectA team of seven including the manager has
implemented various energy conservation
measures in its monthly activity to eliminate
wasteful use of lights and air-conditioning
systems without employing sensors orother automatic means as long as possible.
For improvement of lighting, we have
Mr. Akiyuki Saeki,
performed illuminance measurement during
Production Engineering Dept.
the day and night, at over 50 points, andreduced the number of fluorescent lamps according to the measurement,
results, while paying due respect to employees safety and health byensuring that specified illuminance levels and workability were bothsatisfied even after energy conservation measures were taken. As aresult, we achieved significant energy saving reaching 20% for airconditioning systems alone or 16% as overall electricity consumption.

FY2002●Installation of pull cord switches: 33 places

in Planning & Administration Dept. (October)(May)

Fluorescent
lamps●Installation of pull cord switches: 10●Installation of pull cord switches: 26

places in Production Engineering Dept.
(October)●Replacement of 23 lamps with dummy
lamps (December)places in Production Engineering Dept.
(October)●Appointment of persons responsible forturning off power. (October)Airconditioning
system●Installation of a timer on the locker●Installation of electric fans: 3 inroom air-conditioning system as aprecaution in case it is inadvertently
left on. (June)

Production Engineering Dept. (June/July)●Air-conditioning system disconnected bybreakers during off-season (April, May,
October, November)during long holidays (July, August,December, January)●Foundation of the departmental

energy conservation committee (April)●Toilet stool heaters turned off during

long holidays (May, July, August,December, January)●Formulation of electricity conservation

Othersrules.
●Adoption of LCD displays for PCs: 18
replaced (May)●Installation of shading films (June)●Posters urging to turn off lights put up(October)■Effect of conservation measures on electricity consumption（KWH）●An electric fan to equalize

temperature distribution within a room.

●Only one lamp is on

120,000

due to the dummy lamp
replacing the other one.

Other electricity
Electricity consumed byair-conditioning systems

100,000
7,609KWH
down by 7%
80,00015,089KWH
down by 16%
75,83560,00068,28458,721
5,526KWH
down by 20%

40,000●Installed a pull

20,00028,93728,8792000

2001

cord switch.
●Nice-to-turn-off-the-light poster

Logistics
We have rationalized our material flow systems linking our factories in
the production phase before the shipment of products by introducing
efficient transportation means and a modal shift as part of our effort to
reduce CO2 emission.

0

1
○We
have switched one of the three inland freight services
connecting Miyanojo Factory and Head Office to one utilizing aferry boat for the section between Osaka and Shibushi.
2○We
used to ship all the goods from Nagoya Port to overseas
destinations. Now we ship 40% of the final products from
Hakata Port, which is closer to the Miyanojo factory, thus
eliminating unnecessary transportation.

2002

（FY）

■Reduction of fuel consumed for transpiration（L）
450,000
405,809400,000
114,365

350,000
300,000■Major actions taken

23,353

Reduced by 28%

250,000
200,000
291,444150,000
100,000
50,000
0

2001

2002

（FY）

Promotion of energy conservation■Workplace implemented with energy conservation measures

FY2001●Review of collective control switches

Reduction and effective utilizationof wastes

Zero emission activities
As a result of our continual efforts over the past four years to promotesorted collection and recycling of wastes generated in various steps ofthe raw material, design and production processes, Miyanojo Factory
achieved zero emission with its recovery rate exceeding 98% in
September 2002. We aim to achieve zero emission at every factory in

FY2003. Those factories that have already attained zero emission willchange their view point and concentrate their efforts to minimize input
mass by promoting Reuse and Reduction of raw materials within
our company, grasping material flows of the entire processes as thematerial balance.

,■Nittoku group s zero-emission achievement targets and results
Head Office/Factory(May 2003)

Miyanojo Factory(September 2002)

Komaki Factory(May 2003)

90
80
70

Ise Factory

2000

A group affiliates

B group affiliates●Iijima Ceramic●Nakatsugawa Ceramic●Kani Ceramic●Nansei Ceramic●Kamioka Ceramic●Nittoku Seisakusho●Nichiwa Kiki
●Tono Ceramic

2001

2002

2003

2004

Recovery rate (%)

100
Miyanojo
Factory
Head Office/
Factory
Komaki
Factory

60
50
40
2005

2006

（FY）

■Trends of waste generation and the recovery rate
96.1%
96.1

1,600

100

90.8
90

1,400
79.3

80

1,200
74.6

70

1,000
800

Our definition of zero emission

Recovery rate (%)

Waste generation (ton/month)

Reduction and effective utilization of wastes

Article reported on the Minami Nihon Shimbun
on November 6, 2003

1004
1370

600

765

1117

60
50
Recycle/reuse
40

400

30

Landfill/burning
disposal

20
56
2002 （FY）

Recovery rate

200
342
200

0
1999

2000

113
2001

■Five steps providing
improvement
opportunities in therecycle center
The recycle center of each factory has a numberof steps providing opportunities
for improvement besides its
routine process to collect,
sort and compact wastes.
then take an action

In our company, zero emission is defined as the state in which thequantity of the wastes, including both industrial wastes and generalwastes from our operations, that is buried or burnt for disposal isreduced to a level that makes the recovery rate 98% or higher.
Setting the border line at 98% for zero emission is to avoid
excessive energy consumption that would result from perfectionism
to recover garbage such as cigarette butts and tea leaves, which ismost suitably burnt for disposal.
The recovery rate is the percentage of waste that is reused andrecycled.

［Collect］［Sort］

Centralized control for better efficiency

Sorted collection to recover wastes as resources

Activities to reduce total
waste generation
To suppress waste generation at the source, we are pushingdesigns/improvements that stop or decrease waste generation in various
stages of the production processes. Our improvements, include theadoption of different materials or product shapes in the product design
stage, the review of production conditions and the promotion of
optimization in the process improvement area and the reduction of defectrates and the elimination of waste in the production stage.

■Implementation of on-the-spot inspectionof waste-disposal service providers
The amended waste disposal and public cleansing law obligates anoperator to ascertain proper intermediary or final disposal of wastes
that are generated on the actual disposal site. We sent our 52
representatives to 23 waste-disposal service providers during
FY2002 and confirmed that their facilities and operation manners
were legal and satisfactory.

Cases of successfully
reduced wastes■Trail of reduction in our paper consumption■Reduction of copy paper（kg）

1,800x104sheets

We drew up basic policies to run a reduction campaign.

Ise
Miyanojo
KomakiHead Office(converted equivalent number of A4 size sheets)
80,0005,088■Basic Policies

7,363●In producing copies, use the both sides of paper to reduce paper

consumption.

720x104sheets

60,0003,268●As long as possible, documents should be distributed in anelectronic form. Papers should be converted into image files(Acrobat. Docuworks, etc.) wherever possible, while electronically
produced documents (Word, Excel, etc.) should be distributed via,
the company s local area network without printing them out.
●All documents electronically produced or received from otherdivisions should be checked on PCs by way of using the print
preview function, etc. so that print errors or print trials may be
avoided.

6,068

2,565

44,667

5,412

40,00034,26927,26823,444

16,472

13,183

2000

2001

2002

20,0000（FY）

20We have successfully reduced the discharge of used chemicals as liquid
waste from the organic package production process by extending theuseful life of chemicals through careful reexamination and review of the,chemicals properties and use conditions by all members of theworkplace. Although it was rather a short project lasting for half a year
only, we implemented improvements in stages, while maintaining thequalities, until we successfully reduced liquid waste to half.

Quantity of liquid waste per panel (l/panel)
17
15

16

12
11

10

10

10
8

5

0
Ave. for 5-7/2002 8/2002

9/2002

10/2002

11/2002

12/2002

4/2003［Compact］［Learn］［Communication］

Reduce volume to improve transportation efficiency

Find in wastes hints for a way to improve our operations

Opportunity to share environmental information

Reduction and effective utilization of wastes■Trail of reduction in the liquid waste quantity■Improvement of the useful life ofchemicals

Environmentally conscious productdevelopment

Environmentally friendly
technology

Antenna Switch
ModuleOur 25% global market share of automotive spark plugs is the highest in
the world. Our most recent success was the development of a spark plugusing iridium allow in the tip of the centre electrode. This spark plug offers
improved ignition, startup and acceleration performance of vehicles andhas contributed to a reduction of fuel consumption and exhaust emissions.
We also manufacture automotive sensors used to monitor exhaust gas
composition, temperature and air-fuel ratio during combustion. These are
all critical components in helping the vehicle's Emissions Control System
keep the vehicle running at optimal conditions and in doing so minimizing
pollution and improving fuel economy.
In response to the incessant challenges faced, we have successfully
developed a sensor for Fuel Cell Vehicles. This is a great step forward
towards the realization of these next generation cars with truly clean
emissions.

With high integration, minimalloss and high damping
performance, these components
have facilitated both low-profileand high-density packaging aswell as a reduction in size andweight of mobile communications
terminals.

Crystal Device SAW
Filter package
Compact and thin packages
that are surface mounted on
the circuit boards of communications
equipment, enabling a reduction
in size and weight.

In developing our semiconductor and electronic parts with smaller size andlower power consumption, we are contributing towards resource
conservation directly through less material used and indirectly by saving
power. We have also developed organic packages and filters used in PCs
and mobile phones, which develop incessantly toward downsizing. We
have also developed organic packages supporting high-density flip-chipbonding of multi-terminal IC such as MPU, etc.. using highly reliable, low
permittivity, low dielectric loss resin materials, and support products everadvancing in their performance, compactness and lightweight.
Environmentally conscious product development

In the ceramic application area, we have developed a ceramic heater byutilizing our IC package technology. It has achieved downsizing and weight
reduction from the conventional metal heater, while it provides betterchemical resistance and durability due to the characteristics of ceramics.
Cutting tools made of alumina- and silicon nitride-based ceramics andcermet cutting tools permit dry cutting, which means cutting without oil.
Ceramic cutting tools and cermet cutting tools are used for machining ofcast iron and steel respectively. These cutting tools have such advantages
that they permit a machining operation without cutting fluid, which turns toindustrial wastes, while their useful life as a tool is in no way impaired bydoing so.

Wide Range
Oxygen Sensors
Leading edge automotive sensors
capable of measuring a wide
range of air-to-fuel ratios from theexhaust gas.

Ceramic Heater
Composed of resistance wires
encased in ceramic bodies, theseheaters have excellent chemical
resistance, reliability and longevity.

Ceramic Cutting Tools
These ceramic cutting tools arecapable of dry cutting (i.e.
cutting fluid is not required)
which
resultsinlessenvironmental load.

Environmentally conscious product development

Iridium plugWith the adoption of a highmelting-point iridium allow in thecenter electrode, it realizes
excellent combustion efficiency
and good fuel economy.

Eco-products
While many of our products are small functional parts, each of them hassome function that connects the product to an environmental benefit.
Here, we will introduce you to some of our particularly environmentallyconscious products materialized with the newest technology from thoseLong Reach Small Spark Plug
Iridium Type,,exhibited at the Automotive Engineering Exposition (People s and Cars
Technology Fair) held in Yokohama on May 21 (Wed) through 23 (Fri),
2003.

Small Diameter Glow Plug
(M8-HEX 8)

Aim of development

Aim of development

Downsizing, lightweight and engine cooling
performance improvement (for high output engines)

Glow plug installable in a narrower space for theincreased freedom of cylinder head design.

Background Diversifying engine uses, higher engine output,

Backgroundfaster engine revolution speed
Freer engine layout, engine cooling performance improvement
Small spark plug

Effect

2. Lightweight
Engine3. Performance
improvement

When compared with the existing M10-HEX 12 type・Plug hole diameter▲3ｍｍ・Thread diameter▲2ｍｍ

1. Light-weight plug

▲20％

▲12％

performance
2. HighengineDirect injection, multiple-valve
and enlarged water jacket

・Higher output
・Permits multiple valves, larger valves, a sharp angle valve layout
・Antiknock performance ・Improved engine cooling performance permits
improvement
advancement of ignition timing by 3℃A

4. Plug performance

Equivalent to the existing iridium plug

3. Plug performance【Configuration】【Increased freedom for cylinder head design】【Configuration】

φ9
HEX14

HEX8
M8

（M10）
約120

Permits a sharp angle valve layout（Existing model）（HEX12）

φ10.5

Applied voltage11V05

10 15 20 25 30 35 40 45 50 55

Time (sec.)

HEX16
26.5
26.5

26.5

M12
Platinum alloy

19
19

19
M14

Iridium alloy

Proposed application〈Energized performance characteristics〉
Time to 800℃ at 11V = 3.5 seconds
Temperature after 8 seconds at 11V = 1030 ℃
Current at 11V after 60 seconds = 4A

（φ5.0）

φ4.4
φ3.5

Iridium alloy
Platinum alloy

Permits a larger valve〈Durability as energized〉
at 13V x 5 seconds = 500∞ or more

（Unit：mm）

Permits a larger water jacket

Proposed application

gasoline engines in general

Environmentally conscious product development

New Type NGK
Quick Glow Systema) 4 valve DI diesel enginesb) small DI diesel engines

Fuel Vapor Concentration
Sensor (FVCS)

Aim of development

Aim of development

Improvement of diesel engine startability
and emission

Development of a durable, non-heating type sensor
that can measure quickly and accurately the concentrationof fuel vapor gas (HC) under widely varying flow-rate,pressure and temperature conditions.

Background

20
18
16
14
12
10
8
（A）
6
4
2
0
60

Current

Permits a smaller plug hole diameter【Performance characteristics】
1100
1000
900
800
700
600
500
400
（℃）
300
200
100

Temperature

Existing
iridium plug

Small long-reach
iridium plug

Existing
iridium plug

Easier with a smaller glow plug hole

Equivalent to the existing plug

1 Light weight, small diameter
2 Creates extra room for engine head design

FeaturesFeatures

Small long-reach
iridium plug

Existing
glow plug

EffectWhen compared with the existing M14-HEX 16 X 19.0mm reach iridium plug
1. Downsizing

Enhanced emission regulation,
introduction of mileage regulation, higher engine output
Restrictions imposed by the direct injection system andmultiple-valve design on cylinder head design.

Existing
iridium plug

Small long-reach
iridium plug

Smallglow plug

Enhanced emission regulation, introductionof mileage regulation

Background
Quick controller

Enhanced exhaust regulation

Glow plug

Lower compression ratio will impair engine startability

Development of emission control system that makes SULEV
or zero evaporation as represented by PZEV feasible.

Effect1. Engine startability improvement, shorter pre-glow time,
Features

2. Engine emission improvement, steadier combustion

1 Pre-glow time shorten by 3 seconds→Rapid temperature rise achieved by the adoption of a smaller diameter (5.0 mm → 3.5 mm) heater section.
2 Stabilization of after-glow temperature→By the addition of a controller, glow temperature control has become possible with glow resistance monitoring.
(The existing model is left to cool down with the increase of engine revolutions)

3 Glow plug and controller failure diagnosis→Diagnosis results fed back to ECU. (In the case of the existing model, the detection of a glow plug failure on the user,sExpanded canister capacity, increased purge volume and frequency
make fuel vapor gas (HC) management a more serious concern.

EffectDuring a canister purge,

Mitigates emission and drivability deterioration(achievement of robust emission control)

1. Offsets delays by A/F feedback control
2. Copes with sharp changes in the concentration
Features【Application】
FVCS

part required through observation of lowering startability)
ECU【Glow plug temperature characteristics】

Key switch

OFF

Glow plug temperature: constant after-glow
temperature irrespective of engine revolutions

ON

︵
℃
︶

3seconds

Purge
air

Air flow meter

After-glow
2000rpm
After-glow

New model【Measurement principle】

4000rpm
Air only

2000rpm

Existing model

4000rpm

Transmission Air
Inlet

OutletPropagation time, short
Transmitted signal wave

【Output characteristics】《Measurement condition》
・Gas composition：n-C4H10=0〜100%、N2=bal.
・Gas temperature:room temperature・Pressure:atmospheric pressure
・Gas flow rate:0.5L /min.

4.5

Received signal wave

4.0

Reception
Valiance in the density
specific heat ratio

Pre-glow
Shortened
6seconds

Glow plug

Time (sec.)

Propagation time, long
Transmitted signal wave

With fuel

Inlet

OutletReceived signal wave
Fuel

（V）

small- and medium-size diesel engines

Proposed application

3.5
3.0
2.5
2.0
1.5
1.0

Piezoelectric ceramics element was applied. Ultrasonic propagation
time differences are utilized to measure the concentration of fuelvapor gas (HC).

Proposed application

Injector,s fuel injection system
is controlled to offset A/F
delays during a purge.

Sensor output

Failurediagnosis results

Battery

Canister

Purge valve
Intake air

EngineGlow plug temperature

Quick controller

Gasolinetank

Injector

ST.

Glow signal

ECU

Gasoline【System circuit diagram】

0.5
0

20
60
40
80 100HC concentration（％）

Hybrid vehicles corresponding to ZEV/PZEV LEV-II,
vehicles with high EVAP generation, vehicles having lean-burn enginesHydrogen Leak Monitoring
Sensor for Fuel Cell Application

Cutting Tool: HW2, HW3(alumina-based ceramic inserts)

Aim of development

Aim of development

Development of a safety sensor to detect a hydrogen leakfor fuel cell application.

High-speed dry machining
゛of cast ironBackground

HW2

Background

Registration under ISO14001,
reduction of plant equipment cost

Emission of fuel cell system is quite clean,but explosive hydrogen gas is used.

HW3

Environmental improvement, reduction of consumables (machining cost)
Reduction of energy required by the use of cutting fluid (circulation, filtration)

Safety system to prevent explosive accident is necessary.

EffectDisuse of cutting fluid

1. Because of its low power consumption,

It is useful to achieve more
safety fuel cell system.

continuous monitoring of gas leak is possible.

2. Quick response even at low concentration gas.
【Output characteristics】【Response time】〈Measurement conditions〉〈Measurement conditions〉

・Base gas：H2＝0〜2％,O2＝20.9％,N2=bal.,0％RH
・Gas temperature: 25℃ Gas flow rate：8L/min

・Base gas：H2＝0.5％,O2＝20.9％,N2=bal.,0％RH
・Gas temperature: 25℃ Gas flow rate：4L/min.（0.2m/s）

5.0

Excellent wear resistanceH2 concentration

Sensor output

●

3.0

●

2.5

●

2.0

●

（V）1.5●Fracture toughness（F/％）

HW3

100

20

0.4

20
75

Traditional ceramic
bead sensor

0.3

19

（％）

17

,
Competitor s product A

0.0
0

H2 concentration（％）

1

2

3

4

5

6

Time（sec.）

1 Adoption of a micro-heater bring low power consumption and quick response.
2 Very low concentration gas can be detected due to the contact combustion method.
3 Can be arranged for various onboard installation conditions.

【Sensor structure】
Detective sensor(with catalyst)
Si

Reference sensora) Fuel cell vehiclesb) Stationary fuel cell (ex. home-use)

16

HW2

15

HW2

18

0.1

●

HW3

HC1
50

HC1

0.2

●

0.5 ●
0.0
0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0

Strength（Hv/GPa）
25

21

0.5

●
●

3.5

Application

Higher strength and toughness compared with existing alumina tools

2. HW3Hardness（Hv/GPa）
Developed model●

4.0

Features

1. HW2

0.6

4.5

1.0

Effect

3.0

3.5

4.0

4.5

5.0

5.5

Fracture toughness Kc/MPa√m

Features

25

10

0
400

0
500

600

700

800

Strength σf/MPa

900 1000

HC1

0

200

400

600

800 1000 1200

Temperature（℃）

1 Because of its strength and toughness surpassing that of the conventional alumina tools,

HW2 ensures stable machining operation as well as a longer life.
2 HW3 shows unparalleled wear resistance due to its alumina structure reinforced with ahighly heat resistible special additive permitting a still faster machining speed.

a) Rough machining and finishing of liners
Applicable works b) Machining of cast iron with a high-speed lathec) Rough machining of cast iron rolls

We intend to promote technological development, paying attention to
LCA (Life Cycle Assessment), which helps promote environment
preservation by providing the overall picture of environmental loadcaused by a product in its design and development stage.

■Comparison of LCA of ceramicand organic IC packages■Ceramic package

For IC packages designed for the same application, but varying
in the base material, we conducted an LCA to identify theirimpacts on global warming (CO2 emissions) over the period fromthe collection of raw materials to production.
An organic package generates 30% less CO2 per package,
while a ceramic one generates 30% less CO2 per weight.
Through this study, we were able to understand that what reallycaused considerable environmental load in the production
process was gold used for plating besides possible energy
conservation measures identified for various processes.
We also learned that we could find a number of areas thatwould provide effective means to mitigate environment load in the■Organic package

design of ceramic packages when product downsizing advancedin the future.

Environmentally conscious product development

LCA

Communication

Communication with local
communities
Corporations must make every effort to manufacture their products whilst
taking care of the environment around them. From visible pollution to
dusty air, from bad odors to minimizing waste, there are many areas topromote environment preservation activities in an attempt to harmonize
with the local communities and make our factories friendly to both people
and the earth. Extending on this idea, many of our employees haveembraced volunteer work and take part in community clean-up activities
to establish good relations with their neighbors. The Ise Factory has
developed a biotope, though quite small in size, where Cyprinodont andother aqueous inhabitants are beginning to settle. We are looking
forward to days when we can enjoy viewing fireflies with residents ofneighboring communities.
●Head Office/Factory●Komaki Factory●Iijima Ceramic■Sep. 2002 (30 people)
Clean-up around the factory and along thetrunk road.
■Oct. 2002 (5 people)
Clean campaign Nagoya 2002
■Mar. 2003 (30 people)
Clean-up along the trunk road around thefactory.In cooperation with Nagoya Chamber,of Commerce s No litter campaign.

●Miyanojo Factory■Sep. 2002 (50 people)
Clean-up around the factory and theHabashita river.
■Oct. 2002 (8 people),
Komaki City s stop litter resident rally
around the city hall.
■Apr. 2003 (9 people)
Komakiyama clean-up campaign.

● Ise Factory●Nakatsugawa CeramicCommunication

July 2002 (18 people)
Nov. 2002 (9 people),
Ise Factory s biotope■Oct. 2002 (19 people)
Clean-up of local roads around the factory.

●Nansei Ceramic

Feb. 2003 (14 people)

Acceptance of visitors
for a plant tour,
The need of mutual visits to study each other s environmental effort isperceived strongly for exchange beyond the type and scale of businessin order to spread the cause of environment preservation further insociety. It seems very important to have opportunities to see other,enterprise s operations, learn their environmental effort and listen to,other people s opinions on our environmental effort. Since environment
preservation is a common theme tobe shared in society, we will continue
our efforts to coordinate with otherrelevant organizations to realize a Visitand exchange workshop as a joint
event of the relevant government,
private and academic organizations.

■Sep. 4, 2002 (33 people)
Clean-up along the trunk road and schooldesignated commuting roads in Enza-cho.
■Sep. 11, 2002 (30 people)
Clean-up along the trunk road in Ueno-cho.

●Kani Ceramic

July 2002 (8 people)■July 2002 (26 people)
Clean-up of local roads around the factory.

Sep. 2002 (14 people)
Mar. 2003 (15 people)

Factory visited

Number ofparticipants

Sep. 2002 Kubota Yukyukai

Komaki57people

Apr. 2003

Nittoku suppliers association (material sector)

Head Office 22people

July 2003

Chubu Industrial Association, environmental study tour Komaki

Name of the plant tour

19people

Sep. 2002 (6 people)
Mar. 2003 (3 people)

Commendation andaccreditation
Energy conservation center distinguishedachievement award

Receipt of an eco-operation site certificate

Case report: Energy conservation of alarge-scale air-conditioning system achieved
with an outside air temperature control method

Nagoya city eco-operation site

Feb. 2003, Spark Plug Div. Komaki Production
Dept. Energy Conservation CenterMay 2003, Head Office/Factory Eco-City
Promotion Section, Environment Bureau,
Nagoya City

Exchange of opinions after a plant tour

Month of visit●Oguchi Seiki

Mr.Kazuhiko Kozuka, Spark Plug Div. Komaki Production Dept.

Environmental training and education

Internal network

Environment convention

We have opened an electronic BBS site on our intranet to help our
employees share information.
We also exchange opinions on environment preservation activities
actively through electronic cabinets and by internal e-mail.

On June 12, 2002, the second environmental convention was held.
While a number of reports were made by factories to introduce theircases of environmental improvement such as Waste reduction andEnergy saving activities,
distinguished achievements werecommended officially by the president.
At the convention, presentations of employees' personal efforts towards
environmental preservation were given.
In conjunction with the convention, an
eco-poster competition was held. All
employees of the Nttoku group ofcompanies and their families were
eligible for entry into the eco-poster
competition.

Measures to encourage theacquisition of generally
accepted qualifications
To ensure continual improvement of environment preservation activities,
along the company s environment policy, we develop, train and nurture
dedicated staff such as a pollution control manager, according to theneeds identified for each operation site.

Head Office Komaki MiyanojoIse9（2） 19（2） 5（2） 1（0）Water
11（0） 32（4） 12（2） 1（0）Pollution control manager
Noise16（2） 14（2） 10（2） 0 （0）Vibration
9 （2） 13（2） 4 （2） 1 （0）Work environment measurement engineer 6（0） 7（0） 0（0） 3（0）Environmental measurement engineer0（0） 1（0） 0（0） 1（0）Heat
4（0） 5（1） 3（1） 0（0）Energy manager
Electricity
6（1） 2（1） 4（1） 2（1）Specially controlled industrial waste manager 9（1） 7（1） 5（1） 3（1）Air

Others

Total

2
5
4
3
0
0
1
0
3

36（6）
61（6）
44（6）
30（6）
16（0）
2（0）
13（2）
14（4）
27（4）

※The figures in parentheses indicate the number required under laws.
※The numbers shown are based on the count of the holders of each qualification.

Nittoku environment
news letter
As part of our environment training and education effort directed toindividual employees, weissue Nittoku EnvironmentNewsperiodically toprovide information on our
ISO14001-based activities,
environment preservation
activities
andvarious
events.

Nittoku

We have pages dedicated to the environment in our monthly employee
magazine, Nittoku. The magazine deals with environment-related
events and topics both in Japan and overseas, impacts of environment,
related regulation on our company s activities, etc. to help enhance our,
employees environmental consciousness.

Environment card
We distribute an environment card to every employee of the Nittoku
group so that everyone can understand the purport of our environment
policy and the priorities of our environmental effort and observe themconsciously.
The environment card isdesigned to enhance an,
employee s commitment toenvironment preservation by
putting down on it the purpose
andobjectives
ofthe,organization s effort and thethemes of his/her own effort.

Environmental training and education

Employee magazine

Poster drawn by Miss Kaori Ogawa (11),the eldest daughter of Mr. Masahiro Ogawaof Nakatsugawa Ceramic.

Occupational safety and hygiene

Safety and hygiene
management organization

Basic policies○The objectives of safety and hygiene management activities are to
manage risks and take preventive measures against industrial
accidents.
○In order to prevent industrial accidents and occupational diseases, allmangers and supervisors including the President shall ensure
uninterrupted operation of the safety and hygiene management
system, and obtain cooperation from all employees, to develop
comfortable and safe workplaces.
○In the meanwhile, all employees shall consider safety and hygiene as
their own issue, comply with basic rules, practice anticipatory safety
and hygiene precautions, and endeavor to maintain and improve theirown health.

［Members］［Committee meeting］
Central safety and hygiene
committee meeting (twice a year)■Central safety and hygiene
committee chairman(Senior executive director)■Vice chairman (heads of factories)■Vice chairman (chairman of labor union)■Vice chairman (director responsible forEnvironment & Safety Management Dept.)■Committee members(representatives of factories)

Factory safety and hygiene
committee meeting (once a month)■Factory safety and hygiene
committee chairman (head of factory)■Vice chairman (chairman of labor
union branch),■Company s medical advisor■Safety manager, Hygiene manager■Engineering hygiene manager■Committee members(representatives of factory divisions)

Expert committee organizedwhen necessary, including■Ad hoc assessment
committee■Traffic safety measurecommittee
Department/section safety andhygiene subcommittee (once a month)■Sub-committee chairman(head of department/section)■Safety manager■Hygiene manager■Committee members(representatives of teams/groups)

Risk assessment
As a preparatory step before the establishment of an industrial safety
and hygiene management system, a risk assessment systemdevelopment committee has been organized in the company jointly by
the company and the labor union to study a risk management system for
identification and assessment of potential risks to prevent accidents andhealth problems.

Office meeting on safety
and hygiene■Trends of the frequency of accidents resulting in absence fromTrend of an index showing work and the index
the frequency andseriousness of accidents
resulting in absencefrom work

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Number of accidents resulting
in absence from work

Index

0.70
0.60

Although the index showing the frequency and seriousness ofaccidents resulting in absence from work of our company has
been lingering around 0.3 for the last five years, its yearlyfluctuations are getting larger. To stabilize yearly fluctuations
and lower the index value itself, we will activate various safety
activities to decrease industrial accidents, setting our goals tothe prevention of accidents during non-routine operations.

3

2

0

0

3

The index showing the frequency and seriousness of accidents
resulting in absence from workof the Japan automobile,
manufacturers association s member companies in FY2002
Car makers (14 companies) 0.18
Body makers (6 companies) 0.29
Parts makers (24 companies) 0.23

0.47

0.50

0.43

0.46

1

5

2

3

NGK SPARK PLUGElectric machinery
manufacturing(our business category)

0.51

0.46
0.38

0.40
0.30

2

0.36

0.34
0.38

0.39
0.23

0.34

0.29

0.30

0.21

0.36

0.20

0.20
0.10

0.00

0.00

1996

1997

0.10

0.00
1993

Occupational safety and hygiene

Mental healthDue to an ever complicating society, there are many people sufferingfrom a mental disorder, or severely stressed.
In FY2001 we opened a mental counseling network center outside,
the company in our effort to take care of our employees mental health.
We provide mental care services through telephone counseling andinterviewing.

1994

1995

1998

1999

2000

2001

2 0 0 2（FY）

Earthquake disasterprevention committee
We have established an earthquake disaster prevention committee sothat we may be prepared for a large-scale earthquake with soundprecautions and risk management system and can protect employees.
We also organized various activities to prevent disaster and minimize
damages including the improvement of buildings and evacuation drills.

Employment and personnel
management system

Development of a family-friendly
and harassment free workplace
Following the legislation of the amended equal opportunity law in 1999,
areas opened to female workers are expanding.
In our company, we are endeavoring to develop a workplace that permits
staff to rear a child or take care of an invalid without giving up his/herwork, by introducing a child rearing/invalid caring leave system. In themeantime, we are also taking measures to eradicate sexual harassment
from our workplaces including activities to enlighten people through our
employee magazine, education to managers, the establishment of aninternal network and contacts for counseling service through the Sexual
harassment Countermeasure Committee as our central organization.
＜Number of employees who took child rearing/invalid caring leave＞(Cumulative total number as of the end of June 2003)●Child rearing leave…232 people ●Invalid caring leave…4people＜Behavioral norm set by the Sexual Harassment Countermeasure
Committee＞(1) Preventive measures: enlightenment of people to prevent harassment
cases (manager training → application to workplaces)(2) Prompt action against a harassment case: if a harassment case occurs,
a prompt action should be taken to investigate the case and enforce
proper instructions to prevent further detrimental development of thecase or the recurrence of a similar case.
(3) Disciplinary action to a serious offender: in case of an offence, thecase should be reported to the Disciplinary Committee withrecommendations of an appropriate penalty.

In view of the possible upward revision of the Koseinenkin annuity,
system s qualifying age, a social need directed to enterprises to increase
employment opportunities for those who are over 60 is growing. Under
these circumstances, we have introduced a re-employment system of exemployees who retired because of the retirement age since April 2001 to
utilize knowledge, skills and experience cultivated by our employees intheir careers effectively.

Support to volunteer
activities
It is of benefit to and can be a valuable asset for both company andemployees that our employees are participating in voluntary activities and,cultivate their personality. To support our employees voluntary publicwelfare activity, we introduced a volunteer leave (approximately 10 days ayear) and temporary retirement (an employee is entitled to take leave for aconsecutive period of 2 years and 4 months or a shorter duration once in
his/her employment) system in October 1996.

I have availed myself of this system twice. I took one-year leaveand then returned to my work, and now I think I was lucky to beable to use this system. During my leave, I really enjoyed life,
devoting my whole time to my family, and after I made acomeback, I somehow managed to fulfill my duties at theworkplace while rearing a child at home thanks to support
rendered by my colleagues and family. If I had chosen to resignfrom the company, instead of taking leave under this system, when
I gave birth to my child, I would have longed for opportunities
outside home because I could not have contented myself with life,
confined in home. Of course, I can t have everything in my favor. I
sometimes feel both mentally and physically weary, but my,children s smiling faces are always my relief. I believe that many
women will avail themselves of this system and enjoy a lively life in
the future.

Happy life seminar
Since June 1994 we started to organize a seminar to which employees
who had become 50 years old were invited (together with their spouses)
to learn how they should plan their life after retirement to lead a better,more fulfilled second life through lectures and group discussions
considering three key elements: purpose of life, health and finance.
＜Participants in Happy life seminar(the number of employees excluding spouses)＞●FY2002…104 people●Cumulative total to date…788 people

Employment and personnel management system

Re-employment system of
ex-employees who retired
because of the retirement age

Mrs. Chie Hayashi of R&D Center, who tookchild rearing leave

Data section

Period covered: April 1, 2003 ー March 31, 2003

■Water, air and noise
Operation site

Item

Type

Measurement
unit

Head Office/
Factory

Air

Dust(mg/Nm3)

NOx

(ppm)

Wastewater

Noise

Komaki
Factory

Air
Wastewater

Noise

Miyanojo
Factory

Air

WastewaterSS(mg/L)

BOD(mg/L)

n-Hexane(mg/L)

Cyan(mg/L)

Total chromium(mg/L)

Hexavalentchromium(mg/L)

Zinc(mg/L)

Lead(mg/L)

Nitrogen(mg/L)

Phosphorus(mg/L)

Morning(dB)

Daytime(dB)

Evening

(dB)

Night

(dB)

Dust

(mg/Nm3)

NOx

(ppm)

pH
SS

(mg/L)

BOD(mg/L)

n-Hexane(mg/L)

Cyan(mg/L)

Total chromium(mg/L)

Hexavalentchromium(mg/L)

Copper(mg/L)

Zinc(mg/L)

Lead(mg/L)

Nitrogen(mg/L)

Phosphorus(mg/L)

Morning(dB)

Daytime(dB)

Evening

(dB)

Night

(dB)

Dust

(mg/Nm3)

NOx

(ppm)

Dust ※1(mg/Nm3)

NOx

※1

(ppm)

SOx

※1

(Nm3/h)pH
SS(mg/L)

BOD(mg/L)

n-Hexane(mg/L)

Cyan(mg/L)

Hexavalentchromium(mg/L)

Copper(mg/L)

Zinc(mg/L)

Lead(mg/L)
3

Colons(counts/cm )Morning(dB)

Daytime(dB)

Evening

(dB)

Night

(dB)

Air

Dust

(mg/Nm3)

Wastewater

pH

Noise

Ise
Factory

pH

Noise

SS

(mg/L)

BOD(mg/L)

Nitrogen(mg/L)

Phosphorus(mg/L)

Colons(counts/cm3)

Morning(dB)

Daytime(dB)

Evening

(dB)

Night

(dB)

Statutory
regulation value

150
180
5.0〜9.0
600
600
30
1
2
0.5
5
0.1
240
32
70
70
70
65
200
200
6.0〜8.0
30
25
5
0.5
1
0.2
1
3
0.1
120
16
65
70
65
60
300
180
100
950
3.9
6.0〜8.0
35
20
5
1
0.5
3
5
0.1
3000
60
65
60
50
300
5.9〜8.6
90
25
120
16
3000
55
60
55
50

Voluntary
regulation value

120
144
5.7〜8.7
480
480
24
0.8
1.6
0.4
4
0.08
192
25.6
68
68
68
64
160
160
6.2〜7.8
24
20
4
0.4
0.8
0.16
0.8
2.4
0.08
30
4
63
68
63
58
240
144
80
855
3.12
6.5〜7.8
28
16
4
0.8
0.4
2.4
2.4
0.08
2400
55
60
55
50
100
6.0〜8.4
45
20
60
8
1000
55
58
55
50

MAX

MIN

Operation site

Item

Type

Measurement
unit

7
15
64.3
90
6.9 7.6
37.2 14034.8 200424
0.1 0.4
0.05 0.11
0.04 0.04
0.77
20.02 0.04
13.7
22
0.52 1.4
58.4 66.6
59.0 66.1
57.4 65.2
56.1 63.1
8.5
46
62.2 120
7.3 7.6
3.67
4.5 7.2<1.0 <1.0<0.1 <0.1<0.04 <0.04<0.04 <0.04
0.02 0.05
0.23
1<0.02 <0.02
929
0.33 0.6
57
61
58
64
56
61
55
58
<7
<7
<65 <657
8
715 850
0.19 0.23
7.5 ※2 7.9
7
14
7.3
14
<2.5 <2.5<0.05 <0.05<0.05 <0.05
0.16 0.27
0.08 0.08<0.01 <0.01
0
0
45.5
53
48.5
51
46.4
50
44.5
50
<5
−
7.4 7.9
2.2 7.1
3.2
12
8.7 15.7
1.5 4.80050.0 51.7
48.6 55.1
44.8 49.0
45.3 48.7

2
22
5.8
5
5.4
0.5
0.1
0.04
0.04
0.09
0.02
1.3
0.05
53.1
53.3
53.2
53.0
2
11
6.9
1
1.4
<1.0
<0.1
<0.04
<0.04
0.01
0.05
<0.02
3.6
0.15
52
51
48
50
<7
<65
6
580
0.14
7.1
4
2
<2.5
<0.05
<0.05
<0.05
0.07
<0.01
0
40
47
40
40
<5
6.9
1
1
4.1
0.2
0
47.5
42.3
41.9
41.5

IijimaCeramic

Air

Dust(mg/Nm3)

NOx

(ppm)

Average■Wastewater from Head Office/Factory is treated pursuant to the Sewage Management Law.

Wastewater

Noise

Nakatsugawa
Ceramic

Air
Wastewater

Noise

Kani
Ceramic

Air

Wastewater

Noise

Nansei
Ceramic

Wastewater

Noise

Ceramic
SensorAir
Wastewater

Noise

pH
SS

(mg/L)

BOD(mg/L)

n-Hexane(mg/L)

Cyan(mg/L)

Total chromium(mg/L)

Hexavalentchromium(mg/L)

Copper(mg/L)

Zinc(mg/L)

Lead(mg/L)

Phosphorus(mg/L)

Colons(counts/cm3)

Morning(dB)

Daytime(dB)

Evening

(dB)

Night

(dB)

Dust

(mg/Nm3)

NOx

(ppm)

pH
SS

(mg/L)

BOD(mg/L)

n-Hexane(mg/L)

Nitrogen(mg/L)

Phosphorus(mg/L)

Colons(counts/cm3)

Morning(dB)

Daytime(dB)

Evening

(dB)

Night

(dB)

Dust

(mg/Nm3)

NOx

(ppm)

SOx

(Nm3/h)pH
SS(mg/L)

BOD(mg/L)

n-Hexane(mg/L)

Morning(dB)

Daytime(dB)

Evening

(dB)

Night

(dB)

pH
SS

(mg/L)

BOD(mg/L)

Lead(mg/L)

Nitrogen(mg/L)

Phosphorus(mg/L)

Colons(counts/cm3)

Morning(dB)

Daytime(dB)

Evening

(dB)

Night

(dB)

Dust

(mg/Nm3)

NOx

ppm)

pH
SS

(mg/L)

BOD(mg/L)

COD(mg/L)

n-Hexane(mg/L)

Nitrogen(mg/L)

Phosphorus(mg/L)

Daytime

(dB)

Night

(dB)

Statutory
regulation value

100
150
5.8〜8.6
50
30
5
0.5
1
0.3
2
3
0.1
16
3000
N.A
N.A
N.A
N.A
200
144
5.8〜8.6
50
15
5
10
3
3000
60
65
60
50
200
230
1.61
5.8〜8.6
200
160
5
50
60
50
45
5.8〜8.6
200
20
0.1
120
16
3000
55
60
55
50
0.1
150
6〜8
18
18
18
2
30
4
70
60

Voluntary
regulation value

MAX

MIN

100
2.6
5
150
101 120
6.0〜8.0
7.2 7.510
2.1
525
2.0 3.4
51
1
0.3 0.01 0.03
1 <0.02 <0.02
0.3 <0.02 <0.02
2 0.043 0.08
3 <0.05 0.12
0.1 0.006 0.006
16 0.75 1.2
3000
2.3
4
65 50.5 50.5
65 50.0 50.0
65 50.8 50.8
55 49.3 49.3
150
9
53
78
130 68.5
6.2〜8.2
7.4 7.735
2.3
913
2.1 3.9
4
0.5 0.5
10
1.8 5.5
2.5 0.03 0.06
1000 39.4 120
58
48
48
63
48
51
58
48
50
50
47
50
200 <6.0 <6.0
230
111 111
1.61 <0.01 <0.01
5.8〜8.6
6.5 6.5
42
200
42
94
160
94
5
3.9 3.9
50 48.5 ※3 52
60 48.8
53
50 49.5 ※3 52
45 ※3 49.8 ※3 53
5.8〜8.6
7.5 7.7
90
6
8
20
10
14
0.1
0
0
100
22
54
16 2.10 5.33
1000
0055 51.4 54.8
60 54.7 58.4
55 47.7 48.9
50 47.3 49.9
0.08
0.002 0.002
120 43.5
78
6〜8
7.1 7.4
14.4
5.3
9
14.4
4.6 5.7
14.4 11.5 ※4 15
1.6
1124 18.824
3.2 0.79 1.4
70 57.1 60.9
60 55.1 59.4

Average

1.4
87
7
1
0.5
<1
<0.01
<0.02
<0.02
<0.005<0.05<0.005
0.2
0
50.5
50.0
50.8
49.3
2
47
7.3
1
0.5
0.5
0.7
0.01
30
47
45
43
43
<6.0
111
<0.01
6.5
42
94
3.9
43
43
47
47
7.3
4
3
0
8.8
0.74
0
46.6
46.5
44.4
44.2
0.001
9
6.8
2
2.4
8.2
1
11
0.41
51.1
51.0

※1…These data are of the #1 diesel engine for a cogeneration system.
※2…We have completed corrective actions by expanding the purification tank.
※3…We are implementing corrective actions such as the replacement of the exhaust fan motor
and the improvement of exhaust outlet diffusers.
※4…We have completed corrective actions by expanding the purification tank.

Data section

■PRTR
Operation site

(Unit : kg)
Ordinance
No.

Head Office/
Factory

Komaki
Factory

1
40
63
68
108
144
211
227
231
299
304
1
30

Miyanojo
Factory

Ise
Factory

IijimaCeramic

Nakatsugawa
Ceramic

Kani Ceramic
Nansei Ceramic
Ceramic Sensor

40
63
64
68
100
108
207
227
230
232
304
309
310
311
314
346
1
68
108
144
231
304
43
64
230
310
311
63
68
108
230
231
232
270
346
63
68
227
230
270
272
346
270
230
253
283
304

Quantity
handledSubstance name

Release quantity
Air

8,029
1,242
14,861
2,791
1,137
3,475
1,085
114,811
38,136
5,727
1,021
5,779

Water-soluble zinc compounds
Ethyl benzene
XyleneChromium and trivalent chromium compounds
Inorganic cyanogen compounds (except complex salt and cyanate)
Dichloropentafluoropropane (alias HCFC-225)
Trichloroethylene
TolueneNickelBenzeneBoron and its compounds
Water-soluble zinc compounds,
Condensation polymer of 4.4 -isopropylidendiphenyl
and 1-chloro-2.3-epoxypropane (alias, bisphenol A epoxy
resin) (only that in the liquid form)

Water

Soil

1,278
14,231
1,354
1,592
2,568
4,670
36,974
8,586
6,733
9,717
5,230
6,510
4,583
6,582
1,342
1,287
25,585
2,464
1,371
6,935
111,632
2,515
1,440
1,174
40,240
2,328
1,948
4,995
1,349
4,918
1,610
2,488
1,516
5,413
2,396
10,305
10,753
119,251
1,777
27,5191,931
10,943
3,078
5,083
7,790
3,151
1,631

XyleneSilver and its water-soluble compounds
Chromium and trivalent chromium compounds
Cobalt and its compounds
Inorganic cyanogen compounds (except complex salt and cyanate)
Water-soluble copper salts (except complex salt)
TolueneLead and its compounds
Nickel compounds
Boron and its compounds
Poly (oxyethylene) nonylphenolether
Formaldehyde
Manganese and its compounds
Methacrylic acid
Molybdenum and its compounds
Water-soluble zinc compounds
Chromium and trivalent chromium compounds
Inorganic cyanogen compounds (except complex salt and cyanate)
Dichloropentafluoropropane (alias HCFC-225)
NickelBoron and its compounds
Ethyleneglycol
Silver and its water-soluble compounds
Lead and its compounds
Formaldehyde
Manganese and its compounds
XyleneChromium and trivalent chromium compounds
Inorganic cyanogen compounds
Lead and its compounds
NickelNickel compounds
Di-n-butylphthalates
Molybdenum and its compounds
XyleneChromium and trivalent chromium compounds
TolueneLead and its compounds
Di-n-butylphthalates (DBP)
Bis phthalates (DOP)
Molybdenum and its compounds
Di-n-butylphthalates (DBH)
Zinc oxide
Hydrazine
Hydrogenfluoride and its water-soluble salts
Boron and its compounds

Landfill
disposal

Recycle

1,964
1,242
14,842

19

7

1,099

0

8

8
60

0

66

0

1,128
3,475
1,085
322

114,489

13

5,714
9

1,206

Ethyl benzene

Decomposition
reaction

303
1,712

974
5,424
293
7
1,606
38

1,710

6,207
3
6
447

13
7
518
66
44

4
2
133

3
934
55

0
7,180
297
715
59
38
991
447
526
2,790
242
6,443
4,432
6,559
275
52
4,770
2,413

1,371
6,935
172
2
234
22
3,627

32
1,440
2
16,023
2,094
1,528
1,368

812
1

1,047

2,379
61
1,516
1,634

3,779
625
3,893
2,518
118,612
546
105

1,130
1,183
4,577

1,508
519

6,547

384
18

1,173
51

18
639
871
5,668
1,612
775
388
506
5,114
3,119
23

■Wastes
Unit

ton
ton
ton
ton
ton
ton
ton
ton
ton

Recycled quantity964
10,451
3,067
1,591
1,228
80
10
10
904

Landfill/burning disposal

86
410
41
56
150
258
54
72
63

■Contacts for inquiries
Operation site

Contacts for inquiries (Dept. name/tel)Head Office/Factory

Environment and safety Management Dept.

＋81 52-872-5980

Komaki Factory

Environment and safety Management Dept.

＋81 568-76-1544

Miyanojo Factory

Environment and safety Management Dept.

＋81 996-53-2211

Ise Factory

Environment and safety Management Dept.

＋81 596-39-1534

Iijima Ceramic

General Administration Dept.

＋81 265-86-5211

Nakatsugawa Ceramic

General Administration Dept.

＋81 573-68-5484

Kani Ceramic

General Administration Dept.

＋81 574-63-2511

Nansei Ceramic

General Administration Dept.

＋81 599-65-3366

Ceramic Sensor

General Administration Dept.

＋81 568-76-5400

NGK SPARK
PLUG

Data section

Operation site

Head Office/Factory
Komaki Factory
Miyanojo Factory
Ise Factory
Iijima Ceramic
Nakatsugawa Ceramic
Kani Ceramic
Nansei Ceramic
Ceramic Sensor

Messages from stakeholders
Note: These messages were originally submitted in Japanese and have been translated for this report.

CHUBE RECYCLING(NPO),
Ms. Keiko Nakagawa

Central Japan Industries Association.
Ms. Megumi Yamada

Since your field of operation is
automobile components, which are notfamiliar to ordinary citizens, information
release is important for you all themore. Particularly,
Communication
with local communities as covered inthis report will become a very important
issue in the future to put our efforts
together for the development of a sustainable society. I was
impressed by the fact that you had achieved zero emission at
three factories already and your strenuous efforts to reduce
wastes generation in the company. I hope this series of reports
will develop and provide a useful tool for your internal
environmental education as well as communication with local
communities.

I was deeply impressed by NGK SPARK,PLUG s effort for environmental,
preservation, particularly its employees
sincere attitude with which they earnestly
thought out how they should break down,
the top management s policies into actual
environment preservation activities for
implementation by departments andindividual employees. We can also perceive it from this report. I
believe that such activities will develop from an enterprise level to aregional level and then become a global environment preservation
movement someday. Your Eco Report is a guidebook for industries,
and I believe it will undoubtedly increase your followers to participate
in the activities in the future.

TUVRheinland Japan Ltd., Mr. Manabu Honda

Employee, Technical Ceramics Group,
Mr. Tomoaki Shindo,This year s edition of your Eco Reportcovers diversified topics with somedetailed explanations and data on key
issues, showing the remarkableprogress you have made. Your
ISO14001-based management systemcovering a number of sites in acentralized manner, is operated steadily
under the excellent guidance of the Central Environment
Committee. The fundamental ideas of environmental
management formulated by the Head Office are effectively
conveyed to all relevant sites including your affiliates.
I am looking forward to seeing you rising to the further challengeof controlling greenhouse gases, which are expected to increase
their importance in the future.

This report helps us renew our,recognition that various departments
environmental efforts, when put together,have led to the achievement of zero
emission and other significant results
such as energy conservation achieved by
the Nittoku group as a whole as well as
our knowledge on various company-wide
efforts being paid for environment preservation. Activities to reduce
environmental load is a project requiring incessant effort to preserve
and leave the environment as better as we can for our future
generations. It is like a never-ending voyage, if I am to compare it to.
Then an Eco Report is the log of our activities and should play therole of a compass to show our present position and the direction tohead for. I am looking forward to seeing more reports in the future.

,■Results of rating of Eco Report 2002 (previous year s edition)

Messages from stakeholders

Results of rating in the sixth Green Reporting Award Contest organized jointly by Toyo Keizai Inc. and theGreen Reporting Forum are shown below. Due to the availability of examination results before the editingtime limit of this issue, we were not able to reflect all of these examination results to this issue of our Eco
Report, but we intend to make further improvements with the next edition.

2001

2002

,

Average ofapplicants ※The company s environmental principles concerning environment-related information disclosure and（a）environment
preservation activity are clearly defined.

3.10

3.38

3.37

environment report has a systematic composition with the relations between items and their priority（b） Theorder made clear.

3.20

3.17

3.54

The environment report shows environment-related performance of the company comprehensively and

3.00

3.20

3.32

（d）performance.

2.30

3.31

3.18

（e）The company is paying efforts to ensure the reliability of information and establish good communication.

2.40

2.58

3.04

The environment report includes the company,s own evaluation and explanation of its environment-related※Average of 281 reports sent in for examination

Average of applicants（2002）ECO REPORT 2001
ECO REPORT 2002

4
3

■Rated items and marks（c） clearly in the context of its operations.

（a）
5

（e）

（b）

2
1

（d）

（c）

Closing remarks
Since enterprises have increasingly greater influence on society with the advancement of globalization, informationarmaments and technological innovation, people now hold various expectations in them also in the field of performance ofvarious social roles besides the conventional economic roles.
Particularly, with respect to actions against environmental problems, enterprises are required to comply with statutory
regulation in controlling environmental load generated from their business activities, etc., honor corporate ethics, promote
information disclosure and fulfill their social responsibility in many areas under a tacit understanding that they are tocontribute to society and local communities.
This is the 30th year since our company first established a dedicated organizational unit for environment management. Our,
environment preservation effort has continued incessant development, changing its form of activity from factories
antipollution control to global environment preservation, and now we are expanding the scope of our activities based oncontinual improvement for environment preservation to include the entire group companies through our effort to integratethem in our single registration under ISO14001, which helps us clarify and organize our environment preservation activities asa system. While our single registration certificate is expected to cover all of our domestic group companies in FY2003, we feelthat our group is gaining a solid, integral organization through sharing of information, centralized control and synergism
appearing in our environment preservation efforts from such management practice.
We recognize that we are required to promote environment preservation also in our product development, accepting the needto reconcile manufacture with the environment as a prerequisite, and to achieve this, we need to pay steady efforts at all
relevant sections and improve our development and engineering ability. It is also important to put forth our efforts and realize
efficient logistic systems and resource circulations.
Further, we will provide various types of information including that on environmental load caused by our corporate activities
through Eco Reports, plant tours and other opportunities to respond to and obtain useful feedback from our stakeholders. Of
course, we think it is the most important thing for both company and employees that every employee works healthily andsafely in our company.
This report has been compiled to serve as a sustainability report. The topics from our FY2002 activities include the single
registration of the group, total disuse of chlorinated organic solvents and the achievement of zero emission. These are a proof
that PDCA cycles based on the aforementioned environment management system have taken root in our organization.
,
We intend to promote various environmental efforts further to build a recycling-oriented society while ensuring our company ssustainable development. In the meantime, we will include among our objectives the continuing performance of our social role
as a priority issue of our company.

Genjiro Hashimoto
Chief environment administrator

Request for cooperation to a questionnaire
Thank you for reading our Eco Report 2003. In order to improve future reports, we would like to
ask your cooperation to the enclosed questionnaire.

Please kindly send your completed questionnaire sheet to:14-18, Takatsuji-cho, Mizuho-ku, Nagoya, Aichi Pref. 467-8525
ht t p : / / w w w . n gk n t k . c o . j p
Publishing Department
Public Relations Sec., General Administration Dept.

TEL ＋81 52-872-5896

FAX ＋81 52-872-5999

Contact for inquiries
Environment & Safety Management Dept. TEL ＋81 52-872-5980
e- ma i l e c o@ m g . n gk n t k . c o . j p

FAX ＋81 52-872-5942

For the protection of forest resources, we used recycled paper made of 100% used paper.
Considering the global environment, we used soy ink in printing this Eco Report.