NGK Spark Plug Group

14-18 Takatsuji-cho, Mizuho-ku, Nagoya, 467-8525, Japan
http://www.ngkntk.co.jp■Inquiries about this report :Environment & Safety Management Department
TEL +81 52-872-5980 FAX +81 52-872-5942
e-mail:eco@mg.ngkntk.co.jp【During the preparation of this report】
The purchase of the materials (paper, ink, etc.) comprising this report, and also editing and printing related to thisreport, were carried out by an ISO14001-certified company. Also, the materials (paper, ink, etc.) used do not containcadmium, lead, hexavalent chromium, mercury, polybromide phenyl (PBB), or polybromide diphenyl ether (PBDE).

We promote green purchasing for printing services.

Plate making : A CTP (Computer To Plate) method was used. As a result, film and also developing fluid and fixing fluid
accompanying the manufacture of the film were rendered unnecessary, thus reducing the consumption of
resources and also waste.
Ink : Ink that does not contain VOC (volatile organic compound) was used to minimize the generation of VOC.
This ink also conforms to the “voluntary regulations (NL regulations) concerning ink”, which are voluntary
regulations of the printing ink industry joint association.
Paper : We used paper approced by FSC (Forest Stewardship Counsel). This contributes to the conservation of theworld's ongoing forestation.
Printing : We incorporated a printing method that does not use dampening solutions. No volatile organic compounds(isopropylalcohol) were used.

Corporate Profile
Corporate name

NGK Spark Plug Co., Ltd.

Head Office

14-18 Takatsuji-cho, Mizuho-ku, Nagoya

Foundation

October 26, 1936

Capital47,869,270,000 yen

Business(1) Manufacturing and selling spark plugs andrelated products for internal-combustion engines.

Results of questionnaire concerning Environmental and Social Report 2007
Thank you for sending us all your answers to the questionnaire in “Environmental and Social Report 2007” published in fiscal
2007. We take your opinions seriously and are working to implement even more thorough information disclosure.
Before reading our Environmental and Social Report 2007,

How easy did you find our Environmental andQ1 how much did you know about NGK Spark Plug Group's

Q2 Social Report 2007 to understand?

environmental policy or activities?

Difficult(2) Manufacturing and selling new ceramics andapplicable products.
Group companies

Nothing

4%

Business Areas

A lot
A little

58%

38%

Easy

81%

check the box or boxes that best describe yourQ4 Pleasesituation and position.

Q3 What did you find particularly interesting?

    

0%

19%

37 subsidiaries (11 in Japan, 26 overseas),
7 affiliates

Reasonably easy

(Top three)●Ceramic IC packages●Organic IC packages●Packages for communication devices●Antenna Switch Module●Others

17%

3%
3%

・Environmental Declaration, Environmental Principles,
Environmental Action Plan

Consumer

・Environmental load from business activites

17%

・Factory/Office             ●Spark plugs for automobile and motorcycle●Spark plugs for marine engines and farm equipments●Glow plugs for diesel engines●Igniter plugs for aircraft●Igniter plugs for rocket●Resister cable, resister cover●Others

Research/Education related

・I became interested in global warming measures.
(Response) We will continue to take steady steps to this end.

No, this was my first time

29%

・I would like to see measures your clients are taking.
(Response) We increased the information about our clients.
Please see pages 9 and 28.

Yes, occasionally・I would like to see more use of natural energy and tree planting activities.
(Response) We included information about our clean energy
solar panel information on page 20.

Yes, every year

39%

 
       Working in environmental affairs

you have any other comments or requests regarding ourQ6 Ifenvironmental
activities, please write them here.

Q5 Have you read any of our previously issued reports?

 
  60%

NGK Spark Plug Group
employee or family member     ●Dielectric filters●Dielectric resonators●Electronic igniter●Ultrasonic transducers●Others

Business associate

32%

Request to answer
the questionnaire

Thank you for reading through our Environmental and Social Report 2008.
For the further improvement of this report, we kindly ask you to fill in the questionnaire.

FA X : + 8 1 5 2 - 8 7 2 - 5 9 4 2
e-mail : eco@mg.ngkntk.co.jp
Personal information
protection policy

We will only use your personal information to delivery next year's report to you. Even when we publish the results ofthis questionnaire, we will not show it in a form in which the respondents can be identified.

You can view the following reports on our home page.

  
●Ceramic inserts●Cermet inserts●Coated chips●Micro grain carbide chips●Others
    
    

●Exhaust gas oxygen sensors●Universal A/F heated exhaust gas oxygen sensors●Knock sensors●Temperature sensors●Others  

●Ceramic tube for VCB●Parts for semiconductor
manufacturing equipments●Ceramic heaters●Silicon rectifier containers●Ozonizer●Bio ceramics●Oxygen concentrator●Others

1

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

・Environmetal & Social Report 2008 and the 2000 to 2007 editions
・Each regional Site Report 2008 and the 2006 and 2007 editions (Japanesse only)

ECOreport2000

ECOreport2001

ECOreport2002

Environmental & Social Report 2006

Environmental & Social Report 2007

Environmental & Social Report 2008

ECOreport2003

ECOreport2004

ECOreport2005      ●Ceramic-based parts for engines●QGS/QHS●Others

Site Report(Miyanojo Factory)

Site Report(Nittoku Seisakusho)

http://www.ngkntk.co.jp/english/
environment/
Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report42Index◇Corporate profile

01◇Editorial Policy

02◇Seeking a sustainable society

03◇Corporate philosophy

04

Corporate code of conduct

Editorial Policy[Reference] “Environmental Reporting guidelines (2007 version)” issued
by the Ministry of the Environment of Japan

Reporting Scope

Period covered

All stakeholders including customers,
investors, shareholders, residents ofneighboring communities, businessassociates and employees.
From April 1, 2007 to March 31, 2008

* Some* Some other very recent activities and cases arealso included.

Reporting scope

Environmental aspects : NGK Spark Plug Group
Social aspects : NGK Spark Plug Co., Ltd.

NGK Spark Plug GroupFor the purpose of this report, “NGK Spark Plug Group”
represents NGK Spark Plug Co., Ltd. (excluding theoffices, sales offices, and sales branch offices) as wellas the 11 consolidated domestic subsidiaries.
NGK Spark Plug Co., Ltd.

05

2 Consumers and clients

07

3 Fair dealing09

4 Communication

10

Financial Data

This ninth report has been prepared based on our corporate
code of conduct with the aim of clearly describing theconcepts, mechanisms, and results of all our activities.

Intended readers

1 Compliance

Affiliates

Head Office andHead Office Factory

Nittoku Alfa Service Co.,Ltd

IijimaCeramic Co., Ltd.

Kamioka
Ceramic Co., Ltd.

Komaki Factory

Nittoku Unyu Ceramic Sensor
Co.,Ltd
Co.,Ltd

Nakatsugawa
Ceramic Co., Ltd.

Nittoku Seisakusho Co., Ltd.
(Excluding the Satsuma Factory)

Miyanojo
Factory

Kani
Ceramic Co., Ltd.

Nichiwa Kiki
Co., Ltd.

Ise Factory

Nansei
Ceramic Co., Ltd.

Tono
Ceramic Co., Ltd.

: Region (joint acquisition of ISO14001)
Factories and companies in blue :① Affiliates issuing site reports② These subsidiaries are included in the consolidated
environmental accounting.
* Details of environmental preservation activities are set out ineach site report.
Please contact the relevant inquiry desk on p.31.

5 Environmental conservation

Environmental declaration, environmental policy,
environmental action plan
11
Environmental load from business activities

13

Management

15

Factory/Office

19

Products

24

Communication

29

Mind

30

Data

31

6 Social contribution

33

7 Employees

35

8 Civil society

39

9 Cultural respect

39

10 Ethics

40◇Messages from stakeholder

41◇Third party examination

41[Publishing Director][Editor in Chief][Published]

Norio Kato,
Chief Environment Administrator
Yoshihide Kami,
General Manager of the Environment& Safety Management Department
August 2008

[Next Publication Schedule] August 2009
Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report2Since our establishment in 1936, we at the NGK Spark Plug Group
have continued supplying the world with ceramics and supporting
products based on our “good product principle” and “total
involvement” mottos. Today we inherit and carry on that same spirit,
adding a “one step ahead manufacturing” philosophy, putting to work
our talents in each area to promote the world's best production,
supply chain, sales system upkeep and solidness. I believe that thisallows us to adapt with accelerating societal change and, byextension, is connected to the forming of a global sustainable
society.
Probably the biggest environmental topic this year is the start of thefirst commitment period of the Kyoto Protocol. Interest in global
warming around the world has stepped up to a new level with muchdebate focused on the future. As Industries in Japan, we are wellaware of the strong expectations on us to curb emissions ofgreenhouse gasses.
The NGK Spark Plug Group is a ceramics maker and uses lots ofenergy in production. We daily review our production levels and work
to rationalize our processes focusing on the important issue of
reducing the amount of energy that we use to control the amount ofgreenhouse gasses we output. Although our various initiatives
resulted in meeting our fiscal 2007 reduction goals, continued
operation of new factories increased our gross emission volume.
It is also important to reduce the greenhouse gasses created when
our customers use our products. Products such as high performance
spark plugs for automobiles and the various kinds of sensors arecontributing to improvements in fuel consumption and compliancewith environmental regulations. Furthermore the IC packages that
support the high bandwidth and fast transmission speeds of oursociety of highly advanced information technologies are finding wider
application in IT and increasing society's ability to save energy. In an
area that affects our future activities, in 2007 we succeeded in thecreation of a compact high efficiency fuel-cell system. We continue
research and development with the goal that one day this productwill become a household product for all.
I do not need to remind you that the future is ushering in a society
wherein enterprises that do not consider the environment will not beable to continue. Based on our “one step ahead manufacturing”
philosophy, we go beyond preventing global warming, continuing tobelieve that we can be a company that contributes to a sustainable
society.
With this in mind it is my pleasure to introduce the publication of ourEnvironmental and Social Report 2008, which broadly covers ourgroup's activities over the year in fiscal 2007, and I hope to hear yourunreserved thoughts and suggestions on how we can improve.

President, Chief Environment Administrator
NGK Spark Plug Co., Ltd.

This report was compiled inaccordance with our corporate
code of conduct.
3

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social ReportCorporate philosophy

Corporate code of conduct

Aiming to become a proposal-making corporation,
we continue to present new values to the world.

At NGK Spark Plug Co., Ltd., in order to make the corporate philosophy
expressed in our slogan, “With established trust and confidence insideand outside the company, we aim to contribute to the peoples of theworld by creating and putting at their disposal new values for the future”
an everyday reality, we undertake to conduct ourselves in a socially
responsible manner in accordance with the following 10 principles.

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

Management
PolicyWe shall develop and provide socially beneficial and safe goods andservices by making full use of the most suitable technologies and ouraccumulated experience and shall strive to earn the confidence ofour consumers and customers, while taking necessary measures toprotect personal data and customer-related information.

ActionGuideline

1
Commitment

With full use of the most suitable technology and ouraccumulated experience, we continue striving to offer newvalues to the peoples of the world.

Emphasizing communication not only with ourshareholders but also with members of society atlarge, we shall engage in active and fair disclosure ofcorporate information through ongoing corporate
communications.

Communication

Management Policy
We offer a working environment in which each one of us is encouraged tomake full use of his or her personality and capability. With all our power weare dedicated to pursue management based on trust and confidence.

We shall promote fair, transparent, free competitionand sound trade. We shall also ensure that our
relationships and contacts with government agencies
and political bodies are of a sound and proper nature.

Fair dealing

Commitment

Action Guideline

SloganAdopted in November 1996

As a good corporate citizen, we shall actively engage
in philanthropic activities and other activities of benefit
to society.

AuditorBoard ofAuditors

Board
Committee

Managing Directors
Committee

We shall reject all contacts with organizations involvedin activities in violation of the law or accepted
standards of responsible social behavior.

EthicsManagement shall exercise leadership in making the letter and spirit of theCode of Conduct integral to everyday business practice, thoroughly
implementing the Code of Conduct throughout the Company and inculcating
it throughout the Group and its supply chain. To this end, management shallcontinually improve internal systems while striving to cultivate ethics.

Cultural respect

Cutting Tool Division

Fine Ceramics
Division

Sales and Marketing
Headquarters

Electronic
Components Division

Semiconductor
Components Division

Sensor Division

Sales and Marketing
Headquarters

Technical
Ceramics Group

Spark Plug Division

Communication Media
Components Group

Secretarial Office

Corporate Planning
Department
General Administration
Department
Personnel
Department
Accounting and
Finance Department

Purchasing
Department
Information System
Department

Intellectual Property
Department

Quality Assurance
Department

Environment and
Safety Management
Department
Administration
Department,
Komaki Factory

Production EngineeringGroup

R & D CenterTokyo Office

Automotive
Components GroupWe shall respect the cultures and the customs of local
communities where we do business and strive tomanage our activities throughout the world in such a
way as to promote and contribute to the developmentof local communities.

Civil society

President

Board ofDirectors

Employees

We shall strive to respect the diversity andindividuality of our employees and foster a safe andexcellent working environment where they can realize
their full potential.

Organization

Socialcontribution

With established trust and confidence inside and outside
the corporate, we aim to contribute to the peoples of the world bycreating and putting at their disposal new values for the future.

Recognizing that a positive involvement inenvironmental issues is a priority for all humanity andan essential aspect of our activities and a prerequisite
for our very existence as a company, we shall approachthese issues voluntarily, proactively, and speedily.

Environmental
conservation

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

Revised November 2004
Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

1
2
3
4
5
6
7
8
9
10

Consumers
and clients

3

2

Compliance

We shall respect human rights and observe both thespirit as well as the letter of all laws and regulations
applicable to our activities throughout the world.

CorporateCorporate
philosophy

41Compliance

We shall respect human rights and observe both the spirit as well as the letterof all laws and regulations applicable to our activities throughout the world.
●NGK Spark Plug Group is a global corporation with an export ratio of 80% and production and sales organizations worldwide.
To maintain the trust of international society, we will “respect human rights and abide by all laws and international rules aswell as the spirit of the law, whether in Japan or overseas,” namely the respect of human rights and compliance, as the basisof our actions.
●To earn respect and popularity from the people of the world, each employee of our group will behave in accordance with ourcode of conduct and with social decency.

Overseas Network

NGK Spark Plugs (U.S.A.), Inc.
Headquarters
U.S.A. Technical Center

NGK Spark Plug Middle East FZE
12 people

NGK Spark Plugs(France) S.A.S. 37 people

584 people (includes

factory workers)

NGK Spark Plugs(U.K.) Ltd

Penang Branch Office
NGK Spark Plugs (Thailand) Co., Ltd.

73 people

NGK Spark Plug Europe GmbH
Europe Technical Center

Siam NGK Spark Plug Co., Ltd.
Guangzhou Liaison Office

208 people

8 people

36 people
305 people

Beijing Liaison Office

NTK Technical Ceramics
Polska Sp.zo.o.

NGK Spark Plugs
Canada Limited
NGK Spark Plugs(U.S.A.), Inc.
West Virginia Factory

NTK Technical Ceramics Korea Co., Ltd.
58 people

54 people

Woo Jin Industry Co., Ltd.
191 people

Head Office & Factory
Shanghai Liaison Office
NGK Spark Plug (Shanghai) Co., Ltd.

NGK Spark Plugs(U.S.A.) Holding, Inc.
Bujias NGK de Mexico
S.A. de C.V.
47 people

170 people

Taiwan NGK Spark Plug Co., Ltd.

NGK Spark Plugs(India) Pvt. Ltd.

27 people

NTK Technical Ceramics (Taiwan) Ltd.

28 people

7 people

NGK Spark Plug
Industries
Europe S.A.S.

NGK Spark Plugs
Malaysia Berhad.

62 people

99 people

NTK Technologies, Inc. 61 people
NGK Spark Plugs (U.S.A.), Inc.
Irvine Factory

NGK Spark Plugs Kuala Lumpur Regional Office
SA (Pty) Ltd.
NGK Spark Plugs
67 people
Singapore Pte Ltd
2 people

P.T. NGK Busi Indonesia
351 people

Bujias NGK del Ecuador Cia. Ltda.

NGK Spark Plug (Australia) Pty. Ltd.
39 people
Ceramica e Velas de Ignicao
NGK do Brasil Ltda.
1,234 people
Brasil Technical Center

Ho Chi Minh Representative Office
Manila Representative Office
NGK Spark Plugs (Philippines), Inc.

■Overseas Network
Head Office & Factory
Liaison Offices
Manufacturing & Sales Organizations
Sales Organizations
Technical Centers
Holding Companies

5

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report･･････QMS (ISO 9001, TS 16949, etc.) certified･･････EMS (ISO 14001) certified･･････OSHMS (OHSAS18001) certified
people････Number of employees
QMS/EMS certification status as of the end of May 2008
Number of employees as of the end of December 2007

NGK CUP

Bujias NGK de Mexico S.A. de C.V.

Miyanojo Factory

Compliance

P.T. NGK Busi Indonesia

Tokyo Sales Office

NGK Spark Plugs SA (Pty) Ltd.

NGK Spark Plugs (U.S.A.), Inc.

Domestic Network

Sapporo Sales OfficeNiigata Sales Branch OfficeTono Cermaic Co., Ltd.
peopleKamioka Ceramic Co., Ltd.
peopleKomaki Factory

peopleNittoku Unyu Co., Ltd.

peopleSendai Sales OfficepeopleCeramic Sensor Co., Ltd.

peopleNansei Ceramic Co., Ltd.

Nakatsugawa Ceramic Co., Ltd.
peopleUtsunomiya Sales Branch Office

Oosaka Sales Office

Iijima Ceramic Co., Ltd.

peopleHiroshima Sales Office
Saitama Sales Branch Office
Tokyo Office / Tokyo Sales Office
Atsugi Sales Branch Office

Fukuoka Sales Office

Shizuoka Sales Branch Office
Ise Factory
Kagoshima-Miyanojo
Factory

Kani Ceramic Co., Ltd.

peoplepeopleTakamatsu
Sales Branch OfficepeopleNittoku Seisakusho Co., Ltd.

peopleHead Office & Factory

Kagoshima Sales
Branch Office

Nichiwa Kiki Co., Ltd.

peoplepeopleNittoku Alfa Service Co.,Ltd.

peopleNagoyaSales Office

Tokai Taima Kogu Co., Ltd.

people■Head Office / Factory
Offices / Sales Offices / Sales Branch Offices
Companies Considered Affiliates･･････QMS (ISO 9001, TS 16949, etc.) certified･･････EMS (ISO 14001) certified･･････OSHMS certified
people････Number of employees
QMS/EMS certification status as of the end of May 2008
Number of employees as of the end of December 2007

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

6

1

2

Consumers and clients

We shall develop and provide socially beneficial and safe goods and services bymaking full use of the most suitable technologies and our accumulated experienceand shall strive to earn the confidence of our consumers and customers, while taking
necessary measures to protect personal data and customer-related information.
●The corporate philosophy (commitment) of NGK Spark Plug Group declares, “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”.
●To put this philosophy into practice, we will develop and manufacture innovative products to satisfy the demands of various
customers and achieve our mission of providing products with the same level of safety and quality from any production site in
the world.
●From this fundamental standpoint, we will provide accurate and appropriate information on our products and services andhandle and protect individual data and customer data related to our business activities in a proper manner.

Quality Management System

Since our establishment in 1936 our basic stance andphilosophy have been maintained coherently to the present
as the “Nittoku quality mind” including the “good productprinciple,” “total involvement,” and “worksite principle.”
The corporate quality policy, which was established in
February 2006, reflects the “Nittoku quality mind,” revolving
around TQM (Total Quality Management) demonstrating
initiative for high quality production.
The following activities implement the core of the TQM activities:
・Top down activities embodying company management
through policy management.
・Workplace activation and human resource development
through small group quality and business improvement
and other activities.
・Business standardization and maintenance management
as well as improvement activities determined at each
workplace by daily management.

To successfully implement these measures we areundertaking accreditation and are working hard to effectively
operate our quality management system in conformance with
the ISO9000 series and ISO/TS16949 standards.

Quality lecture meeting

Quality exhibition

Corporate Quality Policy
We continue to supply Quality Products to the society with emphasis on“Customer First”, “Total Involvement” and “Continuous Improvement”.
●Customer First

Our customers determine the quality of our products and services. In order to provide products and services thatsatisfy our customers, we strive to understand their continuously changing needs from their point of view, andmake proposals exceeding their expectations according to the philosophy of “quality first”.
●Total Involvement

People are fundamental elements of a company and the most important management resource. While respecting theindividuality of employees and enhancing each one's ability, autonomy and creativity, we pool our abilities to solve problems
and overcome the tasks we face fully engaging our individual roles with a shared understanding of the problem space.
●Continuous Improvement

The development of a company requires swift and suitable responses to the changing social environment, market
conditions and customer demands. For this purpose, we are continuously improving the effectiveness andefficiency of all management resources including our organization, system, processes, products and services.

7

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social ReportSmall Group Activities
The employees themselves are the driving force behind the future
growth of the NGK Spark Plug Group. Based on thisunderstanding, the employees increase their knowledge andtechnical abilities through improvement activities. In order to work
together well we engage the following basic stances in our humanresource development:
1) Demonstrate human ability to create unlimited potential
2) Respect humanity to create a lively, friendly workplace3) Contribute to improving and developing the company character

Consumers
and clients

We are developing QC (quality control) small group activities
to continuously improve our handling of workplace issues
with the goal of increased quality and productivity.
Every year we host acentral exhibition toshow off the results if
these daily activities and
we are looking forincreased workplace
teamwork and humanresources development. Central exhibition

Crisis Management
Business activities involve avariety of risks such as
natural disasters, serious
accidents, and economic
downturns. We continuously
strive to prevent these risks,
but at the same time we makepreparations to appropriately
respond in the event that an
unforeseen situation occurs.

Action for a major earthquake

Evacuation drill

The NGK Spark Plug Group has, many factories and offices in
the Tokai region centered on Aichi prefecture. Much of thisregion is designated as an area in which intensified measures
must be taken against an earthquake disaster in the event of a
Tokai earthquake. To this end, we have prepared anearthquake countermeasure manual, and take steps tominimize damage to our business activities. Also, we implementa safety confirmation system in order to quickly obtain a graspof information concerning the safety of our employees.

Protection of Personal Information
Regarding personal information that has been entrusted to
us by our customers, we observe the Personal Information
Protection Law and other related ordinances, and strive toappropriately protect, control and handle information.
We notify our customers of our personal data protection
policy on our website.
http://www.ngkntk.co.jp/english/privacy.html

Disclosure of Product Information
To inform our customers of the products and the latest
technology of the NGK Spark Plug Group, we makepresentations at various exhibitions. In fiscal year 2007 as
well, we received many visitors at these exhibitions and wereable to respond to their questions and requests.
Information concerning our products and technologies isprovided on our website and in our catalogs.

2007 Automotive Engineering Exposition

SEMICON Japan 2007

NGK Spark Plugs Plug Studio
There are many different spark plug part numbers, and thetype and the necessary quantity differ depending upon themodel of the vehicle in which the plug is used. At the PlugStudio, we offer an adaptive search function for spark plugs,
plug cords, and power cables, enabling customers to replace
their own plugs. The Plug Studio also provides information
concerning presentation events and motor sports.

http://www.ngk-sparkplugs.jp/english/index.html

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

8

2

3

Fair dealing

We shall promote fair, transparent, free competition and sound trade.
We shall also ensure that our relationships and contacts with government
agencies and political bodies are of a sound and proper nature.
●We believe that a business environment based on the rules of “fair, transparent and free competition” both in Japan andoverseas is the key for NGK Spark Plug Group and its products to gain the trust of worldwide consumers and customers.
NGK Spark Plug Group will also proactively develop such “fair, transparent and free competition”.
●It is important to establish healthy partnerships with our consistent suppliers who are vital for our business activities, and wewill therefore build mutual trust with a long-term perspective and carry out proper purchasing transactions.
●To achieve optimal procurement worldwide, NGK Spark Plug Group will perform transactions based on fairness,transparency, free competition and rationality on the international stage, too. We will also maintain transparent relations withgovernments and public administrations and avoid actions which may raise doubts of collusion, etc.

Together with Our Suppliers

The procurement of raw materials, parts, and so on, hasvarious risks concerning not only quality but also theobservance of ordinances, environmental measures,information security, and so on. In order to reduce theserisks, it is absolutely essential to have a relationship of trustwith the supplier as a sound partner. At the corporate policy
presentation held in April 2007, we explained our corporate
policy and requested the continuation of our good
relationships.

Corporate policy presentation

ColumnThe Nittoku Suppliers Association is composed of suppliers
who deliver raw materials, equipment, parts, and so on, to
the NGK Spark Plug Group. Hosting various kinds ofpresentations and improvement example exhibitions, its
purpose is to promote efficient management and improve
productivity through the exchange of information between
members. We at the NGK Spark Plug Group would like todevelop, together with our important quality partners, ourclients, to create better quality products. In order toaccomplish this we invite the participation of our clients in ourhighly important and active internal training to give support totheir human resource development.

Session for presenting examples of improvement

SRI (Socially Responsible Investment)

SRI is a method of investment where the companies
invested in are determined based on a comprehensive
evaluation that takes into account not only profitability andgrowth expectation but also social and environmental
aspects such as legal compliance, employment, humanrights, and contribution to society and the community.
The NGK Spark Plug Group is continuing to work to growto new levels with the goal of being a trustworthy company.

9

Nittoku Suppliers Associations

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

In 2008 the FTSE4Good index series continued to list ourcompany. The FTSE group developed and manages theFTSE4Good index series, which evaluates responsible
investments. Companies listed are evaluated against
criteria regarding aspects such as environment, humanrights, supply chain labor standards, prevention ofcorruption, and climate change.

4Communication

Emphasizing communication not only with our shareholders but also withmembers of society at large, we shall engage in active and fair disclosureof corporate information through ongoing corporate communications.
●To enhance our credibility in Japan and overseas, we seek to practice “transparent management” by disclosing informationon our business and financial performance as well as other everyday actions, including environmental activities, via our
website and other media.
●In order to respond to the trust of our stakeholders in the capital market, such as our shareholders and investors, we
endeavor to increase our market value and provide information on our management, including our growth strategy, throughIR activities in a timely and proper way.
●We are aware of our social responsibility not only to our shareholders but to a wide range of other stakeholders such as
customers, suppliers, employees and local residents, and will therefore deepen mutual understanding by strengthening our
PR and communication channels and promoting interactive communication.
Fair dealing

Financial Data

0

0

2007

(Fiscal year)

2004

100.93

0

2003

2004

34,93821,095
25,104

2005

28,14834,072

44,17453,855

36,106
43,1302006

2007(Fiscal year)

2003

2004

2005

2006

8,000
6,000
4,000

11,59910,407

2003

2007(Fiscal year)

2,000

20
0

5,000

5,882

127.42
154.2410,0005,626

40

10,00012,000

65.66

60

62.98
77.01

80

35.21
49.84

100

94.75
112.82120

2006

15,00014,000

160
140

2005

9,815

180

2004

20,000

Number of employees(people)Net income per share

(yen)

2003

5,106

2006

9,406

2005

4,915

2004

9,284

2003

25,00014,40522,14410,00030,00014,03817,14750,00035,00021,45520,00022,496
27,71140,00012,788
19,163295,240
345,584

306,663
344,891

50,00030,000Net income

40,0004,916

100,000

210,496
241,185

150,000

195,784
228,776

250,000

250,361
284,884

300,000*Number of employees as of March 2008

(million yen)

60,000350,000

200,000

Ordinary income(million yen)

400,000

Consolidated
345,584
34,93822,144100.93
11,599

7,872
11,117

Net sales(million yen)

Non-consolidated
295,240
21,455
14,40565.66
5,882

Communication

Net sales (million yen)
Ordinary income (million yen)
Net income (million yen)
Net income per share (yen)Number of employees (people)*

2005

2006

2007

0

(Fiscal year)

2007(Fiscal year)：Non-consolidated：Consolidated

IR Activities
The NGK Spark Plug Group provides business informationsuch as business content, performance and stock prices toshareholders and investors, and also holds IR events todirectly answer their questions. In fiscal 2007, participated in
the Nagoya Stock Exchange IR Expo, and received
enthusiastic comments and questions from personal investors.
We also periodically hold presentations for analysts andinstitutional investors in Japan, and give explanations tooverseas investors as well.

Nagoya Stock Exchange IR Expo 2007

Institutional investor factory tour

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

10

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4

5

Environmental conservation

Recognizing that a positive involvement in environmental issues is a priority for all
humanity and an essential aspect of our activities and a prerequisite for our very existence
as a company, we shall approach these issues voluntarily, proactively, and speedily.
●To contribute to the battle against global warming and the establishment of a recycling-oriented society, we are committed tomeasures such as energy saving, zero waste discharge, recycling and enhanced chemical control.
●For the simultaneous pursuit of environmental conservation and economic growth, we will strive to reduce environmental
impact and risk in all business activities through the improvement of productivity, enhancement of resource and energy
efficiency, and development and use of alternative substances. We also aim to develop, introduce and disseminate
innovative technologies, products/services and business models that can contribute to solutions for environmental problems.
●We will proactively deal with environmental issues, based on our corporate philosophy (or action guidelines): “Ever onward!
Always mindful of what is the best course, we swiftly put it into action.”

Environmental Declaration (revised April 2004)

NGK Spark Plug Group will strive for harmony withsociety and the global environment while serving thepeople of the world, offering new value based on theprinciple of high quality throughout the entire life cycle ofour environmentally friendly NGK spark plugs and NTK
new ceramic products.
To achieve this, we have formulated an environmental
action plan based on our environmental policy as a way of
accepting our social role and responsibility as a trusted
corporation. With the participation of everyone concerned,
we will pursue the development of a sustainable society
and business operations.

Environmental Action Plan and NGK Spark Plug
Item

Eco Vision 2010
Sharing of environmental policy by related companies
including overseas

Environmental
Management System

Construction of total management system(QMS, EMS, OSHMS)Management

Environmental
operations

Centralization of environmental management data
control
Promotion of CSR management

Environmental Policy (revised April 2004)

Management

Factory/
officeWe will abide by all laws, regulations, protocols andvoluntary standards relating to environmental conservation.
We also aim to increase our environmental efficiency bycontinually trying to enhance our environmental
management system (EMS) and performance.

Environmental
accounting

Integration of environmental accounting andmanagement accounting

Prevention of global
warming

Total greenhouse gas emissions in Japan of 150,000
tons or less * (10% down on 2001)
Efficient use of water resources

Factory/
OfficeEPR (extended producer responsibility) operations
Effective use ofresources

We will remain constantly aware of the need forenvironmental harmony, working to prevent air,earth and water pollution, use energy andresources more effectively, and reduce wastematerials.

Achievement of zero emissions by related companies including overseas
Reduction of waste emissions

Reduced environmental load due to waste

Total 36 tons of PRTR released(80% down on 2002)
Hazardous substances
Control of environmental pollutants

Products

Communication

We will work towards the development, design,
procurement, manufacture, sale, distribution anddisposal of environmentally friendly products.

Products

We will promote communication with stakeholders through clear
disclosure of information. We will also contribute not only to local
communities but to the wider society through consideration for
the natural environment as well as participation and support forenvironmental conservation activities.

Mind

11

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

Eco-friendly design and product creation

Green procurement

Green supplier system of identification and registrationof all our business associates

Distribution

Construction of efficient distribution system

Eco-business

Development of eco-business

Disclosure

Communication

We will strive to raise awareness of environmental
conservation through environmental education and publicity
activities as well as the dissemination of these policies
among all our employees. We will also seek theunderstanding and cooperation of our business associates.

Eco-design

Mind

Disclosure of clear environmental data
Continuous issue of CSR reports

Community

Support for and participation in NGO and NPO activities

Natural environment

Promotion of nature conservation and social contribution

Education andinstruction

Thorough education of eco-minded employees
Reflection of environmental performance in business evaluation*Energy source carbon dioxide (offices and factories)

Philosophy of Reduction TargetsSparkOur target reduction values for CO2, water, and emissions are
set based on our experience implementing energy saving
measures, recommendations and so on since 2006.
We have used emission volume as the base unit for CO2 andemissions, and usage volume as the base unit for water withthe goal of curbing overall volumes. In promoting reduction of
total volume, we faced a problem that it became difficult tounderstand the effect of efforts to reduce energy andresources used because the changing production volume andother factors greatly affect the goals with the base units ofemission and usage volume that we had been using. To
address this issue we now express our goals as “reduction
volumes” that accumulate reduction effects of each individual
measure, allowing us to manage progress and evaluate theappropriateness and efficacy of various activities. By
managing reduction volume through reduction goals andpromotion activities we seek to reduce overall volume andimprove the base units of measurement.

Group Eco Vision 2010○：Achieved ×：Not achieved △：Ongoing

Fiscal 2007 target

Results

Page

Support ISO14001 certification of overseas manufacturing and sales organizations○

15

Develop NGK Spark Plugs' global environmental declarationand environmental policies○

15

Fiscal 2008 target
Support ISO14001 certification of all overseas manufacturing and sales organizations

―

―

―

―

Examine EMS management categorized by business department

×

―

―

Investigate the joint sharing of goals with QMS

×

―

―

Offer assistance in the introduction of risk assessment fordomestic affiliates○―

Research combining systems with OSHMSWork to revise and improvement the collection and managerial
methods of environmental data for operating organizations

×―Work to revise and improvement the collection and managerial methods of environmental datafor operating organizations

Start operating a system of collecting environmental datafrom overseas office○―

Collect data from the NGK global network

Establish NGK Spark Plugs' environment related standards○―

Continue to handle environmental accounting procedures and reporting○

17

Continue to handle environmental accounting procedures and reporting―

Research EMS structures in domestic business sites――

Use environmental accounting as an evaluation item for our methods

Develop and implement GHG reduction program○

19

Research the need to secure CO2 credits

Reduction targets : NGK Spark Plug
: 4,110 tons
Affiliated companies : 1,590 tons○

19

Reduction targets : NGK Spark Plug
: 13,866 tons
Affiliated companies : 1,585 tons

Reduction targets : NGK Spark Plug
: 73,000 m3
Affiliated companies : 11,000 m3○

22

Reduction targets : NGK Spark Plug
Affiliated companies

Establish methods for recycling used products△―

Establish methods for recycling used productsContinue to work with data on waste materials and valuables○―

Reduction targets : NGK Spark Plug: 3,490 tons
Affiliated companies : 110 tons○

21

Reduction targets : NGK Spark Plug
Affiliated companies

Examine changes that can be made to processing methods
that ensure a lessening of waste in recycling△―

Examine changes that can be made to processing methods that ensure a lessening ofwaste in recycling: 87,738 m3: 8,093 m3―: 7,330 tons
: 53 tons

Investigate the introduction of electronic manifestos○―

Complete HCFC-225 substitution△

23

Complete HCFC-225 substitution

Reduce VOC released△

23

Reduce VOC released

Carry out uniform control with MSDS△―

Carry out uniform control with MSDS

Revise hazard rankings

○

27

―

―

Strengthen environmental risk (environmental accident) readiness

―

―

―

Offer the addition of LCA methods for product assessment△―

Offer the addition of LCA methods for product assessment

300 companies (expand toward mainly raw material and parts
manufacture)○28

500 companies (expand toward equipment, tool, and auxiliary material manufacturers)

Provide a thorough and efficient distribution system that works with
the Law concerning the rational use of energy for all cargo owners○

20

Transport with waste efficiency

Investigate and analyze environmental duties involved in the
profitable operation of business firms△―

Research the establishment of laws about analyzing ELV materials and other green
procurement related material analysis laws

Continue to release environmental news items and topics on Internet○―

Differentiate web and printed matter with regards to information disclosure

Issue Environmental & Social Report○

29

Issue Environmental & Social Report

Support and participate in NGO and NPO activities

×―Support and participate in NGO and NPO activities

Continue to participate in community environmental events, etc.

○

29

Continue to participate in community environmental events, etc.

Revise environmental education programs

△

30

―

―

―

Environmental
conservation―

Develop and implement an environmental education system for the Group
Create a system for implementing environmental education for all employees―

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5

Environmental conservation

Environmental load from business activities
Material Balance

The first step in performing environmental protection
activities is to know what kind of load one's activities impose
on the environment. The tables below show the amount of
resources and energy used in the business activities of the

NGK Spark Plug Group (input) and the products, waste andso on created as a result of these activates (output).

Input
Water
Tap water : Quantity of service water and industrial water used
Well water : Quantity of underground water used
Recycled water : Quantity of water reused after being purified on the premises
Classification

Non-consolidated

NGK Spark Plug Group

EnergyTap water
Well water

Purchased electric power, Gas, Heavy oil A : Quantity used at offices and factories
Gasoline : Quantity used during testing and transportation
LPG, Diesel oil : Amount used at offices and factories, and during testing and transportation

Recycled water

1,057,240 m3
843,530 m3
1,444,680 m3

1,276,028 m3
962,834 m3
1,595,031 m3

Classification

Non-consolidated

Purchased electricity
Gas
LPG
Heavy oil A
Gasoline
Diesel oil

265.75 GWh
16.97 million m3
4,819 tons
57 kL
747 kL47 kL

NGK Spark Plug Group
396.94 GWh
17.95 million m3
10,610 tons
57 kL
769 kL
130 kL

Main raw materials
Ceramic materials, Metal materials : Purchased quantities
Reused elements : Quantity of reused ceramic material
Classification

Non-consolidated

NGK Spark Plug Group

9,279 tons

15,842 tons
23,523 tons
14,841 tons

Ceramic materials
Metal materials
Reused elements

Paper
Paper : Quantity of copy paper and wrapping paper used (estimated)
Classification
Paper

Non-consolidated

NGK Spark Plug Group

2,751 tons

3,450 tons

Other materials and auxiliary materials
Plastic materials, chemical materials,: Quantity used by each department (estimated)oils, other materials, other gases
Classification

Non-consolidated

NGK Spark Plug Group

Plastic materials

671 tons
11,294 tons
312 tons
1,571 tons
13,951 tons

2,498 tons
14,176 tons
375 tons
1,890 tons
17,827 tons

Chemical materials
Oils
Other materials
Other gases

13

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

Domestic business sites■Input■Output

TypeClassification Domestic business sites

Energy

Paper
Water

Type

423,999 kWh
6,186 m3
59 kg
144 kL
5.7 tons
2,963 m3

Purchased electricity
Gas
LPG
Gasoline
Copy paper
Tap water

Classification Domestic business sites

CO2 from energy
consumption

OfficeTransportation

Waste

Recycled waste
Landfill/incineration

Wastewater

Wastewater

156 tons
334 tons
8.3 tons
3.7 tons
2,963 m3

OutputPRTR law-regulated
substances
CO2 from energy
consumption

A
Atmosphere,
tmosphere, water areaO
Offices,
ffices, factories, testing, transportation

Classification Non-consolidated NGK Spark Plug Group

Emission of CO2 generated by the use ofelectricity, gas, and so on

Atmosphere
Water area

Classification Non-consolidated NGK Spark Plug Group

19.6 tons
0.6 tons

212.6 tons
0.6 tons

1,621 tons
289 tons

Quantity of matter that is consigned to be recycled (including items sold)Buried or incineration
Quantity consigned to be buried or incineration

Offices and factories 145,713 tons 208,927 tons
Testing
Transportation

RecyclingR
ecycling

Environmental
conservation

Quantity of matter released to atmosphere and the water area,
concerning which notification is made in each region

Classification Non-consolidated NGK Spark Plug Group

1,621 tons
559 tons

Recycling
Buried or incineration

25,909 tons
143 tons

28,689 tons
166 tons

Wrapping/packaging materials
P
Plastics,
lastics, Paper, cardboard
Quantity used by each shipping department (estimated)

Wastewater

Classification Non-consolidated NGK Spark Plug Group

Wastewater
Wastewater

Plastics
Paper
Cardboard

Sewage, Quantity of water discharged to the public water area

1,144 tons
1,551 tons
1,144 tons

1,408 tons
1,799 tons
1,555 tons

Classification Non-consolidated NGK Spark Plug Group
Wastewater 1,271,360 m3 1,568,442 m3

・Factors used to calculate CO2

Product shipment
Product
Product
Quantity of shipped products as cargo owner *1
Classification Non-consolidated NGK Spark Plug Group
Product
51,223 tons
*1 The counting method was changed in fiscal 2006.

CO2 conversion factor
0.33 kg-CO2/kWh
2.558 kg-CO2/m3
Gas
3.007 kg-CO2/kg
LPG
Heavy oil A 2.712 kg-CO2/L
Purchased electricity

Japan Auto Parts Industries
Association (2001)

CO2 conversion factor
Gasoline
Diesel oil

2.32 kg-CO2/L
2.62 kg-CO2/L

Ordinance regarding calculation ofemission volume of greenhouse gas
emissions resulting from the businessactivities of designated emitters.

・Not including energy consumption and CO2 emissions due to transportation
outsourcing.
・For some operation sites that have no installations to measure the volume ofwater discharged, the wastewater volume is taken as the combined volume oftap water and well water.

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5

Environmental conservation

Management
Environmental Management System

The NGK Spark Plug Group has constructed an environmental
management system (hereafter called EMS) based on
ISO14001 to promote a common understanding of ourenvironmental protection activities. Acquisition of ISO14001
certification started in 1999 with the Head Office Factory. Thiswas followed by the combined acquisition by four factories and
11 consolidated companies in Japan by January 2004.
Furthermore we are advancing acquisition of ISO14001 in ouroverseas affiliated companies that contribute to our totals as

well, and as of April 2008 fourteen companies have received
certification.
In fiscal 2007, to achieve unified understanding ofenvironmental activities across NGK globally we developed aglobal environmental declaration and environmental policy,
instituting action criteria related to the environment. We
continue working for the promotion of environmental protection
including our overseas operations.

■Acquisition of ISO 14001 certification
Name of factories and companies Timing of certification

Certification organization

Name of factories and companies Timing of certification

NGK Spark PlugCo., Ltd.

'99.8

16

3

Komaki Factory
Miyanojo Factory'00.12'00.1217
18

4

Ise Factory'00.12

19

5
6

Nittoku Alfa Service Co.,Ltd.

'99.8'00.12

7

Ceramic Sensor Co.,Ltd.
Iijima Ceramic Co.,Ltd.
Nakatsugawa Ceramic Co.,Ltd.
Kani Ceramic Co.,Ltd.
Nansei Ceramic Co.,Ltd.

'00.12

Kamioka Ceramic Co.,Ltd.
Nittoku Seisakusho Co.,Ltd.

'04.1
'04.1
'04.1

8
9
10
11
12
13
14
15

Nittoku Unyu Co.,Ltd.

Nichiwa Kiki Co.,Ltd.
Tono Ceramic Co.,Ltd.

'02.12'02.12

TÜV Rheinland Japan Ltd.

'02.12'02.12'04.1

Overseas

Domestic

Head office/factory

1
2

Certification organization

NGK Spark Plug Industries Europe S.A.S.
NGK Spark Plugs (U.S.A.),Inc. WV Factory

'00.5
'00.7
'01.8

TUV Rheinland of North
America, Inc.

'01.12

BSI (British Standard Institute)

20

NGK Spark Plugs (U.S.A.),Inc. IRV Factory
NGK Spark Plugs (U.K.) Ltd.
Ceramica e Velas de Ignicao NGK do Brazil Ltda.

ABS Quality Evaluations

21
22

Siam NGK Spark Plug Co.,Ltd.
NGK Spark Plug Europe GmbH

'01.12'02.1123

Woo Jin Industry Co.,Ltd.
NGK Spark Plugs Malaysia Berhad.
Taiwan NGK Spark Plug Co.,Ltd.

'05.4
'06.3
'06.4

27
28

NTK Technical Ceramics Korea Co.,Ltd.
NGK Spark Plug (Shanghai) Co.,Ltd.
P.T. NGK Busi Indonesia

'06.4
'07.4

29
30

NTK Technical Ceramics Polska Sp.z o.o.
NGK Spark Plugs SA (Pty) Ltd.

24
25
26

AFAQ

'04.11'07.10'08.1'08.4

RWTÜV Thailand Ltd.
TÜV Industrie Service GmbHkfq (Korean Foundation for Quality)
SIRIM QASSGS
ISC(International Standard Certification)
SGS
Bureau Veritas Certification
DEKRA Certification GmbH
Bureau Veritas Certification

System Operation
The NGK Spark Plug Group is constructing an EMS that
forms a foundation for total participation throughout thegroup and in each location.
We are continuously improving in connection with theestablishment of a central environmental committee, which isheaded by the person responsible for environmental
unification, and local environmental committees, as well asverifying the conditions and issues with progress towards theachievement of our targets and goals. In our annual internal
environmental auditing we ensure the operation andregulation of our system and our conformance with our selfimposed criteria.
In this way we are looking for ongoing improvement throughthe PDCA (Plan-Do-Check-Action) cycle in our Group and ineach region.

ActionNGK Spark Plug Group

Review by the chief executives
Central Environment Committee

Check
Environmental
audit

Plan
Environmental policy
Corporate environmental
objectives and targets

ActionDo

In-house environment
audit

President
Chief Environment
Administrator

Central Environment Committee

Central Energy Conservation Expert Committee(Chairman of Central Environment Committee)
Central Waste Sub-committee

Environment Administrator
Chemical Materials Sub-committee

Continual
improvement

Regional Environment
Committee

Check■Environmental Activity Promotion Organization

Continual
improvement

Do

Plan

Regional environmental
objectives and targets
Regional environmental plan

Execution andoperation
Each Region

Environmental
ISO Secretariat

Internal
Environment
AuditorGreen Procurement Sub-committee
Environment Committee

Energy Conservation Expert Committee
Waste Sub-committee

Each Region

For the definition of each region, refer to p.2.

■Number of ISO14001 auditors
ISO14001 assistant examiners
ISO14001 Internal auditors

15(people)NGK Spark Plug Co., Ltd.

Affiliates

5
388

1
193

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

Central Environment Committee

ISO External AuditingEnvironmental Risk
Business activities have a certain amount of risk within them.
The NGK Spark Plug Group is working towards specific andappropriate management of environmental risk, with the goal of
preventing environmental pollution. We have entered into pollution
prevention agreements with local governments for atmospheric andwater pollution and have established self-imposed criteria aboveand beyond the requirements of legal regulation. Furthermore, we
are working proactively to prevent the occurrence of accidents or
emergencies that could lead to environmental damage.

Asbestos response

Soil survey
We implement soil surveys based on our procedures when
disposing of regulated equipment or when changing the soilon the factory premises.
In fiscal 2007 we purchased land in the industrial park in Kani,
Gifu, but before possessing the land we ensured the soil had
no damage or abnormalities. We will continue to strive forproper management of the soil and prevention of pollution.

PCB control

We are aware of the high risk posed by the problem ofasbestos and its dangerous effects to the health of people incontact with it. We took appropriate disposal measures toprevent damage due to asbestos, completing removal ofasbestos from our production facilities and making progress
towards appropriate disposal in buildings where asbestos
was employed as a fire retardant.

The Head Office Factory, Komaki Factoryand Nittoku Seisakusho, store wastematerials containing PCBs. We carry out
stringent control of such materials basedon the Law concerning Special Measuresfor Promotion of Proper Treatment of
PCB Wastes until the day that they canbe properly disposed of.
*PCB : Poly Chlorinated Biphenyls
PCB storage

Drills for emergency situations

Chemical leak prevention
At our company we have coating and other processes thatuse highly dangerous toxic chemicals. The storage tanks andpipes for these chemicals and used waste fluids are installed
underground; there is risk of soil pollution because ofchemical leakage should they be damaged due to aging or
an earthquake. To reduce this risk we are layering thestorage tanks and moving this equipment above the ground.

Environmental
conservation

We regularly implement drills toprevent environmental damage
beyond the company making
ourselves ready for any
emergency situations, whether
caused by natural disaster orhuman error.
Drills for emergency situations

Compliance
It is absolutely essential to observe the environmental laws
and regulations in order to maintain business activities.
We verify our compliance with legal regulations and so on
based on our model of the ISO14001 system and daily work
proactively to prevent the occurrence of legal violations orcomplaints. In fiscal 2007 there were two cases of legal
violation and two cases of complaint. In these cases we havetaken steps to prevent reoccurrence.

■NGK Spark Plug Co., Ltd.

■Affiliates(cases)

2005

2006

2007

Violations

1

0

0

Complaints

0

0

2

(cases)

2005

2006

2007

Violations

1

3

2

Complaints

0

1

0

Measures taken for complaints in fiscal 2007

Measures taken for violations in fiscal 2007

① There was a request to improve bad smells originating from themain office and factory. This was caused by gas escaping fromdeteriorated pipe connections. We implemented measures
including changing to connection methods that will not degrade.
② There was a request to improve the noise generated at the
Komaki factory. The noise was originating from nitrogen tanks.
We implemented measures to prevent reoccurrence including
installing a silencer to reduce noise.

① Kani Ceramic Co., Ltd. was producing noise beyond regulated
levels. By installing sound prevention walls and other measuresthe external noise was controlled and brought to within
regulated range.
② Ceramic Sensor Co., Ltd. temporarily exceeded values regulated in
the Water Pollution Prevention Law
with too much fluorine in expelledwater. We aim to prevent areoccurrence by adjusting waterroutes and other changes to thetreatment methods.

Sound prevention wall (Kani Ceramic)

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5

Environmental conservation

Management
Environmental Accounting

In order to more efficiently promote environmental
management, it is important to obtain a quantitative grasp of
the cost and effectiveness of environmental protection. Since
1999, the NGK Spark Plug has been carrying out
environmental accounting, and in 2003 its scope wasincreased to cover the entire Group.

The cost of environmental maintenance for fiscal 2007 was
11,007 million yen on a non-consolidated basis, and 11,631
million yen for the Group. This was an increase of
approximately 11% compared to fiscal 2006. Also, theenvironmental protection effect was 485 million yen on a nonconsolidated basis.

■Environment preservation cost

(Unit : million yen)

Items
Classification

Costs within thebusiness area

Non-consolidated
Investment

Major efforts

NGK Spark Plug Group*

ExpenseInvestment

Expense

2006

2007

2006

2007

2006

2007

2006

2007

Pollution prevention cost

Air/water pollution prevention and noise reduction

121

517

1,136

1,610

148

527

1,352

1,836

Global environmental conservation cost

Global warming prevention, energy conservation

72

17

405

424

195

107

449

484

Resource circulation cost

Effective resource utilization, industrial waste treatment/disposal

47

54

484

552

56

62

685

713

240

588

2,025

2,585

398

697

2,487

3,033

Sub-total
Upstream & downstream cost

Recycling of products, etc., green purchase differences

0

0

2

4

0

0

2

4

Management activity cost

Employee environmental education, EMS construction and operation

10

8

287

293

11

8

354

354

R&D cost

R&D of products promoting environment preservation

1,386

1,473

5,632

5,853

1,386

1,473

5,632

5,853

Social activity cost

Nature protection, afforestation, environmental ads

0

0

165

183

0

0

175

189

Environment damage correction cost

Repair of soil contamination, disrupted nature

0

0

9

19

0

0

9

19

0

0

1

1

0

0

1

1

1,636

2,070

8,122

8,937

1,796

2,178

8,660

9,453

−

Other costs
Total* Excluding Nittoku Alpha Service Co., Ltd. and Nittoku Unyu Co., Ltd.

■Effect of environment conservation measures shown in yen(Unit: million yen)

Area of recognized effectNon-consolidated

Revenue

Revenue generated from the recycling of waste generated inoperations or used products

285

Energy cost saving achieved from energy conservation efforts

148

Cost saving Reduction of water expenses through water saving
Waste disposal cost saving achieved by resource conservation and recycling efforts

13■Calculation concept
The environment preservation cost is classified according to
the guidelines of the Ministry of the Environment, and is
calculated using a proportional division method according torules drawn up by the Group, based on the direct equipment
investments and costs.

40
485

Total

■Environmental conservation effect measurements
Classification
Effect measured in the business area

Non-consolidated
2006

Types of effect2007

NGK Spark Plug Group

Difference from theprevious fiscal year

2006

2007

Difference from theprevious fiscal year

Energy consumption
Purchased electricity(GWh)

238.93265.7526.82

364.06396.9432.88(million m3)

15.37

16.97

1.60

16.26

17.95

1.70

(tons)

4,630

4,809

179

10,208

10,600

392

(kL)

1,302

57

−1,245

1,302

57−1,245

Tap water(m3)

909,393

1,057,240

147,847

1,123,438

1,276,028

152,590

Well water(m3)

906,959

843,530−63,429

1,039,221

962,834−76,387

Gas
Effect measured with

LPG *1

respect to resource input

Heavy oil A

into operations

Quantity of PRTR law-regulated substances handled (tons)

673

650

−22

1,031

975

−56

CO2 emission from energy consumption (tons)

135,604

145,713

10,109195,932

208,927

12,995(tons)

1,307,581

1,444,680

137,099

1,447,466

1,595,031

147,565−922

Effect measured with

Recycled plant wastewater *2

respect to environmental

Waste

load and waste from

Effectively utilized mass

(tons)

26,91225,909−1,00329,681

28,689business activities

Buried, incineration(tons)

129

143

14

157

166

9

PRTR law-regulated substances released into air and water (tons)

14

20

6

215

213

−2

*1
*2

17

Water consumption

The quantity of LPG used in transit is excluded in consideration of the relationship with the environment preservation cost.
Definition of recycled plant wastewater: Recycled water is defined as water that is reused after treatment of waste water.

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

Environmental Management
Eco-efficiency (environmental effectiveness)
Increasing economic value while reducing the environmentalload is connected to ongoing corporate development. NGKSpark Plug Group evaluates the quantity of CO2 emission,
the quantity of waste generated, and so on, as theenvironmental effectiveness, and is promoting environmental
management. In fiscal 2007, not only did the carbon dioxide
emission volume increase as a result of the operation of new
factory but also the amount of added production value
decreased resulting in decreased environmental
effectiveness. As for waste products, the amount output
decreased due to reduction efforts but a greater loss ofadded production value resulted in decreased environmental
effectiveness.

This is an indicator of the ratio of the created economy value
to the environmental load accompanying business activities.
The higher the value the better is the efficiency.

materials and subcontracting (including the cost of parts purchased from affiliates)from net sales.

■Index of output waste (non-consolidated)

80

97

115
97

100

100

122

107

100

123

120

116

120
107

140

101

(Fiscal 2001 = 100)

140

84

81

80

60

2006

2007
(Fiscal year)

60
Added production value

Added production value
Output waste volume

40

20

20

2001

2002

2003

2004

2005

2006

0

2007
(Fiscal year)

2001

2002

2003

2004

2005

Environmental
conservation

CO2 emissions from production

40

0

Environmental load

* The added production value is the amount left over after subtracting the cost of(Fiscal 2001 = 100)100

Added production value

Eco-efficiency ＝116■Index of CO2 from production (non-consolidated)

Eco-efficiency

History of environment conservation
Feb. 1973

Safety and Environment Section (present Environment & Safety
Management Dept.)was established.
Safety and Health Committee and Antipollution Committee were
established.

Mar. 1974

The first environment convention was held.

Sep. 2002

Miyanojo Factory achieved zero emission.

Dec. 2002

Combined ISO14001 certification covering NGK Spark Plug andaffiliates (Iijima Ceramic, Nakatsugawa Ceramic, Kani Ceramic andAntipollution agreement was concluded between Komaki Factoryand Komaki City.

Apr. 1980

Jun. 2001

Nansei Ceramic)

May. 2003

Antipollution agreement was concluded between Miyanojo Factorycompany premises and reported to Nagoya City.

and Miyanojo Town
Energy Conservation Expert Committee was established.

Nov. 1980

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

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.

Apr. 1999

Environment declaration was announced.

Jun. 1999

Reorganization of Antipollution Committee into Environment Committee.

Head Office/Factory and Komaki Factory achieved zero emission.

Sep. 2003

Ise Factory achieved zero emission.

Jan. 2004

Combined ISO14001 certification covering NGK Spark Plug andaffiliates (Kamioka Ceramic, Nittoku Seisakusho, Nichiwa Kiki andTono Ceramic)

Oct. 2004

Nittoku Seisakusho achieved zero emission.

Mar. 2005

Nansei Ceramic achieved zero emission.

Sep. 2005

Nichiwa Kiki achieved zero emission.

Dec. 2005

Received the Minister of Economy, Trade and Industry Prize at

Environmental management system was reviewed and Energy

the19th Chunichi Industrial Technology Awards. (Universal A/F

Conservation Expert Committee was organized.

Aug. 1999

Head Office/Factory obtained ISO14001 certification.

Oct. 1999

Waste Sub-Committee, Green Procurement Sub-committee, andChemical Materials Sub-committee were established.

Sep. 2000
Dec. 2000

Voluntary soil survey and soil improvement was performed on theheated exhaust gas oxygen sensor)

Jan. 2006

Received the Chairman Prize at the ECCJ's 16th Energy
Conservation Grand Prize. (Oxygen concentrator for medical use)

Mar. 2006

Nakatsugawa Ceramic, Kani Ceramic and Kamioka Ceramicachieved
zero emission.

The first edition of ECO report was issued.

Oct. 2006

Iijima Ceramic achieved zero emission.

operation sites (Head Office/Factory, Komaki factory, Miyanojo

Mar. 2007

Tono Ceramic achieved zero emission. (Achieved by all regions.)

factory and Ise factory)

Oct. 2007

Began operating the green supplier system

Combined ISO14001 certification covering all the company's

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

18

5

5

Environmental conservation

Factory/Office
Prevention of Global Warming

Basic philosophy

Tsuneo Ito, Director,
Chairman of the Central
Energy Conservation
Expert Committee

Global warming has become an
important topic in the world today with
the need to reduce greenhouse gas
emissions growing ever more
important.
At NGK Spark Plug Group we also
believe reducing the volume ofgreenhouse gasses we emit isimportant and we have set goals for
total output in our Eco Vision 2010.
In order to meet our goal for 2010 ofGroup total output volume of under

150,000 tons we need to take our internal cooperation to a
new level and strive to our greatest limits to reduce CO2
emissions.
Furthermore, as a global company with production hubsaround the world we also calculate CO2 emissions from ouroverseas production hubs toprevent global warming,
which is, as its namesuggests, a world wideissue, and promote energy
saving measures including
our overseas locations.
Energy savings activities

Results with respect to fiscal 2007 targets
In fiscal 2007 we worked with goals to implement measuresthat reduce CO2 emissions at NGK Spark Plug Co., Ltd. by
4,110 tons and at affiliates by 1,590 tons for a total reductionof 5,700 tons. As a result of energy saving activities we
Fiscal 2007 target

Fiscal 2007 results

NGK Spark Plug Co., Ltd.

4,110 tons

6,001 tons

Affiliates

1,590 tons

1,801 tons

5,700 tons

7,802 tons

Total

implemented reduction measures accounting for 7,802 tons,
clearing our targets. In fiscal 2008 we continue to manage
reduction goals, promoting implementation of energy saving
measures.
■Main countermeasure examples
・Energy savings from use of waste heat in furnaces
・Energy savings from changes to furnace method(increasing number fired at a time)・Energy savings from splitting compressor air supply into two

Total CO2 emissions and Eco Vision 2010
The NGK Spark Plug Group has set goals for the reduction of
total CO 2 emissions in Eco Vision 2010, and carries out
activities aimed at achieving this. In fiscal 2007, due in part toopening a new factory, the amount of total CO2 emissions
increased, also resulting in per-unit increased emissions.
Compared to the Kyoto Protocol base year of 1990, nonconsolidated emissions are increased 108%. We are working
towards the future: changing so we can monitor energy

usage, introduce new technology and so on to take ourenergy savings activities to a new level.
Furthermore, in fiscal 2007 our total CO2 emissions including
domestic and overseas business places was 240,000 tons,
which is an 8% increase over the previous year. As a global
enterprise we aim to promote global warming prevention
measures overseas as well.

■CO2 emission for overseas manufacturers plants in each region*■Transition of CO2 emission (offices and factories)

18
1.5

300

0

0.5

1990

2001

2002

2003

2004

2005

2006

2007

NGK Spark Plug GroupNGK Spark Plug Group (including overseas manufacturers (excluding NGK Spark Plugs (India))

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

2010

0

(Fiscal year)▲
Target value
Basic unit (non-consolidated)

CO2 emissons (1,000 tons of CO2)

150

0.75

0.25

Non-consolidated

19

1

Basic unit (tons of CO2/1 million yen)

195.9
221.1
135.6

179.3

169.2
124.2

117.6

163.9

164.8
114.9

121.4

163.6
118.2

150

238.4

0.992
1.002
208.9

1.051

1.143

145.7

1.204

200

50

1.25

1.144
1.218

70.1

CO2 emissons (1,000 tons of CO2)

250

100

Kerosene
16

1.420

Light oil
14

Heavy oil
12

LPG

10

Natural
gas

8

LNG

6

Electricity

4
2
0

North
South
EuropeAsia
AfricaAmerica
America* Regarding the CO2 emission from purchased electricity, we use eachcountry's GHG protocol coefficient.
Regarding fuel, we use the same coefficients as in Japan. (See P.14.)

Clean energy

Logistics

NGK Spark Plug Group promotes the use of solar panels as
clean energy.
The head office and factory has solar panels installed on theroof of the main building, secondary building and headfactory as well as a solar heated hot water tank on the roof ofthe club building. A large scale solar panel that can produce
up to 107 kW is also
installed on the roof of the
new factory completed in2007 at the Komaki factory.

Solar Panels (Komaki factory)

The volume of cargo (including products and waste) that weshipped in 2007 totaled 49,190,000 ton-kilometers making usa specified consigner as determined in the Act on the
Rational Use of Energy.
To curb the amount of greenhouse gasses expelled as partof our shipping operations the NGK Spark Plug Group has
introduced low pollution
vehicles and reviewed
shipping routes. In 2007 wewere able to reduce thevolume of shipped goods byreviewing packaging. Moving
forwards, we are working tocontinue our energy saving
Nittoku Unyu
activities in logistics.

Case examples
Energy savings from splitting compressor air supply into two

The production of spark plugs includes a process wherein
insulator parts are baked in a furnace. To effectively use theenergy required by the furnace we improved the furnace toreuse waste heat. The heat in the exhaust waste heat iscollected in a heat exchanger. By preheating air used for
combustion we were able to recycle approximately 50% of
the waste heat in the furnace core. This enabled us to gain acarbon dioxide reduction of roughly 42 tons annually.

When establishing the new factory we reviewed the compressed
air supply method to make the energy used in the factory more
efficient. In other factories at the time we used a single
compressed air supply line, which meant that the pressure had tomeet the requirements of high-pressure equipment. This in turn,meant that some equipment was being supplied with too muchpressure, wasting energy. To address this issue we divided thecompressed air supply into two supply lines at the new factory,
one high pressure and one low pressure. This enabled us to gaina carbon dioxide reduction of roughly 300 tons annually.

Before improvement

Gas

After improvement
Burner combustion air
Preheated burner combustion air
Furnace exhaust
Heat exchanger
Heat

Combustion air

Combustion air
Burner combustion air
Furnace exhaust

Gas

Excesspressure

Existing factories

New factory

Compressor
Compressor
Supplied pressure
0.7 MPa

Compressor
Compressor
Supplied pressure Supplied pressure
0.5 MPa
0.7 MPa
Low
pressure

Furnace exhaust

0.5 MPa
BurnerEnvironmental
conservation

Energy savings from use of waste heat in furnaces

0.5 MPa

0.7 MPa

0.7 MPaHigh
pressure

0.5 MPa

0.5MPa

0.7 MPa

0.7 MPa

BurnerRequired pressure of manufacturing equipment

Required pressure of manufacturing equipment

Results of computing greenhouse gases according to the system for computing, reporting on, and publicizing the quantity of greenhouse gases
The volume of our greenhouse gas emissions in fiscal 2007
is as listed in the table below.
All of our factories are Type 1 Designated Energy
Management Factories as defined in Act on the Rational Useof Energy and each year report their energy use volume andenergy source carbon dioxide emission volumes.
Furthermore we ensured that no gasses other than carbon

dioxide at the energy source exceed 3,000 tons calculated as
CO2 in any of the factories, and thus do not fall under thereporting requirements of the Law Concerning the Promotionof the Measures to Cope with Global Warming.
We will continue to calculate our annual greenhouse gas
emissions and strive for appropriate global warming
prevention.

■Greenhouse gas emissions in fiscal 2007

(tons CO2)

Head Office/Factory

Komaki Factory

Miyanojo Factory

Ise Factory

Total

124,740

21,24323,300180,165−−

Energy-based carbon dioxide

CO210,882Non-energy-based carbon dioxide

CO2−MethaneCH4

17

Nitrous oxide

N2O

6

63

6

Hydro-fluorocarbon

HFC

3

220

19

Perfluorocarbon

PFC

Sulfur hexafluoride

SF6
Total

2

−

122

1,863

7

−

2
15
5

−

162
80
242

1,329

3,192

0.1

101

318

5

424

10,908127,111

21,59424,654

184,267* This table uses the coefficients defined in the Law Concerning the Promotion of the Measures to Cope with Global Warming.

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

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5

Environmental conservation

Factory/Office
Waste Material

Basic Philosophy

0

2003

2004

2005

Non-consolidated

27,04028,8552007(Fiscal year)

NGK Spark Plug GroupDefinition of effective use

Definition of zero emission

Effective use is the ability to reuse and recycle thevaluable parts of the waste generated from our factories(including the thermal recycling). This includes wastematerials sold as valuable resources.

We define zero emission as the state in which therecovery rate of waste, including both industrial waste andgeneral waste from our operations, is at least 98%.

Recovery rate ＝(Reused or recycled amount)≧ 98％(Reused, recycled, or buried/incinerated amount)

Results with respect to the fiscal 2007 targets
In fiscal 2007 we aimed to devise measures in order achievea target reduction of 3,490 tons at NGK Spark Plug Co., Ltd.
and a target reduction of 110 tons at our affiliates. By
implementing highly effective measures we were able toreduce 4,197 tons across the whole group, meeting ourgoals.

On-site confirmation of waste material treatment contractor

On-site inspection■Contractors visited
NGK Spark Plug Co., Ltd.

Affiliates

33
77

21
49

Number of waste treatment contractors
Total number of visitors

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

NGK Spark Plug Co., Ltd.
Affiliates
Total

Fiscal 2007 target

Fiscal 2007 results

3,490 tons
110 tons
3,600 tons

4,045 tons
152 tons
4,197 tons

■Case examples of main measures
・Waste reduction due to resin molding design changes
・Internal treatment of waste acids and alkaline materials due tointroduction of waste fluid treatment devices
・Reduction of waste due to lower defect rates

Case example

To ensure that waste material consigned to be treated by aprocessing contractor specified by the Group was being
appropriately treated, we carry out annual on-site checks at
the interim treatment plant and also at the final disposal site.
We not only verified that appropriate treatment was taking
place, but also investigate the amount of residue sent to thelandfill after recycling treatment. As a result we discoveredthat of waste recycled, the residue sent to landfill was lessthan 1% with almost all waste
being recycled.

21

2006

26,052

21,28918,84017,182

16,071

10,00014,42920,00024,07930,00029,837■Trend of quantity of generated waste material
Quantity of generated waste material (tons)

The NGK Spark Plug Group handles waste material in thefollowing priority sequence in order to make maximum
effective use of resources.
① Reduce ② Reuse ③ Recycle ④ Buried and incineration
During fiscal 2006, the Group achieved zero emissions in all
regions. Moving forwards, we will continue to reduce wastematerial and also make efforts to reduce the residue
remaining after waste material has been treated.

Waste reduction due to resin molding design changes
The thermoset plastic plug caps are made with a mold. The
plastic molds require a channel for plastic to enter the mold,however the leftover plastic in this channel is not part of the
product and is treated as recyclable waste. To reduce thiswaste we changed the shape of the mold to reduce thesechannels, realizing a 90% reduction waste.
We also contributed to similar waste reduction at our clientsby applying the same method with our process consignment
partners.

Before improvement

After improvement

Waste portion
33.8 gWaste portion
3.3 gWater Resources
Basic Philosophy

Results with respect to the fiscal 2007 targets

At the NGK Spark Plug Group we believe water is an
important resource and we are taking measures to reduce theamount of tap and well water used in our business activities.

In fiscal 2007, we set a water reduction target of 73,000 m3 for
NGK Spark Plug, and a target of 11,000 m3 for our affiliates, that
is, a total reduction of 84,000 m3. Since the initial plan was drawn
up, many measures were implemented, but the reduction attained
for the whole Group was 92,998 m3, achieving our goals.

2,239

1,901

2,162

1,816

2,062

1,737

1,701

1500

1,932

2000

2,017

2500

1,621

Quantity used (1,000 tons)■Trend of the quantity of tap water and well water used

Fiscal 2007 target

Fiscal 2007 results

73,000 m3
11,000 m3
84,000 m380,408 m3
12,590 m3
92,998 m3

NGK Spark Plug Co., Ltd.
Affiliates
Total

1000

■Case examples of main measures
・Reduced water consumption due to improved method of watersupply on the coating line
・Reduced reserve water consumption due to using filtered effluent water
・ Reduced water volume due to improvements to the air
conditioning water tank resupply equipment

500
0

2003

2004

Non-consolidated

2005

2006

2007

(Fiscal year)

NGK Spark Plug Group

Case example
Reduced water consumption due to improved method of water supply on the coating line

Before improvement

After improvement
When line is operating

Water

Water

When line is paused
Water

S

S

To the line

To the line

To the line

Environmental
conservation

S

When the line
pauses thesolenoid valves
switch the flow to
the lower volume
piping.

S

To reduce the amount of water used in the coating process
in the production of ceramic packages we implemented
improvements to the water supply method. By installing
water conserving pipes and solenoid valves in the water
source pipes, when the production line pauses (for example,
while waiting for products) the water is reduced to half theflow of normal operation reducing annual water usage by
1,400 m3.

Green Purchasing
Use of eco-friendly office supplies
In order to increase the awareness ofenvironmental protection at each
workplace and promote activities thattake into account energy saving, andso on, the Group actively selects
products that are kind to theenvironment when purchasing or
using products related to daily work
activities.
Version 2 of our “Green Procurement
Guidelines (In-house Use),” publishedin March 2004, specifies that eco products should meet all orsome of the following requirements, promoting the purchaseof eco products:① Have less environmental impact during use.
② Have a significant effect on environmental improvement during use.
③ Have less environmental impact during the disposal stage after use.
④ Comply with relevant laws, standards, regulations, etc. interms of quality and safety.
⑤ Be preferably priced the same or lower than similar
products (in consideration of longevity).

To reduce our environmental burden due to logistics andbusiness activities at the NGK Spark Plug Group we arepromoting the transition to vehicles with low environmental
burden when renewing the vehicles owned by the company.

■Number of vehicles owned by the company(No. of cars)

Eco-carNGK Spark Plug Co., Ltd.
Category
Total number of company vehicles
New☆☆☆☆ (75%-decreased level in the exhaust gas standards in 2005)
New☆☆☆
(50%-decreased level in the exhaust gas standards in 2005)(75%-decreased level in the exhaust gas standards in 2000)☆☆☆
(50%-decreased level in the exhaust gas standards in 2000)☆☆
(25%-decreased level in the exhaust gas standards in 2000)☆
(Exempted from exhaust gas regulations)
OthersHead Office/Domestic
Factorybusiness sites

122
34
10
10
9
5
54

98
45
19
20
7
6
1

Affiliates
23
6
3
6
1
0
7

Natural gas vehicle

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

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5

Environmental conservation

Factory/Office
Hazardous Substances

We are striving to reduce the release of PRTR law-regulated
substances to the atmosphere or water by 80% of the figure
for fiscal 2002, by fiscal 2010. We are also setting annual
goals and undertaking activities to reduce volatile organic
compounds (VOC).
Our goal for fiscal 2007 to replace dichloropentaphluoropropane(HCFC-225) completed preparation in March 2008 and from
April every factory completely transitioned. Our goals for
VOC reduction are the same as last year's goals for thewhole group. To reduce quantity released in fiscal 2007 we
implemented a trial introduction of devices that collecttoluene, which has higher release levels. We look to continue
advancing our measures to reduce our use of hazardous
substances.

■Quantity of PRTR law-regulated substances handled
Non-consolidated■INPUT-OUTPUT of PRTR law-regulated substances
Atmosphere: 212,624

Unit : kg

Public water area: 579
Soil: 0Sold parts: 19,061
On-site incineration: 0
Disassociation reaction:
338,163
Buried and incineration: 281
Effective use: 124,671

Public sewer: 15■Quantity of PRTR law-regulated substances released

NGK Spark Plug Group800

Products: 279,470

Quantity handled:974,978

Non-consolidated

NGK Spark Plug Group

25

1,200

250
OthersOthers

600

144

1,031
1,000

132

510
500
124

175

162

48

300

37
47
29

45

51

62

200

150

400

181

177

800

0

2002

781
208

600

400

54
175

Water-soluble copper salts(excluding complex salts)

48

Lead and othercompounds
Xylene

57

75

82

191

190

244

273

259

2002

2006

2007 (Fiscal year)

NickelToluene

74

71

2006

2007 (Fiscal year)

0

2.4
2.0

14.3
0.6
0.4

1.7

4.3

9.1

10

5

200

1.8
0.4

16.6
15

0

215
1

20.1

20

162

66

36
37
55
44
157

100
123

975
177

197

Quantity handled (tons)

Quantity handled (tons)

650

Phthalic acid
Dibutyl phthalate

10.4

2002

9.0

8.8

2006

2007 (Fiscal year)

213
3

Toluene200

Quantity released (tons)

673

Quantity released (tons)

700

179

XyleneDichloropentafluoropropane

150
114

187

182

17
9
2006

9
2007 (Fiscal year)

100

50

0

45
9
10
2002

19

* Substances concerning which notification must be made by each office or factory are indicated above.

ColumnOverseas affiliate environmental conservation activities (NGK Spark Plugs (U.K.) Ltd.)NGK Spark Plugs (U.K.), Ltd. was established in 1975
and is now located in purpose built premises in Hemel
Hempstead, Hertfordshire. In 25 years it has advanced
from a market share of under 6% to one of over 50% andincreasing.
1975 : Established NGK Spark Plugs(U.K.), Ltd.
1996 : ISO9000 accredited2001 : ISO14001 accredited2008 : Honda 'BEST' supplier ranking 36 months
consecutively

Company Name : NGK Spark Plugs (U.K.), Ltd.
Scope of Business : Sales of automotive components, communication
media components and technical ceramics
Address : Maylands Avenue, Hemel Hempstead UK, HP2 4SD
Tel : +44 (0) 1442 281000
Fax : +44 (0) 1442 281001

Fiscal 2007 Material Balance■InputType■Output
Classification

Purchased electricity 190 MWh
87 Therms
Energy Gas
Gasoline
87 kL
Paper Copy paper
1.9 tons
Water Tap water
62 m3

23

Type

Classification

CO2 from energy Office
100 tons
consumption
Copy paper 33 tons
Waste
Buried/incineration 34 tons

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

Environmental Conservation Activities
NGK Spark Plugs (U.K.), Ltd. recycles, office
paper, magazines, plastic bottles, aluminium
cans etc. The aim of the programme is to
reduce waste to landfill.
NGK Spark Plugs (U.K.), Ltd. food waste is
being turned into usefeul renewable energy
rather than unfavourable landfill. The canteen
food waste is taken to a biogas plant where themethane produced is transferred to a generator
and converted into electricity and heat.
A recent addition has been the saving printed
paper for re-printing or using as note pads.

Products
Technology at work behind the scenes
Our foundation of technology and specialist knowledge
related to ceramics gathered over our long history supplies
many kinds of products to our customers. Our products areused in many common items such as automobiles,
computers, cell phones, medical equipment and so on.

These products are composed of many parts so maybe theaverage consumer does not see our work, however our
products and technology contribute behind the scenes to theenvironment and society.

Dielectricresonators

Cutting
tools

Environmental
conservation

Fuel cells(in development)ICpackages

Ceramic
heaters

Spark
plugs

Automotive
oxygen sensors

Glow
plugs

Environmental & Social Report 2008
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5

Environmental conservation

Products
Development of Eco-products

We are aiming to reduce our environmental burden throughthe entire product lifecycle so that our environmental productpolicy : “We will work towards the development, design,
procurement, manufacture, sale, distribution and disposal ofenvironmentally friendly products.”
With regards to product development we are pursuingdevelopment that keeps used resources and energy as low
as possible and that is useful for saving energy andpreventing environmental damage when used in final
products.
Our six divisions send their wide-ranging products throughout
the globe and conduct research and development into next
generation products. In this section we will introduce some of
the ways we consider the environment for representative
products.

Spark Plugs
Spark plugs are mounted in automotive engines as functionalparts that ignite the fuel.
Our iridium plug uses iridium alloy in the electrode, enabling amore precise electrode because of its high strength andmelting point, reducing used noble metals, lengthening
lifetime and improving ignition to improve fuel consumption
and reducing the toxic substances in the exhaust.
Narrowing the spark plug contributing to improved

characteristics including reduced fuel consumption and low
emission engine, as well as reducing required resources andproduct processing energy (in particular, the ceramic baking
process).

■Iridium plug and common plug fuel consumption comparison■Spark plug size and weight comparison

10/15 mode consumption (km/L)

13←Electrode

14

Common plug

16

15.0

Iridium plug

←Electrode15

2%
improvement

14.7

Engine : 1.5L, 4 Cylinder, DOHC
Test mode : 10/15 mode
* Internal evaluation example.
Effects will vary based on engine typeand driving conditions.

12% reduction

37 g

16% reduction

31 g

Weight

42 g

Hexagonal WAF
dimensions

16 mm 14% reduction

14 mm

14 mm

Screw radius

14 mm 14% reduction

12 mm 17% reduction

10 mm

Glow Plugs■Toxic substance levels in exhaust
2.0

Carbon Monoxide

1.5
1.0
0.5
0

Hydrocarbons

300
200

← Heater
part

Metal type glow plug←

100

Ceramic type glow plug

←
0

10

20

30

40

0
60

50

Hydrocarbon concentrations (ppmvol)

CO concentrations (%vol)

Glow plugs are used as preheating devices supporting
combustion in diesel engines. Diesel vehicles have good fuelefficiency and low carbon dioxide emissions and are thus
being considered as a means of preventing global warming.
Normally glow plugs are metal products but we manufacture
high performance ceramic type glow plugs as well. By using
ceramics in the heater part we can rapidly heat it to a hightemperature reducing time to start and reducing the toxic
substances in the gas released immediately after starting.
Also ceramic heaters have a long lifetime; at the present withthe promotion of idling stops, we can support the increased
number of times engines are started and stopped.

Elapsed time from cranking(s)Ceramic type glow plug

Automotive Oxygen Sensors

25

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

Zirconia
exhaust gas
oxygen sensor

Universal A/F
heated exhaustgas oxygen sensor

Universal A/F heatedexhaust gas oxygen sensor :precisionλcontrol
Zirconia exhaust gas oxygen
sensor :λ control

Universal A/F heatedexhaust gas oxygen
sensor : lean burn control

1V

0mA

0V
Fuel rich

Theoretical air-fuel ratio（λ＝1） Fuel lean

The point of greatest reduction of toxic
substances in exhaust gasses

Universal A/F heated exhaust gas oxygen sensor output■Sensor output characteristics
Zirconia exhaust gas oxygen sensor output

Automotive oxygen sensors give off electric signals based on theoxygen concentration in the exhaust. The signals from the sensor areused to appropriately adjust the engine's air-fuel ratio. The sensor thus
fulfills the role of reducing toxic substances in the exhaust.
We have developed zirconia exhaust gas oxygen sensors, which
determine graduated oxygen concentration, as well as universal A/F
heated exhaust gas oxygen sensors that outputs signals comparing
oxygen concentration. In particular the universal A/F heated exhaustgas oxygen sensors have been highly regarded for their effects:
reducing toxic substances in exhaust and improving fuel consumption.
We are also continuing development to contribute better environmental
conservation. For example when starting the engine, reducing thelength of time it takes to operate to rapidly clean the exhaust gasses.

IC Packages

Dielectric Resonators

The IC package is the board in which the heart of thecomputer, the CPU (central processing unit) and its
supporting chipset is installed.
We develop interconnection technology and wiring designs
that join the two together and we are working to develop a
package that puts two die areas (signal parts) in a single
package. Based on this development, we support spacesavings; reducing materials and thus environmental load.
Furthermore, with regards to materials, we are massproducing products that make us of halogen free materials
and lead free solder. We have started to support servers andultra-portable computers in addition to our current line up ofdesktop and laptop products.

Dielectric resonators are used as filters to select and receive
specific radio frequencies in telecommunication basestations for cell phones and so on.
Dielectric resonators are ceramic sintered objects. Until now
they were made by molding and baking, and then polishing
to finish. We succeeded in creating resonators where thefinishing polishing process is unnecessary by finely
controlling the molding process conditions.
Using this approach we can reduce waste and requiredmaterials that would otherwise be shaved off during
polishing. Without a polishing phase, the cleaning phase that
follows also became unnecessary, saving energy andreducing water usage.

Organic IC Package

Cutting Tools

Ceramic Heaters
Ceramic heaters are primarily incorporated into heated toilet
seats to warm fluid in the seat.
The ceramics used in the heaters have high electricalresistance allowing heaters with large electrical capacity.
They also have good heat conduction properties that allow
for instant heating of water. This means that when notneeded they do not require current and contribute to energy
savings. They are also special for their long life because theheating element is embedded in the ceramic and baked
together giving excellent chemical resistance and reducing
occurrence of disconnecting
wires or change over time.

Environmental
conservation

Cutting tools are used in metal cutting processes.
The cutting tools made of ceramics and cermets that we
produce have excellent thermal resistance, removing theneed for coolants and their environmental load and reducing
waste as well as reducing the energy used for coolant. They
are also highly wear resistant and thus have a long usage
lifetime.
The holder accessory wrench is easily separated into metaland plastic parts for easy recycling and is an environmentallyfriendly product.

Cutting tools

Dielectric resonator

Ceramic heaters

WrenchFuel Cells
Fuel cells have gained attention as power generation systems
that are highly efficient and impose a small environmental
burden.
In October 2007 we developed a plate shaped power
generation stack that maintains consistent output at 700
degrees Celsius of greater than 0.73W/cm2, the highest world
standard. By freely applying our unique sensor and electricalcircuit technology to this cell to support a unique control
concept we constructed an extremely compact 1kW class solidoxide fuel cell power system.
Looking to the future we will be active receiving orders with our
primary target market of home and small-scale cogeneration*
as well as communicating with end users while promoting

research to verify the reliability of the power generation systemand continuing to put together mass-production systems.
* Cogeneration：generating electricity and using
the waste heat

View of 1kW class power generation stack

1kW class solid oxide fuelcell power generation system

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

26

5

5

Environmental conservation

Products
Control of Hazardous Substances

Basic Philosophy

Regulations on hazardous substances, as represented by the
ELV directive and the RoHS directive, are becoming stronger
worldwide, and control of chemical substances contained in
products is being demanded. Also, in June 2007, the REACH
regulation were implemented, and as a result it is necessary
to control a wider range of chemical substances. In order to1

Customer

Along with the strengthening of regulations related to chemical
substances contained in products, customers (manufacturers) are placing
increasingly strong demands on products.
The NGK Spark Plug Group meets various demands by for example
submitting certificates stating that our products do not contain substancesthat load the environment, submitting data concerning chemical
substances obtained using a JGPSSI tool or IMDS, filling in the chemical
management surveys, and undergoing an audit by the customer.

2

prevent products from contaminating the environment, wehave constructed and are implementing a control setup
consisting of three stages: (1) meeting the customer's
demands, (2) handling control within the Group, and (3)procurement from suppliers.

* IMDS (International Material Data System) This system is intended tocollect information on materials and the chemical substances thatthey contain, for the approximately 30,000 parts used in an
automobile.
* JGPSSI (Japan Green Procurement Survey Standardization
Initiative) This is a council consisting of volunteer electrical andelectronic equipment manufacturers who are engaged incommunization of chemical substances contained in parts andmaterials.

NGK Spark Plug GroupIn order to appropriately control substances that impose anenvironmental load contained in products manufactured by
the Group or our processes we obtained information
concerning customer requests and legal regulations, andestablished a “hazard rank.” We control the quantities ofsubstances in this hazard rank, and also manage thesituation concerning the substitution and reduction ofprohibited or restricted substances.

In fiscal 2007 regulations related to substances that
impose an environmental load were strengthened and wereviewed the entire hazard ranking.

Information control
Information concerning acquired legal regulations
and customer requests have been arranged into alist in such a way that it can be perused using an
intranet within our shared internal web site.

List of legal regulations

CustomerrequestLegal
regulation

Hazard rank
Hazardous substances are divided into prohibited,
restricted, and controlled substances, depending
upon the degree of danger or toxicity. Also, a
handling criterion is established for each rank.
Hazard rank

27

Handling standard

Information acquisition

Information control

Substances covered
Substances prohibited from use orstrongly restricted by regulations.

Prohibited
substances

Use is prohibited.

Restricted
substances

A substitution program Hazard level and toxicity are equivalent to prohibitedshall be proposed and substances, but an immediate changeover isthe substances switched. impossible due to its special characteristics.

Controlled
substances

Emission into the environment
and transportation upon use
are controlled.

Mainly substances subject to PRTR
Law

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

Hazard rank
(in-house criterion)

Control of used
quantity

Control system

Control of
reduction

3

Supplier

In order to appropriately manage the state of chemical
substances in our products we must have a system ofcooperation with our suppliers to receive the chemical dataof the materials we purchase and to submit declarations of
indicated prohibited substances; we have received
cooperation with these measures for managing substancesthat impose an environmental burden.
In fiscal 2007 we strengthened the cooperation system,
reviewing our green supplier system and revising the green
procurement guidelines. Based on these guidelines we
audited our 298 suppliers of the base materials and parts
related to our products and packaging materials; as ofJune 2008 we verified 203 of these companies as meeting
our criteria, becoming green suppliers.

Certificate of Green Supplier

グリーンサプライヤー
認定証

貴社は、グリーン調達に関する当社システム
基準、マテリアル基準をいずれも満たしており、環境配慮に優れたお取引先様として、グリーン
サプライヤーに認定します。

日本特 殊 陶 業 株 式 会 社
資 材 部・環 境 安 全 部

Green procurement guidelines

Green supplier certificate

Green supplier system
System criteria●Acquisition of third party
certification underenvironmental
management system

Material criteria●Non-inclusion ofsubstances on our
prohibited substances list

Submission of third party
certification survey

Submission of non-inclusion
certificate and data about
six specified substances*OK

OK

Environmental
conservation

The certification criterion for green suppliers is that boththe system criterion and the material criterion be satisfied.
The system criteria include third party environmental
management (ISO14001, EcoAction 21 and so on)
accreditation. To meet the material criteria requires use ofno substances on our prohibited substances list.

Green supplier* Six specified substances : Lead, mercury, hexavalent chrome,
cadmium, polybrominated biphenyl, andpolybrominated diphenyl ether

Supporting our suppliers
We constructed a system for supporting the environmental
activities of our suppliers. In fiscal 2007 we implemented
ISO14001 accreditation support for six companies with two
having received accreditation. We also hosted seminars for
sixteen companies about EcoAction 21 accreditation andSupport completion certificate

for fourteen of those implemented accreditation support.
In fiscal 2008 we will continue to implement this kind of
supplier support activity.

EcoAction 21 seminar

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

28

5

5

Environmental conservation

Communication
Disclosure

Natural Environment

Issuing an environmental report

Local cleaning activities

The NGK Spark Plug Group has been issuing an “ECO
report” since 2000, and also a “Site report” since 2003. The
contents of the “ECO report,” as an “Environmental andSocial Report,” have been changed since 2006 in order togive more coverage to the social aspect. We will continue todisclose information to enable the environmental and social
activities of the Group to be understood.

Participation in environmental exhibitions
To make the general public aware of the group's environmental
conservation activities we are setting up exhibits at various
environmental events.
For three days in September offiscal 2007, from the seventh to theninth, we opened a booth at the
Exhibition of EnvironmentallyFriendly Automotive Industry
Technologies. Displaying our spark
plugs and sensors, we introduced
the ways our technology
Environmental exhibition
contributes to the environment.

In order to maintain the environment surrounding our offices
and factories and also the local environment, we periodically
carry out cleaning activities and also participate in cleaning
and beautification activities held by the local community.
■Cleaning activities around our business sites
Area

Cleaning events

Head Office andHead Office Factory

4 times (total 80 people)

Komaki Factory

9 times (total 265 people)

Miyanojo Factory

3 times (total 108 people)

Ise Factory

2 times (total 51 people)

Iijima Ceramic

2 times (total 30 people)

Nakatsugawa Ceramic

4 times (total 46 people)

Kani Ceramic

2 times (total 132 people)

Nansei Ceramic

4 times (total 55 people)

Kamioka Ceramic

2 times (total 54 people)

Cleaning activities (Head Office Factory)

Nittoku Seisakusho 8 times (total 104 people)
Nichiwa Kiki

2 times (total 47 people)

Tono Ceramic

12 times (total 144 people)

Ceramic Sensor

2 times (total 23 people)

Cleaning activities (Miyanojo Factory)■Cleaning activities held by the local residents

Community

Participation area

Accepting visitors at environmental factories
We are hosting tours of our environmental factories in order tohave people living close to us or those broadly connected to thegroup understand our environmental activities as well as deepen
our communication.
We have also participate as a member of the overseas
exchange sectional committee of the Environmental Partnership
Organizing Club (EPOC) for the purpose of constructing anenvironmental society and carrying out exchange concerning
the environment, and accepting factory visits. In July 2007, we
accepted overseas trainees from the Association for Overseas
Technical Scholarship to tour our factories and introduced our
production process and environmental measures.

Event name

Held byKomaki factory,
Ceramic sensor

Mt. Komaki Beautification Komaki City
Activities

Iijima Ceramic

Environmental picnic

Ina Techno-valley Regional
Center of the Nagano
Prefecture Techno Foundation

Komaki Factory Komaki Beautification Activities Komaki City
Kani Ceramic
Nittoku
Seisakusho

Location
Mt. Komaki
Tenryu River
Civic Hall area

Kani River mass cleanup Kani City

Kani River

Oguchi Town cleanup
activities

Embankments
on both sides of
the Aise River

Oguchi Town

Mt. Komaki beautification activities

Promotion of factory greening

Factory tour (Head Office Factory)

Factory tour (Komaki Factory)■Number of visits
Local residents, schools andlocal governments

7 conferences

Companies and organizations 2 conferences

To reduce the affect our business activities have on theenvironment we are promoting greening of our factory
grounds. We are active in maintaining the greenness of ourgrounds including field maintenance, tree planting andpruning.
At the Komaki Factory we have greened a total area ofapproximately 1,080 m2 of the roofs of the first factory andresearch and welfare buildings.

Environmental conferences
We hold conferences mainly with representatives of the local
residents to enable them to understand our environmental
conservation activities and also to obtain their opinions.
Fiscal 2007 13 conferences 84 people

29

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

Field on our factory grounds (Kamioka Ceramic)

Rooftop greening (Komaki Factory)Mind
Education and Enlightenment
Safety/health and environmental convention
The NGK Spark Plug Group's employees are all aware ofenvironmental and health and safety issues. To improve theirconsciousness of these issues we hosted central and local
area safety/health and environmental conventions. The
themes in fiscal 2007 were, “Making health” and, “Global
warming: reducing carbon dioxide.” There were lectures,
reports, presentations of example measures, and panel
exhibitions to which we invite local residents as well.

LectureEnvironmental education
To deepen employee understanding of environmental issues
and make them aware of the importance of ourenvironmental activities as a business we implemented
environmental education in different levels.
To increase opportunities to improve environmental
consciousness in fiscal 2007 we reviewed our environmental
education system. With our current environmental educationas part of new employee training and new management
training we implemented environmental education during
new assistant manager training. In the future we look to
expand the education target range such as adding
environmental items to the third-year employee training.

Panel Exhibition

Promotion of acquisition of public qualifications■Numbers of officially qualified employees(people)NGK Spark Plug Co., Ltd. Affiliates
Pollution control manager

Air

40

2

Water

72

12

Noise

37

3

Vibration

26

3

Energy manager

33

9Specially controlled industrial waste manager

38

18

Environment measurement engineer

30Work environment measurement engineer

61

Environment card

Electronic announcement system: N-WING

We distribute environment cards to all employees of the NGK
Spark Plug Group so that they understand and are aware of
our environmental policy.
The employees write the“organizations objectives andgoals” and “my individual
efforts” on the environment
cards to ensure that theyremain aware of environmental
conservation.
Environment card

To increase employee consciousnessof environmental conservation ourgroup broadcasts environmental
issues on our electronic announcement
system, N-WING. On displays
installed in four domestic factories,
our sales locations and affiliates weshow various issues ranging from global environmental issues
to in-house topics.

Health, Safety and Environmental News

Employee magazine “Nittoku”

To educate and enlighten our employees, we regularly issue“Health, Safety and Environmental News”, which provides
information on items such as measures and events concerning
the environment, health and safety, and various related events
to improve the diffusion of knowledge and awareness.
We commenced issuing an English language version in fiscal
2005 to cover our overseas offices and factories.

Our monthly employee magazine “Nittoku” includes pages
devoted to the environment.
To help raise an environmental awareness among our
employees, this magazine covers a broad range of issues
related to the environment not only fromour company's activities but also in Japanand overseas, and theimpact of environmental
consideration on ouractions both inside andoutside the workplace.

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

Environmental
conservation

In order to observe the laws and voluntary regulations related
to environmental preservation
and appropriately advance, we
train employees to havespecialized knowledge and also
promote the acquisition of public
qualifications, according to thebusiness contents of eachSpecially controlled industrial waste manager
factory or affiliate.

30

5

5

Environmental conservation

Data
PRTR
Area nameHead Office /Factory

Cabinetorder No.
40
63
68
108
144
224
227
231
299
19
24
25

NGK Spark Plug Co., Ltd.

Miyanojo Factory

40
43
63
230
310
311
63
68
108
227
230
231
232
270
346
63
64
68
227
230
270
272
346
227
230
270
272
40
63
270
231
253
283
304

XyleneChromium and chromium (3) compounds
Inorganic cyanide compounds (except complex salts and cyanates)
TolueneLead and its compounds
NickelNickel compounds
Di-n-butyl phthalate
Molybdenum and its compounds
XyleneSilver and its water-soluble compounds
Chromium and chromium (3) compounds
TolueneLead and its compounds
Di-n-butyl phthalateBis(2-ethylhexyl) phthalate
Molybdenum and its compounds
TolueneLead and its compounds
Di-n-butyl phthalateBis(2-ethylhexyl) phthalate
Ethylbenzene
XyleneDi-n-butyl phthalate
NickelHydrazine
Hydrogen fluoride and its water-soluble salts
Boron and its compounds

40
63
68
100
108
144
207
227
230
231
232
299
304
309
310
311
346
68
108
144
231
304
30

Ise Factory

Name of chemical substance
Ethylbenzene
XyleneChromium and chromium (3) compounds
Inorganic cyanide compounds (except complex salts and cyanates)
Dichloropentafluoropropane ; HCFC-225
1,3,5-trimethylbenzene
TolueneNickelBenzene3-amino-1H-1,2,4-triazole ; amitroleN-alkylbenzenesulfonic acid and its salts (alkyl C=10-14)
Antimony and its compounds
Polymer of 4,4’-isopropylidenediphenol and 1-chloro- 2,
3-epoxypropane (liquid) ; bisphenol A type epoxy resin (liquid)
Ethylbenzene
XyleneChromium and chromium (3) compounds
Cobalt and its compounds
Inorganic cyanide compounds (except complex salts and cyanates)
Dichloropentafluoropropane ; HCFC-225
Copper salts (water-soluble,except complex salts)
TolueneLead and its compounds
NickelNickel compounds
BenzeneBoron and its compounds
Poly (oxyethylene) nonylphenyl ether
Formaldehyde
Manganese and its compounds
Molybdenum and its compounds
Chromium and chromium (3) compounds
Inorganic cyanide compounds (except complex salts and cyanates)
Dichloropentafluoropropane ; HCFC-225
NickelBoron and its compounds
Polymer of 4,4’-isopropylidenediphenol and 1-chloro- 2,
3-epoxypropane (liquid) ; bisphenol A type epoxy resin (liquid)
Ethylbenzene
Ethylene glycol
XyleneLead and its compounds
Formaldehyde
Manganese and its compounds

30

Komaki Factory

Subtotal

Iijima Ceramic

Affiliates

Nakatsugawa
Ceramic(Nakatsugawa
Factory)

Nakatsugawa
Ceramic(Takenami Factory)
Kani Ceramic
Nittoku Seisakusho (Oguchi Factory)
Ceramic Sensor

Total

Quantity released
Quantity
Publichandled Atmosphere water
Soil
area
5,037
0
24,525
1
6,632
1,105
2,600
2,600
2,578
72
55,351
56,206
2,099
0
1,536
2,283
2,718

Office or factory

1
14

0
0

5,037
24,523
613
817

3,628
31,043
1,493
3,248
9,132
2,760
162,345
15,3201,659
10,713
14,626
1,474
18,1082,971
13,550
2,512
1,791
1,709
2,993
3,465
110,424
5,516

2,578
55,279056,125

81
1,521

2,098
15
2,283
2,097

621

30
2,578
2
3

1,287
11,442
703
263
47

2,310
17,023

4,929
33
71
63
5,283

157,370
14,942

2,803

787
2,982
6,277

2,760
46
342
156
21
91
7
398

78

43

21

0
0

2,668
2,918
13,420
2,242
54
1,622
14

9,251
1,467
0
52
130

1,432
10,62926
14,964

25
1,738
88
2,979

3,465
110,424
5,304

207

1,526
1,221
1,848
6,923
43,641
1,824
1,510
650,290
6,318
2,798
3,902
68,716
3,507
2,138
2,440
14,7501,270
11,4891,380
7,416
82,685
3,954
24,8744,390
2,798
37,355
4,004
5,311
2,563
1,252
1,412
3,016
10,310
9,860
2,772
2,008
974,978

6,018
273
0

8,649

1,374
1,154
6,541

19,551
4,228

578

0

15

281

1

67
1,848
382
8,707
1,824
1,256
64,369
2,090
1,245
3,048

153

34,807

310,981254
254,401

134

1,553
718

68,716
2,897
2,138

610
2,440
1,853
689
6,998

4,274

3,899
642
767
11,369
3,538
260
6,207
461
1,277
343

82,04331,14812,897
581
217
1,380
3,517

10,259
237

3,188
3,246
615
2,538
3,543
4,034
2,220

1,252
1,412
1,450

1,568

8,574
2,543

1,286
229
573
338,163

10,310212,624

579

0

15

281

124,671

1,435
298,531

For inquiries
Volume of emissions Volume effectively Volume of buried and(tons)
used (tons)
incineration (tons) Recovery rate (%)
905
18,085
3,392
3,527
25,909
1,040
419
73
11
57
240
7
19
914
28,689Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

9.6
104.0
18.3
10.8
142.7
10.8
6.1
0.4
0.1
0.4
1.8
0.1
0.2
3.2
165.7

98.9％
99.4％
99.5％
99.7％
99.5％
99.0％
98.6％
99.4％
99.5％
99.3％
99.3％
98.8％
98.9％
99.7％
99.4％

Office or factory

Affiliates

Affiliates

914
18,1893,411
3,538
26,052
1,051
425
74
11
57
242
7
19
917
28,855NGK
Spark PlugCo., Ltd.

NGK
Spark PlugCo., Ltd.

Head Office/Factory
Komaki Factory
Miyanojo Factory
Ise Factory
Subtotal
Iijima Ceramic
Nakatsugawa Ceramic
Kani Ceramic
Nansei Ceramic
Kamioka Ceramic
Nittoku Seisakusho
Nichiwa Kiki
Tono Ceramic
Ceramic Sensor
Total

Quantity
Quantity
removed andtaken out
treatedBuried andDisassociation
Product/Soldincineration Effective use
reaction

Quantity transferred
Public
sewer

8,649

Waste

31

（kg）

* The table contains the substances that each business location was required to report

Head Office/Factory
Komaki Factory
Miyanojo Factory
Ise Factory
Iijima Ceramic
Nakatsugawa Ceramic
Kani Ceramic
Nansei Ceramic
Kamioka Ceramic
Nittoku Seisakusho
Nichiwa Kiki
Tono Ceramic
Ceramic Sensor

Contacts for inquiries (Dept. name/tel)Environment and Safety Management Dept.
Environment and Safety Management Dept.
Environment and Safety Management Dept.
Environment and Safety Management Dept.
General Administration Dept.
General Administration Dept.
General Administration Dept.
General Administration Dept.
General Administration Dept.
General Administration Dept.
General Administration Dept.
General Administration Dept.
General Administration Dept.

+81 52−872−5980+81 568−76−1544+81 996−53−2211+81 596−39−1534+81 265−86−5211+81 573−68−5300+81 574−63−2511+81 599−65−3366+81 578−82−1112+81 52−811−3921+81 52−382−0511+81 574−63−1031+81 568−76−5400

Atmosphere, water, noise
Item

Type
Soot and dust

Atmosphere
NOx

Head Office/
Factory

Komaki
Factory

Ise Factory

Iijima Ceramic

pH
SS
BOD
n-hexane extract
CyanogenTotal chromium
Drain
Hexavalent chromium(sewer)Zinc
Lead
NitrogenPhosphor
Fluorine
Boron
R spotMorning
T spotR spotDaytimeT spotNoise
R spotEvening
T spotR spotNight
T spotBoiler (No.1-5)
Soot and dust
Firing furnace (No.9-10)
Boiler (No.1-5)
Atmosphere NOxFiring furnace (No.9-10)
Boiler (No.1-5)
SOx
Firing furnace (No.9-10)
pH
SS
BOD
COD
n-hexane extract
CyanogenTotal chromium
Drain
Copper(public water
Zinc
area)
Lead
NitrogenPhosphorus
NickelManganese
Fluorine
Boron
Morning
Fifth spot
DaytimeFifth spot
Noise
Evening
Fifth spot
Night
Fifth spot
Absorption heater/chiller
Soot and dust
Generator (No.2)
Atmosphere
Absorption heater/chiller
NOx
Generator (No.2)
SOx
Generator (No.2)
pH
SS
BOD
n-hexane extract
Cyanogen
Drain
Hexavalent chromium(public water
Copper
area)
Zinc
Lead
Fluorine
Boron
Coli bacteria
Morning
DaytimeNoise
Evening
Night
Soot and dust Firing furnace
Atmosphere
NOx
Firing furnace
pH
SS
BOD
COD
n-hexane extract
CyanogenTotal chromium
Hexavalent chromium
Drain
Copper(public water
Zinc
area)
Lead
NitrogenPhosphorus
Manganese
Fluorine
Boron
Coli bacteria
Morning
East
DaytimeEast
Noise
Evening
East
Night
East
Firing furnace
Soot and dust
Absorption heater/chiller
Atmosphere
Firing furnace
NOx
Absorption heater/chiller
pH
SS
BOD
COD
n-hexane extract
Phenols
Drain
Cyanogen(public water
Copper
area)
Zinc
Lead
Ammonia
Fluorine
Boron
Coli bacteria
MorningFirst spot
DaytimeFirst spot
Noise
EveningFirst spot
Night
First spot

mg/Nm3Item

Type

Regulation Voluntarystandard Average
value
value
50
4
20
Nm3/h
0
ー
5.8〜8.6 6.2〜8.6
7.4
mg/l
50
2.8
35
mg/l
15
1.8
13
mg/l
40
5.9
30
mg/l
5
<0.5
4
mg/l
10
4
10
mg/l
3
0.05
2.5
counts/cm3
3000
48.7
1000
dB
60
51.5
58
dB
65
51.0
63
dB
60
50.5
58
dB
50
47.0
50
ー
5.8〜8.6 5.8〜8.6
7.3
mg/l
200
2.3
100
mg/l
160
10.1
130
mg/l
160
4.8
80
mg/l
5
<0.5
4
mg/l
120
1.4
120
mg/l
16
0.04
16
counts/cm3
3000
96.3
2000
dB
50
46.5
50
dB
55
55
48.0
dB
50
47.5
50
dB
45
45
45.0
mg/Nm3
100
90
7
ppm
150
135
53
ー
5.8〜8.6 5.9〜8.5
7.1
mg/l
200
180
4
mg/l
160
144
26
mg/l
160
30
11
mg/l
4.5
5
1
dB
50
50
47.9
dB
60
60
47.7
dB
50
50
48.8
dB
45
45
46.8
ー
- 5.8〜8.6
7.1
mg/l
90
<1
mg/l
20
20
<1
mg/l
40
0.67
mg/l
5
<1
mg/l
0.1
<0.01
mg/l
100
1.5
mg/l
16
0.2
counts/cm3
1000
0.67
dB
55
55
51.5
dB
60
60
57.4
dB
55
55
53.1
dB
50
50
46.7
ー
5.8〜8.6 6.2〜8.2
7.5
mg/l
50
200
14.3
mg/l
40
160
5.45
mg/l
40
160
8.35
mg/l
2.5
5
<0.5
counts/cm3
300
3000
<30
dB
60
60
43
dB
65
65
46
dB
60
60
45
dB
50
50
45
ー
5.0〜 5.8〜9.0
7.3
mg/l
300
600
5
mg/l
300
600
8.7
mg/l
25
50
<0.5
dB
60
60
62
dB
65
65
61
dB
60
59
60
ー
7.4
5.8〜8.6 6.0〜8.4
mg/l
30
18
30
mg/l
20
25
4.5
mg/l
4
5
3
mg/l
60
120
1.3
mg/l
8
16
0.03
dB
55
52
55
dB
60
57
60
dB
55
54
55
dB
50
42
50
ー
6.5
5.0〜 6.0〜8.0
mg/l
40
1.5
50
dB
63
61.9
65
mg/Nm3
200
29
ppm
400
50
ー
6.6
- 5.8〜8.6
mg/l
200
1
mg/l
160
2.3
mg/l
5
0.5
dB
49.0
50
50
dB
60
56.3
60
dB
50
49.0
50
dB
44.0
45
45
mg/Nm3
200
1
200
ppm
63
ー
7.3
6.0〜8.0 6.0〜8.0
mg/l
18
6.3
18
mg/l
3.8
18
18
mg/l
18
11.6
18
mg/l
1
2
2
mg/l
30
11.2
30
mg/l
3
0.2
3
mg/l
2.4
8
8
mg/l
10
1.8
10
dB
58.4
70
70
dB
60
57.9
60
Unit

Soot and dust Firing furnace(NN-1)
Atmosphere
SOx
Firing furnace(NN-1)
pH
SS
BOD
Drain
COD
Nakatsugawa(public watern-hexane extract
Ceramic
area)
Nitrogen(Nakatsugawa
Phosphorus
Factory)
Coli bacteria
Morning
Fourth spot
Daytime
Fourth spot
Noise
Evening
Fourth spot
Night
Fourth spot
pH
SS
BOD
Drain
COD
(public watern-hexane extract
Nakatsugawa
area)
Nitrogen
Ceramic
Phosphorus(Takenami
Coli bacteria
Factory)
Morning
Fourth spot
Daytime
Fourth spot
Noise
Evening
Fourth spot
Night
Fourth spot
Soot and dust
Atmosphere
NOx
pH
SS
Drain
BOD
(sewer)COD
Kani Ceramicn-hexane extract
MorningFirst spot
DaytimeFirst spot
Noise
EveningFirst spot
Night
First spot
pH
SS
BOD
COD
Drain
n-hexane extract(public water
Lead
area)
Nansei
Nitrogen
Ceramic
Phosphorus
Coli bacteria
Morning
North
DaytimeNorth
Noise
Evening
North
Night
North
pH
SS
Drain
BOD
(public water
COD
area)
n-hexane extract
Kamioka
Coli bacteria
Ceramic
Morning
Fourth spot
Daytime
Fourth spot
Noise
Evening
Fourth spot
Night
Fourth spot
pH
Drain
SS
Nittoku(sewer)BOD
Seisakusho
n-hexane extract(Head OfficeMorning
Second spot
Factory)
Noise
Daytime
Second spot
Evening
Second spot
pH
SS
Drain
BOD
(public watern-hexane extract
Nittokuarea)
Nitrogen
Seisakusho
Phosphorus(OguchiMorning
Factory)First spot
DaytimeFirst spot
Noise
EveningFirst spot
Night
First spot
pH
Drain (sewer)n-hexane extract
Nichiwa Kiki
Noise
Daytime
Soot and dust
Atmosphere
NOx
pH
Drain
SS
(public water
BOD
area)
Tono Ceramicn-hexane extract
Morning
DaytimeNoise
Evening
Night
Soot and dust
Atmosphere
NOx
pH
SS
BOD
Drain
COD
Ceramic(public water n-hexane extract
Sensorarea)
NitrogenPhosphorus
Fluorine
Boron
Daytime
Noise
Night

mg/Nm3

MAX
6
0
7.6
4.0
2.6
7.8
<0.5
6.9
0.18
230
52.0
51.5
51.0
49.0
7.9
4
14
8
<0.5
2.1
0.07
360
47.0
48.0
48.0
45.0
7
53
7.1
4
26
11
1
52.0 *350.0
51.0 *351.0 *3
7.2
<1
<1
2
<1
<0.01
3.2
0.47
2
51.5
57.4
53.1
46.7
7.6
24
8.2
9.3
<0.5
<30
43
46
45
45
7.3
5
8.7
<0.5
62 *１
61
59
7.4
18
4.5
3
1.3
0.03
52
57
54
42
6.5
3
61.9
29
50
6.6
1
2.3
0.5
49.0
57.0
49.0
44.0
1
63
7.5
10
6.3
14
1
15
0.3
9.1 *3
3.7
59.5
58.9

Environmental
conservation

Miyanojo
Factory

Boiler (No.12)
Firing furnace (PR-2)
Boiler (No.12)
Firing furnace (PR-2)

Regulation Voluntarystandard Average
MAX
value
value
50
2.0
2.0
40
mg/Nm3
150
11.0
10.5
120
ppm
150
42
42
120
ppm
180
70
67.5
144
5.0〜9.0 5.4〜8.6
7.3
6.9
mg/l
600
29
13.3
480
mg/l
600
36
16
480
mg/l
30
2.8
1.1
24
mg/l
1
0.16
0.3
0.8
mg/l
2
0.06
1.6
0.09
mg/l
0.5
0.06
0.4
0.06
mg/l
2
0.59
1.6
0.97
mg/l
0.1
<0.02
0.08
<0.02
mg/l
120
15.7
96
29
mg/l
16
0.33
12.8
0.67
mg/l
8
0.22
6.4
0.6
mg/l
10
<1
8
<1
dB
70
60.4
68
60.4
dB
65
63.5
63
63.5 *1
dB
70
60.6
68
60.6
dB
65
66.2
63
66.2 *１
dB
70
62.4
68
62.4
dB
65
64.8
63
64.8 *１
dB
65
58.4
64
58.4
dB
55
61.8
54
61.8 *1
mg/Nm3
200
<2
160
<2
mg/Nm3
200
10
160
12
ppm
250
18
200
21
ppm
200
72
160
80
Nm3/h
8.379
<0.3
6.703
<0.3
Nm3/h
8.379
<2
6.703
<2
6.0〜8.0 6.2〜7.8
7.3
7.5
mg/l
30
3.0
24
8.0
mg/l
25
4.5
20
10
mg/l
4.2
8.2
mg/l
5
<0.5
4
<0.5
mg/l
0.5
<0.1
<0.1
0.4
mg/l
1
<0.04
<0.04
0.8
mg/l
1
0.04
0.16
0.8
mg/l
1.8
0.18
0.46
1.6
mg/l
0.1
<0.02
<0.02
0.08
mg/l
120
9.2
16
60
mg/l
16
0.59
2.4
8
mg/l
0.14
0.2
mg/l
10
0.06
0.1
8
mg/l
8
0.51
0.7
6.4
mg/l
10
1.08
2
8
dB
65
50.5
50.5
63
dB
70
50.2
50.2
68
dB
65
50.0
50.0
63
dB
60
50.3
50.3
58
mg/Nm3
300
19
19
240
mg/Nm3
100
- *2
80
ppm
180
50
50
144
ppm
950
900
- *2
Nm3/h
3.9
- *2
3.0
ー
6.0〜8.0 6.5〜7.8
7.4
8
mg/l
35
7.9
28
15
mg/l
20
4.8
16
12
mg/l
5
<2.5
4
<2.5
mg/l
1
<0.05
0.8
<0.05
mg/l
0.5
<0.05
0.4
<0.05
mg/l
3
<0.05
2.4
<0.05
mg/l
2
0.12
0.12
1.4
mg/l
0.1
<0.01
0.08
<0.01
mg/l
6.4
8
<0.2
<0.2
mg/l
8
10
3
4.2
counts/cm3
2400 Not detected Not detected
3000
dB
45.1
47.0
55
60
dB
51.3
52.5
60
65
dB
46.8
48.1
60
55
dB
46.2
47.0
50
50
mg/Nm3
5
5
100
250
ppm
90
90
140
180
ー
7.7
8.0
5.8〜8.6 6.0〜8.4
mg/l
1.1
2.0
30
24
mg/l
1.0
1.0
8
10
mg/l
1.0
1.0
12
15
mg/l
<1
<1
2.5
5
mg/l
<0.1
<0.1
0.5
1
mg/l
<0.04
<0.04
1
2
mg/l
<0.04
<0.04
0.25
0.5
mg/l
<0.02
<0.02
0.5
1
mg/l
1.0 <0.005 <0.005
2
mg/l
<0.01
<0.01
0.05
0.1
mg/l
0.38
0.8
60
120
mg/l
0.05
0.09
8
16
mg/l
<0.02
<0.02
mg/l
<0.1
<0.1
4
8
mg/l
0.01
0.01
5
10
counts/cm3
1500 Not detected Not detected
3000
dB
46.4
46.4
55
55
dB
46.4
46.4
58
60
dB
49.3
49.3
55
55
dB
48.5
48.5
50
50
mg/Nm3
<5
<5
250
250
mg/Nm3
<5
<5
100
100
ppm
<10
<10
180
180
ppm
29
33
150
150
ー
7.3
7.5
5.8〜8.6 6.0〜8.0
mg/l
4.2
8
10
50
mg/l
1.7
3.1
25
30
mg/l
4.3
8.6
30
30
mg/l
<1
<1
5
5
mg/l
0.02
0.02
5
5
mg/l
<0.01
<0.01
0.2
0.5
mg/l
0.04
0.06
2
2
mg/l
<0.05
<0.05
3
3
mg/l
0.006
0.007
0.1
0.1
mg/l
10.2
11
500
500
mg/l
0.53
0.8
15
15
mg/l
1.35
2.6
50
50
counts/cm3
58.3
130
3000
3000
dB
43.0
43.0
65
65
dB
48.5
48.5
65
65
dB
49.2
49.2
65
65
dB
48.7
48.7
55
55
Unit

*1：These values apply to the background noise level. The background noise level isthe noise when machines, and so on, are not operating. It is affected by traffic
noise, noise from adjacent factories, and so on.
*2：Stopped operation in fiscal 2006 so there are no fiscal 2007 measurements.
*3：For the contents of infringements, see p.16 Compliance.

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

32

5

6

Social contribution

As a good corporate citizen, we shall actively engage in philanthropic
activities and other activities of benefit to society.
●We are always keen to join social contribution initiatives such as fund raising by the general business community for theurgent support of victims of large-scale natural disasters.
●In areas where our production sites are located, we are committed to various types of social contribution activities whose aim
is to enhance communication with the local communities and establish a more comfortable society.
●We will maintain an environment for encouraging employees to get voluntarily involved in social contribution.

Traffic Safety

As a corporation that is involved with the automobile
industry, traffic safety is foundational. In addition to raising
the awareness of safe operation among our employees, we
also urge persons passing the vicinity of our office or factory
to observe traffic safety.

Traffic safety education

Summer traffic safety campaign

Komaki Factory Traffic Safety Measures
Factory area risk map

Right-hand turn lane

We have gathered accident
information for the areaaround the factory into a risk
map to raise awareness ofdangerous locations.

The many employees thatwork at the Komaki Factorywere causing traffic jams,
becoming a local traffic
safety issue. In 2007 werelieved the traffic by creatinga right-hand turn lane in the
T-junction by contributing
land to add to the prefectural The new right-hand turn lane
and municipal roads besidethe factory property.

Risk map

Pedestrian bridge installation
Between our current factory andthe new factory established inJuly 2007 there is an extremely
busy prefectural road. To keep
our employees safe as they comeand go between the two facilities
we installed a pedestrian bridge,
contributing to the convenience ofPedestrian bridge
Komaki citizens as well.

Contribution to Local Communities

33

Large-scale natural disaster local support cooperation

Disaster prevention contributing organization

As part of disaster assurance city planning activities Nagoya City isadvancing its plans together with local
businesses to build a disaster resistantcity. Along with our neighborhood
school zone in Mizuho Ward, Nagoya
City, where our head office is located,
we wrote up a memorandum of theresources and equipment that we can
supply in case of a large-scale disaster. Writing up the memorandum

We are aware of the importance of disaster prevention
measures and are regularly cooperating with local disasterprevention measures.
At the Aichi Disaster Prevention Cooperative Society
Promotion Meeting 2007, hosted in November 2007 we were
presented with an award as a disaster prevention
contributing organization based on our donation of anearthquake simulation vehicle and our cooperation with
Komaki City disaster prevention drills.

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social ReportSupport for foreign students
Nittoku Asia Student Scholarship Public TrustNGK Spark Plugs is developing business in production andsales hubs around the world and especially in Asia, including
Malaysia, Thailand, Indonesia, Taiwan, Korea, Singapore,
China, India and the Philippines.
In June 2007 we established a scholarship fund for students
from Asian countries attending universities and graduate
schools in Aichi prefecture as a memorial of our 70th year
since establishment that we celebrated in November of 2006.

In fiscal 2007 we supported eight students with our aim being toencourage friendly relationships between Japan and Asian
countries and to develop
new human resources.

Presentation ceremony

Participation in regional events
Komaki Industry Festival 2007
by people coming to take part in the Festival.
Shin-chan, The earthquake simulation vehicle we donated to
Komaki City as part of our 70th anniversary activities inMarch 2007 was alsopresent and in use.

Komaki Industrial Festival 2007

Mizuho Ward Citizen's Festival

Satsuma Town Summer Festival

In August 2008 Mizuho Ward, Nagoya City, home to ourhead office, hosted the 18th Mizuho Ward Citizens Festival,
in which we participated as a local supporting business.
At the festival site, Guragura-Go, the earthquake simulation
vehicle we donated to Nagoya City as part of our 70th
anniversary activities, was available as an activity allowing
many families to experience large-scale earthquakes in an
earthquake discovery section.

Satsuma Town, home of our Miyanojo Factory, hosted theSatsuma Town Summer Festival in August 2007. The festival
was not held the year before due to natural disaster causedby heavy rains in 2006 in northern Kagoshima Prefecture
making this festival the first in two years. The festival
featured around 1,000 people dancing in time with thebooming sound of Miyanojo Itsutsu Taiko (traditional
Miyanojo five drums).
A row of approximately 140 people from the Miyanojo
Factory participated, dancing and livening up the festival.
There was also a Te-Odori Award for the best Te-Odori(hand dancing) group.

Guragura-Go

Socialcontribution

In May 2007 the Komaki Chamber of Commerce andIndustry hosted the Komaki Industry Festival 2007. Many
whole families came, with total participation of approximately
20,000 people.
We had a booth entitled “Introducing our Environmental
Measures” where we introduced our oxygen sensor andsmall long-reach plug, our environmentally friendly products
such as the medical oxygen condenser as well as the state of
our initiatives.
The location of the event was close to our Komaki Factory so
we also temporarily opened our employee parking lot for use

Nittokku Odori Ren

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

34

6

7

Employees

We shall strive to respect the diversity and individuality of ouremployees and foster a safe and excellent working environment where
they can realize their full potential.
●Based on our corporate philosophy (Management policy) that “We offer a working environment in which each one of us isencouraged to make full use of his or her personality and capability”, we will place emphasis on the cultivation of unique andcooperative human resources.
●We acknowledge that employees are the most important management resource, and will secure nondiscrimination and equal
opportunities in employment, provide fair working conditions and establish a personnel system to ensure that people withdifferent qualities can fully realize their own capabilities.
●We will consider the health and safety of employees and provide a comfortable working environment. We will never get
involved in the use of forced labor or child labor in any way.

Personnel system
Equal Opportunity

We are working to thoroughly eliminate discrimination basedon race, sex, beliefs, handicap and so on in our recruitingand employment.
Our employment of handicapped is below the regulated
1.8%, so are striving to improve our employment practices.
■Male-female ratio
Permanent employees

To increase the opportunities for employees with aneagerness to work, we have implemented various systems
including: a shift exchange system, an in-house open
recruitment system and a female employee late night shiftsystem.
■Percentage of employees who are handicapped

New employees(Fiscal 2007)

Female
16%

（％）

2.0
1.8

Female
20%
Male
84%

1.81
1.70

1.6

1.71

1.69

1.57
1.50

1.4

Male
80%

1.41

1.2
0

2001

(As of end of March 2008)

2002

2003

2004

2005

2006

2007 (Fiscal year)

Supporting Ability Development
We provide various kinds of education and training including
level-specific, function-specific, and continuing education toemployees, according to their work content and businessenvironment, so that they can acquire knowledge and skills
and pass them on to future generations of our employees.

Required education

and Technology andLevel specific training Officesales
research

International project personnel cultivation scheme
Various language training

Self initiated - English conversation

Happy Life Seminar

IE training
Understanding drafting diagrams /various equipment training

Correspondence learning support scheme

Intellectual property education(beginner/basic)

Each department - product knowledge training

NGK Spark Plug Group Environmental and Social Report

Productionengineeringgroup
specialist
education

Quality assurance department specialist training

Contract/tradmark
training

Third year
environmental education

New employee training

Intellectual property education(intermediate)

Health and safety department specialist training

Mental health training

Followup
training

Third year healthand saftey training

Fifth year
training

Leadership training

New section
chief training

GeneralManagement health andsaftey education

New staff
training

Sectionchief

Evaluation training

Management
simulation training

Deputysectionmanager

New management training

Environmental & Social Report 2008

ApplicantsContinuing
eduction

OA education, e-learning

Sectionmanager35

All roles

TOEIC
All
certifications/functions

Department
manager /assistantmanager

New employee education

Selective training

SkillsSupporting Simultaneous Pursuits
To help employees who are raising children and caring forfamily members, we are striving to establish a suitablesystem and a work environment that allows the simultaneous
pursuit of childcare/nursing care and work.
■Schemes to support childcareChildcareleave
schemeChildcare leaveextension
schemeSpecialleave
schemeShort-timeworkscheme■Number of people using the leave schemes(people)70
60
50

To the age of 1 It is possible to take leave in order to raisechildren.
year
To the age of 2 It is possible to extend the leave period when nonursery school is available, for example.
years
Until entrance
to elementary It is possible to acquire nursing leave for up to 5days a year to nurse a sick or injured child.
schoolUntil the end of themonth after entering It is possible to shorten the working hours perelementary school day by 2 hours.

40
30
20
10
0

2001

2002

2003

2004

Number of employees taking childcare leave

2005

2006

2007

Number of employees taking nursing leave (Fiscal year)

Management of Working Hours
To ensure proper management ofworking hours and prevent excessive
work, we have adopted a working hour
management system using employee IC
cards.
We have also distributed a Working
Hour Management Handbook to all our
employees and in cooperation with thelabor union ensure that Wednesday isobserved as a no-overtime day hoping tocontinue to promote a balanced work life.

IC CardNo-overtime day

Working Hour
Management Handbook

Labor and Management Relations

Re-employment system for ex-employees
In 2001, we are introduced a system of re-employing retirees of retirement
age in order to effectively utilize the knowledge and skills they cultivatedthroughout their careers. Along with the enforcement of the revised Law
concerning the Stabilization of Employment of Elderly Persons in April
2006, we will extend the period of re-employment in phases to age 65.

Employees

An important mission of labor and management is tocontribute to society at large by offering good products andgood service. To ensure that both labor and management
discharge their responsibilities in an atmosphere of mutual
trust and cooperation, and create a better workplace where
employees are more eager and active, we periodically holdlabor and management gatherings and also labor andmanagement conferences, and deal with a variety of issues.

After Mandatory Retirement

Happy Life Seminar

Labor and management gathering

Since 1994 we have held
Happy
Life
Seminars(overnight stay with spouses)
for employees who havereached the age of 50 or more.
This seminar gives them
opportunities to think about
their life aims in after
retirement as well as theirhealth and finances, throughlectures and group discussions.

Happy Life Seminar(people)Fiscal 2007

Total

Re-employed ex-employees

49

233

Participants in the Happy Life Seminar*

61

1093

*Excluding spouses

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

36

7

7

Employees

Occupational safety and healthPrinciple and Basic Policy

Principle
To position occupational safety and health as the starting point ofbusiness activities with respect for people as a foundation in our
activities.

Occupational safety and health policy
Observe laws and self-standards relating to occupational safety
and health.
●Reduce risks and eliminate work-related accidents by sustained
improvement of our occupational safety and health management
and performance.
● Promote employee understanding of policy, and awarenessthrough training and enlightenment, and widely expand overall
participation in occupational safety and health activities.
●

Action Guideline
Come to work in good physical and mental health, and go home at
the end of the day with a smile on your face!

Slogan for fiscal 2008
Raise risk awareness and promote accident prevention!

Genjiro Hashimoto
Executive Vice President,
Chief Safety and
Health Administrator■Safety and health promotion organization
President
Chief Safety and Health Administrator(Central safety and health committee chairman)

Central safety and healthcommittee

Safety and Health Administrator

Factory safety and healthcommittee

Internal Safety
andHealth Auditor

Department/section safety
and health subcommittee

OSHMS
Secretariat* Each factory refers to the
Head Office Factory,
Komaki Factory, Miyanojo
Factory, Ise Factory

Expert committeesorganized when necessary
・Ad hoc assessment
committee
・Traffic safety measurescommittee

Office meeting on
safety and health

Each factory

Occupational Safety and Health Management System
To eliminate occupational hazards and create a comfortableworking environment, we have constructed an occupationalsafety and health management system (OSHMS). As a resultof having this system subjected to an examination in
December 2006, it was confirmed that the system conformed
to the OSHMS standards of JISHA (Japan Industrial Safety
and Health Association) based on the Occupational Healthand Safety Management System of the Health, Labor andWelfare Ministry, and we acquired certification for four
factories.

Survey of danger and toxicity
Drawing up a plan

ActionImproving
the plan

Plan

Implementing
the plan

Phased improvementof the safety andhealth standard

Check

Do

Evaluation of the plan situation■Situation concerning acquisition of certification of eligibility
Factory nameDate of approval

Head Office and Head Office Factory

December 11, 2006

Komaki Factory

December 11, 2006

Miyanojo Factory

December 25, 2006

Ise Factory

December 11, 2006

Approval plate

Examination

Targets and Results
We set the following goals for fiscal 2007, however many
were not accomplished. For the results of each target pleasecheck the next page.

When setting goals for fiscal 2008 we checked the details of
the accidents that occurred in fiscal 2007 and madeaccidents related to chemical handling a target for this year.

■Fiscal 2007 target results■Fiscal 2008 targets① Elimination of crushing and striking accidents ×
1.Elimination of occupational
accidents② Elimination of accidents caused by scattering ×
2.Improvement of working environment ① Reduction of workplaces in the third and second management categories ×① Improved health management awareness ○3.Health promotion○② Enhanced mental health care
① Promotion of safety and health education ○4.Enhanced education and○② Reinforcing safety and health patrol
enlightenment③ Promoting voluntary activities at the workplace ○Elimination of occupational
accidents

Elimination of crushing and striking accidents

Improvement of working environment

Reduction of workplaces in the third and second management categories○ : Accomplished ×: Not accomplished

37

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

Health promotion

Elimination of accidents caused by chemical handling
Improved health management awareness
Enhanced mental health care
Promotion of safety and health education

Enhanced education andenlightenment

Reinforcing safety and health patrol
Promoting voluntary activities at the workplace1. Elimination of occupational accidents① Elimination of crushing and striking accidents
The total number of accidents including minor accidents was
22, of which 4 were accidents involving pinching and 3 were
impact accidents.

■Number of accidents resulting in absence from work

(Number of accidents)

2001

2002

2003

2004

2005

2006

2007

2

3

2

1

4

1

8

There was one accident due to scattering chemicals. There
were two other accidents related to chemicals.
In fiscal 2007 there were many cases of accident leave being
taken as a result of actions such as slipping or falling down. To
prevent careless accidents we reveiwed everyday workplace
health and safety activities trying to improve individual awareness.

Rate of accidents resulting in absence from work

■Rate of accidents resulting in absence from work per year

② Elimination of accidents caused by scattering

NGK Spark Plug Co., Ltd.

Electrical machinery and appliancemanufacturing business

0.8

Number of accidents resulting in
Rate of accidents
absence from work
resulting in absence ＝
×1 million
Total working hours
from work

0.7
0.6

0.69

0.5
0.40

0.4
0.3

0.30
0.20

0.2

0.20
0.10

0.1

0.09

0
2001

2002

2003

2004

2005

2006

2007 (Fiscal year)

2. Improvement of working environment① Reduction of workplaces in the third and second management categories
Workplaces that handle organic solvents and specified
chemical substances or generate significant noise implement
working environment measurement based on the Occupational
Safety and Health Law. The result of measurement showed thatworkplaces deemed third or second management categories
were primarily workplaces with loud noise. We are working tocontrol noise by implementing various countermeasures but
have been unable to create a noticable change and are using
safety gear to prevent illness.

Management
category

Working environment
management

Third

Inadequate
workplace

SecondRoom forimprovement

First

Adequate
workplace

Working environment measurement

3. Health promotion
So that all our employees can work with healthy bodies we haveset goals to reduce the number of employees with abnormal
findings in general health checkups. In fiscal 2006 and 2007 thenumber of people receiving a blood test increased increasing
the ratio of persons with abnormal findings. On the other hand
employee participation in health lectures increased to increase
employee interest and consciousness of health issues.

② Enhanced mental health care

40

30

35.0
28.0

28.5

29.5

2003

2004

2005

31.7

20

10

0
2006

2007

(Fiscal year)

Employees

To address the issue of mental
health the human resources
department, environment andsafety department, helath andinsurance union and labor union
established a mental healthspecialist committee. We also
hosted training for management.

■Ratio of employees with abnormal findings as a result of a general health check

Ratio of employees withabnormal findings (%)① Improved health management awareness

Mental health training

4. Enhanced education and enlightenment① Promotion of safety and health education
We educate employees in line with their experience and position
such as new employee, third-year employee, foreman, assistantmanager or executive, and also give education on organic
solvents, dust and forklifts depending on their job descriptions.

② Reinforcing safety and health patrol③ Promoting voluntary activities at the workplace
New employees wear a special hat for one year so that moreexperienced employees can be active in supporting them toprevent injury of the new employees. We also promote thefollowing health and safety standards: KYT (Kiken Yochi
Training, or hazard protection training), close call activities, and
5S (Seiri, Seiton, Seiso, Seiketsu, Shitsuke).

We regularly implement a patrol involving the health and safetycommittee, occupational health physician and the sanitation
manager to better understand the issues we face.

PatrolSection chief training

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

38

7

8
9

Civil society

We shall reject all contacts with organizations involved in activities inviolation of the law or accepted standards of responsible social behavior.
●We will take a strict stance on pressure from violent civil intervention, and decisive steps in cooperation with law enforcement

agencies.

Cultural respect

We shall respect the cultures and the customs of local communities where we
do business and strive to manage our activities throughout the world in sucha way as to promote and contribute to the development of local communities.
●We will perform our overseas business activities based on mutual trust with our customers, suppliers, employees, etc., andnot only comply with the laws of each country but also respect its culture, customs and history.

●We will train to utilize local employees and suppliers in order to be a trustworthy company and a part of local society.

Ceramica e Velas de Ignicao NGK do Brasil Ltda.

Ceramica e Velas de Ignicao NGK do Brasil Ltda. is the overseas
branch with the longest history within the NGK Spark Plug Group,celebrating its 50th anniversary in 2009. Throughout that long
history we have contributed to the development of the local
society.
In September 2007 our ongoing activities were recognized as
President Kato received the Ipiranga Order, the highest decorationof the State of São Paulo. Another reason was the donation to thecitizens of Mogi City of the old factory site in December 2006.
Decoration Ceremony

Certificate

Mini-sports tournament

Memorial tree planting

Indian customary coconut splitting ceremony

NGK Spark Plugs India Pvt.Ltd.

P.T. NGK Busi Indonesia
P.T. NGK Busi Indonesia is our third production hub inSouth-East Asia. Since establishment in 1977 this location
has been producing Spark Plugs and in May 2007, theycelebrated their 30th anniversary. A total of 400 employees
participated in a memorial mini-sports tournament, desiring
to see greater growth in the future.

NGK Spark Plugs (India) Pvt.Ltd.
To support growing spark plug demand in India, in 2006 we
established NGK Spark Plugs (India) Pvt.Ltd. and in
February 2008 we held the Factory opening ceremony. At
this event a memorial tree was planted as well as the Indiancustomary coconut splitting ceremony.

39

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

10
EthicsManagement shall exercise leadership in making the letter and spirit of the Code of Conduct
integral to everyday business practice, thoroughly implementing the Code of Conduct
throughout the Company and inculcating it throughout the Group and its supply chain. To thisend, management shall continually improve internal systems while striving to cultivate ethics.
●Our top management will lead by example in the group's code of conduct, and take the initiative in cultivating, establishingand spreading a corporate culture of encouragement for ethical actions.
●Through the enrichment of opportunities for direct communication with employees, etc. and the expansion of in-house
education, our top management will strongly encourage each member of NGK Spark Plug Group to be aware of and practicethe code of conduct.
●Our ultimate target is the creation and establishment of a united organization with an ethical corporate culture based on theparticipation of all employees.

Activities for CSR

We believe that one of the most important management
issues for fulfilling our corporate social responsibility is toestablish and maintain a fair and efficient management
system while ensuring healthy and transparent management.
Nov. 1996
Feb. 1998
Apr. 1998
Feb. 2003
Nov. 2004
Apr. 2005
Aug. 2005
Jan. 2007
Feb. 2007

Adopted “Corporate Philosophy”
Adopted “Corporate Code of Conduct”
Established Ethical Committee
Adopted “Corporate Ethics Helpline System Operation Guidelines”
Revised “Corporate Code of Conduct”
Published “Code of Conduct Guidebook”
Published “Guidelines on the Handling of Personal Information”
Adopted “Export Management Regulations”
Published “Secrecy Management Guidelines”
Adopted “Secrecy Management Regulations”

As our basis stance for having all directors and employees
understand and correctly practice the components of ourcorporate philosophy, namely“Commitment”, “Management Policy”
and “Action Guidelines”, we haveestablished a “Corporate Code of
Conduct” which enhances awarenessof legal and ethical compliance.
By implementing regular internal
audits and controls of Export
Management Regulations andSecrecy Management Regulations
we are working to comply with export
regulations and establish a trade
Code of Conduct Guidebook
secret protection system.

Corporate Governancedirectors to quickly grasp the situation and make adjustments
for climate change. The corporate auditor also is present at
the meeting of the directors to understand the important
issues. The auditor also audits the business operations of thedirectors through regular exchanges of opinion with the CEO
and performing audits of important business locations andaffiliates.
NGK Spark Plug Co., Ltd. has not appointed any directors
from outside the company* but the directors work to checkeach other, fulfilling the role of an auditor and we believe wehave a properly functioning system of governance.
* as of June 2008

Appointment/dismissal

Appointment/
dismissal

Audit

Board of directors
Appointment/
dismissal
Administration
director in charge

Internal audit section
Indication

Cooperates mutually

Indication

Various conferences
and committee

Audit

Accounting auditors

Disclosure

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

EthicsIndication

Managing directors
committee
of executive directors(Composed
and higher ranking directors )Board of Auditors
4 auditors of whom 2
are outside auditors

Audit

Business operating section

President
Indication

Appointment/
dismissal

Cultural respect

General meeting of shareholders

Civil society

The Companies Act came into effect in May 2006 withstronger maintenance of the corporate internal regulation
systems. We have worked to review our business processes
and information management to perfect our internal
regulation functionality.
The board of directors (standing and temporary) is
supervising the business conduct situation of each director
as well as deliberating and making decisions on the sectionsof laws and the articles of incorporation that relate tobusiness operations and other important items related to
management. Furthermore, we have a managing directors
committee for executive directors and higher ranking

8
9
10

40

Message from a stakeholder
As I read the report I undersood the vaious activities for
not only the environment, but also the region and societythat we are in. In November, as I toured the Head Office
Factory, I was struck by how waste was being carefully
divided by type. To continue these kinds of detailed
measures requires proper disposition of the employees.
Eco Vision includes “education of eco-minded
employees,” and I was impressed with the fruit the NGK
group has borne through ongoing education, hosting
conventions, the internal magazines and so on.

Nagoya will host COP10 in2010. The variety of life is adifficult topic but throughcooperation with the local
society we work to become amodel of activities to thebusinesses around us.
Mitsuaki Tsuge
Fiscal 2007- 2008 Environmental
Conservation Committee Chief
Nagoya South Rotary Club

Third party examination
The NGK Spark Plug Group prepares this Environmental andSocial Report based on our policy of cunducting information
disclosure in an correct and easy to understand manner. This
Environmental & Social Report 2008, based on that policy,
underwent third party examination by TÜV Rheinland Japan Ltd.
to verify that it expresses information correctly and inclusively.

This inspection verified the following: important environmental
information is reported without omission, the data is correctly
measured and calculated and the included information agrees
with the source materials.

Undergoing a third party examination
This was the fifth time the report has undergone third party
examination. Each time we have received improvement
requests regarding various aspects of the document torelease the best report possible.
For the Environmental & Social Report 2008 our lengthening
the information related to our environmentally friendly
products we well received. On the other hand we received
strict direction regarding the clarity of the related areas andthe lack of information about Eco Vision 2010. In areas
where we received advice regarding omission and insufficient

expression has already been edited. For items that take alonger period of time to accommodate we are working toaddress those issues and improve the report.

Editorial meeting

41

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

Third party examination

Corporate Profile
Corporate name

NGK Spark Plug Co., Ltd.

Head Office

14-18 Takatsuji-cho, Mizuho-ku, Nagoya

Foundation

October 26, 1936

Capital47,869,270,000 yen

Business(1) Manufacturing and selling spark plugs andrelated products for internal-combustion engines.

Results of questionnaire concerning Environmental and Social Report 2007
Thank you for sending us all your answers to the questionnaire in “Environmental and Social Report 2007” published in fiscal
2007. We take your opinions seriously and are working to implement even more thorough information disclosure.
Before reading our Environmental and Social Report 2007,

How easy did you find our Environmental andQ1 how much did you know about NGK Spark Plug Group's

Q2 Social Report 2007 to understand?

environmental policy or activities?

Difficult(2) Manufacturing and selling new ceramics andapplicable products.
Group companies

Nothing

4%

Business Areas

A lot
A little

58%

38%

Easy

81%

check the box or boxes that best describe yourQ4 Pleasesituation and position.

Q3 What did you find particularly interesting?

    

0%

19%

37 subsidiaries (11 in Japan, 26 overseas),
7 affiliates

Reasonably easy

(Top three)●Ceramic IC packages●Organic IC packages●Packages for communication devices●Antenna Switch Module●Others

17%

3%
3%

・Environmental Declaration, Environmental Principles,
Environmental Action Plan

Consumer

・Environmental load from business activites

17%

・Factory/Office             ●Spark plugs for automobile and motorcycle●Spark plugs for marine engines and farm equipments●Glow plugs for diesel engines●Igniter plugs for aircraft●Igniter plugs for rocket●Resister cable, resister cover●Others

Research/Education related

・I became interested in global warming measures.
(Response) We will continue to take steady steps to this end.

No, this was my first time

29%

・I would like to see measures your clients are taking.
(Response) We increased the information about our clients.
Please see pages 9 and 28.

Yes, occasionally・I would like to see more use of natural energy and tree planting activities.
(Response) We included information about our clean energy
solar panel information on page 20.

Yes, every year

39%

 
       Working in environmental affairs

you have any other comments or requests regarding ourQ6 Ifenvironmental
activities, please write them here.

Q5 Have you read any of our previously issued reports?

 
  60%

NGK Spark Plug Group
employee or family member     ●Dielectric filters●Dielectric resonators●Electronic igniter●Ultrasonic transducers●Others

Business associate

32%

Request to answer
the questionnaire

Thank you for reading through our Environmental and Social Report 2008.
For the further improvement of this report, we kindly ask you to fill in the questionnaire.

FA X : + 8 1 5 2 - 8 7 2 - 5 9 4 2
e-mail : eco@mg.ngkntk.co.jp
Personal information
protection policy

We will only use your personal information to delivery next year's report to you. Even when we publish the results ofthis questionnaire, we will not show it in a form in which the respondents can be identified.

You can view the following reports on our home page.

  
●Ceramic inserts●Cermet inserts●Coated chips●Micro grain carbide chips●Others
    
    

●Exhaust gas oxygen sensors●Universal A/F heated exhaust gas oxygen sensors●Knock sensors●Temperature sensors●Others  

●Ceramic tube for VCB●Parts for semiconductor
manufacturing equipments●Ceramic heaters●Silicon rectifier containers●Ozonizer●Bio ceramics●Oxygen concentrator●Others

1

Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

・Environmetal & Social Report 2008 and the 2000 to 2007 editions
・Each regional Site Report 2008 and the 2006 and 2007 editions (Japanesse only)

ECOreport2000

ECOreport2001

ECOreport2002

Environmental & Social Report 2006

Environmental & Social Report 2007

Environmental & Social Report 2008

ECOreport2003

ECOreport2004

ECOreport2005      ●Ceramic-based parts for engines●QGS/QHS●Others

Site Report(Miyanojo Factory)

Site Report(Nittoku Seisakusho)

http://www.ngkntk.co.jp/english/
environment/
Environmental & Social Report 2008
NGK Spark Plug Group Environmental and Social Report

42

NGK Spark Plug Group

14-18 Takatsuji-cho, Mizuho-ku, Nagoya, 467-8525, Japan
http://www.ngkntk.co.jp■Inquiries about this report :Environment & Safety Management Department
TEL +81 52-872-5980 FAX +81 52-872-5942
e-mail:eco@mg.ngkntk.co.jp【During the preparation of this report】
The purchase of the materials (paper, ink, etc.) comprising this report, and also editing and printing related to thisreport, were carried out by an ISO14001-certified company. Also, the materials (paper, ink, etc.) used do not containcadmium, lead, hexavalent chromium, mercury, polybromide phenyl (PBB), or polybromide diphenyl ether (PBDE).

We promote green purchasing for printing services.

Plate making : A CTP (Computer To Plate) method was used. As a result, film and also developing fluid and fixing fluid
accompanying the manufacture of the film were rendered unnecessary, thus reducing the consumption of
resources and also waste.
Ink : Ink that does not contain VOC (volatile organic compound) was used to minimize the generation of VOC.
This ink also conforms to the “voluntary regulations (NL regulations) concerning ink”, which are voluntary
regulations of the printing ink industry joint association.
Paper : We used paper approced by FSC (Forest Stewardship Counsel). This contributes to the conservation of theworld's ongoing forestation.
Printing : We incorporated a printing method that does not use dampening solutions. No volatile organic compounds(isopropylalcohol) were used.